GREATER VANCOUVER REGIONAL DISTRICT FINANCE COMMITTEE

Transcription

1 GREATER VANCOUVER REGIONAL DISTRICT FINANCE COMMITTEE REGULAR MEETING Friday, February 14, :00 a.m. 2 nd Floor Boardroom, 4330 Kingsway, Burnaby, British Columbia. A G E N D A 1 1. ADOPTION OF THE AGENDA 1.1 February 14, 2014 Regular Meeting Agenda That the Finance Committee adopt the agenda for its regular meeting scheduled for February 14, 2014 as circulated. 2. ADOPTION OF THE MINUTES 2.1 November 22, 2013 Regular Meeting Minutes That the Finance Committee adopt the minutes of its regular meeting held November 22, 2013 as circulated. 3. DELEGATIONS No items presented. 4. INVITED PRESENTATIONS No items presented. 1 Note: Recommendation is shown under each item, where applicable. FIN - 1

2 Finance Committee Regular Agenda February 14, 2014 Agenda Page 2 of 2 5. REPORTS FROM COMMITTEE OR STAFF Finance Committee Priorities and Work Plan Designated Speaker: Phil Trotzuk a) That the Finance Committee endorse the work plan contained in the report dated January 23, 2014 titled 2014 Finance Committee Priorities and Work Plan. b) That the Finance Committee direct staff to schedule and organize a Finance Committee Workshop prior to the next scheduled Finance Committee meeting to discuss and establish the Committee s terms of reference with this report dated January 23, 2014 titled 2014 Finance Committee Priorities and Work Plan as reference material for the workshop. 5.2 GVRD Mortgages with Metro Vancouver Housing Corporation (MVHC) Designated Speaker: Phil Trotzuk and Don Littleford a) That the GVRD Board approve continuing to provide first mortgage financing on the following three MVHC properties. The mortgages will be for a five year term, and will have a variable interest rate based upon Metro Vancouver s cost of capital. i. Regal Place Hotel property at 144 West Hastings Street, Vancouver BC, having a legal description of PID , Lot 8, Block 28, District Lot 541 Plan 210, in the principal amount of $ 566,159 due for renewal March 15, 2014, with an annual principal repayment of $22,952 plus interest at a rate to be fixed annually, to approximate Metro Vancouver s weighted average cost of capital; ii. Manor House property at 145 West 5 th Street, North Vancouver, BC having a legal description of PID , Lot I Block 125, District Lot 274, Plan 14362, in the principal amount of $ 1,594,619, due for renewal March 15, 2014, with an annual principal repayment of $64,647 plus interest at a rate to be fixed annually, to approximate Metro Vancouver s weighted average cost of capital; iii. Crown Manor property at th Street, New Westminster, BC having a legal description of PID , Lot C (Explanatory Plan 28847) of Lot 22 Suburban Block 7 Plan 2620, in the principal amount of $939,264, due for renewal July 15, 2014, with an annual principal repayment of $38,674 plus interest at a rate to be fixed annually, to approximate Metro Vancouver s weighted average cost of capital; b) That the GVRD Board direct the Corporate Secretary to publish in a newspaper, pursuant to requirements of Section 185 of the Local Government Act, Metro Vancouver s intention to lend money to the MVHC FIN - 2

3 Finance Committee Regular Agenda February 14, 2014 Agenda Page 3 of DCC Reserve Fund Expenditure Bylaw No. xxx, 2014 Designated Speaker: Phil Trotzuk a) That the GVS&DD Board introduce and give first, second and third reading to Greater Vancouver Sewerage and Drainage District Development Cost Charge Reserve Fund Expenditure Bylaw No. 282, b) That the GVS&DD Board reconsider, pass and finally adopt Greater Vancouver Sewerage and Drainage District Development Cost Charge Reserve Fund Expenditure Bylaw No. 282, Semi Annual Report on GVS&DD Development Cost Charges Designated Speaker: Phil Trotzuk That the Finance Committee receive the report dated February 5, 2014 titled Semi Annual Report on GVS&DD Development Cost Charges for information GVWD and GVS&DD Capital Projects Designated Speaker: Frank Huber and Mark Ferguson That the Committee receive for information the report titled 2014 GVWD and GVS&DD Capital Projects dated February 6, Investment Position and Returns September 1 to December 31, 2013 Designated Speaker: Dean Rear That the Finance Committee receive the report titled Investment Position and Returns September 1 to December 31, 2013 dated January 27, 2014 for information. 5.7 Tender/Contract Award Information October, November and December 2013 Designated Speaker: Tracey Husoy That the Finance Committee receive the report titled Tender/Contract Award Information October, November and December 2013, dated January 27, 2014 for information. 5.8 Manager s Report Designated Speaker: Phil Trotzuk That the Finance Committee receive the report titled Manager s Report dated January 28, 2014 for information. 6. INFORMATION ITEMS No items presented. 7. OTHER BUSINESS No items presented FIN - 3

4 Finance Committee Regular Agenda February 14, 2014 Agenda Page 4 of 4 8. RESOLUTION TO CLOSE MEETING That the Finance Committee close its regular meeting scheduled for February 14, 2014 pursuant to the Community Charter provisions, Section 90 (1) (l) 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 or more of the following: (l) discussions with regional district officers and employees respecting regional district objectives, measures and progress reports for the purposes of preparing an annual report under section 98 [annual municipal report] of the Charter. 9. ADJOURNMENT/TERMINATION That the Finance Committee adjourn/conclude its regular meeting of February 14, Membership: Walton, Richard (C) North Vancouver District Jordan, Colleen (VC) Burnaby Baldwin, Wayne - White Rock Brodie, Malcolm Richmond Clark, Rod C. - North Vancouver City Daykin, Ernie Maple Ridge Froese, Jack Langley Township Jackson, Lois - Delta Jang, Kerry - Vancouver Lewis, Michael West Vancouver Rasode, Barinder Surrey Reid, Mae Coquitlam Stone, Andrew - Bowen Island FIN - 4

5 GREATER VANCOUVER REGIONAL DISTRICT FINANCE COMMITTEE Minutes of the Regular Meeting of the Greater Vancouver Regional District (GVRD) Finance Committee held at 9:06 a.m. on Friday, November 22, 2013 in the 2 nd Floor Boardroom, 4330 Kingsway, Burnaby, British Columbia. PRESENT: Chair, Director Richard Walton, North Vancouver District Vice Chair, Director Colleen Jordan, Burnaby Director Wayne Baldwin, White Rock Director Malcolm Brodie, Richmond Councillor Rod Clark, North Vancouver City Director Jack Froese, Langley Township Director Lois Jackson, Delta Director Barinder Rasode, Surrey Director Mae Reid, Coquitlam Director Andrew Stone, Bowen Island ABSENT: Director Ernie Daykin, Maple Ridge Director Kerry Jang, Vancouver Councillor Michael Lewis, West Vancouver STAFF: Phil Trotzuk, Chief Financial Officer, Financial Services Carol Mason, Commissioner/Chief Administrative Officer Klara Kutakova, Assistant to Regional Committees, Board and Information Services, Corporate Services 1. ADOPTION OF THE AGENDA 1.1 November 22, 2013 Regular Meeting Agenda It was MOVED and SECONDED That the Finance Committee: a) amend the agenda for its regular meeting scheduled for November 22, 2013 by adding the following items: i. item 7.1 Purpose of the Finance Committee; ii. item 7.2 Large Projects Financing; iii. item 7.3 Financial Analysis of the MMBC PPP Municipal Contracts; iv. item Service Financing; and b) adopt the agenda as amended. CARRIED Minutes of the Regular Meeting of the GVRD Finance Committee held on Friday, November 22, 2013 Page 1 of 7 FIN - 5

6 2. ADOPTION OF THE MINUTES 2.1 October 18, 2013 Regular Meeting Minutes 2.2 October 18, 2013 Joint Finance, Intergovernmental, Utilities and Zero Waste Meeting Minutes It was MOVED and SECONDED That the Finance Committee adopt the minutes of its regular meeting held October 18, 2013 as circulated and receive for information the minutes of the Joint Finance, Intergovernmental, Utilities and Zero Waste special meeting held October 18, CARRIED 3. DELEGATIONS No items presented. 4. INVITED PRESENTATIONS No items presented. 5. REPORTS FROM COMMITTEE OR STAFF 5.1 GVRD Temporary Borrowing Authority Bylaw No. 1195, 2013 Report dated October 22, 2013, from Dean Rear, Comptroller-Treasury, Financial Services, seeking renewal of the authority for 2014 which permits temporary borrowing, should it be required at any point during the year. Main Motion It was MOVED and SECONDED a) That the Board give first, second and third reading to Greater Vancouver Regional District Temporary Loan Bylaw 1195, 2013 which authorizes the borrowing from the District s Banker or others in the course of the calendar year 2014 in anticipation of the collection of its revenue, of a sum or sums of money, the outstanding total of which shall not exceed $10 million by the issue of promissory notes or by such other means as are appropriate. b) That the Board reconsider, pass and finally adopt Greater Vancouver Regional District Temporary Loan Bylaw 1195, In response to a question, clarification was provided that $10 million is an aggregate sum for all three entities. Amendment to the Main Motion It was MOVED and SECONDED That the Finance Committee amend the Main Motion by adding after the phrase at any one time the phrase,in aggregate for all Metro Vancouver entities,. CARRIED Minutes of the Regular Meeting of the GVRD Finance Committee held on Friday, November 22, 2013 Page 2 of 7 FIN - 6

