GREATER VANCOUVER REGIONAL DISTRICT PERFORMANCE AND PROCUREMENT COMMITTEE

Transcription

1 GREATER VANCOUVER REGIONAL DISTRICT PERFORMANCE AND PROCUREMENT COMMITTEE REGULAR MEETING Friday, November 13, :00 a.m. 2 nd Floor Boardroom, 4330 Kingsway, Burnaby, British Columbia. 1. ADOPTION OF THE AGENDA A G E N D A November 13, 2015 Regular Meeting Agenda That the Performance and Procurement Committee adopt the agenda for its regular meeting scheduled for November 13, 2015 as circulated. 2. ADOPTION OF THE MINUTES 2.1 July 17, 2015 Regular Meeting Minutes That the Performance and Procurement Committee adopt the minutes of its regular meeting held July 17, 2015 as circulated. 3. DELEGATIONS No items presented. 4. INVITED PRESENTATIONS No items presented. 5. REPORTS FROM COMMITTEE OR STAFF 5.1 Financial Performance Report as of August 2015 Designated Speaker: Dean Rear That the Performance and Procurement Committee receive the report dated October 23, 2015 titled Financial Performance Report as of August 2015 for information. 5.2 Investment Position and Returns May 1 to August 31, 2015 Designated Speaker: Dean Rear That the Performance and Procurement Committee receive the report titled Investment Position and Returns May 1 to August 31, 2015, dated October 13, 2015 for information. 1 Note: Recommendation is shown under each item, where applicable. PAP - 1

2 Performance and Procurement Committee Regular Agenda November 13, 2015 Agenda Page 2 of Status of Water, Liquid Waste and Solid Waste Capital Expenditures to August 31, 2015 Designated Speaker: Dean Rear That the Performance and Procurement Committee receive the report titled Status of Water, Liquid Waste and Solid Waste Capital Expenditures to August 31, 2015, dated October 26, 2015 for information. 5.4 Semi-Annual Report on GVS&DD Development Cost Charges Designated Speaker: Dean Rear That the Performance and Procurement Committee receive the report dated October 8, 2015 titled Semi-Annual Report on GVS&DD Development Cost Charges for information. 5.5 Metro Vancouver s Procurement Practices with respect to Buying Local Designated Speaker: Tracey Husoy That the Performance & Procurement Committee receive the report titled Metro Vancouver s Procurement Practices with respect to Buying Local, dated November 3, 2015 for information. 5.6 Tender/Contract Award Information June to September 2015 Designated Speaker: Tracey Husoy That the Performance & Procurement Committee receive the report titled Tender/Contract Award Information June to September 2015, dated October 26, 2015 for information. 5.7 Manager s Report Designated Speaker: Phil Trotzuk That the Performance and Procurement Committee receive the report titled Manager s Report, dated October 28, 2015 for information. 6. INFORMATION ITEMS 6.1 Water Treatment Plant Process Optimization 7. OTHER BUSINESS No items presented. 8. BUSINESS ARISING FROM DELEGATIONS No items presented. 9. RESOLUTION TO CLOSE MEETING That the Performance and Procurement close its regular meeting schedule for November 13, 2015 pursuant to the Community Charter provisions, Section 90 (1) (i) as follows: 90 (1) A part of a meeting may be closed to the public if the subject matter being considered relates to or is one of more of the following: (i) the receipt of advice that is subject to solicitor-client privilege, including communications necessary for that purpose PAP - 2

3 Performance and Procurement Committee Regular Agenda November 13, 2015 Agenda Page 3 of ADJOURNMENT/CONCLUSION That the Performance and Procurement Committee adjourn/conclude its regular meeting of November 13, Membership: Clay, Mike (C) Port Moody Jordan, Colleen (VC) Burnaby Baldwin, Wayne White Rock Brodie, Malcolm Richmond Coté, Jonathan New Westminster Fox, Charlie Langley Township Gill, Tom Surrey McEwen, John Anmore Meggs, Geoff - Vancouver Mussatto, Darrell North Vancouver City Reid, Mae Coquitlam Bell, Corisa Maple Ridge Smith, Michael West Vancouver PAP - 3

4 GREATER VANCOUVER REGIONAL DISTRICT PERFORMANCE AND PROCUREMENT COMMITTEE Minutes of the Regular Meeting of the Greater Vancouver Regional District (GVRD) Performance and Procurement Committee held at 9:00 a.m. on Friday, July 17, 2015 in the 2 nd Floor Boardroom, 4330 Kingsway, Burnaby, British Columbia. MEMBERS PRESENT: Chair, Mayor Mike Clay, Port Moody Vice Chair, Councillor Colleen Jordan, Burnaby Mayor Wayne Baldwin, White Rock (arrived at 9:34 a.m.) Mayor Malcolm Brodie, Richmond Mayor Jonathan Coté, New Westminster Councillor Charlie Fox, Langley Township Councillor Tom Gill, Surrey Mayor John McEwen, Anmore Councillor Geoff Meggs, Vancouver (arrived at 9:04 a.m.) Mayor Darrell Mussatto, North Vancouver City Councillor Mae Reid, Coquitlam Mayor Michael Smith, West Vancouver MEMBERS ABSENT: Councillor Corisa Bell, Maple Ridge STAFF PRESENT: Phil Trotzuk, Chief Financial Officer Carol Mason, Commissioner/Chief Administrative Officer Janis Knaupp, Assistant to Regional Committees, Board and Information Services, Legal and Legislative Services 1. ADOPTION OF THE AGENDA 1.1 July 17, 2015 Regular Meeting Agenda It was MOVED and SECONDED That the Performance and Procurement Committee adopt the agenda for its regular meeting scheduled for July 17, 2015 as circulated. CARRIED Minutes of the Regular Meeting of the GVRD Performance and Procurement Committee held on Friday, July 17, 2015 Page 1 of 8 PAP - 4

5 2. ADOPTION OF THE MINUTES 2.1 April 15, 2015 Regular Meeting Minutes 3. DELEGATIONS No items presented. It was MOVED and SECONDED That the Performance and Procurement Committee adopt the minutes of its regular meeting held April 15, 2015 as circulated. CARRIED 4. INVITED PRESENTATIONS No items presented. 5. REPORTS FROM COMMITTEE OR STAFF 5.1 Financial Performance Report as of May 2015 Report dated June 26, 2015 from Phil Trotzuk, Chief Financial Officer, presenting an update on financial performance to the end of May 2015 including a projection to the end of the fiscal year. 9:04 a.m. Councillor Meggs arrived at the meeting. In response to questions, members were informed about surplus funds, the projected 2015 solid waste tipping fee, the budget process, and establishment of and terms of reference for Metro Vancouver standing committees. It was MOVED and SECONDED That the Performance and Procurement Committee receive the report titled Financial Performance Report as of May 2015, dated June 26, 2015 for information. CARRIED 5.2 GVWD Borrowing Bylaw No. 248, 2015 Report dated July 9, 2015 from Phil Trotzuk, Chief Financial Officer, seeking GVWD Board approval to provide the long-term capital borrowing authority for the anticipated requirements of the next five years for the Greater Vancouver Water District (GVWD) and seeking Board authorization on the issuance of debenture debt for this purpose through the Greater Vancouver Regional District and the Municipal Finance Authority of British Columbia in the aggregate amount of $700 million dollars. Request of Staff Staff was requested to correct the report dated July 9, 2015, titled GVWD Borrowing Bylaw No. 248, 2015, in the recommendation, by replacing the figure Minutes of the Regular Meeting of the GVRD Performance and Procurement Committee held on Friday, July 17, 2015 Page 2 of 8 PAP - 5

6 $700,000 with $700,000,000, prior to being forwarded to the July 31, 2015 GVWD Board meeting. It was MOVED and SECONDED That the GVWD Board: a) approve a borrowing limit of $700,000,000; and b) give first, second and third readings to Greater Vancouver Water District Borrowing Bylaw Number 248, 2015 and forward to the Inspector of Municipalities for approval. CARRIED 5.3 GVRD Security Issuing Bylaw No. 1224, 2015 Regarding GVWD Borrowing Bylaw No. 248, 2015 Report dated July 10, 2015 from Phil Trotzuk, Chief Financial Officer, seeking to authorize a bylaw for the issuance of debenture debt through the Greater Vancouver Regional District and the Municipal Finance Authority of British Columbia in the amount of $700 million dollars for the Greater Vancouver Water District and to provide the long-term capital borrowing authority for the anticipated requirements of the next five years. Request of Staff Staff was directed to correct the July 10, 2015 report titled GVRD Security Issuing Bylaw No. 1224, 2015 Regarding GVWD Borrowing Bylaw No. 248, 2015, in Schedule A, by removing the term dollars, prior to going forward to the July 31, 2015 GVRD Board meeting. Members discussed removing from the Agreement reference to lawful money from the United States or United Kingdom. Request of Staff Staff was requested to: a) investigate any potential implications of removing from the Agreement (Schedule A) the reference to lawful money from the United States or United Kingdom, as outlined in the report dated July 10, 2015, titled GVRD Security Issuing Bylaw No. 1224, 2015 Regarding GVWD Borrowing Bylaw No. 248, 2015, and b) if no implications are determined, remove the reference prior to going forward to the July 31, 2015 GVWD Board meeting and correct the Agreement template. It was MOVED and SECONDED That the GVRD Board: a) give first, second and third reading to Greater Vancouver Regional District Security Issuing Bylaw No. 1224, 2015; and Minutes of the Regular Meeting of the GVRD Performance and Procurement Committee held on Friday, July 17, 2015 Page 3 of 8 PAP - 6

7 b) forward Greater Vancouver Regional District Security Issuing Bylaw No. 1224, 2015 to the Inspector of Municipalities for approval. CARRIED 9:34 a.m. Mayor Baldwin arrived at the meeting. 5.4 Amendment to Corporate Investment Policy Report dated July 6, 2015 from Dean Rear, Director, Financial Planning and Operations, Financial Services, seeking GVRD Board approval for amendments to the Corporate Investment Policy. Discussion ensued about potential implications to risk rating given credit union deposits are guaranteed by the Credit Union Deposit Insurance Corporation, not the Province directly. Request of Staff Staff was requested to report back at the July 31, 2015 GVRD Board meeting on potential implications to risk rating in relation to deposits with credit unions given guarantees are through the Credit Union Deposit Insurance Corporation, versus the Province of BC. Request of Staff Staff was directed to correct the report, in Appendix A, under Section G. Review, Oversight and Reporting, by replacing references to Finance Committee with oversight committee, prior to being forwarded to the July 31, 2015 Board meeting. It was MOVED and SECONDED That the GVRD Board approve the Corporate Investment Policy as presented in the report titled Investment Policy Update, dated July 6, CARRIED Mayor Smith voted in the negative. Concerns were expressed about overall uncertainty with respect to extending the maximum terms for federal and provincial bonds to a 30-year time frame, and the lack of flexibility of appropriating funds for such a period. It was MOVED and SECONDED That the Performance and Procurement Committee direct staff to prepare a report for the July 31, 2015 GVRD Board meeting, conveying the Committee s concerns about the proposed change to increase the maximum terms for Government of Canada and Provincial bonds from 10 to 30 years, for the Board s consideration. CARRIED Mayor Coté and Councillor Jordan voted in the negative. Councillor Reid absent at the vote. Minutes of the Regular Meeting of the GVRD Performance and Procurement Committee held on Friday, July 17, 2015 Page 4 of 8 PAP - 7

8 5.5 Continuous Improvement Actions at Metro Vancouver Report dated June 25, 2015 from Dean Rear, Director, Financial Planning and Operations, Financial Services, providing an update on Metro Vancouver s activities reviewing business processes to find and implement opportunities for improvement. Members were provided a presentation on continuous improvements at Metro Vancouver highlighting the approach, system upgrade and process review improvements, lean thinking, value-added time, lean wastes, improvements to the cell phone bill review process, and the Auditor General for Local Government Audit Topic 3. Members were informed about the review of the internal procurement process and suggested the Committee discuss policy and best practices at a future meeting. Members requested an update on staff efforts related to the invited presentation received by the Finance Committee at its July 16, 2014 meeting. Request of Staff Staff was directed to report back to the Performance and Procurement Committee on staff efforts related to the following July 16, 2014 Finance Committee resolution: That the Finance Committee direct staff to report back at a future meeting, with comments on the July 16, 2014 delegation presentation from Charley Beresford, Columbia Institute. Members were provided a live demonstration on the Questica financial software. Presentation material titled Continuous Improvement at Metro Vancouver is retained with the July 17, 2015 Performance and Procurement Committee agenda. It was MOVED and SECONDED That the Performance and Procurement Committee receive the report titled Continuous Improvement Actions at Metro Vancouver, dated June 25, 2015 for information. CARRIED Mayor McEwen absent at the vote. 5.6 AGLG Audit Topic 3: Capital Procurement Projects and Asset Management Programs Report dated July 3, 2015 from Dean Rear, Director, Financial Planning and Operations, Financial Services, providing an overview of how Metro Vancouver s business practices for capital planning and procurement compare to that examined by the Auditor General for Local Government under their Audit Topic 3. Minutes of the Regular Meeting of the GVRD Performance and Procurement Committee held on Friday, July 17, 2015 Page 5 of 8 PAP - 8

9 It was MOVED and SECONDED That the Performance and Procurement Committee receive the report titled AGLG Audit Topic 3 Capital Procurement Projects and Asset Management Programs, dated July 3, 2015 for information. CARRIED Mayor McEwen absent at the vote. 5.7 Investment Position and Returns January 1 to April 30, 2015 Report dated June 22, 2015 from Dean Rear, Director, Financial Planning and Operations, Financial Services, reporting the investment returns pursuant to the requirements of the Investment Policy. It was MOVED and SECONDED That the Performance and Procurement Committee receive the report titled Investment Position and Returns January 1 to April 30, 2015, dated June 22, 2015 for information. CARRIED Mayor McEwen absent at the vote. 5.8 Status of Water, Liquid Waste and Solid Waste Capital Expenditures to April 30, 2015 Report dated June 26, 2015 from Dean Rear, Director, Financial Planning and Operations, Financial Services, reporting on the status of the capital projects for Water, Liquid Waste and Solid Waste. It was MOVED and SECONDED That the Performance and Procurement Committee receive the report titled Status of Water, Liquid Waste and Solid Waste Capital Expenditures to April 30, 2015, dated June 26, 2015 for information. CARRIED Legal Expenditures Report dated June 5, 2015 from Phil Trotzuk, Chief Financial Officer and Ralph G. Hildebrand, General Manager, Legal and Legislative Services / Corporate Solicitor, providing information regarding the legal expenditures incurred in In response to questions members were informed about efforts to project legal costs in the annual budget and the process involved in obtaining in-house legal advice on regional matters. Members requested a comparison of in-house versus external legal costs over the last five years. Minutes of the Regular Meeting of the GVRD Performance and Procurement Committee held on Friday, July 17, 2015 Page 6 of 8 PAP - 9

10 Request of Staff Staff was requested to report back to the Performance and Procurement Committee with a comparison of historical legal costs for in-house versus external counsel for the last 5 years. It was MOVED and SECONDED That the Performance and Procurement Committee receive the report titled 2014 Legal Expenditures, dated June 5, 2015 for information. CARRIED 5.10 Tender/Contract Award Information April to May 2015 Report dated June 26, 2015 from Tracey Husoy, Division Manager, Purchasing and Risk Management, Financial Services, providing information with regards to contracts, with a total anticipated value at or in excess of $500,000 (exclusive of tax). It was MOVED and SECONDED That the Performance and Procurement Committee receive the report titled Tender/Contract Award Information April to May 2015, dated June 26, 2015 for information. CARRIED 5.11 Manager s Report Report dated July 6, 2015 from Phil Trotzuk, Chief Financial Officer, updating the Performance and Procurement Committee on the Committee s 2015 Work Plan, Municipal Finance Authority of BC bond ratings, and review of the Liquid Waste Development Cost Charges Bylaw. 6. INFORMATION ITEMS No items presented. 7. OTHER BUSINESS No items presented. It was MOVED and SECONDED That the Performance and Procurement Committee receive the report titled Manager s Report, dated July 6, 2015 for information. CARRIED 8. BUSINESS ARISING FROM DELEGATIONS No items presented. Minutes of the Regular Meeting of the GVRD Performance and Procurement Committee held on Friday, July 17, 2015 Page 7 of 8 PAP - 10

