Ralph G. Hildebrand, General Manager, Legal and Legislative Services/Corporate Solicitor. Date: September 25, 2015 Meeting Date: October 1, 2015

Transcription

1 To: From: Aboriginal Relations Committee Ralph G. Hildebrand, General Manager, Legal and Legislative Services/Corporate Solicitor Date: September 25, 2015 Meeting Date: October 1, 2015 Subject: 2016 Budget and Business Plan Aboriginal Relations RECOMMENDATION That the Aboriginal Relations Committee endorse the 2016 Aboriginal Relations Business Plan and Budget as presented in the report 2016 Budget and Business Plan Aboriginal Relations, dated September 25, 2015, and forward them to the Board Budget Workshop on October 21, 2015, for consideration. PURPOSE To present the 2016 Aboriginal Relations Budget and Business Plan for consideration by the Aboriginal Relations Committee. BACKGROUND All 23 members of the Greater Vancouver Regional District participate in the Aboriginal Relations function that provides support to: corporate wide initiatives, local government interests in treaty negotiations, and responds to pan municipal First Nations issues. Aboriginal Relations is guided by the Board Strategic Plan, with a focus on the following strategic direction and goal: enhance relationships between Metro Vancouver and other orders of government, First Nations and stakeholders. The Metro Vancouver financial planning process is evolving to include a more formalized focus on the longer term. Beginning with the 2016 process, staff will be creating financial plans that will include a 5 year outlook. While these longer term plans are being developed, in this year of transition, staff will be focusing on the 2016 budget this fall and present the longer term view in the second quarter of BUDGET AND BUSINESS PLAN This report is structured to provide the budgetary highlights of Aboriginal Relations functions. The Budget Details (Attachment 1) and the Business Plan (Attachment 2) are provided for the Committee s consideration. In addition, an organizational chart is attached that shows the department structure of Aboriginal Relations within Legal and Legislative Services (Attachment 3). The 2016 Aboriginal Relations Budget and Business Plan has been prepared to respond to: the strategic direction provided by the Board; active treaty table discussions involving local government interests; and regional district initiatives that involve communication and engagement with Aboriginal communities. Operating Budget Highlights The Aboriginal Relations operating budget is proposed to increase by $2,869 (or 0.8%) in 2016 for a total operating budget of $369,724. This increase is primarily due to labour costs, which will increase by $7,369 (or 2.3%) from 2015 to Non labour costs will decrease by $4,500 (or 9.4%) in 2016.

2 The 2016 operating budget includes the following key actions: Implementing a corporate communications process for engaging with First Nations on Metro Vancouver projects and initiatives. Participating in active treaty table meetings in the region as part of the provincial negotiation teams. Completing an annual review/update of Metro Vancouver s Profile of First Nations. Hosting an annual event (e.g. workshop) involving staff of First Nation and local government administrations on a topical issue in local government First Nation relations. The program has one consulting project anticipated to be undertaken in 2016 to respond to work plan requirements. This will be hosting an annual event involving local governments and First Nations elected leaders (e.g. a Community to Community Forum): $21,900. There are no proposed staffing changes for this program. Business Plan Performance Indicators Within the Aboriginal Relations Business Plan, four performance indicators developed are being tracked. These include: Number of local government interests represented at treaty tables Number of special Aboriginal Relations events hosted by Metro Vancouver Number of bilateral meetings between Metro Vancouver and the nine area First Nations with lands Responding to external requests for information or advice related to First Nations and/or Aboriginal Relations The trend in these performance measures suggest that activities will continue at the same level or increase slightly. The 2016 Budget has been prepared to respond to the growing demands on the service and to track Metro Vancouver s involvement in Aboriginal Relations. BUDGET APPROVAL PROCESS The proposed 2016 Business Plan and Budget for Aboriginal Relations is presented to the Aboriginal Relations Committee for consideration and endorsement before being forwarded to the Board for consideration. The next steps of the budget process: The 2016 Budget and Business Plan for Aboriginal Relations will be presented at the Board Budget Workshop on October 21, The Board will consider adoption of the Budget on October 30, 2015.

3 ALTERNATIVES 1. That the Aboriginal Relations Committee endorse the 2016 Aboriginal Relations Budget and Business Plan as presented in the report 2016 Budget and Business Plan Aboriginal Relations, dated September 25, 2015, and forward to the Board Budget Workshop on October 21, 2015 for consideration. 2. That the Aboriginal Relations Committee make recommendations and endorse the 2016 Aboriginal Relations Budget and Business Plan and Budget as amended and forward to the Board Budget Workshop on October 21, 2015 for consideration. FINANCIAL IMPLICATIONS The 2016 Budget and Business Plan for Aboriginal Relations as presented in Alternative 1 comprises part of the overall Corporate Support costs. The 2016 Aboriginal Relations budget, if approved, will increase by $2,869, representing an increase of 0.8% on expenditures. The 2016 Aboriginal Relations budget of $369,724 supports the operations of all Metro Vancouver Districts and Housing Corporation and is allocated to, and supported by, the revenue sources of each. Under Alternative 2, the Committee may wish to consider recommending amendments to the operating budget. The financial implications of Alternative 2 would affect the requisitions of the other functions. SUMMARY / CONCLUSION As part of the annual budget process for 2016, Business Plans have been prepared to accompany service and Budgets in order to provide Committee and Board members with a high level overview on the role of the service, the total budget, overall staff complement, performance indicators and key actions for the coming year. Within the overall Aboriginal Relations function, operating expenditures as outlined in the 2016 Business Plan are projected to increase by $2,869 (0.8%) over The increase can be attributed to increasing labour costs. The budget for 2016 has been prepared to respond to direction provided in the Board Strategic Plan, ongoing activity at treaty tables in the region, and increasing communication and engagement activities with Aboriginal communities. Staff recommend endorsing the 2016 Budget and Business Plan as presented under Alternative 1. Attachments: Aboriginal Relations Operating Budget Detail 2. Aboriginal Relations 2016 Business Plan 3. Organizational Chart for Legal and Legislative Services

4 2016 Operating Budget Detail ATTACHMENT 1

5 ATTACHMENT 2 LEGAL AND LEGISLATIVE SERVICES Aboriginal Relations Description of services Aboriginal Relations provides information, advice and support to Metro Vancouver on First Nations interests and issues and analyses how such First Nations interests and issues may affect corporate programs, processes and projects. Aboriginal Relations also responds to pan municipal First Nation issues and represents and supports Metro Vancouver local government interests at treaty negotiation tables as well as provincial and federal venues. The annual budget for this business area for 2016 is $369,724. Strategic directions supported Board Strategic Plan: Enhance relationships between Metro Vancouver and other orders of government, First Nations and stakeholders. Performance indicators Indicator Number of local government interests represented at treaty table meetings Number of special Aboriginal Relations events hosted by Metro Vancouver (e.g. Community to Community Forums) Number of bilateral meetings between Metro Vancouver and the nine area First Nations with lands External requests for information or advice related to First Nations and/or Aboriginal Relations Historical and/or industry benchmark MV 2 year average ( ): : 0 Current performance 2016 performance objective 2014: : : : 9 12 MV 2 year average ( ): : key actions Implement a corporate communications process for engaging with First Nations on Metro Vancouver projects and initiatives. Participate in active treaty table meetings in the region as part of the provincial negotiating teams. Complete an annual review/update of Metro Vancouver s Profile of First Nations. Host an annual event involving local governments and First Nations elected leaders (e.g. a Community to Community Forum). Host an annual event (e.g. workshop) involving staff of First Nations and local government on a topical issue in local government First Nations relations.

6 Organizational Chart for Legal and Legislative Services ATTACHMENT 3

7 To: From: Climate Action Committee Roger Quan, Director, Air Quality and Climate Change Planning, Policy and Environment Department Date: September 22, 2015 Meeting Date: October 7, 2015 Subject: 2016 Budget and Business Plan Air Quality and Climate Change RECOMMENDATION That the Climate Action Committee endorse the 2016 Air Quality and Climate Change Budget and Business Plan as presented in the report 2016 Budget and Business Plan Air Quality and Climate Change dated September 22, 2015 and forward them to the Board Budget Workshop on October 21, 2015 for consideration. PURPOSE To present the 2016 Air Quality and Climate Change Budget and Business Plan for consideration by the Climate Action Committee. BACKGROUND The Air Quality and Climate Change function comprises all 23 members within Metro Vancouver and encompasses the management of air quality within the region, under authority delegated from the Provincial government within the Environmental Management Act. Services provided include the development and implementation of air quality management and climate action plans and policies, air quality bylaws and regulations, and regulation and enforcement. Supporting activities include environmental assessment, the operation of a network of air quality monitoring stations located throughout the airshed, and communications and outreach. Air Quality and Climate Change is guided by the Board Strategic Plan and the Integrated Air Quality and Greenhouse Gas Management Plan with a focus on the following strategic directions and goals: Board Strategic Plan Develop, adopt and implement a regional climate action strategy for reducing regional greenhouse gas emissions and adapting to climate change. Improve air quality by mitigating threats. Improve public understanding of the value of clean air and greenhouse gas reductions, and actions to achieve both. Integrated Air Quality and Greenhouse Gas Management Plan Goal 1 Protect public health and the environment Goal 2 Improve visual air quality Goal 3 Minimize the region's contribution to global climate change

8 2016 Budget and Business Plan Air Quality and Climate Change Climate Action Committee Meeting Date: October 7, 2015 Page 2 of 5 The Metro Vancouver financial planning process is evolving to include a more formalized focus on the longer term. Beginning with the 2016 process, staff will be creating financial plans that will include a 5 year outlook. While these longer term plans are being developed, in this year of transition, staff will be focusing on the 2016 budget this fall and present the longer term view in the second quarter of BUDGET AND BUSINESS PLAN This report is structured to provide the budgetary highlights of the Air Quality and Climate Change functions. The Budget Details (Attachment 1) and the Business Plan (Attachment 2) are provided for the Committee s consideration. In addition, organizational charts are attached that show the department structure for the Air Quality and Climate Change function within the Planning, Policy and Environment Department (Attachment 3), and the Environmental Regulation and Enforcement function within the Legal and Legislative Services Department (Attachment 4). The 2016 Air Quality and Climate Change Budget and Business Plan has been prepared to respond to the strategic direction provided by the Board. Operating Budget Highlights The Air Quality and Climate Change operating budget is proposed to increase by $ 466,004 (5.5%) in 2016 for a total operating budget of $ 9.0 million (Attachment 1). This increase is primarily due to: Additional labour costs of $203,000 driven primarily by the addition of one new full time regular position to support bylaw and regulation development, as well as two temporary auxiliary positions to support the electric vehicle campaign. A one time increase of $350,000 in 2016 for replacement of 21 gas analyzers in the ambient air quality monitoring network. Support for the existing analyzers is being discontinued by the manufacturer. This amount is proposed to be contributed from AQ reserves. Additional expenditures of $210,000 for three projects for which the Board has approved funding from the Sustainability Innovation Fund. While these projects increase the consulting budget, overall air quality and climate change consulting budgets are down by $65,000 compared to The 2016 operating budget includes the following key actions: Develop and implement integrated regional climate action strategy, including additional programs for reducing greenhouse gas emissions from prioritized business sectors, buildings and vehicles. Implement a regional approach to climate change adaptation. Implement additional energy and greenhouse gas reduction offset projects that will achieve and maintain Metro Vancouver s carbon neutral status. Develop new air quality bylaws and regulations towards goals for protection of human health and environment and continuous improvement in air quality, for Board adoption. Continue to expand implementation of Non road Diesel Engine Emission Regulation, including partnerships with other levels of government. Improve public understanding of air quality and climate change issues and initiatives, including through the preparation of the fifth annual Caring for the Air report.

9 2016 Budget and Business Plan Air Quality and Climate Change Climate Action Committee Meeting Date: October 7, 2015 Page 3 of 5 Highlights of consulting projects anticipated to be undertaken in 2016 to respond to work plan requirements within the operating budget include the following: The Smart Driving Study which seeks to explore the potential for smart on board technologies to reduce greenhouse gases and air pollution from light duty vehicles ($100,000, funded from Sustainability Innovation Fund, or SIF). Sector characterization and regulatory scan for light duty vehicles, to inform development of regulatory approaches for reducing emissions from the light duty vehicle fleet, after end of AirCare program ($30,000). Regulatory impact analysis of health/social/economic impacts from two potentially regulated sources to support regulation development, including residential wood smoke, odour, or other prioritized source sector ($50,000). Strata Energy Advisor Project. Based on the Business Energy Advisor (BEA) model and other programs offered by BC Hydro and Fortis BC, this program would support municipal energy and GHG objectives by providing Strata Energy Advisor services to local strata councils ($50,000 from SIF). Development of communications for home energy ratings. Pilot project and communications campaign on home energy labelling ($75,000, including $60,000 from SIF). Consulting assistance for preparation of the 2015 Lower Fraser Valley Emissions Inventory, which is an accounting of all sources of emissions in the region along with a 20 year forecast of emission trends, compiled every 5 years ($75,000). Proposed staffing changes are for 1.0 new full time regular (FTR) position: One new FTR Senior Policy and Planning Analyst is proposed within the air quality policy program. Organizational changes are occurring within this program area in 2015, to shift existing resources to work on the development of new air quality bylaws and regulations, in response to Board direction, actions in the Integrated Air Quality and Greenhouse Gas Management Plan and the Regional Ground Level Ozone Strategy. This new position will focus on developing not only new air quality regulations but also new regulatory approaches for greenhouse gases and energy management. Business Plan Performance Indicators Within the Air Quality and Climate Change Business Plan, 5 performance indicators have been developed and are being tracked. These include: Net corporate greenhouse gas emissions (tonnes of CO2e); Regional greenhouse gas emissions per capita (tonnes of CO2e); Number of non road diesel engines, within the region, registered for diesel particulate (DPM) emissions; Compliance with MV air quality objectives; and Total number of permits for discharges to airshed that must be managed and monitored. The trend in these performance measures suggest that Metro Vancouver continues to make progress towards being a carbon neutral organization. While reducing the corporate carbon footprint of Metro Vancouver and its members can provide a leadership example for businesses and residents in the region, the two significant challenges in the climate action portfolio are to reduce greenhouse gases in the region as a whole, and to prepare for the inevitable impacts of climate change. The Board Strategic Plan places a strong emphasis on climate action and this area is expected to be a focus of the air quality and climate change programs over the next several years.

10 2016 Budget and Business Plan Air Quality and Climate Change Climate Action Committee Meeting Date: October 7, 2015 Page 4 of 5 The conventional air quality program is well established and the performance measures show that air quality is generally good, with an observed improvement trend over the past two decades. Ambient air quality objectives have been made more stringent over time, following a principle of continuous improvement, and air quality levels have remained largely compliant with these objectives. However, there are still occasional short term exceedances of ambient air quality objectives, often contributed to by meteorological events or the transport of emissions from outside of Metro Vancouver. In recent years, air quality programs have increasingly considered human health impacts in addition to the environment. Policy research has shown that diesel particulate matter is the air contaminant of most concern from a health perspective, and the implementation of the Non road Diesel Engine Emission Regulation has resulted in steady progress to reduce impacts from the oldest, dirtiest diesel engines operating in the region. BUDGET APPROVAL PROCESS The proposed 2016 Budget and Business Plan for Air Quality and Climate Change is presented to the Climate Action Committee for consideration and endorsement before being forwarded to the Board for consideration. The next steps of the budget process are: The 2016 Budget and Business Plan for Air Quality and Climate Change will be presented at the Board Budget Workshop on October 21, The Board will consider adoption of the Budget on October 30, ALTERNATIVES 1. That the Climate Action Committee endorse the 2016 Air Quality and Climate Change Budget and Business Plan as presented in the report 2016 Budget and Business Plan Air Quality and Climate Change dated September 22, 2015 and forward them to the Board Budget Workshop on October 21, 2015 for consideration. 2. That the Climate Action Committee make recommendations and endorse the 2016 Air Quality and Climate Change Budget and Business Plan as amended and forward to the Board Budget Workshop on October 21, 2015 for consideration. FINANCIAL IMPLICATIONS The 2016 Budget and Business Plan for Air Quality and Climate Change as presented in Alternative One comprises part of the overall GVRD tax requisition. The 2016 Air Quality and Climate Change budget, If approved by the GVRD Board, is projecting a requisition of $3.8 million (a 1.6% increase from 2015.) This forms a part of the overall GVRD tax requisition of $49.8 million which is a projected increase of 5.7% over The overall GVRD requisition will increase 4.2% over 2015 after accounting for population growth in the region, which represents a $2 increase to the average household. While the GVRD tax requisition provides 41% of the revenues to cover projected expenditures for the Air Quality and Climate Change function, a number of non tax revenue sources make up the remaining 59% of the operating budget. These non tax revenue sources include: user fees from regulated sources, including both permits and regulations (42%); external revenues (5%) including partner contributions to fund the operation of the air quality monitoring network and rebates on

11 2016 Budget and Business Plan Air Quality and Climate Change Climate Action Committee Meeting Date: October 7, 2015 Page 5 of 5 the carbon taxes paid by Metro Vancouver; and contributions from reserves (12%), including the air quality reserve and the Sustainability Innovation Fund. Under Alternative Two, the Committee may wish to consider recommending amendments to the operating budget to reflect Board strategic priorities. Any proposed changes would require an update to the tax requisition for the service. SUMMARY / CONCLUSION As part of the annual budget process for 2016, Business Plans have been prepared to accompany service area Budgets in order to provide Committee and Board members with a high level overview on the role of the service, the total budget, overall staff complement, performance indicators and key actions for the coming year. The 2016 Budget for Air Quality and Climate Change is projecting a tax requisition increase of 1.6% for While proposed expenditures are up 5.5%, the impact on the tax requisition is much less, due primarily to an increase in air quality user fees. This increase in expenditures is driven mostly by the addition of one new position in the area of bylaw and regulation development, and one time costs to upgrade air quality monitoring equipment. Within the overall Air Quality and Climate Change function, operating expenditures as outlined in the 2016 Business Plans are projected to increase by $ 466,004 (5.5%) over The Budget for 2016 has been prepared to respond to direction provided in the Board Strategic Plan, support the goals of the Integrated Air Quality and Greenhouse Gas Management Plan, and to address upgrades needed in air quality monitoring infrastructure. Staff recommend endorsing the 2016 Budget and Business Plan for as presented under Alternative One. Attachments (Doc # ): Air Quality and Climate Change Operating Budget Detail. 2. Air Quality and Climate Change 2016 Business Plan. 3. Organizational Chart for Planning, Policy and Environment Department. 4. Organizational Chart for Legal and Legislative Services Department

12 B16A ALO 5.1 Attachment 1 GREATER VANCOUVER REGIONAL DISTRICT AIR QUALITY 2016 BUDGET REVIEW % BUDGET BUDGET ACTUAL BUDGET BUDGET CHANGE REVENUES GVRD Municipal Levy $ 3,327,009 $ 3,327,009 $ 3,712,420 $ 3,771, % User Fees 1,700,436 1,961,775 1,800,000 1,800,000 Non-Road Diesel Permit Fees 1,260,000 1,162,695 1,309,000 1,992,000 Other External Revenues 613, , , ,200 Other Funds / Reserves 675, ,473 1,234, ,228 TOTAL REVENUES $ 7,576,794 $ 7,964,838 $ 8,501,984 $ 8,967, % EXPENDITURES Operating Programs: Ambient Air Quality Monitoring $ 1,662,649 $ 1,753,236 $ 1,643,097 $ 2,015,924 Climate Change Policy and Management 908, ,624 1,004, ,582 Data and Assessment 412, , , ,133 Policy and Management 833, ,963 1,252,904 1,204,619 Sampling and Investigation 279, , , ,289 Administration and Department Support 470, , , ,105 4,566,828 4,330,149 4,975,097 5,303, % Communications Program ,000 N/A Environmental Regulation and Enforcement 2,460,265 2,052,296 3,026,649 3,157, % Allocation of Centralized Support Costs 549, , , ,127 (2.6%) TOTAL EXPENDITURES $ 7,576,794 $ 6,932,141 $ 8,501,984 $ 8,967, %

