Infrastructure

Business Plan 2004-07
March 24, 2004

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This Business Plan for the three years commencing April 1, 2004 was prepared under my direction in accordance with the Government Accountability Act and the government’s accounting policies. All of the government’s policy decisions as at February 27, 2004 with material economic or fiscal implications of which I am aware have been considered in preparing the Business Plan.

The Ministry’s priorities outlined in the Business Plan were developed in the context of the government’s business and fiscal plans. I am committed to achieving the planned results laid out in this Business Plan.

[original signed]

Ty Lund, Minister of Infrastructure
March 4, 2004

Alberta Infrastructure's responsibilities are wide ranging, from the provision of policy direction, planning expertise and capital funding for schools, post-secondary institutions, health care facilities, and seniors' lodges (referred to as supported infrastructure), to building and managing facilities that support government operations (referred to as owned infrastructure). The Ministry also provides infrastructure plant operations and maintenance funding to schools. Leasing, property acquisition and disposal, space planning for government facilities, air and vehicle fleet management services and administering the natural gas rebate program also fall within the Ministry's mandate. 

Infrastructure supports government's long-term strategic plan pillars of Unleashing Information; Leading in Learning; and Making Alberta the Best Place to Live, Work and Visit. The primary linkage to the Government of Alberta three-year Business Plan is Goal 12 "Alberta will have effective and sustainable government-owned and supported infrastructure" which encompasses all infrastructure performance measures, and directly supports the Government Fiscal and Capital Plans. The work of this Ministry in supporting health, learning, and research facilities, as well as museums and other sites also supports the province's goals under each of the core businesses:

People
Goal 1: Albertans will be healthy
Goal 2: Albertans will be well prepared for lifelong learning and work
Goal 4: Albertans will be self-reliant and those unable to provide for their basic needs will receive help

Prosperity
Goal 7: Alberta will have a prosperous economy
Goal 8: Alberta will have a financially stable, open and accountable government and a strong intergovernmental position in Canada

Preservation
Goal 11: Albertans will have the opportunity to participate in community and cultural activities and enjoy the province's historical resources and parks and protected areas

VISION

Alberta has innovative, quality, and sustainable public facilities.

MISSION

Through leadership and technical expertise, provide effective, efficient, innovative and timely infrastructure and services.

CORE BUSINESSES

Core Business 1: Partner with health regions, school boards, post-secondary institutions and seniors' lodge foundations to support the delivery of government programs.

Goal 1 - Provide leadership and funding for the development and preservation of health care facilities and the preservation of seniors' lodges.
Goal 2 - Provide leadership to preserve and deliver effective and efficient facilities in support of life-long learning.

Core Business 2: Manage government facility and land needs.

Goal 3 - In partnership with all ministries, effectively plan, retrofit, and manage government-owned and leased facilities to support the delivery of government programs.
Goal 4 - Manage land requirements to support the delivery of government programs.
Goal 5 - Maintain effective environmental stewardship of government facilities and lands.

Core Business 3: Manage government air and vehicle fleets.

Goal 6 - Efficiently manage the government's air and vehicle fleets to provide safe, reliable and responsive services in a fiscally responsible way.

Core Business 4: Improve planning to ensure value for government investment and support economic development and diversification.

Goal 7 - Work with stakeholders and other ministries to improve planning, and contribute to government initiatives supporting economic development and diversification.
Goal 8 - Enhance service delivery to all clients.