7 Question on the Main Motion as Amended Question was called on the Main Motion as amended and it was CARRIED 5.2 GVWD Temporary Borrowing Authority Report dated October 22, 2013, from Dean Rear, Comptroller-Treasury, Financial Services, seeking renewal of the authority for 2014 which permits temporary borrowing, should it be required at any point during the year. It was MOVED and SECONDED That the GVWD Board authorize the borrowing from the District s Banker or others in the course of the calendar year 2014 in anticipation of the collection of its revenue, of a sum or sums of money, the outstanding total of which shall not exceed $10 million, in aggregate for all Metro Vancouver entities, at any one time, by the issue of promissory notes or by such other means as are appropriate. CARRIED 5.3 GVS&DD Temporary Borrowing Authority Report dated October 22, 2013, from Dean Rear, Comptroller-Treasury, Financial Services, seeking renewal of the authority for 2014 which permits temporary borrowing, should it be required at any point during the year. It was MOVED and SECONDED That the GVS&DD Board authorize the borrowing from the District s Banker or others in the course of the calendar year 2014 in anticipation of the collection of its revenue, of a sum or sums of money, the outstanding total of which shall not exceed $10 million, in aggregate for all Metro Vancouver entities, at any one time, by the issue of promissory notes or by such other means as are appropriate. CARRIED 5.4 Head Office West Wall Water Ingress Remediation Report dated November 6, 2013, from Greg Smith, Director IT and Emergency Management, Corporate Services, putting forward the proposal and recommendation for remediation of the Head Office west wall water ingress issue and seeking funding for its immediate implementation. It was MOVED and SECONDED That the GVRD Board approve the use of Corporate Reserve funds up to $705,000 (exclusive of GST) to implement and fund the attached proposal as put forward in order to maintain asset value and exterior wall integrity of the Head Office building. CARRIED Minutes of the Regular Meeting of the GVRD Finance Committee held on Friday, November 22, 2013 Page 3 of 7 FIN - 7

8 5.5 Financial Performance Report as of August, 2013 Report dated October 21, 2013, from Phil Trotzuk, Chief Financial Officer, Financial Services, presenting an update on financial performance to the end of August 2013 including a projection to the end of the fiscal year. Discussion ensued on the allocation of a financial bequest recently received by Metro Vancouver for parks programs and projects. Request of Staff Staff was requested to update the Finance Committee once the plan for allocation of the funds received through the bequest will be finalized by the Parks Committee. Discussion ensued on the guidelines dealing with donations to Metro Vancouver. It was MOVED and SECONDED That the Finance Committee direct staff to prepare a draft policy dealing with donations to Metro Vancouver. CARRIED It was MOVED and SECONDED That the Finance Committee receive the report dated October 21, 2013 titled Financial Performance Report as of August 2013 for information. CARRIED 5.6 Semi-Annual Report on GVS&DD Development Cost Charges Report dated August 13, 2013, from Phil Trotzuk, Chief Financial Officer, Financial Services, reporting on the 2013 GVS&DD Development Cost Charge (DCC) revenues and any implications on their adequacy, as required in the Board s policy. Members commented on the following: o Concern about adequacy of DCCs charged o The need for DCCs to be geared to the cost of a project at that time o Request that a report on DCCs includes: o the DCC formula, a specific amount charged, charges applicable to individual sewerage areas; and the use of DCCs raised o Annacis Island Wastewater Treatment Plant capacity increase needed to accommodate the rapid growth of the South of the Fraser communities o The benefits of annual updates on DCCs amount received by some municipalities o The need to start planning for asset replacement and capacity increase funding o Restrictive nature of the use of DCCs; the potential to use DCCs for other purposes than the new growth Minutes of the Regular Meeting of the GVRD Finance Committee held on Friday, November 22, 2013 Page 4 of 7 FIN - 8

9 Request of Staff Staff was requested to inform the Finance Committee on the timeline for the development of a report pertaining to the development cost charges. It was MOVED and SECONDED That the Finance Committee receive the report dated August 13, 2013, titled Semi-Annual Report on GVS&DD Development Cost Charges for information. CARRIED 5.7 Tender/Contract Award Information September 2013 Report dated October 31, 2013, from Tracey S. Husoy, Purchasing and Risk Manager, Financial Services, informing about contracts, handled through the Purchasing Division, with a total anticipated value at or in excess of $250,000. It was MOVED and SECONDED That the Finance Committee receive the report titled Tender/Contract Award Information September 2013, dated October 31, 2013 for information. CARRIED 5.8 Manager s Report Report dated November 4, 2013, Phil Trotzuk, Chief Financial Officer, Financial Services, providing an update on the Finance Committee 2013 workplan. 6. INFORMATION ITEMS Discussion ensued on the use of fly and bottom ash. It was MOVED and SECONDED That the Finance Committee direct staff to draft a memorandum for the Finance Committee outlining the current and potential use of bottom and fly ash, restrictions to the use and financial implications to the region. CARRIED It was MOVED and SECONDED That the Finance Committee receive the report titled Manager s Report, dated November 4, 2013 for information. CARRIED 6.1 Quarterly update to new Waste-to-Energy Capacity Project Report dated October 29, 2013, from Sarah Wellman, Acting Project Manager, New Waste to Energy Capacity Project, Solid Waste Services, updating the Committee on progress on developing New Waste to Energy (WTE) Capacity. Minutes of the Regular Meeting of the GVRD Finance Committee held on Friday, November 22, 2013 Page 5 of 7 FIN - 9

10 6.2 Lions Gate Secondary Wastewater Treatment Plant Quarterly Report Report dated August 7, 2013, from Fred Nenninger, Manager, Policy Planning Analysis and WWTP Upgrade, providing an update on the work underway to complete the Project Definition Phase for the Lions Gate Secondary Wastewater Treatment Plant (LGSWWTP) upgrade. It was MOVED and SECONDED That the Finance Committee receive for information the following reports: 6.1 Quarterly update to new Waste-to-Energy Capacity Project; and 6.2 Lions Gate Secondary Wastewater Treatment Plant Quarterly Report. CARRIED 7. OTHER BUSINESS Agenda Varied Agenda items 7.1 and 7.2 were considered concurrently. 7.1 Purpose of the Finance Committee 7.2 Large Projects Financing Discussion ensued on the Finance Committee role as a policy maker and advisor on regional financial matters as opposed to a formal approver. Suggestion was made that the role of the Committee be discussed at a January 2014 Finance Committee workshop, to which the Board Chair and Vice Chair would be invited. It was MOVED and SECONDED That the Finance Committee direct staff to organize a Committee workshop early in 2014, examining the role and mandate of the Finance Committee and its Terms of Reference and workplan. CARRIED 7.3 Financial Analysis of the MMBC PPP Municipal Contracts Concerns were expressed about the long-term financial implications of Multi- Materials BC s (MMBC) Packaging and Printed Papers (PPP) program contract on communities. Request of Staff Staff was requested to provide the Board with an update on the MMBC PPP and the long-term financial implications of the contract on communities and taxpayers Service Financing Members were informed that the UBCM issued on November 6, 2013 a call for input, seeking local governments comments on a report, which proposes a province-wide levy on landlines and wireless devices to support 911 services. The deadline for providing feedback is November 29, Minutes of the Regular Meeting of the GVRD Finance Committee held on Friday, November 22, 2013 Page 6 of 7 FIN - 10

11 Concerns were expressed about: Distribution of the levy across the region High administration costs Short deadline for providing feedback on the 911 funding model It was MOVED and SECONDED That the Finance Committee: a) direct staff to draft a report commenting on the proposed 911 services financing model and invite E-Comm representatives to the meeting, at which the report will be presented; and b) direct the Chief Administrative Officer to contact the UBCM immediately to communicate Metro Vancouver s concern with the November 29, 2013 deadline, set for local government feedback on the proposed province wide call answer levy. CARRIED 8. RESOLUTION TO CLOSE MEETING No items presented. 9. ADJOURNMENT/TERMINATION It was MOVED and SECONDED That the Finance Committee conclude its regular meeting of November 22, CARRIED (Time: 11:18 a.m.) Klara Kutakova, Assistant to Regional Committees Richard Walton, Chair FINAL Minutes of the Regular Meeting of the GVRD Finance Committee held on Friday, November 22, 2013 Page 7 of 7 FIN - 11

