GREATER VANCOUVER WATER DISTRICT (GVWD) BOARD OF DIRECTORS

Transcription

1 Meeting 4 of 7 GREATER VANCOUVER WATER DISTRICT (GVWD) BOARD OF DIRECTORS REGULAR BOARD MEETING Friday, October 30, :00 A.M. 2 nd Floor Boardroom, 4330 Kingsway, Burnaby, British Columbia Membership and Votes A G E N D A 1 A. ADOPTION OF THE AGENDA 1. October 30, 2015 Regular Meeting Agenda That the GVWD Board adopt the agenda for its regular meeting scheduled for October 30, 2015 as circulated. B. ADOPTION OF THE MINUTES 1. October 9, 2015 Regular Meeting Minutes That the GVWD Board adopt the minutes for its regular meeting held October 9, 2015 as circulated. C. DELEGATIONS D. INVITED PRESENTATIONS E. CONSENT AGENDA Note: Directors may adopt in one motion all recommendations appearing on the Consent Agenda or, prior to the vote, request an item be removed from the Consent Agenda for debate or discussion, voting in opposition to a recommendation, or declaring a conflict of interest with an item. 1. CHIEF ADMINISTRATIVE OFFICER REPORTS GVWD Budget 1) That the GVWD Board approve the 2016 Revenue and Expenditure Budgets, use of Reserves, and Capital Expenditures as shown in the following schedules: A1 Revenue and Expenditure Summary 1 Note: Recommendation is shown under each item, where applicable. October 23, 2015 Greater Vancouver Water District - 1

2 GVWD Board Agenda October 30, 2015 Agenda Page 2 of 2 A Budget - Proposed Application of Reserves B1 GVWD 2016 Budget B2-B4 GVWD 2016 Capital Programs & Project Details 2) That the GVWD Board set the Water Rate for 2016 at: $ per cubic metre for June through September; and $ per cubic metre for January through May and October through December. F. ITEMS REMOVED FROM THE CONSENT AGENDA G. REPORTS NOT INCLUDED IN CONSENT AGENDA H. MOTIONS FOR WHICH NOTICE HAS BEEN GIVEN I. OTHER BUSINESS J. BUSINESS ARISING FROM DELEGATIONS K. RESOLUTION TO CLOSE MEETING Note: The Board must state by resolution the basis under section 90 of the Community Charter on which the meeting is being closed. If a member wishes to add an item, the basis must be included below. That the GVWD Board close its regular meeting scheduled for October 30, 2015 pursuant to the Community Charter provisions, Section 90 (1) (e) as follows: 90 (1) A part of a board meeting may be closed to the public if the subject matter being considered relates to or is one or more of the following: (e) the acquisition, disposition or expropriation of land or improvements, if the board or committee considers that disclosure could reasonably be expected to harm the interests of the regional district. L. RISE AND REPORT (Items Released from Closed Meeting) M. ADJOURNMENT/CONCLUSION That the GVWD Board adjourn/conclude its regular meeting of October 30, Greater Vancouver Water District - 2

3 Section B 1 GREATER VANCOUVER WATER DISTRICT BOARD OF DIRECTORS Minutes of the Regular Meeting of the Greater Vancouver Water District (GVWD) Board of Directors held at 9:13 a.m. on Friday, October 9, 2015 in the 2 nd Floor Boardroom, 4330 Kingsway, Burnaby, British Columbia. MEMBERS PRESENT: Chair, Director Greg Moore, Port Coquitlam Vice Chair, Director Raymond Louie, Vancouver Director Malcolm Brodie, Richmond Director Mike Clay, Port Moody Director Derek Corrigan, Burnaby Director Jonathan Coté, New Westminster Director Heather Deal, Vancouver Director Sav Dhaliwal, Burnaby Director Ralph Drew, Belcarra Alternate Director Jack Froese, Langley Township for Charlie Fox Director Maria Harris, Electoral Area A Director Bruce Hayne, Surrey Director Linda Hepner, Surrey Director Craig Hodge, Coquitlam Director Lois Jackson, Delta Director Kerry Jang, Vancouver Director Colleen Jordan, Burnaby Director Bob Long, Langley Township Director Mary Martin, Surrey Director John McEwen, Anmore Director Geoff Meggs, Vancouver Director Darrell Mussatto, North Vancouver City Director Nicole Read, Maple Ridge Director Andrea Reimer, Vancouver Director Michael Smith, West Vancouver Director Barbara Steele, Surrey Director Tim Stevenson, Vancouver Director Harold Steves, Richmond Director Richard Stewart, Coquitlam Director Rudy Storteboom, Langley City Director Judy Villeneuve, Surrey Director Richard Walton, North Vancouver District Commissioner Carol Mason * MEMBERS ABSENT: Director John Becker, Pitt Meadows Director Gregor Robertson, Vancouver * Non voting member. Minutes of the Regular Meeting of the Greater Vancouver Water District (GVWD) Board of Directors held on Friday, October 9, 2015 Page 1 of 4 Greater Vancouver Water District - 3

4 MEMBERS ABSENT (Continued): Director Bryce Williams, Tsawwassen STAFF PRESENT: Janis Knaupp, Assistant to Regional Committees, Board and Information Services, Legal and Legislative Services Chris Plagnol, Director, Board and Information Services/Corporate Officer, Legal and Legislative Services A. ADOPTION OF THE AGENDA 1. October 9, 2015 Regular Meeting Agenda It was MOVED and SECONDED That the GVWD Board adopt the agenda for its regular meeting scheduled for October 9, 2015 as circulated. CARRIED B. ADOPTION OF THE MINUTES 1. September 18, 2015 Regular Meeting Minutes C. DELEGATIONS No items presented. It was MOVED and SECONDED That the GVWD Board adopt the minutes for its regular meeting held September 18, 2015 as circulated. CARRIED D. INVITED PRESENTATIONS No items presented. E. CONSENT AGENDA It was MOVED and SECONDED That the GVWD Board adopt the recommendation contained in the following item presented in the October 9, 2015 GVWD Board Consent Agenda: 1.1 Kwikwetlem First Nation Request to Conduct a Spiritual Ceremony Coquitlam Watershed CARRIED Minutes of the Regular Meeting of the Greater Vancouver Water District (GVWD) Board of Directors held on Friday, October 9, 2015 Page 2 of 4 Greater Vancouver Water District - 4