11 9. RESOLUTION TO CLOSE MEETING It was MOVED and SECONDED That the Performance and Procurement close its regular meeting schedule for July 17, 2015 pursuant to the Community Charter provisions, Section 90 (1) (i) as follows: 90 (1) A part of a meeting may be closed to the public if the subject matter being considered relates to or is one of more of the following: (i) the receipt of advice that is subject to solicitor-client privilege, including communications necessary for that purpose. CARRIED 10. ADJOURNMENT/CONCLUSION It was MOVED and SECONDED That the Performance and Procurement Committee adjourn its regular meeting of July 17, CARRIED (Time: 11:10 a.m.) Janis Knaupp, Assistant to Regional Committees Mike Clay, Chair FINAL Minutes of the Regular Meeting of the GVRD Performance and Procurement Committee held on Friday, July 17, 2015 Page 8 of 8 PAP - 11

12 5.1 To: From: Performance and Procurement Committee Dean Rear, Director - Financial Planning & Operations Date: October 23, 2015 Meeting Date: November 13, 2015 Subject: Financial Performance Report as of August 2015 RECOMMENDATION That the Performance and Procurement Committee receive the report dated October 23, 2015 titled Financial Performance Report as of August 2015 for information. PURPOSE To present the Committee with an update on financial performance to the end of August 2015 including a projection to the end of the fiscal year. BACKGROUND Board policy requires that the Performance and Procurement Committee be provided, three times per year, an update on the actual financial performance of the Metro Vancouver Districts and Metro Vancouver Housing Corporation with the report on the year-end results also sent to the Board. This is the second of such reports for Year-to-date results as presented are based on the actual results for the first eight months of the year with the main focus on the projections to year-end operations of the Metro Vancouver Districts and Metro Vancouver Housing Corporation are projected to be in an overall surplus position of $23.8 million as compared to budget. HIGHLIGHTS Overall, the Districts and Housing Corporation are projecting a surplus position of approximately $23.8 million for the 2015 fiscal year. The overall projected surplus is mainly due to increased revenues in water, the deferral of some operating and capital projects, some staff vacancies, savings in miscellaneous operating costs and slightly lower debt service costs in the utilities. More detailed information by district and / or function is included in Attachment 1. The breakdown of the overall $23.8 million projected 2015 surplus, by district/function is as follows: Regional District - $2.0 million Water District - $11.6 million Liquid Waste - $8.6 million Solid Waste - $1.1 million Housing - $0.5 million PAP - 12

13 The projected operating surplus in the Regional District can be mainly attributed to the delay in some Regional Parks project initiatives, fewer Board and Committee meetings than planned, labour underspends due to staff vacancies as recruitment continues and some savings in miscellaneous operating costs. The Water District s projected surplus is largely the result of projected revenue from water sales in excess of budget estimates along with expenditure savings in system operating contingency, labour underspends due to staff vacancies and the delay and/or deferral of some projects. In addition, there are savings in debt service costs due to the deferral of some capital projects which are debt financed. The Liquid Waste projected surplus in 2015 is due to delay of some right-of-way purchases and security enhancement projects, deferral of minor capital projects, debt savings due to delay of some capital projects which are debt financed. In addition, some projected savings in miscellaneous operating costs along with labour underspends due to several staff vacancies are expected. Solid Waste is expected to be close to break even in Higher than expected waste flows, due to less than anticipated waste migration, combined with management of expenditures has the function projected at slightly better than budget. The Housing Corporation has a surplus net income position primarily due to higher than projected rental revenue. ALTERNATIVES This is an information report. No alternatives are presented. FINANCIAL IMPLICATIONS This report provides information on projected results for 2015 operations which, at this time, shows an overall year-end surplus of $23.8 million. Annual surpluses remain within their individual district/function and are available in future years to either avoid debt or pay for projects thereby reducing funding requirements. Should circumstances change and this projected surplus increase or decrease, then more or less would be available to reduce future funding requirements. SUMMARY / CONCLUSION The 2015 projected financial results for the Metro Vancouver entities and functions are favourable to budget. Attachments and References: Attachment Financial Performance as of August PAP - 13

14 October 23, 2015 ATTACHMENT 1 Greater Vancouver Districts 2015 Financial Performance As of August 2015 PAP - 14

15 Table of Contents Statement of Surplus/(Deficit) District Summaries Regional District Summary Water District Summary... 7 Sewerage & Drainage District Summaries Liquid Waste... 8 Solid Waste... 8 Housing Corporation Summary... 9 Corporate Programs Financial Indicators PAP - 15

16 Page 1 Greater Vancouver Districts Statement of Surplus (Deficit) For the period ending August 31, 2015 DISTRICT / CORPORATION Year to Date - August 31st Budget Actuals Variance Regional District Revenue 60,470,546 58,799,847 (1,670,699) Expenditure 44,032,459 39,887,954 4,144,505 Surplus (Deficit) 16,438,087 18,911,893 2,473,806 Water District Revenue 170,791, ,067,726 6,276,245 Expenditure 178,393, ,254,341 8,139,545 Surplus (Deficit) (7,602,405) 6,813,385 14,415,790 Sewerage and Drainage District Liquid Waste Revenue 202,196, ,624,936 (1,571,610) Expenditure 151,254, ,655,892 8,598,625 Surplus (Deficit) 50,942,029 57,969,044 7,027,015 Solid Waste Revenue 59,387,644 60,772,031 1,384,387 Expenditure 62,033,955 53,369,968 8,663,987 Surplus (Deficit) (2,646,311) 7,402,063 10,048,374 MV Housing Corporation Revenue 26,644,858 26,948, ,340 Expenditure 25,849,963 24,625,479 1,224,484 Surplus (Deficit) 794,895 2,322,719 1,527,824 Consolidated Surplus (Deficit) 57,926,295 93,419,104 35,492,809 * 2015 Budget includes reserve and surplus carry-forward applications as approved by the Board. PAP - 16

17 Page 2 Greater Vancouver Districts Statement of Surplus (Deficit) For the period ending August 31, 2015 DISTRICT / CORPORATION 2015 Year End Projection Projected Annual* Year End Year End % Variance Budget Forecast Variance to Budget Regional District Revenue 66,144,110 66,446, , % Expenditure 66,144,110 64,470,392 1,673, % Surplus (Deficit) - 1,976,214 1,976,214 - Water District Revenue 248,166, ,743,439 3,576, % Expenditure 248,166, ,158,756 8,008, % Surplus (Deficit) - 11,584,683 11,584,683 - Sewerage and Drainage District Liquid Waste Revenue 212,755, ,680,920 (1,074,295) (0.5%) Expenditure 212,755, ,097,913 9,657, % Surplus (Deficit) - 8,583,007 8,583,007 - Solid Waste Revenue 93,626,525 94,421, , % Expenditure 93,626,525 93,261, , % Surplus (Deficit) - 1,160,129 1,160,129 - MV Housing Corporation Revenue 39,942,954 40,304, , % Expenditure 39,942,954 39,794, , % Surplus (Deficit) - 509, ,100 - Consolidated Surplus (Deficit) - 23,813,134 23,813,134 - * 2015 Budget includes reserve and surplus carry-forward applications as approved by the Board. PAP - 17

18 Greater Vancouver Districts Regional Function's Surplus (Deficit) For the period ended August 31, 2015 Page 3 Year to Date - August 31st Budget Actuals Variance FUNCTION 911 Emergency Telephone Revenue 4,036,446 4,013,772 (22,674) Expenditure 3,011,064 2,975,020 36,044 Surplus (Deficit) 1,025,382 1,038,753 13,371 Air Quality Revenue 5,317,727 5,091,840 (225,887) Expenditure 5,465,630 4,916, ,665 Surplus (Deficit) (147,903) 174, ,778 General Government Revenue 12,653,399 10,872,815 (1,780,584) Expenditure 8,900,262 7,182,891 1,717,371 Surplus (Deficit) 3,753,137 3,689,924 (63,213) Labour Relations Revenue 2,058,610 2,098,832 40,222 Expenditure 1,446,557 1,220, ,937 Surplus (Deficit) 612, , ,160 Regional GPS Revenue 349, ,741 29,520 Expenditure 505, ,848 61,226 Surplus (Deficit) (155,852) (65,106) 90,746 Regional Parks Revenue 32,535,024 32,690, ,859 Expenditure 22,377,844 21,216,938 1,160,906 Surplus (Deficit) 10,157,180 11,473,945 1,316,765 Regional Planning Revenue 2,901,464 2,901,458 (6) Expenditure 1,937,991 1,605, ,014 Surplus (Deficit) 963,473 1,295, ,008 Electoral Area Revenue 370, , ,845 Expenditure 221, ,556 50,261 Surplus (Deficit) 149, , ,106 Sasamat Volunteer Fire Dept. Revenue 247, ,678 5,006 Expenditure 166, ,140 12,081 Surplus (Deficit) 81,451 98,539 17,088 Regional Surplus (Deficit) 16,438,087 18,911,893 2,473,806 * 2015 Budget includes reserve and surplus carry-forward applications as approved by the Board. PAP - 18

19 Greater Vancouver Districts Regional Function's Surplus (Deficit) For the period ended August 31, 2015 Page Year End Projection Projected % Annual* Year End Year End Variance Budget Forecast Variance to Budget FUNCTION 911 Emergency Telephone Revenue 4,036,446 4,034,062 (2,384) (0.1%) Expenditure 4,036,446 4,018,446 18, % Surplus (Deficit) - 15,616 15, % Air Quality Revenue 8,573,308 8,653,943 80, % Expenditure 8,573,308 8,240, , % Surplus (Deficit) - 413, , % General Government Revenue 13,451,932 13,451, % Expenditure 13,451,932 13,206, , % Surplus (Deficit) - 245, , % Labour Relations Revenue 2,223,995 2,251,224 27, % Expenditure 2,223,995 1,986, , % Surplus (Deficit) - 264, , % Regional GPS Revenue 757, ,741 21, % Expenditure 757, , % Surplus (Deficit) - 21,190 21, % Regional Parks Revenue 33,360,851 33,466, , % Expenditure 33,360,851 32,832, , % Surplus (Deficit) - 634, , % Regional Planning Revenue 3,000,989 3,000, % Expenditure 3,000,989 2,738, , % Surplus (Deficit) - 262, , % Electoral Area Revenue 489, ,612 64, % Expenditure 489, ,702 50, % Surplus (Deficit) - 114, , % Sasamat Volunteer Fire Dept. Revenue 249, ,336 5, % Expenditure 249, , % Surplus (Deficit) - 5,000 5, % Regional Surplus (Deficit) - 1,976,214 1,976,214 (0) * 2015 Budget includes reserve and surplus carry-forward applications as approved by the Board. PAP - 19

20 Page 5 Greater Vancouver Districts 2015 Financial Performance District Summaries Greater Vancouver Regional District The Regional District at the end of August 2015 is in a surplus position of approximately $2.5 million. This surplus is due to the timing of actual expenditures being slower than anticipated primarily in Air Quality, Labour Relations, Regional Parks, Regional Planning, and Electoral Areas. At this time, it is expected that the majority of the delayed expenditures will be incurred by year-end and the surplus will be reduced just under $2 million. This would be due to staff vacancies, savings in Board and Committee meeting costs and delays in some of the Regional Park function s planned projects. 911 Emergency Telephone E911 is in a surplus position of $13,000 due primarily to savings in E-Comm contract fees and timing of certain expenditures. E911 is projecting a surplus of $16,000 by the end of the year as a result of contract fee savings. Air Quality At the end of August, Air Quality is in a surplus position of $323,000 primarily due to staff vacancies and a late start in some consulting studies. The function is expected to be in a surplus position of $414,000 by year end due to staff vacancies and some additional Non Road Diesel Engine revenues. General Government General Government is in a deficit position of approximately $63,000 at the end of August due to the timing of projects and related funding. The Homelessness Partnering Strategy (HPS) program is currently in a deficit position of $924,000 due to the timing of projects and related funding. The HPS program is fully funded by the federal government and is expected on be on budget at year end. While the majority of the initiatives are expected to be completed by year end, General Government is projecting a surplus to $245,000 for 2015 due primarily to savings in Board and Committee meeting costs. Labour Relations Labour Relations is in a surplus position of close to $266,000 at the end of August due primarily to staff vacancies, and this is expected to largely carry through to year end. Regional Global Positioning System (GPS) The GPS forecast surplus position is approximately $21,000 due higher than expected subscriptions. PAP - 20

21 Page 6 Regional Parks Regional Parks is in a surplus position at the end of August of approximately $1,320,000. The main contributing factors to the surplus include staff vacancies, the deferral of some asset purchases until later in the year and earning more revenue than expected. Revenue was greater than anticipated due to the exceptional summer weather, a new log booming contract and an unexpected lease at Brunette Fraser Greenway. At this time, while it is expected that most delayed expenditures will be incurred by year end and some of the vacancies will be filled, Regional Parks is still expected to be in a surplus position of $635,000 for the year. Regional Planning As of the end of August, Regional Planning is in a surplus position of $332,000 due to staff vacancies. The function is expected to be in a surplus position of $262,000 at year end. Electoral Areas Electoral Areas is currently in a surplus position of $178,000 due to a staff vacancy early in the year and the unexpected receipt of a Provincial grant. Electoral Areas is expected to be in a surplus position of around $115,000 by year end due to labour savings from the staff vacancy and the grant. Sasamat Volunteer Fire Department Sasamat Volunteer Fire Department is currently in a surplus position at the end of August of $17,000 as a result of timing of actual expenditures being slower than budget. As these expenditures are expected to be incurred by year end, the function is projected to be close to budget. PAP - 21

22 Page 7 Greater Vancouver Water District The Water District is in a surplus position of approximately $14.4 million as at the end of August. By year end, this surplus is expected to decrease to $11.6 million. Water District revenues are currently $6.3 million in excess of budget at the end of August. Water consumption levels were approximately 3.3% greater than budget to the end of August. Revised estimates indicate a projected revenue surplus of $3.6 million overall for The projected revenues are the result of higher water demands due to an unseasonably warm, dry summer offset by some reductions in consumption due to Stage 2 and 3 restrictions. Water District expenditures are currently $8.1 million below budget due primarily to the deferral and delays of some projects due to the reallocation of resources to higher priority work and some operating staff vacancies, and delays in commissioning of new capital facilities. This under expenditure to-date includes current savings in debt service costs of approximately $0.5 million due to the deferral of some capital projects which are debt financed. While it is expected some deferred expenditures will be incurred prior to year end, the vast majority of the savings will continue resulting in an expenditure surplus of approximately $8 million for Included in the projection are expected debt service cost savings by year end of around $0.9 million. PAP - 22

23 Page 8 Greater Vancouver Sewerage and Drainage District Liquid Waste Liquid Waste is anticipating a surplus of approximately $8.6 million primarily due to Operational and Debt Service Costs that are less than budgeted. The projected surplus can be split as follows: FSA $4.1 million, LIWSA $0.5 million, VSA $2.9 million, NSSA $0.9 million and Drainage for $0.2 million. Revenues are expected to be under budget by approximately $1.1 million as there will be less than expected funding from reserves as some right of way purchases and security enhancement projects have been delayed until There is an offsetting savings in the operating program expenditures. Operational costs are expected to be $6.8 million under budget due to the above-mentioned rightof-way purchase and security enhancement projects, delay in minor capital costs due to unexpected complexities in the engineering and construction work, reduced costs associated with maintenance activities, deferral of operational and consulting projects, labour savings resulting from some unfilled positions in several operating programs, and the expected savings from the operating contingency and other operating programs. The debt program is expecting a surplus of approximately $2.8 million primarily due to delayed capital expenditures and more pay as you go funding contributions. Solid Waste Overall for 2015, the Solid Waste function is projecting to have approximately $1.1 million surplus. Revenues are projected to be $0.8 million above budget at yearend. Tipping fee revenues are projected to be close to $4.9 million above budget due to an increase in waste flows into the system in addition to some unanticipated miscellaneous revenue of approximately $0.4 million offset by less reserve use ($4.5 million) as a result of the function projecting better results than was planned. Expenditures are also forecast to be lower than budget by approximately $0.4 million. The function s expenditures are being managed to accommodate the higher than projected waste flow. PAP - 23

