Colleen Brennan, Vice President, Communications and Customer Engagement

Transcription

1 To: From: Board of Directors Colleen Brennan, Vice President, Communications and Customer Engagement Date: December 2, 2015 Subject: Transit Network Consultation Update OVERVIEW/PURPOSE OF CONSULTATION The Transit Network Service Review refers to the process of reallocating bus-service hours from low-productivity routes to routes where demand is higher (service optimization). It is a critical part of TransLink s ongoing program of managing the transit network and relies on feedback gathered through public consultation, as well as data from the annual Bus Service Performance Review. Public feedback informs our annual program of service and network changes across the region. TransLink has held public consultations annually since Previous service review consultations primarily used an open house format. In the past, the majority of this feedback did not effectively reach young adults. In 2015, the Transit Network Consultation and Information Program sought to reach and involve a higher number and wider range of stakeholders from across the region, to receive a diversity of perspectives. This was successfully accomplished by providing the information in a digital format (online), including digital, clickable maps, and by giving customers an opportunity to provide their views via an online survey. Scope Proposed changes to 85 transit routes across the region were identified by the Planning team, with many of the proposed changes driven by the introduction of service on Evergreen. The proposed changes aim to: Integrate bus service to better connect to Evergreen Decrease travel time on busy routes Extend service to areas with high commuter demand Make our system more efficient Take advantage of road and infrastructure changes Communication Objectives 1. Inform customers of the proposed changes and get their input and feedback. 2. Demonstrate how TransLink is delivering on its commitment to listen to customers in improving the transportation system.

2 Transit Network Consultation Update December 2, 2015 Page 2 of 5 3. Assure customers that TransLink is monitoring ridership and balancing customer demand with the resources available. 4. Assure customers and taxpayers that TransLink as a fiscally responsible organization that takes action to improve the cost-efficiency of transit service across the region, providing good value and more service in areas where customers need it the most. Online Consultation Enabled Us to Reach More People More Effectively In an effort to reach more participants, the consultation focused heavily on a digital marketing approach. The results were remarkable, with more than three million website hits and approximately 12,000 completed surveys (a significant increase over all previous consultations). The online consultation enabled us to analyze responses faster and more efficiently by not having to manually enter data from paper surveys. Two public open houses were also held upon request in White Rock and New Westminster, where 75 people learned about the proposed changes and provided their feedback. To better manage the messaging and feedback received, the eighty-five routes were grouped into seven regions: North Shore Burnaby and New Westminster Northeast Sector, Maple Ridge and Pitt Meadows Richmond and Delta South of Fraser Vancouver and UBC Regional Each region contained multiple route packages, each package consisting of multiple routes which were interdependent based on the proposed changes. Public consultation sought to inform stakeholders of the benefits and trade-offs of the proposed changes and to gather feedback from the public pertaining to the proposed changes. Municipal Staff & Elected Officials Consultation In early 2015, TransLink planning staff began working with municipal staff to review each of the proposed service changes. Valuable feedback and recommendations were provided to TransLink staff which was then (where possible) incorporated into the proposed changes. Prior to the launch of the public consultation, information about the proposed changes was shared with municipal staff and elected officials in each municipality where any changes were proposed.

3 Transit Network Consultation Update December 2, 2015 Page 3 of 5 Marketing and Public Outreach An extensive marketing campaign was launched at the start of the consultation, which included: posters and 6,000 post cards distributed to community centers/pools, public libraries and BC Ferries across the region - newspapers ads in six local newspaper, resulting in 399,258 impressions - targeted stakeholder outreach through notification to over 2,300 subscribers and hundreds more to identified stakeholders/organizations - digital advertising in social media. - advertisements on all SkyTrain LCD screens - approximately 525 people individually informed of the engagement by TransLink staff at the South Surrey Park and Ride and White Rock transit exchange Survey Responses The Transit Network Service Review reached the highest number of completed survey responses for any project TransLink has every held. 11,887 completed surveys were submitted from across the region. An additional 400 feedback forms were submitted within two weeks of the consultation closing. In addition to the feedback received through the online survey, TransLink received an extensive number of phone calls from residents regarding specific proposed changes. All feedback was captured and will be incorporated into the final consultation report. Less than half-a-dozen localized groups criticized the process or complained they were not adequately afforded opportunities to participate. Those who requested to be engaged during the consultation period were accommodated with meetings and/or opportunities to complete paper surveys specific to the routes in question. Those who engaged after November 6 were directed to submit comments via the online customer feedback tool, by phone, or in writing.

4 Transit Network Consultation Update December 2, 2015 Page 4 of 5

5 Transit Network Consultation Update December 2, 2015 Page 5 of 5 Next steps The numerical data was tabulated live, but the open comments from all 12,000 surveys must be reviewed and analyzed. TransLink planning staff is reviewing more 12,000 comments and will provide recommendations for each route. The feedback will be captured in a final report and shared with all those who participated in the consultation process. No decisions have yet been made on the proposed route changes, and further information will be provided in the first quarter of 2016.

6 To: From: TransLink Board of Directors Tim Savoie, Vice President, Transportation Planning and Policy Date: November 27, 2015 Subject: Regional Goods Movement Strategy Status Update PURPOSE This memo provides a status update on development of the Regional Goods Movement Strategy, work underway and planned engagement with the Board, partners, stakeholders and public. BACKGROUND TransLink began developing a Regional Goods Movement Strategy in 2013, with background research undertaken as part of the Regional Transportation Strategy. Through early 2014 a Discussion Guide was used to solicit feedback from key goods movement partners. Management updated the Board in November 2014 on the key themes that arose through consultation and provided an overview of the draft strategy document. While this work was largely put on hold in the run up to and during the Plebiscite period, the Board directed management to share a preconsultation draft (v1) of the Strategy with municipal and key industry partners in order to demonstrate that progress was being made on this file. Following the plebiscite period, work recommenced in late summer 2015 to incorporate partner input into draft v2. DISCUSSION Key Issues Partners have identified the following key issues and challenges to be addressed in the Strategy: Unreliable travel times for movers of goods and services Negative livability impacts for communities (e.g. noise, vibrations, emissions, congestion) Limited availability of accessible land for industrial uses Underdeveloped mechanisms for regional coordination on goods movement Lack of goods movement data for effective decision-making Lack of regional funding for regional investment Emerging Direction The first draft of the Regional Goods Movement Strategy (shared with the Board in early 2015) is available on the TransLink Board of Directors SharePoint site. The second draft, currently under development, has refined the key goals as follows: 1. More efficient goods movement (with targets to improve travel time reliability and capacity utilization). 2. More community-friendly goods movement (with targets to reduce collisions and emissions).

7 Regional Goods Movement Strategy Status Update November 27, 2015 Page 2 of 2 Multi-agency Endorsement There is broad consensus amongst partners and stakeholders that this Strategy should be written with a regional voice, articulating all of the actions that need to occur to improve goods movement at a regional level not just those actions that TransLink can or would undertake. To that end, there is also broad support to work towards seeking endorsement of the Strategy by additional partners including the Province, Port Metro Vancouver, YVR, Gateway Council, BC Trucking Association, and Boards of Trade. Management will pursue discussions to that end with these partners through the next round of engagement. Timing Management intends to recommence discussions with our partners in January 2016 in order to agree on a draft that is ready for broader public and stakeholder consultation in spring The following outlines the anticipated timing and processes: January March 2016 February March 2016 March 31, 2016 Spring 2016 Mid 2016 Review Draft v2 with key partners Develop draft v3 Board meeting to review and approve consultation plan and draft v3 Formal Consultation on draft v3 (online and via larger stakeholder forum) Develop draft v4 for approval by Board and Mayor s Council CONCLUSION Despite a 9-month pause in this work, management will shortly begin a final round of preconsultation meetings with key partners on the second draft of the Regional Goods Movement Strategy. Management will bring forward a consultation plan and consultation-ready draft of the Strategy to the Board at the March 2016 meeting for approval to proceed with more formal public and stakeholder consultation. A final draft should be ready for approval by the Board and Mayors Council in mid-2016 after which management would seek additional partner endorsements to include in the final produced document.

8 To: From: Board of Directors Cathy McLay, Acting Chief Executive Officer and Chief Financial Officer Christine Dacre, Vice President, Finance & Corporate Services Date: December 15, 2015 Subject: 2015 Financial and Performance Report as at September 30, 2015 The purpose of this report is to provide an overview of TransLink s 2015 Financial and Performance results as at September 30 th, 2015 relative to the targets set and the results for the same period last year. The first nine months of 2015 revenues exceeded expenditures by $147.5 million. This is $145.6 million better than budget. In August, a new agreement with the Union of British Columbia Municipalities (UBCM) for the transfer of Federal Gas Tax Funds was signed, which changed the timing of when these funds are recognized as revenue. In the previous agreement, revenue was recognized over a ten year period, while in the new agreement, revenue is recognized at the time the funds are spent. This change accounts for $85 million of the variance to budget. Other key factors resulting in better than budget financial results include: Increased revenues from: Fuel tax revenue ($8 million) Golden Ears Bridge tolls ($3.8 million) Gain on sale of surplus property ($2.4 million) Adjacent Integrated Development properties ($2.0 million) Lower costs for: Fuel and power costs ($4.6 million) due to lower market prices and consumption Fare media and credit card fees ($2.1 million) Salaries, wages and benefits ($1.0 million) largely due to additional vacancy savings, lower benefit costs and favourable rate variances Delayed timing of planned expenses: Major Road Network contributions to municipalities ($21.9 million) Roll-out of Compass ($9.6 million) Administrative costs ($2.7 million) for marketing, computer systems and training

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10 TABLE OF CONTENTS 1. Financial and Performance Summary Financial and Operating Summary... 6 Financial Indicators... 7 Operating Indicators Consolidated Statement of Operations Analysis Consolidated Revenues Consolidated Expenses by Segment Consolidated Expenses by Category Investment in Capital Assets Active Capital Projects Approved in Principle (AIP) Projects Closed Capital Projects Cancelled Capital Projects Changes in Financial Position Financial Assets Liabilities Non-Financial Assets Liquidity and Capital Resources Cash Flows and Liquidity Debt Funded Statement of Operations Funding Adjustments Appendix I Consolidated Financial Statements Consolidated Statement of Financial Position Consolidated Statement of Operations Consolidated Statement of Changes in Net Debt Consolidated Statement of Cash Flows Segment Report Appendix II Allocated Costs between Divisions Appendix III KPI s Page 1

11 Caution Regarding Forward-Looking Statements From time to time, TransLink makes written and/or oral forward-looking statements, which may appear in this document and in other communications. In addition, representatives of TransLink may make forward-looking statements orally to analysts, investors, the media and others. Forward-looking statements, by their nature, require TransLink to make assumptions and are subject to inherent risk and uncertainties. In light of the uncertainty related to the financial, economic, and regulatory environments, such risks and uncertainties, many of which are beyond TransLink s control, and the effects of which can be difficult to predict, may cause actual results to differ materially from the expectations expressed in the forward-looking statements. Page 2

12 1. Financial and Performance Summary TransLink serves the people of this region, and our services are funded by their taxes and fares. It is our responsibility to deliver clean, safe, reliable service and to ensure that we spend those dollars wisely to minimize costs and maximize revenues. TransLink recorded a surplus of $62.5 million for the first nine months of 2015 ($60.6 million higher than budget and $20 million higher than the same period in 2014). In addition, due to a required change in accounting treatment related to a new agreement with the Union of British Columbia Municipalities (UBCM) for Federal Gas Tax Funds signed in August 2015, TransLink booked additional income of $85 million in the third quarter. As a result, the recorded surplus for the first nine months of 2015 was $147.5 million. As further explanation for the significant change in accounting treatment related to the accounting for Federal Gas Tax Funds, as a result of the change in the contract terms with UBCM, generally accepted accounting principles for Public Sector require that the funds received must now be recorded as revenue at the time the funds are spent. Previously, the contract required the assets to be held for at least ten years and the funds received were then recorded as revenue over that ten year period. Other key factors contributing to the favourable results to budget include: Increased revenues from: o Fuel tax revenue ($8.0 million) o Golden Ears Bridge tolls ($3.8 million) o Gain on sale of surplus property ($2.4 million) o Adjacent Integrated Development properties (AID) ($2.0 million) Lower costs for: o Fuel and power costs ($4.6 million) due to lower market prices and consumption o Fare media and credit card fees ($2.1 million) o Salaries, wages and benefits ($1.0 million) largely due to additional vacancy savings, lower benefit costs and favourable rate variances Delayed timing of planned expenses: o Major Road Network contributions to municipalities ($21.9 million) o Roll-out of Compass ($9.6 million) o Administrative costs ($2.7 million) for marketing, computer systems and training The 2015 forecast is expected to result in a $161.4 million surplus which includes approximately $124.2 million from the change in accounting treatment related to the Federal Gas Tax funds. Without this change the surplus would be $37.2 million, which is $35.2 higher than budget. This favourable variance is mainly due to better than expected taxation and tolling revenues and the timing of contributions to municipalities. TransLink manages to a funding model required under the South Coast British Columbia Transportation Authority (SCBCTA) Act, where as shown on page 26, a $1 million deficit is forecasted for the year. Page 3

13 TransLink s three key priorities for 2015 include supporting the Metro Vancouver Transportation and Transit Plebiscite, implementing Compass Card and enhancing SkyTrain operations. Highlights of the first nine months of 2015 are: 1. Metro Vancouver Transportation and Transit Plebiscite - Support the Mayors Council efforts to achieve a positive outcome ( Yes vote) in the plebiscite. Although the outcome of the Metro Vancouver Transportation and Transit Plebiscite was a no vote, TransLink continued to build relationships with stakeholders. During the summer, TransLink took steps toward securing senior government funding for the major investments that are part of the Mayors Council Vision. This included moving forward with work on developing the rapid transit network in Surrey and Langley, the Broadway SkyTrain extension, and the Pattullo Bridge replacement. 2. Compass Card - Continue to launch the program with a phased approach throughout Our strategy for delivering Compass in phases is working. All ten post-secondary institutions in the region are fully on the U-Pass BC Program using the Compass Card. Adult Compass Cards are now available for purchase via Compass Vending Machines at all West Coast Express and almost all SkyTrain stations on the Expo, Millennium and Canada lines. By November, Compass Cards were available at all remaining SkyTrain stations, Compass retailer outlets, customer service walk-in centres, and by mail (through ordering online or by phone). To help customers transition to Compass and adopt the new tapping behaviour, TransLink has rolled out a customer education and outreach plan. Our goal is to ensure customers are aware of our plans and timelines, know where to get their questions answered, and start realizing the benefits of Compass. The marketing, communications and customer engagement programs for Compass and the move to a one-zone fare for buses, includes: advertising, digital media, and media relations campaign for Bus Anywhere with a One Zone Fare. a customer outreach program, more than 100,000 customers were reached at stations throughout the system. advertising, promotion and media relations in support of Compass for West Coast Express and U-Pass BC. 3. SkyTrain Operations Continue to enhance the resiliency and reliability of the transportation network. Independent review: Transit operations are at the core of our mandate. In the first nine months of 2015, TransLink continued to improve system resiliency to provide reliable service and sustain ridership. TransLink and the British Columbia Rapid Transit Company (BCRTC) have initiated action on all the recommendations from the SkyTrain Independent Review. This work is planned over the next five years at an estimated cost of $89 million. Of the 20 recommendations, six are complete, 11 are in progress, and the remainder are in the development stage. Page 4

14 Investment in Infrastructure: TransLink continues to invest in infrastructure to minimize disruptions and improve customer experience with the transit system. In the third quarter, the Main Street-Science World Station Upgrade was completed. Improvements at this station have brought it up to modern accessibility standards, improved the transfer experience for passengers arriving by bus, making the station safer, and increase the capacity for Expo Line ridership growth. The upgrades included: new entrances, new escalators, stairs and elevator to increase capacity and improve accessibility, better lighting and visibility for a safer and improved customer experience, and a new secure bike parkade. TransLink also replaced major sections of the original 30-year-old Expo Line track. A total of 4,550 linear metres of rail (5.7 per cent) were replaced to keep the system safe and reliable for many years to come. We were able to keep the SkyTrain service running over the two weekends when work took place, and kept our customers moving. Several infrastructure improvement projects are currently underway, ultimately enhancing the resiliency and reliability of the transportation network and improving customers experience. These include station upgrades at Commercial-Broadway, New Westminster, and Metrotown SkyTrain stations, as well as improvements at associated bus exchanges. With thousands of customers boarding our trains every day, we understand the impact maintenance work can have on our customers. We make every effort to limit customer impacts while maintaining service; inform our customers of potential impacts ahead of time; and promptly respond to customer complaints and inquiries. Evergreen integration: Delivery of key systems continues to enable the integration of the Evergreen extension into the existing SkyTrain system. This is the next major expansion of the rail network and is expected to increase ridership and accessibility to the transit system and improve customers experience. Page 5

15 2. Financial and Operating Summary CONSOLIDATED REVENUES AND EXPENSES YEAR OVER YEAR ACTUAL TO BUDGET FORECAST TO BUDGET YTD YTD YTD YTD Annual Annual Annual Nine months ending September Year Over Year 2015 Budget Variance Forecast Variance ($ thousands) ACTUAL ACTUAL CHANGE % BUDGET Fav/ (Unfav) % FORECAST BUDGET Fav/ (Unfav) % Revenue Taxation 556, ,329 21, % 567,204 10, % 770, ,456 14, % Transit 369, ,090 11, % 385,111 (4,021) (1.0%) 507, ,214 (11,973) (2.3%) Transfers from Government 66, ,837 88, % 69,885 84, % 224,627 98, , % Golden Ears Bridge tolls 31,643 36,564 4, % 32,758 3, % 48,767 43,580 5, % Interest Income 25,430 25,323 (107) (0.4%) 24, % 34,006 33, % Amortization of Deferred Concessionaire Credit 17,407 17, , ,337 23, Miscellaneous 3,041 4,662 1, % 2,624 2, % 5,546 3,489 2, % Sub Total Continuing Operations 1,069,004 1,197, , % 1,099,851 97, % 1,614,293 1,478, , % Emissions Testing 10,577 - (10,577) (100.0%) Gain on Disposal 6,716 2,366 (4,350) (64.8%) - 2,366-11,754 9,388 2, % Total Revenue 1,086,297 1,199, , % 1,099,851 99, % 1,626,047 1,487, , % Expenditures Bus Division 471, ,511 8, % 487,716 8, % 645, ,590 7, % Corporate operations 44,030 53,038 9, % 57,424 4, % 76,824 76, % Rail Division 188, ,560 8, % 199,422 2, % 267, ,563 (701) (0.3%) Roads & Bridges 52,579 39,457 (13,122) (25.0%) 63,702 24, % 71,910 87,940 16, % Transit Police 22,994 24,161 1, % 24, % 33,069 33, % Amortization of Capital Assets* 119, ,277 2, % 121, % 168, ,321 3, % Interest* 129, ,533 (4,113) (3.2%) 124,296 (1,238) (1.0%) 166, ,546 (342) (0.2%) Sub Total Continuing Operations 1,028,303 1,039,537 11, % 1,079,406 39, % 1,430,033 1,456,154 26, % AirCare 11,880 - (11,880) (100.0%) Corporate - onetime 3,598 12,527 8, % 18,510 5, % 34,659 29,672 (4,987) (16.8%) Total Expenditures 1,043,781 1,052,064 8, % 1,097,916 45, % 1,464,692 1,485,826 21, % Surplus (deficit) for the period 42, , , % 1, , % 161,355 1, , % Accumulated surplus, beginning of period 126, ,313 26, % 169,063 (15,750) (9.3%) 153, ,063 (15,750) (9.3%) Accumulated surplus, end of period 168, , , % 170, , % 314, , , % * shown as a separate line to help facilitate analysis of debt service costs, as GAAP statements allocate these amounts to the various segments The surplus for the nine months ending September 30 was $147.5 million, $105.0 million higher than the same period in 2014, and $145.6 million higher than budget. Funds received through the Federal Gas Tax programs are now recognized as revenue when the funds are spent. This shows under Transfers from Government and is the main reason for the large variance from both prior year and budget. Excluding Transfer from Government, revenue from continuing operations is $39.4 million more than last year and $12.4 million more than budget. Compared to 2014 the increase was largely due to, taxation, transit revenues and tolls. Compared to budget, the main increases are taxation and toll revenue, offset slightly by transit revenue. The emissions testing program through AirCare ended December 31, Year-to-date expenses from continuing operations compared to the same period in 2014 were $11.2 million (1.1 per cent) higher than last year and $39.9 million (3.7 per cent) lower than budget. Compared to 2014, higher Compass operating payments and contractual labour increases were partially offset by lower capital infrastructure contributions for road related projects, and lower interest costs as a result of debt renewal at lower interest rates. Compared to budget, the positive variance was mainly due to timing differences and lower fuel costs. The excess of revenues over expenses for 2015 is forecast to be $161.4 million, $159.4 million better than budget. Excluding Transfer from Government, it is $33.7 million better than budget. Page 6

16 Financial Indicators FINANCIAL INDICATORS December 31 September 30 September Budget Variance ($ thousands) ACTUAL ACTUAL Change % BUDGET Fa v/ (Unfa v) % Cumulative Funded Reserve 1 365, ,424 23, % 349,085 39, % Gross interest cost as a % of operating revenue 13.1% 12.4% (0.7%) (5.1%) 12.4% 0.0% 0.0% Capital Assets 4,511,992 4,557,669 45, % 4,780,930 (223,261) (4.9%) Direct debt 2 (1,933,022) (1,890,594) (42,428) (2.2%) (1,932,151) 41, % Indirect P3 Debt 3 (1,647,044) (1,629,421) (17,623) (1.1%) (1,630,963) 1, % Total Direct and Indirect P3 debt (3,580,066) (3,520,015) (60,051) (1.7%) (3,563,114) 43, % 1 As calculated under the SCBCTA Act represents the amount of resources available to fund future operations. 2 Includes bonds, debentures, capital leases, short-term debt net of sinking funds and debt reserve deposits 3 Includes deferred concessionaire credits and GEB contractor liability. In the first nine months of 2015, the cumulative funded reserve increased $23.2 million (6.4 per cent) to $388.4 million. The gross interest cost as a percentage of operating revenues improved to 12.4 per cent from the 2014 year-end. This is well within TransLink s 20 per cent policy limit. Tangible capital assets have increased $45.7 million (1.0 per cent) primarily as a net result of $167.0 million in additions less amortization of $121.3 million. Asset additions include: Information Technology Systems, Trolley Overhead Improvements, Infrastructure, and Vehicle Replacements. Compared to budget, the Capital assets are lower by $223.3 million due to timing of project completions. Direct debt decreased by $42.4 million (2.2 per cent) from the 2014 year end. This decrease was due to contributions to sinking funds partially offset by a $30 million increase in short-term commercial paper borrowings. Compared to budget, the variance is $41.6 million (2.2 per cent) favourable mainly due to lower short-term borrowing requirements. Indirect Public-Private Partnership (P3) debt, which includes the liability owed to the Golden Ears Bridge contractor and the Canada Line deferred concessionaire credit, declined by $17.6 million (1.1 per cent) in the first nine months of This reduction was primarily due to the amortization of the Canada Line deferred concessionaire credit. Page 7

17 Operating Indicators OPERATING INDICATORS Nine months ending September Year Over Year 2015 Budget Variance ACTUAL ACTUAL Change % BUDGET Fa v/ (Unfa v) % Scheduled Transit Service Overall Performance Rating (out of 10) (0.1) (1.3%) 7.6 (0.1) (1.3%) Service Hours 4,689,291 4,674,062 (15,229) (0.3%) 4,723,111 (49,049) (1.0%) Cost Recovery Ratio % 54.2% (0.7%) (1.2%) 53.0% 1.2% 2.3% Operating Cost per Capacity Km Complaints per million Boarded Passengers 2 3 $0.080 $0.082 $ % $0.084 $ % % 91.7 (1.4) (1.5%) Access Transit Service Number of Trips 871, ,084 29, % 911,948 (10,864) (1.2%) Number of Trips Denied 16, (15,516) (94.2%) 1, % Operating Cost per Trip $41.22 $41.31 $ % $41.49 $ % Operator complaints as a percentage of trips 0.06% 0.03% (0.03%) (50.0%) 0.04% (0.01%) (25.0%) Service complaints as a percentage of trips 0.07% 0.07% 0.00% % (0.02%) (22.2%) Golden Ears Bridge Crossings (thousands) 8,733 9, % 8, % Average Toll per Crossing $3.62 $3.85 $ % $3.69 $ % Ridership Boarded passengers (thousands) 270, ,835 (1,980) (0.7%) 274,763 (5,928) (2.2%) Revenue passengers (thousands) 177, ,854 (2,016) (1.1%) 181,192 (5,338) (2.9%) Average fare per revenue passenger $2.09 $2.17 $ % $2.14 $ % 1 The Cost Recovery Ratio is for scheduled transit services and excludes depreciation and interest expense. Prior year ratio has been updated for consistency. 2 Includes Bus, SeaBus, Expo & Millennium line, Canada Line, West Coast Express and Police operating costs. 3 The 2014 actual boardings have been restated with the final boarding numbers and the complaints have been restated to reflect alignment in complaint definitions. Scheduled Transit Service (Conventional) Service hours are lower year over year mainly due to additional train service in 2014 provided through Train2Main during construction of the Main Street Station. Service hours are lower than budget due to the timing of planned bus service adjustments and cancelled West Coast Express service in March 2015 due to the Port Metro Vancouver fire. Operating cost per capacity kilometre is up 2.1 per cent over last year due to contractual increase in costs, but is favourable to budget by 2.4 per cent. Complaints per million boarded passengers increased 4.7 per cent year over year mainly related to SkyTrain vehicles and fare refunds from Ticket Vending Machines for the Expo and Millennium Lines. West Coast Express complaints were up due to CPR freight issues, track maintenance program and riders transitioning to Compass. Page 8

18 Access Transit Service With the strategy to utilize taxis as well as HandyDART Shuttles, Access Transit trip denials are down 94.2 per cent over the same period last year. Operating cost per trip is close to last year s level. Expected inflationary increases have been offset by lower costs due to increased taxi trips (which are less expensive than HandyDART vehicle trips). The operating cost per trip is slightly unfavourable to budget due to the lower number of trips than expected. Operator and service complaints measures are both lower than the previous year due to the reduction in trip denials and diligent follow up after every complaint by the HandyDART contractor, MVT Canadian Bus Inc. Golden Ears Bridge The average toll per crossing of $3.85 was an increase of 6.4 per cent over the same period in 2014 due to annual inflation increase in the rates and fewer discounted crossings. Transit Ridership Boarded and revenue passengers were slightly lower than 2014 and were 2.2 per cent and 2.9 per cent respectively lower than budget. Revenue passengers were budgeted to increase 2.2 per cent in 2015 from the 2014 annual forecast, mainly due to general population growth and continued service optimization. We are continuing our program of service optimization; however, there are now fewer opportunities to improve our efficiency while still minimizing impacts to customers. Ridership may also be affected by a 30 per cent year-over-year drop in crude oil prices and increased automobile purchases. The average fare per revenue passenger increased 3.7 per cent over 2014 due to the mix of discounted products sold, and is 1.3 per cent higher than budget. TransLink is looking at strategies and initiatives to increase ridership and revenues. Page 9