13 5.1 Attachment BUSINESS PLAN PLANNING, POLICY & ENVIRONMENT Air Quality and Climate Change Description of services This service area is responsible for managing air quality in the region under authority delegated from the Provincial government under the Environmental Management Act. The service is guided by the development of air quality management plans that recognize the strong connections among air quality, health and climate change, and that integrate actions, whenever possible, to reduce both air contaminants and greenhouse gases across the region. Reduction efforts involve both regulatory and nonregulatory initiatives. To support Metro Vancouver s commitment to protect the environment and conserve resources, Environmental Regulation and Enforcement negotiates and issues permits, orders and licenses, and then promotes compliance and enforces air quality bylaws. According to a discharger pays principle, these regulatory costs are recovered through fees. The annual budget for Air Quality and Climate Change planning and policy is $5,810,779. The annual budget for Regulation and Enforcement is $3,157,209. Strategic directions and high level goals supported Board Strategic Plan Develop, adopt and implement a regional climate action strategy for reducing regional greenhouse gas emissions and adapting to climate change. Improve air quality by mitigating threats. Improve public understanding of the value of clean air and greenhouse gas reductions, and actions to achieve both. Integrated Air Quality and Greenhouse Gas Management Plan Goal 1 - Protect public health and the environment Goal 2 - Improve visual air quality Goal 3 - Minimize the region's contribution to global climate change

14 Performance indicators Indicator Net corporate greenhouse gas emissions (tonnes of CO 2e) Historical and/or industry benchmark 1997: 13, : 7, : 8,315 Current performance 2014: 934 (85% carbon neutral) 2016 performance objectives 0 (carbon neutral) Regional greenhouse gas emissions per capita (tonnes of CO 2e) Number of non-road diesel engines, within the region, registered for diesel particulate (DPM) emissions MV 2007: 7.3 Canada 2007: 22.8 Greater Toronto 2010: : 1,404 Tier : : 2,309 Tier 0 1,027 Tier 1 Registration of all applicable Tier 0 and Tier 1 non-road diesel engines Compliance with MV air quality objectives 2011: Compliant with all Metro Vancouver air quality objectives 2014: compliant with the Canadian Ambient Air Quality Standards for all pollutants; Compliant with all Metro Vancouver air quality objectives (no exceedances) Total number of permits for discharges to airshed that must be managed and monitored 2013: 152 short-term exceedances for PM2.5 (portions of 8 days), PM10 (2 days) and ground level ozone (1 day). 2014: key actions Develop and implement integrated regional climate action strategy, including additional programs for reducing greenhouse gas emissions from prioritized business sectors, buildings and vehicles. Implement a regional approach to climate change adaptation. Implement additional energy and greenhouse gas reduction offset projects that will achieve and maintain Metro Vancouver s carbon neutral status. Develop new air quality bylaws and regulations towards goals for protection of human health and environment and continuous improvement in air quality, for Board adoption. Continue to expand implementation of Non road Diesel Engine Emission Regulation, including partnerships with other levels of government. Improve public understanding of air quality and climate change issues and initiatives, including through the preparation of the fifth annual Caring for the Air report

15 5.1 Attachment 3 CORPORATE STRATEGIES *FTRs = 4.0 GENERAL MANAGER Department Support FTRs = 9.0 AIR QUALITY ELECTORAL AREA SERVICES REGIONAL HOUSING REGIONAL PARKS REGIONAL PLANNING Policy & Management Development Services Housing Policy MV Housing Corporation Planning & Engineering Services Planning, & Policy Analysis Ambient Air Quality Monitoring FTRs = 1.5 FTRs = 1.0 Tenant Services & Support Visitor & Operation Services Strategic Initiatives Climate Change Policy & Management Finance Parks East Environment Sampling & Investigation Operations & Maintenance Parks Central FTRs = 16.5 Data & Assessment SW Area Parks West FTRs = 29.0 NW Area FTRs = SE Area NE Area FTRs = 64.0 September 24, *Positions counted under Corporate Planning Function Planning, Policy & Environment 2015 Total FTRs = Proposed FTRs = 237.6

16 5.1 Attachment 4 GENERAL MANAGER Department Support FTRs = 2.0 ABORIGINAL RELATIONS BOARD & INFORMATION SERVICES ENVIRONMENTAL REGULATION & ENFORCEMENT LEGAL SERVICES Aboriginal Relations Board & Legislative Services Air Quality Legal Counsel FTRs = 3.0 Information Management Liquid Waste FTRs = 7.0 FTRs = 14.7 Solid Waste FTR Allocation: Air Quality = Liquid Waste = 13.0 Solid Waste = 6.5 R&E Admin = 3.0 Total FTRs = 38.0 September 24, 2015 Legal & Legislative Services 2015 Total FTRs = Proposed FTRs =

17 To: From: Intergovernment and Finance Committee Electoral Area Sub-Committee Elisa Campbell, Director of Regional Planning Planning, Policy and Environment Department Date: September 23, 2015 Meeting Date: September 30, 2015 Subject: 2016 Budget and Business Plan Electoral Area RECOMMENDATION That the Intergovernment and Finance Committee Electoral Area Sub-Committee endorse the 2016 Electoral Area Budget and Business Plan as presented in the report 2016 Budget and Business Plan Electoral Area dated September 23, 2015 and forward them to the Board Budget Workshop on October 21, 2015 for consideration. PURPOSE To present the 2016 Electoral Area Budget and Business Plan for consideration by the Intergovernment and Finance Committee Electoral Area Sub-Committee. BACKGROUND The Electoral Area function comprises Electoral Area A, the unincorporated area within Metro Vancouver, and provides local government planning, building inspection and emergency services to residents of Electoral Area A. The Electoral Area A function is guided by the Board Strategic Plan, local land use bylaws, and the Local Government Act, with a focus on the following strategic directions and goals: Use livability and sustainability objectives to guide Metro Vancouver services and operations. Strengthen the alignment of member and regional objectives. Enhance relationships between Metro Vancouver and other orders of government, First Nations and stakeholders. Collaborate with stakeholders to prepare for major emergencies. The Metro Vancouver financial planning process is evolving to include a more formalized focus on the longer term. Beginning with the 2016 process, staff will be creating financial plans that will include a 5-year outlook. While these longer term plans are being developed, in this year of transition, staff will be focusing on the 2016 budget this fall and will present the longer-term view in the second quarter of BUDGET AND BUSINESS PLAN This report is structured to provide the budgetary highlights of the Electoral Area service. The Budget Details (Attachment 1) and the Business Plan (Attachment 2) are provided for the Committee s consideration. In addition, an organizational chart is attached that shows the department structure for the Electoral Area (Attachment 3)

18 2016 Budget and Business Plan Electoral Area Intergovernment and Finance Electoral Area Sub-Committee Meeting Date: September 30, 2015 Page 2 of 3 The 2016 Electoral Area Budget and Business Plan have been prepared to respond to the strategic direction provided by the Board and to provide good local government services that respond to the needs of the various Electoral Area A communities. Operating Budget Highlights The Electoral Area operating budget is proposed to increase by $65,548 (13.5%) in 2016 for a total operating budget of $551,346 (Attachment 1). This increase is primarily due to the inclusion of external consulting costs to support the development of an Official Community Plan. The 2016 operating budget includes the following key actions: Prepare compendium of Electoral Area policies and procedures. Initiate the development of an Official Community Plan for Electoral Area A. Continue to administer the building, zoning, and unsightly premise and nuisance bylaws. Prepare and disseminate educational and promotional material for Electoral Area services. Engage the UBC community on primary liquor license referrals. Continue to offer staff support to Electoral Area Board Director. Facilitate emergency management education for residents. There is one consulting project anticipated to be undertaken in 2016 to respond to work plan requirements within the operating budget, which is to support the development of an Official Community Plan ($60,000). Business Plan Performance Indicators Within the Electoral Area Business Plan, two main performance indicators have been developed and are being tracked. These include: Number of public meetings and engagement events Number of visits to the Electoral Area A website The trend in these performance measures shows a marked increase in the number of public meetings and engagement events, in part due to expanded communications and outreach efforts made possible through the Division Manager position that was added to the Electoral Area A function in The number of visits to the Electoral Area A website can be expected to increase as more news and notices are posted and as more people sign up to receive the Electoral Area A newsletter. BUDGET APPROVAL PROCESS The proposed 2016 Budget and Business Plan for the Electoral Area service are presented to the Intergovernment and Finance Committee Electoral Area Sub-Committee for consideration and endorsement before being forwarded to the Board for consideration. The next steps of the budget process are: The 2016 Budget and Business Plan for the Electoral Area will be presented at the Board Budget Workshop on October 21, The Board will consider adoption of the Budget on October 30, 2015.

19 2016 Budget and Business Plan Electoral Area Intergovernment and Finance Electoral Area Sub-Committee Meeting Date: September 30, 2015 Page 3 of 3 ALTERNATIVES 1. That the Intergovernment and Finance Committee Electoral Area Sub-Committee endorse the 2016 Electoral Area Budget and Business Plan as presented in the report 2016 Budget and Business Plan Electoral Area dated September 23, 2015 and forward them to the Board Budget Workshop on October 21, 2015 for consideration. 2. That the Intergovernment and Finance Committee Electoral Area Sub-Committee make recommendations and endorse the 2016 Electoral Area Budget and Business Plan as amended and forward them to the Board Budget Seminar on October 21, 2015 for consideration. FINANCIAL IMPLICATIONS The 2016 Budget and Business Plan for the Electoral Area service as presented in Alternative 1, if approved by the GVRD Board, project a requisition of $363,567 (a 2.0 % increase from 2015). While the majority of revenue to cover projected Electoral Area expenditures will come from the Electoral Area tax requisition, non-tax revenue sources account for approximately 34.1% of the operating budget. These non-tax revenue sources include: external grant funding (Community Works Fund and Regional District Basic Grants); contributions from the Electoral Area reserve fund; and building permit application fees. Under Alternative 2, the Sub-Committee may wish to consider recommending amendments to the operating and/or capital budget to reflect Board strategic priorities. Any proposed changes would require an update to the Electoral Areas Levy for the service. SUMMARY / CONCLUSION As part of the annual budget process for 2016, Business Plans have been prepared to accompany service area Budgets in order to provide Committee and Board members with a high level overview on the role of the service, the total budget, overall staff complement, performance indicators and key actions for the coming year. The 2016 Budget for Electoral Area is projecting an Electoral Area requisition increase of 2.0% for This increase is due to anticipated inflation and the annual increase in cost of living. Within the overall Electoral Area function, operating expenditures as outlined in the 2016 Business Plan are projected to increase by $65,548 (13.5%) over The Budget for 2016 has been prepared to respond to direction provided in the Board Strategic Plan and to deliver local government services to Electoral Area A communities. Staff recommend endorsing the 2016 Budget and Business Plan for Electoral Area A as presented under Alternative 1. Attachments (Orbit # ) Electoral Area Operating Budget Detail 2. Electoral Area 2016 Business Plan 3. Organizational Chart for Regional Planning

20 B19A ALO GREATER VANCOUVER REGIONAL DISTRICT ELECTORAL AREA SERVICE 2016 BUDGET REVIEW % BUDGET BUDGET ACTUAL BUDGET BUDGET CHANGE REVENUES Electoral Area Requisition $ 234,404 $ 234,404 $ 356,377 $ 363, % User Fees 18,000 3,150 18,000 16,358 Other External Revenues 1, , , ,421 Other Funds / Reserves 67,152 67,149-60,000 TOTAL REVENUES $ 320,617 $ 418,124 $ 485,798 $ 551, % EXPENDITURES Operating Programs: Electoral Area Service $ 290,527 $ 203,130 $ 346,994 $ 413,258 Contribution to Reserve , , , , , , % Allocation of Centralized Support Costs 30,090 30,096 27,383 26,667 (2.6%) TOTAL EXPENDITURES $ 320,617 $ 233,226 $ 485,798 $ 551, %

21 5.1 Attachment BUSINESS PLAN PLANNING, POLICY & ENVIRONMENT Electoral Area A Description of services Electoral Area A is the unincorporated area of the regional district. It is made up of 818 km 2 of land area, stretching from Point Grey and Howe Sound in the west, to Pitt Lake in the east, and includes Barnston Island and the northern part of Indian Arm. This business area represents the local government services that Metro Vancouver more specifically, the Greater Vancouver Regional District is responsible for providing to Electoral Area A. Metro Vancouver provides emergency planning and response services for the entire area of Electoral Area A, including Point Grey. Building inspection & land use planning are provided to the mainland areas outside of Point Grey only. The budget for this business area is $551,346. Strategic directions supported Board Strategic Plan Use livability and sustainability objectives to guide Metro Vancouver services and operations. Strengthen the alignment of member and regional objectives. Enhance relationships between Metro Vancouver and other orders of government, First Nations and stakeholders. Collaborate with stakeholders to prepare for major emergencies. Performance indicators Indicator Number of public meetings and engagement events Number of visits to the Electoral Area A Website Historical and/or industry benchmark 2013: : : 2, : 4, : 5,594 Current 2016 performance performance objective 2015 YTD: YTD: 7,688 10, key actions Prepare compendium of Electoral Area policies and procedures. Initiate the development of an Official Community Plan for Electoral Area A. Continue to administer the building, zoning, and unsightly premise and nuisance bylaws. Prepare and disseminate educational and promotional material for Electoral Area services. Engage the UBC community on primary liquor license referrals. Continue to offer staff support to Electoral Area Board Director. Facilitate emergency management education for residents

22 CORPORATE STRATEGIES *FTRs = 4.0 GENERAL MANAGER Department Support FTRs = 9.0 AIR QUALITY ELECTORAL AREA SERVICES REGIONAL HOUSING REGIONAL PARKS REGIONAL PLANNING Policy & Management Development Services Housing Policy MV Housing Corporation Planning & Engineering Services Planning, & Policy Analysis Ambient Air Quality Monitoring FTRs = 1.5 FTRs = 1.0 Tenant Services & Support Visitor Services & Operaions Strategic Initiatives Climate Change Policy & Management Finance Parks East Environment Sampling & Investigation Operations & Maintenance Parks Central FTRs = 16.5 Data & Assessment SW Area Parks West FTRs = 29.0 NW Area FTRs = SE Area NE Area FTRs = September 24, 2015 *Positions counted under Corporate Planning Function Planning, Policy & Environment 2015 Total FTRs = Proposed FTRs = 237.6

23 To: From: Regional Parks Committee Mitch Sokalski, Director, Regional Parks Date: September 21, 2015 Meeting Date: October 1, 2015 Subject: 2016 Budget and Business Plan Regional Parks RECOMMENDATION That the Regional Parks Committee endorse the 2016 Regional Parks Budget and Business Plan as presented in the report 2016 Budget and Business Plan Regional Parks dated September 21, 2015 and forward them to the Board Budget Workshop on October 21, 2015 for consideration. PURPOSE To present the 2016 Regional Parks Budget and Business Plan for consideration by the Regional Parks Committee BACKGROUND The Regional Parks function comprises all 23 members within Metro Vancouver plus the City of Abbotsford and provides a regional park system that consists of 14,500 hectares of parkland with 22 regional parks, five greenways, two ecological conservancy areas and four regional reserves serving over 10.8 million visits annually. The Regional Parks function is guided by the Board Strategic Plan and Regional Parks Plan with a focus on the following strategic directions and goals: Protect important natural areas to contribute to regional livability and to enhance connections Within the context of natural area protection, provide opportunities for people to connect with, enjoy, be active and learn about the environment The Metro Vancouver financial planning process is evolving to include a more formalized focus on the longer term. Beginning with the 2016 process, staff will be creating financial plans that will include a five (5) year outlook. While these longer term plans are being developed, in this year of transition, staff will be focusing on the 2016 budget this fall and present the longer term view in the second quarter of BUDGET AND BUSINESS PLAN This report is structured to provide the budgetary highlights of the Regional Parks function. The budget details (Attachment 1 operating budget, Attachment 2 capital budget) and the Business Plan (Attachment 3) are provided for the Committee s consideration. In addition, an organizational chart is attached that shows the department structure for the Regional Parks function (Attachment 4). The 2016 Regional Parks Budget and Business Plan has been prepared to respond to the strategic direction provided by the GVRD Board, 13.9% visitor growth in 2013/14, increase in contribution to capital, actions arising from 2014, actions arising from the 2014 Regional Parks Service Review and the opening of Surrey Bend Regional Park.

24 2016 Budget and Business Plan Regional Parks Regional Parks Committee Meeting: October 1, 2015 Page 2 of 6 Operating Budget Highlights The Regional Parks operating budget is proposed to increase by $918,505 (3.6%) in 2016, for a total operating budget of $26,412,622 (Attachment 1). This increase is primarily due to inflation, labour adjustments, service level increases, and opening of Surrey Bend Regional Park. Service Level Adjustments Service level adjustments are proposed to respond to the sharp increase in visitor use. In 2014 Metro Vancouver Regional Parks received 10.8 million visits, an increase of 13.9% from While regional growth in population remains slightly under 2%, regional park visits have been rising on average of 4.4% annually. The 2016 budget proposes increases in field operations, both seasonal staffing and services at Boundary Bay, Kanaka Creek, Derby Reach, Pacific Spirit and Campbell Valley Regional Parks. Field operations deliver direct services to the public, including washroom and other facility cleaning and maintenance, litter pickup, grass cutting, basic asset repair, public relations activities, security, and support in public education of park regulations. The 2016 budget proposal includes an increase in costs to support the new waste hauling contract in alignment with Metro Vancouver s Zero Waste program. The 2016 budget proposes an increase in the Resource Management program. Resource Management work includes the planning and management of regional parks natural resources including inventory of invasive plant species, development of restoration plans and working with contractors, park partners and volunteers to implement the plans. The proposed increase is in direct response to the 2014 Regional Parks Service Review priority actions and demands from park partner groups and others to undertake additional in park resource management and stewardship type work. Surrey Bend Regional Park In 1995, Metro Vancouver, the City of Surrey, with support from the Province of BC, purchased 348 hectares for regional park purposes. The GVRD Board approved both the parks management plan and associated capital funding. Park construction commenced in 2014 and is nearing completion and the park will be opened for public use later this year. In addition to extensive habitat enhancement work funded by the Transportation Investment Corporation, park development includes: trails, bridges, drainage channels, nature play area, picnic shelters, picnic tables, park furniture, toilets, access road, parking area, park signage, tree planting, and associated earth works, project partners include City of Surrey, Pacific Parklands Foundation, Experience the Fraser program and the Province of BC. The 2016 budget includes operating costs to support the day to day park operations. Park staffing is the largest budget item, including one fulltime regular Park Operator and a 0.5 temporary fulltime equivalent to be hired for the busy summer season. Other operating costs include materials and supplies, rental equipment and services. Contribution to Capital The 2016 budget proposes a $500,000 increase in contribution to capital in each year over the next 5 years to ensure that capital reserves are sufficient for future capital expenditures. This increase combined with a reduction in budgeted land acquisition expenditures, from $5 million to $4 million will grow the capital reserves to ensure that there are sufficient funds for future capital works. It is important to note that any yearend budget surpluses for regional parks are directed to capital reserves which includes the land acquisition fund. In addition, should an opportunity for a land purchase come forward that exceeds the annual land acquisition budget, the Board has the authority

25 2016 Budget and Business Plan Regional Parks Regional Parks Committee Meeting: October 1, 2015 Page 3 of 6 to authorize borrowing of funds. Further, as part of developing the new Land Acquisition Strategy staff will include funding options for Board consideration. The 2016 operating budget includes the following key actions: Implement Regional Parks Service Review actions Complete Regional Parks Plan update Complete construction of Kanaka Creek Watershed Stewardship Centre Complete construction of Surrey Bend Regional Park and hold an official opening in partnership with the City of Surrey Construct Colony Farm Sheep Paddocks Trail Undertake second phase of Regional Parks Narrative/Branding plan Continue park management planning activities for Widgeon Marsh Regional Park Reserve Implement Legacy Stewardship Program in partnership with Pacific Parklands Foundation Highlights of consulting projects anticipated to be undertaken in 2016 to respond to work plan requirements with the operating budget include the following: Land Acquisition Strategy ($100,000) Burns Bog Research ($78,000) Widgeon Marsh Regional Park Reserve Management Planning ($50,000) Regional Parks Narrative and Branding plan ($75,000) Proposed staffing changes include 2.0 new full time regular (FTR) positions: Surrey Bend Regional Park 1.0 FTR Park Operator B This proposed full time regular position is for the provision of day to day operation for the newly developed 348 hectare regional park. Surrey Bend Regional Park has gated access and will be opened to the public seven (7) days per week typically from 8:00 AM to sunset. This field operations and maintenance position is dedicated to this site providing direct services to park visitors through onsite presence and public relations. This uniformed staff position conducts trail and facility patrol, facility cleaning and repair, washroom maintenance, litter pick up and conducts onsite resource management activities as required. Duties also include contractor and volunteer supervision and liaising with local emergency response agencies for public and resource safety and protection. This request supports the opening operation of Surrey Bend Regional Park. Kanaka Creek Regional Park 1.0 FTR Park Assistant 2 This regional park is situated in a part of the region where rapid growth is occurring, and the park is surrounded by development. The park is 12 kilometers long, and results in a 24 kilometer forested interface with private lands. The proposed increase in staffing will provide onsite resource protection, park protection, and will assist in addressing overall resource management needs. This position will also provide day to day in park services to the visiting public, trail patrol, litter pickup, and other general park duties and will provide service support to the Kanaka Creek Watershed Stewardship Centre once constructed and open for public use.

