METRO VANCOUVER REGIONAL DISTRICT FINANCE AND INTERGOVERNMENT COMMITTEE REGULAR MEETING Wednesday, July 19, 2017 1:30 p.m. (or immediately following the Finance and Intergovernment Committee and Housing Committee special joint meeting, whichever is later) 2 nd Floor Boardroom, 4330 Kingsway, Burnaby, British Columbia A G E N D A 1 1. ADOPTION OF THE AGENDA 1.1 July 19, 2017 Regular Meeting Agenda That the Finance and Intergovernment Committee adopt the agenda for its regular meeting scheduled for July 19, 2017 as circulated. 2. ADOPTION OF THE MINUTES 2.1 April 19, 2017 Regular Meeting Minutes That the Finance and Intergovernment Committee adopt the minutes of its regular meeting held April 19, 2017 as circulated. 3. DELEGATIONS 4. INVITED PRESENTATIONS 4.1 Geoff Cross, Vice President, Transportation Planning and Policy, TransLink Subject: TransLink Application for Scoping Change to Approved 2016 Application for Federal Gas Tax Funding from the Greater Vancouver Regional Fund 1 Note: Recommendation is shown under each item, where applicable. July 14, 2017 FIC - 1
Finance and Intergovernment Committee Regular Agenda July 19, 2017 Agenda Page 2 of 3 5. REPORTS FROM COMMITTEE OR STAFF 5.1 TransLink Application for Scoping Change to Approved 2016 Application for Federal Gas Tax Funding from the Greater Vancouver Regional Fund Designated Speaker: Heather McNell, Acting Director, Regional Planning, Parks, Planning and Environment That the MVRD Board approve the scope changes and $24.210 million in incremental funding from the Greater Vancouver Regional Fund for the following transit projects proposed by TransLink in its Application for Federal Gas Tax Funding from the Greater Vancouver Regional Fund as attached to the report dated July 4, 2017, titled TransLink Application for Scoping Change to Approved 2016 Application for Federal Gas Tax Funding from the Greater Vancouver Regional Fund : a) 2016 Project 7 Year 2016 Conventional Diesel Bus Purchases (to 40 CNG and hybrid buses) revised funding total $32,300,000, incremental funding request $3,800,000 b) 2016 Project 8 Year 2017 Conventional Diesel Bus Purchases (to 60 diesel hybrid buses) revised funding total $75,430,000, incremental funding request $19,285,000 c) 2016 Project 9 Year 2018 Conventional Diesel Bus Purchases (to 40 CNG buses) revised funding total for 17 buses $12,790,000, incremental funding request $1,125,000. 5.2 Corporate Allocation Policy Designated Speaker: Carol Mason, Commissioner/Chief Administrative Officer and Phil Trotzuk, Chief Financial Officer/General Manager, Financial Services That the MVRD Board approve the Corporate Allocation Policy as presented in the report dated June 27, 2017, titled Corporate Allocation Policy. 5.3 GVS&DD Development Cost Charge Program Review Update Designated Speaker: Dean Rear, Deputy Chief Financial Officers / Director, Financial Planning and Operations, Financial Services That the GVS&DD Board: a) endorse, in principle, the proposed changes to the Development Cost Charge Program with the rates as presented in Attachment 1 of the report dated June 23, 2017, titled GVS&DD Development Cost Charge Program Review Update ; and b) direct staff to proceed with public and stakeholder consultation as presented in the report dated June 23, 2017, titled GVS&DD Development Cost Charge Program Review Update. FIC - 2
Finance and Intergovernment Committee Regular Agenda July 19, 2017 Agenda Page 3 of 3 6. INFORMATION ITEMS 6.1 2017 Finance and Intergovernment Committee Work Plan 6.2 Correspondence re Vancouver Fraser Port Authority (VFPA) - Request to Amend Letters Patent re Appointing Body for Municipal Appointee July 6, 2017 7. OTHER BUSINESS 8. BUSINESS ARISING FROM DELEGATIONS 9. RESOLUTION TO CLOSE MEETING Note: The Committee must state by resolution the basis under section 90 of the Community Charter on which the meeting is being closed. If a member wishes to add an item, the basis must be included below. That the Finance and Intergovernment Committee close its regular meeting scheduled for July 19, 2017 pursuant to the Community Charter provisions, Section 90 (1) (e) and (i) as follows: 90 (1) A part of the meeting may be closed to the public if the subject matter being considered relates to or is one or more of the following: (e) the acquisition, disposition or expropriation of land or improvements, if the board or committee considers that disclosure could reasonably be expected to harm the interests of the regional district; (i) the receipt of advice that is subject to solicitor-client privilege, including communications necessary for that purpose. 10. ADJOURNMENT/CONCLUSION That the Finance and Intergovernment Committee adjourn/conclude its regular meeting of July 19, 2017. Membership: Louie, Raymond (C) Vancouver Moore, Greg (VC) Port Coquitlam Brodie, Malcolm Richmond Clay, Mike Port Moody Corrigan, Derek Burnaby Deal, Heather Vancouver Mussatto, Darrell North Vancouver City Steele, Barbara - Surrey Stewart, Richard Coquitlam Walton, Richard North Vancouver District FIC - 3
2.1 METRO VANCOUVER REGIONAL DISTRICT FINANCE AND INTERGOVERNMENT COMMITTEE Minutes of the Regular Meeting of the Metro Vancouver Regional District (MVRD) Finance and Intergovernment Committee held at 1:02 p.m. on Wednesday, April 19, 2017 in the 2 nd Floor Boardroom, 4330 Kingsway, Burnaby, British Columbia. MEMBERS PRESENT: Chair, Councillor Raymond Louie, Vancouver Vice Chair, Mayor Greg Moore, Port Coquitlam Mayor Malcolm Brodie, Richmond Mayor Mike Clay, Port Moody Mayor Derek Corrigan, Burnaby Councillor Heather Deal, Vancouver Mayor Darrell Mussatto, North Vancouver City Councillor Barbara Steele, Surrey Mayor Richard Stewart, Coquitlam (arrived at 1:28 p.m.) Mayor Richard Walton, North Vancouver District MEMBERS ABSENT: None. STAFF PRESENT: Carol Mason, Chief Administrative Officer Janis Knaupp, Assistant to Regional Committees, Board and Information Services 1. ADOPTION OF THE AGENDA 1.1 April 19, 2017 Regular Meeting Agenda It was MOVED and SECONDED That the Finance and Intergovernment Committee adopt the agenda for its regular meeting scheduled for April 19, 2017 as circulated. CARRIED 2. ADOPTION OF THE MINUTES 2.1 March 10, 2017 Regular Meeting Minutes It was MOVED and SECONDED That the Finance and Intergovernment Committee adopt the minutes of its regular meeting held March 10, 2017 as circulated. CARRIED Minutes of the Regular Meeting of the MVRD Finance and Intergovernment Committee held on Wednesday, April 19, 2017 Page 1 of 5 FIC - 4