24 Page 9 Metro Vancouver Housing Corporation (MVHC) As at August 31, 2015, the MVHC is in a surplus position of approximately $1.5 million. This is typical at this point in the year, as the timing of many operating expenses is more heavily weighted in the latter part of the year. As the delayed expenditures are incurred, the surplus is expected to decline to approximately $509,000 by year-end. Any surplus from operations is allocated to reserves each year, providing an important and essential source of funding for the long-term capital plan. Revenues for the first eight months are $303,000 ahead of budget. This is mainly due to higher than budgeted rent increases with some tenant rent subsidies received in advance. The impact of the rent increases will result in a year-end projected revenue surplus of approximately $361,000. Expenditures through August are approximately $1.2 million less than budget largely due to planned maintenance expenditures that are weighted more heavily in the latter part of the year as well as some labour vacancies that had been filled. As the delayed expenditures are incurred, the overall actual expenditures are expected to be approximately $150,000 under budget by year-end. The 2015 capital program included an annual budget of $9.5 million for capital replacement expenditures and development. At August 31, approximately $1.8 million was spent for capital replacement and project to spend an additional $3.2 million by yearend. Capital replacement projects for Regal Place Hotel and Kingston Gardens totaling $1.7 million been deferred until For the development program, $1.8 million was spent for the first eight months, it is anticipated that $2.3 million of the $2.8 million budgeted will be spent in MVHC expects to delay the construction and related consulting costs for Heather Place to The 2015 MVHC capital and development capital expenditures are funded from reserves and have no impact on the operations. PAP - 24

25 Page 10 Corporate Programs Overall, Corporate Programs are in a surplus position of approximately $1.7 million to the end of August. This surplus is largely due to the timing of actual expenditures being slower than that anticipated and staff vacancies from turnover and delays in recruiting. As these delayed expenditures are expected to be incurred during the year, the overall projected surplus for Corporate Programs will be approximately $1.1 million due primarily to staff vacancies. Corporate Planning Corporate Planning is currently $132,000 under budget and is forecast to be under budget by approximately $90,000 at year-end as a result of labour underspends. External Relations External Relations is currently in a surplus position of approximately $919,000 due mainly to work on communication campaigns and some outreach initiatives to occur later in the year, and vacant positions that were only staffed the latter part of the year. The majority of this work is expected to be complete by year-end, leaving External Relations with a $140,000 surplus. Human Resources The Human Resources department is currently under budget by close to $373,000 due to several senior staff vacancies and delays in some recruitment initiatives. By year-end, Human Resources is projected to be $50,000 under budget. Financial Services The Financial Services department is in a surplus position of approximately $697,000 to date due primarily to from staff vacancies currently being recruited for, timing of expenditures being different from budget and receipt of a rebate from the corporate purchase card program. The surplus for Financial Services is projected to be approximately $577,000 for 2015 due primarily to some staff vacancies and the unanticipated receipt of the corporate purchase card program rebate. Legal and Legislative Services Legal and Legislative Services is currently in a surplus position of approximately $264,000 to date due to the timing of external legal services being different than anticipated in the budget and delayed expenditures in Information Management. The surplus for Legal and Legislative Services is projected to be approximately $219,000 in 2015 due primarily to underspends for legal and salaries. PAP - 25

26 Page 11 Corporate Services Corporate Services is currently in a deficit position of approximately $832,000 through August Building Operations, ETRP, and Corporate Safety, Security and Emergency Management services are currently in a surplus position of approximately $80,000 primarily due to timing of expenditures for head office maintenance and renovation projects to be incurred in the latter part of the year, lower contract price for contracted security services, and timing of safety training initiatives. Information Technology (IT) services are currently in a deficit position of $912,000. This is due to the purchase of new software occurring sooner than expected, and the timing of desktop purchases. IT is projected to be on budget for By the end of year, Corporate Services is expecting a deficit of $23,000. This is primarily due to the elevator replacement project which is expecting a deficit of $59,000 for additional costs related to building code compliance, as well as a reduction in tenant rent forecasted at $34,000 for the year. These are mitigated by forecasted savings of $70,000 related to building debt, vacancies and contract security services in Corporate Safety, Security and Emergency Management services. PAP - 26

27 Greater Vancouver Districts Financial Indicators Page 12 These ratios are intended to help indicate the Greater Vancouver District s financial ability to continue to provide services to the region on a sustainable basis. This involves evaluating a number of factors, including the ongoing ability to ensure revenues meet expenditures, ability to meet debt obligations, and the flexibility to address unexpected contingencies. Forecast ratios can help to identify potential financial problems in advance. 1) Municipal Property Tax and Levies / Total Revenue This ratio is a measure of the diversification of revenues. A high ratio indicates a reliance on property tax related levies / fees. A low ratio illustrates a greater range of revenues which is seen as beneficial. However, other revenue streams may not be sustainable or fluctuate more than tax requisitions Actual 2013 Actual 2014 Actual 2015 Budget 2015 Actual Total Property tax/levies $218,931, % $226,403, % $232,429, % $239,867, % $239,867, % Total Revenue** $631,850,995 $644,494,910 $653,970,533 $660,635,674 $664,596,776 The GVRD has a reasonably well diversified revenue base. Some revenue streams such as Water Sales and Solid Waste User Fees are subject to fluctuations during the year. 2) i) Debt Service Costs/ Total Revenue This is the percentage of revenue committed to payment of interest and principal on temporary and long-term debt for the regional, sewer, solid waste and water operations. A high percentage indicates greater use of revenues for the repayment of debt, and less ability to adjust to unplanned events and changing circumstances Actual 2013 Actual 2014 Actual 2015 Budget 2015 Actual Debt Service Costs $134,582, % $131,044, % $122,877, % $127,669, % $123,357, % Total Revenue** $631,850,995 $644,494,910 $653,970,533 $660,635,674 $664,596,776 ** 2015 Budget includes reserve and surplus carry-forward applications as approved by the Board. PAP - 27

28 Page 13 2) ii) Interest Costs/ Total Revenue This is the percentage of revenue committed to payment of interest on temporary and long-term debt for the regional, sewer, solid waste and water operations. A high percentage indicates greater use of revenues for servicing interest on outstanding debt, and less ability to adjust to unplanned events and changing circumstances Actual 2013 Actual 2014 Actual 2015 Budget 2015 Actual Interest Costs $60,955, % $54,875, % $49,744, % $55,527, % $48,702, % Total Revenue** $631,850,995 $644,494,910 $653,970,533 $660,635,674 $664,596,776 Both debt service costs and interest costs as a percentage of revenue are down compared to current budget (and prior years with the exception of 2014) indicating less of revenues are required to service outstanding debt (principal and interest) and more is available to fund priority projects. 3) Operating Reserves/ Total Revenues Reserve levels are an indicator of financial strength since they provide the ability to meet unforeseen expenditures or revenue losses Actual 2013 Actual 2014 Actual 2015 Budget 2015 Actual Operating Reserves $93,564, % $74,092, % $77,547, % $46,635, % $68,691, % Total Revenue** $631,850,995 $644,494,910 $653,970,533 $660,635,674 $664,596,776 Projected operating reserve levels are slightly higher than that projected in the current budget but are down from the prior years reserve levels. The level of operating reserves remains adequate to meet potential unexpected contingencies. ** 2015 Budget includes reserve and surplus carry-forward applications as approved by the Board. PAP - 28

29 Page 14 4) Total Municipal Taxes, Water, Sewer and Solid Waste Charges / Per Capita This indicator is a representation of the per capita cost impact of the regions tax payer supported services. These costs are passed on to the tax payer through our member municipalities. The 2015 population is assumed to increase at a rate of 1.5% over Actual Per Capita 2013 Actual Per Capita 2014 Actual Per Capita 2015 Budget Per Capita 2015 Actual Per Capita Total Tax Revenue *** $543,413,853 $225 $548,156,267 $224 $559,403,266 $226 $559,498,217 $223 $567,465,574 $226 Total Population **** 2,410,000 2,442,604 2,474,123 2,511,235 2,511,235 The projected increase in the actuals over the budget for 2015 is primarily a result of an increase in projected revenues for Water Sales and Solid Waste User Fees. ** 2015 Budget includes budgeted reserve, surplus carry-forward items or other additional reserve applications as approved by the Board. *** Total Tax Revenue defined as Regional District tax requisition, Water Sales, Sewer & Drainage Levy and Solid Waste User Fees. **** Based on Demographic Analysis Section, BC Stats, Ministry of Technology, Innovation and Citizens Services, Government of British Columbia, December PAP - 29

30 5.2 To: From: Performance and Procurement Committee Dean Rear, Director - Financial Planning and Operations Date: October 13, 2015 Meeting Date: November 13, 2015 Subject: Investment Position and Returns May 1 to August 31, 2015 RECOMMENDATION That the Performance and Procurement Committee receive the report titled Investment Position and Returns May 1 to August 31, 2015, dated October 13, 2015 for information. PURPOSE To report the investment returns pursuant to the requirements of the Investment Policy. BACKGROUND Policy requires that investment returns be reported to the Committee three times per year. This is the second report for Regular cash demands as well as our conservative investment strategy require that we maintain a high degree of liquidity in our investment portfolios. Our short term investments, those with terms of less than one year and the highest degree of liquidity, are used to meet our working capital requirements. Short term investments normally include Canada Treasury Bills, Provincial debt instruments, Bankers Acceptances and Credit Union Term Deposits. Long term investments initially have terms greater than one year. These investments normally include Canada, Provincial, and Canadian Bank bonds as well as Credit Union Term Deposits greater than one year. These are generally less liquid than our short term investments and are held for a higher overall rate of return and for funding requirements of a longer term perspective. Long term investments include those for the Cultural Reserve Fund, where revenues from these investments go to fund Metro Vancouver s annual contribution to cultural activities. PAP - 30

31 OVERALL INVESTMENT RETURNS Table 1 Benchmarks Our investment policy requires that we compare our actual performance indicated in the above table against specific benchmark returns. The selected benchmarks are consistent from period to period and are intended to be indicative of and comparable to each of our portfolios on an ongoing basis. The short term benchmarks are taken directly from the Bank of Canada and the MFA s website. Rates on the Bank of Canada s website are expressed as annual rates which need to be adjusted for our four month reporting period. They are therefore divided by three for an estimate over our four month period. The performance figures on the MFA Money Market Fund are taken directly from the MFA s website and are not adjusted. We use the MFA s Intermediate Fund and Bond Fund as benchmarks for both the Long Term Portfolio and the Cultural Reserve Fund. These two benchmarks must be considered together as the combination thereof more accurately reflects the term of our Long Term Portfolio than either of the two funds individually. However, in the daily operation of their funds the MFA faces many liquidity demands that we do not. Allowing for these cash demands can affect portfolio yield considerably. Short Term Investment Performance At August 31, 2015 our short term portfolio (terms of less than one year at the time of investment) held a total of $166.0 million dollars at historic cost and represented approximately 28.5% of our total investments. Looking at the days to maturity for all of our investments (combined short and long), those investments that will mature in the coming year account for approximately 50.9% of our total investments. Table 2 details performance during the period compared to our benchmarks. PAP - 31

32 Table 2 Our short term portfolio performance exceeded all of our benchmarks in the period. A listing of our short term investments as at August 31, 2015 can be found on Schedule 1 on this report with expected maturities illustrated in the charts included in Schedule 4. The annualized estimate shown in Table 2 is calculated for comparison to benchmark. As shown in Schedule 1, the weighted average yield of the holdings in our Short Term Portfolio as at August 31 was 1.50%, a decrease of 26 basis points from 1.76% reported as at April 30. The decrease in yield was due to lower rates offered on short term products, following the Bank of Canada s second rate cut this year in July. Long Term Investment Performance At August 31, 2015 our main Long Term Portfolio (terms greater than one year at the time of investment) held a total of $414.3 million (at cost) representing 71.1% of our total investments. This portfolio had a weighted average maturity of 2.7 years and a weighted average yield of 2.48% at August 31, comparable to the 2.47% reported as at April 30. A detailed listing of long term investments held on August 31, 2015 is located on Schedule 2 following this report with expected maturities illustrated in the charts included in Schedule 4. The Cultural Reserve Fund held $2.4 million (at cost) in fixed income investments (<1% of total investments) and had a weighted average yield to maturity of 5.1 years and a weighted average yield of 2.64%. A detailed listing of investments held in this portfolio is located on Schedule 3. Table 3 details performance during the period compared to our benchmarks. PAP - 32

33 Table 3 The performance of both of our long term portfolios exceeded the returns of the MFA Intermediate Fund while our Cultural Reserve portfolio also exceeded the returns of the MFA Bond Fund. The reported performance of the MFA Bond Fund exceeded our Long Term portfolio results due to mark to market adjustments showing exceptional yields in May and July. The current average term on the MFA Intermediate Fund is 1.0 year while the MFA Bond Fund average term is 2.9 years compared to the average term on our Long Term portfolio of 2.7 years. Like the MFA Intermediate Fund, our portfolio remains focused on corporate securities as they offer an attractive yield advantage over the government issued securities. Funds such as the MFA s require a re-evaluation (mark-to-market) on a regular basis so that pricing reflects the current market value for those buying into the fund. Reduced yield levels over the four months period resulted in mark-to-market increases for the MFA Bond Fund in May and July, with the overall effect being very positive periodic returns, and higher than the results in our Long Term portfolio. As our portfolios operate only for our organization, the fluctuations in market value by re-valuing the portfolios each period can be misleading as the effect of these changes on the stated returns are clearly unrealized. As a result we do not mark-to market our two long term portfolios. Going Forward The global capital market experienced significant volatility over the summer months, with developments in Greece, falling commodity prices, and signs of weakness from the emerging markets and China including their stock market volatility and currency devaluation. Many of the same themes continued through September. The US Federal Reserve held their rates steady due to the continued concerns over global growth and market developments. However, expectations are still for an increase in rates in the near future, most likely in early PAP - 33

34 The Bank of Canada cut its target overnight rate in July by 25bps to 0.50% in response to the slowing economic growth but held off on further cuts in September and October. Canada was faced with a technical recession in the first half of the year as GDP contracted for two consecutive quarters, from January through May. However, it was reported that GDP grew in June and the Bank of Canada expects growth in the third quarter as the exchange rate-sensitive exports gain momentum from the weaker Canadian dollar and a stronger U.S. economy. At the end of August 2015, the average yield on a 3 5 year Government of Canada Bond was 0.53% compared to 1.35% last August, a decrease of more than 80 basis points. The yields moved slightly higher in September as the market expectations of another rate cut declined but continue to face downward pressures due to ongoing concerns over global growth. In this difficult interest rate environment, we have improved the relative yield on our portfolio through periodic adjustments made to our investment policy and our approach to laddering the portfolio. This is illustrated in the chart below which contrast our combined portfolio results with the average yield on 1 3 year Government of Canada Bonds. Longer term instruments still offer a marginal advantage over short term yields and staff continue to look for opportunities to invest longer term when we have material cash to do so. We remain cautious as with the decline and volatility in the yield curve, even out to a 10 year term, most products have yields of less than 3%. PAP - 34

35 We continue to pursue the highest overall yield for our portfolio while maintaining safety of capital and liquidity as the key priorities. ALTERNATIVES This is an information report. No alternatives are presented. FINANCIAL IMPLICATIONS Overall portfolio returns remain modest, a reflection of the priorities of preservation of capital and maintaining the necessary liquidity to meet operational requirements. SUMMARY / CONCLUSION Overall, investment performance for the period, while modest, met expectations, exceeding the returns on most of our benchmarks. Our portfolios hold quality investments and are reasonably positioned given our market expectations. Attachments: Schedule 1 Short Term Investments Schedule 2 Long Term Investments Schedule 3 Cultural Reserve Investment Schedule 4 Investment Maturity Charts PAP - 35

