October 23, 2015
GREATER VANCOUVER WATER DISTRICT (GVWD)
BOARD OF DIRECTORS
REGULAR BOARD MEETING Friday, October 30, 2015
9:00 A.M.
2nd Floor Boardroom, 4330 Kingsway, Burnaby, British Columbia Membership and Votes
A G E N D A1
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
1.1 2016 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.
Meeting 4 of 7
GVWD Board Agenda October 30, 2015 Agenda Page 2 of 2
A4 2016 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:
$0.7407 per cubic metre for June through September; and
$0.5926 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, 2015.
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
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 2nd 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 2 of 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
It was MOVED and SECONDED
That the GVWD Board adopt the minutes for its regular meeting held
September 18, 2015 as circulated. CARRIED C. DELEGATIONS No items presented. 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 3 of 4
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 2015.
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 4 of 4
M. ADJOURNMENT/CONCLUSION
It was MOVED and SECONDED
That the GVWD Board conclude its regular meeting of October 9, 2015.
CARRIED (Time: 9:14 a.m.) CERTIFIED CORRECT
Chris Plagnol, Corporate Officer
Greg Moore, Chair
To: GVWD Board of Directors
From: 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 A4 2016 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: $0.7407 per cubic metre for June through September; and $0.5926 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 14th and a Board Budget Workshop on October 21st.
The report “2016 Budget – Metro Vancouver Districts and Housing Corporation” sent to the Intergovernment and Finance Committee meeting on October 14th and the Board Budget Workshop on October 21st is attached for information. Attachment 1: A1 ‐ Revenue and Expenditure Summary A4 ‐ 2016 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” 10347693
Section
E
1.1
A1
2015 2016 %
BUDGET BUDGET CHANGE
REVENUES Water Sales $ 243,816,995 $ 251,824,851 3.3% GVS&DD Levy 192,334,433 200,250,619 4.1% Tipping Fees 75,813,273 80,015,101 5.5% GVRD Requisition 47,177,139 49,844,842 5.7% Housing Rents 34,727,509 35,770,618 3.0%
BOD/TSS Industrial Charges 7,558,982 8,518,412 12.7%
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 8,221,829 0.0%
User Fees 5,242,067 5,305,821 1.2%
Housing Subsidies 4,139,706 3,965,673 (4.2%)
Non-Road Diesel Permit Fees 1,309,000 1,992,000 52.2%
GPS User Fees 332,551 324,316 (2.5%)
Electoral Area Requisition 356,377 363,567 2.0%
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 $ 669,357,126 2.3%
EXPENDITURES Operating Programs:
Greater Vancouver Water District $ 245,568,058 $ 253,374,503 3.2%
Greater Vancouver Sewerage & Drainage District:
Liquid Waste 210,412,101 215,501,402 2.4%
Solid Waste 93,166,196 90,799,623 (2.5%)
Metro Vancouver Housing Corporation 39,699,775 40,572,020 2.2%
Greater Vancouver Regional District
Air Quality 8,501,984 8,967,988 5.5%
E911 Emergency Telephone Service 4,036,446 4,126,798 2.2%
Electoral Area Service 485,798 551,346 13.5%
General Government 13,378,863 14,304,664 6.9%
Labour Relations 2,188,510 2,446,348 11.8%
Regional Global Positioning System 757,551 754,316 (0.4%)
Regional Parks 32,988,346 34,391,648 4.3%
Regional Planning 2,972,410 3,259,324 9.7%
Sasamat Volunteer Fire Department 249,336 307,146 23.2%
65,559,244 69,109,578 5.4%
TOTAL EXPENDITURES $ 654,405,374 $ 669,357,126 2.3%
METRO VANCOUVER DISTRICTS REVENUE AND EXPENDITURE SUMMARY
2016 BUDGET
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 - 4330 Kingsway and 5945 Kathleen Ave 4,345,000
Fund Head Office re-organization - 4330 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
Fund Equipment Purchases 1,600,000
Fund Projected Deficit 2016 2,208,728
Liquid Waste
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
B1
2015 2016 %
BUDGET BUDGET CHANGE
REVENUES
Water Sales $ 243,816,995 $ 251,824,851 3.3%
Other External Revenues 807,063 889,652
Other Funds / Reserves 944,000 660,000
TOTAL REVENUES $ 245,568,058 $ 253,374,503 3.2%