2.2 March 29, 2017 Special Meeting Minutes 3. DELEGATIONS No items presented. It was MOVED and SECONDED That the Finance and Intergovernment Committee adopt the minutes of its special meeting held March 29, 2017 as circulated. CARRIED 4. INVITED PRESENTATIONS 4.1 Geoff Cross, Vice President, Transportation Planning and Policy, TransLink Geoff Cross, Vice President, Transportation Planning and Policy, TransLink, provided members with a presentation on the 2017 TransLink application for Federal Gas Tax Funding from the Greater Vancouver Regional Fund (GVRF) highlighting services enabled by fleet expansion, electric bus trial, funding allocation, and anticipated requests for the Phase One Investment Plan. In response to questions, the presenter informed members about: routes and rationale behind the electric car trial rationale, analysis, and costs associated with fleet vehicle expansion efforts made to improve transit planning communications and monitor asset management costs and bus service performance phases 2 and 3 contemplating assessment on new or improved routes opportunities to work with local governments to establish B-Line services discussions with the Regional Transportation Advisory Committee timing associated with the allocation of uncommitted funds 1: 28 p.m. Mayor Stewart arrived at the meeting. Presentation material titled 2017 TransLink Application to the Grater Vancouver Regional Fund is retained with the April 19, 2017 Finance and Intergovernment Committee agenda. 5. REPORTS FROM COMMITTEE OR STAFF 5.1 2017 TransLink Application for Federal Gas Tax Funding from the Greater Vancouver Regional Fund Report dated April 11, 2017 from Raymond Kan, Senior Regional Planner, Parks, Planning and Environment, seeking MVRD Board approval of TransLink s request for Federal Gas Tax funding from the Greater Vancouver Regional Fund (GVRF) for six projects submitted under Metro Vancouver s Federal Gas Tax Fund Expenditure Policy. Minutes of the Regular Meeting of the MVRD Finance and Intergovernment Committee held on Wednesday, April 19, 2017 Page 2 of 5 FIC - 5
It was MOVED and SECONDED That the MVRD Board: a) approve funding from the Greater Vancouver Regional Fund for the following transit service expansion projects proposed by TransLink in its Application for Federal Gas Tax Funding from the Greater Vancouver Regional Fund as attached to the report dated April 11, 2017, titled 2017 TransLink Application for Federal Gas Tax Funding from the Greater Vancouver Regional Fund. i. Project 1 2018 Conventional Bus Purchases (40 hybrid) $85,584,000 ii. Project 2 2018 Conventional Bus Purchases (60 hybrid) $17,316,000 iii. Project 3 2018 Community Shuttle Vehicle Purchases $3,175,000 iv. Project 4 2018 HandyDART Vehicle Purchases $2,193,000 v. Project 5 2018 Electric Bus Pilot $6,892,000 vi. Project 6 2018 Equipment for Deferred Retirement Program $6,120,000 b) issue a call for proposals from TransLink for the Greater Vancouver Regional Fund with a submission deadline of September 1, 2017. CARRIED Mayor Walton absent at the vote. 5.2 2017 Budget - Status of Reserves Report dated March 31, 2017 from Phil Trotzuk, General Manager, Financial Services/Chief Financial Officer, seeking MVRD, GVS&DD and GVWD Board approval of additional reserve applications to those previously approved by the Board in October 2016, and projecting the reserve status of operating and designated reserves for 2017. It was MOVED and SECONDED That the MVRD / GVS&DD / GVWD Board approve the application of reserves as set out in Schedule 1 of the report dated March 31, 2017, titled 2017 Budget - Status of Reserves. CARRIED Mayor Walton absent at the vote. 5.3 MVRD Nominee to the 2017-2018 E-Comm Board of Directors Report dated April 10, 2017 from Greg Moore, Chair, MVRD Board, seeking Board designation of a Metro Vancouver nominee to the 2017-2018 E-Comm Board of Directors pursuant to the provisions of the E-Comm Members Agreement. It was MOVED and SECONDED That the MVRD Board designate Raymond Louie as Metro Vancouver nominee to the E-Comm Board of Directors for the 2017-2018 term. CARRIED Mayor Walton absent at the vote. 5.4 Finance and Intergovernment Committee Terms of Reference Report dated April 11, 2017 from Carol Mason, Commissioner/Chief Administrative Officer, providing a revised Terms of Reference for the Finance and Minutes of the Regular Meeting of the MVRD Finance and Intergovernment Committee held on Wednesday, April 19, 2017 Page 3 of 5 FIC - 6
Intergovernment Committee (FIC), based on input received at the special joint meeting of the FIC and the Performance and Audit Committee on financial planning and oversight. It was MOVED and SECONDED That the MVRD Board receive for information the report dated April 11, 2017, titled Finance and Intergovernment Committee Terms of Reference. CARRIED 5.5 Proposed Amendments to the Sponsorship Policy Report dated April 12, 2017 from Heather Schoemaker, General Manager, and Simon Cummings, Intergovernment and Stakeholder Engagement Division Manager, External Relations, seeking MVRD Board approval of amendments to Metro Vancouver s Sponsorship Policy to address multi-year sponsorship funding requests. 6. INFORMATION ITEMS In response to questions, members were informed about the rationale behind the spending threshold in the Policy and about sponsorship contributions to date. It was MOVED and SECONDED That the MVRD Board approve the Sponsorship Policy as presented in the report dated April 12, 2017, titled Proposed Amendments to the Sponsorship Policy. CARRIED It was MOVED and SECONDED That the Finance and Intergovernment Committee receive for information the following Information Items: 6.1 2017 Finance and Intergovernment Committee Work Plan 6.2 Correspondence dated March 27, 2017 from the BC Ferry Authority, regarding BC Ferry Authority 2017 Appointments 6.3 Correspondence dated March 28, 2017 from the Peter Fassbender, Honourable Minster of Community, Sport and Cultural Development, and Minister Responsible for TransLink, regarding non-binding dispute resolution process on the Township of Langley s Regional Context Statement CARRIED 7. OTHER BUSINESS No items presented. 8. BUSINESS ARISING FROM DELEGATIONS No items presented. Minutes of the Regular Meeting of the MVRD Finance and Intergovernment Committee held on Wednesday, April 19, 2017 Page 4 of 5 FIC - 7