5 The item and recommendation referred to above is as follows: 1.1 Kwikwetlem First Nation Request to Conduct a Spiritual Ceremony Coquitlam Watershed Report dated September 9, 2015 from Bob Cavill, Director, Watershed/Environmental Management and Quality Control, Water Services, seeking GVWD Board approval for a spiritual ceremony by Kwikwetlem First Nation, within the Coquitlam Watershed in fall Recommendation: That the GVWD Board approve Kwikwetlem First Nation access to the Coquitlam Watershed for the purpose of their annual burn ceremony and authorize staff to work with Kwikwetlem First Nation to finalize the details for a fall 2015 ceremonial burning in the Coquitlam Watershed. Adopted on Consent F. ITEMS REMOVED FROM THE CONSENT AGENDA No items presented. G. REPORTS NOT INCLUDED IN CONSENT AGENDA No items presented. H. MOTIONS FOR WHICH NOTICE HAS BEEN GIVEN No items presented. I. OTHER BUSINESS No items presented. J. BUSINESS ARISING FROM DELEGATIONS No items presented. K. RESOLUTION TO CLOSE MEETING No items presented. L. RISE AND REPORT (Items Released from Closed Meeting) No items presented. Minutes of the Regular Meeting of the Greater Vancouver Water District (GVWD) Board of Directors held on Friday, October 9, 2015 Page 3 of 4 Greater Vancouver Water District - 5

6 M. ADJOURNMENT/CONCLUSION It was MOVED and SECONDED That the GVWD Board conclude its regular meeting of October 9, CARRIED (Time: 9:14 a.m.) CERTIFIED CORRECT Chris Plagnol, Corporate Officer Greg Moore, Chair FINAL Minutes of the Regular Meeting of the Greater Vancouver Water District (GVWD) Board of Directors held on Friday, October 9, 2015 Page 4 of 4 Greater Vancouver Water District - 6

7 Section E 1.1 To: From: GVWD Board of Directors Phil Trotzuk, Chief Financial Officer Date: October 20, 2015 Meeting Date: October 30, 2015 Subject: 2016 GVWD Budget RECOMMENDATION 1) That the GVWD Board approve the 2016 Revenue and Expenditure Budgets, use of Reserves, and Capital Expenditures as shown in the following schedules: A1 Revenue and Expenditure Summary A Budget Proposed Application of Reserves B1 GVWD 2016 Budget B2 B4 GVWD 2016 Capital Programs & Project Details 2) That the GVWD Board set the Water Rate for 2016 at: $ per cubic metre for June through September; and $ per cubic metre for January through May and October through December. The attached budgets were presented and discussed at the Intergovernment and Finance Committee meeting on October 14 th and a Board Budget Workshop on October 21 st. The report 2016 Budget Metro Vancouver Districts and Housing Corporation sent to the Intergovernment and Finance Committee meeting on October 14 th and the Board Budget Workshop on October 21 st is attached for information. Attachment 1: A1 Revenue and Expenditure Summary A Budget Proposed Application of Reserves B1 GVWD 2016 Budget B2 B4 GVWD 2015 Capital Programs & Project Details Attachment 2: Report: 2016 Budget Metro Vancouver Districts and Housing Corporation Greater Vancouver Water District - 7

8 A1 METRO VANCOUVER DISTRICTS REVENUE AND EXPENDITURE SUMMARY 2016 BUDGET % BUDGET BUDGET CHANGE REVENUES Water Sales $ 243,816,995 $ 251,824, % GVS&DD Levy 192,334, ,250, % Tipping Fees 75,813,273 80,015, % GVRD Requisition 47,177,139 49,844, % Housing Rents 34,727,509 35,770, % BOD/TSS Industrial Charges 7,558,982 8,518, % Energy Sales 6,102,848 5,719,900 (6.3%) Transfer from DCC Reserves 3,643,015 3,488,610 (4.2%) Federal Funding Homelessness Partnering Strategy 8,221,829 8,221, % User Fees 5,242,067 5,305, % Housing Subsidies 4,139,706 3,965,673 (4.2%) Non-Road Diesel Permit Fees 1,309,000 1,992, % GPS User Fees 332, ,316 (2.5%) Electoral Area Requisition 356, , % Other External Revenues 9,822,369 8,143,465 (17.1%) Other Funds / Reserves 13,807,281 5,607,502 (59.4%) TOTAL REVENUES $ 654,405,374 $ 669,357, % EXPENDITURES Operating Programs: Greater Vancouver Water District $ 245,568,058 $ 253,374, % Greater Vancouver Sewerage & Drainage District: Liquid Waste 210,412, ,501, % Solid Waste 93,166,196 90,799,623 (2.5%) Metro Vancouver Housing Corporation 39,699,775 40,572, % Greater Vancouver Regional District Air Quality 8,501,984 8,967, % E911 Emergency Telephone Service 4,036,446 4,126, % Electoral Area Service 485, , % General Government 13,378,863 14,304, % Labour Relations 2,188,510 2,446, % Regional Global Positioning System 757, ,316 (0.4%) Regional Parks 32,988,346 34,391, % Regional Planning 2,972,410 3,259, % Sasamat Volunteer Fire Department 249, , % 65,559,244 69,109, % TOTAL EXPENDITURES $ 654,405,374 $ 669,357, % Greater Vancouver Water District - 8