19 3. Consolidated Statement of Operations Analysis Consolidated Revenues CONSOLIDATED REVENUES Nine months ending September 30 YTD 2014 YEAR OVER YEAR ACTUAL TO BUDGET FORECAST TO BUDGET YTD 2015 Year Over Year YTD 2015 YTD Budget Variance Annual 2015 Annual 2015 Annual Forecast Variance ($ thousands) ACTUAL ACTUAL CHANGE % BUDGET Fa v/ (Unfa v) % FORECAST BUDGET Fa v/ (Unfa v) % Taxation 556, ,329 21, % 567,204 10, % 770, ,456 14, % Transit 369, ,090 11, % 385,111 (4,021) (1.0%) 507, ,214 (11,973) (2.3%) Transfers from Government 66, ,837 88, % 69,885 84, % 224,627 98, , % Golden Ears Bridge tolls 31,643 36,564 4, % 32,758 3, % 48,767 43,580 5, % Interest Income 25,430 25,323 (107) (0.4%) 24, % 34,006 33, % Amortization of Deferred Concessionaire Credit 17,407 17, , ,337 23, Miscellaneous 3,041 4,662 1, % 2,624 2, % 5,546 3,489 2, % Revenue Before Gain/(Loss) on Disposals 1,069,004 1,197, , % 1,099,851 97, % 1,614,293 1,478, , % Emissions Testing 10,577 - (10,577) (100.0%) Gain on Disposal 6,716 2,366 (4,350) (64.8%) - 2,366-11,754 9,388 2, % Total Revenue 1,086,297 1,199, , % 1,099,851 99, % 1,626,047 1,487, , % Overview TransLink receives its revenue mainly through taxation, user fees and government transfers. Revenue before gains on disposals in the first nine months of 2015 was $1.2 billion, an increase of $128.2 million (12.0 per cent) over the same period in 2014 and $97.4 million (8.9 per cent) better than budget. Year-over-year Taxation TAXATION REVENUES Nine months ending September YTD 2015 YTD YEAR OVER YEAR ($ thousands) ACTUAL ACTUAL CHANGE % Fuel 255, ,082 11, % Property & Replacement 242, ,071 6, % Parking Rights 44,265 47,127 2, % Hydro Levy 14,647 15, % Total Taxation 556, ,329 21, % Taxation revenues year to date were $21.2 million (3.8 per cent) higher than the same period in Fuel tax revenues increased by $11.0 million (4.3 per cent). Gasoline sales volumes as reported by the Consumer Taxation Branch (CTB) for the Metro Vancouver s region show a year-over-year increase of 3.9 per cent and increased diesel sales volumes of 0.7 per cent. The increase in fuel volumes for gasoline is also consistent with reports by independent marketing sources. Property and replacement tax revenue increased by $6.9 million (2.8 per cent) over 2014, which is in line with the legislated allowable increase, net of an allowance for adjustments when tax rolls are finalized. Parking Rights tax revenue increased by $2.9 million (6.5 per cent) over the same period in Increased Vehicle Kilometres Travelled (VKT) in the transit region and specific events such as the 2015 FIFA Women s World Cup may have contributed to the increase. Page 10

20 Transit TRANSIT REVENUES Nine months ending September YTD 2015 YTD YEAR OVER YEAR ($ thousands) ACTUAL ACTUAL CHANGE % Fares 285, ,503 6, % Programs 72,199 74,301 2, % Fare Revenue 357, ,804 9, % Other 11,527 14,286 2, % Total Transit 369, ,090 11, % Transit revenues, consisting of all transit fares and related revenues, such as transit advertising and fare infraction revenue, increased by $11.8 million (3.2 per cent) when compared to the first nine months of Year-over-year revenue from fares and programs were $9.0 million (2.5 per cent) better than the same period in Revenue from fares was $6.9 million (2.4 per cent) higher despite preliminary ridership being 1.0 per cent lower than the previous year. This is largely attributed to changing patterns in fare product purchases. Customers are shifting to purchasing FareSavers that yield a lesser discount than Monthly Passes, but provide greater flexibility. Revenue from programs increased $2.1 million (2.9 per cent) over Approximately half of the increase is related to U-Pass BC revenues due to a contracted student rate increase in May. The other half of the increase is due to an adjustment for the Government BC Bus Pass program that was included in Other Transit Revenue was $2.8 million (23.9 per cent) higher than 2014 due to an increased focus on obtaining commercial value from real estate assets through rentals, advertising and Park & Ride programs; as well as increased Fare Infraction revenue resulting from fare enforcement efforts to reduce fare evasion. Transfers from Government Transfers from government were $88.8 million (134.6 per cent) higher than In August 2015 TransLink signed a new agreement with the Union of British Columbia Municipalities (UBCM), effective April 1, 2014, for the transfer of Federal Gas Tax Funds. The new agreement removes a previous holding period stipulation resulting in revenue being recognized as eligible costs are incurred rather than being amortized over the holding period. Included in 2015 is an adjustment for revenues from April to December 2014 of $44 million. Golden Ears Bridge Tolls Year-to-date toll revenues were $4.9 million (15.6 per cent) higher than the same period in The majority of the increase is due to an 8.8 per cent increase in vehicle crossings which is consistent with overall trends in Vehicle Kilometres Travelled (VKT) in Metro Vancouver. There was also a 2.4 per cent Page 11

21 increase in the average toll rate, partially due to the bylaw inflationary rate increase in July of each year, as well as fewer drivers taking advantage of the discounted rate options. Interest Income Interest income was $107 thousand (0.4 per cent) lower year to date as compared to the prior year, due to lower sinking fund balances associated with matured debt and lower interest income resulting from lower general cash reserves and lower interest rates. Miscellaneous Income Miscellaneous income increased $1.6 million (53.3 per cent) over 2014 as a result of Adjacent and Integrated Development (AID) projects. TransLink has recently implemented new non-taxation revenue sources such as wireless telecommunication royalties and AID projects. With AID projects, TransLink receives financial compensation from developers who build infrastructure adjacent to SkyTrain stations. Actual vs Budget and Forecast Taxation TAXATION REVENUES ACTUAL TO BUDGET FORECAST TO BUDGET Nine months ending September YTD Budget Variance 2015 ANNUAL Forecast Variance ($ thousands) ACTUAL BUDGET Fa v/ (Unfa v) % FORECAST BUDGET Fa v/ (Unfa v) % Fuel 266, ,083 7, % 356, ,111 12, % Property & Replacement 249, , , , Parking Rights 47,127 45,160 1, % 62,202 60,235 1, % Hydro Levy 15,049 14, % 20,174 20, % Total Taxation 577, ,204 10, % 770, ,456 14, % Year-to-date taxation revenue is $10.1 million (1.8 per cent) better than budget and is forecast to be $14.3 million (1.9 per cent) better than budget at year end. Fuel tax revenues were $8.0 million (3.1 per cent) higher than budget. The Metro Vancouver region has experienced an increase in vehicle purchases and Vehicle Kilometres Travelled (VKT), resulting in increasing local fuel sales. In addition, an unfavourable USD/CAD exchange rate has reduced the amount of cross border fuel purchases. Based on information from third party sources, the higher sales volumes are expected to continue throughout 2015 resulting in the forecast for fuel tax revenues being 3.5 per cent better than budget. Parking Rights tax revenues were $2.0 million (4.4 per cent) higher than budget likely due to factors such as increased Vehicle Kilometres Travelled in the transit region and, specific events such as the 2015 FIFA Women s World Cup. Page 12

22 TRANSIT REVENUES ACTUAL TO BUDGET FORECAST TO BUDGET Nine months ending September YTD Budget Variance 2015 ANNUAL Forecast Variance ($ thousands) ACTUAL BUDGET Fa v/ (Unfa v) % FORECAST BUDGET Fa v/ (Unfa v) % Fares 292, ,258 (4,755) (1.6%) 384, ,083 (10,918) (2.8%) Programs 74,301 75,237 (936) (1.2%) 104, ,315 (2,780) (2.6%) Fare Revenue 366, ,495 (5,691) (1.5%) 488, ,398 (13,698) (2.7%) Other 14,286 12,616 1, % 18,541 16,816 1, % Total Transit 381, ,111 (4,021) (1.0%) 507, ,214 (11,973) (2.3%) Year-to-date total transit revenues are $4.0 million (1.0 per cent) below budget and forecasted to be $12.0 million (2.3 per cent) below budget for the full year. Year-to-date revenue from fares was $4.8 million (1.6 per cent) unfavourable to budget as a result of lower than expected ridership. Ridership was budgeted to increase 2.2 per cent over Year-to-date preliminary ridership is slightly lower. The forecast for fare revenue is expected to be $10.9 million (2.8 per cent) unfavourable by the end of the year. Year-to-date Program revenue was $936 thousand (1.2 per cent) below budget, due to fewer than budgeted Government Bus Pass Program and U-Pass BC Program participants. Program revenue is forecast to be $2.8 million (2.6 per cent) lower for the same reasons. Transfers from Government Transfers from government were $85.0 million (121.6 per cent) higher than budget and are forecast to be $125.6 million (126.9%) better than budget by year-end as a result of a change in revenue recognition. A $77 million charge was entered in August 2015 to reflect the impact of the new revenue recognition for project funding between April 2014 and August The remaining variance is the result of timing of capital project expenditures. The current forecast of $224.6 million has been adjusted to reflect the impact of the new agreement and is $125.6 million more than budget. Golden Ears Bridge Tolls Year-to-date toll revenues were $3.8 million (11.6 per cent) higher than budget resulting from 7.0 per cent higher vehicle crossings than expected, and additional interest revenue from delinquent Quickpass accounts. While crossings are up substantially, changes in vehicle mix resulted in the average toll rate being only 0.7 per cent higher than budget. Overall, tolling revenue forecast is expected to be $5.2 million (11.9 per cent) better than budget by the end of the year. Interest Income Interest income was $461 thousand (1.9 per cent) higher in the first nine months compared to budget, due to higher than budgeted surplus cash balances in the third quarter. These higher cash balances are expected to continue for the reminder of the year, which will bring the forecast to $653 thousand (2.0 per cent) higher than budget by year-end. Page 13

23 Miscellaneous Income Miscellaneous income was $2.0 million (77.7 per cent) better than budget as a result of Adjacent and Integrated Development (AID) projects. Page 14

24 Consolidated Expenses by Segment Year-over-Year CONSOLIDATED EXPENSES BY SEGMENT Nine months ending September YTD 2015 YTD YEAR OVER YEAR ($ thousands) ACTUAL ACTUAL CHANGE % Bus Division 471, ,511 8, % Corporate operations 44,030 53,038 9, % Rail Division 188, ,560 8, % Roads & Bridges 52,579 39,457 (13,122) (25.0%) Transit Police 22,994 24,161 1, % Amortization of Capital Assets** 119, ,277 2, % Interest** 129, ,533 (4,113) (3.2%) Sub Total Continuing Operations 1,028,303 1,039,537 11, % AirCare 11,880 - (11,880) (100.0%) Corporate - onetime 3,598 12,527 8, % Total Expenses by Segment 1,043,781 1,052,064 8, % ** shown as a separate line to help facilitate analysis of debt service costs, as GAAP statements allocate these amounts to the various segments Bus Division operating expenditures were $8.1 million (1.7 per cent) higher year over year due to labour and other contractual and economic increases, a higher USD/CAD exchange rate, increased business technology costs and inflation on maintenance materials and services, partially offset by lower fuel costs due to market prices and consumption. Corporate Operations were $9.0 million (20.5 per cent) higher than the same period in 2014 mainly due to contractual labour increases and contracted services related to the rollout of the Compass system. The remainder was related to increased professional fees for corporate initiatives and Adjacent and Integrated Development (AID) costs which are recoverable from developers as well as credit card fees which were previously netted against revenues. Offsetting some of these increases were reduction in property tax and lease costs. Rail Division costs were $8.1 million (4.3 per cent) higher than prior year mainly from; additional state of good repair costs specifically to guideway and elevating devices, impact of the new collective agreement that was ratified at the end of 2014, inflation increase for Canada Line performance payments in 2015, an increase in Bombardier Rail lease payments, and increased staffing levels. The increased staffing is in response to recommendations from the Independent SkyTrain review. Roads and Bridges spending was $13.1 million (25.0 per cent) lower in 2015 due to timing differences from the municipalities for completed capital infrastructure projects. Transit Police costs were up by $1.2 million (5.1 per cent) over the same period in 2014, due to retroactive wage increases negotiated in the new collective agreement going back to This was partially offset by lower professional and legal fees related to indemnification of police officers. Page 15

25 Amortization expense increased $2.1 million (1.8 per cent) over 2014 largely due to information systems and SkyTrain infrastructure asset additions. Interest expense was $4.1 million (3.2 per cent) lower than the prior year as a result of a renewal of a large portion of TransLink s debt at lower interest rates. Corporate One-time costs were $8.9 million (248.2 per cent) higher than the prior year one-time costs include the Transportation Plebiscite, Rapid Transit studies, the Compass project, and corporate restructuring. Actual vs Budget and Forecast CONSOLIDATED EXPENSES BY SEGMENT ACTUAL TO BUDGET FORECAST TO BUDGET Nine months ending September YTD Budget Variance 2015 ANNUAL Forecast Variance ($ thousands) ACTUAL BUDGET Fa v/ (Unfa v) % FORECAST BUDGET Fa v/ (Unfa v) % Bus Division 479, ,716 8, % 645, ,590 7, % Corporate operations 53,038 57,424 4, % 76,824 76, % Rail Division 196, ,422 2, % 267, ,563 (701) (0.3%) Roads & Bridges 39,457 63,702 24, % 71,910 87,940 16, % Transit Police 24,161 24, % 33,069 33, % Amortization of Capital Assets** 121, , % 168, ,321 3, % Interest** 125, ,296 (1,237) (1.0%) 166, ,546 (342) (0.2%) Sub Total Continuing Operations 1,039,537 1,079,406 39, % 1,430,033 1,456,154 26, % Corporate - onetime 12,527 18,510 5, % 34,659 29,672 (4,987) (16.8%) Total Expenses by Segment 1,052,064 1,097,916 45, % 1,464,692 1,485,826 21, % ** shown as a separate line to help facilitate analysis of debt service costs, as GAAP statements allocate these amounts to the various segments Bus Division operating expenditures were $8.2 million (1.7 per cent) favourable to budget due to lower fuel prices, staff vacancies, lower employee benefit costs, and timing differences for planned activities including allocated costs for computer systems and fare media. The savings were partially offset by higher revenue vehicle materials costs including the impact of the USD/CAD exchange rate. The annual forecast is expected to be $7.8 million (1.2 per cent) favourable to budget as a result of lower fuel prices and employee benefit cost estimates offset by higher forecasted revenue vehicle material costs. Corporate Operations expenses were $4.4 million (7.6 per cent) favourable to budget mainly due to timing of expenditures for contractor payments for Compass, and credit card fees. The annual forecast is expected to be within budget. Rail Division Year to date Rail Division operating costs were $2.8 million (1.4%) lower than budget as a result of position vacancies, lower hydro consumption, lower fare media costs related to Compass roll out, timing of business technology costs, favourable insurance rates, and timing of state of good repair costs, which were slightly offset by higher overtime. The forecast for 2015 is $701 thousand (0.3 per cent) unfavourable to budget as a result of increased frontline staff in response to recommendations from the Independent SkyTrain review. Page 16

26 Roads & Bridges spending was $24.2 million (38.1 per cent) lower than budget for the first nine months of The majority of this amount is due to timing differences for municipal road contributions. Spending on feasibility studies was also lower than budgeted due to timing of activities. Forecasted spending is expected to be $16.0 million (18.2 per cent) lower than budget mainly due to timing of municipal contributions. Transit Police costs were $825 thousand (3.3 percent) favourable to budget mainly due to lower salary costs resulting from reduced overtime and additional vacancy savings as a result of unfilled vacant sworn positions, timing of; EComm costs, materials purchases, and computers and systems costs. Professional and legal fees are favourable to budget as result of lower costs for indemnification of police officers. Transit Police is forecasting a favourable variance of $194 thousand for Amortization expense was $583 thousand (0.5 per cent) favourable to budget due to timing of project completions. The forecast for the year is $3.1 million (1.8 per cent) better than budget, also related to timing. Interest expense was $1.2 million (1.0 per cent) unfavourable to budget due to timing of capital project financing, partially offset by favourable short term commercial paper borrowing and rates. The forecast for 2015 is expected to be $342 thousand (0.2 per cent) unfavourable to budget by year end. Corporate One-time costs were $6.0 million (32.3 per cent) lower than budget for the first nine months of the year mainly due to timing of spending related to the phase in of Compass, and SkyTrain resiliency, offset by increased rapid transit studies and Corporate restructuring costs. The forecast for 2015 is expected to be $5.0 million (16.8 per cent) unfavourable to budget mainly due to increased spending on Rapid transit studies, seismic design work related to Pattullo bridge rehabilitation project and corporate restructuring costs, partially offset by drawing of contingency funds into Corporate and Rail operations. Page 17

27 Consolidated Expenses by Category Corporate - onetime 12,527 Professional and Legal 10,719 Insurance 14,607 Administration 21,316 Rentals, Leases, Prop. Tax 30,021 Capital Infrastructure contributions 9,360 Fuel and Power 48,690 Salaries, Wages and Benefits 422,182 Maintenance, Materials and Utilities 85,320 Amortization 121,277 Expense by Category 2015 YTD ACTUAL Interest 125,533 Contracted Services 150,512 In the first nine months of 2015, salaries and wages accounted for 40 per cent of TransLink s operating costs. The breakdown is as follows: Bus Division - $316.6 million (75 per cent of total salary and wages related costs); Rail Division - $56.1 million (13 per cent); TransLink s Corporate Division - $31.3 million (7 per cent); and Transit Police - $20.2 million (5 per cent). Contracted services accounted for 14 per cent of TransLink s operating costs. Contracted services include: $79.6 million (53 per cent of total contracted services) for Canada Line contractor payments; $35.6 million (24 per cent) to operate the HandyDART and Taxi Saver programs; $15.5 million (10 per cent) to operate the contracted community shuttle and the West Vancouver bus services; $9.1 million (6 per cent) for TransLink bridges; $7.5 million (5 per cent) to operate the West Coast Express; and $3.2 million (2.0 per cent) for Compass contractor payments. Interest and amortization expenses totalled $246.8 million, which represents 23 per cent of total expenses. Administration costs account for 0.2 per cent of total operating budget. Page 18

28 4. Investment in Capital Assets Summary of Capital Program ($ thousands) Number of Projects Current Budget ($) 2015 YTD Spending ($) Cumulative Spending to Date ($) Final Forecast Cost ($) Senior Government Funding (Committed) ($) ($) (%) Capital Projects Active Capital Projects Equipment 10 23, ,428 23,176 (52) -0.2% 4,500 Facilities ,548 23,662 71, , % 84,978 Infras tructure ,014 49, , ,647 1, % 250,735 Major Construction 1 402,841 52, , ,112 (271) -0.1% - Technology Applications 13 18,180 1,983 8,887 16,950 1, % - Vehicle - Non Revenue 7 3,474 1,780 1,780 2, % - Vehicle - Revenue 7 131,300 4,072 10, , % 112,988 Subtotal Active Capital Projects 80 1,325, , ,753 1,321,033 4, % 453,201 Approved in Principle Projects (AIP)* Equipment 4 3,569 3, Facilities Infras tructure 7 17,478 17, Major Construction 1 4,626 4, Technology Applications 9 10,232 10, Vehicle - Non Revenue Vehicle - Revenue 3 86,200 86,200-72,144 Subtotal Approved in Principle , ,274-72,450 Subtotal Active and AIP Projects 107 1,448, , ,753 1,444,307 4, % 525,651 Substantially Complete Projects ,983 34, , ,583 9, % 363,098 Closed Projects 27 73,038 2,489 68,673 68,673 4, % 39,596 Cancelled AIP Projects 21 20,237 20, % - Total Capital Projects 204 2,379, ,720 1,476,315 2,360,800 18, % 928,345 *Includes submissions from current and prior year AIP programs Variance to Current Budget The above table highlights the breakdown of TransLink s capital budget. As at the end of the third quarter of 2015, TransLink s total capital project budget is $2.38 billion, including $1.33 billion in active projects and $123.3 million in Approved-in-Principle (AIP) projects. There is $928.3 million in committed senior government funding available to TransLink for a number of projects. Active Capital Projects TransLink s active capital project spending for the first nine months of 2015 totalled $134.6 million across 80 projects. The active capital projects program supports a safe and reliable transit system by replacing and maintaining assets in a state of good repair. TransLink is also undertaking several projects to improve service and increase system capability and capacity. Significant spending occurred on the Evergreen extension, a total of $52.6 million, and the Hamilton Transit Centre, a total of $22.7 Page 19

29 million. The $49.8 million in infrastructure spending relates to the SkyTrain line and station upgrade projects currently under way, the Pattullo bridge rehabilitation project, and Compass. When comparing overall final forecast cost to budget over the 80 active projects, infrastructure and technology projects comprise the largest portion of the $4.4 million forecasted active project favourable variance which represents a 0.3 per cent variance. Year-to-date capital spending centered on major construction, infrastructure improvements and facilities, the highlights by category are as follows: Major Construction spending totaled $52.6 million in the first nine months of 2015 and was directly related to the Evergreen extension. This is the next major expansion of the rail network and is expected to increase ridership and accessibility to the transit system and improve customers experience. The Province, through the BC Transportation Financing Authority, entered into a partnership agreement with TransLink to build the Evergreen extension. Once completed, TransLink will receive specific assets for its contributions to the project and be responsible for maintaining and operating the extension. Infrastructure spending totaled $49.8 million in the first nine months of Several infrastructure improvement projects are currently underway, ultimately enhancing the resiliency and reliability of the transportation network and improving customers experience after completion. The significant costs incurred in the first nine months of the year were under the following projects: Expo Line Upgrade projects: o Expo Line Propulsion Power Upgrade Project, $11.6 million o Metrotown SkyTrain Station and Bus Exchange Upgrade Project, $2.7 million Commercial Broadway SkyTrain Station Upgrade Project, $8.8 million Compass Card and Faregate Project, $11.5 million Pattullo Bridge Rehabilitation Project, $7.1 million Facilities spending totaled $23.7 million in the first nine months of 2015, related mainly to the construction of the new Hamilton Transit Centre (HTC) in Richmond. The HTC will provide operation and maintenance capacity for 300 buses. A total of 49 projects with an aggregate current budget of $837.0 million and a total forecasted cost of $827.6 million are currently deemed substantially complete and in the final stages of project activity with approximately $7.7 million remaining to spend. The total expected favourable variance for these projects is $9.4 million or 1.1 per cent. A large number of these projects are not able to be closed due to warranty periods for capital such as, bus and SkyTrain vehicle replacements. Approved in Principle (AIP) Projects As of September 30, 2015, there were 27 AIP projects that had not yet been initiated with a total AIP aggregate budget of $123.3 million. AIP projects include enterprise wide investment in SkyTrain control equipment, information technology and systems, continued fleet replacements, infrastructure upgrades, and facilities improvements. Page 20

30 The significant projects awaiting approval are: 2016 Conventional Bus Replacement Program ($76.4 million), SkyTrain Signage and Station Fixture Replacements ($6.7 million), and Seismic Upgrades to the South SeaBus Terminal and Skywalk ($6.0 million). Closed Capital Projects As of September 30, 2015, 27 projects with an aggregate cost of $68.7 million and a current budget of $73.0 million were completed and closed. The projects closed include: Bus communications equipment upgrades, maintenance facilities and fleet expansions SkyTrain Fibre Optic System upgrade Trolley Overhead replacements and improvements TransLink Owned Bicycle Infrastructure Upgrades Golden Ears Bridge Transponder Replacements for synchronization with Port Mann Bridge Community Shuttle and Police vehicle replacements Wayfinding case-holder replacement IT improvements for organizational effectiveness, and Powersmart initiatives. Cancelled Capital Projects In the first nine months of 2015, 21 AIP projects with an aggregate budget of $20.2 million were cancelled. These projects were reviewed, prioritized, and cancelled to proactively manage costs, align strategic priorities, and optimally utilize limited resources using a risk based approach with little to no customer or service impact. Page 21

31 5. Changes in Financial Position Consolidated Statement of Financial Position As at As at ($ thousands) September 30, 2015 December 31, 2014 Change % Cash and cash equivalents 268, , , % Accounts Receivable 95, ,644 (6,876) (7.2%) Restricted cash and investments 462, , , % Investments 101, ,717 (46,062) (45.3%) Assets held for sale - 4,868 (4,868) - Debt reserve deposits 36,295 36, % Financial Assets 964, , , % Accounts payable and accrued liabilities 320, ,446 86, % Debt 2,035,437 2,045,356 (9,919) (0.5%) Deferred government transfer 1,188,072 1,201,165 (13,093) (1.1%) Golden Ears Bridge contractor liability 1,051,159 1,051,375 (216) (0.0%) Deferred concessionaire credits 578, ,669 (17,407) (3.0%) Employee future benefits 107,090 99,875 7, % Deferred lease inducements - net 12,854 13,021 (167) (1.3%) Liabilities 5,293,740 5,240,907 52, % Net Debt (4,329,355) (4,422,461) 93,106 (2.2%) Tangible Capital Assets 4,557,669 4,511,992 45, % Supplies Inventory 56,359 51,266 5, % Prepaid Expenses 16,154 12,516 3, % Non-Financial Assets 4,630,182 4,575,774 54, % Accumulated Surplus 300, , , % Financial Assets Cash and cash equivalents increase of $102.5 million is due to receipt of property tax revenues in the beginning of August Restricted cash and investments represent unspent Government Transfers and self-administered sinking funds. The primary reason for the increase in the restricted cash and investments balance of $101.0 million is due to the receipt of $122.6 million for the federal gas tax program. Page 22

32 Liabilities Accounts payable and accrued liabilities increased by $86.4 million primarily due to the unearned property tax revenue (i.e. October to December 2015). Debt is discussed in the "Liquidity and Capital Resources" section. Deferred Government Transfer represents the receipt of capital funding offset by revenue recognized as the related stiuplations in the various government funding agreements are met. During the nine month period ending September 30, 2015, the decrease of $13.1 million was due to $125.9 million of funding received offset by $139.0 million of revenue being recognized. Deferred concessionnaire credits represent the funding provided by the Canada Line Concessionaire. This balance is amortized to income on a straight-line basis over the operating term of the concessionaire agreement, which will expire in July The increase in employee future benefits, which represent post retirement and post employment benefits, is due to the annual estimated current service cost and related interest. The post retirement portion of this liability will draw down upon retirement of the employees. Non-Financial Assets Tangible capital assets have increased by $45.7 million primarily as a net result of $166.9 million in additions less the amortization expense of $121.2 million. Page 23