10. RESOLUTION TO CLOSE MEETING It was MOVED and SECONDED That the Finance and Intergovernment Committee close its regular meeting scheduled for April 19, 2017 pursuant to the Community Charter provisions, Section 90 (1) (a) (g) (k) and 90 (2) (b) as follows: 90 (1) A part of the meeting may be closed to the public if the subject matter being considered relates to or is one or more of the following: (a) personal information about an identifiable individual who holds or is being considered for a position as an officer, employee or agent of the regional district or another position appointed by the regional district; (g) litigation or potential litigation affecting the regional district; (k) negotiations and related discussions respecting the proposed provision of a regional service that are at their preliminary stages and that, in the view of the Board, could reasonably be expected to harm the interests of the regional district if they were held in public; and, 90 (2) A part of a meeting must be closed to the public if the subject matter being considered relates to one or more of the following: (b) the consideration of information received and held in confidence relating to negotiations between the regional district and a provincial government or the federal government or both and a third party. CARRIED 11. ADJOURNMENT/CONCLUSION It was MOVED and SECONDED That the Finance and Intergovernment Committee adjourn its regular meeting of April 19, 2017. CARRIED (Time: 1:51 p.m.) Janis Knaupp, Assistant to Regional Committees Raymond Louie, Chair 21411924 FINAL Minutes of the Regular Meeting of the MVRD Finance and Intergovernment Committee held on Wednesday, April 19, 2017 Page 5 of 5 FIC - 8
5.1 To: From: Finance and Intergovernment Committee Raymond Kan, Senior Regional Planner, Parks, Planning and Environment Date: July 4, 2017 Meeting Date: July 19, 2017 Subject: TransLink Application for Scoping Change to Approved 2016 Application for Federal Gas Tax Funding from the Greater Vancouver Regional Fund RECOMMENDATION That the MVRD Board approve the scope changes and $24.210 million in additional funding from the Greater Vancouver Regional Fund for the following transit projects proposed by TransLink in its Application for Federal Gas Tax Funding from the Greater Vancouver Regional Fund as attached to the report dated July 4, 2017, titled TransLink Application for Scoping Change to Approved 2016 Application for Federal Gas Tax Funding from the Greater Vancouver Regional Fund : a) 2016 Project 7 Year 2016 Conventional Diesel Bus Purchases (to 40 CNG and hybrid buses) revised funding total $32,300,000, incremental funding request $3,800,000 b) 2016 Project 8 Year 2017 Conventional Diesel Bus Purchases (to 60 diesel hybrid buses) revised funding total $75,430,000, incremental funding request $19,285,000 c) 2016 Project 9 Year 2018 Conventional Diesel Bus Purchases (to 40 CNG buses) revised funding total for 17 buses $12,790,000, incremental funding request $1,125,000. PURPOSE To present for MVRD Board consideration TransLink s request for scope changes and additional funding for three projects previously approved for funding under Metro Vancouver s Federal Gas Tax Fund Expenditure Policy. BACKGROUND Metro Vancouver is in receipt of a TransLink application seeking approval of scope changes for three projects previously approved in September 2016 for federal gas tax funding from the Greater Vancouver Regional Fund (GVRF). The Metro Vancouver Regional District Board has approval authority over requests for GVRF funding and scope changes to prior approved projects. CONTEXT On May 27, 2016, the MVRD Board adopted the Federal Gas Tax Fund Expenditures Policy (GVRF Policy). The GVRF Policy establishes the process and criteria for approving expenditures from the GVRF for regional transportation projects proposed by TransLink. The Union of British Columbia Municipalities (UBCM) holds the GVRF monies in trust, and transfers the requested amount of funds to TransLink only upon notification by the MVRD Board of its approval. As of May 31, 2017, the balance in the GVRF was $310,398,000. On September 23, 2016, the MVRD Board approved $127.182 million in GVRF funds to TransLink for nine projects comprising replacement transit fleet vehicles only (84 community shuttles, 75 21259039 FIC - 9
TransLink Application for Scoping Change to Approved 2016 Application for Federal Gas Tax Funding from the Greater Vancouver Regional Fund Finance and Intergovernment Committee Meeting Date: July 19, 2017 Page 2 of 8 HandyDART vehicles, and 238 conventional buses). These projects were consistent with TransLink s 2014 Base Plan and Mayors Council Transportation and Transit Plan. On November 23, 2016, the TransLink Board and Mayors Council on Regional Transportation approved the 2017-2026 Investment Plan Phase One of the 10-year Vision (Phase One Investment Plan), which includes service expansion. On April 28, 2017, the MVRD Board approved $121.280 million in GVRF funds to TransLink for six projects comprising expansion transit fleet vehicles, four electric battery buses for a pilot program, and equipment for deferred retirement of transit vehicles. FEDERAL GAS TAX ADMINISTRATIVE AGREEMENT The renewed Administrative Agreement on Federal Gas Tax Fund in British Columbia came into effect in April 2014. The Agreement sets out the roles and responsibilities of the federal government, provincial government, and UBCM for the administration of the Federal Gas Tax Fund. The Agreement also sets out the following: The GVRF pools 95% of the MVRD and its member municipalities per-capital allocation of federal gas tax funds to support regional transportation projects proposed for funding by TransLink. The MVRD Board must approve all eligible projects proposed by TransLink for funding. The MVRD must notify UBCM of the eligible projects that it has approved for funding, after which the UBCM may provide funding to TransLink. In order to receive GVRF funding, TransLink must sign a Funding Agreement with UBCM. The remaining 5% of federal gas tax funds is allocated among local governments in Metro Vancouver through the Community Works Fund. Requests for new projects, amendments to the scope of prior approved projects, and use of approved but unspent funds for other projects must receive approval from the MVRD Board. GREATER VANCOUVER REGIONAL FUND POLICY REQUIREMENTS The GVRF Policy sets out the application process, information requirements, and evaluation criteria to respond to TransLink s request for GVRF funding. In typical cycles, the MVRD Board will issue a call for proposals on an annual basis by April 1, and make its decisions by November 30. However, TransLink is currently applying for approval of scope changes to the September 2016 application. It is anticipated that TransLink will advance a third GVRF application later this year. TransLink is also responsible for providing semi-annual reports on projects funded through the GVRF to the MVRD Board. The semi-annual report will include, at a minimum for each project, updated information about budget and costs, expenditures to date, project schedule, and risk assessment. TransLink intends to advance the first semi-annual report to the Metro Vancouver Board in fall 2017. FIC - 10