9 A4 METRO VANCOUVER DISTRICTS 2016 Budget - Proposed Application of Reserves (To Be Approved by the Board in October 2015) Function Application Operating Reserves Designated Reserves MVHC Fund Property Portfolio Activities $ $ 227,895 Fund Capital Replacement Activities 4,985,242 Fund MVHC Capital Replacement and Development 6,731,516 GVRD Parks Fund Heritage Parkland Acquisitions 4,000,000 Fund Capital Maintenance Projects 2,078,000 Fund Capital Replacement and Development Projects 5,460,000 Fund Capital Maintenance Work at Delta Heritage Airpark 22,000 Contribution to Heritage Parkland Acquisition Fund Reserve 1,207,066 Fund Burns Bog ECA operations and maintenance expenditures related to research grant 78,388 Fund SIF Restoration of degraded areas within the Burns Bog ECA (Ecological Conservancy Area) 80,000 Fund SIF Kanaka Creek Stewardship Centre Roof to Creek Natural Drainage Habitat Learning Landscape 100,000 Fund Kanaka Creek Watershed Stewardship Centre project from legacy fund 300,000 Fund Pacific Parklands Foundation stewardship programs from legacy fund 121,000 Fund Colony Farm Wilson Farm project 36,158 General Government Fund Cultural grants 100,000 Contribution to Regional District Fleet Vehicle Reserve Fund 236,349 Global Positioning System Fund costs for survey of high precision network 400,000 Information Technology Fund software development projects 3,676,894 Fund computer replacements 942,035 Building Operations Head Office building renovations Kingsway and 5945 Kathleen Ave 4,345,000 Fund Head Office re-organization Kingsway and 5945 Kathleen Ave 2,112,000 Electoral Areas Fund Electoral Area A Official Community Plan work 60,000 Air Quality Fund Equipment Purchases 588,228 Fund SIF Drive Smart Study 100,000 Fund SIF Home Energy Labelling Project 60,000 Fund SIF Strata Energy Advisor Program 50,000 Fund consulting work regarding data and assessment and policy and management initiatives 160,000 Contribution to Air Quality Equipment Fund - equipment purchases 220,839 Regional Planning Contribution to Regional Growth Strategy Reserve Fund 258,423 Fund SIF Metro Vancouver Grow Green project 40,000 Fund consulting work regarding Regional Growth Strategy data, assessment and policy initiatives 150,000 Labour Relations Complete upgrade of software enhancement and informations services for the function 60,000 Financial Services Fund Specialist Services to support/supplement Internal Audit Continuous Improvement activities 20,000 Fund Print Room equipment 20,500 Fund Review of Materials Inventory Stores Systems 100,000 Sasamat Volunteer Fire Department Fund Equipment Purchases 20,000 GVWD Fund Laboratory equipment purchases 115,000 Fund SIF Barnston/Maple Ridge Pump Station Energy Recovery 95,000 Fund SIF Climate Change Impacts and Adaptation Strategy 100,000 Fund SIF Water Conservation Research and Campaign 260,000 Fund SIF Watershed Invasive Plant Removal and Control Project 90,000 Fund Capital / Reduce debt or paydown existing debt 11,024,472 GVS & DD Solid Waste Liquid Waste Fund Equipment Purchases 1,600,000 Fund Projected Deficit ,208,728 Fund SIF Liquid Waste Grease Behaviour Change Pilot Project 170,000 Fund SIF Water Reclamation from Wastewater Effluent 215,000 Fund SIF ARC Phosphorus Recovery Demonstration Unit 250,000 Fund Capital / Reduce debt or paydown existing debt 8,450,339 TOTAL RESERVE APPLICATION $ 22,095,876 $ 41,630,196 Greater Vancouver Water District - 9

10 B1 GREATER VANCOUVER WATER DISTRICT WATER 2016 BUDGET % BUDGET BUDGET CHANGE REVENUES Water Sales $ 243,816,995 $ 251,824, % Other External Revenues 807, ,652 Other Funds / Reserves 944, ,000 TOTAL REVENUES $ 245,568,058 $ 253,374, % EXPENDITURES Operating Programs: Policy Planning and Analysis Sustainability Fund $ 723,000 $ 723,000 Utility Analysis and Infrastructure 1,197,630 1,457,833 Utility Policy and Planning 934,941 1,095,151 2,855,571 3,275, % Engineering and Construction Minor Capital Projects 11,641,271 10,295,416 Dispatch 157, ,343 Public Involvement 907, ,348 12,706,861 11,362,107 (10.6%) Major Projects, Management Systems and Utility Services Department Technical Training 1,323,408 1,175,346 Energy Management 89, ,243 Engineering Standards 113, ,277 Engineers in Training 463, ,217 Management Systems Utility Services 998,901 1,161,907 Minor Capital Projects 783, ,594 Records Management 106, ,601 Research and Innovation 649, ,153 4,527,987 4,508,338 (0.4%) Watershed, Environmental Management and Quality Control Drinking Water Quality Control 3,077,839 3,169,513 Watersheds and Environmental Management 10,206,492 10,270,121 13,284,331 13,439, % Operations and Maintenance Drinking Water Residuals 1,019,498 1,267,959 Lake City Operations 988, ,224 Maintenance 9,109,994 9,118,522 Operating Contingency 500,000 - SCADA Control Systems 4,399,663 4,830,049 Secondary Disinfection 879, ,753 Seymour Capilano Filtration Plant 9,034,298 8,985,580 Source Water Treatment 4,931,693 4,961,536 Technical Support 1,154,658 1,205,392 Utility Voice Radio 164, ,309 Water Supply 13,448,343 14,343,952 45,630,954 46,789, % Administration and Department Support 1,771,633 1,873, % Communications Program - 435, % Allocation of Centralized Costs 18,843,706 18,391,525 (2.4%) Total Operating Programs 99,621, ,075, % Debt Service 93,640,928 98,183, % Contribution to Capital 52,306,087 55,115, % TOTAL EXPENDITURES $ 245,568,058 $ 253,374, % Greater Vancouver Water District - 10