33 6. Liquidity and Capital Resources Cash Flows and Liquidity Cash and investments increased as a result of the receipt of property tax revenues at the beginning of August. The following table shows TransLink s unrestricted cash and investments net of those investments maturing in 12-months or longer. UNRESTRICTED CASH AND NEAR CASH EQUIVALENTS September 30 December 31 ($ thousands) Change Cash and cash equivalents 268, , ,536 Investments 101, ,717 (46,062) Total Unrestricted cash and investments 369, ,321 56,474 Less: Long term maturities* (12,358) (11,538) (820) Total Unrestricted cash and near cash equivalents 357, ,783 55,654 *investments with maturity periods greater than 365 days TransLink s liquidity position is further supported by a $500 million commercial paper program, of which $120 million is outstanding at the end of third quarter Restricted cash and investments include unspent Government Transfers which are used to fund qualifying capital expenditures. RESTRICTED CASH AND INVESTMENTS September 30 December 31 ($ thousands) Change Unspent government transfers 353, ,279 68,700 Self administered sinking funds 108,548 76,230 32,318 Total Restricted cash and investments 462, , ,018 Page 24

34 Debt Translink currently has three main sources of financing its assets: Net Direct Debt, Indirect P3 Debt and Senior Government Contributions. The latter is represented on the balance sheet as Deferred Government Transfers. Net Direct Debt and Indirect P3 Debt were both relatively unchanged and constitute approximately 40 per cent and 35 per cent of TransLink's debt capital. FINANCING ($ thousands) September 30, 2015 December 31, 2014 Change Direct Debt 2,035,437 2,045,356 (9,919) Less: Self-administered sinking funds (108,548) (76,230) (32,318) Less: Debt reserve deposits (36,295) (36,104) (191) Net Direct Debt 1,890, % 1,933, % (42,428) Golden Ears Bridge contractor liability 1,051,159 1,051,375 (216) Deferred concessionaire credit (Canada Line) 578, ,669 (17,407) Indirect P3 Debt 1,629, % 1,647, % (17,623) Subtotal Net Direct Debt and Indirect P3 Debt 3,520,015 3,580,066 (60,051) Deferred government transfers 1,188, % 1,201, % (13,093) Total 4,708, % 4,781, % (73,144) Financing has decreased primarily as a result of contributions made to self-administered sinking funds and amortization of both the deferred concessionaire credit and deferred government transfers. Page 25

35 7. Funded Statement of Operations Funding Adjustments Funding adjustments are the changes required to the income statement to calculate the cumulative funded surplus under the South Coast British Columbia Transportation Authority (SCBCTA) Act. The cumulative funded surplus is defined as the amount of resources available to fund future operations. The following table presents 2015 first nine months results, including the same period comparisons to prior year and budget, as reconciled between the results for accounting purposes and the results on a funded basis. Adjustments to arrive at the Net Surplus (Deficit) for Funding Purposes primarily include the removal of capital related items and the inclusion of debt repayments. Funded Reconciliation of Operations As of September 30th YEAR TO DATE ANNUAL Budget Variance Budget Variance ($ thousands) ACTUAL ACTUAL BUDGET Fav/ (Unfav) % FORECAST BUDGET Fav/ (Unfav) % Net Surplus (Deficit) for Accounting Purposes 42, ,514 1, , % 161,355 1, , % REVENUE ITEMS Remove effect of AirCare (10,577) Government transfers for capital assets (51,336) (138,980) (55,509) (83,471) (150.4%) (203,920) (79,766) (124,154) (155.6%) Amortization of Deferred Concessionaire Credit (17,407) (17,407) (17,407) - - (23,337) (23,337) - - Debt Service Cost - Interest Income (21,812) (22,011) (21,569) (442) (2.0%) (29,555) (29,116) (439) (1.5%) EXPENSE ITEMS Capital infrastructure contributions 23,564 9,360 31,269 (21,909) (70.1%) 31,612 44,978 (13,366) (29.7%) Remove effect of AirCare 11, Others Amortization expense-assets funded by long term debt or government contributions 113, , ,981 (472) (0.4%) 157, ,279 (4,289) (2.6%) Debt Service Costs (61,117) (70,892) (70,824) (68) (0.1%) (95,265) (95,017) (248) (0.3%) Net Surplus (Deficit) for Funding Purposes 29,626 23,216 (16,124) 39, % (997) (17,996) 16, % Cumulative Surplus Opening Balance 342, , , , , Cumulative Surplus Ending Balance 372, , ,085 39, % 364, ,212 16, % Page 26

36 Appendix I Consolidated Financial Statements The following statements are presented in accordance with generally accepted Canadian accounting principles for local governments, as recommended by the Public Sector Accounting Board of the Chartered Professional Accountants of Canada. Consolidated Statement of Financial Position SOUTH COAST BRITISH COLUMBIA TRANSPORTATION AUTHORITY Consolidated Statement of Financial Position (in thousands of dollars) September 30, 2015, with comparative information for December 31, 2014 September 30 December FINANCIAL ASSETS Cash and cash equivalents $ 268,140 $ 165,604 Accounts receivable 95, ,644 Restricted cash and investments 462, ,509 Investments 101, ,717 Assets held for sale - 4,868 Debt reserve deposits 36,295 36, , ,446 LIABILITIES Accounts payable and accrued liabilities 320, ,446 Debt 2,035,437 2,045,356 Deferred government transfer 1,188,072 1,201,165 Golden Ears Bridge contractor liability 1,051,159 1,051,375 Deferred concessionaire credit 578, ,669 Employee future benefits 107,090 99,875 Deferred lease inducements 12,854 13,021 5,293,740 5,240,907 NET DEBT (4,329,355) (4,422,461) NON-FINANCIAL ASSETS Tangible capital assets $ 4,557,669 $ 4,511,992 Supplies inventory 56,359 51,266 Prepaid expenses 16,154 12,516 4,630,182 4,575,774 Accumulated Surplus $ 300,827 $ 153,313 Page 27

37 Consolidated Statement of Operations SOUTH COAST BRITISH COLUMBIA TRANSPORTATION AUTHORITY Consolidated Statement of Operations (in thousands of dollars) Nine months ended September 30, 2015, with comparative information for September 30, Budget Actual Actual Revenue: Taxation $ 567,204 $ 577,329 $ 556,176 Transit 385, , ,294 Golden Ears Bridge tollings 32,758 36,564 31,643 Emissions testing ,577 Government transfers 69, ,837 66,013 Amortization of deferred concessionaire credit 17,407 17,407 17,407 Interest income 24,862 25,323 25,430 Miscellaneous revenue 2,624 4,662 3,041 Gain on disposal of tangible capital assets - 2,366 6,716 1,099,851 1,199,578 1,086,297 Expenses: AirCare ,880 Bus division 583, , ,642 Corporate 88,289 76,572 57,054 Rail division 264, , ,343 Roads & Bridges 136, , ,696 Transit Police 25,004 24,196 24,166 1,097,916 1,052,064 1,043,781 Surplus for the period 1, ,514 42,516 Accumulated surplus, beginning of period 169, , ,439 Accumulated surplus, end of period $ 170,998 $ 300,827 $ 168,955 Note: AirCare ended operations on December 31, 2014 Page 28

38 Consolidated Statement of Changes in Net Debt SOUTH COAST BRITISH COLUMBIA TRANSPORTATION AUTHORITY Consolidated Statement of Changes in Net Debt (in thousands of dollars) Nine months ended September 30, 2015, with comparative information for September 30, Actual Actual Surplus for the period $ 147,514 $ 42,516 Acquisition of tangible capital assets (166,998) (133,384) Amortization of tangible capital assets 121, ,153 Gain on disposal of tangible capital assets (2,366) (6,716) Net proceeds from disposal of capital assets 2,410 7,698 (45,677) (13,249) Change in supplies inventory (5,093) (2,620) Change in prepaid expenses (3,638) (5,264) (8,731) (7,884) Decrease in net debt 93,106 21,383 Net debt, beginning of period (4,422,461) (4,380,934) Net debt, end of period $ (4,329,355) $ (4,359,551) Page 29

39 Consolidated Statement of Cash Flows SOUTH COAST BRITISH COLUMBIA TRANSPORTATION AUTHORITY Consolidated Statement of Cash Flows (in thousands of dollars) Nine months ended September 30, 2015, with comparative information for September 30, Restated Cash provided by (used for): Operating Transactions: Surplus for the period $ 147,514 $ 42,516 Non-cash charges to operations (36,792) 50,660 Net proceeds from disposal of assets held for sale 4,868 14,164 Changes in non-cash operating working capital 91,780 87,659 Net change in cash from operating transactions 207, ,999 Capital Transactions: Purchase of capital assets (166,998) (133,384) Net proceeds from disposal of capital assets 2,410 7,698 Net change in cash from capital transactions (164,588) (125,686) Investing Transactions: (Increase) decrease in restricted cash and investments (101,018) 51,164 Decrease (increase) in investments 46,062 (118,649) (Increase) decrease in debt reserve deposits (191) 3,518 Net change in cash from investing transactions (55,147) (63,967) Financing Transactions: Debt proceeds 30, Issue costs on financing (21) (6) Repayments of debt (41,424) (79,055) Repayments of Golden Ears Bridge contractor liability (216) - Government transfers received for capital additions 125,887 25,587 Lease inducements received Net change in cash from financing transactions 114,901 (52,713) Increase (decrease) in cash 102,536 (47,367) Cash, beginning of period 165, ,758 Cash, end of period $ 268,140 $ 200,391 Supplementary information: Interest paid $ 110,549 $ 105,938 Page 30

40 SOUTH COAST BRITISH COLUMBIA TRANSPORTATION AUTHORITY Consolidated Statement of Cash Flows (continued) (in thousands of dollars) Nine months ended September 30, 2015, with comparative information for September 30, Restated Non-cash charges to operations: Amortization of capital assets $ 121,277 $ 119,153 Amortization of bond discount Amortization of debt issue cost Amortization of deferred concessionaire credit (17,407) (17,407) Amortization of deferred government transfers (138,980) (51,337) Amortization of deferred lease inducements (371) (361) Interest accretion (net of payments) on contractor liability - 6,220 Gain on disposal of tangible capital assets (2,366) (6,716) $ (36,792) $ 50,660 Changes in non-cash operating working capital: Decrease in accounts receivable $ 6,876 $ 22,707 Increase in supplies inventory (5,093) (2,620) Increase in prepaid expenses (3,638) (5,264) Increase in accounts payable and accrued liabilities 86,420 66,238 Employee future benefit payable 7,215 6,598 $ 91,780 $ 87,659 Page 31

41 Segment Report South Coast British Columbia Transportation Authority Segment Report September 30, Year to Date (in thousands of dollars) Bus Rail Road & Transit Ongoing division Corporate division Bridge Police Total segments AirCare* Total Revenues Taxation $ - $ 577,329 $ - $ - $ - $ 577,329 $ 556,176 $ - $ 556,176 Transit - 381, , , ,294 Golden Ears Bridge tollings ,564-36,564 31,643-31,643 Emissions testing ,577 10,577 Government transfers - 154, ,837 66,013-66,013 Amortization of deferred concessionaire credit , ,407 17,407-17,407 Interest income - 25, ,323 25,430-25,430 Miscellaneous revenue 2,082 2, ,662 3,041-3,041 Gain on disposal of tangible capital assets 96 2, ,366 6,716-6,716 2,178 1,143,055 17,594 36, ,199,578 1,075,720 10,577 1,086,297 Expenses Administration 9,215 14,579 2, ,621 27,609 21, ,916 Capital infrastructure contributions ,360-9,360 23,564-23,564 Contracted services 51,079 3,184 87,126 9, , ,279 10, ,023 Fuel and power 39,213-9, ,690 52,449-52,449 Insurance 10, , ,607 13, ,979 Maintenance, materials and utilities 41, ,683 18, ,320 81, ,503 Professional & legal 1,710 10,209 2, ,813 7, ,915 Rentals, leases and property tax 9,655 6,162 12, ,419 30,021 30, ,559 Salaries, wages and benefits 316,620 30,452 56, , , , ,074 Expenses before amortization and interest 479,511 65, ,560 39,457 24, , ,102 11, ,982 Amortization of capital assets 58,424 6,796 41,900 14, , , ,153 Interest 36,223 4,211 25,981 59, , , ,646 Amortization and interest 94,647 11,007 67,881 73, , , ,799 Total Expenses 574,158 76, , ,697 24,196 1,052,064 1,031,901 11,880 1,043,781 Surplus (deficit) for the period $ (571,980) $ 1,066,483 $ (246,847) $ (76,068) $ (24,074) $ 147,514 $ 43,819 $ (1,303) $ 42,516 * The Aircare Program ceased operations on December 31, 2014 Page 32

42 Appendix II Allocated Costs between Divisions Allocated Cost Breakdown YTD YTD YTD ANNUAL Nine months ending September Year Over Year 2015 Budget Variance 2015 ($ thousands) ACTUAL ACTUAL Change % BUDGET Fa v/ (Unfa v) % BUDGET Shared Services 1 Bus Division 17,569 17, % 18, % 24,213 Access Transit % 1,005 SkyTrain - Expo & Millenium Line % 623 (37) (5.9%) 832 West Coast Express % % 76 Transit Police 1,249 1, % 1, % 2,068 Roads & Bridges 1,533 1,507 (26) (1.7%) 3,582 2, % 4,478 Corporate (21,001) (21,777) (776) (3.7%) (24,781) (3,004) 12.1% (32,673) Total Shared Services allocated Costs Administered by TransLink and allocated to subsidiaries 2 Bus Division 11,604 11,553 (51) (0.4%) 12,648 1, % 16,979 SkyTrain - Expo & Millenium Line 2,694 2, % 3, % 4,432 SkyTrain - Canada Line 1,618 1,510 (108) (6.7%) 1, % 2,234 West Coast Express 10,856 11, % 11, % 15,903 Transit Police 1,191 1, % 1,190 (149) (12.5%) 1,587 Costs Administered by TransLink allocated 27,963 29,077 1, % 30,619 1, % 41,135 Bus Division 29,173 29,146 (27) (0.1%) 30,860 1, % 41,192 Access Transit % 1,005 SkyTrain - Expo & Millenium Line 3,307 3, % 3, % 5,264 SkyTrain - Canada Line 1,618 1,510 (108) (6.7%) 1, % 2,234 West Coast Express 10,889 11, % 11, % 15,980 Transit Police 2,440 2, % 2, % 3,656 Total costs allocated to Subsidiaries from TransLink 47,427 49,347 1, % 51,818 2, % 69,331 1 Includes Business Technology & Human Resources costs. Includes property tax, building leases, insurance, and fare media costs. * Negatives represent allocations out, positive represent allocations in. Note: Human Resources costs are allocated based on headcounts, while Business Technology costs are allocated based on operating usage. Page 33

43 8. Appendix III KPI s OPERATING INDICATORS Nine months ended September Budget Variance ACTUAL ACTUAL BUDGET Fa v/ (Unfa v) % Service Performance Item Safety: Customer Injuries (per 1 million boarded passengers) - CMBC N/A - Expo & Millennium Lines (0.3) (27.3%) - Canada Line % - West Coast Express % - HandyDART (4.7) (56.6%) Safety: Employee Lost Time Frequency - CMBC (per 200,000 hours worked) * % - Expo & Millennium Lines (per 200,000 hours worked) % - West Coast Express (per 200,000 hours worked) % - HandyDART (per 200,000 hours worked) % Safety: CMBC Operator Assaults (per 1 million service hours) N/A Ridership: Boarded Passengers (thousands) - CMBC 180, , ,945 (2,961) (1.6%) - Expo & Millennium Lines 57,213 57,296 59,420 (2,124) (3.6%) - Canada Line 30,226 30,568 30,949 (381) (1.2%) - West Coast Express 1,972 1,985 2,362 (377) (16.0%) - HandyDART 1,099 1,002 1,087 (85) (7.8%) Ridership: Revenue Passengers (thousands) - Overall System 177, , ,192 (5,338.0) (2.9%) Vehicle Service Delivery: Percentage of Service Hours Delivered - CMBC 99.7% 99.7% 99.5% 0.2% 0.2% - Expo & Millennium Lines 99.4% 99.5% 99.5% 0.0% 0.0% - Canada Line 100.0% 99.5% 100.0% (0.5%) (0.5%) - West Coast Express 99.8% 99.6% 100.0% (0.4%) (0.4%) - HandyDART (% of requested trips delivered) 97.5% 99.6% N/A Vehicle Punctuality: On-Time Performance - CMBC (< 2 Minutes Late) 82.3% 81.7% 84.0% (2.3%) (2.7%) - Expo & Millennium Lines (headway + 3 minutes) 92.8% 96.1% 95.4% 0.7% 0.8% - West Coast Express (headway + 5 minutes) 98.1% 95.3% 97.7% (2.4%) (2.5%) - HandyDART (within 15 minutes of Scheduled Pick-Up Time) 91.3% 89.9% 90.0% (0.1%) (0.1%) Vehicle Reliability: Mean Distance Between Failure - CMBC 25,596 24,900 23,735 1, % - Expo & Millennium Lines 601, , ,228 (7,577.0) (1.6%) - West Coast Express 206, , ,998 27, % *Excludes HandyDART. Page 34

44 OPERATING INDICATORS (Continued) Nine months ended September Budget Variance ACTUAL ACTUAL BUDGET Fa v/ (Unfa v) % HandyDart Vehicle Productivity - Trips per service hour (excludes taxis) % - Trip Denials 16, , % Environmental - CMBC (Spills per 1 Million Km) % - CMBC (Revenue Vehicle Energy Consumption in Gigajoules) 1,363,713 1,368,675 1,383,952 15, % Customer Service: Customer Satisfaction (overall score of 10) - Overall System* (0.1) (1.3%) - CMBC % - Expo & Millennium Lines (0.4) (4.8%) - Canada Line % - West Coast Express (0.4) (4.7%) Customer Service: Customer Complaints - Overall System* ( per 1 million boarded passengers) (1.4) (1.5%) - CMBC (per 1 million boarded passengers) (0.3) (0.2%) - Expo & Millennium Lines (per 1 million boarded passengers) (4.9) (16.2%) - Canada Line (per 1 million boarded passengers) % - West Coast Express (per 1 million boarded passengers) (186.4) (107.9%) - HandyDART (operator complaints as a % of trips) 0.06% 0.03% 0.04% % - HandyDART (service complaints as a % of trips) 0.07% 0.07% 0.09% % Financial: Operating Costs - Overall System* (operating cost per capacity km) % - CMBC (operating cost per capacity km) % - Expo & Millennium Lines (operating cost per capacity km) % - Canada Line (operating cost per capacity km) % - West Coast Express (operating cost per capacity km) % - HandyDART (operating cost per trip) % Financial: Operating Cost Recovery - TransLink (conventional system) 54.9% 54.2% 53.0% 1.2% 2.3% *Excludes HandyDART. Page 35

45 To: From: Board of Directors Cathy McLay, Acting Chief Executive Officer and Chief Financial Officer Christine Dacre, Vice President, Finance & Corporate Services Date: December 15, 2015 Subject: 2016 Business Plan, Operating and Capital Budget PROPOSED RESOLUTION That the Board of Directors approves the 2016 Business Plan, Operating and Capital Budget attached to the report dated December 1, 2015 titled 2016 Business Plan, Operating and Capital Budget. PURPOSE The purpose of this report is to request the Board of Directors approve the 2016 Business Plan, Operating and Capital Budget. BACKGROUND The 2016 Budget and Business Plan were prepared with assumptions that were presented to the Board in September DISCUSSION Six main priorities for 2016 are: 1. Safety and security - TransLink will increase and coordinate efforts and resources in providing customers, employees and the public with a safe, secure public transportation system. 2. B.C. Rapid Transit Company (BCRTC) - TransLink s ability to deliver on safety and security includes the performance of BCRTC. This requires improved processes, increased management capacity and better employee engagement. As well, the need to focus on updating technology and managing the business. 3. Ridership - Strategies and initiatives will be developed to explicitly support increasing ridership and revenue. 4. Reputation and brand - TransLink s brand is affected by innumerable actions and events every day. How well we operate drives the public perception of what we do.

46 2016 Business Plan, Operating and Capital Budget December 15, 2015 Page 2 of 3 5. Customer service and experience - All parts of the organization must participate in order to improve customer service and experience by ensuring consistency and comprehensiveness. We need to look at all activities through a customer s lens Performance measurement culture - TransLink provides an essential public service and must manage the expectations of many stakeholders who expect us to meet their goals and expectations. We must continue to demonstrate outcomes delivered for the funding provided in a transparent way through regular reporting. Included in the 2016 operating budget is $5 million for initiatives to support the priorities listed above, mainly consisting of additional staffing and professional fees. In addition to working on these key priorities, TransLink will continue to work on developing the business cases to replace the aging Pattullo bridge, as well as the Surrey Light Rail project and the Arbutus SkyTrain extension to secure federal and provincial funding. Implementation of the Compass Card has been progressing through A number of onetime costs that were originally planned for 2015 but did not occur have now shifted to The Evergreen Extension is scheduled to open by the end of 2016 and activities will significantly increase during 2016 in preparation for integration into the existing Expo and Millennium Line SkyTrain operations. These activities have significant operating cost implications that drive a large percentage of the increase for 2016 which is included in one-time costs. The following table shows the one-time costs:

47 2016 Business Plan, Operating and Capital Budget December 15, 2015 Page 3 of 3 ($000's) 2015 Forecast 2016 Budget Variance % Year over Year On-going Expenditures 1,433,900 1,469,003 (35,103) -2.4% 2016 Priorities - 4,979 1,433,900 1,473,982 (40,082) -2.8% One-Time: Mobility Pricing Advisory services for Plebiscite 5,827 - SkyTrain Resiliency improvements 1,288 - Smartstream Implementation Evergreen Line - One time - 4,073 Compass - One time 10,480 7,815 Investment Plan Development Rapid Transit Studies 2,650 12,300 Pattullo Bridge Design Fees - 5,970 Contingency 3,753 11,270 24,494 42,625 1,458,394 1,516,607 (58,213) -4.0% The 2016 operating and capital budget is aggressive as TransLink is bringing to a close significant major projects while at the same time embarking on six new priorities to guide the organization going forward. Projects nearing completion in 2016 include Compass Card and Faregates, Evergreen Line extension and integration, and the opening of the New Hamilton Transit Centre. There is a risk of not receiving the Federal Gas Tax Funds in a timely manner, which could impact the timing of spending on projects that has an impact on the revenue recorded under Transfers from Government. Other risks include commodity pricing such as fuel and fluctuating foreign exchange rates. CONCLUSION Management recommends approval of the 2016 Business Plan, Operating and Capital Budget.

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49 TABLE OF CONTENTS 1. Executive Summary... 4 Key priorities for Budget: Investing in our system - making it even better for our customers Financial and Operating Summary... 8 Operating Indicators Key Drivers Assumptions and Sensitivity Analysis Consolidated Statement of Operations Analysis Consolidated Revenues Consolidated Expenses by Segment Consolidated Expenses by Category Investment in Capital Assets New Capital Program Active and Approval in Principle (AIP) Projects Underway Capital Infrastructure Contributions Changes in Financial Position Financial Assets Liabilities Non-Financial Assets Liquidity and Capital Resources Cash Flows and Liquidity Restricted Funds Debt Appendix I Consolidated Financial Statements Consolidated Statement of Financial Position Consolidated Statement of Operations Consolidated Statement of Changes in Net Financial Liabilities Consolidated Statement of Cash Flows Appendix II Funded Statement of Operations Appendix III Allocated Costs between Divisions Page 2

50 Caution Regarding Forward-Looking Statements From time to time, TransLink makes written and/or oral forward looking statements, including in this document, and in other communications, in addition, representatives of TransLink may make forwardlooking statements orally to analysts, investors, the media and others. Forward-looking statements, by their nature, require TransLink to make assumptions and are subject to inherent risk and uncertainties. In light of uncertainty related to financial, economic, and regulatory environments, such risks and uncertainties, many of which are beyond TransLink s control, and the effects of which can be difficult to predict, may cause actual results to differ materially from the expectations expressed in the forward-looking statements. Page 3

51 1. Executive Summary TransLink is a large, complex organization with a wide-ranging mandate. Of the world s major cities and regions, only Metro Vancouver, London and Paris integrate public transit and road planning under one central authority with its own streams of revenue. Close to one million people depend on our transit services every day. Our integrated transit system is composed of bus, SeaBus, HandyDART, three rapid transit lines (SkyTrain), and a commuter rail service. It s the largest transit service area in Canada, spanning 23 municipalities/electoral districts/first Nations areas in Metro Vancouver. One of the largest employers and revenue-generating organizations in British Columbia, TransLink manages approximately $8. 1 billion in assets to move people and goods across a region that plays a vital role in Canada as the Pacific Gateway to overseas markets. When the Evergreen Extension is completed, TransLink will operate the longest fully-automated rapid transit system (80 kms) in the world. TransLink s operating costs have remained relatively stable over the past several years, and expenditures have averaged below the rate of inflation over the past five years. As we prepare to meet the region s transportation needs of the future, we are moving forward in developing the business cases for major expansion projects, planning investments and incurring one-time costs over and above current operating costs, all to be funded from existing funding sources. Having these business cases prepared, TransLink and the region will be in a position to respond to these expansion opportunities when funding is secured. The region is expecting to welcome one million new residents over the next 30 years, and with no new sources of funding, we need to find innovative solutions to bring more service to more people with the same resources. Key priorities for 2016 Our priority is making the system even better for the customers who rely on us every day to get where they need to go. The 2016 Business Plan and Capital Budget identify the following six priorities that will guide the organization going forward. 1. Safety and Security Continually improve the current record of safe and secure operations. The safety and security of customers, staff and our assets remains our primary focus. In 2016, we will continue to implement the recommendations of the 2014 independent review of SkyTrain. We will undertake work to maintain the safety and security of the overall public transit system. Our focus will be on the running rail replacement Expo and Millennium lines; creating an asset management system for the enterprise; creating a safety management system for our buses; and preparing an enterprise-wide safety strategy including enhancing our Emergency, Disaster Recovery and Business Continuity Plan. Page 4