TransLink Application for Scoping Change to Approved 2016 Application for Federal Gas Tax Funding from the Greater Vancouver Regional Fund Finance and Intergovernment Committee Meeting Date: July 19, 2017 Page 3 of 8 REQUEST FOR SCOPE CHANGES TO APPROVED 2016 TRANSLINK APPLICATION TransLink is seeking approval for scope changes and funding increases to three projects previously approved in the September 2016 application. The net impact of the scope changes is $24.210 million in additional GVRF funding, over the $96.310 million amount approved by the MVRD Board in September 2016 for the three corresponding projects. According to TransLink, the greater up front capital costs of the scope changes will result in lower lifecycle costs due in part to $1.8 million in fuel cost savings. The projects are all part of TransLink s fleet modernization program no expansion vehicles are included in this application. The projects also advance TransLink s policy shift towards a lower carbon fleet. Table 1. Proposed Project Scope Changes Project Approved September 2016 Application Scope 7. 2016 Conventional Bus Purchases (40 ) Proposed Scope Changes 40 40 diesel buses Change scope of 40 diesel buses to 30 40 CNG buses and 10 40 hybrid buses 8. 2017 Conventional Bus Purchases (60 ) 9. 2018 Conventional Bus Purchases (40 ) Total 54 40 CNG buses and 52 60 diesel buses 52 40 CNG buses and 40 40 diesel buses 238 vehicles Change scope of 52 diesel buses to 52 hybrid buses Change scope of 17 diesel buses to 17 CNG buses The total project costs for the three projects are shown in Table 2 below. Only part of the total project cost is eligible for GVRF funding. The implications to GVRF funding are shown in Table 3. Table 2. Proposed Project Budget Changes Project Budget in September 2016 Application ($ millions) 7. 2016 Conventional Bus Purchases (40 ) 8. 2017 Conventional Bus Purchases (60 ) 9. 2018 Conventional Bus Purchases (40 ) Revised Budget ($ millions) $30.000 $34.000 $59.100 $79.400 $12.283 (for 17 diesel buses) $13.463 Total $101.383 $126.863 FIC - 11
TransLink Application for Scoping Change to Approved 2016 Application for Federal Gas Tax Funding from the Greater Vancouver Regional Fund Finance and Intergovernment Committee Meeting Date: July 19, 2017 Page 4 of 8 Table 3. Proposed GVRF Funding Changes Project 7. 2016 Conventional Bus Purchases (40 ) 8. 2017 Conventional Bus Purchases (60 ) Proposed Scope Change 30 40 CNG buses and 10 40 hybrid buses 52 60 hybrid articulated buses 17 40 CNG buses Prior Approved GVRF Funding ($ millions) Revised Total GVRF Funding Request ($ millions) Additional GVRF Funding Request ($ millions) 28.500 32.300 3.800 56.145 75.430 19.285 9. 2018 Conventional 11.665 12.790 1.125 Bus Purchases (40 ) Total 109 vehicles 96.310 120.520 24.210 METRO VANCOUVER STAFF ANALYSIS A summary of staff s analysis of TransLink s application in aggregate is presented below with supporting commentary. Application Completeness. TransLink s application meets the application information requirements. Also, the 2017-2026 investment plan capital program lists all the project categories, expenditures, costs, and GVRF funding (approved, requested, and/or planned) where applicable. Project Description. According to TransLink, changes in circumstances after the MVRD Board approved GVRF funding in September 2016 drove the need and desire to propose the scope changes. The factors were: TransLink s Phase One Investment Plan, adopted by the TransLink Board and Mayors Council in November 2016, included an action to develop a Low Carbon Fleet Strategy and momentum within the organization to accelerate the purchase of low-carbon buses through the fleet modernization program; A bus vendor was not able to deliver anticipated larger diesel engines suitable for buses to handle steep grades; and The pending completion of new CNG fueling infrastructure at the Surrey Transit Centre in 2017 will allow TransLink to accommodate additional CNG buses. TransLink is encouraged to appropriately identify and characterize the nature of project risks in future GVRF applications. Currently, risk is primarily described as the consequence to transit network performance should GVRF funding approval be delayed or declined. The Board-approved Application Guide also requests information about risks associated with the successful delivery of the project as specified in the project description. To a certain degree, the first and third factors identified above as rationale for the required amendment could reasonably have been anticipated in the September 2016 application. These positive risks could have been identified to shape the original September 2016 application in terms of the selection of bus technologies. FIC - 12
TransLink Application for Scoping Change to Approved 2016 Application for Federal Gas Tax Funding from the Greater Vancouver Regional Fund Finance and Intergovernment Committee Meeting Date: July 19, 2017 Page 5 of 8 The second factor identified above was likely an unknown risk that could not be included in a reasonable risk assessment. However, TransLink and its operating subsidiaries should undertake the appropriate levels of risk assessment about the market-readiness of transit vehicle technologies and other factors that may have impacts on project deliverability. The MVRD Board would then have this additional information to consider when contemplating approval of the GVRF application. When approved projects cannot be delivered due to vendor or equipment issues, there will be delays in implementing planned transit improvements to improve the mobility of residents and the environment. In addition, Metro Vancouver staff and Board must expend additional resources to process scope changes and funding revisions. The deployment of the buses will vary from the September 2016 application as follows: Project 7. 2016 Conventional Bus Purchases (40 ) 8. 2017 Conventional Bus Purchases (60 ) 9. 