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
3,275,984 14.7%
Engineering and Construction
Minor Capital Projects 11,641,271 10,295,416
Dispatch 157,790 127,343
Public Involvement 907,800 939,348
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 89,971 112,243
Engineering Standards 113,095 117,277
Engineers in Training 463,737 631,217
Management Systems Utility Services 998,901 1,161,907
Minor Capital Projects 783,507 581,594
Records Management 106,344 108,601
Research and Innovation 649,024 620,153
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
13,439,634 1.2%
Operations and Maintenance
Drinking Water Residuals 1,019,498 1,267,959
Lake City Operations 988,696 985,224
Maintenance 9,109,994 9,118,522
Operating Contingency 500,000
-SCADA Control Systems 4,399,663 4,830,049
Secondary Disinfection 879,973 897,753
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 164,138 193,309
Water Supply 13,448,343 14,343,952
45,630,954
46,789,276 2.5%
Administration and Department Support 1,771,633 1,873,872 5.8%
Communications Program - 435,000 0.0%
Allocation of Centralized Costs 18,843,706 18,391,525 (2.4%)
Total Operating Programs 99,621,043 100,075,736 0.5%
Debt Service 93,640,928 98,183,192 4.9%
Contribution to Capital 52,306,087 55,115,575 5.4%
TOTAL EXPENDITURES $ 245,568,058 $ 253,374,503 3.2%
GREATER VANCOUVER WATER DISTRICT WATER
ORIGINAL TOTAL PROJECT COSTS TOTAL PROJECT COSTS $28,000,000 $28,000,000 8,000,000 8,000,000 600,000 600,000 750,000 750,000 550,000 550,000 4,130,000 4,130,000 1,670,000 1,670,000 1,400,000 1,400,000 900,000 900,000 1,500,000 1,500,000 3,900,000 3,900,000 1,000,000 1,000,000 24,100,000 24,100,000 1,200,000 1,200,000 4,200,000 4,200,000 11,700,000 11,700,000 1,500,000 1,500,000 1,200,000 1,200,000 600,000 600,000 1,000,000 1,000,000 1,350,000 1,350,000 1,200,000 1,200,000 1,750,000 1,750,000 $102,200,000 $102,200,000 1,050,000 1,050,000 250,000 250,000 1,800,000 1,800,000 2,100,000 2,100,000 1,135,000 1,135,000 390,000 390,000 16,700,000 16,700,000 12,300,000 12,300,000 12,500,000 12,500,000 1,500,000 1,500,000 480,000 480,000 16,600,000 16,600,000 1,600,000 1,600,000 12,000,000 12,000,000 4,500,000 4,500,000 2,000,000 2,000,000 942,000 942,000
SCFP Clearwell Columns Remediation Construction 975,000
-Westburnco #1 Water PS Main Transformer and MCC Replacement 368,000
-E2 Shaft Phase 3 Production Well Construction 6,000,000
-E2 Shaft Phase 3 Test Well Construction 200,000
-Douglas Road Main No. 2 Delta Section 1,200,000
-Douglas Road Main No. 2 Still Creek Design 650,000
-Douglas Road Main No. 2 (Vancouver Heights Section) Detailed Design 800,000
-Douglas Road Main No. 2 (Vancouver Heights Section) Predesign 280,000
-Douglas Road Main 2 - Kincaid Section Construction 3,000,000
-Douglas Road Main 2 Stage 1 Construction 1,000,000
-Cleveland Dam East Abutment T505/506 Drainage Adit Upgrades Construction 90,000
-Douglas Road Main 2 - 13th Ave Construction 1,625,000
-Central Park WPS Starters Replacement 300,000
-Cleveland Dam Drum Gate Resurfacing 700,000
-Central Park Main Replacement (10th Ave to Westburnco) Preliminary Design 150,000
-Central Park Main Replacement (Patterson to 10th Ave) Predesign 1,000,000
-2016 - Approved Projects in Progress
37AM Replacement (Rupert Street to Little Mountain Reservoir) Predesign 550,000
-Water Infrastructure Maintenance Capital
South Delta Main #1 Upgrade Design 250,000
-$39,440,000 $0
Coquitlam Main No. 4 (South Section) Predesign 50,000
-Newton Pump Station No. 2 Preliminary Design 1,200,000
-2016 - New Projects
Coquitlam Main No. 4 (Cape Horn) Pre Design 80,000
-Whalley Main Detailed Design 300,000
-Whalley Main Predesign 100,000
-South Delta Main No. 1 -12th Ave to 28th Ave Construction 8,660,000
-South Surrey Main No. 2 Preliminary Design 1,000,000
-Port Mann Main No. 2 (South) Design 600,000
-South Delta Main No. 1 (Highway #17 Prebuild and Connection to TFN) Design and Construction
200,000
-Kennedy Newton Main Predesign 500,000
-Port Mann Main No. 2 (North) Construction 12,000,000
-Jericho Reservoir No. 1 Detailed Design 1,000,000
-Kennedy Newton Main Detailed Design 1,900,000
-Fleetwood Reservoir Detailed Design 1,000,000