11 B2 GREATER VANCOUVER WATER DISTRICT CAPITAL PROGRAMS & PROJECT DETAILS WATER 2016 BUDGET 2016 CAPITAL BUDGET ORIGINAL TOTAL PROJECT COSTS CHANGE IN TOTAL PROJECT COSTS TOTAL PROJECT COSTS CAPITAL EXPENDITURES Water Infrastructure Growth Capital Approved Projects in Progress Annacis Main No. 5 (Marine Crossing) Detailed Design $4,000,000 $28,000,000 - $28,000,000 Annacis Main No. 5 (Marine Crossing) Predesign 3,500,000 8,000,000-8,000,000 Annacis Main No. 5 (North) Predesign 300, , ,000 Annacis Main No. 5 (South) Predesign 300, , ,000 Capilano Main No.5 (South Shaft to Lost Lagoon) Predesign 200, , ,000 Coquitlam Intake No. 2 & Tunnel Conceptual 900,000 4,130,000-4,130,000 Coquitlam Main No. 4 (Central Section) Predesign 600,000 1,670,000-1,670,000 Fleetwood Reservoir Detailed Design 1,000,000 1,400,000-1,400,000 Hellings Tank No. 2 Detailed Design 800, , ,000 Jericho Reservoir No. 1 Detailed Design 1,000,000 1,500,000-1,500,000 Kennedy Newton Main Detailed Design 1,900,000 3,900,000-3,900,000 Kennedy Newton Main Predesign 500,000 1,000,000-1,000,000 Port Mann Main No. 2 (North) Construction 12,000,000 24,100,000-24,100,000 Port Mann Main No. 2 (South) Design 600,000 1,200,000-1,200,000 South Delta Main No. 1 (Highway #17 Prebuild and Connection to TFN) Design and Construction 200,000 4,200,000-4,200,000 South Delta Main No. 1-12th Ave to 28th Ave Construction 8,660,000 11,700,000-11,700,000 South Surrey Main No. 2 Preliminary Design 1,000,000 1,500,000-1,500,000 Whalley Main Detailed Design 300,000 1,200,000-1,200,000 Whalley Main Predesign 100, , , New Projects Coquitlam Main No. 4 (Cape Horn) Pre Design 80,000 1,000,000-1,000,000 Coquitlam Main No. 4 (South Section) Predesign 50,000 1,350,000-1,350,000 Newton Pump Station No. 2 Preliminary Design 1,200,000 1,200,000-1,200,000 South Delta Main #1 Upgrade Design 250,000 1,750,000-1,750,000 $39,440,000 $102,200,000 $0 $102,200,000 Water Infrastructure Maintenance Capital Approved Projects in Progress 37AM Replacement (Rupert Street to Little Mountain Reservoir) Predesign 550,000 1,050,000-1,050,000 Central Park Main Replacement (10th Ave to Westburnco) Preliminary Design 150, , ,000 Central Park Main Replacement (Patterson to 10th Ave) Predesign 1,000,000 1,800,000-1,800,000 Central Park WPS Starters Replacement 300,000 2,100,000-2,100,000 Cleveland Dam Drum Gate Resurfacing 700,000 1,135,000-1,135,000 Cleveland Dam East Abutment T505/506 Drainage Adit Upgrades Construction 90, , ,000 Douglas Road Main 2-13th Ave Construction 1,625,000 16,700,000-16,700,000 Douglas Road Main 2 - Kincaid Section Construction 3,000,000 12,300,000-12,300,000 Douglas Road Main 2 Stage 1 Construction 1,000,000 12,500,000-12,500,000 Douglas Road Main No. 2 (Vancouver Heights Section) Detailed Design 800,000 1,500,000-1,500,000 Douglas Road Main No. 2 (Vancouver Heights Section) Predesign 280, , ,000 Douglas Road Main No. 2 Delta Section 1,200,000 16,600,000-16,600,000 Douglas Road Main No. 2 Still Creek Design 650,000 1,600,000-1,600,000 E2 Shaft Phase 3 Production Well Construction 6,000,000 12,000,000-12,000,000 E2 Shaft Phase 3 Test Well Construction 200,000 4,500,000-4,500,000 SCFP Clearwell Columns Remediation Construction 975,000 2,000,000-2,000,000 Westburnco #1 Water PS Main Transformer and MCC Replacement 368, , ,000 Greater Vancouver Water District - 11