26 2016 Budget and Business Plan Regional Parks Regional Parks Committee Meeting: October 1, 2015 Page 4 of 6 Operating Revenue Highlights Regional Parks 2016 external operating revenue is forecasted at $2,551,111. This amount represents a $467,000 increase from 2015 levels and is the result of the following major changes: Commercial Filming ($221,000 increase) External Grants, Canpotext and GVRD Sustainability Innovation Fund, interest earned from Legacy Fund Reserve ($182,000 increase) Housing Rentals ($46,000 increase) Land Management, log booming ($32,000 increases) Capital Budget Highlights The Regional Parks capital budget has been decreased by $1,160,000 in 2016 for a total capital budget of $11,960,000 (Attachment 2). The primary adjustment in the capital is specific to the land acquisition program as described earlier in the report under the section titled Contribution to Capital. Capital Budget Highlights include: Capital Maintenance $2,100,000 Capital Maintenance program work is primarily managed through an asset management program that maintains approximately $145,000,000 in built assets. Built assets include washroom buildings, concession buildings, caretaker facilities, historical buildings, roads, parking lots, utilities, trails, bridges, boardwalks, campgrounds, picnic tables and picnic shelters. This program also includes $250,000 dedicated to larger resource management projects, $150,000 for small scale projects and $100,000 for accessibility projects. Capital Replacement and Development $5,860,000 This program provides funding to large scale projects (Attachment 2.1 and 2.2), both new and or larger scale replacement projects. Key projects include: Colony Farm Sheep Paddocks Trail ($2,000,000) Kanaka Creek Watershed Stewardship Centre ($1,900,000) Deas Island design and replacement sewerage disposal system for day use area ($300,000) Colony Farm Day use area improvements ($290,000) Burns Bog Service facility, operations and research facility ($250,000) Solid Waste Management Plan implementation ($200,000) Business Plan Performance Indicators Within the Regional Park Business Plan, four (4) performance indicators have been developed and are being tracked. These indicators include: Total number of Annual Visits Total number of Annual Participants in Park Programming Annual Volunteer Hours Sensitive Ecosystems Protected in Regional Parks The trend in these performance measures suggests that regional parks are well attended. Each year we are experiencing increases in annual visits that exceeds the region s annual population growth. Participation in regional park programs remains steady, with an increased number of turn a ways as programs and or facilities are quickly booked. Volunteer activities continue to grow as community organizations and individual volunteers become more engaged in regional parks through the Park

27 2016 Budget and Business Plan Regional Parks Regional Parks Committee Meeting: October 1, 2015 Page 5 of 6 Partnership Program, we are also experiencing an increase in demand to undertake more stewardship activities. The sensitive ecosystems protected in regional parks performance measure was introduced in 2015, and will be updated in This performance indicator is intended to measure protection of the region s sensitive ecosystems within regional parks. Baseline information on the amount of the region s sensitive ecosystem protected in regional parks has been developed. While this performance indicator may not change significantly year after year, staff believe that increments of three or five years should indicate outcomes of both increased land protection and the amount of habitat restoration. BUDGET APPROVAL PROCESS The proposed 2016 Budget and Business Plan for the Regional Parks function is presented to the Regional Parks Committee for consideration and endorsement before being forwarded to the GVRD Board for consideration. The next steps of the budget process are: The 2016 Budget and Business Plan for the Regional Parks function will be presented at the Board Budget Workshop on October 21, The GVRD Board will consider adoption of the Budget on October 30, ALTERNATIVES 1. That the Regional Parks Committee endorse the 2016 Regional Parks Budget and Business Plan as presented in the report 2016 Budget and Business Plan Regional Parks dated September 21, 2015 and forward them to the Board Budget Workshop on October 21, 2015 for consideration. 2. That the Regional Parks Committee make recommendations and endorse the 2016 Regional Parks Budget and Business Plan as amended and forward to the Board Budget Workshop on October 21, 2015 for consideration. FINANCIAL IMPLICATIONS The 2016 Budget and Business Plan for the Regional Parks function as presented in Alternative 1 comprises part of the overall GVRD tax requisition. The 2016 Regional Parks budget, if approved by the GVRD Board, is projecting a requisition of $31.8 million (a 3.0 % increase from 2015). The overall GVRD requisition will increase 4.2% over 2015 after accounting for population growth in the region, which represents a $2 increase to the average household. The majority of revenue to cover projected Regional Parks function expenditures will come from the GVRD tax requisition but non tax revenue sources account for approximately 9.6% of the operating budget. These non tax revenue sources include: facility rentals and events, commercial use permits, interpretive programming, commercial filming, pay parking, camping, rental housing, food concessions, grant funding and commercial leases and licenses. Under Alternative 2, the Regional Parks Committee may wish to consider recommending amendments to the operating and/or capital budget to reflect the GVRD Board strategic priorities. Any proposed changes would require an update to the tax requisition for the service.

28 2016 Budget and Business Plan Regional Parks Regional Parks Committee Meeting: October 1, 2015 Page 6 of 6 SUMMARY / CONCLUSION As part of the annual budget process for 2016 Business Plans have been prepared to accompany service area budgets in order to provide Committee and Board members with a high level overview on the role of the service, the total budget, overall staff complement, performance indicators and key actions for the coming year. The 2016 Budget for the Regional Parks function is projecting a tax requisition increase of 3.0% for This increase is in response to the strategic direction provided by the GVRD Board, 13.9% visitor growth in 2013/14, increase in the contribution to capital, actions arising from 2014, actions arising from the 2014 Regional Parks Service Review and the opening of Surrey Bend Regional Park. Within the overall Regional Parks function, operating expenditures as outlined in the 2016 Business Plans are projected to increase by $918,505 (3.0 %) over 2015, while capital program expenditures are projected to be $11,960,000 a reduction of $1,160,000 over The budget for 2016 has been prepared to respond to direction provided in the GVRD Board Strategic Plan, support the goals of the Regional Parks Plan and provides funding to respond to the outcomes of the GVRD Board directed 2014 Regional Parks Service Review. Staff recommend endorsing the 2016 Budget and Business Plan as presented under Alternative 1. Attachments: (Doc ) Regional Parks Operating Budget Detail Regional Parks Capital Budget Detail 2.1 Regional Parks 2016 Capital Distribution of Capital Expenditures Map Regional Parks Capital Program Scope Statements 3. Regional Parks 2016 Business Plan 4. Organizational Chart for Planning, Policy and Environment Department

29 B23A ALO 5.1 Attachment 1 GREATER VANCOUVER REGIONAL DISTRICT REGIONAL PARKS 2016 BUDGET REVIEW % BUDGET BUDGET ACTUAL BUDGET BUDGET CHANGE REVENUES GVRD Requisition $ 30,214,885 $ 30,214,885 $ 30,909,043 $ 31,840, % User Fees 946,417 1,019, ,142 1,030,702 Other External Revenues 1,219,902 1,623, ,503 1,204,863 Other Funds / Reserves 363, , , ,546 TOTAL REVENUES $ 32,744,347 $ 33,199,414 $ 32,988,346 $ 34,391, % EXPENDITURES Operating Programs: Systems Planning and Engineering Services Planning and Research $ 1,088,754 $ 1,098,272 $ 1,220,769 $ 1,065,780 Engineering Services 809, , ,445 1,166,793 1,897,810 1,826,483 2,028,214 2,232, % Systems Visitor and Operations Services Visitor Services 2,497,008 2,381,149 1,648,048 1,426,601 Operations Services 1,675,684 1,726,635 1,687,145 1,840,135 4,172,692 4,107,784 3,335,193 3,266,736 (2.1%) Central Area Services Operations and Maintenance 3,240,575 3,186,077 3,292,201 3,384,014 Area Visitor Services 102,640 97, , ,758 Area Management and Administration 511, , , ,816 Area Resource Management 261, , , ,348 Area Planning 170, , , ,323 4,287,339 4,131,228 4,705,725 4,877, % East Area Services Operations and Maintenance 3,526,127 3,515,076 3,623,338 3,488,266 Area Visitor Services 104,640 98, , ,464 Area Management and Administration 515, , , ,939 Area Resource Management 187, , , ,783 Area Planning 137, , , ,570 4,470,966 4,398,686 4,992,678 4,997, % West Area Services Operations and Maintenance 4,463,910 4,455,474 4,523,729 4,664,614 Area Visitor Services 105,582 88, , ,704 Area Management and Administration 714, , , ,782 Area Resource Management 185, , , ,634 Area Planning 128, , , ,674 Burns Bog Ecological Conservancy Area 498, , , ,087 6,096,600 5,642,785 6,508,860 6,881, % Administration and Department Support 1,118, ,125 1,058,876 1,273, % Communications Program ,000 N/A Utility Voice Radio 86,449 44,941 90,460 83,540 (7.6%) Quality Control Allocated 66,297 63,660 48,743 50, % Allocation of Centralized Support Costs 3,040,954 3,040,956 2,725,368 2,677,549 (1.8%) Total Operating Programs 25,237,150 24,176,647 25,494,117 26,412, % Debt Service 254, , , ,026 (6.2%) Contribution to Capital Reserve 7,252,203 7,252,203 7,252,203 7,752, % TOTAL EXPENDITURES $ 32,744,347 $ 31,649,691 $ 32,988,346 $ 34,391, %

30 B24 GREATER VANCOUVER REGIONAL DISTRICT CAPITAL PROGRAMS & PROJECT DETAILS REGIONAL PARKS 2016 BUDGET 5.1 Attachment CAPITAL BUDGET CAPITAL EXPENDITURES Parks-Capital Replacement and Development Colony Farm - Sheep Paddock Trail Rebuild $2,000,000 Kanaka Creek - Watershed Stewardship Centre 1,900,000 Deas Island - Design and Replace Sewerage Disposal System For Day Use Area 300,000 Colony Farm - Day Use Area Completion 290,000 Burns Bog - Research Coordination and Service Center 250,000 Aldergrove - Phase 1 Management Plan Implementation 200,000 System Wide - Solid Waste Implementation Plan 200,000 Burns Bog Delta Nature Reserve - Replace Boardwalk, Kiosks and Signs 150,000 Derby Reach - Full Service Washroom 140,000 Capital Replacement and Development - Feasibility Studies 100,000 Kanaka Creek - Watershed Stewardship Centre Learning Landscape 100,000 Pacific Spirit - Service Yard Replacement 100,000 Colony Farm - Water Line Connector Trail 50,000 Crippen - Orchard Cabins 50,000 Pacific Spirit - Acadia Picnic Area Erosion/Cultural Resource Protection 30,000 $5,860,000 Heritage Parkland Acquisition Fund Projects 4,000,000 $4,000,000 Capital Maintenance Projects 2,100,000 $2,100,000 TOTAL CAPITAL EXPENDITURES $11,960,000 CAPITAL FUNDING SOURCES Reserves $11,960,000 Grants - Contribution to Capital - Debt Financing - TOTAL CAPITAL FUNDING SOURCES $11,960,000

31 5.1 Attachment 2.1 REGIONAL PARKS DISTRIBUTION OF CAPITAL EXPENDITURES CAPITAL BUDGET Parks Capital Replacement and Development - Total Expenditures $ 5,860, 000 System Wide Expenditures: Solid Waste Implementation Plan - $200,000 Capital Replacement and Development Feasibility Studies - $100,000 Crippen ($50,000) Old Orchard Cabins Pacific Spirit ($100,000) Service Yard Replacement Colony Farm ($2,000,000) Sheep Paddock Trail Rebuild Colony Farm ($290,000) Day Use Area Completion Colony Farm ($50,000) Water Line Connector Trail Kanaka Creek ($100,000) Watershed Stewardship Centre Learning Landscape Kanaka Creek ($1,900,000) Watershed Stewardship Centre Pacific Spirit ($30,000) Acadia Picnic Area Erosion / Cultural Resource Protection Deas Island ($300,000) Design and Replace Sewerage Disposal System For Day Use Area Burns Bog / Delta Nature Reserve ($150,000) Replacement of Boardwalk, Kiosks and Signs Burns Bog ($250,000) Research Coordination and Service Centre Derby Reach ($140,000) Full Service Washroom Aldergrove ($200,000) Phase 1 Management Plan Implementation Regional Parks with Capital Expenditures Capital Budget Kilometers August 2015

32 5.1 Attachment REGIONAL PARKS CAPITAL PROGRAM SCOPE STATEMENTS Capital Replacement and Development Projects Attachment 4 PROJECT NAME 1 COLONY FARM Sheep Paddock Trail Rebuild ($2.0M) 2 KANAKA CREEK Watershed Stewardship Centre ($1.9M) 3 DEAS ISLAND Design and Replace Sewerage Disposal System for Day Use Area ($300K) 4 COLONY FARM Day Use Area Completion ($290K) 5 BURNS BOG Research Coordination and Service Centre ($250K) SCOPE / PROJECT DESCRIPTION Construct 1.6km of 3m wide multi use trail connecting Pitt River Road and Mundy Creek trail including amenities and landscaping. Design and construct the Stewardship Building to provide facilities to expand programs and events and provide a home base for the Park Association and KEEPS. Detailed design and tender drawings to construct new replacement septic systems at lnverholme School, Burvilla and Agricultural Hall. To construct the parking lot, fencing, signage and landscaping. Construct a modular building and related facilities to provide a permanent operations facility for Burns Bog ECA, the DSSG and the Delta Nature Reserve. 6 ALDERGROVE Phase 1 Management Plan ($200M) Detailed planning, design, community outreach and cost estimate to ensure that permits can be secured for 2017 implementation. 7 SYSTEM WIDE Solid Waste Implementation Plan ($200K) To install solid waste management collection stations, signage and public education elements across the regional parks system. 8 BURNS BOG / DELTA NATURE RESERVE Boardwalk, Kiosks and Signage Replacement ($150K) Design a 2.2km boardwalk suitable for bog environment and nature walkers and construct phase one in 2016 (construction phased over 4 years).

33 PROJECT NAME 9 DERBY REACH Full Service Washroom ($140K) 10 FEASIBILITY STUDIES ($100K) SCOPE / PROJECT DESCRIPTION Plan & design a full service washrooms and related amenities to integrate facility into park. General fund required to advance projects for subsequent budget years. 11 KANAKA CREEK Watershed Stewardship Centre Learning Landscape ($100K) Complete the roof to creek natural drainage system and interpretive / educational exhibits. Includes landscaping, habitat and site amenities PACIFIC SPIRIT Service Yard Replacement ($100K) COLONY FARM Waterline Connector Trail ($50K) CRIPPEN Orchard Cabins ($50K) PACIFIC SPIRIT Acadia Picnic Area Erosion/Cultural Resource Protection ($30K) To initiate detailed design and obtain permit approvals based upon preliminary concept design and development cost estimates completed in To construct 500 m of 3 m wide trail, directional signage and landscaping. Includes archaeological Impact Assessment and biological review. Design and rebuild of existing cottages. Includes community consultation/outreach. Develop phase 1 erosion and public safety plan to complete project preliminary design and costing.

34 5.1 Attachment BUSINESS PLAN PLANNING, POLICY & ENVIRONMENT Regional Parks Description of services This business area is responsible for the planning, operations, development, property acquisition and management, resource management, public relations, community stewardship, visitor services and educational programs of Metro Vancouver s Regional Parks. The Regional Parks system includes 14,500 hectares of parkland, serves 10.8 million visits annually, and contains 22 regional parks, 5 regional greenways, 2 ecological conservancy areas and 4 regional reserves. The operating budget for this business area is $26,412,622 and the capital budget is $11,960,000. Strategic direction and high level goals supported Board Strategic Plan Protect important natural areas in the region. Provide opportunities for the region s growing and diverse population to connect with, enjoy, be active within and learn about the natural environment. Integrate the Regional Parks system with others efforts to protect important natural areas and systems in the region. Regional Parks Plan (Goals as outcome of 2014 Regional Parks Service Review) Protect important natural areas to contribute to regional livability and to enhance connections. Within the context of natural area protection, provide opportunities for people to connect with, enjoy, be active and learn about the environment. Performance indicators Indicator Annual number of visits to regional parks Annual number of participants in park programming (including special events, recreation, interpretive and school programs) Historical and/or industry benchmark MV 5 year average: 9,800, : 10,800, : 10,400, : 9,500, : 9,100, : 9,100,000 MV 5 year average: 48, : 61, : 45, : 49, :47, :38,000 Current performance 2016 performance objectives 2014: 10,800,000 10,800, : 61,600 50,

35 Indicator Annual number of volunteer hours (for Park Associations, stewardship, educational programs and events) Area of the Region s sensitive ecosystems protected in Regional Parks Historical and/or industry benchmark MV 2 year average: 23, : 24, : 23,000 Current baseline established Will be updated in Current performance 2016 performance objectives 2014: 24,000 25,000 9,924 hectares 9,924 hectares 2016 key actions Implement Regional Parks Service Review actions and provide regular updates to Regional Parks Committee. Complete Regional Parks Plan update and obtain Regional Parks Committee and Board approval. Complete construction of Kanaka Creek Watershed Stewardship Centre and hold opening ceremony. Complete construction of Surrey Bend Regional Park and hold official opening ceremony in partnership with the City of Surrey. Construct Colony Farm Sheep Paddocks Trail. Confirm design and tender for Pacific Spirit Regional Park service facility for construction in Initiate planning and design of Derby Reach Edgewater Bar day use area improvements including full service washroom for construction in Undertake second phase of Regional Parks Narrative/Branding plan with MV External Relations. Continue park management planning activities for Widgeon Marsh Regional Park Reserve. Finalize site plans, building restoration and associated public use programs for Belcarra Regional Park South Cabins and Crippen Regional Parks Davies Orchard Cottages. Complete the North Arm extension addendum to the Experience the Fraser Concept Plan and obtain Board approval. Participate in Admiralty Point land management discussions with Tsleil Waututh Nation led by Parks Canada. Complete energy audits on the top six energy consumption sites (Capilano River, Minnekhada, Belcarra, Burnaby Lake, Deas Island, Crippen regional parks). In partnership with Pacific Parklands Foundation implement George Ross Legacy Fund stewardship grant program

36 5.1 Attachment 4 CORPORATE STRATEGIES *FTRs = 4.0 GENERAL MANAGER Department Support FTRs = 9.0 AIR QUALITY ELECTORAL AREA SERVICES REGIONAL HOUSING REGIONAL PARKS REGIONAL PLANNING Policy & Management Development Services Housing Policy MV Housing Corporation Planning & Engineering Services Planning, & Policy Analysis Ambient Air Quality Monitoring FTRs = 1.5 FTRs = 1.0 Tenant Services & Support Visitor & Operation Services Strategic Initiatives Climate Change Policy & Management Finance Parks East Environment Sampling & Investigation Operations & Maintenance Parks Central FTRs = 16.5 Data & Assessment SW Area Parks West FTRs = 29.0 NW Area FTRs = SE Area NE Area FTRs = September 24, 2015 *Positions counted under Corporate Planning Function Planning, Policy & Environment 2015 Total FTRs = Proposed FTRs = 237.6

37 To: From: Regional Planning Committee Elisa Campbell, Director of Regional Planning Planning, Policy and Environment Department Date: September 22, 2015 Meeting Date: October 2, 2015 Subject: 2016 Budget and Business Plan Regional Planning RECOMMENDATION That the Regional Planning Committee endorse the 2016 Regional Planning Budget and Business Plan as presented in the report 2016 Budget and Business Plan Regional Planning dated September 22, 2015, and forward them to the Board Budget Workshop on October 21, 2015 for consideration. PURPOSE To present the 2016 Regional Planning Budget and Business Plan for consideration by the Regional Planning Committee. BACKGROUND The Regional Planning function provides research and policy analysis and implementation in support of a prosperous, resilient and livable region for all 23 members within Metro Vancouver. A primary responsibility is to develop, implement and monitor Metro 2040: Shaping our Future, the regional growth strategy. Regional Planning is guided by the Board Strategic Plan and Metro 2040: Shaping our Future, the regional growth strategy, with a focus on the following strategic directions and goals: Continue to develop and implement effective and adaptive tools and processes for achieving the goals in Metro Support the efforts of members in developing complete and livable communities. Coordinate the development of effective collaborative approaches to ensure that the region can adapt to changing conditions. Guide the development of policies, plans and tools that can lead to creative solutions for managing competition for land in the region. Advocate the merits of integrating regional land use and transportation planning. Develop, adopt and implement a regional climate action strategy for reducing regional greenhouse gas emissions and adapting to climate change. Support an evidence based approach to analyzing the affordability challenges in the Metro Vancouver region. The Metro Vancouver financial planning process is evolving to include a more formalized focus on the longer term. Beginning with the 2016 process, staff will be creating financial plans that will include a 5 year outlook. While these longer term plans are being developed, in this year of transition, staff will be focusing on the 2016 budget this fall and present the longer term view in the second quarter of 2016.