SIGNIFICANT OPPORTUNITIES AND CHALLENGES

Infrastructure Debt
When the need for new facilities is not met, or when the need for adequate ongoing funding for timely facility preservation and maintenance is delayed, the risk for the onset of health and safety issues increases, the value of assets may decline, and the infrastructure debt increases at an accelerated rate. Although some priority needs have been met through the Government's Capital Plan, there is still an infrastructure debt of unfunded new facility requirements and preservation of existing facilities to be addressed. This infrastructure debt is currently estimated at $2.2 billion, down somewhat from $2.4 billion identified in our 2003-06 Business Plan. Adding to the infrastructure debt is the need for functional upgrading to adequately meet program delivery needs. New facilities constructed or approved for construction may alleviate the backlog somewhat; however, much of the government-owned and supported infrastructure is greater than 15 years old and in need of upgrading or retrofit. As buildings age, they become susceptible to the effects of deterioration, and if taxpayer investment is to be protected, the backlog of renovation and upgrading required in existing building infrastructure has to be managed. Addressing this debt will help save money in the long run by avoiding premature building replacement, avoiding health and safety issues, and minimizing maintenance costs.

Public-Private Partnerships (P3s)
Public-private partnerships are a reality in Alberta. Where viable partnerships exist, P3s are an effective and efficient opportunity to provide Albertans with much needed facilities. There continues to be a great deal of interest in developing infrastructure through partnerships, and we are challenged with determining the merit of each proposal. Each partnership proposal requires extensive evaluation and expert analysis, therefore we continue to work internally, and with experts, to strengthen our capacity in this regard, and to provide assurance of value to the taxpayer. Where feasible and cost effective, Infrastructure will continue to pursue alternative financing opportunities for new facilities, and will encourage supported infrastructure organizations to pursue P3s for priority needs. A current example is the development of consolidated court facilities in Calgary.

Changing Needs
We are experiencing high growth in resource and urban development areas due to Alberta's economic strength. We are also encountering reduced populations in rural communities and in the inner city areas of Edmonton and Calgary. These changing demographics have created situations where facilities are badly needed in growth areas, while other areas have underutilized facilities. This mismatch between the location of facilities and the demand is a challenge, one that faces many school boards and health regions in Alberta. Greater emphasis on long term planning is required, and Alberta Infrastructure will work with school boards, health regions, and other stakeholders in this regard.

Technology & Innovation
Innovation is central to improving competitiveness, generating wealth, creating jobs, and enhancing our quality of life. Having the necessary infrastructure in place is an important component of developing, attracting, and retaining highly qualified people. High profile health care facilities, such as the Bone and Joint Centre of Excellence in Calgary and the Alberta Heart Institute in Edmonton, as well as the Health Research Innovation Centres, will be attractive to the medical and research communities.

Other innovations include the design of multi-purpose facilities to allow flexibility for the future, and applying new technology to make facilities more efficient in program delivery, energy usage, and operating costs. The potential for health care and learning facilities to provide Albertans with faster access to more efficient services is also improving through the availability of state-of-the-art equipment and technology systems.

STRATEGIC PRIORITIES 2004-07

Through the Ministry's review of external and internal challenges, the strategic priorities described below have been identified. These are in addition to the important ongoing core activities of the Ministry.

CORE BUSINESSES, GOALS, STRATEGIES AND MEASURES

CORE BUSINESS ONE: Partner with health regions, school boards, post- secondary institutions and seniors' lodge foundations to support the delivery of government programs.

GOAL 1:  Provide leadership and funding for the development and preservation of health care facilities and the preservation of seniors' lodges.

What it means

Albertans are passionate about the delivery of health care services, and about providing for Alberta's seniors. We at Infrastructure share that view. Our Ministry works in partnership with health regions and other ministries to provide government-supported infrastructure that meets the needs of Albertans. There are also strong and effective partnerships in place with seniors' lodge foundations to support the upgrading of seniors' lodges in Alberta.

Strategies

• In partnership with the health regions and Health and Wellness, implement the approved projects identified in the Capital Plan, including the new Children's Hospital in Calgary, the Alberta Heart Institute in Edmonton, the Royal Alexandra Hospital expansion in Edmonton, and the Bone and Joint Centre of Excellence in Calgary.
• Optimize use of existing health infrastructure and meet local community needs through the provision of funding under the Health Sustainability Initiative Fund which supports the conversion of existing facilities to long term care or other uses
• Complete the Lodge Upgrading Program and, in partnership with seniors' lodge foundations, implement a facility infrastructure maintenance program.