36 METRO VANCOUVER SHORT TERM INVESTMENTS AS AT AUGUST 31, 2015 CONTRACT NUMBER AND SECURITY DESCRIPTION MATURITY AMOUNT COST DATE PURCHASED MATURITY DATE Schedule 1 DAYS TO MATU RITY YIELD COUPON BLUESHORE FINANCIAL CREDIT UNION BLUESHORE TD 1.05% SEP3/15 2,500,000 2,500,000 Jul, Sep, BLUESHORE TD 1.10% OCT1/15 2,500,000 2,500,000 Aug, Oct, BLUESHORE TD 1.10% JAN14/16 2,500,000 2,500,000 Aug, Jan, BLUESHORE TD 1.97% MAY26/16 5,000,000 5,000,000 Jun, May, BLUESHORE TD 1.97% JUN30/16 2,500,000 2,500,000 Jul, Jun, BLUESHORE TD 1.92% JULY14/16 5,000,000 5,000,000 Jul, Jul, ,000,000 20,000, % BANK OF NOVA SCOTIA BNS 3.610% FEB22/ ,000,000 4,074,800 May, Feb, ,000,000 4,074, % CANADIAN WESTERN BANK CWB 2.378% SEPT14/ ,000,000 5,038,450 Sep, Sep, CWB BDN 1.50% OCT8/15 2,000,000 1,970,520 Oct, Oct, CWB BDN 0.85% NOV17/15 1,600,000 1,596,624 Aug, Nov, CWB BDN 1.55% NOV24/15 3,000,000 2,954,340 Nov, Nov, CWB BDN 1.60% JAN5/16 2,500,000 2,460,725 Jan, Jan, CWB BDN 0.90% JAN5/16 5,000,000 4,981,950 Aug, Jan, CWB BDN 0.90% JAN5/16 5,000,000 4,982,800 Aug, Jan, CWB BDN 0.92% FEB18/16 5,400,000 5,375,322 Aug, Feb, ,500,000 29,360, % COAST CAPITAL CREDIT UNION COAST CAP TD 2.0% SEPT3/15 3,000,000 3,000,000 Sep, Sep, COAST CAP TD 1.90% OCT1/15 2,000,000 2,000,000 Oct, Oct, COAST CAP TD 1.90% OCT5/2015 2,500,000 2,500,000 Apr, Oct, COAST CAP 2.0% OCT15/15 2,500,000 2,500,000 Nov, Oct, COAST CAP TD 1.95% OCT29/15 2,500,000 2,500,000 Nov, Oct, COAST CAP TD 1.95% DEC 17/15 3,000,000 3,000,000 Jan, Dec, COAST CAP TD 1.80% FEB11/16 2,500,000 2,500,000 Mar, Feb, ,000,000 18,000, % FIRST WEST CREDIT UNION FIRST WEST 1.45% DEC17/15 5,000,000 5,000,000 Aug, Dec, FIRST WEST CASHABLE (SEPT14/15) 1.40% FE 10,000,000 10,000,000 Aug, Feb, FIRST WEST CASHABLE (SEPT14/15) 1.40% MA 10,000,000 10,000,000 Aug, May, ,000,000 25,000, % NATIONAL BANK NATIONAL 3.58 APR26/ ,000,000 5,106,600 Jun, Apr, ,000,000 5,106, % PROSPERA CREDIT UNION PROSPERA TD 1.40% OCT15/15 10,000,000 10,000,000 Aug, Oct, PROSPERA TD 1.45% NOV12/15 7,000,000 7,000,000 Aug, Nov, PROSPERA TD 1.50% DEC10/15 3,000,000 3,000,000 Aug, Dec, PROSPERA CASHABLE (SEP14/15) 1.35% AUG1 5,000,000 5,000,000 Aug, Aug, ,000,000 25,000, % PAP - 36

37 METRO VANCOUVER SHORT TERM INVESTMENTS AS AT AUGUST 31, 2015 Schedule 1 (cont'd) CONTRACT NUMBER AND SECURITY DESCRIPTION MATURITY AMOUNT COST DATE PURCHASED MATURITY DATE DAYS TO MATU RITY YIELD COUPON VANCITY SAVINGS CREDIT UNION VANCITY TD 1.64% OCT5/15 2,500,000 2,500,000 Apr, Oct, VANCITY TD 1.68% OCT22/15 2,500,000 2,500,000 Apr, Oct, VANCITY TD 1.68% NOV19/15 2,500,000 2,500,000 Apr, Nov, VANCITY TD 1.70% JAN7/16 2,500,000 2,500,000 Apr, Jan, VANCITY TD 1.75% JAN14/16 2,500,000 2,500,000 Mar, Jan, VANCITY TD 1.70% JAN21/16 2,500,000 2,500,000 Apr, Jan, VANCITY TD 1.75% JAN28/16 2,000,000 2,000,000 Mar, Jan, VANCITY TD 1.80% APR7/16 5,000,000 5,000,000 Apr, Apr, VANCITY (CASHABLE NOV26/15) 1.50% AUG26/1 3,000,000 3,000,000 Aug, Aug, ,000,000 25,000, % WESTMINSTER SAVINGS CREDIT UNION WSCU 1.90% SEPT3/15 2,000,000 2,000,000 Sep, Sep, WSCU TD 1.57% OCT8/15 2,500,000 2,500,000 Jul, Oct, WSCU TD 1.90% OCT 29/15 2,500,000 2,500,000 Nov, Oct, WSCU TD 1.62% APR11/16 2,500,000 2,500,000 Jul, Apr, WSCU TD 1.66% MAY12/16 2,500,000 2,500,000 Jul, May, WSCU TD CASHABLE (AUG31/15) JUL28/16 2,500,000 2,500,000 Jul, Jul, ,500,000 14,500, % TOTALS $ 166,000,000 $ 166,042,131 AVERAGES % Mean Average Term: 133 Days Mean Average Yield: 1.55% Weighted Average Term: 146 Days Weighted Average Yield: 1.50% PAP - 37

38 METRO VANCOUVER LONG TERM INVESTMENTS AS AT AUGUST 31, 2015 Schedule 2 CONTRACT NUMBER AND SECURITY DESCRIPTION MATURITY AMOUNT COST DATE PURCHASED MATURITY DATE DAYS TO MATURITY YIELD COUPON BANK OF MONTREAL BMO 1.89% OCT 5/ ,000,000 5,000,600 Sep, Oct, BMO 3.103% MAR 10/ ,000,000 3,111,450 Jul, Mar, BMO 3.49 JUNE 10/ ,000,000 5,194,700 Aug, Jun, BMO FRN APR 10/17 3,000,000 3,000,000 Apr, Apr, BMO 2.24% DEC 11/ ,000,000 1,977,340 Jul, Dec, BMO 3.21% SEPT 13/ ,000,000 3,002,700 Sep, Sep, BMO 3.210% SEPT13/ ,000,000 5,203,900 Aug, Sep, BMO 2.84% JUNE 4/ ,000,000 5,079,750 Jun, Jun, BMO 3.40% APR23/ ,000,000 3,151,500 Aug, Apr, ,000,000 34,721, % BLUESHORE FINANCIAL CREDIT UNION BLUESHORE TD 2.25% JUL6/17 2,500,000 2,500,000 Aug, Jul, BLUESHORE TD 2.25% JUL13/17 2,500,000 2,500,000 Aug, Jul, ,000,000 5,000, % BANK OF NOVA SCOTIA BNS 2.10% NOV 8/ , ,892 Nov, Nov, BNS 2.74% JAN 12/ ,000,000 5,092,000 Aug, Dec, BNS 2.37% JAN 11/ ,000,000 4,910,000 Aug, Jan, BNS 2.462% MARCH 14/ ,500,000 2,500,000 Mar, Mar, BNS 2.462% MAR14/ ,000,000 3,030,420 Aug, Mar, BNS 3.27% JAN 11/ ,000,000 3,135,300 Aug, Jan, BNS 2.873% JUN4/ ,000,000 4,065,200 Aug, Jun, ,400,000 23,632, % CANADIAN WESTERN BANK CWB 2.378% SEPT 14/ ,000,000 10,080,000 Aug, Sep, CWB JAN18/ ,000,000 3,074,310 Jan, Jan, CWB JUN26/ ,500,000 2,519,425 Feb, Jun, ,500,000 15,673,735 CIBC CIBC 3.4% JAN 14/ ,809,000 1,872,442 Aug, Jan, CIBC 2.65% NOV 8/ ,000,000 5,077,350 Sep, Nov, CIBC 2.22% MAR 7/ ,000,000 5,048,750 Aug, Mar, CIBC 2.35% JUN24/ ,000,000 10,047,900 Aug, Jun, ,809,000 22,046, % COAST CAPITAL CREDIT UNION COAST CAP TD 2.20% JUN15/17 2,500,000 2,500,000 Aug, Jun, COAST CAP TD 2.20% JUN22/17 2,500,000 2,500,000 Aug, Jun, COAST CAP TD 2.20% AUG3/17 2,000,000 2,000,000 Aug, Aug, ,000,000 7,000, % 3.78% PAP - 38

39 METRO VANCOUVER LONG TERM INVESTMENTS AS AT AUGUST 31, 2015 Schedule 2 (Cont'd) CONTRACT NUMBER AND SECURITY DESCRIPTION MATURITY AMOUNT COST DATE PURCHASED MATURITY DATE DAYS TO MATURITY YIELD COUPON HSBC BANK CANADA HSBC 2.572% NOV 23/ ,000,000 2,006,000 Jun, Nov, HSBC 2.572% NOV 23/ ,000,000 2,008,800 Jun, Nov, HSBC 2.572% NOV 23/ ,500,000 1,516,500 Sep, Nov, HSBC 2.572% NOV23/ ,000,000 5,052,800 Nov, Nov, HSBC 2.901% JAN 13/ ,000,000 5,123,050 Jan, Jan, HSBC 2.901% JAN13/ ,000,000 5,130,300 Aug, Jan, HSBC JAN13/ ,000,000 3,096,150 Feb, Jan, HSBC OCT4/ ,000,000 5,235,000 Jun, Oct, HSBC 1.816% JUL7/ ,000,000 4,971,850 Jul, Jul, ,500,000 34,140, % MANITOBA, PROVINCE OF MANITOBA 4.30% MARCH 1/ ,000,000 3,295,050 Aug, Mar, ,000,000 3,295, % MANUBANK MANUBANK FRN MAR14/16 5,000,000 5,014,600 Oct, Mar, MANUBANK 4.68% SEP12/ ,000,000 2,097,560 Mar, Sep, MANUBANK 4.68 SEP12/ ,000,000 3,123,240 Jun, Sep, MANUBANK 2.383% OCT17/ ,000,000 5,081,500 Apr, Oct, ,000,000 15,316, % BC MFA BCMFA 4.80% DEC 1/ ,000,000 5,545,000 Feb, Dec, BCMFA 4.15% JUNE 1/ ,000,000 5,475,700 Jun, Jun, ,000,000 11,020, % NATIONAL BANK NATIONAL 3.58% APR26/ ,000,000 5,152,500 Sep, Apr, NBC 2.019% APRIL 13/ ,000,000 5,016,700 Apr, Apr, NBC 2.794% AUG 9/ ,000,000 5,099,850 Apr, Aug, NATIONAL 2.794% AUG 9/ ,000,000 10,259,300 Aug, Aug, ,000,000 25,528, % NEW BRUNSWICK, PROVINCE OF NEW BRUNS. 4.30% DEC 3/ ,000,000 5,427,700 Apr, Dec, NEW BRUNS.4.30% DEC 3/ ,000,000 5,433,000 Aug, Dec, NEW BRUNS 4.30% DEC 3/ ,000,000 5,419,000 Sep, Dec, ,000,000 16,279, % NEWFOUNDLAND, PROVINCE OF NEWFOUNDLAND STRIP OCT 17/15 2,000,000 1,934,200 Aug, Oct, ,000,000 1,934,200 NOVA SCOTIA, PROVINCE OF NOVA SCOTIA 4.60% AUG 18/ ,000,000 3,331,350 Aug, Aug, NOVA SCOTIA 4.60% AUG 18/ ,000,000 5,549,900 Aug, Aug, ,000,000 8,881, % 0.47% PAP - 39

40 METRO VANCOUVER LONG TERM INVESTMENTS AS AT AUGUST 31, 2015 Schedule 2 (Cont'd) CONTRACT NUMBER AND SECURITY DESCRIPTION MATURITY AMOUNT COST DATE PURCHASED MATURITY DATE DAYS TO MATURITY YIELD COUPON ONTARIO, PROVINCE OF ONTARIO3.15% SEPT 8/ ,000,000 5,217,750 Apr, Sep, ONTARIO 3.15% SEPT 8/ ,000,000 5,238,500 Aug, Sep, ONTARIO 3.15% SEPT 8/ ,000,000 5,235,750 Aug, Sep, ONTARIO 4.40% MARCH 8/ ,000,000 5,461,500 Apr, Mar, ONTARIO 4.4% MARCH 8/ ,000,000 5,332,000 Sep, Mar, ONTARIO 2.1% SEPT 8/ ,500,000 2,432,250 Sep, Sep, ONT 3.15% JUNE2/ ,000,000 3,114,480 Aug, Jun, ONT 2.85%JUNE2/ ,000,000 4,022,880 Aug, Jun, ONT 7.5% FEB 7/ ,000,000 5,547,200 Aug, Feb, ONT STRIP FEB7/24 1,980,000 1,487,059 Sep, Feb, ONTARIO STRIP FEB7/24 3,000,000 2,244,000 Sep, Feb, ,480,000 45,333, % QUEBEC, PROVINCE OF QUEBEC 5.00% DEC 1/ ,000,000 5,561,750 Aug, Dec, QUE 3.5% DEC 1/ ,000,000 5,293,000 Aug, Dec, QUE 3.0% SEPT 1/ ,000,000 8,109,600 Aug, Sep, ,000,000 18,964, % ROYAL BANK OF CANADA ROYAL BK 3.18% (FF) NOV 2/15/ ,000,000 4,047,600 Jan, Nov, ROYAL BK 3.18% (FF) NOV 2/ ,500,000 2,544,250 Aug, Nov, RBC 2.07% JUN17/ ,000,000 5,032,500 Sep, Jun, RBC 3.66 JAN 25/ ,000,000 5,233,800 Aug, Jan, ROYAL 2.364% SEPT 21/ ,000,000 4,978,450 Jul, Sep, RBC 2.26% MARCH 12/ ,000,000 4,909,250 Aug, Mar, RBC 3.77% MAR 30/ ,000,000 10,524,000 Aug, Mar, RBC 2.82% JULY 12/ ,000,000 2,983,050 Sep, Jul, RBC 2.89% OCT11/ ,000,000 5,126,450 Aug, Oct, RBC 2.77% Dec 11/ ,000,000 5,110,000 Aug, Dec, RBC 2.35 DEC9/ ,000,000 5,142,450 Jul, Dec, RBC 2.86% MAR 4/ ,000,000 5,031,500 Jun, Mar, ,500,000 71,690, % TORONTO DOMINION BANK TD (FF) 3.367% NOV 2/ ,000,000 4,087,600 Apr, Nov, TD (FF) 3.367% NOV 2/ ,500,000 1,549,350 Jul, Nov, TD 2.948% AUG 2/ ,500,000 2,570,500 Aug, Aug, TD 2.433% AUG 15/ ,000,000 5,029,500 Jan, Aug, TD 2.433% AUG 15/ ,000,000 5,028,000 Jan, Aug, TD 2.171% APRIL 2/ ,000,000 4,876,000 Aug, Apr, TD 2.447% APRIL 2/ ,000,000 4,992,000 Apr, Apr, TD 2.563% JUN24/ ,000,000 5,044,000 Aug, Jun, TD 3.226% JULY 24/ ,000,000 10,123,800 Aug, Jul, ,000,000 43,300, % WESTMINSTER SAVINGS CREDIT UNION WSCU (CASHABLE SEP13/15) 1.35% AUG13/16 2,500,000 2,500,000 42, Aug, WESTMINSTER 2.27% JUL20/17 3,000,000 3,000,000 Aug, Jul, WESTMINSTER TD 2.27% JUL27/17 2,500,000 2,500,000 Aug, Jul, WESTMINSTER 2.27% AUG10/17 2,500,000 2,500,000 Aug, Aug, ,500,000 10,500, % TOTALS 402,689, ,260,148 AVERAGES % Mean Average Term: 2.48 Years Mean Average Yield: 2.17% Weighted Average Term: 2.68 Years Weighted Average Yield: 2.48% PAP - 40