38 2016 Budget and Business Plan Regional Planning Regional Planning Committee Meeting Date: October 2, 2015 Page 2 of BUDGET AND BUSINESS PLAN This report is structured to provide the budgetary highlights of the Regional Planning function. The Budget Details (Attachment 1) and the Business Plan (Attachment 2) are provided for the Committee s consideration. In addition, an organizational chart is attached that shows the department structure for Regional Planning (Attachment 3). [While the Electoral Area function is part of Regional Planning from an organizational perspective, it falls under a separate process from a financial and budgetary perspective.] The 2016 Regional Planning Budget and Business Plan have been prepared to respond to the strategic direction provided by the Board and in support of a broad range of activities that span across five activity areas: Growth Management; Strategic Initiatives; Environment; Housing Policy and Planning; and Regional Development Data & Forecasting. Staff involved in each of the ten portfolios included in these activity areas conduct research and policy analysis; implement supporting tools and guidelines; perform outreach and educational work; and respond to requests for assistance to emerging issues from elected officials and municipal staff. Operating Budget Highlights The Regional Planning operating budget is proposed to increase by $286,914 (9.7%) in 2016 for a total operating budget of $3,259,324 (Attachment 1). This increase is primarily due to the inclusion of an allocation for the internal Communications Program; the request for one new staff position; and an increase in external consulting expenditures. The 2016 operating budget includes the following key actions: Conduct ongoing implementation and monitoring of Metro 2040 Work with External Relations to prepare and implement strategic communications strategy and municipal and public outreach strategy Conduct Livability Survey Support an industrial land strategy and associated outreach activities Undertake legislated process for five year review of Metro 2040 Migrate to a digital version of Metro 2040 Annual Report Prepare Data and Analytics strategy Continue land use related climate adaptation and mitigation investigation. Highlights of consulting projects anticipated to be undertaken in 2016 to respond to work plan requirements within the operating budget include the following: Metro 2040 Digital Annual Report ($36,000) Livability Survey ($50,000) Addressing Illegal Fill ( $70,000) Housing + Transportation Affordability Implementation ($35,000) Agricultural Land Use Inventory ($36,000) SEI Regional Land Cover ($50,000) Grow Green ($40,000). Proposed staffing changes are for one new full time regular (FTR) position: Program Manager, Strategic Initiatives, to support strategic initiatives including a Data and Analytics strategy, and land use and climate change mitigation and adaptation efforts.

39 2016 Budget and Business Plan Regional Planning Regional Planning Committee Meeting Date: October 2, 2015 Page 3 of 4 Business Plan Performance Indicators Within the Regional Planning Business Plan, four performance indicators have been developed and are being tracked. These include: Percentage of residential growth occurring within the Urban Containment Boundary (UCB) Percentage of new dwelling units located within Urban Centres Number of hectares of land within the Metro 2040 Agricultural designation Number of hectares added to, or removed from, Industrial and Mixed Employment areas. The trend in these performance measures suggest that while progress toward core Metro 2040 growth management goals is in the desired direction, the limited land supply in the region will continue to present a challenge that requires attention and commitment to effective management by all municipal partners. BUDGET APPROVAL PROCESS The proposed 2016 Budget and Business Plan for Regional Planning are presented to the Regional Planning Committee for consideration and endorsement before being forwarded to the Board for consideration. The next steps of the budget process are: The 2016 Budget and Business Plan for Regional Planning will be presented at the Board Budget Workshop on October 21, The Board will consider adoption of the Budget on October 30, ALTERNATIVES 1. That the Regional Planning Committee endorse the 2016 Regional Planning Budget and Business Plan as presented in the report 2016 Budget and Business Plan Regional Planning dated September 22, 2015 and forward to the Board Budget Workshop on October 21, 2015 for consideration. 2. That the Regional Planning Committee make recommendations and endorse the 2016 Regional Planning Budget and Business Plan as amended and forward to the Board Budget Seminar on October 21, 2015 for consideration. FINANCIAL IMPLICATIONS The 2016 Budget and Business Plan for Regional Planning as presented in Alternative 1 comprise part of the overall GVRD tax requisition. The 2016 Regional Planning budget, if approved by the GVRD Board, is projecting a requisition of $3,069,324 (a 6.5% increase from 2015). The overall GVRD requisition will increase by 4.2% after accounting for population growth in the region, which represents a $2 increase to the average household. While the majority of revenue to cover projected Regional Planning expenditures will come from the GVRD tax requisition, non tax revenue sources account for approximately 5.8% of the operating budget. These non tax revenue sources include: Sustainability Innovation Fund; and funds from the Regional Planning Growth Strategy reserve.

40 2016 Budget and Business Plan Regional Planning Regional Planning Committee Meeting Date: October 2, 2015 Page 4 of 4 Under Alternative 2, the Committee may wish to consider recommending amendments to the operating budget to reflect Board strategic priorities. Any proposed changes would require an update to the tax requisition for the service. SUMMARY / CONCLUSION As part of the annual budget process for 2016, Business Plans have been prepared to accompany service area budgets in order to provide Committee and Board members with a high level overview on the role of the service, the total budget, overall staff complement, performance indicators and key actions for the coming year. The 2016 Budget for Regional Planning is projecting a tax requisition increase of 6.5% over This increase is due to the inclusion of an allocation for the internal Communications Program; retaining external consultants to provide additional expertise in support of an ambitious Regional Planning 2016 workplan; and the request for one new staff position to support strategic initiatives including a Data and Analytics strategy, and land use and climate change mitigation and adaptation efforts. The Budget for 2016 has been prepared to respond to direction provided in the Board Strategic Plan, support the goals of the Metro 2040: Shaping our Future, the regional growth strategy, and to facilitate land use and growth management research and policy analysis and implementation in support of a prosperous, resilient and livable region. Staff recommend endorsing the 2016 Budget and Business Plan for Regional Planning as presented under Alternative 1. Attachments (Doc. # ): Regional Planning Operating Budget Detail. 2. Regional Planning 2016 Business Plan. 3. Organizational Chart for Planning, Policy and Environment Department Regional Planning

41 B25A ALO GREATER VANCOUVER REGIONAL DISTRICT REGIONAL PLANNING 2016 BUDGET REVIEW % BUDGET BUDGET ACTUAL BUDGET BUDGET CHANGE REVENUES GVRD Requisition $ 2,686,858 $ 2,686,858 $ 2,882,410 $ 3,069, % Other External Revenues 7,769 73, Other Funds / Reserves 77,959 77,956 90, ,000 TOTAL REVENUES $ 2,772,586 $ 2,838,798 $ 2,972,410 $ 3,259, % EXPENDITURES Operating Programs: Regional Planning $ 2,006,696 $ 1,918,112 $ 2,039,963 $ 2,302,055 Environment 381, , , ,490 Housing Policy and Planning 164, , , ,591 2,552,324 2,262,078 2,771,967 3,000, % Communications Program ,000 N/A Allocation of Centralized Support Costs 220, , , ,188 (2.6%) TOTAL EXPENDITURES $ 2,772,586 $ 2,482,338 $ 2,972,410 $ 3,259, %

42 PLANNING, POLICY & ENVIRONMENT Regional Planning 2016 BUSINESS PLAN Description of services Regional Planning undertakes research and policy analysis and implementation in support of a prosperous, resilient and livable region. A primary responsibility is to develop, implement and monitor Metro 2040: Shaping our Future, the regional growth strategy. There are five main activities included within the Regional Planning function: Growth Management: This activity supports the growth management aspect of developing and implementing Metro The portfolios include agriculture and food system; Urban Centres; industrial land; and complete communities. Staff involved in each of these portfolios conduct research and policy analysis, and perform outreach and educational work. Strategic Initiatives: This activity relates to work that requires highly integrated approaches. For 2016, the proposed workplan addresses: climate change mitigation and adaptation (landuse and urban form perspective); economic prosperity; and a data/analytics strategy. Environment: This activity relates to the environmental planning work that is conducted in support of Metro 2040, as well as broader ecological health and environment issues. Housing Policy and Planning: This activity relates to the development and implementation of housing policies in support of the Regional Affordable Housing Strategy and Metro The activity includes research, policy development, advocacy and the provision of technical support to member municipalities and others. Regional Development Data and Forecasting: This activity relates to the collection and analysis of key data relevant to Metro Vancouver functions, including regional planning and utilities planning. This activity also includes emerging work to visualize and communicate data in ways that support decision-making. The activity supports monitoring of Metro The annual budget for Regional Planning is $3,259,324. Strategic directions and high level goals supported Board Strategic Plan Continue to develop and implement effective and adaptive tools and processes for achieving the goals in Metro Support the efforts of members in developing complete and livable communities. Coordinate the development of effective collaborative approaches to ensure that the region can adapt to changing conditions. Guide the development of policies, plans and tools that can lead to creative solutions for managing competing demands on land in the region. Advocate the merits of integrating regional land use and transportation planning. Develop, adopt and implement a regional climate action strategy for reducing regional greenhouse gas emissions and adapting to climate change. Support an evidence-based approach to analyzing the affordability challenges in the Metro Vancouver region

43 Metro Vancouver 2040: Shaping our Future Goal 1 - Create a compact urban area Goal 2 - Support a sustainable economy Goal 3 - Protect the environment and respond to climate change impacts Goal 4 - Develop complete communities Goal 5 - Support sustainable transportation choices Performance indicators Indicator Percentage of residential growth occurring within the Urban Containment Boundary (UCB) Percentage of new dwelling units located within Urban Centres Number of hectares of land within the Metro 2040 Agricultural designation Number of hectares added to, or removed from Industrial areas Number of hectares added to, or removed from Mixed Employment areas Historical and/or industry benchmark 2011 baseline: 97% 2014 review: 98% 2011 baseline: 26% 2014 review: 36% 2011 baseline:55, review: 55, baseline: 10, review: 10, baseline: 3, review: 3,393 Current performance 99% 98% 38% 40% 2016 performance objectives 55,240 No loss 10,133 No loss 3,390 No loss 2016 key actions Conduct ongoing implementation and monitoring of Metro Prepare and implement a municipal and public outreach strategy. Work with External Relations to prepare and implement strategic communications strategy. Develop tools and processes that contribute to agricultural land protection and viability. Enhance tools for Urban Centres and FTDAs. Support integration of land use and transportation planning. Support affordable housing efforts. Conduct Livability Survey. Migrate to digital version of Metro 2040 Annual Report. Support an industrial land strategy and associated outreach activities. Undertake legislated process for five-year review of Metro Prepare Data and Analytics strategy. Continue land use-related climate adaptation and mitigation investigation. Undertake five-year review / renewal of Ecological Health Action Plan

44 CORPORATE STRATEGIES *FTRs = 4.0 GENERAL MANAGER Department Support FTRs = 9.0 AIR QUALITY ELECTORAL AREA SERVICES REGIONAL HOUSING REGIONAL PARKS REGIONAL PLANNING Policy & Management Development Services Housing Policy MV Housing Corporation Planning & Engineering Services Planning, & Policy Analysis Ambient Air Quality Monitoring FTRs = 1.5 FTRs = 1.0 Tenant Services & Support Visitor & Operation Services Strategic Initiatives Climate Change Policy & Management Finance Parks East Environment Sampling & Investigation Operations & Maintenance Parks Central FTRs = 16.5 Data & Assessment SW Area Parks West FTRs = 29.0 NW Area FTRs = SE Area NE Area FTRs = September 24, 2015 *Positions counted under Corporate Planning Function Planning, Policy & Environment 2015 Total FTRs = Proposed FTRs = 237.6

45 To: From: Utilities Committee Simon So, General Manager, Liquid Waste Services Date: September 30, 2015 Meeting Date: October 8, 2015 Subject: 2016 Budget and Business Plans Liquid Waste Services RECOMMENDATION That the Utilities Committee endorse the 2016 Liquid Waste Services Budget and Business Plans as presented in the report 2016 Budget and Business Plans Liquid Waste Services dated September 30, 2015 and forward them to the Board Budget Workshop on October 21, 2015 for consideration. PURPOSE To present the 2016 Liquid Waste Services Budget and Business Plans for consideration by the Utilities Committee. BACKGROUND The Liquid Waste Services function comprises 17 member municipalities and one electoral area within Metro Vancouver, serving a population of approximately 2.5 million. The wastewater collection and treatment system consists of over 530 kilometers of trunk sewers, 33 pump stations and 5 treatment plants that convey and treat an average of 1.2 billion litres of wastewater per day. The urban drainage function comprises the Still Creek/Brunette, Port Moody/Coquitlam and UBC Drainage Areas. Liquid Waste Services is guided by the Board Strategic Plan and the Integrated Liquid Waste and Resource Management Plan with its primary focus on the following strategic directions and goals: Board Strategic Plan: Manage the liquid waste system in a manner that protects public health and the environment Ensure the long term resilience and ability of the liquid waste system to meet future demands and challenges in a resource constrained world Invest in programs to promote behaviour that is consistent with regional liquid waste objectives Integrated Liquid Waste and Resource Management Plan: Protect public health and the environment Use liquid waste as a resource Effective, affordable and collaborative management

46 The Metro Vancouver financial planning process is evolving to include a more formalized focus on the longer term. Beginning with the 2016 process, staff will be creating financial plans that will include a 5 year outlook. While these longer term plans are being developed, in this year of transition, staff will be focusing on the 2016 budget this fall and present the longer term view in the second quarter of BUDGET AND BUSINESS PLANS This report is structured to provide the budgetary highlights of the Liquid Waste Services functions. The Budget Details (Attachments 1 and 2) and the Business Plans (Attachment 3) are provided for the Committee s consideration. In addition, an organizational chart is attached that shows the department structure for Liquid Waste Services (Attachment 4). The 2016 Liquid Waste Services Budget and Business Plans have been prepared to respond to the strategic direction provided by the Board and key objectives included in the Integrated Liquid Waste and Resource Management Plan. These objectives include delivery of new infrastructure to meet regional growth and regulatory requirements, securing funding for secondary treatment upgrades, extensive source control programs to reduce contaminants entering the wastewater systems, pursuing opportunities for resource recovery from wastewater, and developing long term strategies for biosolids management. Operating Budget Highlights The Liquid Waste Services operating budget is proposed to increase by $2.1 million (1.5%) in 2016 for a total operating budget of $140.6 million (Attachment 1). This increase is primarily due to the need to commence removal of the Iona Island Wastewater Treatment Plan biosolids stockpile in the Vancouver Sewerage Area in preparation for the secondary upgrade and to expand the monitoring and testing programs to determine the environmental impacts of contaminants of emerging concern. The 2016 operating budget includes the following key actions: Expand the environmental monitoring program to help determine the impact of contaminants of emerging concern on the environment; Expand the Source Control program to reduce contaminant impacts on the sewer and treatment facilities, and on the environment; Identification of requirements to improve resilience of the liquid waste system to climate change and seismic risks; Commence removal and beneficial use of the Iona Island WWTP biosolids stockpile; Development of an asset management plan for Liquid Waste Services; Implement pilot projects for reclaimed water and phosphorous recovery; Complete commissioning and optimization of the new secondary clarifiers at the Northwest Langley WWTP.

47 Highlights of consulting projects anticipated to be undertaken in 2016 to respond to work plan requirements within the operating budget include the following: Grease behavior change campaign including creative, research work, media engagement ($160,000); Wipes behaviour change campaign including creative, research work, media engagement ($200,000); Identification of climate change impacts and adaption strategies ($115,000); Development of an asset management plan ($115,000); Investigation of human health and environmental impact of contaminants of emerging concern ($250,000); Ambient environment monitoring programs (multiple studies and locations $640,000); Receiving environment monitoring programs (multiple studies and locations $1,120,000); Energy and process optimization studies ($200,000). The 2016 budget for Liquid Waste Services also includes program budget for Environmental Regulation & Enforcement which issues industrial discharge permits, orders and licenses and then promotes compliance and enforces liquid waste bylaws. The proposed 2016 Environmental Regulation & Enforcement budget includes $1.64 million for the liquid waste services regulation and enforcement activities. The Communications Program budget of $390,000 includes $75,000 which was funded through corporate allocations in previous years but is now funded directly by Liquid Services, $145,000 in support of a regional Never Flush Wipes Campaign and $170,000 from the Sustainability Innovation Fund for a regional grease behavior change campaign. Proposed staffing changes are for 3.0 new full time regular (FTR) positions: 1.0 Senior Engineer to provide senior level technical input into environmental assessment reporting; 1.0 Program Manager to manage the source control program to meet Board strategic directions; and 1.0 Senior Project Engineer to manage the implementation of the $700 million Lions Gate Wastewater Treatment Plant Secondary Upgrade project. Capital Budget Highlights The Liquid Waste Services capital budget in 2016 is $126.0 million (Attachment 2). Highlights of capital projects planned for 2016 include the following: Complete procurement for the Design Build Finance contract for the Lions Gate Secondary WWTP project; Commence construction of Annacis Island WWTP Stage 5 Expansion Phase I; Complete construction of the Northwest Langley WWTP Upgrade; Complete construction of the Iona Island WWTP Solids Handling facility; Commence construction of Gilbert Trunk Sewer Twinning Phase II; Complete design and procurement for the construction of Burnaby Lake North Interceptor Twinning Phase II; Complete design and procurement for construction of the Sapperton Pumping Station.

48 Business Plan Performance Indicators Within the Liquid Waste Services Business Plans, 25 performance indicators have been developed and are being tracked. These include: Volume and Unit Cost of wastewater collected and treated; Compliance with Operational Certificates; Purchased energy use per unit volume of wastewater treated; Digester gas utilization at the wastewater treatment plants; Progress on major capital projects; Beneficial use of biosolids; Odour Complaints received from the public. The trend in these performance measures suggest that our operations continue to successfully meet regulatory and environmental requirements, significant efforts are required to deliver the GVS&DD capital plan, purchased energy use will remain flat due to energy saving measures despite commissioning of new facilities, and continued effort must be spent on expanding available markets for biosolids beneficial use. BUDGET APPROVAL PROCESS The proposed 2016 Budget and Business Plans for Liquid Waste Services are presented to the Utilities Committee for consideration and endorsement before being forwarded to the Board for consideration. The next steps of the budget process are: The 2016 Budget and Business Plans for Liquid Waste Services will be presented at the Board Budget Workshop on October 21, The Board will consider adoption of the Budget on October 30, ALTERNATIVES 1. That the Utilities Committee endorse the 2016 Liquid Waste Services Budget and Business Plans as presented in the report 2016 Budget and Business Plans Liquid Waste Services dated September 30, 2015 and forward it to the Board Budget Workshop on October 21, 2015 for consideration. 2. That the Utilities Committee make recommendations and endorse the 2016 Liquid Waste Services Budget and Business Plans as amended and forward to the Board Budget Workshop on October 21, 2015 for consideration. FINANCIAL IMPLICATIONS If the GVS&DD Board approves the 2016 Liquid Waste Services Budget and Business Plans as presented in Alternative One, the annual GVS&DD Levy will increase by 4.1% in 2016 to generate the majority of the revenue of $215.5 million required to offset projected expenditures. Expenditures include operating costs along with the allocation of corporate support costs, debt services costs and the contribution to capital. A 4.1% increase in the GVS&DD levy translates to approximately a $4 impact on the average household after taking into account population growth in the region. The increase in the levy is due primarily to an increase in operating costs associated with removal of the Iona Island Wastewater Treatment Plan biosolids stockpile in the Vancouver Sewerage Area in preparation for secondary upgrade.