Measures

GOAL 2: Provide leadership to preserve and deliver effective and efficient facilities in support of life-long learning.

What it means

Our children are our future, and a good education is the basis for providing opportunities to enhance their future, and the future of this province. Alberta also recognizes the importance of going beyond a basic education - the value of life-long learning. To support Albertans in attaining their educational goals, we work in partnership with Learning, school boards and post-secondary institutions to support the delivery of basic and advanced educational programs. Increased capacity for research and innovation within Alberta's post-secondary institutions will also enable the province to attract new research initiatives and experts in fields such as medical research.

Strategies

• In support of the Rural Development Initiative and the need to make the best use of taxpayer investment, explore opportunities with Learning and school boards to revitalize school facilities in all Alberta communities in order to maximize use of school infrastructure, increase utilization, encourage disposition of non-viable schools, and improve the condition and functionality of required schools.
• In consultation with school boards, develop and implement a new accountability framework for capital and plant operations and maintenance, including clarification of roles and responsibilities, and enhanced accountabilities for school facility funding.
• As part of the capital planning process, continue to evaluate and address the maintenance and renewal needs identified in the 2002 facilities audit of post-secondary institutions.
• In conjunction with post-secondary institutions, complete the utilization study of all college, university and technical institute facilities to determine overall system capacity and utilization of each facility. With boards and Learning, use results to identify future needs and incorporate into the long-term planning process.

Measures

CORE BUSINESS TWO: Manage government facility and land needs.

GOAL 3:  In partnership with all ministries, effectively plan, retrofit, and manage government-owned and leased facilities to support the delivery of government programs.

What it means

Albertans require reasonable access to government programs and facilities and it is the responsibility of Infrastructure, in concert with other Ministries, to ensure this access is available. The Ministry is responsible for managing nearly 1,900 owned and some 300 leased facilities, including office space, courts, correctional facilities, warehouses and maintenance facilities, laboratories and research centres. The Ministry also plays a key role in ensuring that the health and safety needs of occupants and visitors are met and Ministries' changing program needs are addressed through facility planning, implementation of renovation projects, and through initiatives such as condition monitoring, safety and emergency planning, and ongoing maintenance and preservation.

Strategies

• Provide overall capital and operating management of government facilities.
• Develop, maintain, and implement accommodation plans for government clients.
• Work with partners to address physical building and site security needs in government buildings.
• Continue to seek innovative methods of project financing and delivery (public-private partnerships) for major projects, such as the Calgary Courts Centre.
• Assist government departments and agencies in the development and implementation of emergency and safety plans for government-owned and leased buildings across the province.
• Ensure accessibility needs for persons with disabilities are fully considered in Ministry design standards, policies, programs, and projects.

Measures

GOAL 4:  Manage land requirements to support the delivery of government programs.

What it means

Infrastructure provides real estate and land planning services and manages the Edmonton and Calgary Transportation and Utility Corridors. As new facility requirements are identified, the Ministry works with client departments, boards, and agencies to lease required space. Changes in government program delivery methods and new technologies mean that, on occasion, government is faced with surplus lands or underutilized properties. Infrastructure, as part of its role in overseeing the government's facility and land portfolio acquires properties, and divests itself of excess land and underutilized properties.

Strategies

• Plan, develop, and administer the Edmonton and Calgary Transportation and Utility Corridors, including enhanced sharing of policies and other information with interested buyers, realtors, and other stakeholders.
• Continue to sell or divest surplus and underutilized properties and take a lead role in providing services for disposal of properties for Government Ministries.
• Work with client departments to understand their property needs and acquire, lease, or dispose of property as appropriate.

Measures

GOAL 5:  Maintain effective environmental stewardship of government facilities and lands.