12 B3 GREATER VANCOUVER WATER DISTRICT CAPITAL PROGRAMS & PROJECT DETAILS WATER 2016 BUDGET 2016 CAPITAL BUDGET ORIGINAL TOTAL PROJECT COSTS CHANGE IN TOTAL PROJECT COSTS TOTAL PROJECT COSTS New Projects 37AM Replacement (Rupert Street to Little Mountain Reservoir) Detailed Design 1,100,000 2,200,000-2,200,000 Annacis Main No. 2 - Dredging Impacts Design 200, , ,000 Central Park Main Replacement (Patterson to 10th Ave) Detailed Design 800,000 3,600,000-3,600,000 Cleveland Dam Bridge Girder Recoating Construction 100, , ,000 Cleveland Dam Bridge Girder Recoating Design 100, , ,000 Fisherman's Trail/Riverside Drive Bridges Detailed Design 200, , ,000 Lulu Island Delta Main - Dredging Impacts Predesign 1,000,000 1,000,000-1,000,000 Lulu Island Delta Main - Scour Protection Detailed Design 250, , ,000 Lynn Valley Main Replacement Detailed Design 1,000,000 1,000,000-1,000,000 SCFP Filter Underdrain Repairs Construction 1,200,000 6,000,000-6,000,000 Seymour Falls Dam Buttress Anchor Rehab and Bridge Repair Detailed Design 180, , ,000 Tilbury Main - Dredging Impacts Predesign 1,000,000 1,000,000-1,000,000 $26,018,000 $104,302,000 $0 $104,302,000 Water Infrastructure Risk Management Capital Approved Projects in Progress Capilano Main No 9 North Section Construction 15,000,000 29,000,000-29,000,000 Capilano Rd. Phase 2 ADAS Piezometers Cleveland Dam East Abutment 275, , ,000 Convert to Bulk Sodium Hypochlorite from Chlorine Gas at Coquitlam WTP 4,600,000 8,300,000-8,300,000 Coquitlam Intake Tower Seismic Upgrade Design 400,000 1,000,000-1,000,000 Coquitlam Multi Storage Facility 1,100,000 1,300,000-1,300,000 Coquitlam Watershed Security Gatehouse Replacement 1,000,000 1,600,000-1,600,000 CWTP Operational and Safety Enhancements Construction 1,800,000 2,300,000-2,300,000 Emergency Power Strategy for Regional Water Facilities Conceptual Design 50, ,000 (400,000) 400,000 Hellings Tank Seismic Upgrade Construction 1,500,000 4,500,000-4,500,000 Mackay Creek Debris Flow Mitigation Detailed Design 500,000 1,000,000-1,000,000 Port Mann No.2 Fraser R. Crossing (Construction) 32,000, ,000, ,000,000 Second Narrows Crossing (Tunnel) Detailed Design 7,000,000 15,000,000-15,000,000 Seymour Capilano Dewatering Wells Design 300, , ,000 Seymour Capilano Filtration Plant - Storage Building 900,000 2,400,000-2,400,000 South Delta Main No. 3-12th Ave to Pebble Hill Preliminary Design 300, , , New Projects Barnston Maple Ridge Pump Station - Back-up Power Detailed Design 500,000 2,000,000-2,000,000 Barnston Maple Ridge Pump Station - Back-up Power Preliminary Design 500, , ,000 Braid St. Main No.2 Construction 5,000,000 7,800,000-7,800,000 Burnaby Mountain Reservoir Seismic Upgrade Detailed Design 300, , ,000 Capilano Raw Water Pump Station - Back-up Power Detailed Design 1,000,000 2,500,000-2,500,000 Capilano Raw Water Pump Station - Back-up Power Preliminary Design 500, , ,000 Capilano Reservoir Boat Wharf Detailed Design 100, , ,000 Clayton Reservoir Construction 10,000,000 30,000,000-30,000,000 Cleveland Dam Pump House Seismic Upgrade Detailed Design 300, , ,000 Mackay Creek Debris Flow Mitigation Construction 1,000,000 7,000,000-7,000,000 Reservoir Isolation Valve Automation Construction 750,000 2,250,000-2,250,000 SCFP Site Entrance Improvements Construction 250, , ,000 SCFP UPS Reconfiguration Detailed Design 200, , ,000 Second Narrows Crossing (Tunnel) Site Preparation Construction 3,000,000 3,000,000-3,000,000 Seymour Falls Boat Wharf Detailed Design 100, , ,000 Seymour Main No. 2 (SE2) Joint Improvements Construction 500, , ,000 Greater Vancouver Water District - 12

13 B4 GREATER VANCOUVER WATER DISTRICT CAPITAL PROGRAMS & PROJECT DETAILS WATER 2016 BUDGET 2016 CAPITAL BUDGET ORIGINAL TOTAL PROJECT COSTS CHANGE IN TOTAL PROJECT COSTS TOTAL PROJECT COSTS Seymour Main No. 2 (SE2) Joint Improvements Detailed Design 50,000 50,000-50,000 Seymour Main No. 5 III ( North ) Detailed Design 1,000,000 7,000,000-7,000,000 Sunnyside Reservoir Upgrades Preliminary Design 250, , ,000 Westburnco Pump Station - Back-up Power Preliminary Design 500, , ,000 $92,525,000 $373,155,000 ($400,000) $372,755,000 Water Infrastructure Upgrade Capital Approved Projects in Progress Burwell Alpine Reservoir Valve Improvements Design 50, , ,000 Coquitlam Communication Improvements Constr. 500,000 1,650,000-1,650,000 Lynn Valley Water Storage Reservoir Construction 1,500,000 6,000,000-6,000,000 Queensborough Main - Ewen Ave Replacement Construction Phase 1 500,000 5,500,000-5,500,000 Queensborough Main - Ewen Ave Replacement Phase 1&2 Design 300, , ,000 Sapperton Main #1 New Line Valve and Chamber Detailed Design 250, , ,000 South Delta Main No Ave to 34B Ave Construction 5,150,000 10,300,000-10,300,000 South Delta Main No Ave to 34B Ave Design 50, , ,000 Tilbury Junction Chamber Valves Replacement with Actuators 2,000,000 3,900,000-3,900,000 Water Optimization Automation & Instrumentation 1,200,000 9,540,000-9,540, New Projects Cleveland Dam East Abutment Additional GV Series Pump Wells Design and Construction 300, , ,000 CWTP Ozone Generation Upgrades for Units 2 & 3 Detailed Design 1,000,000 1,000,000-1,000,000 Haney Main No. 2 Valve Chamber Upgrade - Abernethy Way and 232nd St Detailed Design 300, , ,000 Queensborough Main - Ewen Ave Replacement Construction Phase 2 3,600,000 3,600,000-3,600,000 South Delta Mains - 28 Ave Crossover Design 1,000,000 1,000,000-1,000,000 Water Meter Upgrades Detailed Design 600,000 1,800,000-1,800,000 $18,300,000 $47,790,000 $0 $47,790,000 Water Opportunity Capital Approved Projects in Progress Barnston/Maple Ridge Pump Station Power Generation 200,000 2,500,000-2,500,000 Capilano Hydropower Preliminary Design 3,000,000 4,000,000-4,000,000 $3,200,000 $6,500,000 $0 $6,500,000 TOTAL CAPITAL EXPENDITURES $179,483,000 $633,947,000 ($400,000) $633,547,000 Greater Vancouver Water District - 13