49 Under Alternative Two, the Committee may wish to consider recommending amendments to the operating and/or capital budget to reflect Board strategic priorities. Any proposed changes would require an update to the GVS&DD levy for the service. SUMMARY / CONCLUSION As part of the annual budget process for 2016, Business Plans have been prepared to accompany service area Budgets in order to provide Committee and Board members with a high level overview on the role of the service, the total budget, overall staff complement, performance indicators and key actions for the coming year. The 2016 Budget for Liquid Waste Services is projecting a GVS&DD levy increase of 4.1% for This increase is primarily due to an increase in operating cost associated with removal of the Iona Island Wastewater Treatment Plant biosolids stockpile in the Vancouver Sewerage Area in preparation for secondary upgrade. Within the overall Liquid Waste Services function, operating expenditures as outlined in the 2016 Business Plans are projected to increase by $2.1 million (1.5%) over The Liquid Waste Services capital budget in 2016 is $126.0 million. The budget for 2016 has been prepared to respond to direction provided in the Board Strategic Plan, support the goals of the Integrated Liquid Waste and Resource Management Plan, and to address demands associated with upcoming infrastructure projects needed to meet growth demands and regulatory changes. Staff recommend endorsing the 2016 Budget and Business Plans as presented under Alternative One. Attachments: Liquid Waste Services Operating Budget Detail Liquid Waste Services Capital Budget Detail 3. Liquid Waste Services 2016 Business Plans 4. Organizational Chart for the Liquid Waste Services Department

50 B5A ALO GREATER VANCOUVER SEWERAGE AND DRAINAGE DISTRICT LIQUID WASTE 2016 BUDGET REVIEW Attachment % BUDGET BUDGET ACTUAL BUDGET BUDGET CHANGE REVENUES GVS&DD Levy $ 185,933,442 $ 185,933,442 $ 192,334,433 $ 200,250, % User Fees 2,585,465 2,388,936 2,451,925 2,458,761 Transfer from DCC Reserves 2,838,105 4,639,650 3,643,015 3,488,610 BOD/TSS Industrial Charges 7,777,477 7,805,930 7,558,982 8,518,412 Other External Revenues 786,996 1,263, , ,000 Other Funds / Reserves 6,533,117 4,567,445 4,273, ,000 TOTAL REVENUES $ 206,454,602 $ 206,599,209 $ 210,412,101 $ 215,501, % EXPENDITURES Operating Programs: Policy Planning and Analysis Sustainability Fund $ 1,127,000 $ 1,127,000 $ 1,127,000 $ 1,127,000 Utility Analysis and Infrastructure 1,137,640 1,113,398 1,436,155 1,254,549 Utility Policy and Planning 1,400,698 1,196,307 1,483,005 1,380,445 3,665,338 3,436,705 4,046,160 3,761,994 (7.0%) Management Systems and Utility Services Annacis Research Centre 506, , , ,177 Department Technical Training 1,023,547 1,001,146 1,323,407 1,175,345 Dispatch 256, , , ,801 Energy Management 211, , , ,900 Engineers in Training 457, , , ,218 Engineering Standards 102,649 89, , ,725 Liquid Waste Residuals 11,124,485 12,243,101 12,332,899 14,193,588 Management Systems Utility Services 1,238,615 1,016,404 1,351,895 1,500,924 Records Management 93,488 92,850 95,880 97,903 Security Enhancements 404, ,720 - Utility Voice Radio , ,904 Wastewater Research and Innovation 788, ,010 1,169,172 1,636,818 16,207,099 16,229,933 18,213,413 20,358, % Environmental Management and Quality Control Environmental Management and Quality Control 9,088,771 8,619,189 9,180,354 9,949,625 Source Compliance Monitoring 312, , , ,939 9,401,720 8,945,370 9,500,525 10,281, % Project Delivery Minor Capital Projects 7,215,576 5,582,354 7,155,501 6,293,122 Public Involvement 1,094, ,370 1,153,713 1,123,387 8,310,273 6,366,724 8,309,214 7,416,509 (10.7%) Operations and Maintenance Lake City Operations 962, , , ,225 Maintenance 27,862,352 27,774,839 28,657,103 29,385,611 Operating Contingency 500, ,000 - SCADA Control Systems 992, , , ,066 Trucked Liquid Waste 265, , , ,469 Urban Drainage 1,151, ,849 1,126,617 1,045,653 Wastewater Collection 11,712,414 10,615,525 12,381,048 11,713,995 Administration and Major Project Services , ,357 Wastewater Treatment 32,135,020 32,175,365 32,494,310 33,310,774 75,582,400 73,385,085 78,218,423 78,559, % Administration and Department Support 1,984,402 1,825,929 1,908,831 1,957, % Communications Program ,000 N/A Environmental Regulation and Enforcement 1,659,231 1,616,924 1,672,774 1,643,817 (1.7%) Allocation of Centralized Costs 18,150,137 18,167,707 16,599,569 16,192,380 (2.5%) Total Operating Programs 134,960, ,974, ,468, ,560, % Debt Service 15,427,253 13,376,072 16,115,428 14,689,772 (8.8%) Contribution to Capital 56,066,749 53,282,781 55,827,764 60,250, % TOTAL EXPENDITURES $ 206,454,602 $ 196,633,230 $ 210,412,101 $ 215,501, %

51 B8 GREATER VANCOUVER SEWERAGE & DRAINAGE DISTRICT CAPITAL PROGRAMS & PROJECT DETAILS LIQUID WASTE SERVICES 2016 BUDGET Attachment CAPITAL BUDGET ORIGINAL TOTAL PROJECT COSTS CHANGE IN TOTAL PROJECT COSTS TOTAL PROJECT COSTS CAPITAL EXPENDITURES SD Infrastructure Growth Capital Approved Projects in Progress FSA - Annacis Outfall System Design - Outfall $1,500,000 $6,000,000 $8,000,000 $14,000,000 FSA - Annacis Outfall System Design - Surge Control 650,000 3,000,000-3,000,000 FSA - Burnaby Lake North Interceptor Phillips to Sperling Section Detailed Design 1,000,000 3,200,000-3,200,000 FSA - Katzie Genset Assessment 15,000 50,000-50,000 FSA - Katzie Pump Upgrade Design 90, , ,000 FSA - Langley Pump Station Upgrade Prelim Design 200, , ,000 FSA - Marshend Pump Station Capacity Upgrade Con Des 65, , ,000 FSA - Marshend Pump Station Capacity Upgrade Prelim Des 500,000 1,000,000-1,000,000 FSA - North Road Trunk Sewer Detail Design 362, , ,000 FSA - NSI 104th Ave Extension 1,000,000 6,800,000-6,800,000 FSA - NWLWWTP Phase 1 Construction 4,000,000 55,300,000-55,300,000 FSA - Queensborough Pump Station Replacement Detailed Design 600,000 1,500,000-1,500,000 FSA - Sapperton Forcemain Pump Station Connections Design 400,000 1,000,000-1,000,000 FSA - Sapperton Pump Station Design 1,600,000 5,600,000-5,600,000 FSA - Sapperton Pump Station Equipment & Construction 950,000 76,400,000-76,400,000 FSA - South Surrey Interceptor Johnston Section Construction (Pre Build) 2,000,000 18,000,000-18,000,000 FSA - South Surrey Interceptor Johnston Section Det Design & Property Purchase 1,500,000 6,600,000-6,600,000 FSA - Sperling PS Increase Pump Capacity Constr & Propery Acquisition 1,000,000 3,000,000-3,000,000 FSA - SSI - King George Section - Odor Control Facility (OCF) and Grit Chamber 1,500,000 13,500,000-13,500,000 LSA - Lulu Island WWTP Digester No 3 Pre Design 520, , ,000 VSA - Hastings Sanitary Trunk Sewer Design 468,000 1,304,000-1,304,000 VSA - Hastings Sanitary Trunk Sewer Prelim Design 200, , ,000 VSA - Southwest Marine Drive Interceptor Twinning Pre-design 150, , , New Projects FSA - Burnaby Lake North Interceptor Phillips to Sperling Section Construction 50,000 26,690,000-26,690,000 FSA - North Road Trunk Sewer Phase 2 Detailed Design 138, , ,000 FSA - NWLWWTP Options Conceptual Design 1,500,000 5,000,000-5,000,000 FSA - Port Moody PS Upgrade Preliminary Design 600, , ,000 LSA - Lulu Island WWTP Digester No 3 Detailed Design 300,000 4,100,000-4,100,000 NSA - North Vancouver Interceptor - Lynn Branch Pre-build Construction 50,000 3,500,000-3,500,000 NSA - North Vancouver Interceptor - Lynn Branch Pre-build Design 150, , ,000 VSA - Hastings Sanitary Trunk Sewer Construction 50,000 13,300,000-13,300,000 VSA - Southwest Marine Drive Interceptor Twinning Design 100,000 3,500,000-3,500,000 $23,208,000 $262,971,000 $8,000,000 $270,971,000 SD Infrastructure Growth: Annacis Stage 5 Expansion Capital Approved Projects in Progress FSA - Annacis Stage 5 Expansion Phase 1 T1 & T2 18,000, ,500, ,500,000 FSA - Annacis Stage 5 Expansion Phase 2 Detailed Design 2,500,000 17,000,000-17,000,000 FSA - Annacis Stage 5 Expansion Phase 2 Pre Design 400,000 5,000,000-5,000, New Projects FSA - Annacis Stage 5 Expansion Phase 2a Construction 5,000, ,000, ,000,000 $25,900,000 $445,500,000 $0 $445,500,000

52 B CAPITAL BUDGET ORIGINAL TOTAL PROJECT COSTS CHANGE IN TOTAL PROJECT COSTS TOTAL PROJECT COSTS SD Infrastructure Maintenance Capital Approved Projects in Progress FSA - AIWWTP Gravity Thickner and DAF Steel Repair and Recoating 600,000 2,000,000-2,000,000 FSA - AIWWTP Replacement of CDAC Equipment in Galleries Detailed Design 195, , ,000 FSA - Annacis Island WWTP - CDAC Component Replacement and Upgrade Program 520,000 1,500,000-1,500,000 FSA - Annacis MCC , , Replacement 640,000 2,844,000-2,844,000 FSA - Annacis Secondary Clarifier Corrosion Repair and Leveling Phase 2 Constr 1,500,000 12,000,000-12,000,000 FSA - Annacis Secondary Clarifier Corrosion Repair and Leveling Phase 2 Design & 1,200,000 10,000,000-10,000,000 Prepurchase FSA - Cost Allocation Billing Network (Combined 96 F4) 150,000 5,230,000-5,230,000 FSA - New West Interceptor Grit Chamber Design 150, , ,000 FSA - NWL WWTP 25 kv Substation Replacement Design Phase II 150, , ,000 FSA - NWL WWTP CDAC System Hardware Upgrade Construction 200, , ,000 FSA - NWL WWTP CDAC System Hardware Upgrade Detailed Design 200, , ,000 FSA - Royal Ave. Sewer Pump Station (RYA) Building Expansion & Electrical Upgrade Det Des 200, , ,000 FSA - Royal Ave. Sewer Pump Station (RYA) Building Expansion & Electrical Upgrade 154, , ,000 Preliminary Design LSA - Gilbert/Brighouse Trunk Pressure Sewer Twinning Phase 2 Construction 5,000,000 17,700,000-17,700,000 LSA - Gilbert/Brighouse Trunk Pressure Sewer Twinning Phase 2 Design 800,000 3,700,000-3,700,000 LSA - Gilbert/Brighouse Trunk Pressure Sewer Twinning Phase 3 Design 700,000 1,000,000-1,000,000 NSA - Glen Eagles Pump Station 1 Rehab 500,000 1,300,000-1,300,000 NSA - Glen Eagles Pump Station 2 to 5 Rehab Design 450,000 1,200,000-1,200,000 NSA - Lions Gate Control and Instrumentation Replacement , , ,000 VSA - IIWWTP Replacement of CoGen Control System Constr 1,000,000 2,000,000-2,000,000 VSA - IIWWTP Sludge Thickener #1 Refurbishment Construction 500,000 2,000,000-2,000,000 VSA - Iona Grit System Upgrade Constr 2,000,000 8,100,000-8,100,000 VSA - Iona Inlet modifications 50,000 2,260,000-2,260,000 VSA - Iona Island Control & Instrumentation Replacement ,000 2,750,000-2,750,000 VSA - Iona MCC/Power Distribution Assess/Replace , , ,000 VSA - Iona MCC/Power Distribution Assess/Replace Future Years 300,000 1,965,000-1,965,000 VSA - Iona Solids Handling Upgrade Project Construction 5,000,000 26,000,000-26,000, New Projects FSA - AIWWTP Replacement of CDAC Equipment in Galleries Construction 400,000 2,500,000-2,500,000 FSA - AIWWTP Station Battery Replacement - PHASE 1 Construction 165, , ,000 FSA - AIWWTP Station Battery Replacement - PHASE 1 Detailed Design 233, , ,000 FSA - Baynes Road PS VFD Replacement Detailed Design 325, , ,000 FSA - Cloverdale PS VFD Replacement Construction 700, , ,000 FSA - Cloverdale PS VFD Replacement Detailed Des 170, , ,000 FSA - Crescent Beach FM - Replacement Preliminary Design 150, , ,000 FSA - NWL WWTP 25 kv Substation Replacement Construction 275,000 7,075,000-7,075,000 FSA - Royal Ave. Sewer Pump Station (RYA) Building Expansion & Electrical Upgrade Constr 800,000 3,450,000-3,450,000 FSA - South Surrey Interceptor - Dredging Impacts Preliminary Design 500, , ,000 FSA - WWTPs Electrical System Studies & Upgrades Detailed Design 165, , ,000 LSA - Gilbert/Brighouse Trunk Pressure Sewer Twinning Phase 3 Construction 4,400,000 13,400,000-13,400,000 LSA - Gilbert/Brighouse Trunk Pressure Sewer Twinning Phase 4 Construction 1,000,000 28,200,000-28,200,000 LSA - LIWWTP - Process Waste Drainage (PWD) Replacement Construction 500, , ,000 LSA - LIWWTP RSP Isolation Gates Construction 250, , ,000 VSA - IIWWTP Maintenance and Administration Building HVAC Construction 350, , ,000 VSA - IIWWTP MCC/Power Distribution Assess/Replace - Phase 2 300,000 1,000,000-1,000,000 VSA - IIWWTP Sed Tank Trough Replacement Construction 50,000 1,550,000-1,550,000 VSA - IIWWTP Sed Tank Trough Replacement Detailed Design 50,000 50,000-50,000 VSA - IIWWTP Water Supply Preliminary Design 600, , ,000 $34,442,000 $172,017,000 $0 $172,017,000

53 B CAPITAL BUDGET ORIGINAL TOTAL PROJECT COSTS CHANGE IN TOTAL PROJECT COSTS TOTAL PROJECT COSTS SD Infrastructure Risk Management Capital Approved Projects in Progress FSA - AIWWTP Cogeneration Backup Power Predesign & Detail Design 1,500,000 9,000,000-9,000,000 FSA - AIWWTP Cogeneration Backup Power Prepurchase 5,000,000 25,000,000-25,000,000 FSA - AIWWTP PST Area Walkway & Column Remediation Construction 700,000 2,800,000-2,800,000 FSA - AIWWTP SCL Flow Balancing Construction 600,000 2,000,000-2,000,000 FSA - FSA Sewer Seismic Upgrades Design 200, , ,000 FSA - Katzie Pump Station SSO Management Detail Des 500,000 3,250,000-3,250,000 FSA - Katzie Pump Station SSO Management Prelim Des 500,000 1,000,000-1,000,000 FSA - New Westminster Interceptor Repair Columbia St. Section Constr 1,000,000 4,680,000-4,680,000 FSA - Ocean Park Trunk Crescent Section (OPC) Pipe Rehabilitation/Replacement Design 250, , ,000 FSA - SSI Sulfide Odour and Corrosion Control Study Detailed Design 460, , ,000 LSA - LIWWTP PE Bypass Gates Construction 100, , ,000 NSA - Glen Eagles Forcemain Replacement Construction 100,000 2,150,000-2,150,000 VSA - 8th Avenue Interceptor Air Treatment Facilities Prelim Design 150, , ,000 VSA - Highbury Interceptor Air Treatment Facilities 2,000,000 6,000,000 1,000,000 7,000,000 VSA - Highbury Interceptor North Arm Crossing - Upgrade of Siphons Constr 1,055,000 12,000,000-12,000,000 VSA - IIWWTP Sedimentation Tank Effluent Gates Construction 300,000 1,000,000-1,000, New Projects FSA - AIWWTP Automation of Influent Gates Design 500, , ,000 FSA - AIWWTP Cogeneration Backup Power Construction 600,000 14,600,000-14,600,000 FSA - AIWWTP SCL Flow Control Construction Phase 1 500, , ,000 FSA - New West CSO Tank Grit Chamber & Sinkhole Repair Detailed Design 200, , ,000 NSA - Glen Eagles Forcemains Replacement Phase 2 Detailed Design 250, , ,000 VSA - 8th Avenue Interceptor Air Treatment Facilities Detailed Design 200,000 1,000,000-1,000,000 VSA - IIWWTP - Biogas Lines Relocation Detailed Design 780, , ,000 VSA - VSA Emergency Backup Power Construction Phase 1 2,700,000 9,300,000-9,300,000 VSA - VSA Emergency Backup Power Detailed Design 700,000 1,500,000-1,500,000 VSA - VSA Emergency Backup Power Preliminary Design 400, , ,000 $21,245,000 $100,763,000 $1,000,000 $101,763,000 SD Infrastructure Upgrade Capital Approved Projects in Progress FSA - AIWWTP Ammonia Removal Preliminary Design 50, , ,000 FSA - AIWWTP Replacement of Protective Relays Det Design & Equip PrePurchase 295, , ,000 FSA - AIWWTP Secondary Bypass Construction 800,000 1,275,000-1,275,000 FSA - All WWTPs Power Quality Monitoring & Outage Alarming Network Prepurchase 300, , ,000 FSA - FSA Wastewater Meter Upgrades 100, , ,000 FSA - SSI - NDI Relocations Construction 500,000 6,641,000-6,641,000 FSA - SSI Delta Section Rehabilitation from River Road to Fraser River Construction 1,500,000 2,600,000-2,600,000 LSA - LIWSA Wastewater Meter Upgrades 50, , ,000 NSA - Lions Gate Sludge Thickener No ,000 2,900,000-2,900,000 NSA - NSSA Wastewater Meter Upgrades 50, , ,000 VSA - IIWWTP Grit Channel Effluent Gates and PA Influent Channel Gates Construction 800,000 1,610,000-1,610,000 VSA - IIWWTP Provision of a Redundant 12.5 kv Feeder to Switch House Constr 280, , ,000 VSA - VSA Wastewater Meter Upgrades 40, , , New Projects FSA - AIWWTP Replacement of Protective Relays Construction 400,000 2,500,000-2,500,000 FSA - All WWTPs Power Quality Monitoring & Outage Alarming Network Constr 400,000 2,200,000-2,200,000 FSA - Big Bend Forcemain - Gate Replacement Preliminary Design 100, , ,000 FSA - NWL Disinfection System Design 250, , ,000