52 2. Improving Customer Service and Experience Continually improve customer satisfaction and employee engagement ratings. We run a safe, efficient, reliable, affordable transit system, and our customer satisfaction rating continues to hold steady at 7.6 out of 10. However, we ve heard from our customers that we can do better, and they expect us to improve service. We need to improve our efforts to listen to our customers, always asking for feedback and learning about things that matter to them. Then, we can act quickly and improve the customer experience. In 2016, we will consult with our customers in the development of the new Customer Experience Strategy that aims to improve the experience our customers have with TransLink. 3. Increasing Ridership Increase annual ridership at or above the annual rate of population growth. After a multi-year trend of increasing ridership, in 2013 ridership slightly decreased and then remained stable in We will undertake a comprehensive growth strategy, a mobility pricing plan, and a comprehensive fare policy review with the goal of growing transit ridership. In the meantime, we will continue to look for opportunities to reallocate the limited resources from routes with low customer demand to those with higher demand. Since 2010, TransLink has reallocated 392,000 bus revenue hours to bring more service to more customers through more than 300 service improvements across Metro Vancouver. More than 52,000 bus revenue hours were shifted in 2014 alone. The introductory of Compass improves the convenience of our fare products with online purchases and auto load features which makes it easier to use our system every day. 4. Modernizing BCRTC Achieve and maintain a State of Good Repair. The performance of our assets, including SkyTrain, affects our ability to deliver reliable service. Key areas of focus are: improving processes, minimizing outages, increasing management capacity, and improving employee engagement. Resiliency: Some of our SkyTrain systems, facilities and practices are 30 years old. As the organization has aged, the system has become more prone to failure, and in some cases, have reached end-of-life. Implementing a process to replace or maintain assets in a state of good repair will help ensure an effective response to service disruptions. Evergreen integration: We have developed a system and service integration plan to address customer impacts, including the adjustment of bus service that will be duplicated once the Evergreen Extension is in operation. We will also educate customers on how they can access and benefit from the Evergreen Extension. Page 5

53 5. Building a Performance Measurement Culture Demonstrate outcomes delivered for funding provided. We provide an essential public service and must manage the expectations of multiple stakeholders to whom we are accountable. We will focus on: measurable outcomes, aligning resources, defining Key Performance Indicators, and tracking our performance on a regular basis. 6. Building Public Trust and Confidence Build public trust and confidence in TransLink. A good reputation and strong brand helps to increase ridership; attract and retain top talent; and improve customer service, stakeholder engagement and communication with the public at large. Our efforts to build public trust and confidence will include: increasing stakeholder engagement and public consultation; continuous improvement towards being more open, transparent and accountable; improving the customer experience, including a program of helping customers transition to Compass; and public information to provide factual information about our performance Budget: Investing in our system - making it even better for our customers Over the past five years, TransLink has cut costs and eliminated waste through cost efficiencies by improving procurement practices, reducing operating and maintenance costs, and reducing overtime and labour costs. We ve also been innovative in increasing revenue through optimizing bus services and generating non-taxation revenue through Adjacent and Integrated Development projects, park and rides, and leasing agreements. All the while, no new funding was established to maintain existing service or focus on expansion. In 2016, TransLink will continue to invest in improving the system while sustaining these identified efficiencies. TransLink manages to a funding model required under the South Coast British Columbia Transportation Authority (SCBTA) Act. The 2016 budget results in a $33. 5 million funded deficit as a result of additional investment in making our system better for our customers and investing in studies and design work for new rapid transit projects and a Pattullo Bridge replacement. Funded revenues are budgeted to increase $9. 5 million from the 2015 forecast, mainly due to fuel tax, property tax and toll revenues, partially offset by no budgeted gain on disposal for Funded expenses are budgeted to increase $31. 2 million (2.3 per cent) in The increase is largely reflected by contractual labour increases ($13. 9 million), increased operating and maintenance costs for Roads and Bridges ($1. 6 million), increases within the Rail division ($2. 6 million), network related costs ($1. 3 million), and increases in contracted services ($9. 4 million), increases in one-time costs ($18 Page 6

54 million). These expenses are offset by the elimination of lease costs related to the purchase of West Coast Express rail cars ($13. 2 million) and lower diesel fuel costs ($1. 7 million). In addition to working on these key priorities and delivering on our core mandate of safe and reliable day-to-day transportation services, we will continue to work on several major transportation investments to secure federal and provincial funding. The investments include: Design work for replacing the Pattullo Bridge: We are moving forward with plans to rehabilitate the 78-year-old Pattullo Bridge to keep it functional and safe until a replacement bridge is built. We recognize the need for a new bridge within the next seven-to-ten years, but in the meantime, the revised rehabilitation program and repairs will keep the bridge operational until a replacement is complete. Business cases for the rapid transit projects: Rapid transit along King George Boulevard, 104th Avenue and Fraser Highway, and along Broadway in Vancouver, is a regional priority. We are collaborating with stakeholders to define the scope and costs of rapid transit in Surrey, Langley and Vancouver. The work we are doing now will help us develop a business case and sets the groundwork to secure senior government funding. Page 7

55 Financial and Operating Summary CONSOLIDATED REVENUES AND EXPENSES Twelve months ending December Change ($ thousands) ACTUAL Q2 FORECAST BUDGET Fav/(Unfav) % Revenue Taxation 744, , ,532 21, % Transit 495, , ,272 (1,120) (0.2%) Transfers from Government 90,291 99, , , % Golden Ears Bridge tolls 41,623 48,633 50,641 2, % Interest Income 34,739 33,114 36,172 3, % Amortization of Deferred Concessionaire Credit 23,273 23,337 23, Miscellaneous 5,576 4,631 3,537 (1,094) (23.6%) Sub Total Continuing Operations 1,435,268 1,481,637 1,688, , % Emissions Testing 12, Gain on Disposal 6,437 9,448 - (9,448) (100.0%) Total Revenue (PSAB) 1,453,752 1,491,085 1,688, , % Revenue Funding Adjustments (135,322) (131,135) (319,256) (188,121) (143.5%) Total Funded Revenue 1,318,430 1,359,950 1,369,420 9, % Expenditures Bus Division 633, , ,865 (6,264) (1.0%) Corporate operations 67,110 78,940 87,674 (8,734) (11.1%) Rail Division 255, , ,091 4, % Roads & Bridges 83,627 68,707 82,782 (14,075) (20.5%) Transit Police 34,334 33,187 33,847 (660) (2.0%) Amortization of Capital Assets* 161, , ,520 (12,797) (7.6%) Interest* 171, , ,203 (1,748) (1.1%) Sub Total Continuing Operations 1,406,430 1,433,900 1,473,982 (40,082) (2.8%) AirCare 15, Corporate - onetime 4,642 24,494 42,625 (18,131) (74.0%) Total Expenditures (PSAB) 1,426,878 1,458,394 1,516,607 (58,213) (4.0%) Expenditure Funding Adjustments (130,956) (86,661) (113,677) 27, % Total Funded Expenditures 1,295,922 1,371,733 1,402,930 (31,197) (2.3%) Surplus for the period (PSAB) 26,874 32, , , % Net Surplus (Deficit) for Funding Purposes 22,508 (11,783) (33,510) (21,727) (184.4%) Cumulative Funded Surplus Opening Balance 342, , ,425 (11,783) (3.2%) Cumulative Funded Surplus Ending Balance 365, , ,915 (33,510) (9.5%) * shown as a separate line to help facilitate analysis of debt service costs, as GAAP statements allocate these amounts to the various segments Funded revenues are budgeted to be $9. 5 million higher than 2015 second quarter forecast, mainly due to fuel tax, property tax and toll revenues, partially offset by no budgeted gain on disposal of assets in Funded expenditures are budgeted to be $31. 2 million higher in The increase is largely reflected by contractual labour increases ($13. 9 million), increased operating and maintenance costs for Roads and Bridges ($1. 6 million), increases within the Rail division ($2. 6 million), network related costs ($1. 3 million), and increases in contracted services ($9. 4 million), increases in one-time costs ($18 million). Page 8

56 These expenses are offset by the elimination of lease costs related to the purchase of West Coast Express rail cars ($13. 2 million) and lower diesel fuel costs ($1. 7 million). One-time costs for 2016 include Rapid Transit studies, completion of Compass implementation, Evergreen Extension integration, Pattullo Bridge replacement studies, mobility pricing and contingency provision. FINANCIAL INDICATORS as at December Change ($ thousands) ACTUAL Q2 FORECAST BUDGET Fa v/(unfa v) % Cumulative Funded Surplus 1 365, , ,915 (33,510) (9.5%) Gross interest cost as a % of operating revenue % 12.4% 12.3% 0.1% 0.5% Capital Assets 4,511,992 4,610,533 4,864, , % Net debt 3 (1,933,022) (1,955,534) (2,098,388) (142,854) (7.3%) Deferred concessionaire credits and GEB contractor liability 4 (1,647,044) (1,623,245) (1,598,016) 25, % Total net debt 5 (3,580,066) (3,578,779) (3,696,404) (117,625) (3.3%) 1 The funded surplus as calculated under the SCBCTA Act represents the amount of resources available to fund future operations. 2 Ratio of 12 month results. Operating revenue includes fares, taxation, GEB toll revenue, operating transfers from Provincial government and miscellaneous income. 3 Includes bonds, debentures, capital leases, short-term debt net of sinking funds and debt reserve deposits 4 Includes deferred concessionaire credits and GEB contractor liability. 5 Net debt + deferred concessionaire credits and GEB contractor liability. In 2016, the Cumulative Funded Surplus is budgeted to decrease $33. 5 million to $ million compared to the 2015 second quarter forecast. This is within TransLink s reserve policy of a minimum Funded Cumulative Surplus of 12 per cent of total expenditures. The gross interest cost as a percentage of operating revenues improves to per cent in 2016 (12.4 per cent in 2015) on higher revenues. Planned capital spending during 2016 will result in a net increase of $ million (5.5 per cent) in capital assets. Significant projects are Evergreen integration, Compass and the Hamilton Transit Centre. Net debt increases by $ million (7.3 per cent) in 2016 to $2. 1 billion due to increased long-term borrowing to finance capital assets, still well within TransLink s debt cap. Deferred concessionaire credits relating to Canada Line decreases by $23. 3 million and the Golden Ears Bridge (GEB) contractor liability decreases by $1. 9 million. Page 9

57 Operating Indicators OPERATING INDICATORS Twelve months ending December Change ACTUAL Q2 FORECAST BUDGET Fa v/(unfa v) % Scheduled Transit Service Overall Performance Rating (out of 10) % Service Hours 6,256,766 6,284,322 6,360,633 76, % Cost Recovery Ratio 53.4% 53.0% 51.0% (2.0%) (3.8%) Operating Cost per Capacity Km * $0.082 $0.084 $0.085 ($0.001) 1.2% Complaints per million Boarded Passengers (0.3%) Access Transit Service Number of Trips 1,168,861 1,193,268 1,202,000 8, % Operating Cost per Trip $40.30 $40.44 $40.52 ($0.08) 0.2% Number of Trips Denied 16,869 1,504 1,500 4 (0.3%) Operator complaints as a percentage of trips ** n/a 0.03% 0.05% (0.02%) 66.7% Service complaints as a percentage of trips ** n/a 0.08% 0.09% (0.01%) 12.5% Golden Ears Bridge Crossings (millions) % Average Toll per Crossing $3.56 $3.85 $3.97 $ % Ridership (thousands) Boarded passengers 356, , ,660 3, % Revenue passengers 234, , ,942 4, % Average fare per revenue passenger $ (0.04) (1.9%) * includes Bus, Rail, and Police Operating Costs ** new measures for 2015, not available in 2014 Conventional System Service hours provided will increase by 76,311 (1. 2 per cent) in 2016 compared to the 2015 forecast due to 2016 being a leap year, which adds one day of service, and the annualization of service added in late Cost recovery in 2016 is expected to be slightly lower than the 2015 forecast due to slightly lower transit revenues, due to the migration to Compass and discounted fares being more readily available, coupled with increased operating costs. Operating cost per capacity kilometre is expected to increase 1. 2 per cent over the 2015 forecast. Complaints per million boarded passengers for 2016 are targeted to be slightly lower than the 2015 forecast. Access Transit An additional 8,732 trips are projected in 2016 compared to 2015 an increase of 0. 7 per cent largely due to an increase in the use of taxis and efforts to improve HandyDART service productivity. Operating costs per Access Transit trip is budgeted to slightly increase by $0. 08 per trip (0. 2 per cent). The 2016 number of trips denied is expected to remain at current levels. Page 10

58 Golden Ears Bridge Crossings for the Golden Ears Bridge (GEB) are expected to increase in 2016 by approximately 100,000 (0. 8 per cent). The average toll per crossing includes an annual inflationary rate increase as well as an increase from additional unregistered vehicle crossings. Transit Ridership Revenue passengers are expected to grow by 4 million (1. 7 per cent) in 2016 compared to the 2015 forecast as a result of population growth, network productivity, demographic changes and the introduction of Compass. The average fare per revenue passenger is expected to decrease from the 2015 forecast by approximately 1. 9 per cent from $2.10 to $ The reason for this decline is the expectation that customers will utilize more discounted products. There have been no cash and fare product rate increases since 2013, with the exception of a contractual increase for U-Pass BC. Page 11

59 Key Drivers The following table highlights the primary drivers of change between the 2016 budget and the 2015 forecast: Key Drivers Change ($ millions) ACTUAL Q2 FORECAST BUDGET Fav/(Unfav) Drivers Revenues Transit (1.1) Golden Ears Bridge Tolls Taxation Transfers from Government growth in ridership of 1.7 per cent average fare per revenue passenger decreased by 1.9% growth in crossings of 0.8 per cent increase in the average toll rate in 2016 from 2015 forecast is 3.1 per cent inflationary rate increase in July 2016 property tax revenue increase of 3 per cent fuel tax revenues higher based on 2015 consumption trends to continue into 2016 parking rights tax increase by 2.7 per cent new funding agreement requiring revenue to be recognized when eligible costs are incurred varies with timing of capital projects Interest Income higher sinking fund balances Emissions Testing AirCare program eliminated at end of 2014 Gain on Disposal (9.4) no gains on disposal expected in 2016 Expenditures before debt service costs AirCare AirCare program for testing of light cars and trucks eliminated at end of 2014 Roads & Bridges (14.1) timing of capital projects undertaken by municipalities labour - contractual increases fuel and insurance - price and rate increases costs related to opening Hamilton Transit Centre in Transit (Bus & Rail Sept/ (2.1) Division) WCE rail stock lease costs end in March/16 materials and contract services - inflation increased staff and maintenance to improve reliability and resiliency of SkyTrain Transit Police (0.6) labour - contractual increases Corporate operations (8.7) Corporate onetime (18.1) Debt service costs Amortization (12.8) Interest (1.7) Compass card implementation increased feasibility studies contingency provision of one percent of operating expenditures Evergreen integration Rapid Transit Studies Pattullo Bridge replacement studies Mobility pricing several projects reaching completion during 2016 and being capitalized to fixed assets lower rates from refinancing activity higher outstanding gross debt to fund capital spending Page 12

60 Assumptions and Sensitivity Analysis The following table highlights the financial impact of changes in key assumptions used to develop the 2016 budget: ASSUMPTIONS SENSITIVITIES RATE / Impact VOLUME Change ($ millions) Revenue Regional Fuel Consumption millions of litres 2,120 1 per cent +/- 3.6 Ridership millions of revenue passengers per cent +/- 4.9 Golden Ears Bridge Crossings millions of crossings per cent +/- 0.5 Expense Diesel cost dollars per litre 1.17 $0.10 +/- 4.4 Operational Diesel Use millions of litres per cent +/- 0.5 Interest rate Short term 1.6% 0.5 per cent +/ Long term 4.0% 0.5 per cent +/- 0.8 Inflation General 0.0% 0.5 per cent +/- 0.3 Materials 1.9% 0.5 per cent +/- 0.3 Electricity 4.0% 0.5 per cent +/- 0.1 Collective Agreements Unifor 0.0% 1 per cent COPE 0.0% 1 per cent CUPE 0.0% 1 per cent TPPA 0.0% 1 per cent Page 13

61 3. Consolidated Statement of Operations Analysis Consolidated Revenues 2016 Budget and 2015/2014 Comparatives CONSOLIDATED REVENUES Twelve months ending December Change ($ thousands) ACTUAL Q2 FORECAST BUDGET Fa v/(unfa v) % Taxation 744, , ,532 21, % Transit 495, , ,272 (1,120) (0.2%) Transfers from Government 90,291 99, , , % Golden Ears Bridge tolls 41,623 48,633 50,641 2, % Interest Income 34,739 33,114 36,172 3, % Amortization of Deferred Concessionaire Credit 23,273 23,337 23, % Miscellaneous 5,576 4,631 3,537 (1,094) (23.6%) Revenue Before Gain/(Loss) on Disposals 1,435,268 1,481,637 1,688, , % Emissions Testing 12, % Gain on Disposal 6,437 9,448 - (9,448) (100.0%) Total Revenue (PSAB) 1,453,752 1,491,085 1,688, , % Funding Adjustments Remove effect of Aircare (12,047) % Transfers from Government (70,259) (78,680) (262,959) (184,279) (234.2%) Interest Income (29,743) (29,118) (32,960) (3,842) (13.2%) Amortization of Deferred Concessionaire Credit (23,273) (23,337) (23,337) - 0.0% Total Funding Adjustments (135,322) (131,135) (319,256) (188,121) (143.5%) Total Funded Revenue 1,318,430 1,359,950 1,369,420 9, % Overview TransLink receives its revenue mainly through taxation, user fees and government transfers. Total consolidated revenues for 2016 are expected to be $1. 4 billion on a funded basis, an increase of $9. 5 million over the 2015 forecast. This increase is mainly due to fuel tax, property tax, and toll revenues, partially offset by no budgeted gain on disposal of assets in Taxation TAXATION REVENUES Twelve months ending December Change ($ thousands) ACTUAL Q2 FORECAST BUDGET Fa v/(unfa v) % Fuel 340, , ,388 10, % Property & Replacement 324, , ,517 9, % Parking Rights 59,971 60,978 62,651 1, % Hydro Levy 19,572 20,074 19,976 (98) (0.5%) Total Taxation 744, , ,532 21, % Page 14

62 Taxation Revenues account for 57 per cent of the Total Funded Revenue, with the majority coming from fuel and property taxation. Fuel tax revenues for 2016 are estimated to increase $10. 4 million (3. 0 per cent) to $ million, building on the strong consumption trend realized in Consistent with information from third-party retail sources, increases in vehicle purchases and Vehicle Kilometres Travelled (VKT), as well as the current fuel price at retailers are expected to support the higher sales volumes into Property tax revenues include an allowable three per cent increase in property tax revenue as permitted in the South Coast British Columbia Transportation Authority (SCBCTA) Act. The property replacement tax component remains at $18 million. Parking Rights taxation revenue for 2016 is budgeted to increase $1. 7 million over the 2015 forecast, reflecting increased Vehicle Kilometres Travelled (VKT) within the Metro Vancouver region. Hydro Levy remains relatively constant year-over-year. Risks and Challenges Total fuel tax volumes are unpredictable, as suppliers have up to 48 months to recover tax paid on exempt volumes or fuel resold outside the transit region. Market change in the price of crude oil, the USD/CAD exchange rate and the cost of transportation can also impact the amount of Fuel Tax collected and remitted to TransLink. Transit TRANSIT REVENUES Twelve months ending December Change ($ thousands) ACTUAL Q2 FORECAST BUDGET Fa v/(unfa v) % Fares 378, , ,864 (3,801) (1.0%) Programs 100, , ,406 2, % Total Fare Revenue 479, , ,270 (982) (0.2%) Other 16,567 18,140 18,002 (138) (0.8%) Total Transit 495, , ,272 (1,120) (0.2%) Transit Revenue makes up 37 per cent of Total Funded Revenue. Fare revenue consists of cash fares, discounted Stored Value purchases, as well as Day and Monthly Pass products. Program revenue includes Government of BC Bus Pass and U-Pass BC revenue. Other transit revenue includes advertising, rental, parking lot fees, fare infraction and retail. Total transit revenue is expected to decrease by $1. 1 million (0.2 per cent) from the 2015 forecast. The decrease is due to an expected increase in utilization of discounted products, slightly offset by expected increases in ridership, contracted U-Pass BC student rate increases and additional revenue from reduced fare evasion. Other Transit Revenue is expected to remain relatively constant. Page 15

63 Risks and Challenges Transit fare revenue risks include achieving ridership targets and customer behaviour for purchase of various fare products. Transfers from Government Transfers from government include funds received from Federal Gas Tax, Canada Line Funding, Build Canada Fund, Public Transit Fund, and other miscellaneous programs. The total revenue from these funds is expected to increase $ million (183.9 per cent). This increase is mainly due to a required change in accounting treatment related to a new agreement with the Union of British Columbia Municipalities (UBCM) for Federal Gas Tax Funds signed in August Generally accepted accounting principles for Public Sector require that the funds received must now be recorded as revenue at the time the funds are spent. Previously, the contract required the assets to be held for at least ten years and the funds received were then recorded as revenue over that ten year period. Golden Ears Bridge Tolls TransLink receives tolling revenue from vehicles crossing the Golden Ears Bridge (GEB). Tolling revenues for 2016 are budgeted to increase $2 million (4. 1 per cent) over the 2015 forecast due to a general inflation rate increase of 1. 9 per cent effective July 2016 and a slight increase in the number of vehicle crossings (0. 8 per cent) which is conservative yet consistent with the overall increase in the Vehicle Kilometres Traveled (VKT) within the Metro Vancouver region. Interest Income The higher interest income is mostly due to higher sinking fund balances. Miscellaneous Income Miscellaneous income is lower as a result of anticipated reduced activity related to Adjacent and Integrated Development (AID) projects. Funding Adjustments Funding adjustments are the changes required to the income statement to calculate the cumulative funded surplus under the South Coast British Columbia Transportation Authority (SCBCTA) Act. The cumulative funded surplus is defined as the amount of resources available to fund future operations. The funding adjustments for revenue reflect: all senior government contributions for capital assets and the amortization associated with those assets, interest income from sinking fund balances, and amortization of Deferred Concessionaire Credit. Page 16

64 Consolidated Expenses by Segment 2016 Budget and 2015/2014 Comparatives CONSOLIDATED EXPENSES BY SEGMENT Twelve months ending December Change ($ thousands) ACTUAL Q2 FORECAST BUDGET Fa v/(unfa v) % Bus Division 633, , ,865 (6,264) (1.0%) Corporate 67,110 78,940 87,674 (8,734) (11.1%) Rail Division 255, , ,091 4, % Roads & Bridges 83,627 68,707 82,782 (14,075) (20.5%) Transit Police 34,334 33,187 33,847 (660) (2.0%) Amortization of Capital Assets* 161, , ,520 (12,797) (7.6%) Interest* 171, , ,203 (1,748) (1.1%) Sub Total Continuing Operations 1,406,430 1,433,900 1,473,982 (40,082) (2.8%) AirCare 15, % Corporate - onetime 4,642 24,494 42,625 (18,131) (74.0%) Total Expenses by Segment (PSAB) 1,426,878 1,458,394 1,516,607 (58,213) (4.0%) Funding Adjustments Remove effect of Aircare (15,806) % Capital Funding to Municipalities (43,953) (26,072) (38,556) 12, % Corporate Other (929) (78) - (78) (100.0%) Depreciation (153,649) (155,696) (172,499) 16, % Debt service costs 83,381 95,185 97,378 (2,193) (2.3%) Total Funding Adjustments (130,956) (86,661) (113,677) 27, % Total Funded Expenses 1,295,922 1,371,733 1,402,930 (31,197) (2.3%) * shown as a separate line to help facilitate analysis of debt service costs, as GAAP statements allocate these amounts to the various segments Overview TransLink is responsible for delivering transit services, owns and operates five bridges, and provides operating and capital funding for the Major Road Network (MRN) and cycling in Metro Vancouver. Total funded expenditures for 2016 are budgeted at $1. 4 billion, an increase of $31. 2 million (2.3 per cent), over the 2015 forecast. Bus Division The Bus division s budget is $ million, up $6. 3 million (1. 0 per cent) from the 2015 forecast resulting from contractual labour and employee benefit increases ($2. 8 million), additional labour costs related to the opening of the new Hamilton Transit Centre in September and an extra working day for the leap year in 2016 ($1. 5 million), additional administration, computers systems and licence costs ($1. 9 million) higher fare media costs ($559 thousand), and contractual increase in contracted services ($1. 1 million) offset by savings from Compressed Natural Gas (CNG) replacement vehicles at the new Hamilton Transit Centre ($700 thousand) in Corporate Operations Corporate Operations costs are budgeted to increase $8. 7 million (11. 1 per cent) from the 2015 forecast mainly due to a full year of Compass Operations ($5 million) and feasibility studies related to upgrades and modernization of existing systems ($2. 4 million). Excluding these items, Corporate Operations are budgeted to increase $1. 3 million (1.7 per cent). Page 17

65 Rail Division Rail Division 2016 operating budget of $ million is $4. 2 million (1.6 per cent) lower than the 2015 forecast. The decrease is largely due to lower lease payments due to the purchase of West Coast Express rail cars ($13. 2 million) and a reduction in Ticket Vending Machine (TVM) costs ($1. 7 million) associated with the implementation of fare gates offset by: annualization of compensation ($2. 6 million), benefit rate increases ($500 thousand), the introduction of both additional SkyTrain Attendants ($1. 3 million) and the maintenance response team ($600 thousand), inflationary increase in Canada Line performance payments ($1. 8 million), hydro rate increases and tools and training to support staff ($600 thousand), increased fare media ($439 thousand), as well as additional operating costs to invest in state of good repair ($2. 2 million). Roads and Bridges Total expenditures for Roads and Bridges in 2016 are expected to be $14. 1 million (20.5 per cent) higher than the 2015 forecast. The increase is almost entirely attributable to timing of the capital infrastructure contributions to municipalities for the Major Road Network (MRN). Municipalities have a four-year period to use the funds. Annual funding allocated to municipalities for rehabilitation of the Major Road Network (MRN) remains unchanged; however, the timing of expenditures varies from year to year. There is also an increase of $1 million in payments to the tolling contractor for Golden Ears Bridge (GEB) due to a volume increase in crossings. Transit Police Transit Police budget is expected to increase $660 thousand (2 per cent) over the 2015 forecast. The increase is largely due to labour contractual increases. Amortization and Interest Interest expense is budgeted to be up $1. 7 million (1. 1 per cent) from the 2015 forecast, due to higher outstanding gross debt to fund capital projects, partly offset by lower rates from refinancing activity. Amortization is budgeted to be $12. 8 million (7. 6 per cent) higher than the 2015 forecast as a result of several projects reaching completion, and therefore being capitalized to fixed assets, including Evergreen Extension, Hamilton Transit Centre, Compass Card and Fare Gate project, and Expo Line Power Propulsion upgrades. AirCare In accordance with the Provincial government s May 2012 announcement, the AirCare program for testing of cars and light trucks was eliminated at the end of Corporate One Time One-time costs in the 2016 budget are $42. 6 million, consisting of Rapid Transit Studies ($12. 3 million), Evergreen Extension start-up costs ($4. 1 million), Pattullo Bridge replacement studies ($6 million), Compass and Fare Gate project start-up costs ($7. 8 million), mobility pricing ($0. 9 million) and contingency provision per TransLink s policy ($11. 3 million). Page 18