14 To: From: Intergovernment and Finance Committee Carol Mason, Commissioner/Chief Administrative Officer Phil Trotzuk, Chief Financial Officer Date: October 5, 2015 Meeting Date: October 14, 2015 Subject: 2016 Budget Metro Vancouver Districts and Housing Corporation RECOMMENDATION That the Intergovernment and Finance Committee endorse the 2016 Metro Vancouver Districts and Housing Corporation Budgets and forward them to the October 21st Metro Vancouver Board Budget Workshop for consideration. PURPOSE To present the 2016 Budgets for the Metro Vancouver Districts and Housing Corporation for consideration. BACKGROUND As a unique local government in British Columbia, Metro Vancouver represents a regional federation of 23 members, comprising 21 Member Municipalities, one Treaty First Nation and one Electoral Area. Metro Vancouver provides a range of key utilities and services, which include the provision of drinking water, liquid and solid waste services, affordable housing, regional planning, and regional parks to over 2.4 million people in the region. The mix of regional services provided to each municipality is determined by that municipality. All regional services fall within the specific authority and jurisdiction of their respective legislative entities: the Greater Vancouver Regional District (GVRD), Greater Vancouver Water District (GVWD), Greater Vancouver Sewer and Drainage District (GVS&DD) and the Metro Vancouver Housing Corporation (MVHC). These budgets have been prepared to ensure consistency and alignment with the legislative authority of the various Districts and functions which, upon approval, provide the expenditure authority for the operations of the Metro Vancouver Districts and Housing Corporation BUDGET PROCESS The 2016 Metro Vancouver District and Housing Corporation budgets have been prepared to support the vision and mission of the Regional Federation as articulated in the Board Strategic Plan 2015 to The 2016 Budget year represents the commencement of a multi-year financial planning process including the use of a new financial planning system. Metro Vancouver is evolving towards preparing and presenting 5 year financial plans. With this being the first year of the new process, while five year budgets have been populated, the focus, this fall, will be on the 2016 budget with the first 5 year financial plan rolled out in late spring Through early October the Metro Vancouver standing committees were presented with individual 2016 budget reports that included a high level overview of both the budgets and business plans that fall within the purview of their respective committees (see Reference). These reports, for the first time, included information on multiple budget years as well as prior year actual results. The budgets Greater Vancouver Water District - 14

15 2016 Budget Metro Vancouver Districts and Housing Corporation Intergovernment and Finance Committee Meeting Date: October 14, 2015 Page 2 of 8 and business plans have been endorsed by the Standing Committees and are summarized in this report BUSINESS PLAN AND BUDGET The 2016 Metro Vancouver Districts and Housing Corporation budgets are presented to provide the Committee with the overall financial picture for 2016 as well as the impact of the proposed budgets on an average household within Metro Vancouver with an assessed value of $760,000. More details on the budget are attached for information, the Budget in Brief (Attachment 2) and the 2015 Financial Information (Attachment 3). BUDGET HIGHLIGHTS GVWD - WATER Water Sales $251.8 million $8.0 million increase (3.3%) Avg Water Rate: $ per cubic metre 1.9% increase Increase to Avg Household: $4 Total Household Impact: $158 (assumes the avg household uses 243 cubic metres annually) Total Expenditures: $253.4 million $7.8 million increase (3.2%) Total Capital Expenditures: $179.5 million $10.5 million decrease (5.5%) Operating Expenditures: The 2016 operating budget in the GVWD is increasing by $0.5 million primarily due to a full year of Barnston/Maple Ridge pump station operations, work towards the development of an asset management plan, an increase in Provincial water rental fees, and the undertaking of a regional water conservation campaign. Some of the other key actions planned for 2016 include the development of a Comprehensive Regional Water System Plan, identification of climate change impacts on infrastructure, the development of an adaptation strategy, and the commissioning of the Port Mann Water Supply Tunnel. In addition to these operating initiatives, debt service costs related to the longterm debenture funding of capital expenditure are increasing by $4.5 million due to debenture funding required for past capital expenditures and there is a $2.8 million increase to the pay as you go capital funding program which will reduce future borrowing requirements and thus debt service costs. In order to meet the increasing operational demands in a cost effective manner, the 2016 GVWD Budget proposes the addition of 3.0 fulltime regular (FTR) positions: 1.0 position to provide enhanced system modeling for long term growth planning; 1.0 position to manage water capital improvement projects at the Capilano and Coquitlam sources and 1.0 position conversion from full-time temporary to support watershed management programs in the Lower Seymour Conservation Reserve. Capital Expenditures: The Water capital budget for 2016 reflects spending on infrastructure growth, risk management, maintenance and upgrade projects. The 2016 focus is on risk management regarding securing water crossing infrastructure and expanding existing infrastructure for regional population growth. Overall, there are a total of 110 capital projects included in the 2016 budget for Water Services. Highlights of major capital projects planned for 2016 to respond to requirements include the following: Greater Vancouver Water District - 15

16 2016 Budget Metro Vancouver Districts and Housing Corporation Intergovernment and Finance Committee Meeting Date: October 14, 2015 Page 3 of 8 Commence project definition for infrastructure improvements necessary to store, treat and covey additional supply from the Coquitlam source. Complete construction of the Port Mann Main No. 2 (North), Capilano Main No. 9 and South Delta Main No. 1 Replacement projects. Complete design and commence construction of Clayton Reservoir. Complete construction of Lynn Valley Reservoir and Hellings Tank Seismic Upgrade. Complete design of Douglas Road Main No. 2 (Still Creek Section). Complete construction of MacKay Creek Debris Flow mitigation project. Continue the Port Mann, Second Narrows and Annacis Water Supply Tunnel projects. GVS&DD LIQUID WASTE Sewer Levy $200.3 million $8.0 million increase (4.1%) Sewer Levy Increase to Avg Household: 2.6% Increase to Avg Household: $4 Total Household Impact: $180 Total Expenditures: $215.5 million $5.1 million increase (2.4%) Total Capital Expenditures: $126.0 million $33.9 million increase (36.8%) The average municipal household impact on the Sewer Levy is expected to increase by $3 (1.9%), reflecting an assumed population growth of 1.5% based on average population growth experienced within the region and based on historical data. Operating Expenditures: The 2016 operating budget in Liquid Waste is increasing by $2.1 million primarily due to the commencement of the removal of stock piled biosolids from the Iona Island Wastewater Treatment Plant, continuation of work on the Lions Gate Wastewater Treatment Plant (WWTP) Secondary Upgrade project, activities associated with the expansion of the environmental monitoring and source control programs and work towards the development of an asset management plan. Some of the other key actions planned for 2016 include identification of climate change impacts on infrastructure, completion of Northwest Langley WWTP Upgrade, and commencement of Annacis Island WWTP Stage 5 expansion construction. In addition to these operating initiatives, debt service costs related to the long-term debenture funding of capital expenditure is decreasing by $1.4 million due to debenture maturities while the pay as you go capital funding program, which will reduce future borrowing requirements, is increasing by $4.4 million over The 2016 Liquid Waste Budget proposes the addition of 3.0 fulltime regular positions; 1.0 Senior Engineer to provide senior level technical input into environmental assessment reporting; 1.0 Program Manager to manage the source control program to meet Board strategic directions; and 1.0 Senior Project Engineer to manage the implementation of the Lions Gate Wastewater Treatment Plant Secondary Upgrade project. Capital Expenditures: The Liquid Waste capital budget for 2016 is focused on building system capacity to meet the demands of a growing population, infrastructure upgrades to meet new regulatory requirements, infrastructure maintenance to continue to meet service demands, risk management and implementation of opportunity projects. Greater Vancouver Water District - 16