2018 Conventional Bus Purchases (40 ) Deployment Specified in September 2016 Application Richmond and West Vancouver transit centres. Specific deployment to be determined. CNG buses to Surrey and diesel buses to Richmond Deployment Specific in Current Application CNG buses to Surrey and Hamilton transit centres, and hybrids to West Vancouver. Vancouver, Burnaby, Richmond, and Hamilton transit centres. Surrey Transit Centre. Some diesel buses (highway coaches) will be shifted from Surrey and Hamilton to Richmond. TransLink has also provided technical clarification in the application that the new hybrid buses will be capable of handling steep terrain because they will be equipped with the largest available electric generator output and a battery pack four times the size of past hybrids. Screening Criteria Evaluation. TransLink s application meets all of the screening criteria. Integrated Criteria Evaluation. In aggregate, TransLink s application is consistent and supportive of the MVRD Board s established policies on regional growth management, air quality, and climate change. The application will also support the economic development of the region. The choice of hybrid conventional buses and CNG buses over new diesel buses support regional environmental objectives pertaining to transportation tailpipe emissions for both greenhouse gases and common air contaminants. According to TransLink, a hybrid bus emits approximately 20% less greenhouse gases, nitrogen oxides, and particulate matter emissions compared to a new diesel bus. The deployment of hybrids rather than diesel buses, for example, in denser corridors will provide benefits in terms of reduced particulate matter emissions and the resultant population exposure. Hybrid buses are ideally suited on congested routes to take advantage of the technology s fuel efficiency features. CNG buses also confer measurable greenhouse gas emissions reductions relative to new diesel buses by approximately 7 percent. TransLink has made strides to more accurately quantify the expected emissions from different bus technologies. TransLink is encouraged to work towards developing suitable metrics to quantify, where appropriate, the tangible benefits of their investments as they are implemented. FIC - 13
TransLink Application for Scoping Change to Approved 2016 Application for Federal Gas Tax Funding from the Greater Vancouver Regional Fund Finance and Intergovernment Committee Meeting Date: July 19, 2017 Page 6 of 8 Evaluation Criteria Summary Criterion Description Metro Vancouver Staff Assessment Screening Criteria Eligible Project Category Local roads and bridges, including active transportation Meets criterion Public transit Eligible Expenses As set out in the 2014 Administrative Meets criterion Agreement (Schedule C). Plan Consistency Projects must be consistent with Meets criterion TransLink s existing Capital Plan and future 10-Year Investment Plan, as well as the Mayors Council Transportation and Transit Plan, Metro 2040: Shaping our Future, and the Regional Transportation Strategy. Corporate Policies Projects must be consistent with applicable TransLink policies such as sustainability, environmental responsibility, emissions, and infrastructure. Meets criterion Supports the Regional Growth Strategy Urban Centres and Frequent Transit Development Areas Headline Targets Other Transportation Outcomes Project Type Integrated Criteria: Regional Growth Strategy The degree to which the project assists in achieving the five goals in Metro 2040. Where applicable, the project is located in, or demonstrates tangible benefits to, the overall performance of Urban Centres and Frequent Transit Development Areas. Integrated Criteria: Transportation Performance Demonstrates tangible beneficial effects on vehicle kilometres travelled and/or walk/cycle/transit mode share. Demonstrates tangible beneficial effects on vehicle congestion, transit passenger congestion, transit ridership, and/or transportation safety for the duration of the project. Demonstrated value of the project type (refer to section 6). Good Good: subject to performance monitoring as buses are deployed Good: subject to performance monitoring as buses are deployed Good: subject to performance monitoring as buses are deployed Good: subject to performance monitoring as buses are deployed Supports the Integrated Air Quality and Integrated Criteria: Regional Environmental Objectives Contributes to the achievement of one or more goals in the Integrated Air Quality and Greenhouse Gas Management Plan. Good FIC - 14
TransLink Application for Scoping Change to Approved 2016 Application for Federal Gas Tax Funding from the Greater Vancouver Regional Fund Finance and Intergovernment Committee Meeting Date: July 19, 2017 Page 7 of 8 Criterion Description Metro Vancouver Staff Assessment Greenhouse Gas Management Plan Measurable Beneficial Effects Demonstrates tangible beneficial effects on greenhouse gas and common air contaminant emissions from on-road transportation sources for the duration of the project. Good: subject to performance monitoring as buses are deployed Supports Regional Prosperity Measurable Beneficial Effects Integrated Criteria: Economic Development Contributes to a regional transportation Good system that moves people and goods and aligns with regional prosperity. Tangible beneficial effects on the Good: subject to performance movement of people and/or goods for the monitoring as buses are deployed duration of the project. ALTERNATIVES 1. That the MVRD Board approve the scope changes and $24.210 million in additional funding from the Greater Vancouver Regional Fund for the following transit projects proposed by TransLink in its Application for Federal Gas Tax Funding from the Greater Vancouver Regional Fund as attached to the report dated July 4, 2017, titled TransLink Application for Scoping Change to Approved 2016 Application for Federal Gas Tax Funding from the Greater Vancouver Regional Fund : a) 2016 Project 7 Year 2016 Conventional Diesel Bus Purchases (to 40 CNG and hybrid buses) revised funding total $32,300,000, incremental funding request $3,800,000 b) 2016 Project 8 Year 2017 Conventional Diesel Bus Purchases (to 60 diesel hybrid buses) revised funding total $75,430,000, incremental funding request $19,285,000 c) 2016 Project 9 Year 2018 Conventional Diesel Bus Purchases (to 40 CNG buses) revised funding total for 17 buses $12,790,000, incremental funding request $1,125,000. 2. That the MVRD Board endorse in principle the report dated July 4, 2017, titled TransLink Application for Scoping Change to Approved 2016 Application for Federal Gas Tax Funding from the Greater Vancouver Regional Fund and refer it to the Mayors Council on Regional Transportation for comment prior to final consideration by the MVRD Board. FINANCIAL IMPLICATIONS If the MVRD Board approves alternative one, the UBCM will be notified within 7 business days of the Board s decision. The UBCM currently holds in a special account $310.398 million available to TransLink. The net financial impact of the proposed scope change is a further drawdown of the available funds by $24.210 million, leaving $286.188 million for the next application. If the MVRD Board approves alternative two, the Metro Vancouver report and recommendations, along with the TransLink application, would be forwarded to the Mayors Council for comment prior to consideration by the MVRD Board. FIC - 15