66 Risks and Challenges The launch of Compass during 2015 and its full rollout by the end of the first quarter of 2016 is a significant milestone and has its own risks and operational challenges, including system and network reliability and customers adaptability to the new fare system. Completion of the Hamilton Transit Centre in September 2016, Evergreen Extension projects and major initiatives will consume employee and financial resources and have a significant impact on TransLink s operations beyond the 2016 calendar year. Consolidated Expenses by Category 2016 Budget and 2015/2014 Comparatives by expense category CONSOLIDATED EXPENSES BY CATEGORY Twelve months ending December Change ($ thousands) ACTUAL Q2 FORECAST BUDGET Fa v/(unfa v) % Administration 27,761 33,916 35,489 (1,573) (4.6%) Amortization of Capital Assets 161, , ,520 (12,797) (7.6%) Capital Infrastructure contributions 43,953 26,072 38,556 (12,484) (47.9%) Contracted Services 197, , ,409 (9,418) (4.6%) Fuel and Power 70,216 67,696 66,043 1, % Insurance 18,724 19,418 19, % Interest 171, , ,203 (1,748) (1.1%) Maintenance, Materials and Utilities 113, , ,218 (2,616) (2.2%) Professional and Legal 12,027 19,332 18, % Rentals, Leases and Property Tax 40,006 40,911 28,975 11, % Salaries, Wages and Benefits 550, , ,645 (13,861) (2.4%) Sub Total Continuing Operations 1,406,430 1,433,900 1,473,982 (40,082) (2.8%) AirCare 15, % Corporate - onetime 4,642 24,494 42,625 (18,131) (74.0%) Total Expenses by Category (PSAB) 1,426,878 1,458,394 1,516,607 (58,213) (4.0%) Funding Adjustments Remove effect of Aircare (15,806) % Capital Funding to Municipalities (43,953) (26,072) (38,556) 12, % Corporate Other (929) (78) - (78) (100.0%) Depreciation (153,649) (155,696) (172,499) 16, % Debt service costs 83,381 95,185 97,378 (2,193) (2.3%) Total Funding Adjustments (130,956) (86,661) (113,677) 27, % Total Funded Expenses 1,295,922 1,371,733 1,402,930 (31,197) (2.3%) Administration Administration costs are budgeted to be $1. 6 million higher than the 2015 forecast. The increase reflects $800 thousand for fare media and $1. 3 million for increases mainly in computer systems and new software and licences, increases in training for the Rail Division of $972 thousand, partially offset by lower credit card fees and Compass marketing costs. Page 19

67 Amortization of Capital Assets Amortization is budgeted to be $12. 8 million (7. 6 per cent) higher than the 2015 forecast as a result of several projects reaching completion in 2015, and therefore being capitalized to fixed assets, specifically Evergreen Extension, Hamilton Transit Centre, Compass and Fare Gates project, and Expo Line Power Propulsion upgrades. Capital Infrastructure Contributions Capital infrastructure contributions to Municipalities are budgeted to be $12. 5 million (47.9 per cent) higher in The increase in spending is directly attributable to municipal capital spending projects. The timing of expenditures varies from year to year as municipalities have a four-year window to use the funds. Contracted Services Spending on contracted services in 2016 is budgeted to be $9. 4 million (4.6 per cent) more than The main increase is a combination of $5 million related to the Compass Card program and $1. 8 million related to the inflation rate applied to the Canada Line performance payments, and additional costs paid to Canada Line for Compass ($350 thousand). Bus Division contracted services is budgeted to be $1. 2 million (4.6 per cent) more than 2015, mainly due to taxi supplement and contract operator labour. Fuel and Power Fuel costs are budgeted to decrease $1. 7 million (2.4 per cent) in 2016 from the 2015 forecast due to diesel prices and savings from Compressed Natural Gas (CNG) replacement vehicles. Interest Interest expense is budgeted to be higher by $1. 7 million (1. 1 per cent) from the 2015 forecast due to higher outstanding gross debt to fund capital projects, partly offset by lower rates from refinancing activity. Maintenance, Materials and Utilities Maintenance, materials and utilities are budgeted to be up $2. 6 million (2.2 per cent) from the 2015 forecast. This is mainly due to Roads and Bridges operating and maintenance spending ($1. 6 million). Rail Division increases are a result of additional tools to support staff ($443 thousand) and additional state of good repair costs ($1. 2 million), partially offset by the elimination of Ticket Vending Machine (TVM) maintenance costs ($1. 7 million). Professional and Legal Professional and legal fees are budgeted to decrease $669 thousand (3. 5 per cent) from the 2015 forecast. This is largely due to a reduction in Roads and Bridges studies ($1. 5 million) and activities within the Rail and Bus Divisions ($1. 4 million), offset by increased feasibility studies ($2. 3 million) related to future capital projects. Rentals, Leases and Property Tax Rentals, leases and property tax costs are budgeted to decrease by $11. 9 million (29. 2 per cent) compared to the 2015 forecast mainly due to the operating lease buyout of 28 West Coast Express rail cars. This decrease was partially offset by expected increases in property taxes. Page 20

68 Salaries, Wages and Benefits Salaries, wages and benefits are budgeted to increase $13. 9 million (2.4 per cent) from the 2015 forecast. The increase is due to contractual labour and employee benefits, additional costs related to the opening of the Hamilton Transit Centre in September, an extra working day as 2016 is a leap year, annualization of staff increases in 2015 from implementing recommendations in the independent review of SkyTrain, and planned initiatives in 2016 to further invest in ensuring safety and security and keeping our system in a state of good repair. There are no economic salary increases for exempt employees. AirCare The AirCare program was eliminated at the end of Funding Adjustments Funding adjustments are the changes required to the income statement to calculate the cumulative funded surplus under the South Coast British Columbia Transportation Authority (SCBCTA) Act. The cumulative funded surplus is defined as the amount of resources available to fund future operations. The funding adjustments for expenses reflect the inclusion of the interest expense and principal repayments for the Golden Ears Bridge (GEB), in accordance with the Public-Private Partnership agreement with the contractor. In addition, an adjustment is required to remove capital funding to municipalities since these payments are a flow-through cost related to assets of which TransLink does not have ownership. Page 21

69 4. Investment in Capital Assets Summary of Capital, by Program 2016 Capital Cash Flow Total Project Budget ($ thousands) Gross Cost Less: Funding * Net Cost Gross Cost Less: Funding * 2016 New Capital Program Equipment 2,438 (1,291) 1,147 21,580 (11,124) 10,456 Facilities Infrastructure 40,277 (3,942) 36,335 91,988 (9,175) 82,813 Technology 5, ,642 8, ,085 Vehicles - Revenue 14 (26) (11) 102,400 (83,500) 18,900 Vehicles - Non Revenue 1, ,670 2, ,486 Major Construction Subtotal 50,140 (5,259) 44, ,639 (103,799) 122,840 Net Cost Active/Approved in Principle (AIP) Capital Programs Equipment 8,696 (1,465) 7,231 22,380 (4,500) 17,880 Facilities 64,386 (39,349) 25, ,205 (91,087) 99,118 Infrastructure 156,092 (78,177) 77, ,810 (262,185) 520,625 Technology 11, ,742 41, ,475 Vehicles - Revenue 151,751 (130,629) 21, ,586 (519,285) 218,301 Vehicles - Non Revenue 1, ,613 4, ,393 Major Construction 46, , ,467 (265) 407,202 Subtotal 441,145 (249,620) 191,525 2,186,316 (877,322) 1,308,994 Total Capital Equipment 11,134 (2,756) 8,378 43,960 (15,624) 28,336 Facilities 64,486 (39,349) 25, ,305 (91,087) 99,218 Infrastructure 196,369 (82,119) 114, ,798 (271,360) 603,438 Technology 17, ,384 49, ,560 Vehicles - Revenue 151,766 (130,655) 21, ,986 (602,785) 237,201 Vehicles - Non Revenue 3, ,283 6, ,879 Major Construction 46, , ,467 (265) 407,202 Capital Program Total 491,285 (254,879) 236,406 2,412,955 (981,121) 1,431,834 Capital Infrastructure Contributions 2016 New Program 14, ,234 23, ,784 Active and Approved in Principle 24, , , ,317 Total Capital Infrastructure Contributions 38, , , ,101 ALL PROJECTS 529,841 (254,879) 274,962 2,644,056 (981,121) 1,662,935 * The funding sources include Federal Gas Tax, Build Canada Fund, Public Transit Fund Overview TransLink s current mandate is to maintain existing service levels and ensure assets are in a state of good repair. TransLink s capital program ensures assets provide the most efficient and effective infrastructure required to serve its customers and stakeholders. Capital projects are planned through an integrated enterprise system where bus, rail and corporate initiatives are evaluated against long-term goals and corporate strategies. The table above highlights capital projects grouped into asset categories and includes capital infrastructure contributions for which TransLink is authorized and mandated to address regional Major Road Network (MRN) needs. The budget for the 2016 new capital program is $ million. The Page 22

70 projected 2016 cash flow for all projects is $ million, which is made up of $50. 1 million for the 2016 New Capital Program, $ million for existing capital programs and $38. 6 million for Capital Infrastructure Contributions. The net cash impact to 2016 after senior government funding is $ million. Funding projections include $17. 3 million from Year-10 Gas Tax funding, which has not yet been approved, for 2015 and 2016 HandyDART and Community Shuttle purchases. If the funding is not approved, projects will be delayed and result in higher maintenance costs on existing fleet or the need to divert capital funding from other projects to replace the vehicles is required New Capital Program The 2016 New Capital Program is focused on maintaining existing service levels and keeping the system in a state of good repair with some minor upgrades. This focus remains unchanged until a new, sustainable funding source is identified. TransLink s 2016 capital budget is $ million. Anticipated senior government contributions total $ million. The net capital spending for this program is forecast to be $ million, including $29. 4 million to improve resiliency on the SkyTrain following the recommendations of the 2014 independent review. Unallocated Funds for Capital Projects Within the 2016 New Capital Program are funds for projects that require additional development to properly define the associated budget, scope, schedule and any risks before going forward as Approved in Principle. These projects are categorized as either general infrastructure-related projects ($28. 5 million) or projects related to the independent review of SkyTrain ($29. 4 million). The following table provides summary information on projects with a project budget greater than two million for each category. Page 23

71 2016 New Capital Program Projects (based on total project budget) 2016 Capital Cash Flow Total Project Budget (in $ 000) Project Name Description Gross Less TransLink Gross Less TransLink Equipment ATC Existing Equipment Replacement - Phase 3 Replace ATC equipment to improve system reliability and maintain state of good repair Cost Funding Net Cost Cost Funding Net Cost 1,422 (1,291) ,400 (11,124) 1,276 Golden Ears Bridge Tolling Equipment Replacement Rotary Grinder 1 Replace roadside technology and back office systems due to obscelence and end of service life Replace Rotary Grinder 1 that has reached end of service life , , , ,750 Other One (1) other project in this asset category Facilities Other One (1) other project in this asset category Infrastructure Surrey Central SkyTrain Station Upgrades Upgrade SkyTrain station facilities to increase capacity 6,037 (3,447) 2,590 17,550 (8,675) 8,875 Phase III Expo Line Rail Pad Replacement Expo Line Station Escalators - Stage 2 Expo Line Phase 1 Running Rail 2017 Replace rail pads that have reached the end of service life Replace Expo Line station escalators identified as Stage 2 that have reached end of service life Replace running rail that have reached the end of service life 1, ,128 4, , , , , , Unallocated Funds for Projects Budget envelope to fund project requests 14, ,260 28, , Unallocated Funds for McNeil Program Budget envelope to fund McNeil identified projects 14, ,700 29, ,400 Other Five (5) other projects in this asset category 3,655 (495) 3,160 4,477 (500) 3,977 Technology Applications IT Infrastructure Program 2016 Ongoing computer systems and infrastructure lease renewals and replacement 3, ,838 5, ,000 Other Four (4) projects in this asset category 1, ,804 3, ,085 Vehicles Conventional Revenue 2017 Conventional Bus Replacement Replace 52 articulated buses and 54 standard buses reaching end of useful service life in fall HandyDART Vehicle Replacement Replace 35 HandyDART buses expected to reach end of useful lives by Community Shuttle Replacement Replace 20 Community Shuttles that reached end of useful service life in fall ,700 (75,000) 17, (26) (12) 5,600 (5,000) ,100 (3,500) 600 Vehicles Non-Revenue Other Six (6) projects in this asset category 1, ,670 2, ,486 Total Capital Program 50,140 (5,259) 44, ,639 (103,799) 122,840 Page 24

72 Active and Approval in Principle (AIP) Projects Underway Capital projects already approved and underway have a total budget of $2. 2 billion. Anticipated senior government contributions total $ million, leaving the net cost forecast to be $1. 3 billion. Spending in 2016 on these projects is forecast at $ million with senior government funding of $ million for net spending of $ million. Nine projects comprise two-thirds of the spending in 2016: conventional bus replacements and buyout of West Coast Express (WCE) leased rail cars ($125 million); three station upgrades ($70 million), Hamilton Transit Centre ($53 million), Evergreen Extension ($42 million), and the Compass Card and Fare Gate project ($27 million). The table below highlights specific projects with 2016 project cash flows greater than one million in Active / Approved in Principle (AIP) Capital Projects (based on remaining gross cashflows in ) ($ thousands) Project Name Description Gross Cost Equipment Expo Line SCADA RTU Replacement Replacement of sixteen (16) Supervisory Control and Data Acquisition (SCADA) Remote Terminal Units (RTU) at the Expo Line Propulsion Power Substations (PPS) including supply and installation of associated marshalling panels, cables/wires and communications equipment Capital Cash Flow Total Project Budget Less Funding TransLink Net Cost Gross Cost Less Funding TransLink Net Cost 2, ,433 3, ,400 ATC Existing Equipment Replacement - Phase 2 AARU Controller Replacement Access Transit - Replace Mobile Data Terminals in HandyDART Vehicles Replace ATC equipment to improve system reliability and maintain state of good repair. Replace four (4) Automatically Assured Resistivity Unit (AARU) units this year. Replace Mobile Data Terminals (MDT) on HandyDART vehicles due to end of life technology. 2,043 (1,465) 577 5,100 (4,500) 600 1, ,903 1, ,955 1, ,110 1, ,200 Other Fifteen (15) other projects in this asset category 1, ,208 10, ,725 Facilities Hamilton Transit Centre Preliminary and Detailed Design Seismic Upgrade South Seabus and Skywalk - Construction Brentwood Station South Elevator Facility STC Roof and Envelope Replacement 2015 Design and construction of a new transit centre in the Hamilton area of Richmond. Upgrade of the South SeaBus Terminal structures to withstand a 1 in 475 year earthquake event. Design and construction a new elevator, canopy and stairwell facility on the south side of the Brentwood Millennium Line SkyTrain Station. Replacement of the roof and envelope systems at the Surrey Transit Center (STC) administration building. 52,846 (39,349) 13, ,367 (84,978) 50,389 6, ,000 6, ,000 1, ,147 2, ,110 1, ,337 1, ,390 KB-Expo Line Escalator Replacement - Stage 1 Replacement of 6 Expo Line escalators and is Stage 1 of a multi stage replacement program to replace 32 Expo Line escalators. 1, ,156 2, ,328 Other Twelve (12) other projects in this asset category. 1, ,901 43,010 (6,109) 36,901 Infrastructure Canada Line Bus Loops Compass and Faregate - Phase 3 Design, tendering and construction of bus loops at the Marine Drive, Bridgeport and Richmond Brighouse Canada Line stations Design and construction of system wide Compass Card and Faregate infrastructure and supporting ancillary facilities. EXPO Line Propulsion Power Upgrade Design, supply and install transformer-rectifier units at 10 substations, 19.1 KM of power rail, and power cable feeders Pattullo Bridge short term rehabilitation Phase 2 Replace the most deteriorated components of the Pattullo Bridge that pose a safety concern and /or risk of causing partial or total closure of the bridge to all users and /or disruption to other modes of travel. 2, ,655 11, ,668 27,189 (17,651) 9, ,200 (99,072) 95,128 2,060 (1,248) ,135 (43,000) 14,135 1, ,380 9, ,000 Metrotown Station and Exchange Upgrade Design Commercial Broadway SkyTrain Station Phase 2 Upgrade Design Upgrade Metrotown SkyTrain station and construct new bus exchange. Design and construction of Phase 2 Commercial Broadway SkyTrain station development to increase capacity 19,742 (19,000) ,774 (34,800) 22,974 33,476 (18,448) 15,028 66,615 (28,217) 38,398 Page 25

73 Active and Approval in Principle (AIP) Projects Underway (cont.) Active / Approved in Principle (AIP) Capital Projects (based on remaining gross cashflows in ) ($ thousands) 2016 Capital Cash Flow Total Project Budget Project Name Description Gross Cost Less Funding TransLink Net Cost Gross Cost Less Funding TransLink Net Cost New Westminster Station Upgrades Design Upgrade New Westminster Station to improve accessibility 7,545 (1,966) 5,579 12,286 (6,131) 6,155 SeaBus Terminals and Admin Building Envelope Upgrades-Design Stage Joyce-Collingwood Station Upgrade Design Construction SkyBridge Concrete Spalling Prevention Upgrade SeaBus Terminals and Admin Building Envelope 7, ,042 12, ,443 Upgrade Joyce Collingwood Station to improve accessibility 16,826 (11,344) 5,482 23,588 (17,465) 6,123 Design and construct additional support to eliminate concrete spalling from the suspended deck slab of the SkyBridge structure. 1, ,445 1, ,850 STC CNG Facility Retrofit TOH Metrotown Group Rectifier Replacement AIP - Retrofit the Surrey Transit Centre to accommodate CNG bus fuelling and maintenance requirements AIP - Design and construct rectifier station replacements at Central Park, Willingdon East and Willingdon West rectifier stations. 10,512 (3,778) 6,734 15,000 (4,000) 11,000 4,258 (4,189) 69 5,765 (4,725) 1,040 PCTC Roof Replacement Replacement of the Port Coquitlam Transit Centre roof. 1, ,790 2, ,805 Running Rail Replacement Replace Platform LEDs System 22nd Street Exchange - Lighting and Passenger Safety Compliance 29th Avenue Bus Exchange Layover Improvements Expo and Millennium Line Signage and Station Fixture Replacement BG-Fibre Optic System Upgrade Stage 3 Trolley Overhead Installation Downtown Vancouver Newton Exchange Layover Facility Replacement of 3,600 lineal meters of SkyTrain running rail in three locations on the Expo and Millennium Line guideways. AIP - Replace the existing red PLED panels at the Expo and Millennium Line stations Exterior lighting upgrades to bus loop area and passenger circulation areas as well as improved crosswalk marking and new shelters for safer passenger environment. New curb alignment of bus pick-up and drop-off bays and island to accommodate additional layover bays and passenger waiting/circulation space Upgrade signage at 25 Expo and Millennium Line stations to support system operational changes, ensure code and regulatory signage compliance, and bring all stations up to TransLink Wayfinding Standard. This project is part of a multi-year program and is divided into three tiers of priority. Extend geographic reach of new BCRTC and TransLink fibre optic cables to Millennium Line stations from Lougheed Station to VCC-Clark Station, provides fibre capacity to ATC Equipment Replacement project and includes fibre capacity for the future UBC SkyTrain Line. Install new trolley wire along downtown Vancouver streets to achieve route efficiencies, better customer service and operational cost savings. Purchase and install a washroom and crew room trailer at the existing bus turn-around located on TransLink owned lands south of the Newton Exchange 1, ,613 4, ,118 6, ,367 9, ,559 1, ,132 1, ,132 1, ,426 1, ,426 3, ,300 6, ,760 1, ,143 4, ,290 1, ,792 1, ,845 1, ,345 1, ,345 Other Thirty six (36) other projects in this asset category 2,055 (553) 1, ,206 (24,775) 257,431 Page 26

74 Active and Approval in Principle (AIP) Projects Underway (cont.) Active / Approved in Principle (AIP) Capital Projects (based on remaining gross cashflows in ) ($ thousands) Project Name Description Gross Cost Technology Applications SkyTrain Public Announcement System Replacement of Integrated Alarm Notification System at all Expo Line passenger stations, Expo Line propulsion power stations and the SkyTrain Operations and Maintenance Centre 2016 Capital Cash Flow Total Project Budget Less Funding TransLink Net Cost Gross Cost Less Funding TransLink Net Cost 1, ,387 6, ,375 Data Warehouse Business Intelligence DW BI Program Build business intelligence tools for data warehouse 1, ,510 2, ,000 TransLink Enterprise Asset Management Implement effective Asset Management strategies and processes 1, ,865 1, , Website Modernization Program to modernize customer experience of TransLink website for use on mobile devices, in accordance with endorsed digital marketing strategy, and progressively update website components provisioned on secure and supported technology platforms, consolidating and integrating components, where possible, to simplify and streamline future support 1, ,098 2, ,200 BT Infrastructure Capacity Sufficiency - Storage 2015 Install additional storage capacity in development, test and production SAN environments to meet 3-year horizon, and ensure Business Technology Operations team can sustain current growth in storage demand, by adding 34% to current asset base annually 2, ,850 2, ,850 Other Twenty two (22) other projects in this asset category 3, ,032 26, ,707 Vehicles Conventional Revenue Series MK I Refurbishment Project Refurbish the original 114 MKI SkyTrain cars to extend service lives by another 15 years. 7,043 (5,950) 1,093 37,875 (28,460) 9,415 WCE Pitney Bowes Lease Buyout of Original 28 Cars Exercise the lease buyout options for 28 WCE rail cars 20,568 (14,058) 6,509 20,680 (14,058) 6, Conventional Replacement Buses Procure new replacement 40 and 60 articulated buses to replace 1997 conventional buses that have reached the end of their useful service life 56,691 (50,280) 6,411 59,000 (58,800) HandyDART Vehicle Replacement Replace 25 HandyDART vehicles with 25 new HandyDart vehicles 4,029 (1,710) 2,320 7,550 (5,370) 2, Community Shuttle Replacement Buses This project is to replace 24 Community Shuttles that have reached the end of their useful service lives with 24 new Community Shuttles through a new RFP issue. 4,735 (4,612) 124 4,900 (6,300) (1,400) 2016 Conventional Bus Replacement This project is to replace 111 conventional 40ft and 60ft buses that reached end of useful service lives with 25-40ft CNG, 60-40ft diesel and 26-60ft diesel buses HandyDART Replacement Vehicles This project is to replace 39 HandyDART vehicles that reached end of useful service life with same number of vehicles Community Shuttle Replacements This project is to replace 20 Community Shuttles that reached the end of their useful service lives with 20 new Community Shuttles through exercising an option on the existing shuttle contract. 47,600 (44,885) 2,715 76,400 (63,324) 13,076 5,600 (5,040) 560 5,600 (5,040) 560 4,200 (3,780) 420 4,200 (3,780) 420 Other Seventeen (17) other projects in this asset category 1,286 (315) ,381 (334,153) 187,228 Vehicles Non-Revenue Other Nine (9) other projects in this asset category 1, ,613 4, ,393 Major Construction Projects Evergreen Line - TransLink Contribution Evergreen Extension Integration to Meet Current Standards TransLink monetary and in kind contributions to the design and construction of the Evergreen Line by the Province Project scope is to address safety/reliability issues, systems deficiencies, and current standards for bicycle infrastructure. 42, , , ,841 4, ,626 4,626 (265) 4,361 Total Capital Program 441,145 (249,620) 191,525 2,186,316 (877,322) 1,308,994 Page 27

75 Capital Infrastructure Contributions TransLink provides capital infrastructure contributions each year to the municipalities to fund rehabilitation and minor capital work on the Major Road Network (MRN) and bike pathways. For 2016, TransLink is budgeting capital contribution funding of $23. 8 million to municipalities for road and bike infrastructure. Projects already approved and underway have a budget of $ million, which with the 2016 capital infrastructure contributions, total $ million. None of these projects are eligible for senior government funding. The table below provides information on projects with over one million in cash flow in Capital Infrastructure Contributions ($ thousands) 2016 Capital Cash Flow Total Project Budget Project Name Description Gross Cost Less Funding TransLink Net Cost Gross Cost Less Funding TransLink Net Cost 2016 Capital Infrastructure Contributions 2016 Major Road Network and Bike Capital Program Annual contribution program to member municipalities for pavement rehabilitation, and road and bike infrastructure upgrades 14, ,234 23, ,784 Active / Approved in Principle (AIP) Capital Projects (based on remaining gross cashflows in ) Roberts Bank Rail Corridor Program Contribution program to member municipalities for road infrastructure upgrades at Roberts Bank Rail Corridor 2, ,041 50, , MRN Minor Capital Program - First & Second Wave Pro 2010 contribution program to member municipalities for improving the capacity, safety and connectivity of the Major Road Network 2011 MRN Minor Capital Program 2011 contribution program to member municipalities for improving the capacity, safety and connectivity of the Major Road Network 2012 MRN Minor Capital Program 2012 contribution program to member municipalities for improving the capacity, safety and connectivity of the Major Road Network 2012 Bicycle Capital Program 2012 contribution program to member municipalities for bike infrastructure upgrades 2013 MRNB Capital Program 2013 contribution program to member municipalities for road and bike infrastructure upgrades 2, ,723 18, ,227 3, ,029 9, ,255 5, ,699 17, ,443 1, ,071 3, ,000 2, ,399 23, , Major Road Network and Bike Capital Program 2015 Major Road Network and Bike Capital Program 2014 contribution program to member municipalities for pavement rehabilitation, and road and bike infrastructure upgrades 2015 contribution program to member municipalities for pavement rehabilitation, and road and bike infrastructure upgrades 2, ,979 23, ,503 3, ,697 24, ,214 Other Three (3) other projects in this asset category , ,319 Total Capital Infrastructure Contributions 38, , , ,101 Page 28

76 5. Changes in Financial Position Consolidated Statement of Financial Position as at December ($ thousands) Q2 FORECAST BUDGET Change Ca s h 143, ,397 (21,940) Accounts Receivable 97, ,708 4,012 Restricted cash and investments 439, ,310 (32,432) Investments 87,263 83,661 (3,602) Debt reserve deposits 35,939 34,639 (1,300) Financial Assets 803, ,715 (55,262) Accounts payable and accrued liabilities 196, , Debt 2,104,147 2,285, ,413 Deferred government transfer 1,250,538 1,110,026 (140,512) Golden Ears Bridge contractor liability 1,050,913 1,049,021 (1,892) Deferred concenssionaire credits 572, ,995 (23,337) Employee future benefits 107, ,233 11,750 Deferred lease inducements - net 12,929 12,499 (430) Liabilities 5,294,772 5,321,867 27,095 Net Debt (4,490,795) (4,573,152) (82,357) Tangible Capital Assets 4,610,533 4,864, ,800 Supplies Inventory 54,060 55,683 1,623 Prepaid Expenses 12,206 11,209 (997) Non-Financial Assets 4,676,799 4,931, ,426 Accumulated Surplus 186, , ,069 Financial Assets The restricted cash and investments primarily represent unspent government transfers and selfadministered sinking funds. Liabilities Deferred government transfer represents the receipt of capital funding offset by the amortization and revenue recognition for government funding. The Golden Ears Bridge contractor liability decreased slightly as principal payments commenced during 2015 and will continue in Deferred concessionaire credits represent the funding provided by the Canada Line Concessionaire. This balance is amortized to income on a straight-line basis over the operating term of the concessionaire agreement, which will expire in July Page 29