54 B CAPITAL BUDGET ORIGINAL TOTAL PROJECT COSTS CHANGE IN TOTAL PROJECT COSTS TOTAL PROJECT COSTS FSA - SSI Influent Control Chamber Repair and Replace Gates Construction 900,000 1,170,000-1,170,000 FSA - Westridge PS 1 & 2 Upgrades Preliminary Design 140, , ,000 LSA - LIWWTP Power Reliability Preliminary Design 300, , ,000 VSA - IIWWTP Biosolids Dewatering Facility Preliminary Design 800, , ,000 VSA - IIWWTP Digester 4 Roof Replacement & Mixing Upgrade Construction 50,000 10,300,000-10,300,000 $8,755,000 $36,791,000 $0 $36,791,000 SD Infrastructure Upgrade: Secondary Treatment Capital Approved Projects in Progress NSA - Lions Gate Plant Upgrade Design 6,800,000 79,000,000-79,000,000 VSA - Iona Secondary Treatment Upgrade Project Definition 2,500,000 16,500,000-16,500,000 $9,300,000 $95,500,000 $0 $95,500,000 SD Opportunity Capital Approved Projects in Progress FSA - AIWWTP IPS VFD Replacement (Pumps 1 to 3) 500,000 1,050,000-1,050,000 FSA - AIWWTP TF VFD Replacement (Pumps 1 to 4) 450, , ,000 FSA - Fraser Sewerage Area Integrated Resource Recovery (IRR) Study 300,000 1,200,000-1,200,000 FSA - Sapperton Pump Station Sewage Heat Recovery Design 125, , ,000 LSA - LIWWTP Biogas Clean-up Project 1,500,000 10,400,000-10,400,000 LSA - Lulu Island Sewerage Area Integrated Resource Recovery (IRR) Study 100,000 1,000,000-1,000, New Projects FSA - North Surrey Interceptor - Port Mann Section - Odour Control Preliminary Design 100, , ,000 LSA - Gilbert Trunk Sewage Heat Recovery Project Design 35,000 80,000-80,000 $3,110,000 $14,900,000 $0 $14,900,000 TOTAL CAPITAL EXPENDITURES $125,960,000 $1,128,442,000 $9,000,000 $1,137,442,000

55 Attachment BUSINESS PLAN LIQUID WASTE SERVICES Policy, Planning and Analysis Description of services This business area provides policy development and implementation strategy development; utility analysis and modeling work for the sewer system and wastewater treatment plants (WWTPs); implementation of the key components of the Integrated Liquid Waste and Resource Management Plan (ILWRMP); facilitation of plans and strategies to comply with the GVS&DD Act, Provincial Environmental Management Act, and Federal legislation; implementation of source control bylaws to protect the environment, workers and infrastructure from non-domestic industrial and commercial discharges to the sanitary sewer; processing of municipal requests with respect to new membership in the GVS&DD and sewerage or drainage area amendments; source control policy development; and the project definition phase of the Iona WWTP secondary upgrade. Liquid Waste environmental regulation and enforcement negotiates and issues permits and orders, promotes compliance, and enforces liquid waste bylaws. According to a discharger pays principle, these regulatory costs are mostly recovered through fees. The operating budget for this business area is $3,761,994 and the capital budget is $2,500,000. The annual budget for liquid waste regulation and enforcement is $1,643,817 and this work is provided through Legal and Legislative Services, Environmental Regulation and Enforcement. Strategic directions and high level goals supported Board Strategic Plan Manage the liquid waste system in a manner that protects public health and the environment. Ensure the long-term resilience and ability of the liquid waste system to meet future demands and challenges in a resource-constrained world. Invest in programs to promote behaviour that is consistent with regional liquid waste objectives. Integrated Liquid Waste and Resource Management Plan: Goal 1 - Protect public health and the environment Goal 2 - Use liquid waste as a resource Goal 3 - Effective, affordable and collaborative management Performance indicators Indicator Wastewater volume treated per capita during dry weather (litres per day per capita) Historical and/or industry benchmark MV 5-year average ( ): 426 Current performance 2016 performance objective 2014: Total length of combined sewers remaining in the municipal systems 2001: 1,186 km 2014: 1,052 km 1,030 km Annual number of wet-weather related sanitary sewer overflow (SSO) events from Metro Vancouver sewers MV 5-year average ( ): : 16 0

56 Indicator Total number of permits for discharges to sanitary sewers that must be managed and monitored Historical and/or industry benchmark Current performance 2016 performance objective 2014: YTD: key actions Commence the Iona Island Secondary Treatment Plant Upgrade - Project Definition Phase and community engagement work. Commence implementation of the Fermentation Operations Bylaw Commence development of amendments to the Food Sector Grease Interceptor Bylaw to further regulate the use of food grinders and other similar technologies. Commence development of sector-specific source control bylaws for hospitals, care facilities and research laboratories. Commence development of combined sewer separation plans for catchments serving the Cambie Street Corridor in the Vancouver Sewerage Area in conjunction with the City of Vancouver. Commence validation of the Vancouver Sewerage Area hydraulic model using new rainfall and flow data in conjunction with the City of Vancouver and the City of Burnaby. Commence updating of the drainage model for the Still Creek Brunette Drainage Area

57 2016 BUSINESS PLAN LIQUID WASTE SERVICES Management Systems & Utility Services Description of services This business area is responsible for the following Liquid Waste Services functions: business and financial planning and management; capital budget planning; asset management; performance management; safety management; research and opportunity projects; residuals beneficial use management; energy management; the Technical Training and Procedures Program (TTAP); and the Annacis Research Centre. The operating budget for this business area is $20,358,303 and the capital budget is $560,000. Strategic directions and high level goals supported Board Strategic Plan Manage the liquid waste system in a manner that protects public health and the environment. Ensure the long-term resilience and ability of the liquid waste system to meet future demands and challenges in a resource-constrained world. Invest in programs to promote behavior that is consistent with regional liquid waste objectives. Integrated Liquid Waste and Resource Management Plan Goal 1 - Protect public health and the environment Goal 2 - Use liquid waste as a resource Goal 3 - Effective, affordable and collaborative management Performance indicators Indicator Historical and/or industry benchmark Current performance 2016 performance objective Percent of biosolids beneficially used Number of event-days at Annacis Research Centre MV 5-year average ( ): 98% MV Historical (2013): : 86% 100% 2014:

58 2016 key actions Complete two Sustainability Innovation Projects at the Annacis Research Centre: automation of the Struvite Tower for phosphorus recovery; and pilot test disc filter technologies to reclaim water from liquid waste. Complete the identification of climate change impacts to Liquid Waste Services infrastructure. Commence removal and beneficial use of biosolids from the Iona Island biosolids stockpile. Continue the development of Asset Management Plan for Liquid Waste Services. Continue development of an Energy Management System that supports all Metro Vancouver operations and identification and implementation of energy savings projects. Continue production and implementation of deliverables; and develop an ongoing support model for the Technical Training program. Continue with research projects at the Annacis Research Centre that are aimed at developing compact treatment processes; optimizing odour management options; and developing advanced ammonia removal processes. Continue participation in research projects being performed by wastewater research partners including hydrothermal processing technology; anaerobic/aerobic Digestion; high efficiency aeration; aerobic granular biomass project. Continue to develop external research markets for Annacis Research Centre

59 LIQUID WASTE SERVICES Environmental Management & Quality Control 2016 BUSINESS PLAN Description of services This business area is responsible for environmental management and reporting of environmental and wastewater quality and treatment required by the Integrated Liquid Waste and Resource Management Plan (ILWRMP), wastewater treatment plants (WWTPs) Operational Certificates and provincial and federal legislation, regulations and guidelines, including reports required under the Environment Canada Wastewater Systems Effluent Regulations (WSER). This work includes environmental management, modeling, risk assessments and compliance monitoring of authorized sewer discharges, combined and sanitary sewer overflows (CSOs and SSOs), monitoring of recreational water quality in the region, and receiving and ambient environment monitoring. The division provides analytical services for liquid waste regulatory, quality control and process control purposes. It also performs analyses of source water and drinking water from the regional and municipal water distribution system, in order to meet the BC Drinking Water Protection Regulation requirements. The division provides an independent quality control function for the GVS&DD wastewater utility; develops and maintains Environmental Management Systems to support continuous improvement of Metro Vancouver s liquid waste operations; implements environmental stewardship and source control initiatives and monitoring programs including odour monitoring, management of stormwater and urban drainage; and acts as a linkage with senior governments and environmental stakeholders. The annual budget for this business area is $ 10,281,564. Strategic directions and high level goals supported Board Strategic Plan: Manage the liquid waste system in a manner that protects public health and the environment. Ensure the long-term resilience and ability of the liquid waste system to meet future demands and challenges in a resource-constrained world. Invest in programs to promote behaviour that is consistent with regional liquid waste objectives. Integrated Liquid Waste and Resource Management Plan: Goal 1 - Protect public health and the environment Goal 2 - Use liquid waste as a resource Goal 3 - Effective, affordable and collaborative management In addition, to assure that the conditions of the Minister of Environment s approval of the Integrated Liquid Waste and Resource Management Plan are met

60 Performance indicators Indicator Number of analytical tests performed for regulatory compliance and operational purposes in the Chemistry Laboratory Number of analytical tests performed for regulatory compliance and operational purposes in the Process Laboratory Percent of recreational water quality results that do not meet the applicable criteria Percent of sewer collection system with established baseline for concentrations of metals for the Source Control and Biosolids Management Programs Historical and/or industry benchmark MV 5-year average ( ): 66,321 MV 5-year average ( ): 90,000 MV 5-year average ( ): 0.4% Current performance 2016 performance objective 2014: 107,556 80, : 93,083 90, : 8.8% 2.4% 2013: 7% 2014: 27% 93% 2016 key actions Implement environmental monitoring programs to determine the impact of contaminants of emerging concerns on the environment. Commence development of a standard operating procedure for assessment of endocrine disrupting substances in wastewater using yeast assay. Commence development of a prioritized inventory of environmental risks associated with development of the Environmental Management System. Incorporate the findings of the risk assessment and update the SSO monitoring protocol. Undertake Receiving Environment Effects Survey at the Clarke Drive CSO outfall. Commence Preliminary Site Investigation of contamination at Iona Island WWTP as part of the Iona Island WWTP secondary upgrade. Update the Water Quality Index for Burrard Inlet, Fraser River and Boundary Bay. Complete the 2015 GVS&DD Environmental Management & Quality Control Annual Report

61 2016 BUSINESS PLAN LIQUID WASTE SERVICES Project Delivery Description of services This business area is responsible for the delivery of all major and minor capital projects (civil, mechanical, structural and electrical engineering along with public involvement, environmental and other related disciplines) identified in the GVS&DD long range plan and minor operating projects. The operating budget for this business area is $7,416,509 and the capital budget is $111,317,000 Strategic directions and high level goals supported Board Strategic Plan Manage the liquid waste system in a manner that protects public health and the environment. Ensure the long-term resilience and ability of the liquid waste system to meet future demands and challenges in a resource-constrained world. Invest in programs to promote behavior that is consistent with regional liquid waste objectives. Integrated Liquid Waste and Resource Management Plan Goal 1 - Protect public health and the environment Goal 2 - Use liquid waste as a resource Goal 3 - Effective, affordable and collaborative management Performance indicators Indicator Historical and/or industry benchmark Current performance 2016 performance objective Percent of project complete: AIWWTP Stage 5 Expansion -Phase 1 n/a AIWWTP Outfall - Design n/a AIWWTP Cogeneration - Design n/a 2015 YTD: 21% 2015 YTD: 17% 2015 YTD: 30% 29% 35% 90% IIWWTP Solids Handling - Construction n/a 2015 YTD: 7% 70% NLWWTP Phase I Upgrade - Construction n/a Burnaby Lake North Interceptor -Design n/a Gilbert Trunk Sewer - Design n/a Sapperton Pumping Station - Design n/a 2015 YTD: 80% 2015 YTD: 18% 2015 YTD: 32% 2015 YTD: 48% 100% 38% 60% 100%

62 2016 key actions Complete procurement for the Design-Build-Finance Control for Lions Gate Secondary WWTP Project. Complete construction of NLWWTP Upgrade. Complete construction of new IIWWTP Solids Handling Screening and De-gritting Building and Thickener No. 3 and complete refurbishment of Thickener No. 1. Commence construction of AIWWTP Stage 5 Expansion project. Complete construction of AIWWTP CDAC Building. Complete design and procurement for the AIWWTP co-generation facility. Commence construction of Gilbert Trunk Sewer Phase II. Complete design and procurement for construction of Burnaby Lake North Interceptor Phase II. Complete design and procurement for construction of Sapperton Pumping Station. Complete Seismic Risk Mitigation Plan for LWS facilities

63 2016 BUSINESS PLAN LIQUID WASTE SERVICES Operations & Maintenance Description of services This business area is responsible for managing all matters related to the operations and maintenance of the five regional wastewater treatment plants (WWTPs) and the sewer collection systems. This includes long-range facility planning and day-to-day management of the infrastructure assets and supporting infrastructure (works yards, communications systems, and control systems) and ultimately for returning to the environment treated water that meets provincial and federal regulations and recovering as much resources from the wastewater as is economically feasible. This business area is also responsible for managing the operations and maintenance of Urban Drainage areas including the Still Creek/Brunette, Port Moody/Coquitlam and UBC Drainage areas. The operating budget for this business area is $78,559,150 and the capital budget is $11,533,000. Strategic directions and high level goals supported Board Strategic Plan Manage the liquid waste system in a manner that protects public health and the environment. Ensure the long-term resilience and ability of the liquid waste system to meet future demands and challenges in a resource-constrained world. Invest in programs to promote behavior that is consistent with regional liquid waste objectives. Integrated Liquid Waste and Resource Management Plan Goal 1 - Protect public health and the environment Goal 2 - Use liquid waste as a resource Goal 3 - Effective, affordable and collaborative management Performance indicators Indicator Annual volume of liquid waste collected and treated, million litres (ML) Operating cost per million litres processed, collection and treatment ($/ML) Energy use in the collection and treatment of liquid waste kilowatt hour per million litres (kwh/ml ) Historical and/or industry benchmark MV 5-year average ( ): 437,907 MV 5-year average ( ): $280 MV 5-year average ( ): 189 Current performance 2016 performance objective 2014: 440, , : $295 $ :

64 Indicator Historical and/or industry benchmark Current performance 2016 performance objective Percent of digester gas used at the Wastewater Treatment Plants Compliance with treatment plant Operational Certificates (%) Number of reported events of sanitary sewer overflows (SSOs): non-weather related Number of odour complaints received MV 5-year average ( ): 65% MV 5-year average ( ): 99.93% MV 5-year average ( ): 7.8 MV 5-year average ( ): : 66% 72% 2014: 99.86% 100% 2014: : 26 < key actions Complete commissioning of the new Computerized Data Acquisition and Control building at Annacis Island WWTP. Complete commissioning and optimization of the new Secondary Clarifiers at Northwest Langley WWTP. Complete updates to emergency response plans for all O&M Divisions. Complete new safety structures at Wastewater Treatment Plants and Sewer Collections to increase workplace safety and to reduce musculoskeletal injuries. Commence review of water, energy and chemical use in the divisions and expand opportunities for re-use and/or optimization. Initiate O&M strategies and resource requirements to support Enterprise Asset Management. Implement odour and corrosion control plans for sewer collections and treatment plants. Implement mobile technologies for maintenance work management

65 Attachment 4 GENERAL MANAGER Department Support FTRs = 19.0 POLICY, PLANNING & ANALYSIS MANAGEMENT SYSTEMS & UTILITY SERVICES ENVIRONMENTAL MANAGEMENT & QUALITY CONTROL PROJECT DELIVERY OPERATIONS & MAINTENANCE Utility Policy & Planning Management Systems Environmental Management Treatment Plants Wastewater Treatment Utility Analysis & Infrastructure Residuals Management Quality Control Collection Services Sewer Collections Sustainability Fund Utility Research & Innovation FTRs = 38.0 Public Involvement Urban Drainage FTRs = 16.0 Safety Management FTRs = 59.2 Maintenance Technical Training & Procedures FTRs = FTRs = September 24, 2015 Liquid Waste Services 2015 Total FTRs = Proposed FTRs = 507.6

66 To: From: Utilities Committee Tim Jervis, General Manager, Water Services Date: September 30, 2015 Meeting Date: October 8, 2015 Subject: 2016 Budget and Business Plans Water Services RECOMMENDATION That the Utilities Committee endorse the 2016 Water Services Budget and Business Plans as presented in the report 2016 Budget and Business Plans Water Services dated September 30, 2015 and forward them to the Board Budget Workshop on October 21, 2015 for consideration. PURPOSE To present the 2016 Water Services Budget and Business Plans for consideration by the Utilities Committee. BACKGROUND The Water Services function comprises 18 member municipalities, one electoral area and one treaty First Nation within Metro Vancouver, serving a population of approximately 2.5 million. Drinking water is collected from within three protected mountain watersheds covering an area of approximately 60,000 hectares. The system itself comprises six mountain storage lakes, two major dams, two major water treatment facilities, over 500 km of large diameter transmission mains, 25 storage reservoirs, 19 pump stations and 8 re chlorination stations. Water Services is guided by the Board Strategic Plan and the Drinking Water Management Plan (DWMP), with a focus on the following strategic directions and goals: Board Strategic Plan: Maintain Metro Vancouver s world class water system that provides safe, clean drinking water and further develop its capacity to meet future needs. Ensure the long term resilience and ability of the regional drinking water system to meet future demands and challenges in a resource constrained world. Expand public awareness of the quality of Metro Vancouver drinking water and the importance of conserving it. Drinking Water Management Plan: Provide clean, safe drinking water. Ensure the sustainable use of water resources. Ensure the efficient supply of water

67 The Metro Vancouver financial planning process is evolving to include a more formalized focus on the longer term. Beginning with the 2016 process, staff will be creating financial plans that will include a 5 year outlook. While these longer term plans are being developed, in this year of transition, staff will be focusing on the 2016 budget this fall and present the longer term view in the second quarter of BUDGET AND BUSINESS PLANS This report is structured to provide the budgetary highlights of the Water Services function. The Budget Details (Attachments 1 and 2) and the Business Plans (Attachment 3) are provided for the Committee s consideration. In addition, an organizational chart is attached that shows the department structure for Water Services (Attachment 4). The 2016 Water Services Budget and Business Plans have been prepared to respond to the strategic direction provided by the Board and meet the goals of the DWMP. The budget also provides for comprehensive medium and long term water supply planning, a targeted regional water conservation campaign focused on both indoor and outdoor water use, ongoing improvements in system capacity and resiliency, and the operation and maintenance of a cost effective, reliable system to supply, treat and deliver high quality water to a growing region. Operating Budget Highlights The Water Services operating budget is proposed to increase by $0.5 million (0.5%) in 2016 for a total operating budget of $100.1 million (Attachment 1). This increase is primarily due to increases in Provincial water rental fees and increased disposal costs for water treatment plant residuals. The 2016 operating budget includes the following key actions: Develop a Comprehensive Regional Water System Plan that aligns with the Board Strategic Plan. Secure additional water allocation for the Coquitlam source as per the Coquitlam Water Use Plan. Development of an asset management plan for Water Services. Initiate environmental studies associated with future raising of the Seymour Falls Dam. Commence full year of Barnston/Maple Ridge Pump Station operations. Complete removal of Surrey Delta Mains from Pattullo Bridge. Highlights of consulting projects anticipated to be undertaken in 2016 to respond to work plan requirements within the operating budget include the following: Water Conservation Campaign including creative, research work and media engagement ($360,000) Water main condition assessments, proximal works designs and scour protection ($240,000). Development of asset management plan ($144,000). Secure rights for additional water from the Coquitlam source as per the Coquitlam Water Use Plan ($100,000). Support the assessment of risk from changing climates and develop an actionable strategy for Water Services ($100,000). Alpine Lake Dam Seismic Assessments ($100,000)