41 PAP - 41

42 METRO VANCOUVER MATURITIES BY SECTOR Schedule 4 PAP - 42

43 METRO VANCOUVER MATURITIES BY SECTOR Schedule 4 (Cont'd) PAP - 43

44 5.3 To: From: Performance and Procurement Committee Dean Rear, Director - Financial Planning & Operations Date: October 26, 2015 Meeting Date: November 13, 2015 Subject: Status of Water, Liquid Waste and Solid Waste Capital Expenditures to August 31, 2015 RECOMMENDATION That the Performance and Procurement Committee receive the report titled Status of Water, Liquid Waste and Solid Waste Capital Expenditures to August 31, 2015, dated October 26, 2015 for information. PURPOSE To report on the status of the capital projects for Water, Liquid Waste and Solid Waste. These capital projects are typically multi-year in nature; therefore, this report provides a comparison between the total project budgets and total projected expenditures to project completion. BACKGROUND The Capital Expenditure reporting process as approved by the Board provides for regular status reports on capital expenditures with interim reports sent to the Utilities and Zero Waste Committees in June and November and a final year-end report to the Committees and Board in April. The Performance and Procurement Committee is provided a summary report for all utility capital on the same schedule. This is the second in a series of three reports on capital expenditures for In addition to this report, due to its size and complexity, a separate detailed update on the Lions Gate Secondary WWTP Upgrade Project is provided to the Utilities Committee and Board quarterly. The capital projects are separated into two types: Ongoing and Completed. Narrative information is provided describing key aspects of specific projects and each project is presented in the context of Total Projected Project Costs to Completion as compared to the Total Approved Budget. The approved budget represents the maximum expenditure authority extended by the Board. If it is projected that the total expected project expenditures will exceed the approved authority, additional approval will be sought from the Board. Appendix A contains summary financial information on Ongoing Projects and Completed Projects. The information presented is for Total Projected Completion which will generally cover multiple years. Capital project budgets typically include a minimum contingency of 10%. Individual project financial information included as follows: Schedule 1 Water, Schedule 2 Sewerage and Drainage (Liquid Waste) and Schedule 3 Sewerage and Drainage (Solid Waste). Appendix B provides narrative information for specific projects. PAP - 44

45 ALTERNATIVES This is an information report. No alternatives are presented. FINANCIAL IMPLICATIONS Ongoing Capital Projects: The Water District is projecting to spend $32.9 million (2.0 %) less than the approved total project budgets for those projects in progress and included in Schedule 1. The Sewerage and Drainage District (Liquid Waste) is projecting to spend $34.9 million (3.9 %) less than the approved total project budgets for those projects in progress and included in Schedule 2. The Sewerage and Drainage District (Solid Waste) is projecting to spend $3.0 million (9.4 %) less than the approved total project budgets for those projects in progress and included in Schedule 3. Completed Capital Projects: These are projects that have been completed during 2015, some of which may extend over multiple years. Overall, the Water District and Sewerage and Drainage District (Liquid Waste) projects in this category are under spent by $3.0 million (20.4 %) and $8.5 million (27.7 %), respectively. Net capital expenditures, after applying available pay-as-you-go financing, are funded through longterm debt from the Municipal Finance Authority. This results in debt service costs, for the term on the debt, which must be funded annually through the water rate, sewer levy or tipping fee as appropriate. If capital expenditures are lower than budget for the year, the result is less required borrowing leading to a budget surplus due to savings in debt service costs. The surplus, by policy, will be applied to fund future capital expenditures thereby reducing the need to borrow. Any favourable variance to budget on capital projects is not redirected to other projects but is essentially dollars not spent. Each project proceeds on the individual project approved budget. SUMMARY / CONCLUSION This is the second in a series of three capital expenditure progress reports for The Board will see this information through individual reports through the Utilities and Zero Waste Committees. Both the Water District and Sewerage and Drainage District (Liquid and Solid Waste) were under or essentially on budget for those projects completed as at August 31, 2015 and are projecting the same for ongoing projects when they complete. Attachments and References: Appendix A: Capital Expenditure Summary Information as at August 31, 2015 Appendix B: Capital Project Status Information as at August 31, 2015 Schedule 1: Water District Capital Expenditures Schedule 2: Sewerage & Drainage District (Liquid Waste) Capital Expenditures Schedule 3: Sewerage & Drainage District (Solid Waste) Capital Expenditures PAP - 45

46 APPENDIX A Capital Expenditure Summary Information As at August 31, 2015 Ongoing Projects Total Projected Expenditures to Completion ACE/ Total Budget Projected Favourable Variance Water $1,603,128,213 $1,636,027,822 $32,899,609 Liquid Waste 856,942, ,794,377 34,852,171 Solid Waste 29,140,000 32,160,000 3,020,000 Total Ongoing Projects: $2,489,210,419 $2,559,982,199 $70,771,780 Completed Projects Total Actual Expenditures ACE/ Total Budget Favorable Variance Water $11,555,029 $14,521,195 $2,966,166 Liquid Waste 22,190,936 30,678,202 8,487,266 Solid Waste Total Completed Projects: $33,745,965 $45,199,397 $11,453,432 PAP - 46

47 Capital Project Status Information August 31, 2015 APPENDIX B 1. GREATER VANCOUVER WATER DISTRICT (Water Services) Major GVWD capital projects are generally proceeding on schedule and within budget. The following capital program items and exceptions are highlighted: i) Drinking Water Treatment Program All of the major construction contracts for the Seymour Capilano Filtration Project are complete and the raw and treated water tunnels have been in service since April C ommissioning of the turbine/generator at the Capilano Energy Recovery Facility is nearing completion and final programming is underway. ii) Infrastructure Growth Program Pipe installation for the Maple Ridge Main (West) between the Barnston/Maple Ridge Pump Station and 232nd Street is complete. The water main was put in service in early July Construction of the Barnston/Maple Ridge Pump Station is approximately 95% complete. Ongoing delays in supply and delivery of major electrical equipment have continued to impact the project schedule. Connections to the existing Haney Mains No. 2 and 3, Barnston Island Main and Maple Ridge Main (West) have been completed. The projected substantial completion date is December Proposals for engineering services for the Annacis Water Supply Tunnel have been received and are under review. Property acquisition for the shaft sites in New Westminster and Surrey continues. Detailed design and property acquisition for Port Mann Main No. 2 (North) between the Cape Horn Pump Station and Reservoir near Mariner Way and the new Port Mann Water Supply Tunnel is complete. Construction of this water main is expected to start in mid- October Construction of the Angus Drive Main Phase 1 between West 33rd Avenue and SW Marine Drive in Vancouver is 99% complete. Construction of Phase 2, south of Marine Drive is 80% complete. Completion of Phase 2 is expected in November The tie-ins are expected to be completed in May Detailed design of South Delta Main No. 1 Replacement Phase 1 Pre build is complete and the installation tender closes in October Detailed design of Phase 2 is 55% complete and installation tenders are scheduled to be issued in December Installation of the casing pipe for the Highway No. 17 crossing is complete and the Connector Road pre-build is 95% complete. PAP - 47

48 iii) Infrastructure Maintenance Program Construction of the Kincaid and Delta Avenue sections of the Douglas Road Main is complete. Final tie ins are underway. Drilling of the first horizontal drain to replace the E2 drainage shaft is nearing completion. Due to difficult ground conditions, the first drain has taken significantly longer to complete than anticipated. iv) Infrastructure Risk Management Program Construction of the Port Mann Water Supply Tunnel is approximately 75% complete. The horizontal tunnel drive was completed in early July. The contractor is installing the 2.1m diameter steel watermain in the tunnel and has commenced construction of the south valve chamber. Overall project completion, including connections to the existing system, is scheduled for late Preliminary design of the Mackay Creek and Grouse Creek debris flow mitigation works is now complete. An RFP for detailed design is expected to be issued in December Construction of Phase 1 of Capilano Main No. 9 within Capilano River Regional Park is 95% complete. Phase 2 water main installation along Capilano Road between the Capilano River Regional Park upper parking lot and Edgemont Boulevard commenced in August 2015 and is proceeding on schedule. Detailed design of the Second Narrows Water Supply Tunnel was awarded in July. Geotechnical drilling is now underway. Detailed design of Braid Street Main No.2 is approximately 85% complete. Construction is scheduled for the summer of Preliminary design of the new 22.5 ML (5 MG) Clayton Reservoir to replace the Clayton Tank in Surrey is complete. Detailed design is now underway. Seismic upgrading of the Sasamat and Grandview Pump Stations is complete. v) Infrastructure Upgrade Program Construction of the new Lynn Valley Reservoir in the Lower Seymour Conservation Reserve commenced in June 2015 and is scheduled for completion in spring Design of the new Tilbury Valve Chamber at the confluence of the Tilbury and River Road Mains in Delta is substantially complete. Installation of the Queensborough Main Replacement is being coordinated with the City of New Westminster s Ewen Avenue Improvement project and is 30% complete. PAP - 48

49 2. GREATER VANCOUVER SEWERAGE & DRAINAGE DISTRICT (Liquid Waste Services) Major GVS&DD liquid waste capital projects are generally proceeding on schedule and within budget. The following capital program items and exceptions are highlighted: i) Infrastructure Growth Program FSA Northwest Langley WWTP Phase l Upgrade The project expands treatment capacity with three new clarifiers, an activated sludge tank, a pumping station, and ancillary process and electrical equipment. The concrete works for the three clarifier tanks, the activated sludge tank, the pump station, and the two process/control buildings are completed. The process-mechanical and building-mechanical works is nearing completion. The contractor is presently focusing on the electrical installation works. Substantial completion of the project is scheduled for March FSA North Surrey Interceptor Port Mann Section Twinning Work on this project has been put on hold pending an East Fraser Sewer Servicing Study, expected to be complete by the end of FSA Burnaby Lake North Interceptor Construction is complete on the Sperling Section. System tie-ins are underway. Preliminary design of Phase 2 and stakeholder engagement are underway. Preliminary design is expected to be complete by the end of FSA North Surrey Interceptor, 104th Avenue Section Pipe installation has been completed along the South Fraser Perimeter Road. The right of way required for the final tie ins has been acquired from the Ministry of Transportation and Infrastructure. Drawings and specifications for construction of the final portion are being finalized for tender in the fourth quarter of FSA Annacis Island WWTP Outfall This project involves identifying solutions for the transient/surge scenarios that may occur on the wastewater collection and treatment plant influent system in the event of a power outage, and assessing options to increase capacity of the outfall for growth. Identification of potential alignments for the outfall(s) is complete and the regulatory framework has been identified. In August 2015, CDM Smith was engaged for the next phase of work, which is to evaluate and recommend the best option to address the transient issue and for the outfall configuration to complete the preliminary design. Geotechnical investigations are currently underway to obtain sub-surface information on the potential outfall alignments. The First Nations Engagement process is also underway and will be completed in October. ii) Infrastructure Maintenance Program LSA Gilbert Trunk Sewer Twinning Construction of Phase 1 of the twinning project is complete with the tie-in work nearing completion. Construction of a pre-build section of Phase 2 to coordinate with the adjacent residential development project is underway. Decommissioning of the dyke portion of the old sewer is scheduled for October. A contract for design services for the remaining three phases of the project has been awarded, and design work is underway. Overall completion of the project is scheduled for PAP - 49

50 VSA Iona Island WWTP Solids Handling Upgrade This project involves improving the existing grit removal and sludge screening systems, increasing sludge thickening capacity, and improving the digester mixing systems. Recommendations for award of construction contracts were approved by the Board in July The prerequisite site improvements and preload work is complete. The main construction will commence in October 2015 under two separate contracts. The main contract for the screening, de-gritting and thickening upgrades is expected to be complete in The digester mixing contract is expected to be complete by FSA Annacis Island WWTP Secondary Clarifier Corrosion Repair This project involves replacing 12 existing secondary clarifier mechanisms that have been damaged by corrosion. One mechanism was replaced in 2014 and replacement of a second mechanism is underway. The remainder of the units will be replaced in Due to settlement that is affecting the operation of the mechanisms, re-leveling and grouting of the clarifier floor have been added to the scope of work. iii) Infrastructure Risk Management Program FSA Annacis Island WWTP Cogeneration System The project replaces the existing cogeneration engines with larger units in order to utilize excess digester gas that is currently being flared, and to generate additional electricity and heat to reduce BC Hydro import. The cogeneration engines are being supplemented by diesel generators to provide a reliable stand-by power system during BC Hydro outage events. Preliminary design is at 60% with completion projected for the end of Award of the pre-purchased cogeneration engines and the standby diesel gensets was approved by the Board in July Technical and commercial details are being finalized in the vendor contracts and will be executed in October iv) Infrastructure Upgrade Program FSA New Sapperton Pump Station Preliminary design is complete and detailed design is underway. Request for proposal for the supply of pumps and drives has closed and proposals are under review. 69kV Gas Insulated Switchgear RFP is scheduled to be issued in late October. Development Permit process is underway with the City of New Westminster. Public engagement sessions for the pump station and the Brunette Fraser Greenway will be completed in the early Fall. FSA Langley Connector and Carvolth Trunk Sewer Upgrading/Replacement Construction is 85% complete and is expected to be completed by the end of v) Annacis Stage 5 Expansion Program FSA Annacis Island WWTP Stage 5 Phase 1 This work involves expansion of treatment process units including primary sedimentation tanks, secondary clarifiers, solid contact tanks and odour control. Detailed design commenced in early 2014 and is currently 95% complete. The $47 million ground improvement contract awarded in October 2014 is PAP - 50

51 approximately 50% complete. The $5 million solids contact blower contract awarded in November 2014 is 50% complete. The contract for the controls and laboratory building awarded in March 2015 is 10% complete. 3. GREATER VANCOUVER WATER DISTRICT SEWERAGE & DRAINAGE DISTRICT (Solid Waste Services) Major GVS&DD solid waste capital projects are generally proceeding on schedule and within budget. The following capital program exceptions are highlighted: i) Landfills Program The Coquitlam Landfill (CLF) Gas Upgrades are planned for the winter of 2015/2016 to comply with the recent extension of the golf facility lease. The Phase 2 upgrade will be completed with the proposed development of the Coquitlam Transfer Station. ii) Waste-to-Energy Program The NOx Upgrade Project meets the emission reduction targets and was accepted as substantially complete on April 1, The project is complete except for final billing. A draft Operational Certificate has been submitted to the province. Upgrades to the Scrubber system, Continuous Emission Monitoring system (CEMS), and the WTEF Gas Burner Replacement are now underway. iii) New WTE Capacity Project (Material & Energy Recovery Facility) The procurement process for the New WTE Capacity Project was approved in October RFQ1 (Technology Only) was issued, and the short list of qualified technology respondents was announced in June The Potential Site Identification process has been initiated, and a public solicitation for sites was issued in July Public engagement and consultation programs will continue, and once potential sites have been identified, site specific consultation will be initiated. PAP - 51