77 The increase in employee future benefits, which represent post-retirement and post-employment benefits, is due to the annual estimated current service cost and related interest. The post-retirement portion of this liability will draw down upon retirement of the employees. Non-Financial Assets Tangible capital assets are forecasted to increase $254 million in 2016 with additions of $435 million, offset by amortization of $181 million. The significant projects include the Evergreen Extension, Hamilton Transit Centre and the Compass and Fare Gate project. Page 30

78 6. Liquidity and Capital Resources Cash Flows and Liquidity Cash and liquidity is expected to decrease by $27. 1 million, partly due to higher capital expenditures. The following table shows TransLink s unrestricted cash and investments net of those investments maturing in 12 months or longer. UNRESTRICTED CASH AND NEAR CASH EQUIVALENTS As at December ($ thousands) ACTUAL Q2 FORECAST BUDGET Change Cash and cash equivalents 165, , ,397 (21,940) Investments 147,717 87,263 83,661 (3,602) Total Unrestricted cash and investments 313, , ,058 (25,542) Less: Long term maturities* (11,538) (10,436) (12,000) (1,564) Total Unrestricted cash and near cash equivalents 301, , ,058 (27,106) *investments with maturity periods greater than 365 days Restricted Funds The Unspent Government Transfers are used to fund qualifying capital expenditures. RESTRICTED CASH AND INVESTMENTS As at December ($ thousands) ACTUAL Q2 FORECAST BUDGET Change Unspent government transfers 285, , ,777 (72,291) Self administered sinking funds 76, , ,533 39,859 Total Restricted cash and investments 361, , ,310 (32,432) Page 31

79 Debt TransLink currently has three main sources of financing its assets: Net Direct Debt, Indirect P3 Debt and Senior Government Contributions. The latter is represented on the balance sheet as Deferred Government Transfer. Net Direct Debt is expected to increase by $143 million due to issuance of new debt partially offset by sinking fund contributions. FINANCING As at December ($ thousands) ACTUAL Q2 FORECAST BUDGET Change Direct Debt 2,045,356 2,104,147 2,285, ,413 Less: Self-administered sinking funds (76,230) (112,674) (152,533) (39,859) Less: Debt reserve deposits (36,104) (35,939) (34,639) 1,300 Net Direct Debt 1,933,022 1,955, % 2,098, % 142,854 Golden Ears Bridge contractor liability 1,051,375 1,050,913 1,049,021 (1,892) Deferred concessionaire credit (Canada Line) 595, , ,995 (23,337) Indirect P3 Debt 1,647,044 1,623, % 1,598, % (25,229) Subtotal Net Direct Debt and Indirect P3 Debt 3,580,066 3,578,779 3,696, ,625 Deferred government transfers 1,201,165 1,250, % 1,110, % (140,512) Total Financing 4,781,231 4,829, % 4,806, % (22,887) Page 32

80 Appendix I Consolidated Financial Statements The following statements are presented in accordance with generally accepted Canadian accounting principles for local governments, as recommended by the Public Sector Accounting Board of the Chartered Professional Accountants of Canada. Consolidated Statement of Financial Position Consolidated Statement of Financial Position as at December ($ thousands) ACTUAL BUDGET BUDGET Ca s h 165, , ,397 Accounts Receivable 102,644 87, ,708 Restricted cash and investments 361, , ,310 Investments 147,717 74,463 83,661 Assets held for sale 4, Debt reserve deposits 36,104 39,670 34,639 Financial Assets 818, , ,715 Accounts payable and accrued liabilities 234, , ,533 Debt 2,045,356 2,330,420 2,285,560 Deferred government transfer 1,201,165 1,364,377 1,110,026 Golden Ears Bridge contractor liability 1,051,375 1,052,520 1,049,021 Deferred concenssionaire credits 595, , ,995 Employee future benefits 99, , ,233 Deferred lease inducements - net 13,021 13,131 12,499 Liabilities 5,240,907 5,643,533 5,321,867 Net Debt (4,422,461) (4,766,018) (4,573,152) Tangible Capital Assets 4,511,992 4,871,628 4,864,333 Supplies Inventory 51,266 48,346 55,683 Prepaid Expenses 12,516 17,089 11,209 Non-Financial Assets 4,575,774 4,937,063 4,931,225 Accumulated Surplus 153, , ,073 Page 33

81 Consolidated Statement of Operations Consolidated Statement of Operations Twelve months ending December ($ thousands) ACTUAL BUDGET BUDGET Revenue Taxation 744, , ,532 Transit 495, , ,272 Golden Ears Bridge tolls 41,623 43,580 50,641 Emissions Testing 12, Government Transfers 90,291 98, ,185 Amortization of Deferred Concessionaire Credit 23,273 23,337 23,337 Interest Income 34,739 33,353 36,172 Miscellaneous 5,576 3,489 3,537 Gain (Loss) on Disposal 6,437 9,388-1,453,752 1,487,809 1,688,676 Expenses AirCare 15, Bus Division 633, , ,865 Corporate 71, , ,299 Rail Division 255, , ,091 Roads & Bridges 83,627 87,940 82,782 Transit Police 34,334 33,263 33,847 Sub-total Expenses, before Amortization and Interest 1,094,312 1,147,959 1,166,884 Amortization of Capital Assets 161, , ,520 Interest 171, , ,203 1,426,878 1,485,826 1,516,607 Surplus for the year 26,874 1, ,069 Accumulated surplus, beginning of year 126, , ,004 Accumulated surplus, end of year 153, , ,073 Page 34

82 Consolidated Statement of Changes in Net Financial Liabilities Consolidated Statement of Changes in Net Financial Liabilities Twelve months ending December ($ thousands) ACTUAL BUDGET BUDGET Surplus for the year 26,874 1, ,069 Acquisition of tangible capital assets (228,413) (410,955) (435,321) Amortization of tangible capital assets 161, , ,520 Gain on disposal of tangible capital assets (6,437) (9,388) - Net proceeds from disposal of capital assets 7,707 13,625 - Transfers to assets held for sale 4, (60,803) (235,397) (253,801) Changes in supplies inventory (4,397) - (1,622) Changes in prepaid expenses (3,201) (7,598) - (625) Decrease in net debt (41,527) (233,414) (82,357) Net debt, beginning of year (4,380,934) (4,532,604) (4,490,795) Net debt, end of year (4,422,461) (4,766,018) (4,573,152) Page 35

83 Consolidated Statement of Cash Flows Consolidated Statement of Cash Flows Twelve months ending December ($ thousands) ACTUAL BUDGET BUDGET Surplus (Deficit) for the period 26,874 1, ,069 Non-cash charges to operations 68,811 58,368 (106,668) Net proceeds from disposal of assets held for sale 14, Changes in non-cash operating working capital (3,887) 3,342 7,215 Net changes in cash from operating transactions 105,962 63,693 72,616 Purchase of capital assets (228,413) (410,955) (435,321) Net proceeds from disposal of capital assets 7,707 13,625 - Net changes in cash from capital transactions (220,706) (397,330) (435,321) Decrease (Increase) in restricted cash and investments 59,172 (43,198) 32,432 Decrease (Increase) in investments (63,930) - 3,603 Decrease (Increase) in debt reserve deposits 3,573-1,300 Net changes in cash from investment transactions (1,185) (43,198) 37,335 Debt Proceeds 1 131, , ,000 Issue costs in financing (1,273) - - Repayments of debt 1 (130,698) (87,844) (88,587) Lease inducements received 33,323 - (430) Government transfers received for capital additions , ,446 Net changes in cash from financing transactions 33, , ,429 Increase (decrease) in cash (82,154) (23,433) (21,941) Cash, beginning of year 247, , ,337 Cash, end of year 165, , ,397 1 Restatement of debt proceeds and repayments of debt in 2015 Budget adjusted for net commercial paper activity. Page 36

84 Appendix II Funded Statement of Operations The following table presents the 2016 Budget, including 2014 actual and comparisons to 2015 forecast, as reconciled between the results for accounting purposes and the results on a funded basis. Funded Statement of Operations Twelve months ending December Change ($ thousands) ACTUAL Q2 FORECAST BUDGET Fa v/(unfa v) % Net Surplus (Deficit) for Accounting Purposes 26,874 32, , , % Remove effect of Aircare 3, % Transfers from Government (70,259) (78,680) (262,959) (184,279) (234.2%) Interest Income (29,743) (29,118) (32,960) (3,842) (13.2%) Amortization of Deferred Concessionaire Credit (23,273) (23,337) (23,337) - 0.0% Capital Funding to Municipalities 43,953 26,072 38,556 12, % Corporate Other (78) (100.0%) Depreciation 153, , ,499 16, % Debt service costs (83,381) (95,185) (97,378) (2,193) (2.3%) Net Surplus (Deficit) for Funding Purposes 22,508 (11,783) (33,510) (21,727) (184.4%) Cumulative Funded Surplus Opening Balance 342, , ,425 (11,783) (3.2%) Cumulative Funded Surplus Ending Balance 365, , ,915 (33,510) (9.5%) The net surplus (deficit) for funding purposes reports the results after funding adjustments. Funding adjustments remove assets, and the corresponding revenue and expenditures, funded by senior government or other parties from TransLink s consolidated financial statements Page 37

85 Appendix III Allocated Costs between Divisions Allocated Cost Breakdown Change ($ thousands) ACTUAL Q2 FORECAST BUDGET Fa v/(unfa v) % Shared Services Bus Division 23,777 23,999 26,129 (2,130) (8.9%) Access Transit - 1, % SkyTrain - Expo & Millenium Line ,087 (216) (24.8%) West Coast Express % Transit Police 1,525 1,666 1, % Total Shared Services allocated 26,186 27,632 29,613 (1,981) (7.2%) Costs Administered by TransLink and allocated to subsidiaries Bus Division 15,135 16,033 17,605 (1,572) (9.8%) SkyTrain - Expo & Millenium Line 3,581 4,009 4,186 (177) (4.4%) SkyTrain - Canada Line 2,009 2,066 2,234 (168) (8.1%) West Coast Express 14,616 15,824 2,739 13, % Transit Police 1,639 1,862 2,014 (152) (8.2%) Total Costs Administered by TransLink allocated 36,981 39,794 28,778 11, % Bus Division 38,913 40,032 43,734 (3,702) (9.2%) Access Transit - 1, % SkyTrain - Expo & Millenium Line 4,418 4,880 5,273 (393) (8.1%) SkyTrain - Canada Line 2,009 2,066 2,234 (168) (8.1%) West Coast Express 14,662 15,900 2,809 13, % Transit Police 3,164 3,528 3,637 (109) (3.1%) Total costs allocated to Subsidiaries from TransLink 63,166 67,426 58,391 9, % Page 38

86 To: From: Board of Directors Fred Cummings, Vice President, Infrastructure Management & Engineering Date: December 7, 2015 Subject: Pattullo Bridge Rehabilitation and Condition Monitoring Report PURPOSE This report provides an information update on the current status of the Pattullo Bridge Rehabilitation Project. Information new since the September 2015 update report is highlighted in yellow. BACKGROUND As one of the oldest bridges in the Lower Mainland, the 78-year old Pattullo Bridge faces a number of challenges. Please refer to the September 2015 and earlier reports for details. The Pattullo Replacement Project (subject of a separate Board report) is underway and on a schedule to achieve procurement-readiness by October In September 2015 the Board approved a reduced-scope rehabilitation project to address the most urgent deck rehabilitation requirements on the current bridge, and redirect the majority of the rehabilitation funds (approximately $75 million) to the replacement project. REHABILITATION PROJECT SCOPE The deck rehabilitation will address the most urgent deck condition risk and keep the bridge functional for an estimated six to seven year period. The repairs will cost approximately $10 million and mitigate the pothole issue on the truss spans (currently in need of the most attention). The risk of full-depth failures (small deep potholes due to delamination) on the south approach spans will continue to be mitigated through frequent and detailed inspections. Should such potholes materialize, the bridge may need to be temporarily closed for emergency repairs. At the end of 2016, the need for any further urgent rehabilitation works will be reassessed. The deck rehabilitation is on-track to start in May 2016, with a construction duration of five months. During these five months, the bridge will be reduced to one lane in each direction, to create a safe work zone for the work crews. Pedestrians and cyclists will generally still be allowed to use the bridge. Large trucks will also still be accommodated on the bridge. The bridge speed limit will be posted at 30 kilometres per hour. In general, one lane per direction will be available overnight and on weekends, although occasional overnight and weekend full bridge closures may be scheduled and from time to time, and announced to the public in advance.

87 Pattullo Bridge Rehabilitation and Condition Monitoring Report December 7, 2015 Page 2 of 14 The scope of the deck rehabilitation work starting in May 2016 includes: Rehabilitate the full area of deck between curbs from Pier P0 to P9. Remove existing asphalt and concrete deck to the top of rebar. Survey the deck on site to identify zones for partial depth repairs. Remove delaminated concrete in designated zones. Perform full depth repairs where needed. Clean/repair/replace damaged or corroded reinforcement. Place concrete overlay to elevation of top of present asphalt. Reinstate all lane markings and center delineators. UPDATE Since September 2015 the following activities have been completed: The detailed design for the re-scoped rehabilitation work is at the 90 percent stage and under final review. The traffic management plan for the new scope is at the 85 percent completion stage and under final review. TransLink is working closely with New Westminster, Surrey and the Ministry of Transportation and Highways to identify traffic impacts due the lane closures and suitable mitigation measures. A comprehensive communications plan is in the final draft stage. The public will be advised of the upcoming lane closures through a concentrated communications campaign before the work starts in Park-and-ride opportunities have been identified and will be publicized as part of the communications campaign to encourage transit use and car-pooling. A procurement process to select a contractor is underway and has reached the selection stage. An early contractor involvement approach has been adopted to manage the schedule risk. A procurement process to select the provider of the changeable message signs has successfully concluded. CONCLUSION The Pattullo deck rehabilitation project is on-track to start in May 2016, with a scheduled duration of five months. Technical and procurement work is progressing on schedule, and the project will be supported by a thorough communications plan.

88 Pattullo Bridge Rehabilitation and Condition Monitoring Report December 7, 2015 Page 3 of 14 APPENDIX A Pattullo Bridge Condition Monitoring Report PURPOSE This report summarizes the on-going activities to monitor the condition of the Pattullo Bridge. New information since the last report is highlighted in yellow. BACKGROUND The Pattullo Bridge is 78 years old. Most of the structural components have passed the predicted design life and are reaching the end of their useful life. The deterioration of the bridge condition is a dynamic event, with conditions generally degrading over time. Weather, temperature fluctuation, rainfall, wind, river action, live traffic loads and aging of the steel and concrete components all contribute to the degradation of the bridge condition. To ensure that all the necessary inspection and monitoring activities are being identified and implemented, TransLink regularly consults with experienced bridge engineers working in the private and public sector in Metro Vancouver. With responsibility for the safety and operations of the bridge, TransLink monitors the condition of the bridge structure closely through regular inspections of the bridge components. TransLink then performs maintenance and repairs in response to the findings of the inspection reports. DISCUSSION Recent inspections and analysis commissioned by TransLink and received in 2013, 2014, and 2015 are listed in Table 1. In addition to the work listed in Table 1, TransLink s Manager of Bridge Operations and the Pattullo Bridge s maintenance contractor, Mainroad Contracting Ltd., also perform condition reviews of the Pattullo Bridge. A synopsis of the findings is provided in the table below.

89 Pattullo Bridge Rehabilitation and Condition Monitoring Report December 7, 2015 Page 4 of 14 Table 1: 2013/2014/2015 Pattullo Bridge Inspection Reports APPENDIX REFERENCE REPORT TITLE PREPARED BY: DATE Concrete Deck Condition Survey Levelton Consultants Ltd. January 4, Winter Monitoring Summary Pattullo Bridge Management Strategy Study 2013 Maintenance and Rehabilitation Prioritization Recommendations Pattullo Bridge 2013 Pattullo Bridge Project: Seismic Vulnerability Assessment Pattullo Bridge Inspection Reports Concrete Failure Mitigation Options 2013 Spring Freshet Monitoring Summary Winter Monitoring Summary Freshet Monitoring Summary by Northwest Hydraulic Consultants Existing Pedestrian Rehabilitation Feasibility Study Northwest Hydraulic Consultants Associated Engineering February 7, 2013 February 28, 2013 Buckland & Taylor April 18, 2013 Delcan Corporation May 2013 Ministry of Transportation and Infrastructure July 2, 2013 Buckland & Taylor August 8, 2013 Northwest Hydraulic Consultants Northwest Hydraulic Consultants Northwest Hydraulic Consultants September 25, 2013 January, 2014 July 31, 2014 Buckland & Taylor July 22, ICBC Collision Data Analysis TransLink July Pattullo Bridge Inspection Reports Ministry of Transportation and Infrastructure 14 Pattullo Bridge Railing Inspection Buckland & Taylor Winter Monitoring Summary 16 Pattullo Bridge Road Safety Assessment Operations and Maintenance Review for the Pattullo Bridge Pattullo Bridge Emergency Response Plan Northwest Hydraulic Consultants G. Ho Engineering Consultants Inc. Associated Engineering TransLink December 5, 2014 November 24, 2014 February 12, 2015 April 2, 2015 In Progress In Progress

90 Pattullo Bridge Rehabilitation and Condition Monitoring Report December 7, 2015 Page 5 of Freshet Monitoring Summary Pattullo Bridge Deck Condition Monitoring Field Review Reports Pattullo Bridge Wind Monitoring & Seismic Warning Systems Northwest Hydraulic Consultants Levelton Consultants Ltd TransLink June 25, 2015 In Progress Feasibility study budget being confirmed in Dec 2015 A summary of each of these reports and the resultant actions by TransLink is provided as follows: Concrete Deck Condition Survey by Levelton Consultants Ltd. The survey found that the condition of the inspected deck areas varied between fair and poor, with considerable areas of delamination (disconnection of the concrete from the steel), localized patching, and surface spalls. While deck patching and repaving have been undertaken in recent years, these repairs are considered viable in the short-term only. It is expected that the corrosion and its related damage will occur at an increasing rate, requiring bridge maintenance closures to occur at increasing frequency and for longer durations. There have been several instances during the current and previous deck repair programs where removal of the deteriorated concrete from the top surface of the deck resulted in small holes through the deck, usually less than approximately 100 mm in diameter. The frequency and size of these full-thickness damage events should be expected to increase over time. At this time, the possibility of a localized full thickness deck failure (a small or large but deep pothole that could cause damage to vehicles) cannot be ruled out. As such Levelton recommended that TransLink conduct periodic reviews of the deck riding surface and the soffit at least once every year or more frequently if evidence of concrete deterioration visually manifests by disruption of the asphalt riding surface. In addition, Levelton also recommended that a comprehensive deck rehabilitation or deck replacement strategy be considered. Resultant action by TransLink 1. Annual spot repairs are conducted to repair delaminated areas. Summer closures in 2013 and 2014 to perform spot repairs were undertaken over three weekends. 2. The design of a full deck rehabilitation was started in spring In September 2015, due to technical limitations and escalating costs, the scope of the Rehabilitation Project was reduced to focus on essential deck repairs only. Work is proceeding to implement a deck rehabilitation program consisting of inspection, patching and milling-and-filling that would address the deck condition risk and keep the bridge safe for a six to seven year period. Construction work will begin in May 2016.

91 Pattullo Bridge Rehabilitation and Condition Monitoring Report December 7, 2015 Page 6 of The budget for a full bridge rehabilitation (including a full deck rehabilitation) is included in the 2013 and subsequent 2014 Base Plan. 4. To ensure that the deck is functional and safe until rehabilitation works commence, Levelton will conduct walkover inspections of the deck during the nightly lane closures and will also conduct ground level and catwalk level inspections of the underside of the deck at two-week intervals. These inspections will begin in Q2 of Due to upcoming rehabilitation works to address the deterioration of the deck, no short-term closures to perform spot repairs to the deck were conducted during the summer of Rather, since Q2 of 2015, Levelton has been conducting regular inspections of the deck at two-week intervals. Regular field review reports documenting the inspections have been submitted since March 31, Some areas of immediate repairs were identified, and the Bridge was closed for a weekend in October 2015 to undertake the repairs (see item 20) Winter Scour Monitoring Summary by Northwest Hydraulic Consultants The 2012 winter survey, which was conducted following the two lowest winter tides of the year, identified that there was no unusual or significant bed level changes in the area near the piers. The existing scour protection at the Pattullo Bridge piers appeared effective. The report recommended that continued bi-annual monitoring for the Bridge be performed. Resultant action by TransLink See resultant action after item Pattullo Bridge Management Strategy Study by Associated Engineering In 2012, Associated Engineering identified the key issues and risks for the Pattullo Bridge related to condition, structural capacity, seismic capacity, and user safety, and established mitigation measures to reduce the risks of each of the items identified. Resultant action by TransLink The mitigation measures identified in this report have been taken into consideration for the rehabilitation project. Design work is underway Maintenance and Rehabilitation Prioritization Recommendations Pattullo Bridge by Buckland & Taylor Buckland & Taylor confirmed that the Pattullo Bridge is currently facing seven types of structural issues. A severity classification was assigned to each type of issue, which found that the items in highest priority for repair are the concrete delaminations and spalls over roads and railways. Resultant action by TransLink 1. Loose concrete was removed by work crews from the piers and the underside of the deck in 2013.

92 Pattullo Bridge Rehabilitation and Condition Monitoring Report December 7, 2015 Page 7 of Falling Debris warning signs have been installed under the south approach structure (Surrey). 3. Debris netting was installed under spans that cross other transportation routes (SFPR, rail tracks etc.), with the work completed in June The other issues and mitigation measures identified in this report have been included in the scope of the rehabilitation project Pattullo Bridge Project: Seismic Vulnerability Assessment by Delcan Corporation This Delcan study concluded that the current condition of the Bridge is significantly vulnerable in terms of withstanding a seismic event due to the state of ductility of the pier columns. The bridge does not meet seismic standards for a new bridge built today and is vulnerable to damage from a moderate earthquake. Resultant action by TransLink The budget for improving seismic resiliency was included in the 2013 and subsequent 2014 Base Plan Pattullo Bridge Inspection Reports by the Ministry of Transportation and Infrastructure Each year, the BC Ministry of Transportation and Infrastructure inspectors perform a condition inspection of the Pattullo Bridge that consists of walkthroughs and visual observations, with the aid of a snooper truck. During the 2013 inspection, it was reported that delaminations below the deck and on the piers may cause concrete to break off, resulting in a falling debris hazard. It was also noted that the steel railings and the down pipes used for drainage are heavily corroded and are in need of repair. Frequency of use of the snooper truck for inspections has now been increased from every three years to annual. Resultant action by TransLink 1. Annual spot repairs are conducted to repair delaminated areas. Summer closures in 2013 and 2014 to perform spot repairs were undertaken over three weekends. 2. Loose concrete was removed by work crews from the piers and the underside of the deck in Falling Debris warning signs were installed in Debris netting was installed along key sections by June The other required repairs identified in this report have been included in the scope of the rehabilitation project. 6. The annual inspection for 2014 was conducted in November. An Inspection Report was delivered in late 2014 (see item 13). Due to the upcoming rehabilitation works, Buckland & Taylor confirmed that a condition inspection is not required for However, with a scaled rehabilitation strategy intended to maintain safety and functionality for a 6 to 7 year period, the annual condition inspection will resume in 2016.

93 Pattullo Bridge Rehabilitation and Condition Monitoring Report December 7, 2015 Page 8 of Concrete Failure Mitigation Options by Buckland & Taylor This 2013 Buckland & Taylor report found that the introduction of weight restrictions is not expected to be effective in slowing or eliminating the development of potholes. Potholes are developing as a result of the deck delamination, and are not directly caused by the amount and weight of traffic on the Bridge. With respect to debris netting to catch spalling concrete, it was recommended that a netting system be installed over Columbia Street, Front Street, the railway tracks, and over the South Fraser Perimeter Road (SFPR) to protect the safety of the public. Resultant action by TransLink 1. No weight restrictions (truck prohibitions) are needed at this time. 2. Annual spot repairs are conducted to repair delaminated areas. Summer closures in 2013 and 2014 to perform spot repairs were undertaken over three weekends. The Bridge was also closed for one weekend in October 2015 to undertake spot repairs on the deck (see item 20). 3. Loose concrete was removed by work crews from the piers and the underside of the deck in Falling Debris warning signs have been installed. 5. Debris netting was installed along key sections by June Spring Freshet Monitoring Summary by Northwest Hydraulic Consultants Twice a year, Northwest Hydraulic Consultants Ltd (NHC) surveys the scour impacts of low/high river discharges and large tidal variations, which generate reverse flow and large localized river velocity at the Pattullo Bridge. Generally the freshet survey is scheduled to take place one or two weeks after the peak discharge to capture lowest river bed levels. The May 2013 Freshet survey recommended that no maintenance or upgrades are required at this time, and that continued monitoring is recommended. Resultant action by TransLink See resultant action after item Winter Monitoring Summary by Northwest Hydraulic Consultants The 2013 winter survey was completed in December, 2013, and a report was received from Northwest Hydraulic Consultants in Q1, No new concerns are raised by the survey. Resultant action by TransLink See resultant action after item Freshet Monitoring Summary by Northwest Hydraulic Consultants The 2014 Freshet monitoring survey was performed in May The survey found that no additional pier stabilization actions are required at this time, and that continued monitoring is recommended.