68 Other expenditure highlights include water treatment plant computerized data acquisition and control system (CDACS) network hardware and software upgrades, and purchase of a multi beam sounding system for marine crossing surveys (shared with Liquid Waste Services). The Communications Program budget of $435,000 includes $175,000 which was funded through corporate allocations in previous years but is now funded directly by Water Services, and $260,000 from the Sustainability Innovation Fund in support of a regional water conservation campaign. Proposed staffing changes are for 3.0 new full time regular (FTR) positions: 1.0 position to provide enhanced system modeling for long term growth planning; 1.0 position to manage water capital improvement projects at the Capilano and Coquitlam sources and 1.0 position conversion from fulltime temporary to support watershed management programs in the Lower Seymour Conservation Reserve (LSCR). Capital Budget Highlights The Water Services capital budget in 2016 is $179,483,000 (Attachment 2). Highlights of capital projects planned for 2016 include the following: Commence project definition for infrastructure improvements necessary to store, treat and convey additional supply from the Coquitlam source. Complete construction of the Capilano Main No. 9, South Delta Main No. 1 Replacement and Port Mann Main No. 2 (North) projects. Complete construction of Lynn Valley Reservoir and Hellings Tank Seismic Upgrade. Complete design and commence construction of Clayton Reservoir. Complete design of Douglas Road Main No. 2 (Still Creek Section). Commence construction of MacKay Creek Debris Flow mitigation project Continue the Port Mann, Second Narrows and Annacis Water Supply Tunnel projects. Business Plan Performance Indicators Within the Water Services Business Plans, 21 performance indicators have been developed and are being tracked. These include: Per capita water use. Progress on major capital projects. Smolt capture in the Capilano Watershed. Compliance with operating permit criteria. Energy use per unit volume of water treated. Water transmission system leak repairs. The trend in these performance measures suggest that while per capita water use in the region continues to decline, total water use is increasing slightly due to population growth, significant progress continues to be made on implementation of the GVWD capital plan, and energy usage for water treatment and delivery continues to increase with the commissioning of major new pumping and treatment facilities

69 BUDGET APPROVAL PROCESS The proposed 2016 Budget and Business Plans for Water Services are presented to the Utilities Committee for consideration and endorsement before being forwarded to the Board for consideration. The next steps of the budget process are: The 2016 Budget and Business Plans for Water Services will be presented at the Board Budget Workshop on October 21, The Board will consider adoption of the Budget on October 30, ALTERNATIVES 1. That the Utilities Committee endorse the 2016 Water Services Budget and Business Plans as presented in the report 2016 Budget and Business Plans Water Services dated September 30, 2015 and forward to the Board Budget Workshop on October 21, 2015 for consideration. 2. That the Utilities Committee make recommendations and endorse the 2016 Water Services Budget and Business Plans as amended and forward to the Board Budget Workshop on October 21, 2015 for consideration. FINANCIAL IMPLICATIONS If the GVWD Board approves the 2016 Water Services Budget and Business Plans as presented in Alternative One, the annual per cubic metre water rate will need to increase by 1.9% in 2016 to generate the majority of the revenue of $253.4 million required to offset projected expenditures. Expenditures include operating costs along with the allocation of corporate support costs, debt services costs and the contribution to capital. A 1.9% increase in the water rate translates to about a $4 impact on the average household after taking into account population growth in the region. The increase in the water rate is due primarily to an increase in operating costs associated with Provincial water rental fees and disposal of water treatment plant residuals. Under Alternative Two, the Committee may wish to consider recommending amendments to the operating and/or capital budget to reflect Board strategic priorities. Any proposed changes would require an update to the water rate for the service. SUMMARY / CONCLUSION As part of the annual budget process for 2016, Business Plans have been prepared to accompany service area Budgets in order to provide Committee and Board members with a high level overview on the role of the service, the total budget, performance indicators and key actions for the coming year. The 2016 Budget for Water Services is projecting a water rate increase of 1.9% for This increase is due in part to the increase in operating costs associated with Provincial water rental fees and disposal of water treatment plant residuals. Within the overall Water Services function, operating expenditures as outlined in the 2016 Business Plans are projected to increase by $0.5 million (0.5%) over The Water Services capital budget in 2016 is $179,483,

70 The budget for 2016 has been prepared to respond to direction provided in the Board Strategic Plan, support the goals of the Drinking Water Management Plan, and to ensure safe, reliable and efficient operation of the water system into the future. Staff recommend endorsing the 2016 Budget and Business Plans for Water Services as presented under Alternative One. Attachments: Water Services Operating Budget Detail Water Services Capital Budget Detail 3. Water Services 2016 Business Plans 4. Organizational Chart for Water Services Department

71 81AALO GREATER VANCOUVER WATER DISTRICT WATER 2016 BUDGET REVIEW Attachment BUDGET ACTUAL % BUDGET BUDGET BUDGET CHANGE REVENUES Water Sales Other External Revenues Other Funds I Reserves TOTAL REVENUES $ 236,105,396 $ 242,161,247 1,225,511 2,097,512 4,817,017 4,074,864 $ 242,147,924 $ 248,333,623 $ 243,816,995 $ 251,824, % 807, , , ,000 $ 245,568,058 $ 253,374, % EXPENDITURES Operating Programs: Policy Planning and Analysis Sustainability Fund Utility Analysis and Infrastructure Utility Policy and Planning $ 723,000 $ 723,000 1,185,717 1,113, , ,820 2,802,118 2,636,207 $ 723,000 $ 723,000 1,197,630 1,457, ,941 1,095,151 2,855,571 3,275, % Engineering and Construction Minor Capital Projects Dispatch Public Involvement Major Projects, Management Systems and Utility Services Department Technical Training Energy Management Engineering Standards Engineers in Training Management Systems Utility Services Minor Capital Projects Records Management Research and Innovation Security Enhancements 9,754,688 9,339, , , , ,832 10,577,292 9,983,669 1,023, ,773 90,627 58, ,859 98, , , , , , , , ,133 18,311 3,323,872 2,601 '198 11,641,271 10,295, , , , ,348 12,706,861 11,362,107 (10.6%) 1,323,408 1,175,346 89, , , , , , ,901 1,161, , , , , , ,153 4,527,987 4,508,338 (0.4%) Watershed, Environmental Management and Quality Control Drinking Water Quality Control 3,008,341 2,784,898 Watersheds and Environmental Management 9,715,169 9, 129,105 12,723,510 11,914,003 Operations and Maintenance Drinking Water Residuals 878, ,718 Lake City Operations 962, ,029 Maintenance 8,709,293 8,538,090 Operating Contingency 500,000 SCADA Control Systems 6,777,112 6,684,935 Secondary Disinfection 765, ,258 Seymour Capilano Filtration Plant 8,197,537 7,491,676 Source Water Treatment 5,197,061 4,068,121 Technical Support 1,266, ,058 Utility Voice Radio 156,860 80,293 Water Supply 10,929,754 9,909,942 44,340,759 39,930,120 Administration and Department Support 1,722,423 1,458,087 Communications Program Allocation of Centralized Costs 21,033,893 21,033,893 Total Operating Programs 96,523,867 89,557,176 Debt Service 97,663,136 90,796,399 Contribution to Capital 47,960,921 50,044,929 TOTAL EXPENDITURES $ 242,147,924 $ 230,398,504 UC ,077,839 3,169,513 10,206,492 10,270,121 13,284,331 13,439, % 1,019,498 1,267, , ,224 9,109,994 9,118, ,000 4,399,663 4,830, , ,753 9,034,298 8,985,580 4,931,693 4,961,536 1 '154,658 1,205, , ,309 13,448,343 14,343,952 45,630,954 46,789, % 1,771,633 1,873, % 435,000 N/A 18,843,706 18,391,525 (2.4%) 99,621, ,075, % 93,640,928 98,183, % 52,306,087 55,115, % $ 245,568,058 $ 253,374, %

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

73 B CAPITAL BUDGET ORIGINAL TOTAL PROJECT COSTS CHANGE IN TOTAL PROJECT COSTS TOTAL PROJECT COSTS New Projects 37AM Replacement (Rupert Street to Little Mountain Reservoir) Detailed Design 1,100,000 2,200,000-2,200,000 Annacis Main No. 2 - Dredging Impacts Design 200, , ,000 Central Park Main Replacement (Patterson to 10th Ave) Detailed Design 800,000 3,600,000-3,600,000 Cleveland Dam Bridge Girder Recoating Construction 100, , ,000 Cleveland Dam Bridge Girder Recoating Design 100, , ,000 Fisherman's Trail/Riverside Drive Bridges Detailed Design 200, , ,000 Lulu Island Delta Main - Dredging Impacts Predesign 1,000,000 1,000,000-1,000,000 Lulu Island Delta Main - Scour Protection Detailed Design 250, , ,000 Lynn Valley Main Replacement Detailed Design 1,000,000 1,000,000-1,000,000 SCFP Filter Underdrain Repairs Construction 1,200,000 6,000,000-6,000,000 Seymour Falls Dam Buttress Anchor Rehab and Bridge Repair Detailed Design 180, , ,000 Tilbury Main - Dredging Impacts Predesign 1,000,000 1,000,000-1,000,000 $26,018,000 $104,302,000 $0 $104,302,000 Water Infrastructure Risk Management Capital Approved Projects in Progress Capilano Main No 9 North Section Construction 15,000,000 29,000,000-29,000,000 Capilano Rd. Phase 2 ADAS Piezometers Cleveland Dam East Abutment 275, , ,000 Convert to Bulk Sodium Hypochlorite from Chlorine Gas at Coquitlam WTP 4,600,000 8,300,000-8,300,000 Coquitlam Intake Tower Seismic Upgrade Design 400,000 1,000,000-1,000,000 Coquitlam Multi Storage Facility 1,100,000 1,300,000-1,300,000 Coquitlam Watershed Security Gatehouse Replacement 1,000,000 1,600,000-1,600,000 CWTP Operational and Safety Enhancements Construction 1,800,000 2,300,000-2,300,000 Emergency Power Strategy for Regional Water Facilities Conceptual Design 50, ,000 (400,000) 400,000 Hellings Tank Seismic Upgrade Construction 1,500,000 4,500,000-4,500,000 Mackay Creek Debris Flow Mitigation Detailed Design 500,000 1,000,000-1,000,000 Port Mann No.2 Fraser R. Crossing (Construction) 32,000, ,000, ,000,000 Second Narrows Crossing (Tunnel) Detailed Design 7,000,000 15,000,000-15,000,000 Seymour Capilano Dewatering Wells Design 300, , ,000 Seymour Capilano Filtration Plant - Storage Building 900,000 2,400,000-2,400,000 South Delta Main No. 3-12th Ave to Pebble Hill Preliminary Design 300, , , New Projects Barnston Maple Ridge Pump Station - Back-up Power Detailed Design 500,000 2,000,000-2,000,000 Barnston Maple Ridge Pump Station - Back-up Power Preliminary Design 500, , ,000 Braid St. Main No.2 Construction 5,000,000 7,800,000-7,800,000 Burnaby Mountain Reservoir Seismic Upgrade Detailed Design 300, , ,000 Capilano Raw Water Pump Station - Back-up Power Detailed Design 1,000,000 2,500,000-2,500,000 Capilano Raw Water Pump Station - Back-up Power Preliminary Design 500, , ,000 Capilano Reservoir Boat Wharf Detailed Design 100, , ,000 Clayton Reservoir Construction 10,000,000 30,000,000-30,000,000 Cleveland Dam Pump House Seismic Upgrade Detailed Design 300, , ,000 Mackay Creek Debris Flow Mitigation Construction 1,000,000 7,000,000-7,000,000 Reservoir Isolation Valve Automation Construction 750,000 2,250,000-2,250,000 SCFP Site Entrance Improvements Construction 250, , ,000 SCFP UPS Reconfiguration Detailed Design 200, , ,000 Second Narrows Crossing (Tunnel) Site Preparation Construction 3,000,000 3,000,000-3,000,000 Seymour Falls Boat Wharf Detailed Design 100, , ,000 Seymour Main No. 2 (SE2) Joint Improvements Construction 500, , ,000 Seymour Main No. 2 (SE2) Joint Improvements Detailed Design 50,000 50,000-50,000 Seymour Main No. 5 III ( North ) Detailed Design 1,000,000 7,000,000-7,000,000 Sunnyside Reservoir Upgrades Preliminary Design 250, , ,000 Westburnco Pump Station - Back-up Power Preliminary Design 500, , ,000 UC - 17 $92,525,000 $373,155,000 ($400,000) $372,755,000

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

75 WATER SERVICES Policy, Planning & Analysis 2016 BUSINESS PLAN Description of services This division provides policy development and coordination; infrastructure analysis and planning; implementation of the Drinking Water Management Plan (DWMP); implementation of key components of the Joint Water Use Plan (JWUP) for the Capilano and Seymour Watersheds; and leads the development and implementation of the Comprehensive Regional Water System Plan. The operating budget for this business area is $3,275,984 and the capital budget is $50,000. Strategic directions and high level goals supported Board Strategic Plan Maintain Metro Vancouver s world class water system that provides safe, clean drinking water and further develop its capacity to meet future needs. Ensure the long term resilience and ability of the regional drinking water system to meet future demands and challenges in a resource constrained world. Expand public awareness of the quality of Metro Vancouver drinking water and the importance of conserving it. Drinking Water Management Plan Goal 1 Provide clean, safe drinking water Goal 2 Ensure the sustainable use of water resources Goal 3 Ensure the efficient supply of water Attachment 3 Performance indicators Indicator Peak day per capita water use (litres) Historical and/or industry benchmark MV 5 year average ( ): : : : : : 790 Current performance 2016 performance objectives 2015 projected: Revised: Sept. 28, 2015 UC - 19

76 Indicator Average day per capita water use (litres) *Statistics Canada, Historical and/or industry benchmark MV 5 year average ( ): : : : : : 495 Canadian 2011 average*: 483 Current performance 2016 performance objectives 2015 projected: key actions Develop a Comprehensive Regional Water System Plan that aligns with the Board s strategic objectives including enhancing resiliency to changing climates. Secure additional water allocation for the Coquitlam source as per the Coquitlam Water Use Plan. Implement the Joint Water Use Plan for the Capilano and Seymour Watersheds, including coordination of monitoring and reporting to the regulatory agencies, subject to Provincial approval. Re evaluate the business case and implementation strategy for the Capilano Hydropower project. Update the 2011 Water Shortage Response Plan Revised: Sept. 28, 2015 UC - 20

77 2016 BUSINESS PLAN WATER SERVICES Engineering & Construction Description of services This business area provides delivery of all core water infrastructure projects, including water mains, reservoirs, pump stations and water treatment facilities and also provides shared construction and dispatch services. The operating budget for this business area is $11,362,107 and the capital budget is $115,783,000. Strategic directions and high level goals supported Board Strategic Plan Maintain Metro Vancouver s world class water system that provides safe, clean drinking water and further develop its capacity to meet future needs. Ensure the long term resilience and ability of the regional drinking water system to meet future demands and challenges in a resource constrained world. Drinking Water Management Plan Goal 1 Provide clean, safe drinking water Goal 2 Ensure the sustainable use of water resources Goal 3 Ensure the efficient supply of water Performance indicators Indicator Historical and/or industry benchmark Current performance Percent of project complete: Lynn Valley Reservoir n/a 20% 100% Hellings Tank Seismic Upgrade n/a 15% 100% Capilano Main No. 9 n/a 20% 100% South Delta Main No. 1 n/a 10% 100% Replacement Port Mann Main No. 2 (North) n/a 5% 100% Braid Street Main No. 2 n/a 5% 100% Clayton Reservoir n/a 0% 25% 2016 performance objectives Revised: Sept. 30, 2015 UC - 21

78 2016 key actions Complete construction of Capilano Main No. 9, Port Mann Main No. 2 (North) and Braid Street Main No. 2. Complete construction of Lynn Valley Reservoir and Hellings Tank Seismic Upgrade. Commence construction of Clayton Reservoir. Complete design of Douglas Road Main No. 2 (Still Creek Section). Complete construction of Coquitlam WTP Bulk Sodium Hypochlorite Conversion, Coquitlam Multi Storage Building and Coquitlam Gate House. Commence project definition for infrastructure improvements necessary to store, treat and convey additional supply from the Coquitlam source UC - 22

79 WATER SERVICES Major Projects, Management Systems & Utility Services 2016 BUSINESS PLAN Description of services This business area provides delivery of major non core water projects, business planning, financial management, capital planning, safety and emergency management, asset management, performance management, benchmarking and shared services (survey, inspection, drafting, GPS, and engineering standards). The operating budget for this business area is $4,508,338 and the capital budget is $62,200,000. Strategic directions and high level goals supported Board Strategic Plan Maintain Metro Vancouver s world class water system that provides safe, clean drinking water and further develop its capacity to meet future needs. Ensure the long term resilience and ability of the regional drinking water system to meet future demands and challenges in a resource constrained world. Drinking Water Management Plan Goal 1 Provide clean, safe drinking water Goal 2 Ensure the sustainable use of water resources Goal 3 Ensure the efficient supply of water Performance indicators Indicator Percent of project complete: Port Mann Water Supply Tunnel Construction Second Narrows Water Supply Tunnel Detailed Design Annacis Water Supply Tunnel Preliminary Design Historical and/or industry benchmark Current performance 2016 performance objective 2014: 75% 85% 100% n/a 20% 75% n/a 10% 50% 2016 key actions Complete construction and commissioning of Port Mann Water Supply Tunnel. Continue detailed design of Second Narrows Water Supply Tunnel. Continue preliminary design of Annacis Water Supply Tunnel. Commence construction of Mackay Creek Debris Flow Mitigation project. Continue development of Asset Management Plan for Water Services. Complete conceptual design of Cambie Richmond and Haney Main No. 4 marine crossings. Complete conceptual design Tilbury and Lulu Island Delta Main marine crossing replacements Revised: Sept. 30, 2015 UC - 23

80 WATER SERVICES Watershed/Environmental Management & Quality Control 2016 BUSINESS PLAN Description of services This business area is responsible for management of 60,000 hectares of GVWD lands, management of environmental programs and initiatives for Water Services and ensuring appropriate quality control standards for the region's drinking water. Technical and scientific staff in this area undertake a breadth of work ranging from collection and laboratory analysis of drinking water samples, environmental best management practice development and watershed management activities including security, road maintenance and public education on the region s water supply. The annual budget for this business area is $13,439,634 and the capital budget is $200,000. High level goals supported Board Strategic Plan Maintain Metro Vancouver s world class water system that provides safe, clean drinking water and further develop its capacity to meet future needs. Ensure the long term resilience and ability of the regional drinking water system to meet future demands and challenges in a resource constrained world. Drinking Water Management Plan Goal 1 Provide clean, safe drinking water Goal 2 Ensure the sustainable use of water resources Performance indicators Indicator Number of water samples analyzed from source reservoirs, water treatment plants and distribution system Mapping and treatment activities completed on all high priority invasive plant species on GVWD lands Smolt capture in the Capilano Watershed Percent of bridges and culverts that provide for passage of fish in identified fish bearing streams in critical and marginal habitat watercourses Historical and/or industry benchmark MV 4 year average ( ): 29, : 37,538 Mapping: 30% Treatment: 50% MV 6 year average ( ): 29,120 Critical: 72% Marginal: 12% (Industry benchmark based on BC Forest Practices Board study) Current performance 2016 performance objectives 24,660 YTD 38,000 Mapping: 75% Treatment: 60% 2015: 26,759 annual capture completed Critical: 90% Marginal: 51% Mapping: 95% Treatment: 85% 35,000 Critical : 93% Marginal: 56% Revised: Sept. 29, 2015 UC - 24

81 Water Services Watershed, Environmental Management & Quality Control September 28, Business Plan 2016 key actions Complete detailed design of both Twin Bridge and Riverside Drive Bridge replacements in response to bridge removal arising from Seymour River rock slide in December Complete Sustainability Innovation Fund invasive plant project involving removal of high priority species from Watershed and LSCR lands and investigation of invasives barrier system including equipment wash station. Continue to implement the environmental and fisheries components of the Capilano Seymour Joint Water Use Plan including operation of the Capilano salmon and steelhead trap and truck program to ensure juvenile fish are transferred safely below the dam. Complete transition into new Coquitlam Watershed guard house ensuring security systems are functioning effectively. Complete hydrologic study of three watersheds utilizing historic snow and hydrometric station data to better determine relationship between snowpack and reservoir inflows. Initiate environmental studies associated with future raising of the Seymour Falls Dam. Orbit # File #FA Page 2 of 2 UC - 25