12 5.1 To: From: Finance Committee Phil Trotzuk, Chief Financial Officer Date: January 23, 2014 Meeting Date: February 14, 2014 Subject: 2014 Finance Committee Priorities and Work Plan RECOMMENDATION a) That the Finance Committee endorse the work plan contained in the report dated January 23, 2014 titled 2014 Finance Committee Priorities and Work Plan. b) That the Finance Committee direct staff to schedule and organize a Finance Committee Workshop prior to the next scheduled Finance Committee meeting to discuss and establish the Committee s terms of reference with this report dated January 23, 2014 titled 2014 Finance Committee Priorities and Work Plan as reference material for the workshop. PURPOSE To provide the Finance Committee with the key priorities and work plan for the year BACKGROUND At its October 18, 2013 special meeting, the Joint Finance, Intergovernmental & Administration, Utilities and Zero Waste Committees endorsed the 2014 Business Plan(s) and Budget for the Metro Vancouver Districts and Housing Corporation which served as the basis the 2014 Budget approved by the Board on November 15, The Business Plan(s) were used to develop the proposed priorities in the Finance Committee s work plan presented in this report. DISCUSSION In recent months, much discussion has taken place between the Committee and staff regarding the role of the Finance Committee moving forward. Many committee members have expressed a lack of clarity as to the role of the committee and the sense that the role has changed in recent years with many issues/reports now being reviewed only by other committees. The scheduled Finance Committee meetings for 2014 have been reduced to four with additional meetings to be scheduled should the need arise. This is the result of the fact that, over the past few years, several meetings have been cancelled due to a lack of business. In light of organizational changes at Metro Vancouver, the changing environment in which we operate, fewer scheduled meetings and the lack of a clear Finance Committee mandate, it seems appropriate to take this opportunity to review the existing Committee terms of reference and either reaffirm the existing mandate or establish a new mandate moving forward. The work plan presented in this report outlines key priorities of the Financial Services Department and the Finance Committee which is consistent with the existing Finance Committee s terms of reference provided in Attachment 1 and the priorities undertaken by the Committee in recent years. FIN - 12

13 2014 Priorities: Refine and enhance the new budget and financial planning process including 5-year financial plans. This includes the review and enhancement of existing systems. Complete review and updating of Goods, Services and Real Estate procurement policies. Complete, in conjunction with Liquid Waste Services, the review and recommendations regarding appropriate Liquid Waste Development Cost Charge rates. Continue the ongoing financial oversight of Metro Vancouver operations including operating and capital expenditure budget management, contract management, investments as well as statutory reporting requirements. Commence a longer term financial planning process which looks at the current and future financial impact of Metro Vancouver services and includes a review of the components of the Debt Management Strategy and other key financial policies. Review current banking practices and processes with our banking partners. Tender for external audit services. Commence the process of upgrading or replacing the existing financial system. This includes assessing all systems containing/utilizing financial information to ensure data integrity and efficiency. Continue to review and enhance existing processes and procedures with the objective of improving efficiency and enhancing effectiveness. The 2014 work plan proposed for the Finance Committee is provided in Attachment 2. The Committee will be updated on the status of the actions and projects in this work plan at each Committee meeting. ALTERNATIVES 1. That the Finance Committee endorse the 2014 Work Plan as presented and direct staff to schedule and organize a Finance Committee Workshop prior to the next scheduled Finance Committee meeting to discuss and establish the Committee s terms of reference with this report dated January 23, 2014 titled 2014 Finance Committee Priorities and Work Plan as reference material for the workshop. 2. That the Finance Committee provide alternative direction to staff. FINANCIAL IMPLICATIONS The priorities in the 2014 work plan of the Finance Committee, as presented, are consistent with the key actions included in the Business Plans and Budget approved by the Board on November 15, SUMMARY / CONCLUSION The work plan presented in this report conveys the key priorities for the Financial Services department and Finance Committee in 2014 and is consistent with its existing terms of reference and the 2014 Budget approved by the Board. Staff is recommending, under Alternative 1, that the Finance Committee endorse the 2014 Work Plan as presented and that a workshop be held to review the existing Finance Committee terms of reference to either reaffirm the existing mandate or establish a new mandate for the committee moving forward. FIN - 13

14 Attachments: 1. Finance Committee Terms of Reference 2. Finance Committee 2014 Work Plan FIN - 14

15 ATTACHMENT 1 Finance Committee Terms of Reference The Finance Committee is the standing committee of the Metro Vancouver Board which provides advice and recommendations to the Board on financial programs and issues. The Finance Committee s scope of work includes overseeing the preparation of annual budgets and long range financial plans, borrowing and investing activities, contracting policy, financial reporting and properties administration policies. The Finance Committee will have a central concern for the financial sustainability of the Metro Vancouver organization and, more broadly still, the economic and financial well being and sustainability of the regional community as a whole. The Finance Committee is the forum to which staff report on Finance programs, projects and policies. The Committee s responsibilities are: To review and monitor the annual work program for programs assigned to the committee and make recommendations to the Metro Vancouver Board, as necessary, on any changes in program scope and priorities; To consider staff reports on policies, projects and programs and make recommendations to the Metro Vancouver Board on the appropriate actions; To hear and consider public delegations on matters within the scope of the committee s purview and, where appropriate, make recommendations to the Metro Vancouver Board arising out of such delegations; To pursue matters referred to the committee by the Board and report back to the Board expeditiously, as required. In carrying out these responsibilities, the Committee may provide advice, guidance or direction to staff as to the scope and priority of work to be carried out, including new tasks to be undertaken. However, where such direction represents a sufficiently significant change in the previously approved work program, or a significant expenditure of funds, or runs contrary to the advice of professional staff, the Committee shall refer the matter to the Board, with appropriate recommendations, for decision by the Board. The Committee Chair, or in the absence of the Committee Chair, the Committee Vice-Chair will usually be the chief spokesperson on matters of public interest within the Committee s purview. Some issues may be of such public profile that it will be appropriate for the Board Chair or Vice Chair to be the chief spokesperson; on technical matters or where the status is still at the staff proposal level, the Commissioner/CAO or senior staff may be the appropriate chief spokesperson. FIN - 15

16 - 2 - Where necessary and practical, the Board Chair, the Committee Chair and the Commissioner/CAO (or vice-chairs and deputy) will confer to determine the most appropriate course of action. The General Manager, Financial Services / Chief Financial Officer will be the committee manager to the Committee. The committee manager will be responsible for coordinating agendas and be the principal point of contact for committee members. Committee Meetings The Finance Committee meets monthly, except for August and December and has special meetings as required. A quorum of 50% plus one of the Committee membership is required to conduct Committee business. Relationship with Other Board Committees Expenditures within approved budgets are the purview of the relevant standing committee, but items which entail significant changes to the approved budget should be referred to the Finance Committee for their recommendation to the Board as well as the recommendation of the originating standing committee. Similarly matters considered by the Finance Committee may have relevance for other standing committees. Matters involving Metro Vancouver s strategic relationships with other governments, agencies and communities are under the purview of the Intergovernmental and Administration Committee. While the Finance Committee will receive reports and discuss issues under its purview, the Committee Chair will keep the Intergovernmental and Administration Committee apprised of any intergovernmental implications arising from such reports and discussions. The committee manager will attempt to keep the committee apprised of significant reports with inter-committee implications. Committee Membership The Chair, Vice Chair, and members are appointed annually by the Chair of the Metro Vancouver Board of Directors. FIN - 16

17 ATTACHMENT 2 Finance Committee> 2014 Work Plan Report Date: January 23, 2014 Committee Priority Status Finance Committee Terms of Reference Pending Review 2013 Results: Investment results In Progress Review 2013 Results: Operations Pending Review 2013 Results: Capital expenditures Pending Review 2013 Results: Development cost charges collected In Progress 2013 Audited Financial Statements Pending Goods, services real estate and investments procurement policies in conjunction In Progress with the updated Officers and Delegation By-law Review GVS&DD Development Cost Charge rates in conjunction with Utilities In Progress Committee Review First 2014 Progress: Investment results Pending Review First 2014 Progress: Operations Pending Review First 2014 Progress: Capital expenditures Pending Review First 2014 Progress: Development cost charges collected Pending Update on Banking practices and services Pending Review Financial impact of Metro Vancouver services in conjunction with a review Pending of the Debt Management Strategy Review Second 2014 Progress: Investment results Pending Review Second 2014 Progress: Operations Pending Review Second 2014 Progress: Capital expenditures Pending 2015 Priorities and Business Plan Pending Metro Vancouver year Financial Plan Pending GVRD Financial Plan By-law Pending FIN - 17