94 Pattullo Bridge Rehabilitation and Condition Monitoring Report December 7, 2015 Page 9 of 14 Resultant action by TransLink for items 2, 8, 9 and 10 The rip-rap deployed by TransLink to stabilize the piers is functioning as planned, with regular monitoring. TransLink is continuing with project development of the replacement bridge design as a long term solution to the scour issue. 11. Existing Pedestrian Railing Rehabilitation Feasibility Study by Buckland & Taylor Previous inspection reports completed by both Buckland & Taylor and the British Columbia Ministry of Transportation and Infrastructure (Ministry) indicated issues in the condition of the existing railings on the Pattullo Bridge. As a result, TransLink requested Buckland & Taylor to examine rehabilitation or replacement options for the existing bridge railings. Due to structural constraints, and assuming replacement of the Bridge is imminent, Buckland & Taylor recommended that the existing railings be repaired. Resultant action by TransLink 1. Railings on both sides of the Bridge were inspected during the 2014 summer maintenance closures to identify the extent of the repairs required. 2. Buckland and Taylor produced a Railing Inspection Report to document the findings of the inspection (see item 14). Preliminary findings indicate that approximately 40 of the 605 railing posts examined are considered a high priority for repair. 3. TransLink will proceed with all high priority repairs by replacing the necessary railing posts. 4. TransLink will continue to monitor the condition of the railing posts. An inspection of all railings is scheduled in Q2 of ICBC Collision Data Analysis Based on collision data provided by ICBC for the period between January 1, 2000 and December 31, 2013, the number of collisions per year on the Pattullo Bridge has fluctuated from year to year. These fluctuations are likely related to changes in traffic volume patterns as a result of economic conditions, safety improvements on the Bridge, and shifts in demand caused by changes in the regional road network. Since 2011, the number of annual collisions has increased. Resultant action by TransLink 1. TransLink will continue to monitor the collision patterns on the Bridge. 2. The following safety measures were implemented as part of the 2014 summer maintenance closures to improve safety on the Bridge: Speed reader boards and oversize speed limit signs were installed to raise awareness of driving speeds and to increase compliance with the speed limit; High visibility pavement markings was used to paint the lane markings to increase visibility of the lane lines during wet conditions; Reflective yellow curb paint was applied to the curbs on both sides of the Bridge to increase awareness and visibility of the curbs;

95 Pattullo Bridge Rehabilitation and Condition Monitoring Report December 7, 2015 Page 10 of 14 The crash attenuator on the north approach of the Bridge was replaced with one that is designed for higher impact speeds to reduce the severity of collisions with the concrete median barrier; A continuous system of yellow centreline delineators was installed to improve awareness of the centreline and of the horizontal curves; SLOW pavement markings were painted in advance of the horizontal curve on the south approach to warn drivers to reduce driving speeds; and, Narrow Sidewalk and Narrow Lane signs were installed to provide warnings of limited sidewalk and lane widths Pattullo Bridge Inspection Reports by the Ministry of Transportation and Infrastructure The 2014 inspection was completed in December No new concerns are raised by the inspection. Resultant action by TransLink 1. See resultant actions after item Due to the upcoming full deck rehabilitation works, Buckland & Taylor confirmed that a condition inspection was not required for However, with a scaled rehabilitation strategy intended to maintain safety and functionality for a 6 to 7 year period, the annual condition inspection will resume. 14. Pattullo Bridge Railing Inspection by Buckland & Taylor In addition to the inspections described in item 11, the railings on both sides of the Pattullo Bridge were again inspected during the summer closures of 2014 due to concerns related to its structural integrity caused by corrosion and damage. Numerous issues were identified and a severity scale was developed for prioritizing repairs. The initial inspection identified approximately 40 posts in need for repair/replacement. Due to the upcoming rehabilitation works, TransLink requested for Buckland & Taylor to conduct further inspections to identify the most critical railing components that require immediate replacement/repair. Based on further inspections conducted in Q1 2015, approximately 12 posts were identified. Resultant action by TransLink 1. TransLink commenced the railing repair/replacement of work in Q2 of The work consists of repairing/replacing approximately 12 railing posts and was completed in June Buckland and Taylor will continue to monitor the condition of the pedestrian railings. An inspection of all railings is scheduled in Q2 of Winter Monitoring Summary The 2014 winter survey was completed in January 2015, and a report was received from Northwest Hydraulic Consultants in Q1, No new concerns were raised by the survey.

96 Pattullo Bridge Rehabilitation and Condition Monitoring Report December 7, 2015 Page 11 of 14 Resultant action by TransLink 1. While there is no indication of riprap movement and that the existing scour protection remains effective, TransLink will discuss with Northwest Hydraulic Consultants about securing emergency riprap supply. 2. See resultant actions after item Pattullo Bridge Road Safety Assessment by G.Ho Engineering Consultants G. Ho Engineering Consultants was retained to complete a road safety assessment of the Pattullo Bridge to identify whether any additional road safety improvements may be implemented to improve the safety performance of the Bridge. The review findings confirmed that TransLink has been diligent in improving the safety of the Bridge through various improvements implemented over the past ten years. The review also confirmed several known safety concerns (such as the risk of head-on collisions due to the lack of barriers) that cannot be addressed without widening the bridge deck or reducing the number of travel lanes. While all of the identified safety concerns can be fully addressed by the Bridge Replacement Project, several improvement options (such as adding median barriers and reducing the number of travel lanes) were identified for further consideration if the Bridge Replacement Project does not proceed. Resultant action by TransLink 1. The viability of functional safety improvements such as roadside barriers and railings will be investigated as part of the detailed design of the deck rehabilitation works in 2016 and If the Bridge Replacement Project does not proceed, TransLink will consider safety improvement options suggested by the Safety Assessment to further mitigate safety risks on the Bridge. 17. Operations and Maintenance Review for the Pattullo Bridge (In Progress) Associated Engineering is currently conducting a review of TransLink s operations and maintenance procedures for the Pattullo Bridge. According to the preliminary findings of the review, the existing inspection and assessment practices are considered appropriate. The recommendations from the report will be available in Q Pattullo Bridge Emergency Response Plan (see Item 21) An Emergency Response Plan was being prepared in 2015 to guide immediate actions in the event that a rare occurrence (such as an earthquake) forces the bridge to be closed for repairs or inspections. This has now been included under Item Freshet Monitoring Summary by Northwest Hydraulic Consultants

97 Pattullo Bridge Rehabilitation and Condition Monitoring Report December 7, 2015 Page 12 of 14 The 2015 Freshet monitoring survey was performed the week of June 1, The survey found that no additional pier stabilization actions are required at this time, and that continued monitoring is recommended. NHC also suggested that the bi-annual surveys be replaced or supplemented with real-time scouring monitoring from Pier 2 to Pier 5. Resultant action by TransLink 1. See resultant action after item Buckland & Taylor investigated the use of real-time scour monitoring and did not recommend installing such a system since the scour around the piers has been relatively stable for a number of years and the short remaining service life of the existing bridge. 3. The 2015 winter monitoring survey will be conducted in December A report documenting findings and recommendations of the survey is expected in Q Pattullo Bridge Deck Condition Monitoring Field Review Reports by Levelton Consultants (In Progress) As short-term closures to perform spot repairs to the bridge deck were not conducted during the summer of 2015, Levelton has started to conduct walkover inspections of the deck during nightly lane closures as well as ground level and catwalk level inspections of the underside of the deck at two-week intervals to ensure that the deck is functional and safe until rehabilitation work commence. To keep TransLink informed on the condition of newly formed potholes (size and severity), field review reports are currently being submitted by Levelton at approximately two-week intervals. Resultant action by TransLink 1. TransLink continues repairing any potholes that form on the bridge. 2. Levelton to continue monitoring the severity of potholes on the Bridge. 3. Recent field inspections have identified approximately 4 locations on the deck that require immediate repairs. Most of the areas of deterioration are found along the wheel path of the deck and range from pothole formation and breaking of the asphaltic concrete to spalling on the underside of the deck. 4. To undertake repairs identified in item 3, TransLink, in consultation with Levelton and Mainroad Contracting, closed the Bridge for approximately 40 hours from October 16 to October 18. The following activities were undertaken: Removal of asphalt pavement overlay; Removal of concrete at spalled or delaminated areas; Preparation of the concrete substrate surface; Removal of corrosion residue from rebar; Replacement or augmentation of deteriorated rebar; Reinstate of a cementitious repair material; and, Repave of the asphalt pavement overlay.

98 Pattullo Bridge Rehabilitation and Condition Monitoring Report December 7, 2015 Page 13 of In addition to performing the above repairs, Levelton also completed a delamination mapping analysis to inform the ongoing rehabilitation design. This exercise will reduce uncertainties and risks associated with the quantity estimates for the deck rehabilitation works in May Pattullo Bridge Wind Monitoring & Seismic Warning Systems (Request for SPA) An ad hoc Specific Project Approval (SPA) request was prepared and submitted in Q to undertake a feasibility study for advance warning and monitoring systems that can be implemented to detect wind and seismic events. The scope of work includes developing the necessary protocols to close the bridge ahead of impending wind and seismic events. A wind warning system would monitor upcoming wind storms and measure wind speeds at the bridge, with a closure triggered if threshold winds are expected. A seismic warning system would sense an earthquake in progress but prior to the damaging ground waves reaching the bridge. Up to one minute of warning time may be available to close the bridge prior to the earthquake waves impacting the structure. Subject to budgetary approval (expected in December 2015), the study will proceed and conclude in The recommendations will then be reviewed and an implementation plan developed as needed. Other ongoing inspections and actions Pieces of spalled concrete have been found on the surface of the catwalk, ranging in size from 5mm to 50mm. The recent introduction of warning signs under the south approach structure in Surrey and the installation of debris containment netting under spans crossing other transportation routes will mitigate the risk. The netting installation was completed in June Since July 2013, Mainroad Contracting Ltd. has been performing weekly inspections of the bridge deck asphalt surfacing to detect the formation of potholes. Recent potholes that have been identified were repaired as part of the deck repatching/repaving work that was undertaken during the summer of When new potholes are identified, they are repaired in accordance with the terms of the bridge maintenance contract. Since Q2 2015, Mainroad has been working with Levelton Consultants Ltd. on conducting regular deck inspections and repairs as needed throughout 2015 (see item 20). In July 2015, Levelton started to conduct walkover inspections of the deck during nightly lane closures as well as ground level and catwalk level inspections of the underside of the deck at two-week intervals to ensure that the deck is functional and safe until rehabilitation work commences. To keep TransLink informed on the condition of newly formed potholes (size and

99 Pattullo Bridge Rehabilitation and Condition Monitoring Report December 7, 2015 Page 14 of 14 severity), field review reports are currently being submitted by Levelton at approximately twoweek intervals. CONCLUSION TransLink will continue to closely monitor and inspect the condition of the Bridge, and maintain the Bridge accordingly.

100 To: From: Board of Directors Fred Cummings, Vice President, Infrastructure Management and Engineering Date: December 9, 2015 Subject: Pattullo Bridge Replacement Project - Update PURPOSE The following is an update on the Pattullo Bridge Replacement Project. UPDATE In September 2015, the TransLink Board of Directors instructed Management to prepare budgets for 2016 and onwards to include $20 million to undertake, in an expedited manner, all project development activities in readiness for the issuance of procurement documents for the Pattullo Bridge replacement project, consistent with the replacement bridge described in the 2014 Mayors Council Vision; and to continue negotiating with the Federal and Provincial governments to secure up to two-thirds senior government funding for the Pattullo Bridge replacement project. The Pattullo Bridge Replacement project has been screened in for federal funding with P3 Canada. The screen in step allows the project team to work with P3 Canada staff to develop a business case to be submitted in March The business case will facilitate deliberation on an investment decision from the federal government. Project development work is underway to develop a project business case. Working with Partnerships BC as strategic advisors for the P3 process, the project retained KPMG to serve as financial advisor. In addition, the project has retained an environmental advisor, Hatfield Consultants, to advance the environmental strategy and environmental review requirements. Further to the results of the federal election, management is tracking any upcoming changes to federal funding program requirements, and staying in contact with federal government officials. Management is also working with Ministry of Transportation officials to define the specific Provincial Business Case requirements, which is an important step to secure the one-third funding from the Province. The progress made since September 2015 keeps the project on-track for a business case submission to P3 Canada in March 2016; a business case submission to the Province in 2016; achieving procurement-readiness by Q3 2017; and subject to securing the regional one-third of funding consistent with the Mayors Vision, opening a new bridge by 2022.

101 Pattullo Bridge Replacement Project December 9, 2015 Page 2 of 2 BACKGROUND CONTEXT The existing Pattullo Bridge is subject to a number of well-documented challenges. A rehabilitation project is underway to mitigate some of the most critical challenges. The rehabilitation of the bridge deck will start in Spring 2016, necessitating the closure of two traffic lanes for prolonged periods. Recent information from the rehabilitation design process has revealed that the existing structure does not meet wind load design standards for a bridge built today; and that the cost for a more thorough rehabilitation would be up to $20 million higher than the $100 million initially budgeted by TransLink. The rehabilitation design process also revealed that upgrading the bridge to withstand a 1:475 year seismic event (the guideline used for similar major bridges) is technically extremely challenging and may be financially prohibitive, at a cost of $250 million or more (rather than the previously estimated $199 million). Please refer to the Pattullo Bridge Rehabilitation Report for more detailed information about the existing bridge and the rehabilitation project. In light of that information, Management does not consider the existing bridge as viable, from a risk and financial management perspective, beyond a ten year time frame. It is therefore essential at this time to continue advancing the Pattullo Bridge replacement project. This represents TransLink s most urgent major infrastructure risk and decision. The alternative would be to plan for the closure of this crossing within the next ten years.

102 To: From: Board of Directors Fred Cummings, Vice President, Infrastructure Management and Engineering Date: December 9, 2015 Subject: Rapid Transit Projects Update PURPOSE This memo provides an update on project development activities for the Surrey Rapid Transit and Broadway Rapid Transit projects. Information highlighted in yellow indicates content that has been changed from the last update. BACKGROUND The Mayors Council on Regional Transportation approved Regional Transportation Investment: A Vision for Metro Vancouver ( the Vision ) in June 2014 and reconfirmed support of this Vision in July 2015 following the plebiscite outcome. TransLink is continuing to advance the planning and technical work required to better define the major investments identified in this vision, including rapid transit expansion projects in Surrey and the Broadway corridor. Previous Board reports (June, July, August, and September 2015) outlined the work needed and underway to develop project business cases for submittal to senior government funding partners. While uncertainty remains about the regional funding source, in August 2015 the Board approved budgets to continue the planning and project definition work to help secure senior government funding. This memo summarizes ongoing progress. UPDATE TransLink submitted funding applications to Round 7 of the P3 Canada Fund in June 2015 and now both the Surrey Rapid Transit and Broadway Rapid Transit Projects have been screened-in. This will now require a business case submittal and advancing design work to reach +/- 15% cost confidence. Both projects have contracts in place to complete this work. P3 Canada informed TransLink that these projects are considered a good fit for the New Public Transit Fund. That program s parameters and timelines are still in development, but could require a business case submittal in TransLink is therefore proceeding with technical work to anticipate this timeline. To meet the requirements of the federal business case, the work now underway in close collaboration with the municipalities and Partnerships BC includes:

103 Rapid Transit Project Update December 9, 2015 Page 2 of 2 Technical studies and reference case design Project benefit and cost estimation (+/-15% confidence level) Demand forecasting and modelling to quantify project benefits Initial environmental assessments and stakeholder engagement Financial and procurement options analysis Management is also working closely with Partnerships BC and the Ministry of Transportation and Infrastructure to achieve alignment with the Province s business case requirements, which is an important step towards securing the Provincial share of the project costs. The work underway will assist in developing detailed business cases to form the basis for senior government funding through the new Public Transit fund. The framework for the new Public Transit Fund has not been announced yet, and Management is tracking changes as a result of the federal election outcome. Schedules and work programs may need to be adjusted based on changes to federal programs, once announced.

104 To: From: Board of Directors Fred Cummings, Vice President, Infrastructure Management and Engineering Division Date: December 1, 2015 Subject: Major Road Network (MRN) Amendment Bylaw PROPOSED RESOLUTIONS: The TransLink Board of Directors: 1. Introduces and reads a First, Second, and Third time the South Coast British Columbia Transportation Authority Major Road Network Bylaw Number , attached to the report dated December 1, 2015 titled Major Road Network (MRN) Amendment Bylaw as Appendix A; and 2. Reconsiders, passes, and adopts South Coast British Columbia Transportation Authority Major Road Network Bylaw Number PURPOSE The purpose of this report is to seek the Board s approval to replace the South Coast British Columbia Transportation Authority Major Road Network Bylaw Number with a new by-law. Management recommends that the Board review and amend the Major Road Network (MRN), as described in this report, by approving the attached MRN bylaw Number The purpose of this bylaw is to reflect the proposed addition to the MRN, of a section of the Highway 91 Connector in the Corporation of Delta, associated with completion of the South Fraser Perimeter Road (SFPR) project, and to authorize $21,000 additional annual TransLink funding for this addition to the MRN from the Base Plan Contingency amount for road maintenance. BACKGROUND The Major Road Network (MRN) was established in 1998 through the work of regional and municipal staff. Various road sections proposed by municipalities for inclusion in the MRN were reviewed by the Major Roads and Transportation Advisory Committee (MRTAC). The TransLink Board originally adopted the MRN through Greater Vancouver Transportation Authority Major Road Network Bylaw No , and Bylaw No Since then, there have been a number of amendments to the MRN enacted via bylaw.

105 Major Road Network Amendment Bylaw December 1, 2015 Page 2 of 4 DISCUSSION Upon completion of the SFPR project, the Province has undertaken a review of the jurisdiction of the roadways constructed as part of the SFPR project, including the Highway 91 Connector. The Province devolved the noted section on Highway 91 Connector to Corporation of Delta as part of SFPR project completion. This change has been updated and published on the BC Ministry of Transportation and Infrastructure s jurisdictional atlas (refer to Council Report in Appendix C). The section on Highway 91 Connector, from River Road to MoTI s jurisdiction, including the new at-grade BNSF rail crossing, is within Delta s jurisdiction. On August 6, 2015, Corporation of Delta Council approved municipal staff to make an application to TransLink to add the section on Highway 91 Connector, from River Road to MoTI s jurisdiction, including the portion over the BNSF Railway Company s rail crossing, to the MRN. On August 31, 2015, the Corporation of Delta submitted a formal request (Appendix C) to add the following road segment to MRN in Corporation of Delta, as shown in Figure 1: Highway 91 Connector from River Road to Ministry of Transportation and Infrastructure s (MoTI) jurisdiction 1. Highway 91 Connector within the Corporation of Delta provides a connection to Highway 17, Highway 91 and River Road which is part of the MRN. Highway 91 Connector carries high truck traffic and has a regional function connecting the Tilbury and Sunbury areas. The requested segment satisfies the MRN eligibility criteria, as illustrated in Tables 1a and 1b. Table 1a: Proposed Road Segment for MRN MRN Road Segment Request Corporation of Delta Road From To Total Lane-km 1 Highway 91 Connector River Road MRN Eligibility Criteria 2 (see Table 1b) (i) (ii) (iii) Actual Peak Vol in Peak Hour 2 Actual Bus Vol Actual Truck Vol 2 MoTI s jurisdiction , The lane kilometer measures shown in Table 1a have been calculated by TransLink GIS system data, and are considered accurate for budget determination. 1 The MoTI s jurisdiction is defined as 15.2m south from center of BNSF Railway.

106 Major Road Network Amendment Bylaw December 1, 2015 Page 3 of 4 2. The traffic data was obtained from Corporation of Delta. It represents the average PM peak hour traffic volume in the eastbound direction based on traffic counts collected on September 8, 2014 (Monday) to September 15, 2014 (Monday). Table 1b: MRN Eligibility Criteria MRN Eligibility Criteria Eligible 1. Provides intra-regional access to predefined regional activity centres AND 2. Carries: i. Minimum of 70% of trips longer than 10 km in the peak hour and peak direction AND total peak hour peak direction traffic greater than 800 vehicles per hour OR ii. Minimum of 10 through buses in the peak hour peak direction OR iii. Minimum of 800 trucks per day; AND 3. Meets an overall check for reasonableness and completeness. Link to Corporate Strategic Priorities The Mayor s Council Strategic Framework outlines TransLink s commitment to maintaining and investing in the regional road network to improve safety, continuity, local access and goods movement. The road segment proposed by the Corporation of Delta is part of a direct route that performs a regional function and carries high truck volume. Risk Assessment There is no risk in terms of precedent for inclusion of this road in the MRN because the requested segment meets the eligibility criteria. Financial Implications Once this new bylaw comes into effect Operation, Maintenance and Rehabilitation (OMR) Program funding to the Corporation of Delta will be increased based on their net change in MRN lane-km, as summarized in Table 2. Furthermore, the adjustment date will coincide with the Board approval date of December 9, Table 2: Municipal Major Road Network Change for Bylaw Municipality Road Section From To Approx. Lane-km Corporation of Highway 91 MoTI s River Road +1.1 Delta Connector jurisdiction The additional cost to TransLink as a result of the road addition is already accounted for in Base Plan contingency amounts for road maintenance. Using the 2015 OMR unit rate of $19,460, the annual cost to TransLink is approximately $21,000, which comprises of $12,000 of annual Operation, Maintenance and General Rehabilitation (O&M) funding allocation, and $9,000 of annual Pavement Rehabilitation (R) funding allocation. TransLink would begin payment to the Corporation of Delta effective the Board approval date (December 9, 2015). The budget impact

107 Major Road Network Amendment Bylaw December 1, 2015 Page 4 of 4 in 2015 would be approximately $1,400 (approximately $800 in O&M funding and $600 in R funding). The financial impacts have already been budgeted for in the 2015 Base Plan and Outlook. Administrative adjustments will be performed to allocate the future costs between O&M and R budgets. Sustainability Implications The recommendation to add this road segment to the MRN is in accordance with the TransLink Sustainability policy direction as stated below: Provide a diversity of transportation services and pursue operation and design innovations that maximize the benefits to society, the economy, and the environment while minimizing adverse impacts, locally and globally. Develop a resilient transportation system that can adapt to the region s changing needs and foster our capacity to respond in challenging or exceptional situations. Communication Implications Minimal communication implications are expected, because: Addition of the noted section on Highway 91 Connector to the MRN provides regional network connection to Tilbury and Sunbury areas with Highway 17 and Highway 91, and meets an overall check for reasonableness and completeness of the MRN. Analysis of Alternatives The TransLink Board could deny the request from the Corporation of Delta. However, the road addition meets the MRN eligibility criteria and provides the continuity of the MRN. Also the financial impact is budgeted through contingencies. Management does not support this Alternative. CONCLUSION This report recommends approval of South Coast British Columbia Transportation Authority Bylaw Number to add an MRN road segment in the Corporation of Delta to maintain continuity. The change results in an overall increase of approximately 1.1 lane-km in the MRN, with an associated increase in OMR Program funding costs of approximately $21,000 on an annualized basis, based on the 2015 OMR funding rate of $19,460 per lane-km. The financial impacts have already been budgeted for in the 2015 Base Plan and Outlook. Attachments Appendix A: Appendix B: Appendix C: Figure 1: South Coast British Columbia Transportation Authority Major Road Network Bylaw Number , including Schedule A Effective changes to Schedule A of the Major Road Network Bylaw August 31, 2015 letter from the Corporation of Delta to TransLink MRN Change Related to Highway 91 Connector

108 APPENDIX A SOUTH COAST BRITISH COLUMBIA TRANSPORTATION AUTHORITY MAJOR ROAD NETWORK BYLAW NUMBER A bylaw to replace the South Coast British Columbia Transportation Authority Major Road Network Bylaw Number WHEREAS the Board of the South Coast British Columbia Transportation Authority has adopted South Coast British Columbia Transportation Authority Major Road Network Bylaw Number , which designates the roads forming the Major Road Network; AND WHEREAS the Board of the South Coast British Columbia Transportation Authority wishes to add and delete road segments to and from the Major Road Network and replace South Coast British Columbia Transportation Authority Major Road Network Bylaw Number with a new bylaw; NOW THEREFORE the Board of the South Coast British Columbia Transportation Authority enacts as follows: 1. South Coast British Columbia Transportation Authority Major Road Network Bylaw Number is hereby replaced by this Bylaw. 2. The attached Schedule A (Major Road Network) is part of this Bylaw. 3. This bylaw shall be cited as South Coast British Columbia Transportation Authority Major Road Network Bylaw Number READ A FIRST, SECOND AND THIRD TIME this 9 th day of December, RECONSIDERED, PASSED AND FINALLY ADOPTED this 9 th day of December, Barry Forbes, Chair Gigi Chen-Kuo, General Counsel and Corporate Secretary

109 SCHEDULE "A" Major Road Network ROAD SEGMENT FROM TO Anmore 1 Avenue Sunnyside Road Port Moody/Anmore border Bedwell Bay Road Port Moody/Anmore border Port Moody/Anmore border Sunnyside Road 1 Avenue park access road at Buntzen Lake recreation area East Road Sunnyside Road Port Moody/Anmore border Belcarra Bedwell Bay Road Port Moody/Belcarra border Midden Road Burnaby 10 Avenue Kingsway McBride Boulevard Barnet Road Inlet Drive (near Bayview Drive) Port Moody/Burnaby border Boundary Road Hastings Street Marine Way Broadway Gaglardi Way west of North Road Burnaby Mountain Parkway Hastings Street (near Dalla-Tina Avenue) Gaglardi Way Byrne Road Marine Way Meadow Avenue Canada Way Boundary Road (Vancouver/Burnaby border) west of Willingdon Avenue Canada Way east of Willingdon Avenue west of Kensington Avenue Canada Way east of Kensington Avenue 10 Avenue (New Westminster/Burnaby border) Gaglardi Way Burnaby Mountain Parkway north of Highway 1 (south abutment of Stormont Avenue overpass) Griffiths Drive Kingsway 10 Avenue (New Westminster/Burnaby border) Hastings Street Boundary Road (Vancouver/Burnaby border) Burnaby Mountain Parkway (near Dalla-Tina Avenue) Inlet Drive Hastings Street Barnet Road (near Bayview Drive) Kensington Avenue Lougheed Highway north of Sprott Street Kingsway Boundary Road (Vancouver/Burnaby border) 10 Avenue (New Westminster/Burnaby border) Lougheed Highway Boundary Road (Vancouver/Burnaby border) west of Austin Road Lougheed Highway (eastbound) east of Austin Road west of North Road Marine Way Boundary Road (Vancouver/Burnaby border) New Westminster/Burnaby border (west of Queensborough Bridge) North Road south of Lougheed Highway New Westminster/Burnaby border Southridge Drive Griffiths Drive Meadow Avenue Willingdon Avenue Hastings Street north of Highway 1 (near Still Creek) Willingdon Avenue south of Canada Way Kingsway Coquitlam Austin Avenue North Road (Burnaby/Coquitlam border) Mariner Way Barnet Highway Port Moody/Coquitlam border Lougheed Highway / Pinetree Way Brunette Avenue north of Highway 1 (near Bernatchy Street) Lougheed Highway Clarke Road Port Moody/Coquitlam border (Ingersoll Avenue) North Road (Burnaby/Coquitlam border) Coast Meridian Road David Avenue Victoria Drive (Port Coquitlam/Coquitam border) Como Lake Avenue North Road (Burnaby/Coquitlam border) Mariner Way David Avenue Pipeline Road Coast Meridian Road Guildford Way Port Moody/Coquitlam border Pinetree Way King Edward Street Lougheed Highway United Boulevard Lougheed Highway North Road (Burnaby/Coquitlam border) east of Schoolhouse Street Lougheed Highway West of Colony Farm Road Westwood Street (Port Coquitlam/Coquitlam border) Mariner Way Barnet Highway United Boulevard North Road Clarke Road (near Cottonwoood Avenue) New Westminster/Coquitlam border Pinetree Way Guildford Way Barnet Highway/Lougheed Highway Pitt River Road Lougheed Highway Port Coquitlam/Coquitlam border (Coquitlam River) United Boulevard King Edward Street south of Mary Hill By-Pass United Boulevard north of Lougheed Highway Mariner Way Delta 56 Street south of Highway 17 Canada / United States border 64 Avenue / Kittson Parkway east of Highway 91 Scott Road/120 Street (Surrey/Delta border) 72 Avenue east of Highway 91 Scott Road/120 Street (Surrey/Delta border) 72 Street Ladner Trunk Road Churchill Street 80 Street Ladner Trunk Road Churchill Street Churchill Street 72 Street 80 Street Highway 91 Connector River Road south of BNSF rail crossing Ladner Trunk Road east of 72 Street south of Highway 99 Ladner Trunk Road north of Highway 99 west of Highway 91 Nordel Way east of Highway 91 Scott Road/120 Street (Surrey/Delta border) River Road / 62B Street east of Highway 99 / Highway 17 west of 96 Street / Hwy 91 Connector Scott Road (120 Street) 96 Avenue (Surrey/Delta border) north of Highway 10 Langley City 200 Street south of Langley By-Pass (Highway 10) Langley Township/Langley City border 204 Street Langley Township/Langley City border (62 Avenue) Logan Avenue Fraser Highway (west) east of Langley By-Pass (Highway 10) 200 Street Fraser Highway (east) Langley By-Pass Langley Township/Langley City border Langley By-Pass east of Glover Road / Highway 10 Fraser Highway Mufford Crescent Langley Township/Langley City border (62 Avenue) west of Glover Road Page 1 of 4 15/12/2015

