Report To: Program Planning Committee
From: Lori Clark, Director of Integrated Human Services
Sherry Frost, Integrated Human Services Manager
Date: October 16, 2024
Re: Capital Expenditures - Issue Report
Purpose
To provide an overview of capital expenditures and advise the board of anticipated pressures.
Background
A Building Condition Assessment (BCA) Issue Report was presented to the Board in October 2020, outlining a 10-year Capital Management Plan. Labour and material costs are increasing at a higher rate than was anticipated at the time the plan was prepared. For example, all windows were replaced in a 23-unit building in 2022 at a cost of $208,204.15 + HST, to replace the windows this year in a 20-unit building the quote came in from the same contractor at $316,924 + HST. This is a 52% increase in just 2 years.
Recently, the DSB has utilized Canada-Ontario Community Housing Initiative (COCHI) and Ontario Priorities Housing Initiative (OPHI) funding to address the larger maintenance/capital issues in DSB community housing buildings including Make Up Air Unit, window and balcony replacements. Several core building components are nearing end of life, specifically main switch gears and roofs. With COCHI/OPHI funding ending in year 6 (2024/2025) and no confirmation of a commitment of ongoing federal or provincial funding, the capital budget will need to be used to support these costs.
Staff have worked with Housing Services Corporation and have determined that an updated BCA should be completed on all DSB owned buildings to determine the projects which should be prioritized and update costing that is more reflective of the current reality.
To support future planning of the aging infrastructure, staff are recommending the that the capital contribution amount be reviewed and adjusted accordingly.
Recommendation
Staff are recommending that the Finance Committee review the financial impact of updating the BCA and adjusting the capital contribution during the 2025 budget process.