TransLink Application for Scoping Change to Approved 2016 Application for Federal Gas Tax Funding from the Greater Vancouver Regional Fund Finance and Intergovernment Committee Meeting Date: July 19, 2017 Page 8 of 8 SUMMARY / CONCLUSION TransLink is seeking approval for scope changes to three fleet modernization projects totaling $120.520 million in GVRF funding, representing a net increase of $24.210 million over the funding previously approved by the MVRD Board in September 2016. The current balance in the GVRF is $310.398 million. In aggregate, TransLink s application is consistent and supportive of the Metro Vancouver Regional District Board s established policies on regional growth management, air quality, and climate change. The choice of hybrid and CNG buses over new diesel buses supports regional environmental objectives pertaining to controlling greenhouse gas and common air contaminant emissions. These technology selections are also consistent with the policy direction of the TransLink Board and Mayors Council to develop a Low Carbon Fleet Strategy. The application makes incremental progress towards the implementation of Metro 2040 and the Integrated Air Quality and Greenhouse Management Plan. With these considerations, staff recommend support for the projects as proposed and presented under Alternative one. Appendix: Additional Project Information Attachment: (Doc#: 22592317) June 2017 Scope Change of Federal Gas Tax Funding from the Greater Vancouver Regional Fund FIC - 16
APPENDIX: ADDITIONAL PROJECT INFORMATION Project Eligibility, Purpose, and Type Project 7. 2016 Conventional Bus Purchases (40 ) 8. 2017 Conventional Bus Purchases (60 ) 9. 2018 Conventional Bus Purchases (40 ) Project Eligibility Project Purpose Project Type Public Transit State of Good Repair Maintenance Public Transit State of Good Repair Maintenance Public Transit State of Good Repair Maintenance Project Staging Project 7. 2016 Conventional Bus Purchases (40 ) 8. 2017 Conventional Bus Purchases (60 ) 9. 2018 Conventional Bus Purchases (40 ) Year of Acquisition Year of Completion Year of Service Initialization Year of Renewal Year of End of Service 2017 2018 2018 N/A 2035 2018 2019 2018 N/A 2035 2018 2019 2019 N/A 2036 FIC - 17
ATTACHMENT To: From: Carol Mason, Chief Administrative Officer, Metro Vancouver Cathy McLay, Chief Financial Officer and Executive Vice President, Finance and Corporate Services Date: June 26, 2017 Subject: Scope Change of Federal Gas Tax Funding from the Greater Vancouver Regional Fund PURPOSE TransLink is requesting the Metro Vancouver Regional District (Metro Vancouver) approve $24.210 million in Federal Gas Tax Fund (FGTF) funding from the Greater Vancouver Regional Fund (GVRF) for new bus vehicles. This request is intended to update the September 6, 2016 approved application for GVRF funding to reflect a scope change in propulsion type, from 57 40 foot diesel buses to 47 40 foot compressed natural gas (CNG) and 10 40 foot hybrid buses, and 52 60 foot diesel buses to 52 60 foot hybrid buses. TransLink is requesting this update, as the following circumstances have changed since September 6, 2016: Approval of Phase One of the 10 Year Vision, the 2017 2026 Investment Plan, in November 2016 includes development of a Low Carbon Fleet Strategy. The original application s mix of vehicle technology was based on the lowest cost price during a prolonged period of constrained funding. The approval of Phase One opens new opportunities not available in 2016 and is an evolution in our approach to procuring new buses, putting more weight on environmental benefits. This application is an opportunity to accelerate the purchase of low carbon buses through our fleet modernization program. Bus vendor indicated larger diesel engines would be available for buses that handle steep grades. This is no longer the case and a switch from diesel to hybrid is needed to support operational needs while also lowering emissions. A new CNG fueling facility at the Surrey Transit Centre is expected to be in service in 2017 and will allow TransLink to take advantage of fuel cost savings. The change in propulsion comes with greater upfront capital costs, but lower life cycle costs due to approximately $1.8 million in fuel cost savings 1 and $200 thousand in carbon credit offsets 2 on an annual basis. This request is being submitted at this time to enable procurement to begin in 2017. These buses will be in service as early as 2019 to ensure the fleet remains in a state of good repair and the reliability of the transit system is maintained. This request continues to support the region s environmental policies, specifically: 1 Estimate is based on 2016 average fuel costs per Km by type of bus. 2 TransLink estimates the total 47 CNG buses will annually generate approximately 1,666 carbon credits. TransLink can sell the carbon credits for $120/credit for total annual revenue of $200,000. 1 FIC - 18
TransLink s effort to reduce greenhouse gas (GHG) emissions and development of a Low Carbon Fleet Strategy Metro Vancouver s Integrated Air Quality and Greenhouse Gas Management Plan (IAQGGMP) strategies: o Strategy 1.1 Reduce emissions of and public exposure to diesel particulate matter; o Strategy 1.4 Reduce air contaminant emissions from cars, trucks, and buses; and o Strategy 3.3 Reduce the carbon footprint of the region s transportation system. Metro Vancouver 2040 Shaping Our Future (Metro 2040) actions to encourage transportation infrastructure that reduce energy consumption and greenhouse gas emissions and improve air quality: o Action 3.3.6 That TransLink pursue reductions of common air contaminants and greenhouse gas emissions from on road transportation sources in support of regional air quality objectives and greenhouse gas reduction targets; and o Action 3.3.7 That TransLink manage its transit fleet and operations with the goal of increasing fuel efficiency and reducing common air contaminants and greenhouse gas emissions over time, in support of the Regional Growth Strategy and Air Quality Management Plan. BACKGROUND Since the FGTF program began in 2005, TransLink has received $1,019.368 million in funding to expand and modernise the transit network. The last application made by TransLink for funding from the GVRF was approved in the amount of $121.280 million in April 2017 for fleet expansion. Interest earned on funds received, which must be used for approved FGTF projects, totalled $30.307 million at May 31, 2017. The program was renewed in 2014, for another 10 years and currently there is $310.398 million in funds available to TransLink. Metro Vancouver has specified that their portion of FGTF funding go to public transportation, with a small amount going to the Community Works Fund, in the renewed program. A summary of the funds and usage is provided below. Greater Vancouver Regional Fund (as of May 31, 2017) In millions Approved GVRF Funds $1,019.368 Interest earned on funds received 30.307 Unapproved GVRF Funds 294.579 Total Gas Tax Funds $1,344.254 Less Funds applied to completed projects $(349.053) Interest allocated to projects (14.488) 1 Approved funds for active projects (670.315) Funds Available for use $310.398 2 Proposed project Funding (24.210) Funds Remaining $286.188 2 FIC - 19