18 5.2 To: From: Finance Committee Don Littleford, Director, Metro Vancouver Housing Corporation Phil Trotzuk, Chief Financial Officer Date: January 21, 2014 Meeting Date: February 14, 2014 Subject: GVRD Mortgages with Metro Vancouver Housing Corporation (MVHC) RECOMMENDATION a) That the GVRD Board approve continuing to provide first mortgage financing on the following three MVHC properties. The mortgages will be for a five year term, and will have a variable interest rate based upon Metro Vancouver s opportunity cost of capital. i. Regal Place Hotel property at 144 West Hastings Street, Vancouver BC, having a legal description of PID , Lot 8, Block 28, District Lot 541 Plan 210, in the principal amount of $ 566,159 due for renewal March 15, 2014, with an annual principal repayment of $22,952 plus interest at a rate to be fixed annually, to approximate Metro Vancouver s weighted average opportunity cost of capital; ii. Manor House property at 145 West 5 th Street, North Vancouver, BC having a legal description of PID , Lot I Block 125, District Lot 274, Plan 14362, in the principal amount of $ 1,594,619, due for renewal March 15, 2014, with an annual principal repayment of $64,647 plus interest at a rate to be fixed annually, to approximate Metro Vancouver s weighted average opportunity cost of capital; iii. Crown Manor property at th Street, New Westminster, BC having a legal description of PID , Lot C (Explanatory Plan 28847) of Lot 22 Suburban Block 7 Plan 2620, in the principal amount of $939,264, due for renewal July 15, 2014, with an annual principal repayment of $38,674 plus interest at a rate to be fixed annually, to approximate Metro Vancouver s weighted average opportunity cost of capital; b) That the GVRD Board direct the Corporate Secretary to publish in a newspaper, pursuant to requirements of Section 185 of the Local Government Act, Metro Vancouver s intention to lend money to the MVHC. PURPOSE To provide first mortgage financing for three properties owned by Metro Vancouver Housing Corporation (MVHC). GVRD has provided first mortgage financing since these properties were acquired by MVHC. This has been done, and will continue to be done on a break-even basis to the GVRD and provides MVHC with reasonable cost financing, with maximum flexibility and low administrative costs. This is within GVRD s general corporate powers, under subsection 176 (1) (c) FIN - 18

19 of the Local Government Act, in that it provides assistance for the purpose of benefiting the community or any aspect of the community. DISCUSSION MVHC is a not for profit corporation under the British Columbia Business Corporations legislation and is a wholly owned subsidiary of the GVRD. The GVRD has provided first mortgage financing to assist with the purchase of three properties, the Regal Place Hotel in Vancouver, Manor House in North Vancouver (both purchased in 1998) and Crown Manor in New Westminster (purchased in 2002). The mortgages cover five year terms with a variable interest rate, charged monthly, based on Metro Vancouver s opprortunity cost of capital. The opportunity cost of capital represents the rate of interest available had the monies been invested rather than loaned to the MVHC. These mortgages require renewal every five years, and have provided the MVHC with attractive interest rates and administrative flexibility. They are registered on title with the Land Titles Office. The GVRD has good security for the debt in that the loan to value ratios are 28% for Regal Place, 19% for Manor House, and 35% for Crown Manor, based on our current assessed values. The three properties were acquired by MVHC to provide additional affordable rental housing in Metro Vancouver, following the termination of previous senior government programs. These buildings provide 118 units of affordable rental housing. Manor House is a 50 unit complex located in the lower Lonsdale area of North Vancouver and Crown Manor is a 28 unit complex located near downtown New Westminster. Both locations are ideal for affordable housing. The Regal Place Hotel is located in the downtown eastside of Vancouver and is in a long term stable funding relationship with Vancouver Coastal Health to provide units dedicated to individuals in substance abuse recovery. Other financing options are: 1. MFA Debenture Financing MVHC cannot borrow directly from MFA, but could borrow through the conduit of Metro Vancouver. While the interest rate would be comparable, and the security for Metro Vancouver the same, there would be approximately $30,000 in set up fees with this alternative. There is no flexibility with debenture debt to change terms, or pay off debt early. This alternative is essentially the same as the current arrangement, but with the added restrictions of debenture financing. 2. BC Housing BC Housing routinely tenders mortgage portfolios to the open market on behalf of affordable housing providers under operating agreements. Rates are no better than Metro Vancouver or MFA can provide. BC Housing would require that the 3 properties be put under operating agreements. The decision to bind these three MVHC properties under the BC Government is not appealing. As well, $81,000 in fees for CMHC mortgage insurance, legal, survey, property appraisal and condition assessments would be required. 3. Market Financing - Traditional commercial mortgages could be obtained. Similar to BC Housing, the up-front costs of this option are significant. Lenders require surveys, property appraisals and environmental and building assessments to be completed on each property. In addition, there are legal fees, CMHC mortgage insurance underwriting fees and fees for the services of FIN - 19

20 the mortgage broker. The total up-front fees for financing these 3 mortgages are approximately $160,000. The market rate would likely be 1-1.5% higher than the Metro Vancouver rate. The above noted alternative methods of financing all present the MVHC with additional financial impacts in terms of fees and higher interest rates as well as other constraints. Maintaining the three existing mortgages with the GVRD is financially beneficial to the MVHC while leaving the GVRD financially neutral. ALTERNATIVES 1. That the GVRD Board approve continuing to provide first mortgage financing on three MVHC properties: Regal Place Hotel, Manor House and Crown Manor, as presented, for a five year term at a variable interest rate based upon Metro Vancouver s opportunity cost of capital. 2. That The GVRD Board consider an alternative method of financing for the three MVHC properties and approve a resolution accordingly. FINANCIAL IMPLICATIONS The approval of continuing to provide first mortgage financing for the three MVHC properties, as presented in alternative one, will have no impact on the financial position of the GVRD; however, will save the MVHC legal and other fees as well as result in lower interest costs. Other methods of financing that would be considered under alternative two would have no financial impact on the GVRD; however, would result in the MVHC incurring additional legal and administrative fees and paying higher interest rates. These additional costs would place additional pressure on the annual market rent generated by these three properties. SUMMARY / CONCLUSION As presented under alternative one, the approval of continuing to provide first mortgage financing for Regal Place Hotel, Manor House and Crown Manor for a five year term at a variable interest rate based on Metro Vancouver s opportunity cost of capital, is recommended. Financing through the GVRD presents no financial burden on the GVRD while providing the MVHC with financial savings in terms of lower legal and administrative fees as well as interest rates FIN - 20

21 5.3 To: From: Finance Committee Phil Trotzuk, Chief Financial Officer Date: February 6, 2014 Meeting Date: February 14, 2014 Subject: Greater Vancouver Sewerage and Drainage District Development Cost Charge Reserve Fund Expenditure Bylaw No. 282, 2014 RECOMMENDATION a) That the GVS&DD Board introduce and give first, second and third reading to Greater Vancouver Sewerage and Drainage District Development Cost Charge Reserve Fund Expenditure Bylaw No. 282, b) That the GVS&DD Board reconsider, pass and finally adopt Greater Vancouver Sewerage and Drainage District Development Cost Charge Reserve Fund Expenditure Bylaw No. 282, PURPOSE To meet the statutory requirements to use Development Cost Charges (DCC) for funding of the growth capital program. This bylaw completes the authority for the required transfer to support the 2013 financial plan. BACKGROUND The regional sewer development cost charges are governed under the GVS&DD Act and was introduced in 1997, pursuant to the philosophy that growth should pay for growth. DCC revenues are used to fund growth related capital projects only. Funds received through the collection of DCC s are set aside in reserve accounts on a sewerage area basis for the funding of Sewerage area projects and on a regional basis for regional liquid waste projects. Under the Act, transfers of any revenues collected out of the DCC Reserve Funds can only be for the restricted purposes, and must be authorized by bylaw. DISCUSSION The annual financial plan from the inception of the DCC bylaw in 1997 estimates the DCC revenues collected that are required to fund the projected sinking fund payments on debt related to growth capital expenditures. Growth related capital expenditures are those that increase system capacity, thereby accommodating the increasing population in the region. DCC s are collected based on development in the region, held in reserve and applied as capital expenditures are incurred to enhance system capacity. The balances in the DCC deferred revenue reserves at December 31, 2013, after application of the amounts contemplated in this bylaw, are as follows: FIN - 21