-Hellings Tank No. 2 Detailed Design 800,000
-Coquitlam Intake No. 2 & Tunnel Conceptual 900,000
-Coquitlam Main No. 4 (Central Section) Predesign 600,000
-Annacis Main No. 5 (South) Predesign 300,000
-Capilano Main No.5 (South Shaft to Lost Lagoon) Predesign 200,000
-Annacis Main No. 5 (Marine Crossing) Predesign 3,500,000
-Annacis Main No. 5 (North) Predesign 300,000
-Annacis Main No. 5 (Marine Crossing) Detailed Design $4,000,000
-Water Infrastructure Growth Capital
B2
GREATER VANCOUVER WATER DISTRICT CAPITAL PROGRAMS & PROJECT DETAILS
WATER 2016 BUDGET 2016 CAPITAL BUDGET CHANGE IN TOTAL PROJECT COSTS CAPITAL EXPENDITURES
ORIGINAL TOTAL PROJECT COSTS TOTAL PROJECT COSTS 2,200,000 2,200,000 400,000 400,000 3,600,000 3,600,000 525,000 525,000 100,000 100,000 200,000 200,000 1,000,000 1,000,000 250,000 250,000 1,000,000 1,000,000 6,000,000 6,000,000 180,000 180,000 1,000,000 1,000,000 $104,302,000 $104,302,000 29,000,000 29,000,000 530,000 530,000 8,300,000 8,300,000 1,000,000 1,000,000 1,300,000 1,300,000 1,600,000 1,600,000 2,300,000 2,300,000 800,000 400,000 4,500,000 4,500,000 1,000,000 1,000,000 239,000,000 239,000,000 15,000,000 15,000,000 400,000 400,000 2,400,000 2,400,000 400,000 400,000 2,000,000 2,000,000 500,000 500,000 7,800,000 7,800,000 300,000 300,000 2,500,000 2,500,000 500,000 500,000 100,000 100,000 30,000,000 30,000,000 300,000 300,000 7,000,000 7,000,000 2,250,000 2,250,000 500,000 500,000 200,000 200,000 3,000,000 3,000,000 100,000 100,000 775,000 775,000
Seymour Falls Boat Wharf Detailed Design 100,000
-Seymour Main No. 2 (SE2) Joint Improvements Construction 500,000
-SCFP UPS Reconfiguration Detailed Design 200,000
-Second Narrows Crossing (Tunnel) Site Preparation Construction 3,000,000
-Reservoir Isolation Valve Automation Construction 750,000
-SCFP Site Entrance Improvements Construction 250,000
-Cleveland Dam Pump House Seismic Upgrade Detailed Design 300,000
-Mackay Creek Debris Flow Mitigation Construction 1,000,000
-Capilano Reservoir Boat Wharf Detailed Design 100,000
-Clayton Reservoir Construction 10,000,000
-Capilano Raw Water Pump Station - Back-up Power Detailed Design 1,000,000
-Capilano Raw Water Pump Station - Back-up Power Preliminary Design 500,000
-Braid St. Main No.2 Construction 5,000,000
-Burnaby Mountain Reservoir Seismic Upgrade Detailed Design 300,000
-Barnston Maple Ridge Pump Station - Back-up Power Detailed Design 500,000
-Barnston Maple Ridge Pump Station - Back-up Power Preliminary Design 500,000
-South Delta Main No. 3 - 12th Ave to Pebble Hill Preliminary Design 300,000
-2016 - New Projects
Seymour Capilano Dewatering Wells Design 300,000
-Seymour Capilano Filtration Plant - Storage Building 900,000
-Port Mann No.2 Fraser R. Crossing (Construction) 32,000,000
-Second Narrows Crossing (Tunnel) Detailed Design 7,000,000
-Hellings Tank Seismic Upgrade Construction 1,500,000
-Mackay Creek Debris Flow Mitigation Detailed Design 500,000
-CWTP Operational and Safety Enhancements Construction 1,800,000
-Emergency Power Strategy for Regional Water Facilities Conceptual Design 50,000 (400,000)
Coquitlam Multi Storage Facility 1,100,000
-Coquitlam Watershed Security Gatehouse Replacement 1,000,000
-Convert to Bulk Sodium Hypochlorite from Chlorine Gas at Coquitlam WTP 4,600,000
-Coquitlam Intake Tower Seismic Upgrade Design 400,000
-Capilano Main No 9 North Section Construction 15,000,000
-Capilano Rd. Phase 2 ADAS Piezometers Cleveland Dam East Abutment 275,000
-Water Infrastructure Risk Management Capital 2016 - Approved Projects in Progress
$26,018,000 $0
Seymour Falls Dam Buttress Anchor Rehab and Bridge Repair Detailed Design 180,000
-Tilbury Main - Dredging Impacts Predesign 1,000,000
-Lynn Valley Main Replacement Detailed Design 1,000,000
-SCFP Filter Underdrain Repairs Construction 1,200,000
-Lulu Island Delta Main - Dredging Impacts Predesign 1,000,000
-Lulu Island Delta Main - Scour Protection Detailed Design 250,000
-Cleveland Dam Bridge Girder Recoating Design 100,000
-Fisherman's Trail/Riverside Drive Bridges Detailed Design 200,000
-Central Park Main Replacement (Patterson to 10th Ave) Detailed Design 800,000
-Cleveland Dam Bridge Girder Recoating Construction 100,000