52 PAP - 52 SCHEDULE 1

53 PAP - 53

54 PAP - 54

55 PAP - 55 SCHEDULE 2

56 PAP - 56

57 PAP - 57

58 PAP - 58

59 PAP - 59

60 PAP - 60 SCHEDULE 3

61 5.4 To: From: Performance and Procurement Committee Dean Rear, Director - Financial Planning & Operations Date: October 8, 2015 Meeting date: November 13, 2015 Subject: Semi-Annual Report on GVS&DD Development Cost Charges RECOMMENDATION That the Performance and Procurement Committee receive the report dated October 8, 2015 titled Semi-Annual Report on GVS&DD Development Cost Charges for information. PURPOSE To report on the 2015 GVS&DD Development Cost Charge (DCC) revenues and any implications on their adequacy, as required in the Board s policy. BACKGROUND Regional GVS&DD Development Cost Charges are collected on behalf of Metro Vancouver, as set out in the Board approved DCC Bylaw, by member municipalities and remitted twice a year. DCC s are used to fund growth related capital expenditures. Board policy requires that the DCC revenues be reported to the Committee on a semi-annual basis. This is the first of such reports for DCC COLLECTIONS AND APPLICATIONS The revenues for the period January 1 to June 30 of this year are up $0.80 million (or 8.5 %) over st half levels. The revenues highlight the relatively consistent level of on-going development in the region over the past year. DCC revenues received last year and 1 st half of 2015 are as follows: ($ millions) Fraser Lulu N. Shore Vancouver Regional Total st half $4.102 $0.210 $0.246 $1.120 $3.752 $ nd half $4.194 $0.416 $0.151 $1.117 $3.929 $ st half $4.632 $0.410 $0.311 $0.912 $3.962 $ Each year, the sewerage growth capital projects that are undertaken are funded through long term debt financing utilizing a 15 year amortization period, for which the DCC s received are used to pay the principal portion of the borrowing. Any excess DCC revenues are maintained as deferred revenues for future application as required. The DCC deferred revenue balances as at December 31, 2014 are as follows: PAP - 61

62 Fraser Sewer Area $ 88,615,414 Lulu Island Sewer Area 9,827,836 North Shore Sewer Area 3,353,664 Vancouver Sewer Area 22,576,193 Regional 91,939,915 $216,313,022 A review is currently underway which will assess the DCC program relative to future growth requirements in the region. ALTERNATIVES This is an information report. No alternatives are presented. FINANCIAL IMPLICATIONS The DCC program was established pursuant to the concept of Development Pays for Growth. Should the revenues collected be inadequate to fund the Sewerage growth related projects, the funding burden would default to Sewer levies collected from the GVS & DD member municipalities. SUMMARY / CONCLUSION The longer term adequacy of Development Cost Charge revenue to either directly or indirectly finance the growth capital program will always be somewhat sensitive to major fluctuations in the Liquid Waste Services capital program as it evolves. While the current DCC revenues continue to be substantial, so is the plan for future Liquid Waste Services growth capital works. A review is currently underway that will look at the longer term adequacy of the DCC program including future capital requirements, and projected revenue requirements relative to current DCC rates charged. In the medium term, current DCC revenue levels as well as the deferred revenues appear adequate PAP - 62

63 5.5 To: From: Performance and Procurement Committee Tracey S. Husoy, Division Manager, Purchasing and Risk Management, Financial Services Department Date: Report date November 3, 2015 Meeting Date: November 13, 2015 Subject: Metro Vancouver s Procurement Practices with respect to Buying Local RECOMMENDATION That the Performance and Procurement Committee receive the report titled Metro Vancouver s Procurement Practices with respect to Buying Local, dated November 3, 2015 for information. PURPOSE To provide the Performance and Procurement Committee with an overview of Metro Vancouver s procurement practices with respect to buying local. BACKGROUND Following a presentation on continuous improvements at the July 17, 2015 Performance and Procurement Committee meeting staff were directed to provide an update on Metro Vancouver s procurement practice as they relate to buying local. This is further to the delegation presentation made in July 2014 by Charley Beresford from the Columbia Institute on their efforts to promote local procurement. During the delegation presentation Committee members were shown visual representations for contributions to local jobs by Mills Basics, Staples and OfficeMax, as well as comparisons on their direct recirculation of revenue back to the local economy. METRO VANCOUVER S PROCUREMENT PRACTICES Information presented in the delegation recognized that trade agreements limit the ability of local government to give explicit preference based on location. Namely the Agreement on Internal Trade and the New West Partnership Trade Agreement prohibit the use of measures that would restrict or impair trade to the Agreement s respective signatories for goods and services valued at or in excess of $75,000 and $200,000 for construction. In addition these opportunities require electronic postings that attract international attention. Trade agreements not only provide foreigners access to local markets but, provide local businesses access to foreign markets. Reciprocity does not appear to be addressed in the materials from the Columbia Institute. Metro Vancouver issues a significant number of procurement opportunities that exceed the trade agreement thresholds, yet, in the absence of any local preference measures approximately 91% of all purchases (as measure in total dollars) are ordered from vendors within the province of British Columbia and approximately 83% are from within a member municipality. In addition, Mills Basics won the last two competitive selection processes to provide office supplies to Metro Vancouver without any local preferential treatment. PAP - 63

64 Purchases that fall below the trade agreement thresholds are generally operating supplies and services with a shorter lead time and/or response time than larger purchases. As such it is common to contract local firms for the supply of these goods and services. A survey of member municipalities determined that none have a local preference policy, however, several municipalities have a tie-breaker clause within their policies or procedures. Generally a tie breaker clause states where quality, specifications, service, price and delivery are all equal preference will be given to the local firm. Many stipulate the order of preference being local, British Columbia, Canada, outside Canada. Within the past number of years Purchasing staff can only recall one instance where all things were equal among two tenders and in that particular case both firms were located within two of the District s member municipalities. Metro Vancouver s primary goal in the procurement process is to attain best value, using processes that are competitive, open, transparent and non-discriminatory. While competition leads to lower prices this best value approach ensures that other key considerations (i.e. service response time) are factored into the overall selection criteria when comparing bids. By the very nature of some of the requirements these considerations are positively influenced by proximity and provide local vendors a natural advantage. In addition, opportunities for process improvement is constantly being sought. Consolidation of similar work or commodities into larger competitive processes so business is conducted more efficiently and economies of scale are optimized is one such approach. Several local municipalities bundled their stationary requirements and Mills Basic were successful, again, in the absence of a local preference. ALTERNATIVES This is an information report. No alternatives are presented. FINANCIAL IMPLICATIONS As this report is for information purposes only there are no financial implications. SUMMARY / CONCLUSION For at least the last twenty years Metro Vancouver has not had local preference included in its procurement policy and for approximately ten years has electronically posted procurement opportunities in excess of certain thresholds resulting in international exposure of these opportunities. Yet, this exposure and access from foreigners have not impacted the fact that the majority of contract awards are made to local firms. Given the nature of Metro Vancouver s spend this is not expected to change significantly in the future PAP - 64

65 5.6 To: From: Performance & Procurement Committee Tracey S. Husoy, Division Manager, Purchasing and Risk Management, Financial Services Department Date: October 26, 2015 Meeting Date: November 13, 2015 Subject: Tender/Contract Award Information June to September 2015 RECOMMENDATION That the Performance & Procurement Committee receive the report titled Tender/Contract Award Information June to September 2015, dated October 26, 2015 for information. PURPOSE To provide the Performance & Procurement Committee information with regards to contracts, handled through the Purchasing Division, with a total anticipated value at or in excess of $500,000 (exclusive of tax). BACKGROUND The Purchasing Division of Metro Vancouver awards contracts for goods, services and construction in accordance with the Officers and Delegation Bylaws 1208, 284 and 247, and the Procurement and Real Property Contracting Authority Policy adopted by Board of Directors on July 11, 2014, effective September 1, These Bylaws and Policy outline thresholds for competitive bidding and contracting authorities. Contracts in excess of $500,000 will be reported to the Performance and Procurement Committee to align with the thresholds outlined in the Policy. Capital projects may result in the awarding of one or more contracts to complete the project. All contracts are always within budget authority. NEW CONTRACTS - $500,000 to $5,000,000 The following contracts were awarded during the months of June to September 2015: (Details attached as APPENDIX A) 1. NAC Constructors Ltd. $547,000 GVS&DD Annacis Island Wastewater Treatment Plant Secondary Clarifier Mechanisms Replacement Phase 2a Units 3 and 5 2. AECOM Canada Ltd. $4,795,423 GVS&DD Consulting Engineering Services for the Design and Construction of Gilbert Trunk Sewer Twinning 3. MTS Engineering Inc. $1,500,000 GVWD Electrical, Instrumentation, and Controls Consulting Engineering Services for Water Services Projects PAP - 65

66 4. Maple Reinders Inc. $1,537,000 GVWD Storage Building at Seymour Capilano Filtration Plant 5. MHPM Project Managers Inc. $4,100,000 GVWD Project Management Services Water Design and Construction Projects 6. JJM Construction Ltd. $2,535,850 GVS&DD South Surrey Interceptor Johnston Road Section Advance Works Colebrook Rd and King George Blvd Crossing 7. NAC Constructors Ltd. $1,092,000 GVS&DD Iona Island Wastewater Treatment Plant Grit Channel and Sedimentation Tank Effluent Gate Replacement 8. Pro-Can Construction Group Corp. $572,000 GVS&DD Hellings Tank Seismic Upgrade Construction 9. Gifford Electric Ltd. $648,000 GVS&DD Jervis Pump Station MCC and ACP Replacement Electrical Supply and Installation 10. MMM Group Ltd. and Parsons Canada Ltd. $2,000,000 each GVS&DD Engineering Consulting Services for Liquid Waste Services Minor Projects 11. Giffels Westpro Constructors Inc. $2,073,500 GVS&DD Lions Gate Wastewater Treatment Plant Sludge Thickener No. 2 System Construction 12. Nothwest Pipe Company $702,492 GVWD Supply and Delivery of Steel Pipe for South Delta Main No. 1 Replacement Phase MTS Engineering Inc. $4,700,000 GVS&DD Engineering Consulting Services for Liquid Waste Collection Systems and Lulu Island WWTP Electrical, Instrumentation and Control Projects 14. Southern Cross Holdings Ltd. $2,907,648 GVS&DD Solid Waste Facility and Material Disposal Ban Inspection Services 15. Arrow Transportation Systems Inc. $4,968,000 GVS&DD Beneficial Use of Iona Island Wastewater Treatment Plant Dried Biosolids 16. CWA Engineers Inc. $628,319 GVWD Central Park Pump Station Electrical Upgrade 17. Neale Staniszkis Doll Adams Architects. $2,300,000 MVHC Heather Place Redevelopment Phase 1 PAP - 66

67 NEW CONTRACTS BOARD APPROVED The following contracts were authorized for execution by the GVS&DD or the GVWD or the GVRD Board of Directors or MVHC during the months of June to September 2015 (as such no further information is included in this report): 18. Pedre Contractors Ltd. $13,497,395 GVWD Installation of Capilano Main No. 9 Phase CDM Smith Canada ULC $5, GVS&DD Annacis Island Wastewater Treatment Plant Transient Mitigation and Outfall Consulting Engineering Services. The RFP included three phases for a total estimated cost of $19,938,840. The award of $5,145,027 is for the initial phase and award of subsequent phases is subject Board approval. 20. Jacobs Associates Canada Corporation $9,740,595 GVWD Consulting Engineering Services for Detailed Design, Construction Engineering and Construction Management of Second Narrows Water Supply Tunnel. The RFP included three phases for a total estimated cost of $31,224,223. The award of $9,740,595 is for the initial phase and award of subsequent phases is subject Board approval. 21. Pedre Contractors Ltd. $14,800,075 GVWD Installation of Port Mann Main No. 2(North) Cape Horn Pump Stations to Fraser River Section 22. Kenaidan Contracting Ltd. $22,857,000 GVS&DD Iona Island Wastewater Treatment Plant Solids Handling Upgrade Screening, Degritting, and Thickening 23. Maple Reinders Inc. $9,915,300 GVS&DD Iona Island Wastewater Treatment Plant Solids Handling Package 3 Digester Mixing Project 24. Cummins Western Canada $7,276,671 GVS&DD Supply and Installation of Standby Diesel Engine Generator Annacis Island Wastewater Treatment Plant 25. Finning (Canada) a division of Finning $13,696,970 GVS&DD International Inc. Supply and Installation of Cogeneration System Annacis Island Wastewater Treatment Plant The following Standing Offer Agreements were accepted during the months of June to September 2015: (Details attached as APPENDIX B) 1. See attached list $2,300,000 GVRD Temporary Clerical Services PAP - 67

68 The following not previously reported contracts were amended during the months of June to September 2015: (Details attached as APPENDIX C) Value of Amendment(s) Total Amended Value of Contract 1. Matcon Civil Constructors Inc. $116,275 $553,075 Covers the cost of sheet piling, which was identified as a provisional item in the contract. The following previously reported contracts were amended during the months of June to September 2015: (Details attached as APPENDIX D) Value of Amendment(s) Total Amended Value of Contract 1. Jensen Drilling Company $866,739 $2,451,702 Covers additional drilling as a result of unforeseen ground conditions, and revised drilling methodology. 2. Graham Construction $815,169 $5,553,169 Covers changes primarily caused by unforeseen conditions that were revealed through the renovation of the facility and/or by opportunities taken to increase the operability and safety of the facility. 3. AECOM Canada Ltd. $868,099 $1,586,066 Covers construction and post-construction services that could not be accurately estimated when the pervious phases of work were awarded. The increase is attributed to project complexity and additional scope to address construction management, operational concerns and municipal requirements. 4. CH2M Hill Canada $633,215 $4,892,005 Covers additional engineering to accommodate a preferred site location resulting in additional geotechnical effort that will reduce construction costs and additional odour control measures. 5. AECOM Canada Ltd. $706,607 $2,002,126 Covers additional detailed design hours and an anticipated amount for construction services. The increase in the detailed design is attributed to project complexity, additional scope and municipal requirements. PAP - 68

69 6. Matcon Civil Constructors Inc. $923,790 $10,082,590 Covers additional work requested and to be paid by the City of Vancouver and differing ground conditions. ALTERNATIVES This is an information report. No alternatives are presented. FINANCIAL IMPLICATIONS The contracts presented herein are consistent within Budget Authority. SUMMARY / CONCLUSION The contracts presented herein were awarded in accordance with the Officers and Delegation Bylaws and the Procurement and Real Property Contracting Authority Policy and comply with competitive bidding laws and applicable legislation. Further, the competitive selection packages were carefully crafted by teams of subject matter experts resulting in the award of contracts that are fiscally responsible, and balance risk, economic, ethical and legal obligations. Attachments and References: APPENDIX A: Information with regard to newly awarded contracts APPENDIX B: APPENDIX C: Information with regard to Standing Offer Agreements Contracts amended to a value of more than $500,000 but not previously reported to the Performance & Procurement Committee APPENDIX D: Previously reported contracts that have been amended APPENDIX E: Competitive Selection Packages Anticipated to be greater than $500,000 (Issued but not awarded) PAP - 69

70 AWARD OF CONTRACT Appendix A Page No. 1 TENDER NO A contract was awarded May 28, 2015 for the GVS&DD. To: NAC Constructors Ltd. in the amount of $547,000 (exclusive of tax) for Annacis Island Wastewater Treatment Plant Secondary Clarifier Mechanisms Replacement Phase 2a Units 3 and 5. The contract price is within the overall budget. 2. Tenders were invited by MV & BC Bid web sites and private invitation on April 28 28, Closing Date: May 26, Tenders received (exclusive of tax): NAC Constructors Ltd. $547,000 Tritech Group Ltd. $809,398 Maple Reinders Inc. $950, Tenders reviewed by: Contractual: Technical: Purchasing Division Staff Liquid Waste Services Department Staff 5. Award was made to the lowest compliant bidder. PAP - 70

71 AWARD OF CONTRACT Appendix A Page No. 2 RFP NO A contract was awarded May 28, 2015 for the GVS&DD. To: AECOM Canada Ltd. in the anticipated amount of $4,330,492 (exclusive of tax) for Consulting Engineering Services for the Design and Construction of Gilbert Trunk Sewer Twinning. The total anticipated value of this contract is expected to increase by an additional $464,931 to $4,795,423 to account for issues identified during negotiations as allowed for in the RFP and an inflationary factor to be applied in the later stage of the contract. The initial award is limited to the preliminary design at a cost of $780,184 and subsequent phases of the work will be awarded subject to mutual agreement. The contract price is within the overall budget. 2. Three (3) firms were shortlisted as a result of RFQ No and invited to bid on RFP No Closing Date: February 12, Proposals received (exclusive of tax): Estimated Pricing for Common Level of Effort (30,000 Hours) Stantec $4,272,470 AECOM Canada Ltd. $4,330,492 HDR $5,341, Proposals reviewed by: Contractual: Technical: Purchasing Division Staff Liquid Waste Services Department Staff 5. Award was made to the highest ranked proponent based on the evaluation criteria established in the RFP. 6. AECOM s proposal demonstrated the best overall understanding of the project requirements and they have successfully undertaken similar work for Metro Vancouver. PAP - 71