22 Fraser Sewer Area $ 81,926,286 Vancouver Sewer Area $ 19,955,199 Lulu Island Sewer Area $ 9,029,986 North Shore Sewer area $ 3,228,819 Regional $ 83,789,882 $197,930,172 Early in the following year, as part of the year-end accounting processes, the actual DCC revenue requirements are determined and Board authority for the necessary reserve fund transfers is requested through the attached bylaw. The above reserve balances include the 2013 funding requirements. As a result of the volume of capital projects undertaken within the Liquid Waste function, long-term funding is not secured on a project by project basis but rather on a pooled basis by expenditure type (i.e. growth projects) by sewer area. The funding of $6,528,788 required for 2013 is summarized as follows: Regional $ 2,101,861 This funding is primarily related to the Stage 4 Expansion at the Lulu Island WWTP, the Stage 5 Expansion at the Annasis WWTP and the growth component of the upgrade at Northwest Langley. Fraser Sewer Area $ 4,134,652 This funding relates to a series of growth related projects primarily due to the required expansion of the liquid waste collection system throughout the Fraser Sewer Area. Lulu Island Sewer Area $ 20,172 Minimal growth projects currently require funding North Shore Sewer area $ 272,103 This funding is related to upgrades at the Lions Gate WWTP. Vancouver Sewer Area $ 0 No growth projects currently require funding. This use of DCC funding reduces the reliance on the sewer levy which is generated directly from member municipalities. FIN - 22

23 ALTERNATIVES 1. That the GVS&DD Board introduce, give three readings and adopt the Greater Vancouver Sewerage and Drainage District Development Cost Charge Reserve Fund Expenditure Bylaw No. 282, 2014 as presented. 2. That the GVS&DD Board consider amendments to the bylaw as it considers appropriate and that the GVS&DD Board introduce, give three readings and adopt the Greater Vancouver Sewerage and Drainage District Development Cost Charge Reserve Fund Expenditure Bylaw No. 282, 2014 as amended. 3. That the GVS&DD Board not approve the bylaw. FINANCIAL IMPLICATIONS This bylaw as presented under alternative one finalizes the required DCC funding as contemplated in the 2013 Liquid Waste budgeted revenues. Should this bylaw be amended or not approved, sewer levy funding would be used to fund debt on growth related capital expenditures rather that DCC s as intended a part of the DCC program. This would reduce the funding available for the other areas of the service and likely lead to an increase in the levy to member municipalities. SUMMARY / CONCLUSION The adoption of the bylaw as included under alternative one is recommended. The 2013 budget contemplated the transfer of DCC revenues collected to meet actual debt charge funding requirements related to the Liquid Waste growth capital program. This bylaw completes that process. Attachment: Greater Vancouver Sewerage and Drainage District Development Cost Charge Reserve Fund Expenditure Bylaw No. 282, FIN - 23

24 ATTACHMENT GREATER VANCOUVER SEWERAGE AND DRAINAGE DISTRICT BYLAW NUMBER 282, 2014 DEVELOPMENT COST CHARGE RESERVE FUND EXPENDITURE BYLAW WHEREAS: (1) The Greater Vancouver Sewerage and Drainage District (the Corporation ) enacted Development Cost Charge Bylaw 254, 2010, which was effective as of April 23, 2010 (replacing repealed Development Cost Charge Bylaw 187, 1996, which was effective as of January 1, 1997), pursuant to which the Corporation has imposed development cost charges to assist the Corporation in paying capital costs incurred to provide, construct, alter or expand sewerage facilities to service development; (2) The Corporation has established a Development Cost Charge Reserve Fund pursuant to Greater Vancouver Sewerage and Drainage District Development Cost Charge Reserve Fund Bylaw No. 188, 1997, which was enacted pursuant to Section 58.6 of the Greater Vancouver Sewerage and Drainage District Act, into which fund the Corporation has deposited and continues to deposit the monies collected pursuant to Development Cost Charge Bylaw 254, 2010 (replacing repealed Development Cost Charge Bylaw 187, 1996); (3) The Development Cost Charge Reserve Fund is divided into 5 separate accounts, pursuant to Greater Vancouver Sewerage and Drainage District Development Cost Charge Reserve Fund Bylaw No. 188, 1997, being the Regional Account, the Fraser Area Account, the Lulu Island West Area Account, the North Shore Area Account and the Vancouver Area Account; and (4) The Corporation is authorized to pay from the Development Cost Charge Reserve Fund the capital costs of providing, constructing, altering or expanding sewerage facilities that relate to development within the area of the Corporation or principal and interest on a debt incurred by the Corporation as a result of an expenditure for the capital costs of providing, constructing, altering or expanding sewerage facilities that relate to development within the area of the Corporation. The Board of the Greater Vancouver Sewerage and Drainage District in open meeting assembled enacts as follows: 1. The sum of $2,101,861 held in the Regional Account shall be paid out of such account and used to pay the portion of the principal on the debt incurred by the Corporation that has been apportioned to the Regional Area, which debt was incurred by the Corporation to pay for the capital costs of providing, constructing, altering or expanding sewerage facilities that relate to development within that area of the Corporation. Greater Vancouver Sewerage and Drainage District Development Cost Charge Reserve Fund Expenditure Bylaw No. 282, 2014 FIN - 24 Page 1 of 2

25 2. The sum of $4,134,652 held in the Fraser Area Account shall be paid out of such account and used to pay the portion of the principal on the debt incurred by the Corporation that has been apportioned to the Fraser Sewerage Area, which debt was incurred by the Corporation to pay for the capital costs of providing, constructing, altering or expanding sewerage facilities that relate to development within that area of the Corporation. 3. The sum of $20,172 held in the Lulu Island West Area Account shall be paid out of such account and used to pay the portion of the principal on the debt incurred by the Corporation that has been apportioned to the Lulu Island West Sewerage Area, which debt was incurred by the Corporation to pay for the capital costs of providing, constructing, altering or expanding sewerage facilities that relate to development within that area of the Corporation. 4. The sum of $272,103 held in the North Shore Area Account shall be paid out of such account and used to pay the portion of the principal on the debt incurred by the Corporation that has been apportioned to the North Shore Sewerage Area, which debt was incurred by the Corporation to pay for the capital costs of providing, constructing, altering or expanding sewerage facilities that relate to development within that area of the Corporation. 5. The sum of $0 held in the Vancouver Area Account shall be paid out of such account and used to pay the portion of the principal on the debt incurred by the Corporation that has been apportioned to the Vancouver Sewerage Area, which debt was incurred by the Corporation to pay for the capital costs of providing, constructing, altering or expanding sewerage facilities that relate to development within that area of the Corporation. This bylaw may be cited for all purposes as Greater Vancouver Sewerage and Drainage District Development Cost Charge Reserve Fund Expenditure Bylaw No. 282, Read a first time this day of, Read a second time this day of, Read a third time this day of, Reconsidered, passed and finally adopted by the Administration Board this, day of Greg Moore, Chair Paulette A. Vetleson, Corporate Officer Greater Vancouver Sewerage and Drainage District Development Cost Charge Reserve Fund Expenditure Bylaw No. 282, 2014 FIN - 25 Page 2 of 2

26 5.4 To: From: Finance Committee Phil Trotzuk, Chief Financial Officer Date: February 5, 2014 Meeting Date: February 14, 2014 Subject: Semi-Annual Report on GVS&DD Development Cost Charges RECOMMENDATION That the Finance Committee receive the report dated February 5, 2014 titled Semi-Annual Report on GVS&DD Development Cost Charges for information. PURPOSE To report on the 2013 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 (DCC) 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 second of such reports for DISCUSSION The revenues for 2013 are up $1.6 million (8.3%) over 2012 levels. The rise in revenues highlights increasing levels of development in the region over the past year. DCC revenues received are as follows: ($ millions) Fraser Lulu N. Shore Vancouver Regional Total 2013 TOTAL TOTAL The annual DCC revenues collected from member municipalities continue to be in excess of the actual annual funding requirements for growth related projects. The annual funding applications were calculated and reported as shown below: Fraser Lulu N. Shore Vancouver Regional Total 2013 DCC s Applied DCC s Applied It is important to note that growth capital projects, for which DCC s are received, are funded over a 15 year debt amortization period (principal portion of long term debt financing). The excess revenues are maintained in reserve for future application as required. FIN - 26

27 The deferred revenue DCC reserves balances projected at December 31, 2013 are as follows: Fraser Sewer Area $ 81,926,286 Vancouver Sewer Area $ 19,955,199 Lulu Island Sewer Area $ 9,029,986 North Shore Sewer Area $ 3,228,819 Regional $ 83,789,882 $ 197,930,172 A review is currently in process to assess the adequacy of the current 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 Development Pays for Growth, should the revenues collected be inadequate to fund growth related projects, the funding burden would default to sewer levies collected from 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 both the Liquid Waste capital program and the level of development within the region. While the current DCC revenues continue to be substantial, so is the plan for future Liquid Waste 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 existing rates. In the medium term, the current deferred DCC revenues in reserve appear adequate FIN - 27