17 2016 Budget Metro Vancouver Districts and Housing Corporation Intergovernment and Finance Committee Meeting Date: October 14, 2015 Page 4 of 8 Overall, there are a total of 145 capital projects included in the 2016 budget for Liquid Waste. Highlights of major capital projects planned for 2016 to respond to requirements include the following: Fraser Sewerage Area o Annacis Island WWTP Stage 5 Expansion Phase 1 construction o Burnaby Lake North interceptor Twinning design o Sapperton Pumping Station design o Northwest Langley WWTP Upgrade construction Vancouver Sewerage Area o Iona Island WWTP Solids Handling Upgrade construction Lulu Island Sewerage Area o Gilbert Trunk Sewer Twinning Phase 2 construction North Shore Sewerage Area o Procurement of Design-Build-Finance contract for Lions Gate WWTP Secondary Upgrade project GVS&DD SOLID WASTE Tipping Fee Revenue $80.0 million $4.2 million increase (5.5%) Tipping Fee Structure: $133 per metric tonne Up to 1 tonne (up $3) $112 per metric tonne 1 to 9 tonnes (up $3) $80 per metric tonne 9 tonnes and over (unchanged) $100 per metric tonne Single family/public works (new) Transaction Fee: $5 per load Decrease to Avg Household: $1 Total Household Impact: $56 (assumes the avg household produces 54% of a metric tonne) Total Expenditures: $90.8 million $2.4 million decrease (2.5%) Total Capital Expenditures: $17.2 million $27.9 million increase (66.3%) The 2016 Tipping Fee structure continues with the interim measure implemented in April 2015 to achieve the objective of reducing solid waste migration and create a structure whereby regional waste is handled by Regional Facilities. This interim variable tipping fee structure was implemented as an interim measure as Metro Vancouver has little ability to reduce expenditures, in the short-term, due to the existing infrastructure and contractual requirements for facility operations. Operating Expenditures: With the declining waste flows, the Solid Waste function expenditures were reviewed and reductions made where possible. The overall 2016 expenditures in Solid Waste, which are primarily driven by third party contracts, are budgeted to decline in 2016 by $2.4 million. The expenditures are decreasing due to reductions in salaries and benefits and consulting projects as several staff positions will not be funded in 2016 pending more certainty regarding waste flow moving forward. In addition, the zero waste communication programs, previously funded by the tipping fee, will be funded through the GVRD General Government function in Further to these operating adjustments, some key actions for 2016 include the procurement of a third party transfer station operator, the North Shore Transfer Station reconfiguration and continuation with the Surrey Residential Drop- off Facility and the Coquitlam Transfer Station replacement projects. Greater Vancouver Water District - 17

18 2016 Budget Metro Vancouver Districts and Housing Corporation Intergovernment and Finance Committee Meeting Date: October 14, 2015 Page 5 of 8 Capital Expenditures: The Solid Waste capital budget for 2016 is $17.2 million. Highlights of capital projects planned for 2016 to respond to work plan requirements include the following: Surrey Residential Drop-Off, Coquitlam Transfer Station replacement, and North Shore Transfer Station reconfiguration work Capital upgrades to existing WTE facility MVHC HOUSING Total Housing Rents: $35.8 million $1.0 million increase (3.0%) Total Expenditures: $40.6 million $0.9 million increase (2.2%) Total Capital Expenditures: $11.7 million $2.2 million increase (23.2%) The Housing Corporation is supported by revenues generated from unit rentals and does not form part of the overall GVRD tax requisition. Operating Expenditures: The Housing Corporation operating expenditures for 2016 are primarily driven by increases in contractor maintenance and materials costs, utilities, insurance and property taxes. Operating expenditures comprise $24.5 million of the $40.5 million budget. Debt servicing and reserve fund contributions represent $16 million in projected operating expenditures. Capital Expenditures: The Housing capital budget includes both capital replacement ($6.1 million) for existing projects and for development ($5.6 million). Capital replacement includes those expenditures required to ensure MVHC s existing housing stock is retained in good condition. Planned 2016 work includes: Routine upgrades to flooring, appliances, kitchens and bathrooms Building envelope restoration (Regal Place and Tivoli Garden) Roofing replacements Kingston Gardens, Tivoli Place and Alderwood) The 2016 budget for development is dedicated to the Heather Place Re-Development Project. Plans for the re-development are proceeding well. The 2016 budget includes funding for construction of Phase 1 of the project. GVRD REGIONAL DISTRICT Tax Requisitions $49.8 million $2.7 million increase (5.7%) Tax Requisition Increase to Avg Household: 4.2% Increase to Avg Household: $2 Total Household Impact: $42 Total Expenditures: $69.1 million $3.5 million increase (5.4%) Total Capital Expenditures: $12.0 million (Parks) $1.1 million decrease (8.4%) The average household impact on the GVRD Requisition is increasing $2 from 2015 (4.2%), reflecting an assumed population growth of 1.5% based on average population growth experienced within the region and based on historical data. Greater Vancouver Water District - 18