72 AWARD OF CONTRACT Appendix A Page No. 3 RFP NO A contract was awarded June 4, 2015 for the GVWD. To: MTS Engineering Inc. in the estimated amount up to $1,500,000 (exclusive of tax) for Electrical, Instrumentation, and Controls Consulting Engineering Services for Water Services Projects over an anticipated five (5) year term. The RFP identified the most qualified and competitive contractor for on-demand engineering services that fall within the defined scope for the specified term. Each project will be negotiated and awarded independently. The contract price is within the overall budget. 2. Proponents were invited by MV & BC Bid web sites and private invitation on March 26, Closing Date: April 23, Proposals received (exclusive of tax): Average Hourly Rate MTS Engineering Inc. $93 Kerr Wood Leidal $109 Opus DaytonKnight $114 Moffat & Nichol $114 AMEC Foster Wheeler $119 WSP Canada $124 AECOM Canada Ltd. $130 CH2M Hill Canada Ltd. $ Proposals reviewed by: Contractual: Technical: Purchasing Division Staff Water Services Department Staff 5. Award was made to the highest ranked proponent based on the evaluation criteria established in the RFP, who coincidentally provided the lowest cost. PAP - 72

73 AWARD OF CONTRACT Appendix A Page No. 4 TENDER NO A contract was awarded June 25, 2015 for the GVWD. To: Maple Reinders Inc. in the amount of $1,537,000 (exclusive of tax) for a Storage Building at the Seymour Capilano Filtration Plant. The contract price is within the overall budget. 2. Tenders were invited by MV & BC Bid web sites and private invitation on April 21, Closing Date: May 6, Tenders received (exclusive of tax): Maple Reinders Inc. $1,537,000 Bynett Construction Solutions Inc. $1,577,100 CEWE Infrastructure Ltd. $1,834,800 Tikal Construction Ltd. $2,030,000 Kingston Construction Ltd. $2,119, Tenders reviewed by: Contractual: Technical: Purchasing Division Staff Water Services Department Staff 5. Award was made to the lowest compliant bidder. PAP - 73

74 AWARD OF CONTRACT Appendix A Page No. 5 RFP NO A contract was awarded June 23, 2015 for the GVWD. To: MHPM Project Managers Inc. in the estimated amount up to $4,100,000 (exclusive of tax) for Project Management for a variety of Water Services Projects over an anticipated five (5) year term. The RFP identified the most qualified and competitive contractor for on-demand engineering services that fall within the defined scope for the specified term. Each project will be negotiated and awarded independently. The contract price is within the overall budget. 2. Three (3) firms were shortlisted as a result of RFQ No and invited to bid on RFP No Closing Date: March 12, Proposals received (exclusive of tax): Average Hourly Rates SNC-Lavalin Inc. $ MHPM Project Managers Inc. $ Proposals reviewed by: Contractual: Technical: Purchasing Division Staff Water Services Department Staff 5. Award was made to the highest ranked proponent based on the evaluation criteria established in the RFP. 6. The proposal from MHPM Project Managers Inc. demonstrated a superior understanding of the scope of work, identified key project management processes and addressed all the items requested in the RFP. MHPM provided a well-defined Project Implementation Plan covering all the steps of the overall process. PAP - 74

75 AWARD OF CONTRACT Appendix A Page No. 6 TENDER NO A contract was awarded July 8, 2015 for the GVS&DD. To: JJM Construction Ltd. in the amount of $2,535,850 (exclusive of tax) for South Surrey Interceptor Johnston Road Section Advance Works Colebrook Rd and King George Blvd Crossing. The contract price is within the overall budget. 2. Five (5) firms were short-listed as a result of RFQ and invited to bid on Tender No Closing Date: June 30, Tenders received (exclusive of tax): JJM Construction Ltd. $2,535,850 Pedre Contractors Ltd. $2,660,000 Clearway Construction Inc. $3,047,575 Matcon Civil Constructors Inc. $3,453,750 West Shore Construction Ltd. $3,852, Tenders reviewed by: Contractual: Technical: Purchasing Division Staff Liquid Waste Services Department Staff 5. Award was made to the lowest compliant bidder. PAP - 75

76 AWARD OF CONTRACT Appendix A Page No. 7 TENDER NO A contract was awarded July 15, 2015 for the GVS&DD. To: NAC Constructors Ltd. in the amount of $1,092,000 (exclusive of tax) Iona Island Waste Water Treatment Plant Grit Channel and Sedimentation Tank Effluent Gate Replacement. The contract price is within the overall budget. 2. Tenders were invited by MV & BC Bid web sites and private invitation on May 21, Closing Date: June 25, Tenders received (exclusive of tax): NAC Constructors Ltd. $1,092,000 HMI Construction Inc. $1,690, Tenders reviewed by: Contractual: Technical: Purchasing Division Staff Liquid Waste Services Department Staff 5. Award was made to the lowest compliant bidder. PAP - 76

77 AWARD OF CONTRACT Appendix A Page No. 8 TENDER NO A contract was awarded July 21, 2015 for the GVWD. To: Pro-Can Construction Group Corp. in the amount of $572,000 (exclusive of tax) for Hellings Tank Seismic Upgrade Construction. The contract price is within the overall budget. 2. Tenders were invited by MV & BC Bid web sites and private invitation on June 1, Closing Date: June 30, Tenders received (exclusive of tax): Pro-Can Construction Group Corp. $572,000 Bynett Construction Services Inc. $608,000 Heatherbrae Builders Co. Ltd. $685,000 Kingston Construction Ltd. $696,575 Polycrete Restorations Ltd. $754, Proposals reviewed by: Contractual: Technical: Purchasing Division Staff Water Services Department Staff 5. Award was made to the lowest compliant bidder. PAP - 77

78 AWARD OF CONTRACT Appendix A Page No. 9 TENDER NO A contract was awarded July 24, 2015 for the GVS&DD. To: Gifford Electric Ltd. in the amount of $648,000 (exclusive of tax) for Jervis Pump Station MCC and ACP Replacement Electrical Supply and Installation. The contract price is within the overall budget. 2. Tenders were invited by MV & BC Bid web sites and private invitation on June 15, Closing Date: July 14, Tenders received (exclusive of tax): Gifford Electric Ltd. $648,000 Ross Morrison Electrical Ltd. $649,679 Black & McDonald Ltd. $682,782 QCA Systems Ltd. $962, Tenders reviewed by: Contractual: Technical: Purchasing Division Staff Liquid Waste Services Department Staff 5. Award was made to the lowest compliant bidder. PAP - 78

79 AWARD OF CONTRACT Appendix A Page No. 10 RFP NO Two contracts were awarded August 4, 2015 for the GVS&DD. To: MMM Group Ltd. and Parsons Canada Ltd. in the anticipated amount up to $2,000,000 each (exclusive of tax) for up to a three (3) year period, for Engineering Consulting Services for Liquid Waste Services Minor Projects. The RFP identified the most qualified and competitive contractors for on-demand engineering services that fall within the defined scope for the specified term. Projects will be awarded alternately between the two firms and each contract will be negotiated independently. The contract price is within the overall budget. 2. Proponents were invited by MV & BC Bid web sites and private invitation on April 27, Closing Date: May 26, Proposals received (exclusive of tax): Cost Estimates for 5 Minor Projects FEED Engineering $1,120,500 OPUS DaytonKnight $1,278,750 Parsons Canada Ltd. $1,328,550 AMEC Foster Wheeler Environment & Infrastructure $1,349,850 Tetra Tech EBA $1,413,900 Kerr Wood Leidal $1,466,250 MMM Group Ltd. $1,579,950 CH2MHILL. $1,605, Proposals reviewed by: Contractual: Technical: Purchasing Division Staff Liquid Waste Services Department Staff 5. Award was made to the two highest ranked proponents based on the evaluation criteria established in the RFP. 6. These two top ranked firms demonstrated excellent technical capabilities and a thorough understanding of the project scope and issues. PAP - 79

80 AWARD OF CONTRACT Appendix A Page No. 11 TENDER NO A contract was awarded August 17, 2015 for the GVS&DD. To: Giffels Westpro Constructors Inc. in the amount of $2,073,500 (exclusive of tax) for Lions Gate Wastewater Treatment Plant Sludge Thickener No. 2 System Construction. The contract price is within the overall budget. 2. Tenders were invited by MV & BC Bid web sites and private invitation on May 8, Closing Date: June 18, Tenders received (exclusive of tax): Giffels Westpro Constructors $2,073,500 Carver Construction Ltd. $2,380,953 Cewe Infrastructure Ltd. $2,317,500 Tritech Water Infrastructure. $2,496, Tenders reviewed by: Contractual: Technical: Purchasing Division Staff Liquid Waste Services Department Staff 5. Award was made to the lowest compliant bidder. PAP - 80

81 AWARD OF CONTRACT Appendix A Page No. 12 TENDER NO. DC A contract was awarded August 17, 2015 for the GVWD. To: Northwest Pipe Company in the amount of $702,492 (exclusive of tax) for Supply and Delivery of Steel Pipe for South Delta Main No. 1 Replacement Phase 1. The contract price is within the overall budget. 2. Two (2) firms were short-listed as a result of RFQ and invited to bid on Tender No. DC43953 Closing Date: August 17, Tenders received (exclusive of tax): Northwest Pipe Company $702,492 Ameron International $759, Tenders reviewed by: Contractual: Technical: Purchasing Division Staff Water Services Department Staff 5. Award was made to the lowest compliant bidder. PAP - 81

82 AWARD OF CONTRACT Appendix A Page No. 13 RFP NO A contract was awarded August 27, 2015 for the GVS&DD. To: MTS Engineering Inc. in the estimated amount up to $4,700,000 (exclusive of tax) for Engineering Consulting Services for Liquid Waste Collection Systems and Lulu Island Wastewater Treatment Plant Electrical, Instrumentation and Control Projects for up to a four (4) year term. The RFP identified the most qualified and competitive contractor for on-demand engineering services that fall within the defined scope for the specified term. Each project will be negotiated and awarded independently. The contract price is within the overall budget. 2. Proponents were invited by MV & BC Bid web sites and private invitation on June 18, Closing Date: July 23, Proposals received (exclusive of tax): Average Hourly Rate MTS Engineering Inc. $96.00 EIC Solutions Ltd. $ Autopro Automation Consultants Ltd. $ Opus DaytonKnight Consultants Ltd. $ Stantec Consulting Ltd. $ Tera Tech $ Ausenco Engineering Canada Inc. $ Cogent Industrial Technologies Ltd.* N/A MPC Consulting Ltd.* N/A QCA Systems Ltd.* N/A * Technical score did not pass the minimum 65% therefore were eliminated from further evaluation as stated in the RFP. 4. Proposals reviewed by: Contractual: Technical: Purchasing Division Staff Liquid Waste Services Department Staff 5. Award was made to the highest ranked proponent based on the evaluation criteria established in the RFP, who coincidentally provided the lowest average hourly rate. PAP - 82

83 AWARD OF CONTRACT Appendix A Page No. 14 RFP NO A contract was awarded September 14, 2015 for the GVS&DD. To: Southern Cross Holdings Ltd. in the amount of $2,907,648 (exclusive of tax) for Solid Waste Facility and Material Disposal Ban Inspection Services. The contract price is within the overall budget. 2. Proponents were invited by MV & BC Bid web sites and private invitation on July 21, Closing Date: August 11, Proposals received (exclusive of tax): Southern Cross Holdings Ltd. $2,907,648 Canadian Quality Control Inc. $9,334, Proposals reviewed by: Contractual: Technical: Purchasing Division Staff Solid Waste Services Department Staff 5. Award was made to the highest ranked proponent based on the evaluation criteria established in the RFP, who coincidentally provided the lowest cost. PAP - 83

84 AWARD OF CONTRACT Appendix A Page No. 15 NOIC NO A contract was awarded June 25, 2015 for the GVS&DD. To: Arrow Transportation Systems Inc. in the amount of $4,968,000 (exclusive of tax) for a five (5) year term, for beneficial use of Iona Island Wastewater Treatment Plant Dried Biosolids. The contract price is within the overall budget. 2. As the result of an unsolicited proposal, a Notice of Intent to Contract (NOIC) was advertised on MV & BC Bid web sites on November 20, Closing Date: December 4, No objections were received. 4. Proposal reviewed by: Contractual: Technical: Purchasing Division Staff Liquid Waste Services Department Staff 5. Award was made to the firm that submitted the unsolicited proposal. PAP - 84

85 AWARD OF CONTRACT Appendix A Page No. 16 RFP NO A contract was awarded August 28, 2015 for the GVWD. To: CWA Engineers Inc. in the anticipated amount of $619,819 (exclusive of tax) for consulting engineering services for the design and construction of the Central Park Pump Station electrical upgrade. The total anticipated value of this contract is expected to increase by an additional $8,500 to $628,319 to account for issues identified during negotiations as allowed for in the RFP. The initial award is limited to the preliminary design at a cost of $130,667 and subsequent phases of the work will be awarded subject to mutual agreement. The contract price is within the overall budget. 2. Proponents were invited by MV & BC Bid web sites and private invitation on March 24, Closing Date: April 23, Proposals received (exclusive of tax): CWA Engineers Inc. $619,819 Tetra Tech $662,734 Opus DaytonKnight Consultants Ltd. $676,013 CH2M Hill Canada $693,503 AECOM Canada Ltd. $728, Proposals reviewed by: Contractual: Technical: Purchasing Division Staff Water Services Department Staff 5. Award was made to the highest ranked proponent based on the evaluation criteria established in the RFP, who coincidentally provided the lowest cost. PAP - 85

86 AWARD OF CONTRACT Appendix A Page No. 17 NOIC NO A contract was awarded September 29, 2014 for the MVHC. To: Neal Staniszkis Doll Adams Architects (NSDA). in an amount up to $2,300,000 (exclusive of tax) for the Heather Place Redevelopment. The initial contract is for Phase I at a cost of $1,490,000 and Phase II may be awarded at an additional cost of $800,000 at the discretion of the Corporation. The contract price is within the overall budget. 2. A Notice of Intent to Contract (NOIC) was advertised on MV & BC Bid web sites on June 26, Closing Date: July 9, No qualified objections were received. 4. Proposal reviewed by: Contractual: Technical: Purchasing Division Staff Metro Vancouver Housing Department Staff 5. As a result of the RFP No NSDA were awarded a contract to support a rezoning application. This work developed over a period of two years and as such the Corporation issued a Notice of Intent to Contract (NOIC) for subsequent phases of the work. The NOIC expressed concerns of not having NSDA complete this work. No qualified objections were received. PAP - 86

87 Appendix B Page No. 1 STANDING OFFER AGREEMENTS The following Standing offer Agreements (SOA s) were accepted during this reporting period. SOA s are not contracts and do not constitute a commitment or guarantee by the Corporation to purchase. SOA s are open to multiple acceptances by the Corporation throughout the term and result in individual contracts with each acceptance. The estimated value of work noted below is based on actual need and available funding as determined through the annual budget approval process. Based on the nature of service, SOA s may be awarded to all compliant responders or may be limited based on the evaluation criteria established in the bid document. Title Temporary Clerical Services Number of Responses Received Twelve (12) Awarded To: 1. Altis Human Resources (Vancouver) Inc. 2. AngusOne Professional Recruitment 3. Apple One Employment Services 4. McNeil Nakamoto Recruitment Group 5. Miles Employment Group Ltd. 6. Randstad Canada Anticipated Term Over Five (5) Years Total Anticipated Value $2,300,000 PAP - 87