28 5.5 To: From: Finance Committee Utilities Committee Frank Huber, Manager, Major Projects, Management Systems and Utility Support, Water Services Mark Ferguson, Manager, Project Delivery, Liquid Waste Services Date: February 6, 2014 Finance Committee Meeting Date: February 14, 2014 Utilities Committee Meeting Date: February 18, 2014 Subject: 2014 GVWD and GVS&DD Capital Projects RECOMMENDATION That the Committee receive for information the report titled 2014 GVWD and GVS&DD Capital Projects dated February 6, PURPOSE The purpose of this report is to inform the Committee of the GVWD and GVS&DD capital projects under its purview for 2014, as approved by the Board on November 15, BACKGROUND As part of the capital projects reporting process, an annual report summarizing the capital projects under the Utilities Committee s purview has historically been brought forward to the Utilities Committee at its first meeting of the year. DISCUSSION Programs and priorities for Water and Liquid Waste for 2014 were reviewed and endorsed at the October 2013 meeting of the Utilities Committee. This report summarizes the individual capital projects included in the above-noted programs. As part of the Long Range Plan and annual budget process, a determination is made of the capital projects that are required in order to continue to meet Metro Vancouver s service obligations. This is done through a senior level capital planning team which prioritizes each project on the basis of several criteria including environmental impact, health and safety, and ability to meet service delivery requirements and regulations. Typically, in May of each year, when the complete updated draft Long Range Capital Plan is prepared, each municipality is provided with copies for their review and comment. Comments received are considered in finalizing the draft plan commencing in late July, for incorporation into the annual budget. The projects within the various GVWD and GVS&DD capital programs are referenced in the 2014 Financial Information (Blue Book) made available to Committee and Board members in the fall of each year as part of the annual budget process. FIN - 28

29 GVWD capital projects expected to commence in 2014, and projects approved in progress are summarized for reference purposes on Attachments No. 1 and 2, respectively. GVS&DD liquid waste capital projects expected to commence in 2014 and projects approved in progress are summarized for reference purposes on Attachments No. 4 and 5, respectively. In accordance with the capital expenditure reporting process approved by the Board, interim status reports are provided to the Utilities and Finance Committees in June/July and October, with a final year-end report to the Committees and Board in April. ALTERNATIVES This is an information report. No alternatives are presented. FINANCIAL IMPLICATIONS For 2014, water capital projects account for approximately $189 million and liquid waste capital projects account for approximately $85 million of the 2014 capital budget. Proposed 2014 expenditures and total project budget, for each individual project, are tabulated in Attachments No. 3 (GVWD) and 6 (GVS&DD), respectively. SUMMARY / CONCLUSION The 2014 capital programs for GVWD and GVS&DD (Liquid Waste) were approved by the Board in November This report provides a high level overview of these programs for the Committee s reference throughout Attachments and References: Water Capital New Projects Map Water Capital Approved in Progress Projects Map 3. GVWD 2014 Capital Projects List Liquid Waste Capital New Projects Map Liquid Waste Capital Approved in Progress Projects Map 6. GVS&DD (Liquid Waste) 2014 Capital Projects List FIN - 29

30 Attachment Water Capital New Projects SCFP Filter Gullet Lining Construction µ SCFP Storage Building and Hydraulic Power Unit AN O LAK KE PI "&- " ) ) E BUNTZEN LAKE M & AR Capilano Rd Phase 2 ADAS Piezometers M Prospect Reservoir TT I L L LA C Glenmore Tank Reservoir AK DISTRICT OF NORTH VANCOUVER C O QU I T L A DISTRICT OF WEST VANCOUVER AP BOWEN ISLAND Coquitlam MultiStorage Facility and Security Gatehouse Replacement E Capilano Main No. 9 North Section Construction Greenwood Park Reservoir IA N BELCARRA Cleveland Dam CITY OF ANMORE Drum Gate Resurfacing " ) NORTH VANCOUVER BURRARD PORT R R A INLET & R D I NL ET BU PORT MOODY -Vancouver Heights & -" & ) Burnaby Mtn. Reservoir COQUITLAM PITT Reservoir Port Mann Main No. 2 " ) (South) Design & " ) VANCOUVER Little Mtn. Cape Horn MEADOWS Sasamat " & ) Sasamat BURNABY Reservoir Reservoir Reservoir & P/S Maple Ridge " ) & & & Central Park ) & COQUITLAM " Reservoir " ) MAPLE Westburnco Reservoir Kersland " & ) & " ) " ) Reservoir & Reservoir FR A SER RI V E RIDGE Central Park Main R NEW Replacement - Predesign Whalley Main Predesign WESTMINSTER " ) Whalley Kennedy " ) TE LA KE IN D Mahon& P/S A Braid St Main No.2 Construction RICHMOND Legend R RI VE SE R Annacis Main No. 5 Marine Crossing Predesign New Projects A FR GVWD Water Main & GVWD Water Pump Station " ) Reservoirs 0 4 BOUNDARY BAY P/S Newton Reservoir 8 Kilometers & " ) Pebble Hill Reservoir Sunnyside Reservoir Jericho Reservoir No.1 Prelim. Design CITY OF Newton Pump Station Improvements Concept Design LANGLEY " ) " ) Grandview Reservoir WHITEROCK FIN - 30 R A S ER RI V ER & " ) - Newton & & " ) South Delta Main No.1 Upgrade - Design T Fleetwood Reservoir Prelim. Design Clayton Tank Reservoir SURREY DELTA South Delta Main No.1 Hwy 17 Prebuild F " ) North Delta Hellings Tank P/S Reservoir Newton Reservoir Energy Generation Capilano Watershed Coquitlam Watershed & " ) Hellings Tank Seismic Upgrade Detailed Design and Hellings Tank No 2 Predesign Municipal Boundary Seymour Watershed Reservoir Reservoir UE LO Clayton Reservoir Design - Grandview TOWNSHIP & " ) P/S OF LANGLEY g:projects\wa02\00\capitalworks\mxds\watercapitalworks_2014_red Created by GC Last Modified: Dec 2013

31 Attachment 2 Capilano Main No.9 North Section Design and Prebuild Seymour Falls Dam Automated Data Acquisition System (ADAS) Phase 2 Cleveland Dam Seismic Stability Assessment Cleveland Dam GV Series Pump Well Upgrade Seymour Main No. 5 North - Predesign Cleveland Dam Elevator Replacement E LA K DI AN Greenwood Park Reservoir R B UR A R D I N L E T Vancouver Heights Reservoir VANCOUVER Sasamat Pump Station Stage 2 - Predesign Sasamat Reservoir Sasamat P/S Little Mtn. Reservoir Central Park Reservoir Reservoirs Pump Station Seismic Upgrade - Phase 2 Construction. Various Locations Seymour Watershed Coquitlam Watershed 0 4 R North Delta Hellings Tank P/S Reservoir A Westburnco PS - Transformer & MCC Replacement Kennedy Newton Main Pre-Design Annacis Main No.5 Marine Crossing Conceptual Design Municipal Boundary Capilano Watershed RI V E FR GVWD Water Main GVWD Water Pump Station Tilbury Junction Chamber Valve Replacement Water Optimization Automation and Instrumentation - Various Locations Annacis Main No.3 Channel Scour Protection AK E KE Whalley Reservoir SURREY BOUNDARY BAY 8 Kilometers South Delta Main No. 1 Pebble Ladner Hill Trunk Section Upgrade Reservoir Clayton Tank Reservoir Newton P/S Newton Reservoir Port Mann Main No. 2 (North) - Design and Construction CITY OF LANGLEY Sunnyside Reservoir Grandview Reservoir WHITEROCK E Barnston/Maple Ridge F R AStation Pump R IV ER S ER Construction & Power Generation DELTA South Surrey Main Serpentine River Aerial Crossing Rehab. LCOC Roof Replacement Coquitlam Main No.4 Cape Horn - Predesign Braid St. Main No. 2 Design R Approved In Progress Projects Comprehensive Regional Water Supply Plan Conceptual Study RICHMOND SE Legend Burnaby Mt. Pump Station No. 2 Design MAPLE RIDGE Westburnco ReservoirF Kennedy Reservoir ET Maple Ridge Reservoir Maple Ridge Main (West) Const. COQUITLAM R A S E R RI V E R NEW WESTMINSTER Angus Dr. Main Design and Construction U O AL MEADOWS Cape Horn Reservoir BURNABY Kersland Reservoir Central Park Pump Station Starters Replacement BELCARRA Douglas Rd Main No. 2 ANMORE Still Creek & Delta Sections PORT PORT MOODY Burnaby Mtn. COQUITLAM PITT Reservoir Vancouver Hts. PS Motor/ Drive Replacement CITY OF NORTH VANCOUVER BURRARD INLET Douglas Rd Main No. 2 Vancouver Heights Section Predesign LAKE LA K Mahon P/S AR M SCFP Clearwell BUNTZEN Chambers Roof Upgrade Mathers Ave. Main Capilano River Crossing Replacement Pre-Design Second Narrows Tunnel Pre and Detailed Design Convert to Sodium Hypochlorite at Coquitlam WTP TT O AN Glenmore Tank Reservoir Prospect Reservoir PI I L L LA C Coquitlam Intake No. 2 Tunnel - Conceptual Design M DISTRICT OF Lynn Valley Water Storage Reservoir Design NORTH VANCOUVER DISTRICT OF WEST VANCOUVER AP BOWEN ISLAND Capilano Power Prelim. Design Coquitlam Communication Design and Improvements Construction Mackay Cr. Debris Flow Mitigation Concept/Pre-Design/ Detailed Design IN E2 Drainage Shaft Phase 3 Test Well Construction Coquitlam UV Disinfection Facility Construction TE Seymour- Capilano Filtration Project Text Twin Tunnels and Energy Recovery Facility C OQUITL A 2014 Water Capital Approved In Progress Projects Grandview P/S Port Mann Main No.2 Fraser River Crossing Construction Port Mann Main No.2 (South) - Predesign TOWNSHIP OF LANGLEY 1:230,000 FIN - 31 g:projects\wa02\00\capitalworks\mxds\watercapitalworks_2014_blue Created by GC Last Modified: Dec 2013