19 2016 Budget Metro Vancouver Districts and Housing Corporation Intergovernment and Finance Committee Meeting Date: October 14, 2015 Page 6 of 8 Operating Expenditures: The GVRD budget includes nine regional district functions of which seven services are apportioned to all GVRD members through the tax requisition and two services which are apportioned to either a single jurisdiction (Electoral Area A) or to two municipalities (Belcarra and Anmore Fire Protection). The GVRD function is also funded through a variety of other sources including permit revenues and user fees. The nine regional district functions are as follows: Air Quality E911 Emergency Telephone Service Electoral Area Service General Government Labour Relations Regional Global Positioning System Regional Parks Regional Planning Sasamat Volunteer Fire Department The total operating program for the 2016 Regional District budget is $69.1 million representing an increase of $3.5 million. Operating program highlights include the following initiatives: Develop and implement integrated regional climate action strategy Complete update to Regional Parks Plan Complete construction of Surrey Bend Regional Park and hold a an official opening in partnership with the City of Surrey Develop a strategy on land use and climate change migration and adaptation Prepare and implement a municipal and public outreach strategy Zero Waste Communications Program The 2016 GVRD budget proposes the addition of positions in the areas of Regional Parks, Air Quality and Environmental Regulation and Enforcement to support the 2016 work program. Two positions are proposed in Regional Parks to support operations of the newly developed Surrey Bend Regional Park and to support resource and park protection in Kanaka Creek Regional Park. Air Quality has proposed one position in 2016 to assist in bylaw and regulation policy development. Environmental Regulation and Enforcement has requested one position to assist in environmental monitoring. Regional Planning has requested one position to support regional initiatives in data and analytics strategy, land use and climate change migration, and adaption efforts. Capital Expenditures: Capital expenditures in the Regional District are all within the Regional Parks function and are funded on a pay as you go basis through contribution to capital reserves. The 2016 program will direct funds towards capital maintenance, a number of major capital projects and land acquisition. Highlights of capital projects planned for 2016 to respond to requirements include the following: Colony Farm sheep paddocks trail Kanaka Creek Watershed Stewardship Centre Academy Deas Island sewerage disposal system replacement Completion of Colony Farm day use area Burns Bog Research Coordination and Service Centre Greater Vancouver Water District - 19

20 2016 Budget Metro Vancouver Districts and Housing Corporation Intergovernment and Finance Committee Meeting Date: October 14, 2015 Page 7 of 8 CENTRALIZED SUPPORT PROGRAM The Centralized Support Program includes the following support services: Corporate Planning, Corporate Services, External Relations, Financial Services, Human Resources and Board and Legislative Services. These departments support all activities within the Metro Vancouver Districts and the Housing Corporation and costs are allocated to the various Districts and functions on a proportionate basis. Total budget for the centralized programs is $56.8 million for 2016 representing a 4.4% decrease ($2.6 million). The total centralized support expenditures are lower than 2015 due to the transfer of direct communications program costs from External Relations to individual Metro Vancouver functions to better align with Metro Vancouver s regional district funding model and to provide increased transparency with respect to the direct cost of these communications programs. In addition, some one-time projects included in Information Technology were completed in Key activities in 2016 include the implementation of a new agenda and meeting management system, enhancements to the corporate budgeting system and process as well as the commencement of a long-term financial planning process including a financial policy review. Centralized Support is proposing additional staff resources of 3.0 fulltime regular positions to support the activities of the organization. The position requests include one position in Information Technology to provide technical support for corporate document management software; one position in External Relations to provide communications/media relations support; and one position in Human Resources to provide administrative support. BUDGET APPROVAL PROCESS The 2016 Budget was presented to municipal staff through presentations to various staff advisory committees. A Board Budget Workshop is scheduled for October 21, during which the Board will receive a presentation and review all of the budget material including any recommendations and feedback from standing committees and feedback from the municipal staff presentations. The public will also be invited to this workshop. ALTERNATIVES 1. That the Intergovernment & Finance Committee endorse the 2016 Budgets of the Metro Vancouver Districts and Housing Corporation as presented and forward them to the October 21st Metro Vancouver Board Budget Workshop for consideration. 2. That the Intergovernment & Finance Committee make recommendations and that the Intergovernment & Finance Committee endorse the 2016 Budgets of the Metro Vancouver Districts and Housing Corporation as presented and forward them and their recommendations to the October 21st Metro Vancouver Board Budget Workshop for consideration. FINANCIAL IMPLICATIONS The 2016 Budgets for the Metro Vancouver Districts and Housing Corporation as presented under alternative one represent a $9 increase to the average regional household ($760,000 assessed value) for a total cost of $436 in Total expenditures are $669.4 million which is an increase of 2.3% over Greater Vancouver Water District - 20

21 2016 Budget Metro Vancouver Districts and Housing Corporation Intergovernment and Finance Committee Meeting Date: October 14, 2015 Page 8 of 8 Under alternative two, the Committee may wish to consider recommending amendments to the operating and/or capital budget to reflect program priorities. Any proposed changes could require an update to the tax requisition for the service. SUMMARY / CONCLUSION As part of the 2016 Budget Process, all Metro Vancouver departments have developed business plans and their associated budgets to provide Committee and Board members with a high level overview on the role of the service, the total budget, performance indicators and key actions for the coming year. The 2016 Budgets for the GVRD, GVWD, GVS&DD and MVHC have followed this model. The 2016 Budgets for the Metro Vancouver Districts and Housing Corporation as presented under alternative one represents a $9 increase to the average regional household ($760,000 assessed value) for a total cost of $436 in Total expenditures are $669.4 million which is an increase of 2.3% over These budgets have been prepared to ensure consistency and alignment with the legislative authority of the various Districts and functions and have been prepared to support the vision and mission of the Regional Federation as articulated in the Board Strategic Plan. Upon Board approval, these Budgets will provide the expenditure authority for the operations of the Metro Vancouver Districts and Housing Corporation. Staff recommend endorsing the 2016 Budgets and Business Plans as presented under alternative one. Attachments (Orbit # ) Budget Revenue and Expenditure Summary Budget In Brief Financial Information Includes detailed budgets for all Metro Vancouver Districts and functions Reference: Standing Committee Budget Reports (Orbit # ) Greater Vancouver Water District - 21