88 Appendix C Page No. 1 CONTRACTS AMENDED TO A VALUE OF MORE THAN $500,000 BUT NOT PREVIOUSLY REPORTED TO THE FINANCE COMMITTEE Tender No. DS PURCHASE ORDER NO Matcon Civil Constructors Inc. Maple Ridge Main West McKenney Creek Realignment for the GVWD 1. Original Value of Contract: $436, Amendment Value: $116, Amendment Number: Total Amended Value of Contract: $553, Budget Status: This contract is funded within the capital budget for this project. 6. Reasons for Amendment to Contract: Amendment No. 01 is mainly due to the need for sheet piling, the cost of which was identified as a provisional item in the contract. PAP - 88

89 Appendix D Page No. 1 AMENDMENT TO A PREVIOUSLY REPORTED CONTRACT RFP No PURCHASE ORDER NO Cleveland Dam East Abutment E2 Shaft Depressurization Stage 1 Drains Implementation for the GVWD 1. Name of Contractor: Jensen Drilling Company 2. Date Contract Reported: June Original Anticipated Reported Value of Contract (inclusive of tax): $1,584, Amendment Number: Value of Amendment (exclusive of tax): $866, Amendment Type: Additional Work 7. Total Revised Anticipated Amended Value of Contract (inclusive of tax): $2,451, Budget Status: This contract is funded within the capital budget for this program. 9. Reason for Amendment to Contract: Amendment No. 01 covers additional drilling costs as a result of unforeseen ground conditions, and revised drilling methodology. PAP - 89

90 Appendix D Page No. 2 AMENDMENT TO A PREVIOUSLY REPORTED CONTRACT TENDER NO PURCHASE ORDER NO Lynn Sewage Pump Station Upgrade for the GVS&DD 1. Name of Contractor: Graham Construction & Engineering 2. Date Contract Reported: June Original Anticipated Reported Value of Contract (inclusive of tax): $4,738, Amendment Number: Value of Amendment (exclusive of tax): $815, Amendment Type: Additional Work 7. Total Revised Anticipated Amended Value of Contract (inclusive of tax): $5,553, Budget Status: This contract is funded within the capital budget for this program. 9. Reason for Amendment to Contract: Amendment No. 01 covers changes primarily caused by unforeseen conditions that were revealed through the renovation of the facility and/or by opportunities taken to increase the operability and safety of the facility. PAP - 90

91 Appendix D Page No. 3 AMENDMENT TO A PREVIOUSLY REPORTED CONTRACT RFP No PURCHASE ORDER NO Consulting Engineering Services Related to the Sperling Pump Station Upgrading Project for the GVS&DD 1. Name of Contractor: AECOM Canada Ltd. 2. Date Contract Reported: April Original Anticipated Reported Value of Contract (inclusive of tax): $674, Amendment Number: Value of Amendment (exclusive of tax): $868, Amendment Type: Additional Work 7. Total Revised Anticipated Amended Value of Contract (inclusive of tax): $1,586, Budget Status: This contract is funded within the capital budget for this program. 9. Reason for Amendment to Contract: Amendment No. 01 covers construction and post-construction services that could not be accurately estimated when the previous phases of work were awarded. The increase is attributed to project complexity and additional scope to address construction management, operational concerns and municipal requirements. PAP - 91

92 Appendix D Page No. 4 AMENDMENT TO A PREVIOUSLY REPORTED CONTRACT RFP No PURCHASE ORDER NO Engineering Services for Solids Handling Upgrade Project at Iona Island Wastewater Treatment Plant (IIWWTP) for the GVS&DD 1. Name of Contractor: CH2M Hill Canada 2. Date Contract Reported: February Previously Reported Value of Contract (exclusive of tax): $4,258, Amendment Number: Value of Amendment (exclusive of tax): $633, Amendment Type: Additional services 7. Total Revised Anticipated Amended Value of Contract (exclusive of tax): $4,892, Budget Status: This contract is funded within the capital budget for this program. 9. Reason for Amendment to Contract: Amendment No. 02 covers additional engineering to accommodate a preferred site location resulting in additional geotechnical effort that will reduce construction costs and additional odour control measures. PAP - 92

93 Appendix D Page No. 5 AMENDMENT TO A PREVIOUSLY REPORTED CONTRACT RFP No PURCHASE ORDER NO Consulting Engineering Services to Upgrade Five (5) Gleneagles Pump Stations Phase B Detailed Design for the GVS&DD 1. Name of Contractor: AECOM Canada Ltd. 2. Date Contract Reported: October Original Anticipated Reported Value of Contract (inclusive of tax): $1,295, Amendment Number: Value of Amendment (exclusive of tax): $706, Amendment Type: Additional Work 7. Total Revised Anticipated Amended Value of Contract (inclusive of tax): $2,002, Budget Status: This contract is funded within the capital budget for this program. 9. Reason for Amendment to Contract: Amendment No. 01 covers additional detailed design hours and an anticipated amount for construction services. The increase in the detailed design is attributed to project complexity, additional scope and municipal requirements. PAP - 93

94 Appendix D Page No. 6 AMENDMENT TO A PREVIOUSLY REPORTED CONTRACT RFP No PURCHASE ORDER NO Installation of Angus Drive Main Phase 1 SW Marine Dr. to West 33 rd Avenue for the GVWD 1. Name of Contractor: Matcon Civil Constructors Inc. 2. Date Contract Reported: April Original Anticipated Reported Value of Contract (exclusive of tax): $9,158, Amendment Number: Value of Amendment (exclusive of tax): $923, Amendment Type: Additional Work 7. Total Revised Anticipated Amended Value of Contract (inclusive of tax): $10,082, Budget Status: This contract is funded within the capital budget for this program. 9. Reason for Amendment to Contract: Amendment No. 01 covers additional work requested and to be paid by the City of Vancouver and differing ground conditions. PAP - 94

95 Competitive Selection Packages Anticipated to be greater than $500,000 (Issued but not awarded) Appendix E As of September 25, 2015 Note: All contracts listed below are within the project budgets approved by the Board of Directors Tender/RFP RFSO No (Cancelled) Welding Inspection Services RFP No Consulting Engineering Services for Various Sewer Projects RFP No Waste, Organics, and Recycling Collection Services for Metro Vancouver Tender No (Cancelled) Kanaka Creek Regional Park Watershed Stewardship Centre Construction RFP No Consulting Engineering Services for Four Major Odour and Corrosion Control Projects RFP No Biosolids Soil Design, Fabrication, Marketing, Sales and Distribution RFP No Provision of Courier Services for Metro Vancouver RFP No Supply and Deliver of Filter Aid Polymer to the Seymour Capilano Filtration Plant Tender No Coquitlam Water Treatment Plant Improvements Project Hypochlorite Conversion, Gate House and Multi-Use Storage Building RFP No Supply and Delivery of Four (4) Raw Sewage Pumps c/w Motors and Variable Frequency Drives Sapperton Pump Station Replacement Project Closing Date June 5, 2014 April 30, 2015 June 11, 2015 May 21, 2015 June 16, 2015 August 27, 2015 August 6, 2015 September 3, 2015 October 6, 2015 September 29, 2015 PAP - 95

96 Appendix E Page No. 1 cont. RFP No Supply of Desktop & Laptop Computers and Servers RFP No Consulting Engineering Services for Preliminary Design, Detailed Design and Construction Engineering of Annacis Water Supply Tunnel Tender No Regal Place Façade Rehabilitation Tender No Kingston Gardens Targeted Roof Replacement RFP No Engineering Consulting Services for Feasibility Study of Four (4) Water Main Marine Crossings RFP No Supply and Delivery of One (1) New or Demo Unit Aerial Ladder Fire Truck RFP No Supply and Delivery of SS Chain and Ancillary Equipment for Sedimentation Tanks at Iona Island Wastewater Treatment Plant RFP No Consulting Engineering Services for the Queensborough Pump Station Project September 15, 2015 September 18, 2015 September 15, 2015 September 17, 2015 October 6, 2015 September 29, 2015 October 8, 2015 November 3, 2015 PAP - 96

97 5.7 To: From: Performance and Procurement Committee Phil Trotzuk, Chief Financial Officer Date: October 28, 2015 Meeting Date: November 13, 2015 Subject: Manager s Report RECOMMENDATION That the Performance and Procurement Committee receive the report titled Manager s Report dated October 28, 2015 for information. 1. Performance and Procurement Committee Work Plan Update Attachment 1 is the updated 2015 Work Plan indicating the status of the Committee s key priorities. 2. MFA Fall 2015 Issue (Verbal) Attachments: 1. Performance and Procurement Committee 2015 Work Plan PAP - 97

98 ATTACHMENT 1 Performance and Procurement Committee 2015 Work Plan Report Date: October 8, 2015 Committee Priority Status FEBRUARY: Review and Endorse Committee 2015 Work Plan Complete Review 2014 External Audit Plan Complete 2014 Results: Investment Review Position and Returns Complete Municipal Borrowing Requests for MFA Spring 2015 Issue Complete Tender / Contact Award Information Complete APRIL: 2014 Audited Financial Statements Complete 2014 External Audit Findings Report Complete Review 2014 Final Results: Operating Results vs Budget Complete Review 2014 Final Results: Capital Expenditures vs Budget Complete GVS&DD Development Cost Charges Revenue Fund Expenditure By law Complete Review 2014 Final Results: Development Cost Charges Collected Complete Tender / Contact Award Information Complete JULY: Review First 2015 Progress: Investment Review Position and Returns to April 30, 2015 Complete Review First 2015 Progress: Operating Results vs Budget to April 30, 2015 Complete Review First 2015 Progress: Capital Expenditures vs Budget to April 30, 2015 Complete Review First 2014 Progress: Development Cost Charges Collected to June 30, 2015 Complete GVWD Loan Authorization Bylaw Complete Municipal Borrowing Requests for MFA Fall 2015 Issue (If Applicable) Complete Tender / Contact Award Information Complete NOVEMBER: Review Second 2015 Progress: Investment Review Position and Returns to August 31, 2015 Complete Review Second 2015 Progress: Operating Results vs Budget to August 31, 2015 Complete Review Second 2015 Progress: Capital Expenditures vs Budget to August 31, 2015 Complete Municipal Borrowing Requests for MFA Spring 2016 Issue (If Applicable) Complete Tender / Contact Award Information Complete PAP - 98

99 To: From: Utilities Committee Andrew Wood, Director, O&M Water Services Date: October 9, 2015 Meeting Date: November 12, 2015 Subject: Water Treatment Plant Process Optimization RECOMMENDATION That the Utilities Committee receive for information the report titled Water Treatment Plant Process Optimization dated October 9, PURPOSE This report provides a summary of major water treatment plant optimization initiatives at the Seymour-Capilano Filtration Plant (SCFP) and the Coquitlam Water Treatment Plant (CWTP). BACKGROUND The GVWD has two state-of-the-art water treatment plants, Seymour-Capilano Filtration Plant (SCFP), and the Coquitlam Water Treatment Plant (CWTP). While both plants have been in operation for a number of years, staff are continuously seeking ways to optimize treatment processes to improve treated water quality and reduce operating costs. The following provides a brief summary of recent optimization initiatives completed at the two plants. SEYMOUR-CAPILANO FILTRATION PLANT (SCFP) The Seymour-Capilano Filtration Plant (SCFP), located in the Lower Seymour Conservation Reserve, is the largest drinking water filtration plant in Canada. Operating since late 2009, it can treat up to 1.8 billion litres per day. The main drinking water treatment processes are filtration and ultraviolet (UV) disinfection. The building is LEED Gold certified, includes EcoSmart Concrete, generates low CO emissions and is energy and water use efficient. The recent optimization projects have been focused on the filtration and residuals handling portions of the plant. Filter Backwash Optimization As part of the drinking water treatment process, the plant uses 24 mixed media filter beds to filter water. As particulate matter becomes trapped in the filter media, the pressure drop across the filter increases and water flow through the filter decreases. The filters must be periodically backwashed to remove accumulated particulates and microorganisms in the filter. In 2013, modifications were made to inject sodium hypochlorite solution (SHS) into the water used to backwash the filter. The SHS solution has inhibited microbial growth on the filter media and as a result, the filters can operate significantly longer between backwash cycles. Longer operating times between backwash cycles reduces the electricity used and equipment wear. Attachment No. 1 refers. PAP - 99

100 Clarifier Operation Optimization Part of the process at the SCFP uses settling tanks, called clarifiers, to settle out solids (sludge) from the filter backwash water. In 2013, changes were made to pump operations to allow them to run continually at a lower speed instead of multiple start/stops at higher speed. This has the benefit of a longer operating life. At the same time, changes were made to the associated valves to maintain higher sludge concentrations going to the thickener. This has resulted in 40% less water disposed with the sludge. Residuals Handling Optimization Sludge from the process is then dewatered using belt filter presses. These presses thicken the sludge and increase the solids concentration. Over the past two years, staff have optimized the belt filter process through enhanced training sessions for staff on the belt press operation, modified control programs and added deflectors to discharge chutes. In addition, changes were made to the positioning of trailers under the discharge chutes which are used to haul the sludge away from the plant. By doing so, the density of the residuals has increased by 20%, and the number of trailer loads required has decreased by more than 25%. Attachment No. 2 refers. COQUITLAM WATER TREATMENT PLANT This facility is located within the Coquitlam Watershed, north of the City of Coquitlam municipal boundary. It can treat up to 1.2 billion litres of drinking water each day. The main drinking water treatment processes are ultraviolet disinfection (since 2014) and ozonation (since 2000). The UV project obtained LEED Gold designation and includes green roofs, enhanced salmon habitat, hydronic heating and cooling, and UV technology which uses 30% less energy than conventional water treatment processes. UV Disinfection Power Consumption Optimization The ultraviolet (UV) disinfection system at the CWTP uses ultraviolet light to remove chlorineresistant organisms such as Giardia and Cryptosporidium that are harmful to humans. The system uses Low Pressure High Output (LPHO) UV lamps. Compared to Medium Pressure UV lamps, LPHO lamps use only 1/3 of the energy to treat the same amount of water. As part of the design, the system is also able to dim the lamps between 30 to 100%, and turn off sections that are not needed for treatment, thereby providing additional energy savings. Since start-up in 2014, staff have been monitoring and adjusting the system operation, including chosen performance factors, to find the appropriate balance of operational performance and energy conservation. By doing so, the actual electricity costs have been lower than estimated prior to startup. UV Transmittance Analyzer Improvements The dosage of ultraviolet (UV) light is that is used to disinfect the water is controlled by UV Transmittance (UVT) analyzers that measure the ability of light to pass through the water which is then used to apply the appropriate UV dosage level. The analyzers are located in sampling pipes that are used to monitor the transmittance. PAP - 100

101 Recently the piping system was reconfigured by adding two sample pumps and related instrumentation to improve operations and ease of maintenance. This minor but important modification reduces the potential for air entrainment that affects the accuracy of the instrumentation, which requires operator intervention to reset. Attachment No. 3 refers. ALTERNATIVES This is an information report; no alternatives are presented. FINANCIAL IMPLICATIONS The water treatment plant process optimization initiatives as described in this report have produced both operational efficiencies and cost savings. The annual cost savings estimated for each of the two plants are $270,000 and $130,000, respectively. These savings have been included in the 2016 GVWD budget. SUMMARY / CONCLUSION Water treatment staff are continuously seeking to optimize treatment processes at the Seymour- Capilano and Coquitlam water treatment plants to improve treated water quality, improve efficiencies and reduce operating costs. This report summarizes process optimization projects at the plants which have reduced operating costs by approximately $400,000 per year. Attachments: 1. SCFP Filter Backwash 2. SCFP Residuals Handling 3. CWTP UV Disinfection PAP - 101

102 Attachment 1 SCFP Filter Backwash Filter backwash at start of cycle Filter backwash at end of cycle PAP - 102

103 SCFP Residuals Handling Attachment 2 Belt Filter Press Truck Loading in Residuals Handling Facility PAP - 103

104 CWTP UV Disinfection Attachment 3 CWTP UV Gallery CWTP UVT Analyzers PAP - 104