32 Attachment 3 GREATER VANCOUVER WATER DISTRICT WATER 2014 CAPITAL PROJECTS 2014 TOTAL PROJECT CAPITAL PROJECT LOCATION EXPENDITURES COSTS CAPITAL EXPENDITURES Drinking Water Treatment Approved Projects in Progress Seymour Capilano Filtration Project North Vancouver $ 34,500,000 $ 820,000,000 Coquitlam - UV Disinfection - Construction Coquitlam 13,000, ,000,000 $ 47,500,000 $ 930,000,000 Infrastructure Growth Approved Projects in Progress Angus Drive Main Design Vancouver $ 300,000 $ 2,000,000 Angus Drive Main Construction Vancouver 16,000,000 28,000,000 Annacis Main No. 5 (Marine Crossing) - Conceptual Design New West/Surrey 1,100,000 2,000,000 Barnston Maple Ridge Pump Station Pitt Meadows 18,000,000 46,500,000 Burnaby Mountain Pump Station No. 2 - Design Burnaby 500,000 1,700,000 Comprehensive Regional Water Supply Plan - Conceptual Study Regional 200, ,000 Coquitlam Intake No. 2/Tunnel Conceptual Coquitlam 500,000 4,130,000 Coquitlam Main No.4 - ( Cape Horn ) Pre Design Coquitlam 100,000 1,000,000 Kennedy-Newton Main - Predesign Surrey 500,000 1,000,000 Maple Ridge Main- (West) -Construction Maple Ridge 5,000,000 18,800,000 Port Mann Main No. 2 - ( North ) Design Coquitlam 600,000 1,600,000 Port Mann Main No. 2 - ( North ) Construction Coquitlam 7,000,000 24,100,000 Port Mann Main No. 2 - ( South ) Predesign Surrey 60, ,000 Sasamat PS Stage II-Predesign Vancouver 30, ,000 Seymour Main No. 5-III ( North ) Predesign North Vancouver 400,000 1,000, New Projects Annacis Main No. 5 (Marine Crossing) - Pre Design New West/Surrey 1,800,000 8,000,000 Fleetwood Reservoir - Prelim Design Surrey 400,000 1,300,000 Hellings Tank No. 2 - Predesign Delta 100, ,000 Jericho Reservoir No. 1 - Prelim Des Langley 500,000 1,500,000 Newton Pumping Improvements - Concept Design Surrey 250, ,000 Port Mann Main No. 2 - ( South ) Design Surrey 400,000 1,200,000 South Delta Main No. 1 (Highway #17 Prebuild & Connection to TFN) Delta 420,000 3,500,000 South Delta Main #1 Upgrade - Design Delta 1,750,000 1,750,000 Whalley Main - Predesign Surrey 50, ,000 $ 55,960,000 $ 152,030,000 Infrastructure Maintenance Approved Projects in Progress Annacis Main No. 3 Channel Scour Protection Surrey $ 759,000 $ 1,200,000 Central Park WPS Starters Replacement Burnaby 295,000 2,100,000 Cleveland Dam Elevator Replacement North Vancouver 300,000 7,300,000 Douglas Road Main No. 2 - Delta Section Burnaby 5,600,000 16,600,000 Douglas Road Main No. 2 - Still Creek Design Burnaby 1,120,000 1,600,000 Douglas Road Main No. 2 (Vancouver Heights Section) - Predesign Burnaby 480, ,000 E2 Shaft Phase 3 Test Well Construction North Vancouver 4,000,000 4,500,000 LCOC Metal Roof Replacement Burnaby 550,000 1,100,000 Mathers Avenue Capilano River Crossing Replacement - Prelim Design North/West Vancouver 100, ,000 SCFP - Clearwell Chambers Roof Upgrade North Vancouver 400, ,000 South Surrey Main - Serpentine River Aerial Crossing Rehabilitation Surrey 115, ,000 Vancouver Heights WPS #1 & #2 Motor and Drive Replacement Burnaby 10, ,000 Westburnco #1 Water PS Main Transformer and MCC Replacement New Westminster 275, , New Projects Central Park Main Replacement (Patterson St to 10th Avenue) - Predesign Burnaby 800,000 1,800,000 Cleveland Dam Drum Gate Resurfacing North Vancouver 1,135,000 1,135,000 $ 15,939,000 $ 41,187,000 Infrastructure Relocation Approved Projects in Progress $ - $ - FIN - 32

33 Attachment 3 GREATER VANCOUVER WATER DISTRICT WATER 2014 CAPITAL PROJECTS 2014 TOTAL PROJECT CAPITAL PROJECT LOCATION EXPENDITURES COSTS Infrastructure Risk Management Approved Projects in Progress Braid St. Main No.2 - Design New Westminster $ 57,000 $ 500,000 Capilano Main No.9 - North Section Design North Vancouver 650,000 1,300,000 Capilano Main No.9 - North Section Prebuild North Vancouver 4,000,000 6,000,000 Convert to Bulk Sodium Hypochlorite from Chlorine Gas at Coquitlam WTP Coquitlam 2,000,000 4,500,000 Mackay Creek Debris Flow Mitigation - Conceptual/Preliminary Design North Vancouver 500,000 1,000,000 Mackay Creek Debris Flow Mitigation - Detailed Design North Vancouver 200,000 1,000,000 Port Mann No.2- Fraser R. X-ing (Construction) Coquitlam/Surrey 40,000, ,000,000 Pump Station Seismic Upgrades (Phase 2) - Construction Regional 200,000 1,000,000 Second Narrows Crossing (Tunnel) - Preliminary Design North Vanc/Burnaby 250,000 5,550,000 Second Narrows Crossing (Tunnel) - Detailed Design North Vanc/Burnaby 4,000,000 10,000,000 Seymour Falls Dam ADAS Phase II North Vancouver 20, , New Projects Braid St. Main No.2 - Constr New Westminster 200,000 8,000,000 Capilano Main No. 9 North Section - Construction North Vancouver 5,000,000 29,000,000 Capilano Rd. Phase 2 ADAS Piezometers - Cleveland Dam East Abutment North Vancouver 250, ,000 Clayton Reservoir - Design Surrey 500,000 1,500,000 Coquitlam Multi Storage Facility Coquitlam 1,000,000 1,000,000 Coquitlam Watershed Security Gatehouse Replacement Coquitlam 600,000 1,600,000 Hellings Tank Seismic Upgrade - Detailed Design Delta 600, ,000 SCFP - Filter Gullet Lining - Construction North Vancouver 1,500,000 1,500,000 Seymour Capilano Filtration Plant - Storage Building North Vancouver 1,400,000 1,400,000 $ 62,927,000 $ 315,280,000 Water Infrastructure Upgrade Approved Projects in Progress Cleveland Dam East Abutment GV-Series Pump Well Upgrade North Vancouver $ 100,000 $ 750,000 Cleveland Dam Seismic Stability Assessment North Vancouver 75, ,000 Coquitlam Communication Improvements - Design Coquitlam 20, ,000 Coquitlam Communication Improvements - Constr. Coquitlam 950,000 1,650,000 Lynn Valley Water Storage Reservoir - Design North Vancouver 1,300,000 1,500,000 Tilbury Junction Chamber Valves Replacement with Actuators Richmond 2,000,000 2,500,000 Water Optimization Automation & Instrumentation Regional 1,200,000 9,540, New Projects Seymour Capilano Filtration Plant - Hydraulic Power Unit North Vancouver 525, ,000 $ 6,170,000 $ 16,965,000 Water Opportunity Programs Approved Projects in Progress Barnston/Maple Ridge Pump Station Power Generation Pitt Meadows $ 150,000 $ 2,500,000 Capilano Power Preliminary Design North Vancouver 400,000 4,000,000 South Delta Main No. 1-Ladner Trunk Road Section Upgrade Delta 220,000 1,100,000 $ 770,000 $ 7,600,000 TOTAL CAPITAL EXPENDITURES $ 189,266,000 $ 1,463,062,000 FIN - 33