1. See table of active projects with FGTF funding below, excludes interest allocated to active projects 2. See table of proposed GVRF projects below This application for increased funding to change vehicle propulsion type is based on TransLink s currently approved strategic plan and aligns with the Mayors Council 10 Year Vision. Appendix A includes a summary of TransLink s currently approved strategic plan, the 2017 2026 Investment Plan (Phase One of the 10 Year Vision), including the projects funded or anticipated to be funded by the GVRF, as required under the application process. Included in Appendix A is the other funding anticipated in the strategic plan. Additionally, Appendix B provides a short description of each line item in Appendix A. Active Projects Table 1 below shows the status of active projects with GVRF funding. The total forecasted project cost for active projects is $778.550 million, with $670.326 million in FGTF funds approved for these projects. At May 31, 2017, project costs totalled $401.634 million, with $310.410 million in funds spent. Table 1: Active projects Active Projects With GVRF Funding (Dollar amounts in millions) # Vehicles Forecast Final Cost Approved Funding Costs to Date Interest Allocated to Projects Funds Spent Unspent Funds Expo Line Propulsion Power System Upgrade N/A 56.688 42.000 57.016 42.000 0.000 2nd SeaBus Replacement 1 20.475 19.697 20.035 19.234 0.463 SkyTrain Mark I Vehicle Refurbishment N/A 32.265 24.360 15.880 10.105 14.255 2014 Community Shuttles 49 7.400 7.310 7.400 7.310 (0.000) 2014 Conventional Bus 45 24.884 24.391 24.884 24.391 (0.000) Hamilton Transit Centre N/A 135.388 84.978 134.432 84.978 2013 HandyDART Vehicles 31 3.595 3.535 3.595 0.011 3.535 0.000 2014 HandyDART Vehicles 65 7.577 7.523 7.577 7.523 0.000 2015 HandyDART Vehicles 55 6.812 5.370 6.749 5.370 Defective Community Shuttle Vehicles Replacement 62 9.520 9.350 9.413 8.940 0.410 2015 Conventional Bus Replacement 72 53.429 54.800 54.867 52.847 1.953 2016 Conventional Bus Replacement 40' 45 25.371 24.964 25.343 24.011 0.953 2016 Conventional Bus Replacement 60' 26 24.125 25.360 28.928 14.930 10.430 2017 Conventional Bus 92 83.824 75.000 75.000 Metrotown Trolley Overhead Rectifier Replacement N/A 6.241 4.725 0.287 0.275 4.450 Automated Train Control Equipment Replacement N/A 5.087 4.500 2.249 2.200 2.300 Surrey Transit Centre CNG Facility Retrofit N/A 14.674 4.000 2.764 1.981 2.019 2016 Additional Conventional Bus Replacements 40' 40 28.264 28.500 0.031 28.500 2017 Conventional Bus Additional funding 14 13.076 11.700 11.700 2015 Community Shuttle Vehicle Replacement 24 4.699 4.674 0.779 3.895 2016 Community Shuttle Vehicle Replacement 20 3.892 3.560 0.167 3.560 2017 Community Shuttle Vehicle Replacement 20 4.210 3.500 0.017 3.500 2018 Community Shuttle Vehicle Replacement 20 4.000 3.830 3.830 2017 HandyDART Vehicle Replacement 35 5.600 5.013 5.013 2018 HandyDART vehicle Replacement 40 6.200 5.605 5.605 2018 Conventional Bus Replacement 92 66.600 60.800 60.800 Conventional Bus Purchases 40' 94 87.184 85.584 85.584 Conventional Bus Purchases 60' 11 17.636 17.316 17.316 Community Shuttle Vehicle Purchases 12 3.300 3.175 3.175 HandyDART vehicle Purcahses 13 2.300 2.193 2.193 Electric Bus Pilot 4 7.992 6.892 6.892 Equipment for Deferred Retirement Program N/A 6.242 6.120 6.120 Total 982 778.550 670.326 401.634 0.011 310.410 359.916 3 FIC - 20
PROPOSED PROJECTS AND FUNDING This application proposes changing propulsion technology for TransLink s 2016, 2017, and 2018 bus purchases. These changes are described below and summarized in Table 2. The resulting changes are: to purchase 47 40 foot CNG and 10 40 foot hybrid buses instead of 57 40 foot diesel buses; and to purchase 52 60 foot hybrid buses instead of 52 60 foot diesel buses. The additional request in FGTF funding is summarized in Table 3. The projects are consistent with the 2017 2026 Investment Plan and the Mayors Council 10 Year Vision. Detailed project descriptions are included in Appendix C. 2016 Conventional CNG & Hybrid Bus Purchases: This application proposes changing 40 40 foot diesel buses approved in the September 2016 application to 30 40 foot CNG buses and 10 40 foot hybrid buses. TransLink plans to allocate the CNG buses to the Surrey Transit Centre and the hybrid vehicles to the West Vancouver Transit Centre. This change will better serve the operational needs for these routes, as identified by West Vancouver staff. The scope change from new diesel buses to CNG and hybrid vehicles, results in a reduction of approximately 7% and 20% in GHG respectively. Due to strict engine standards, Nitrogen Oxide (NOx) and particulate matter (PM) emissions between new diesel and CNG buses are very similar. However, the new hybrid buses emit approximately 20% less PM and NOx compared to new diesel buses included the original submission. 2017 Conventional Hybrid Bus Purchases: This application proposes changing 52 60 foot diesel buses to 52 60 foot hybrid buses. At the time of the original application, TransLink s vendor informed TransLink that a larger diesel engine would be available for the transit market for 2018 bus deliveries. However, this has not occurred, and the diesel engines currently available on the market would be underpowered and not suitable for steep grades where these buses are to be deployed. The additional electrical propulsion system in the hybrid vehicles provides additional horsepower, therefore making them more suitable to overcome steep grades throughout Metro Vancouver and support operational needs. TransLink plans to allocate the 60 foot hybrids to the Burnaby, Hamilton, Richmond, and Vancouver Transit Centres. The change from diesel to hybrid results in emission reductions of approximately 20% in GHG and 20% NOx and PM. 2018 Conventional CNG Bus Purchases: This application proposes changing 17 40 foot diesel buses to 17 40 foot CNG buses. TransLink plans to allocate these CNG buses to the Surrey Transit Centre to take advantage of the new CNG fueling facility. The scope change from new diesel buses included in the original submission to CNG buses results in a reduction of approximately 7% in GHG. Due to strict engine standards, the new diesel and CNG engines have very similar NOx and PM emissions thus there is no significant change in emissions. The remaining 23 diesel buses included in the original application will be ordered as planned (diesel propulsion) since TransLink plans to allocate the 40 foot diesel buses to the Richmond Transit Center that currently does not have CNG fueling capabilities. 4 FIC - 21