What it means

The mandate to manage government's facility and land portfolio carries an obligation to minimize the environmental impact of our activities. As well, initiatives are undertaken to monitor air quality and improve energy efficiency, enhance the comfort of facility occupants, generate a cost savings, and lessen the environmental impact of operating these facilities.

Strategies

• Manage the Swan Hills Treatment Plant.
• Complete development and implementation of a Ministry Environmental Management System based on an international standard that can be applied to manage hazardous materials in construction, renovation, demolition, and site remediation projects.
• Continue to address environmental concerns at highway maintenance yards and other sites through risk management and remediation initiatives.
• Monitor energy efficiency and operating costs of government-owned and leased facilities and make cost-effective improvements.
• Maintain and monitor indoor air quality standards and processes aimed at reducing the risks associated with aging infrastructure, and ensure appropriate processes are followed to address incidences, such as mould, that may be found.

Measures

What it means

Infrastructure is responsible for delivering safe and reliable transportation services to government ministries, boards, and agencies. This involves partnering with a private sector service provider for light-duty vehicles, as well as managing the remaining government-owned light-duty vehicles. The Ministry also manages government aircraft and continues to provide safe, efficient, and cost-effective air transportation services.

Strategies

• Manage the government's air fleet, providing safe, reliable air transportation services
• Monitor the condition of aging air services equipment, and implement a plan for replacement as necessary.
• Ensure the safety of passengers through ongoing efficient maintenance of the air fleet.
• Continue to work with the private-sector vehicle fleet service provider to meet the transportation needs of government departments, boards and agencies, and effectively plan for future retirement or replacement of vehicles.

Measures

What it means

Long term capital planning is becoming more important for the government and its stakeholders. The new Centennial Capital Plan provides stability in financial planning for school boards, health authorities, post-secondary institutions, and the Ministry for the term of the business plan. However, as regional, economic and demographic changes impact how Albertans need to access government services, the requirement for longer term planning increases. Through effective planning, the Ministry, along with its stakeholders and clients, will be better able to deal with emerging issues.

Strategies

• In partnership with Finance and Transportation, co-sponsor the Cross-Ministry Capital Planning Initiative and actively participate in the prioritization of all capital project requests for submission into future government Capital Plans.
• Support the government's strategy to enhance research and development capacity in Alberta through projects such as the development of the new Health Research Innovation Centres at the Universities of Calgary and Alberta.
• Provide support and input regarding schools, health care facilities, and post-secondary institutions into the new Rural Development Initiative to create an integrated approach to rural development and help rural communities capitalize on Alberta's economic activity.
• Work with school boards, health authorities, post-secondary institutions, government ministries, and other stakeholders to update and maintain long term capital plans.
• Collaborate with all stakeholders to explore opportunities for multi-use facilities, and continue to pursue alternative financing opportunities, such as P3s, where cost effective and feasible.
• Work with stakeholders to re-evaluate the outstanding maintenance requirement for all types of facilities and incorporate that information into the new infrastructure management system. Develop and implement processes to update and monitor the data.
• Support government priorities for Albertans through implementation of key initiatives such as the Natural Gas Rebate Program.

Measures

GOAL 8:  Enhance service delivery to all clients.

What it means

The Government of Alberta recognizes the importance of infrastructure to the economy and to Albertans. At Infrastructure, we are committed to working with other Ministries and our stakeholders in support of their infrastructure needs. It is important to the Ministry to continually strive for improvement in the delivery of our services and programs.

Strategies

• Implement the Building and Land Infrastructure Management System to enhance facility management and improve planning of capital projects for clients and the ministry.
• Improve communication with stakeholders by providing meaningful opportunities for input into decision making such as responding to recommendations flowing from the Minister's Symposium on Schools.
• Review and streamline policies and processes used for decision making and share those with stakeholders as needed to enhance communication and streamline administration.

Measures

CAPITAL INVESTMENT BY CORE BUSINESS

CAPTIAL INVESTMENT BY PROGRAM