-37AM Replacement (Rupert Street to Little Mountain Reservoir) Detailed Design 1,100,000
-Annacis Main No. 2 - Dredging Impacts Design 200,000
-B3
GREATER VANCOUVER WATER DISTRICT CAPITAL PROGRAMS & PROJECT DETAILS
WATER 2016 BUDGET 2016 CAPITAL BUDGET CHANGE IN TOTAL PROJECT COSTS 2016 - New Projects
ORIGINAL TOTAL PROJECT COSTS TOTAL PROJECT COSTS 50,000 50,000 7,000,000 7,000,000 250,000 250,000 500,000 500,000 $373,155,000 $372,755,000 150,000 150,000 1,650,000 1,650,000 6,000,000 6,000,000 5,500,000 5,500,000 900,000 900,000 450,000 450,000 10,300,000 10,300,000 950,000 950,000 3,900,000 3,900,000 9,540,000 9,540,000 750,000 750,000 1,000,000 1,000,000 300,000 300,000 3,600,000 3,600,000 1,000,000 1,000,000 1,800,000 1,800,000 $47,790,000 $47,790,000 2,500,000 2,500,000 4,000,000 4,000,000 $6,500,000 $6,500,000 $633,947,000 $633,547,000
Barnston/Maple Ridge Pump Station Power Generation 200,000
-Capilano Hydropower Preliminary Design 3,000,000
-Water Opportunity Capital
2016 - Approved Projects in Progress
TOTAL CAPITAL EXPENDITURES $179,483,000 ($400,000)
$3,200,000 $0
$18,300,000 $0
South Delta Mains - 28 Ave Crossover Design 1,000,000
-Water Meter Upgrades Detailed Design 600,000
-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
-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
-Water Optimization Automation & Instrumentation 1,200,000
-2016 - New Projects
South Delta Main No. 1 - 28 Ave to 34B Ave Design 50,000
-Tilbury Junction Chamber Valves Replacement with Actuators 2,000,000
-Sapperton Main #1 New Line Valve and Chamber Detailed Design 250,000
-South Delta Main No. 1 - 28 Ave to 34B Ave Construction 5,150,000
-Queensborough Main - Ewen Ave Replacement Construction Phase 1 500,000
-Queensborough Main - Ewen Ave Replacement Phase 1&2 Design 300,000
-Coquitlam Communication Improvements Constr. 500,000
-Lynn Valley Water Storage Reservoir Construction 1,500,000
-2016 - Approved Projects in Progress
Burwell Alpine Reservoir Valve Improvements Design 50,000
-Water Infrastructure Upgrade Capital
$92,525,000 ($400,000)
Sunnyside Reservoir Upgrades Preliminary Design 250,000
-Westburnco Pump Station - Back-up Power Preliminary Design 500,000
-Seymour Main No. 2 (SE2) Joint Improvements Detailed Design 50,000
-Seymour Main No. 5 III ( North ) Detailed Design 1,000,000
-B4
GREATER VANCOUVER WATER DISTRICT CAPITAL PROGRAMS & PROJECT DETAILS
WATER 2016 BUDGET 2016 CAPITAL BUDGET CHANGE IN TOTAL PROJECT COSTS
To: Intergovernment and Finance Committee
From: 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.
2016 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 2018. 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 2016.
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
12054418
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.
2016 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: $0.6522 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 long-term 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:
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 2015.
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.
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 2016. 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.
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.
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 Regional Global Positioning System
E911 Emergency Telephone Service Regional Parks
Electoral Area Service Regional Planning
General Government Sasamat Volunteer Fire Department
Labour Relations
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
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 2015. 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 2016. Total expenditures are $669.4 million which is an increase of 2.3% over 2015.
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 2016. Total expenditures are $669.4 million which is an increase of 2.3% over 2015.
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 #12063477)
1. 2016 Budget – Revenue and Expenditure Summary 2. 2016 Budget In Brief
3. 2016 Financial Information – Includes detailed budgets for all Metro Vancouver Districts and functions