110 SCHEDULE "A" Major Road Network ROAD SEGMENT FROM TO Langley Township 16 Avenue Surrey/Langley Township border (196 Street) west of Highway Avenue east of Highway 13 Abbotsford/Langley Township border (276 Street) 64 Avenue 196 Street (Surrey/Langley Township border) 204 Street 88 Avenue Surrey/Langley Township border (west of 196A Street) west of 200 Street (Highway 1) 88 Avenue east of 200 Street (Highway 1) 216 Street 96 Avenue Surrey/Langley Township border 216 Street 199A Street End of SB bridge exit ramp 200 Street 200 Street north of 88 Avenue (Highway 1) 199A Street 200 Street south of 88 Avenue (Highway 1) 62 Avenue (Langley City/Langley Township border) 200 Street Langley City/Langley Township border 16 Avenue 201 Street 200 Street Start of NB bridge entrance ramp 204 Street 62 Avenue 64 Avenue 216 Street 88 Avenue 96 Avenue 232 Street Fraser Highway Highway 10 Fraser Highway (west) 196 Street (Surrey/Langley Township/City border) west of Langley By-Pass (Highway 10) Fraser Highway (east) Langley City/Langley Township border west of Highway 13 Fraser Highway (east) east of Highway 13 Abbotsford/Langley Township border (276 Street) Mufford Crescent 204 Street 62 Avenue Mufford Crescent 62 Avenue west of Glover Road Maple Ridge 128 Avenue 210 Street Abernethy Way 132 Avenue 232 Street Fern Crescent 232 Street 132 Avenue Dewdney Trunk Road Abernethy Way 128 Avenue 232 Street Dewdney Trunk Road east of Lougheed Highway 232 Street Fern Crescent 132 Avenue south of Golden Ears Park Gate Lougheed Highway east of Haney By-Pass (near 222 Street) west of Haney By-Pass (near 232 Street) New Westminster 10 Avenue Kingsway McBride Boulevard Boyd Street Boundary Road (Richmond/New Westminster border) Derwent Way Brunette Avenue south of Highway 1 (south abutment of BNR overpass) Columbia Street E Columbia Street Stewardson Way / 12 Street Royal Avenue Columbia Street E Brunette Avenue McBride Boulevard Derwent Way Boyd Street Annacis Island moveable bridge (north abutment) McBride Boulevard 10 Avenue (Burnaby/New Westminster border) Columbia Street E / Pattullo Bridge (north abutment) Royal Avenue Columbia Street McBride Boulevard Stewardson Way 6 Avenue Columbia Street / 12 Street North Vancouver City 3 Street Marine Drive (at Bewicke Avenue) Forbes Avenue Cotton Road Low Level Road North Vancouver District/City border Esplanade Forbes Avenue Low Level Road Forbes Avenue 3 Street Esplanade Lonsdale Avenue south of Highway 1 Esplanade Low Level Road Esplanade Cotton Road Marine Drive North Vancouver District/City border (near Mackay Road) 3 Street (at Bewicke Avenue) North Vancouver District Capilano Road south of Highway 1 Marine Drive Dollarton Highway west of bridge over Seymour River Riverside Drive (East) Main Street North Vancouver City/District border west of Mountain Highway Marine Drive West Vancouver/North Vancouver District border North Vancouver City/District border (near Mackay Road) Mountain Highway Keith Road north of Main Street Mount Seymour Parkway Seymour Creek IR Boundary Mount Seymour Road Mount Seymour Road Anne Macdonald Way Mount Seymour Parkway Riverside Drive (East) Mount Seymour Parkway Dollarton Highway Pitt Meadows Old Dewdney Trunk Road Lougheed Highway Harris Road Harris Road Old Dewdney Trunk Road Old Dewdney Trunk Road Old Dewdney Trunk Road Harris Road Sharpe Road (Pitt Meadows/Maple Ridge border) Port Coquitlam Lougheed Highway Coquitlam/Port Coquitlam border (Westwood Street) east of Ottawa Street Coast Meridian Road Kingsway Avenue Victoria Drive (Coquitlam/Port Coquitlam border) Broadway Street Mary Hill Bypass Kingsway Avenue Page 2 of 4 15/12/2015

111 SCHEDULE "A" Major Road Network ROAD SEGMENT FROM TO Port Moody 1 Avenue Bedwell Bay Road / Sunnyside Road Anmore/Port Moody border 1 Avenue Anmore/Port Moody border Ioco Road Barnet Highway (west) Burnaby/Port Moody border St. Johns Street (at Clarke Road / Albert Street) Barnet Highway (east) St. Johns Street (at Dewdney Trunk Road) Coquitlam / Port Moody border Bedwell Bay Road Belcarra/Port Moody border Anmore/Port Moody border Bedwell Bay Road Anmore/Port Moody border 1 Avenue Clarke Road St. Johns Street Coquitlam/Port Moody border (Ingersoll Avenue) Clarke Street Barnet Highway Moody Street Guildford Way Ioco Road Coquitlam/Port Moody border Ioco Road 1 Avenue Barnet Highway (east) Moody Street Murray Street St. Johns Street Murray Street Moody Street Ioco Road St. Johns Street Clarke Road (at Albert Street / Barnet Highway (west)) Barnet Highway (east) (at Dewdney Trunk Road) Richmond No. 2 Road Inglis Drive Steveston Highway No. 3 Road south of Sea Island Way Westminster Highway Alderbridge Way No. 3 Road west of Highway 91 (near Shell Road) Bridgeport Road St. Edwards Drive Knight Street Gilbert Road Dinsmore Bridge (south abutment) Westminster Highway Knight Street Knight Street Bridge (south abutment) north of Highway 91 Knight Street south of Highway 91 Westminster Highway Steveston Highway No. 2 Road west of Highway 99 Westminster Highway No. 2 Road west of Highway 99 Westminster Highway east of Highway 99 Knight Street Westminster Highway east of Nelson Road south of Highway 91 Westminster Highway north of Highway 91 New Westminster/Richmond border (Boundary Road) Surrey 16 Avenue 152 Street 160 Street (White Rock/Surrey border) 16 Avenue 160 St (White Rock/Surrey border) west of Highway 15 (176 Street) 16 Avenue east of Highway 15 (176 Street) Langley Township/Surrey border (196 Street) 64 Avenue Scott Road/120 Street (Delta/Surrey border) west of Highway 15 (176 Street) 64 Avenue east of Highway 15 (176 Street) Langley Township/Surrey border 88 Avenue Nordel Way west of Highway 15 (176 Street) 88 Avenue east of Highway 15 (176 Street) Langley Township/Surrey border 96 Avenue (west) Scott Road/120 Street (Delta/Surrey border) west of 176 Street 96 Avenue (east) 96 Avenue Connector Road Langley Township/Surrey border 96 Avenue Connector Road Golden Ears Bridge "mainline" 96 Avenue (east) 104 Avenue King George Highway south of Highway Avenue King George Highway Townline Diversion 152 Street south of Highway 1 (near Lincoln Drive) north of Highway 10 (56 Avenue) 152 Street south of Highway 10 (56 Avenue) 16 Avenue (White Rock / Surrey border) Fraser Highway King George Highway west of Highway 15 (176 Street) Fraser Highway east of Highway 15 (176 Street) Langley Township/Surrey border (196 Street) King George Highway Pattullo Bridge (south abutment) north of Highway 10 (56 Avenue) King George Highway south of Highway 10 (56 Avenue) north of Highway 99 King George Highway south of Highway 99 (near Crescent Road) west of Highway 99 (north of 8 Avenue) Nordel Way Scott Road/120 Street (Delta/Surrey border) 88 Avenue Scott Road King George Highway 96 Avenue (Delta/Surrey border) Scott Road (120 Street) 96 Avenue (Delta/Surrey border) north of Highway 10 Townline Diversion 108 Avenue west of 152 Street Page 3 of 4 15/12/2015

112 SCHEDULE "A" Major Road Network ROAD SEGMENT FROM TO Vancouver 1 Avenue Clark Drive Boundary Road (Burnaby/Vancouver border) 10 Avenue Blanca Street Alma Street 41 Avenue SW Marine Drive Joyce Street 70 Avenue SW Marine Drive (at Cornish Street) SW Marine Drive (between Heather and Ash Streets) Alma Street Broadway 10 Avenue Boundary Road Hastings Street Marine Way Broadway Alma Street Rupert Street Cambie Bridge North abutment (including ramps) South abutment (including ramps) Cambie Street Cambie Bridge (south abutment) SW Marine Drive Clark Drive Hastings Street Knight Street Cordova Diversion East of Hawks Avenue Powell Street Georgia Street Highway 99/1A (near Chilco Street) Georgia Viaduct Georgia Viaduct Georgia Street Main Street Grandview Highway Nanaimo Street Boundary Road (Burnaby/Vancouver border) Granville Bridge North abutment (including ramps) South abutment (including ramps) Granville Street Granville Bridge (south abutment) SW Marine Drive Hastings Street Howe Street Boundary Road (Burnaby/Vancouver border) Howe Street Hastings Street Granville Bridge Joyce Street 41 Avenue Kingsway Kingsway Main Street Boundary Road (Burnaby/Vancouver border) Knight Street Clark Drive Knight Street Bridge (north abutment) Lougheed Highway Rupert Street Boundary Road (Burnaby/Vancouver border) Main Street Georgia Viaduct Kingsway SW Marine Drive Camosun Street 70 Avenue (at Cornish Street) SW Marine Drive Granville Street Ontario Street SE Marine Drive Ontario Street Marine Way Marine Way SE Marine Drive Boundary Road (Burnaby/Vancouver border) McGill Street Nanaimo Street west of Highway 1 (near Bridgeway Street) Nanaimo Street McGill Street Hastings Street Nanaimo Street Broadway Grandview Highway Nelson Street Howe Street Cambie Bridge Oak Street Broadway Highway 99 (near 71 Avenue) Powell Street East of Hawks Avenue West of Clark Drive Seymour Street Granville Bridge Hastings Street Smithe Street Cambie Bridge Howe Street West Vancouver Marine Drive 21 Street Highway 99/1A (near Taylor Way) White Rock North Bluff Road Johnston Road Stayte Road (Surrey/White Rock Border) TransLink-Owned Assets Golden Ears Way, incl. Golden Ears Bridge east of 176 Street (Surrey) 210 Street (Maple Ridge) Knight Street Bridge North abutment (Vancouver) South abutment (Richmond) Pattullo Bridge North abutment (New Westminster) South abutment (Surrey) Westham Island Bridge West Abutment (Westham Island) East Abutment (Delta) Page 4 of 4 15/12/2015

113 Appendix B -Effective changes to Schedule A of the Major Road Network Bylaw SCHEDULE "A" Major Road Network ROAD SEGMENT FROM TO Anmore 1 Avenue Sunnyside Road Port Moody/Anmore border Bedwell Bay Road Port Moody/Anmore border Port Moody/Anmore border Sunnyside Road 1 Avenue park access road at Buntzen Lake recreation area East Road Sunnyside Road Port Moody/Anmore border Belcarra Bedwell Bay Road Port Moody/Belcarra border Midden Road Burnaby 10 Avenue Kingsway McBride Boulevard Barnet Road Inlet Drive (near Bayview Drive) Port Moody/Burnaby border Boundary Road Hastings Street Marine Way Broadway Gaglardi Way west of North Road Burnaby Mountain Parkway Hastings Street (near Dalla-Tina Avenue) Gaglardi Way Byrne Road Marine Way Meadow Avenue Canada Way Boundary Road (Vancouver/Burnaby border) west of Willingdon Avenue Canada Way east of Willingdon Avenue west of Kensington Avenue Canada Way east of Kensington Avenue 10 Avenue (New Westminster/Burnaby border) Gaglardi Way Burnaby Mountain Parkway north of Highway 1 (south abutment of Stormont Avenue overpass) Griffiths Drive Kingsway 10 Avenue (New Westminster/Burnaby border) Hastings Street Boundary Road (Vancouver/Burnaby border) Burnaby Mountain Parkway (near Dalla-Tina Avenue) Inlet Drive Hastings Street Barnet Road (near Bayview Drive) Kensington Avenue Lougheed Highway north of Sprott Street Kingsway Boundary Road (Vancouver/Burnaby border) 10 Avenue (New Westminster/Burnaby border) Lougheed Highway Boundary Road (Vancouver/Burnaby border) west of Austin Road Lougheed Highway (eastbound) east of Austin Road west of North Road Marine Way Boundary Road (Vancouver/Burnaby border) New Westminster/Burnaby border (west of Queensborough Bridge) North Road south of Lougheed Highway New Westminster/Burnaby border Southridge Drive Griffiths Drive Meadow Avenue Willingdon Avenue Hastings Street north of Highway 1 (near Still Creek) Willingdon Avenue south of Canada Way Kingsway Coquitlam Austin Avenue North Road (Burnaby/Coquitlam border) Mariner Way Barnet Highway Port Moody/Coquitlam border Lougheed Highway / Pinetree Way Brunette Avenue north of Highway 1 (near Bernatchy Street) Lougheed Highway Clarke Road Port Moody/Coquitlam border (Ingersoll Avenue) North Road (Burnaby/Coquitlam border) Coast Meridian Road David Avenue Victoria Drive (Port Coquitlam/Coquitam border) Como Lake Avenue North Road (Burnaby/Coquitlam border) Mariner Way David Avenue Pipeline Road Coast Meridian Road Guildford Way Port Moody/Coquitlam border Pinetree Way King Edward Street Lougheed Highway United Boulevard Lougheed Highway North Road (Burnaby/Coquitlam border) east of Schoolhouse Street Lougheed Highway West of Colony Farm Road Westwood Street (Port Coquitlam/Coquitlam border) Mariner Way Barnet Highway United Boulevard North Road Clarke Road (near Cottonwoood Avenue) New Westminster/Coquitlam border Pinetree Way Guildford Way Barnet Highway/Lougheed Highway Pitt River Road Lougheed Highway Port Coquitlam/Coquitlam border (Coquitlam River) United Boulevard King Edward Street south of Mary Hill By-Pass United Boulevard north of Lougheed Highway Mariner Way Delta 56 Street south of Highway 17 Canada / United States border 64 Avenue / Kittson Parkway east of Highway 91 Scott Road/120 Street (Surrey/Delta border) 72 Avenue east of Highway 91 Scott Road/120 Street (Surrey/Delta border) 72 Street Ladner Trunk Road Churchill Street 80 Street Ladner Trunk Road Churchill Street Churchill Street 72 Street 80 Street Highway 91 Connector River Road south of BNSF rail crossing Ladner Trunk Road east of 72 Street south of Highway 99 Ladner Trunk Road north of Highway 99 west of Highway 91 Nordel Way east of Highway 91 Scott Road/120 Street (Surrey/Delta border) River Road / 62B Street east of Highway 99 / Highway 17 west of 96 Street / Hwy 91 Connector Scott Road (120 Street) 96 Avenue (Surrey/Delta border) north of Highway 10 Langley City 200 Street south of Langley By-Pass (Highway 10) Langley Township/Langley City border 204 Street Langley Township/Langley City border (62 Avenue) Logan Avenue Fraser Highway (west) east of Langley By-Pass (Highway 10) 200 Street Fraser Highway (east) Langley By-Pass Langley Township/Langley City border Langley By-Pass east of Glover Road / Highway 10 Fraser Highway Mufford Crescent Langley Township/Langley City border (62 Avenue) west of Glover Road Page 1 of 4 15/12/2015

114 Appendix B -Effective changes to Schedule A of the Major Road Network Bylaw SCHEDULE "A" Major Road Network ROAD SEGMENT FROM TO Langley Township 16 Avenue Surrey/Langley Township border (196 Street) west of Highway Avenue east of Highway 13 Abbotsford/Langley Township border (276 Street) 64 Avenue 196 Street (Surrey/Langley Township border) 204 Street 88 Avenue Surrey/Langley Township border (west of 196A Street) west of 200 Street (Highway 1) 88 Avenue east of 200 Street (Highway 1) 216 Street 96 Avenue Surrey/Langley Township border 216 Street 199A Street End of SB bridge exit ramp 200 Street 200 Street north of 88 Avenue (Highway 1) 199A Street 200 Street south of 88 Avenue (Highway 1) 62 Avenue (Langley City/Langley Township border) 200 Street Langley City/Langley Township border 16 Avenue 201 Street 200 Street Start of NB bridge entrance ramp 204 Street 62 Avenue 64 Avenue 216 Street 88 Avenue 96 Avenue 232 Street Fraser Highway Highway 10 Fraser Highway (west) 196 Street (Surrey/Langley Township/City border) west of Langley By-Pass (Highway 10) Fraser Highway (east) Langley City/Langley Township border west of Highway 13 Fraser Highway (east) east of Highway 13 Abbotsford/Langley Township border (276 Street) Mufford Crescent 204 Street 62 Avenue Mufford Crescent 62 Avenue west of Glover Road Maple Ridge 128 Avenue 210 Street Abernethy Way 132 Avenue 232 Street Fern Crescent 232 Street 132 Avenue Dewdney Trunk Road Abernethy Way 128 Avenue 232 Street Dewdney Trunk Road east of Lougheed Highway 232 Street Fern Crescent 132 Avenue south of Golden Ears Park Gate Lougheed Highway east of Haney By-Pass (near 222 Street) west of Haney By-Pass (near 232 Street) New Westminster 10 Avenue Kingsway McBride Boulevard Boyd Street Boundary Road (Richmond/New Westminster border) Derwent Way Brunette Avenue south of Highway 1 (south abutment of BNR overpass) Columbia Street E Columbia Street Stewardson Way / 12 Street Royal Avenue Columbia Street E Brunette Avenue McBride Boulevard Derwent Way Boyd Street Annacis Island moveable bridge (north abutment) McBride Boulevard 10 Avenue (Burnaby/New Westminster border) Columbia Street E / Pattullo Bridge (north abutment) Royal Avenue Columbia Street McBride Boulevard Stewardson Way 6 Avenue Columbia Street / 12 Street North Vancouver City 3 Street Marine Drive (at Bewicke Avenue) Forbes Avenue Cotton Road Low Level Road North Vancouver District/City border Esplanade Forbes Avenue Low Level Road Forbes Avenue 3 Street Esplanade Lonsdale Avenue south of Highway 1 Esplanade Low Level Road Esplanade Cotton Road Marine Drive North Vancouver District/City border (near Mackay Road) 3 Street (at Bewicke Avenue) North Vancouver District Capilano Road south of Highway 1 Marine Drive Dollarton Highway west of bridge over Seymour River Riverside Drive (East) Main Street North Vancouver City/District border west of Mountain Highway Marine Drive West Vancouver/North Vancouver District border North Vancouver City/District border (near Mackay Road) Mountain Highway Keith Road north of Main Street Mount Seymour Parkway Seymour Creek IR Boundary Mount Seymour Road Mount Seymour Road Anne Macdonald Way Mount Seymour Parkway Riverside Drive (East) Mount Seymour Parkway Dollarton Highway Pitt Meadows Old Dewdney Trunk Road Lougheed Highway Harris Road Harris Road Old Dewdney Trunk Road Old Dewdney Trunk Road Old Dewdney Trunk Road Harris Road Sharpe Road (Pitt Meadows/Maple Ridge border) Port Coquitlam Lougheed Highway Coquitlam/Port Coquitlam border (Westwood Street) east of Ottawa Street Coast Meridian Road Kingsway Avenue Victoria Drive (Coquitlam/Port Coquitlam border) Broadway Street Mary Hill Bypass Kingsway Avenue Page 2 of 4 15/12/2015

115 Appendix B -Effective changes to Schedule A of the Major Road Network Bylaw SCHEDULE "A" Major Road Network ROAD SEGMENT FROM TO Port Moody 1 Avenue Bedwell Bay Road / Sunnyside Road Anmore/Port Moody border 1 Avenue Anmore/Port Moody border Ioco Road Barnet Highway (west) Burnaby/Port Moody border St. Johns Street (at Clarke Road / Albert Street) Barnet Highway (east) St. Johns Street (at Dewdney Trunk Road) Coquitlam / Port Moody border Bedwell Bay Road Belcarra/Port Moody border Anmore/Port Moody border Bedwell Bay Road Anmore/Port Moody border 1 Avenue Clarke Road St. Johns Street Coquitlam/Port Moody border (Ingersoll Avenue) Clarke Street Barnet Highway Moody Street Guildford Way Ioco Road Coquitlam/Port Moody border Ioco Road 1 Avenue Barnet Highway (east) Moody Street Murray Street St. Johns Street Murray Street Moody Street Ioco Road St. Johns Street Clarke Road (at Albert Street / Barnet Highway (west)) Barnet Highway (east) (at Dewdney Trunk Road) Richmond No. 2 Road Inglis Drive Steveston Highway No. 3 Road south of Sea Island Way Westminster Highway Alderbridge Way No. 3 Road west of Highway 91 (near Shell Road) Bridgeport Road St. Edwards Drive Knight Street Gilbert Road Dinsmore Bridge (south abutment) Westminster Highway Knight Street Knight Street Bridge (south abutment) north of Highway 91 Knight Street south of Highway 91 Westminster Highway Steveston Highway No. 2 Road west of Highway 99 Westminster Highway No. 2 Road west of Highway 99 Westminster Highway east of Highway 99 Knight Street Westminster Highway east of Nelson Road south of Highway 91 Westminster Highway north of Highway 91 New Westminster/Richmond border (Boundary Road) Surrey 16 Avenue 152 Street 160 Street (White Rock/Surrey border) 16 Avenue 160 St (White Rock/Surrey border) west of Highway 15 (176 Street) 16 Avenue east of Highway 15 (176 Street) Langley Township/Surrey border (196 Street) 64 Avenue Scott Road/120 Street (Delta/Surrey border) west of Highway 15 (176 Street) 64 Avenue east of Highway 15 (176 Street) Langley Township/Surrey border 88 Avenue Nordel Way west of Highway 15 (176 Street) 88 Avenue east of Highway 15 (176 Street) Langley Township/Surrey border 96 Avenue (west) Scott Road/120 Street (Delta/Surrey border) west of 176 Street 96 Avenue (east) 96 Avenue Connector Road Langley Township/Surrey border 96 Avenue Connector Road Golden Ears Bridge "mainline" 96 Avenue (east) 104 Avenue King George Highway south of Highway Avenue King George Highway Townline Diversion 152 Street south of Highway 1 (near Lincoln Drive) north of Highway 10 (56 Avenue) 152 Street south of Highway 10 (56 Avenue) 16 Avenue (White Rock / Surrey border) Fraser Highway King George Highway west of Highway 15 (176 Street) Fraser Highway east of Highway 15 (176 Street) Langley Township/Surrey border (196 Street) King George Highway Pattullo Bridge (south abutment) north of Highway 10 (56 Avenue) King George Highway south of Highway 10 (56 Avenue) north of Highway 99 King George Highway south of Highway 99 (near Crescent Road) west of Highway 99 (north of 8 Avenue) Nordel Way Scott Road/120 Street (Delta/Surrey border) 88 Avenue Scott Road King George Highway 96 Avenue (Delta/Surrey border) Scott Road (120 Street) 96 Avenue (Delta/Surrey border) north of Highway 10 Townline Diversion 108 Avenue west of 152 Street Page 3 of 4 15/12/2015

116 Appendix B -Effective changes to Schedule A of the Major Road Network Bylaw SCHEDULE "A" Major Road Network ROAD SEGMENT FROM TO Vancouver 1 Avenue Clark Drive Boundary Road (Burnaby/Vancouver border) 10 Avenue Blanca Street Alma Street 41 Avenue SW Marine Drive Joyce Street 70 Avenue SW Marine Drive (at Cornish Street) SW Marine Drive (between Heather and Ash Streets) Alma Street Broadway 10 Avenue Boundary Road Hastings Street Marine Way Broadway Alma Street Rupert Street Cambie Bridge North abutment (including ramps) South abutment (including ramps) Cambie Street Cambie Bridge (south abutment) SW Marine Drive Clark Drive Hastings Street Knight Street Cordova Diversion East of Hawks Avenue Powell Street Georgia Street Highway 99/1A (near Chilco Street) Georgia Viaduct Georgia Viaduct Georgia Street Main Street Grandview Highway Nanaimo Street Boundary Road (Burnaby/Vancouver border) Granville Bridge North abutment (including ramps) South abutment (including ramps) Granville Street Granville Bridge (south abutment) SW Marine Drive Hastings Street Howe Street Boundary Road (Burnaby/Vancouver border) Howe Street Hastings Street Granville Bridge Joyce Street 41 Avenue Kingsway Kingsway Main Street Boundary Road (Burnaby/Vancouver border) Knight Street Clark Drive Knight Street Bridge (north abutment) Lougheed Highway Rupert Street Boundary Road (Burnaby/Vancouver border) Main Street Georgia Viaduct Kingsway SW Marine Drive Camosun Street 70 Avenue (at Cornish Street) SW Marine Drive Granville Street Ontario Street SE Marine Drive Ontario Street Marine Way Marine Way SE Marine Drive Boundary Road (Burnaby/Vancouver border) McGill Street Nanaimo Street west of Highway 1 (near Bridgeway Street) Nanaimo Street McGill Street Hastings Street Nanaimo Street Broadway Grandview Highway Nelson Street Howe Street Cambie Bridge Oak Street Broadway Highway 99 (near 71 Avenue) Powell Street East of Hawks Avenue West of Clark Drive Seymour Street Granville Bridge Hastings Street Smithe Street Cambie Bridge Howe Street West Vancouver Marine Drive 21 Street Highway 99/1A (near Taylor Way) White Rock North Bluff Road Johnston Road Stayte Road (Surrey/White Rock Border) TransLink-Owned Assets Golden Ears Way, incl. Golden Ears Bridge east of 176 Street (Surrey) 210 Street (Maple Ridge) Knight Street Bridge North abutment (Vancouver) South abutment (Richmond) Pattullo Bridge North abutment (New Westminster) South abutment (Surrey) Westham Island Bridge West Abutment (Westham Island) East Abutment (Delta) Page 4 of 4 15/12/2015

117 APPENDIX C

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