34 2014 Liquid Waste Capital New Projects District of West Vancouver Bowen Island Municipality District of North Vancouver Gleneagles Forcemain Replacement Text Design - Detailed Lions Gate WWTP - Sludge Thickener No. 2 Village of Belcarra City of North Vancouver Jervis Pump Station - MCC Replacement - Design Hastings Sanitary Trunk Sewer Prelim Design City of Coquitlam Cassiar Overflow Facility Capacity Upgrading - Detailed Design City of Port Moody UEL Vancouver Sewerage Area (VSA) - Emergency Backup Power Concept Village of Anmore City of Vancouver Burnaby Lake North Interceptor Phillips to Sperling Section Detailed Design City of Burnaby City of Port Coquitlam City of Pitt Meadows Collingwood Trunk Sewer - Design Southwest Marine Drive Interceptor Twinning - Pre-Design Fraser Sewerage Area - CDAC System Migration Project - Prelim Engineering - Gateway - Sewer Seismic Upgrades - Pre-Design District of Maple Ridge City of New Westminster Iona Island WWTP - Grit Channel Effluent & PA Influent Channel Gates - Design - Grit System Upgrade Construction - Redundant 12.5 KV Feeder to Switch House - Design - Replacement CoGen Control System - Design - Sediment Tank Effluent Gates Design New Westminster Interceptor Repair - Columbia St. Section Design Marshend Pump Station Conceptual Design Royal Avenue Pump Station - Building Expansion & Electrical Upgrade City of Richmond Lulu Sewerage Area - Integrated Resource Recovery Queensborough Pump Station Replacement - Prelim Design Lulu Island WWTP - Ammonia Removal - Concept & Prelim Design - Primary Effluent Bypass Gates Detailed Design Legend Annacis Island WWTP - Ammonia Removal - Pre-design - CDAC Component Replacement & Upgrade Program - Replacement of Protective Relays - Design - Second Outfall (Stage 8) Design Surge Control - Secondary Bypass - Construction - Secondary Clarifier Corrosion Repair & Leveling - Design & Prepurchase - Stage 5 Expansion Phase 2 - Detailed Design 2014 Liquid Waste Capital Projects Sewer Pump Stations Treatment Plants Annacis Island Iona Island Lulu Island Lions Gate Northwest Langley GVS&DD Sewer Mains Force Main All WWTPs - Power Quality Monitoring & Outage Alarm Network Prelim & Detail Design Gravity Main Fraser Sewerage Area Lulu Island Sewerage Area North Shore Sewerage Area Vancouver Sewerage Area Electoral Area A Corporation of Delta City of Surrey NW Langley WWTP - Outfall Relocation - Phase 2 - Concept Development - Sodium Bi-Sulphate Storage Construction Surrey Yard Ferrous Dosing Facility Relocation - Prelim & Detailed Design City of Langley Langley Pump Station Upgrade - Prelim. Design Township of Langley South Surrey Interceptor Johnston Section - Pre-design Tsawwassen First Nation South Surrey Interceptor - King George Section Odour Control Facility and Grit Chamber City of White Rock 8 Kilometers g:\projects\se08\01\2014work\mxds\liquidwastecapitalnew Projects GC Jan 2014 FIN - 34

35 2014 Liquid Waste Capital Approved in Progress Projects Northshore Sewerage Area - Wastewater Meter Upgrades District of North Vancouver District of West Vancouver Bowen Island Municipality Gleneagles Pump Station 1 - Rehab. Gleneagles Pump Station Rehab. Design Village of Belcarra Lynn Pump Station Design / Construction City of North Vancouver Lions Gate WWTP - Control & Instrumentation Replacement - Gas Flow Meter Replacement - Influent Channel Bar Screen Replacement - Medium Pressure Sludge Gas Blower & High Pressure Sludge Gas Compressor Replacement - Plant Upgrade Design - Power Distribution Motor Control Center / Transformer Replacement UEL Highbury Interceptor -Air Treatment Facility Highbury Interceptor -North Arm Crossing Siphon Upgrade City of Coquitlam Sapperton Pump Station - Design, Equipment & Construction City of Port Moody Burnaby Lake North Interceptor - Sperling Section - Construction City of Port Coquitlam Sperling Pump Station Upgrade - Design City of Vancouver Katzie Pump Station - Design Phase 2 - Genset - Design City of New Westminster Electoral Area A Marshend Pump Station Rehabilitation - Construction City of Richmond Sewer Pump Stations Treatment Plants Annacis Island Iona Island Lulu Island Lions Gate Northwest Langley Lulu Island WWTP - Raw Sewage Pump & Generator Replacement - Gas Flow Meter Replacement - Microsludge & Green Biomethane Project - Second Incomer Feeder - Conceptual Design GVS&DD Sewer Mains Force Main Gravity Main Fraser Sewerage Area Lulu Island Sewerage Area North Shore Sewerage Area Vancouver Sewerage Area Kilometers NW Langley WWTP Expansion - 25 KV Substation Replacement - Design - Outfall Conceptual Design - Phase 1 Construction - Phase 1 Design and Site Prep - Sludge Dewatering - Design - Sodium Bi-Sulphate Storage - Design City of Surrey Corporation of Delta Gilbert Trunk Pressure Sewer Twinning - Phase 1 - Design & Construction - Phase 2 - Design Projects "Approved in Progress" North Surrey Interceptor Ave. Extension North Surrey Interceptor Roebuck Road Section - Design Lulu Island West Sewerage Area - Wastewater Meter Updgrades Tsawwassen First Nation Maple Ridge Forcemain Surrey Section - Design District of Maple Ridge New CSO Management Gates for New Westminster Interceptor - Design Vancouver Sewerage Area - Wastewater Meter Upgrades - IRM Legend Fraser Sewerage Area - Easement Acquisition - Wastewater Meter Upgrades - Comprehensive Wastewater Treatment Plan - Concept Study - Evergreen Impacts & Queen St. Sewer Relocation City of Pitt Meadows City of Burnaby 8th Ave Interceptor -Cambie & Balaclava Gates Data Collection Iona Island WWTP - Control & Instrumentation Replacement - Digester 4 Roof Replacement & Mixing Upgrade - Design - Gas Flow Meter Replacement - Inlet Modifications - Conceptual Design - Interim Facility Plan - Jetty Erosion Repair - Motor Control Center / Power Distribution Assessment / Replacement - Secondary Treatment Upgrade - Project Definition - Solids Handling Upgrade Design & Construction Village of Anmore Annacis Island WWTP - Ammonia Removal - Conceptual Design - Chlorine Contact Tank Gates - Cogeneration Backup Power - Pre-Design & Design - Gas Circulation Compressor Replacement - Gas Flowmeter Replacement - Gravity Thickener & Dissolved Air Flotation Steel Repair & Recoating - Influent Pump Station Variable Frequency Drives Replacement (Pumps 1 to 3) - Motor Control Center Replacement - Primary Sedimentation Tank Area Walkway & Column Remediation - Design - Second Outfall (Stage 8) Pre-design & Land Investigation - Secondary Bypass - Design - Secondary Clarifier Corrosion Repair - Secondary Clarifiers Flow Balancing - Design - Stage 5 Expansion - Phase 1 - Stage 5 Expansion - Phase 2 - Pre-design & Detailed Design - Trickling Filter Pumps Impeller Replacment (Pumps 1 to 4) City - Trickling Filter VFD Replacement (Pumps 1 to 4) of White Langley Connector No. 1 & Carvolth Trunk Upgrading / Replacement North Surrey Interceptor Annieville Channel Crossing Scour Protection City of Langley Township of Langley Rock FIN - 35 G:\projects\se08\01\2014_projects\mxds\2014_LiquidWasteCapitalApprovedinProjgressProjects.mxd GC Jan 2014