82 2016 BUSINESS PLAN WATER SERVICES Operations & Maintenance Description of services This business area manages the source water reservoirs and dams, treatment of source water, operation and control of the water transmission system, secondary disinfection of treated water and maintenance of all water treatment and transmission infrastructure and associated supporting infrastructure (works yards, communications systems, and control systems). The operating budget for this business area is $46,789,276 and the capital budget is $1,250,000. Strategic directions and high level goals supported Board Strategic Plan Maintain Metro Vancouver s world class water system that provides safe, clean drinking water and further develop its capacity to meet future needs. Ensure the long term resilience and ability of the regional drinking water system to meet future demands and challenges in a resource constrained world. Drinking Water Management Plan Goal 1 Provide clean, safe drinking water Goal 2 Ensure the sustainable use of water resources Goal 3 Ensure the efficient supply of water Performance indicators Indicator Annual volume of drinking water treated, delivered and sold (in million litres) Energy use in the treatment and delivery of drinking water (amount of gigajoules (GJ) used per ML of water) Compliance with treatment operating permit criteria Historical and/or industry benchmark MV 5 year average ( ): 380,286 MV 5 year average ( ): 0.41 MV 5 year average ( ): 98.43% Current performance 2015 projection: 386, projection: projection: 99.98% 2016 performance objectives 385, % Number of leak repairs in water transmission system per year MV 5 year average ( ): projection: 20 < 20 Number of remote monitoring and control points to ensure system resiliency MV 5 year average ( ): 27, projection: 29,000 30, Revised: Sept. 29, 2015 UC - 26

83 2016 key actions Commence full year of Barnston/Maple Ridge Pump Station operations. Complete Cleveland Dam Safety Review. Complete removal of Surrey Delta Mains from Pattullo Bridge. Commence use of Sodium Hypochlorite system to replace CI 2 gas system at CWTP. Complete the alarm rationalization initiative Revised: Sept. 28, 2015 UC - 27

84 Attachment 4 GENERAL MANAGER Department Support FTRs = 17.6 POLICY, PLANNING & ANALYSIS ENGINEERING & CONSTRUCTION MAJOR PROJECTS, MANAGEMENT SYSTEMS & UTILITY SERVICES WATERSHED, ENVIRONMENTAL MANAGEMENT & QUALITY CONTROL OPERATIONS & MAINTENANCE Utility Policy & Planning Civil/ Mechanical Major Projects Watershed Operations Water Treatment Utility Analysis & Infrastructure Structural/ Geotechnical Management Systems Watershed Protection & Security Transmission Operations Sustainability Fund Electrical, Instrumentation & Controls Utility Services Environmental Management & LSCR Water Maintenance FTRs = 12.0 Construction Regional GPS Quality Control Technical Support Services Public Involvement FTRs = 68.0 FTRs = 61.0 FTRs = FTRs = September 24, 2015 UC - 28 Water Services 2015 Total FTRs = Proposed FTRs = 371.6

85 To: From: Zero Waste Committee Paul Henderson, General Manager, Solid Waste Services Department Date: September 30, 2015 Meeting Date: October 8, 2015 Subject: 2016 Budget and Business Plans Solid Waste Services RECOMMENDATION That the Zero Waste Committee endorse the 2016 Solid Waste Services Budget and Business Plan as presented in this report dated September 30, 2015, titled 2016 Budget and Business Plans Solid Waste Services and forward them to the Board Budget Workshop on October 21, 2015 for consideration. PURPOSE To present the 2016 Solid Waste Services Budget and Business Plans for consideration by the Zero Waste Committee. BACKGROUND The Solid Waste Services function comprises 18 members within Metro Vancouver and provides regional solid waste planning, facilities for waste transfer, waste to energy and disposal, and regional coordination of public recycling services and education. The Solid Waste Services function is guided by the Board Strategic Plan and the Integrated Solid Waste and Resource Management Plan with a focus on the following strategic directions and goals: Board Strategic Plan o Reduce solid waste through an aggressive waste reduction campaign and the recovery of materials and energy from the waste that remains. o Work towards a financial model for managing a solid waste management system consistent with zero waste objectives. o Continue to promote behaviour change that will reduce waste generated in the region. Integrated Solid Waste and Resource Management Plan o Goal 1 Minimize waste generation o Goal 2 Maximize reuse, recycling & material recovery o Goal 3 Recover energy from waste stream after material recovery o Goal 4 Dispose of all waste in landfill after recycling & energy recovery The Metro Vancouver financial planning process is evolving to include a more formalized focus on the longer term. Beginning with the 2016 process, staff will be creating financial plans that will include a 5 year outlook. While these longer term plans are being developed, in this year of transition, staff will be focusing on the 2016 budget this fall and present the longer term view in the second quarter of 2016.

86 2016 BUDGET AND BUSINESS PLANS This report is structured to provide the budgetary highlights of Solid Waste Services functions. The 2016 Operating Budget Details (Attachment 1), 2016 GVS&DD Solid Waste Capital and Wastech Capital Program Expenditures (Attachment 2 and 3) and the Business Plans (Attachment 4) are provided for the Committee s consideration. In addition, an organizational chart is attached that shows the department structure for the Solid Waste Services (Attachment 5). The 2016 Solid Waste Services Budget and Business Plans has been prepared to respond to the strategic direction provided by the Board which includes reductions in staffing and consulting budgets. Operating Budget Highlights The Solid Waste Services operating budget is proposed to decrease by $2.37 million ( 2.5%) in 2016 for a total operating budget of $90.8 million (Attachment 1). This decrease is primarily due to reductions in staffing and consulting budgets. The 2016 operating budget includes the following key actions: Complete the competitive selection process for Operation and Maintenance of the Transfer Station System Tender for flyash and contingency landfill disposal capacity if required. Commence upgrades to the Waste to Energy Facility (WTEF) Continuous Emission Monitoring System and Gas Burner upgrades following approval of the Operational Certificate by the Ministry of Environment. Implement the North Shore Transfer Station reconfiguration. Work with the City of Surrey to finalize a site and enter into a funding and operations agreement for a new Surrey Residential Drop Off facility Continue to work with the City of Coquitlam and the other tri cities municipalities on the replacement for the existing Coquitlam Transfer Station Update regional waste composition monitoring for municipal solid waste and C&D waste. Conduct projects to update regional waste composition, monitor illegal dumping, and improve disposal ban effectiveness. Key 2016 consulting projects: Coquitlam Landfill gas and leachate management ($170,000) Transfer Station operations ($150,000) Municipal solid waste composition monitoring ($150,000) New case studies and technical resources for 3Rs ($100,000) Department Staffing 2016 solid waste staffing will be reduced compared to One permanent position is being moved from the department, four permanent positions are vacant and will not be filled in 2016, and three temporary positions approved for 2015 have not been included in the 2016 budget.

87 Capital Budget Highlights The Solid Waste Services capital budget is a total of $17.16 million (Attachment 2.). Highlights of capital projects planned for 2016 include the following: Surrey Residential Drop Off, Coquitlam Transfer Station replacement, and North Shore Transfer Station reconfiguration Various projects for the existing WTEF including bottom ash non ferrous metal recovery, gas burner and Continuous Emission Monitoring upgrades and soot blower replacement New WTE and District Energy development Business Plan Performance Indicators Within the Solid Waste Services Business Plans, 7 performance indicators have been developed and are being tracked. These include: Waste diversion rate (percent of solid waste flow diverted from final disposal) Waste disposed per capita (tonnes/capita) Annual solid waste flows in Metro Vancouver system (tonnes) Annual amount of recycled material in Metro Vancouver System (tonnes) Availability/environmental performance of the WTEF Solid Waste regulatory licenses The trend in these performance measures suggest that waste diversion continues to increase and per capita disposal continues to decrease. BUDGET APPROVAL PROCESS The proposed 2016 Budget and Business Plans for Solid Waste Services is presented to the Zero Waste Committee for consideration and endorsement before being forwarded to the Board for consideration. The next steps of the budget process are: The 2016 Budget and Business Plans for Solid Waste Services will be presented at the Board Budget Workshop on October 21, The Board will consider adoption of the Budget on October 30, ALTERNATIVES 1. That the Zero Waste Committee endorse the 2016 Solid Waste Services Budget and Business Plans as presented in this report dated September 30, 2015, titled 2016 Budget and Business Plans Solid Waste Services and forward to the Board Budget Workshop on October 21, 2015 for consideration. 2. That the Zero Waste Committee make recommendations and endorse the 2016 Solid Waste Services Budget and Business Plans as amended and forward to the Board Budget Workshop on October 21, 2015 for consideration. FINANCIAL IMPLICATIONS If the GVS&DD Board approves the 2016 Solid Waste Services Budget and Business Plans as presented in Alternative One, tipping fees and other revenues are expected to generate a balanced budget with a contribution from reserves of approximately $2.2 million. Revenues are expected to exceed expenditures in Waste flows and landfill operations and closure costs are key budget drivers.

88 Expenditures include operating costs along with the allocation of corporate support costs, debt services costs and the contribution to capital. Subject to approval of the 2016 tipping fee structure, municipal tipping fees will move to $100 per tonne for all local government single family and public works waste. This represents a decrease of approximately 8% compared to the $109 tipping fee approved by the Board in October Tipping fees for large commercial vehicles are proposed to remain fixed in 2016 with small and medium vehicle tipping fees increasing by $3 per tonne to $133 and $112 per tonne respectively. Under Alternative Two, the Committee may wish to consider recommending amendments to the operating and/or capital budget to reflect Board strategic priorities. Any proposed changes would require an update to the municipal tipping fee and/or the expected contribution from reserves. Increases in tipping fees for commercial garbage could lead to increased bypassing of Metro Vancouver waste disposal facilities, decreasing overall system revenues. SUMMARY / CONCLUSION As part of the annual budget process for 2016, Business Plans have been prepared to accompany service area Budgets in order to provide Committee and Board members with a high level overview on the role of the service, the total budget, overall staff complement, performance indicators and key actions for the coming year. Tipping fees for local government single family and public works waste are proposed to be set at $100 per tonne in This represents a decrease of 8% compared to the tipping fees approved in the fall of Large load commercial tipping fees are proposed to remain flat with small and medium load tipping fees increasing by $3 per tonne. Within the overall Solid Waste Services function, operating expenditures as outlined in the 2016 Business Plans are projected to decrease by $2.37 million ( 2.5%) in 2016 over 2015 while capital program expenditures are projected to total $17.16 million for The Budget for 2016 has been prepared to respond to direction provided in the Board Strategic Plan, support the goals of the Integrated Solid Waste and Resource Management Plan. Waste flows and landfill operating and closure costs will be key budget drivers in Staff recommend endorsing the 2016 Budget and Business Plans for as presented under Alternative One. Attachments and References: Attachment Solid Waste Services Operating Budget Detail Attachment Solid Waste Services Capital Budget Detail Attachment Wastech Capital Program Expenditures Attachment 4. Solid Waste Services 2016 Business Plans a Business Plan for Solid Waste Operations b Business Plan for Solid Waste Planning and Public Involvement Attachment 5. Organizational Chart for Solid Waste Services

89 B9A ALO GREATER VANCOUVER SEWERAGE AND DRAINAGE DISTRICT SOLID WASTE 2016 BUDGET REVIEW ATTACHMENT % BUDGET BUDGET ACTUAL BUDGET BUDGET CHANGE REVENUES Tipping Fees $ 89,233,083 $ 84,812,575 $ 75,813,273 $ 80,015, % Energy Sales 5,775,750 5,469,358 6,102,848 5,719,900 Other External Revenues 6,390,302 3,268,540 6,700,530 2,855,894 Other Funds / Reserves 726,478 3,851,580 4,549,545 2,208,728 TOTAL REVENUES $ 102,125,613 $ 97,402,053 $ 93,166,196 $ 90,799,623 (2.5%) EXPENDITURES Operating Programs: Solid Waste Operations Allocated Quality Control $ 21,503 $ 24,694 $ 22,315 $ 23,223 Ashcroft Ranch 1,258,544 1,219, , ,608 Engineers in Training 457, , , ,271 Transfer Stations-Environmental Initiatives 8,615,387 6,127,931 4,997,354 5,234,882 Landfills 19,843,356 29,914,118 17,522,457 19,532,177 Minor Capital Projects 54, ,208 7,771 Sustainability Fund 1,612, Transfer Station System 32,859,808 30,269,946 35,236,437 33,416,414 Waste to Energy Facility 22,123,003 19,912,040 22,942,375 22,794,804 86,846,176 87,767,595 81,703,200 81,427,150 (0.3%) Solid Waste Planning Policy and Facility Development 2,631,585 1,419,517 2,114,044 1,158,983 Zero Waste Implementation 1,810,517 1,358,123 1,774,662 1,636,325 Strategy and Public Involvement 728, , , ,135 5,170,681 3,341,770 4,626,437 3,204,443 (30.7%) Administration and Department Support 864, , , ,794 (12.2%) Environmental Regulation and Enforcement 1,171, ,654 1,293, ,562 (35.8%) Allocation of Centralized Costs 3,573,262 3,582,811 3,243,563 3,233,946 (0.3%) Total Operating Programs 97,625,469 96,378,483 91,767,012 89,486,895 (2.5%) Debt Service 2,004,952 1,023,570 1,399,184 1,312,728 (6.2%) Contribution to Capital 2,495, N/A TOTAL EXPENDITURES $ 102,125,613 $ 97,402,053 $ 93,166,196 $ 90,799,623 (2.5%)

90 B12 GREATER VANCOUVER SEWERAGE & DRAINAGE DISTRICT CAPITAL PROGRAMS & PROJECT DETAILS SOLID WASTE 2016 BUDGET ATTACHMENT CAPITAL BUDGET ORIGINAL TOTAL PROJECT COSTS CHANGE IN TOTAL PROJECT COSTS TOTAL PROJECT COSTS * CAPITAL EXPENDITURES SW Landfills Capital Approved Projects in Progress Coquitlam Landfill Fly Ash Cell 2 Closure Final Cover Construction $3,000,000 $3,000,000 - $3,000,000 Coquitlam Landfill Gas Collection Upgrades Phase II Design 300, , ,000 Coquitlam Landfill: Leachate Collection System Grade Realignment Design 200, , ,000 $3,500,000 $3,500,000 $0 $3,500,000 SW Management Plan Capital Approved Projects in Progress New Waste to Energy Capacity 1,000, ,000, ,000,000 $1,000,000 $517,000,000 $0 $517,000,000 SW Opportunity Capital New Projects WTE Facility District Heating Opportunities Design 210, , ,000 $210,000 $210,000 $0 $210,000 SW Transfer Stations Capital Approved Projects in Progress Coquitlam Transfer Station Replacement 1,600,000 57,000,000-57,000,000 North Shore TS Reconfiguration 3,250,000 7,000,000-7,000,000 Surrey RDO Siting & Design 1,000,000 4,700,000-4,700, New Projects North Shore TS Structural Modifications Design 100, , ,000 $5,950,000 $68,800,000 $0 $68,800,000 SW Waste to Energy Facility Capital Approved Projects in Progress Bottom Ash Processing 2,000,000 6,000,000-6,000,000 Bottom Ash Treatment 1,000,000 2,000,000-2,000,000 Scrubber Design 500,000 2,000,000-2,000,000 WTEF - Soot Blower/Air Compressor Replacement 400, , ,000 WTEF Gas Burner Replacement 2,600,000 1,600,000 1,200,000 2,800,000 $6,500,000 $12,400,000 $1,200,000 $13,600,000 TOTAL CAPITAL EXPENDITURES $17,160,000 $601,910,000 $1,200,000 $603,110,000 *Total Project Costs include costs expected to be funded by partners

91 ATTACHMENT 3 Greater Vancouver Sewerage & Drainage District Solid Waste - Wastech Services Capital Plan 2016 Budget SUMMARY Equipment $ 85,000 Cache Creek Landfill $ 50,000 Coquitlam Transfer Station $ 1,000,000 Miscellaneous Capital $ 204,000 Total $ 1,339,000 These projects are incurred by Wastech and recovered through contract payments Approval required by GVS&DD/ Wastech Strategic Planning Committee

92 ATTACHMENT 4a 2016 BUSINESS PLAN SOLID WASTE SERVICES Solid Waste Operations Description of services The business area is responsible for operating an integrated solid waste management system. Service delivery is focused on achieving Metro Vancouver s Zero Waste objectives through reliable, cost-effective, safe and environmentally-sound operations. The service is a user pay system, funded by users through solid waste tipping fees. The Metro Vancouver facilities are the North Shore, Coquitlam, Surrey, Matsqui, Maple Ridge, and Langley Transfer Stations; Waste-to-Energy Facility (WTEF); Coquitlam Construction Recycling Facility; Cache Creek Landfill and the closed Coquitlam Landfill. These facilities are managed though several large contracts/agreements. Matsqui Transfer Station will close on October 31, Coquitlam Transfer Station is expected to close at the end of 2016, and Metro Vancouver does not expect to continue to deliver waste to Cache Creek Landfill beyond the end of The operating budget for this business area is $81,427,150 and the capital budget is $13,350,000 plus $1,339,000 for Wastech Services Ltd. Strategic directions and high level goals supported Board Strategic Plan Reduce solid waste through an aggressive waste reduction campaign and the recovery of materials and energy from the waste that remains. Work towards a financial model for managing a solid waste management system consistent with zero waste objectives. Continue to promote behaviour change that will reduce waste generated in the region. Integrated Solid Waste and Resource Management Plan Goal 2 - Maximize reuse, recycling & material recovery. Goal 3 - Recover energy from waste stream after material recovery. Goal 4 - Dispose of all waste in landfill after recycling & energy recovery. Performance indicators Indicator Annual solid waste flows in Metro Vancouver system (tonnes) Historical and/or industry benchmark 2014: 831, : 890,000 Current 2016 performance performance objectives 2015 projected: 800, ,000 Annual amount of recycled material in Metro Vancouver System (tonnes) Number of regulatory exceedances at the WTEF Availability of the WTEF 2014: 9, : 8, : : 0 Contract Requirement: 90% 2015 projected: 10, projected: projected: 93% 10, %

93 2016 key actions Complete the competitive selection process for the operation and maintenance of the Transfer Station System. Tender for flyash and contingency landfill disposal capacity if required. Commence implementation of the Operational Certificate requirements for the WTEF, following approval by the province. Commence construction of non-ferrous metal recovery from bottom ash at the WTEF. Commence upgrades to the Continuous Emission Monitoring System and Gas Burner. Commence construction of the North Shore Transfer Station Reconfiguration project. Following approval from the Ministry of Environment, commence implementing the Coquitlam Landfill Closure Plan requirements. In compliance with the Corporate Energy Management Policy, Solid Waste Services will develop metrics to benchmark energy usage and an annual reporting structure for all Solid Waste Operations

94 ATTACHMENT 4b SOLID WASTE SERVICES Solid Waste Planning and Public Involvement 2016 BUSINESS PLAN Description of services As set out in the Integrated Solid Waste and Resources Management Plan (ISWRMP), this business area: develops and implements regional waste reduction and recycling initiatives in the ISWRMP, including bans, bylaws, eco-centres, etc.; identifies, plans and develops regional infrastructure to fulfill future needs for waste transfer and disposal; plans for the establishment of additional waste to energy capacity; provides public involvement and consultation services to key solid waste projects. To support Metro Vancouver s commitment to protect the environment and conserve resources, Environmental Regulation and Enforcement negotiates and issues permits, orders and licenses and then promotes compliance, and enforces solid waste bylaws. According to a user pays principle, these regulatory costs are recovered through fees. The operating budget for this business area is $3,204,443 and the capital budget is $3,810,000. Strategic directions and high level goals supported Board Strategic Plan Reduce solid waste through an aggressive waste reduction campaign and the recovery of materials and energy from the waste that remains. Work towards a financial model for managing a solid waste management system consistent with zero waste objectives. Continue to promote behaviour change that will reduce waste generated in the region. Integrated Solid Waste and Resource Management Plan Goal 1 - Minimize waste generation Goal 2 - Maximize reuse, recycling & material recovery Goal 3 - Recover energy from waste stream after material recovery Goal 4 - Dispose of all waste in landfill after recycling & energy recovery Performance indicators Indicator Waste diversion rate (percent of solid waste flow diverted from final disposal) Waste disposed per capita (tonnes) Historical and/or industry benchmark Current performance 2016 performance objectives Canadian average*: 24% 61% (2014) 70% (regional goal by end of 2015) Canadian average*: (2014) 0.42