Table 2: Summary of Total Costs of Proposed Application Projects (project names revised) 2016 Conventional CNG & Hybrid Bus Purchases 2017 Conventional Hybrid Bus Purchases 2018 Conventional CNG Bus Purchases No. of vehicles 40 52 17 Sept 2016 Application Scope 40 40 diesel buses 52 60 diesel articulated buses 17 40 diesel powered buses Total Project Budget at Sep 2016 ($millions) 5 Gas Tax Funding at Sep 2016 30.000 28.500 59.100 56.145 Proposed Scope Change Revised Total Project Budget ($millions) Revised Gas Tax Funding 30 40 CNG buses 23.608 22.428 10 40 hybrid buses 10.392 9.872 52 60 hybrid articulated buses 79.400 75.430 12.283 11.665 17 40 CNG buses 13.463 12.790 Total 109 101.383 96.310 109 buses 126.863 120.520 Table 3: Summary of incremental costs for changing mix of propulsion technology Greater Vancouver Regional Fund TransLink Proposed Projects Type Buses 2016 Conventional CNG & Hybrid Bus Purchases 40-foot ($ millions) Current GVRF Request Unit Cost per Bus Incremental Project Cost Diesel (40) N/A (30.000) (28.500) CNG 30 0.75 23.608 22.428 Hybrid 10 0.99 10.392 9.872 2017 Conventional Hybrid Bus Diesel (52) N/A (59.100) (56.145) Purchases 60-foot Hybrid 52 1.45 79.400 75.430 2018 Conventional CNG Bus Diesel (17) N/A (12.283) (11.665) Purchases 40-foot CNG 17 0.75 13.463 12.790 Total N/A N/A 25.480 24.210 BENEFITS Fleet Transition The vehicles detailed above are part of TransLink s Fleet Modernization Program and will replace existing buses that have reached the end of their service life. The newer vehicles will support the 10 Year Vision desired outcomes of fleet modernization to support maintenance of the transit system and reliability of current bus service. The newer vehicles represent 7 per cent of the current conventional bus fleet and the current decision on propulsion technology will have significant lasting impacts as the vehicles will have an expected life of 17 years. Reduced Operating Costs This application to switch from diesel to CNG and hybrid buses results in a low incremental capital cost for the region relative to significant long term savings in emissions and fuel. Emissions Reduction Increasing the CNG and hybrid bus fleets supports the 10 Year Vision s goal of reducing greenhouse gas emissions and TransLink s efforts to reduce emissions under the Low Carbon FIC - 22
Fleet Strategy currently under development. Further, the reductions in GHG, NOx and PM emissions associated with new CNG and hybrid vehicles support Metro Vancouver's Integrated Air Quality and Greenhouse Gas Management Plan (IAQGGMP) goals of protecting public health and the environment (Goal 1) and minimizing the region s contribution to global climate change (Goal 3). Most significantly, compared to the retiring diesel vehicles, CNG buses will reduce public exposure to diesel particulate matter (Strategy 1.1) and reduce the carbon footprint of the region s transportation system (Strategy 3.3). Finally, purchase of new CNG and hybrid vehicles also supports Metro Vancouver's Metro 2040 Regional Growth Strategy 3.3, because it provides transportation infrastructure that reduces energy consumption, GHG emissions and improves air quality. Table 4 below provides a summary of the approximate expected per vehicle reductions in emissions of GHG, NOx and PM from the scope change. Table 4: Approximate emission reductions from scope change Projects (project names revised) 2016 Conventional CNG & Hybrid Bus Purchases 2017 Conventional Hybrid Bus Purchases 2018 Conventional CNG Bus Purchases Sept 2016 Application Scope 40 40 diesel buses 52 60 diesel articulated buses 17 40 diesel powered buses Proposed Scope Change Approximate GHG Reduction Approximate NOx Reduction* Approximate PM Reduction* 30 40 CNG buses 7% - - 10 40 hybrid buses 20% 20% 20% 52 60 hybrid articulated buses 20% 20% 20% 17 40 CNG buses 7% - - (*) New diesel and CNG engines have very similar NOx and PM emissions thus there are no significant changes in these emissions from switching from diesel to CNG RISKS There is an approximate lead time of 12 to 18 months between TransLink procuring the vehicles and those vehicles entering service. If funding is not received by TransLink, TransLink will not be able to order the new vehicles in 2017 and 2018 and have the vehicles in service by early 2019. Due to recent increases in senior government funding for public transit projects across Canada, many suppliers are experiencing larger demands on vehicle orders. This could create a backlog with vendors and if procurement is not initiated soon, could result in further delay in ordering and receiving vehicles. In the event of delay, TransLink will either defer retirement of buses or consider proceeding with the purchase of new diesel buses as originally planned. Proceeding with the new diesel buses as originally planned would result in lost opportunities to further reduce GHG, NOx and PM emissions over the useful life of the new buses. Continued use of deferred retirement vehicles poses a risk to reliability, as well as further costs in terms of continued maintenance and additional equipment required to keep those buses in service. Further, use of deferred retirement vehicles would also result in higher GHG, NOx and PM emissions than new vehicles. 6 FIC - 23
CONCLUSION TransLink relies on the FGTF funding, made available through the GVRF, to maintain an ongoing program of fleet modernization. The approval of the requested application and scope change will allow TransLink to procure the vehicles necessary to keep TransLink s revenue vehicle fleets in a state of good repair, avoid increased maintenance costs, protect the reliability of the transit system and reduce GHG, NOx and PM emissions further and more rapidly than previously planned in supporting the goals of Metro Vancouver s various strategies and TransLink s future Low Carbon Fleet Strategy. 7 FIC - 24
Appendix A TransLink 2017 2026 Investment Plan Capital Program and Funding Sources Note: The above summary has been updated since the release of TransLink s Phase One Investment Plan for the following: Some Projects categorized as Corporate were reclassified as Rail to better align with those projects scope; and Project Budget Project Expenditures to 2015 2016 Project Final Forecast Expenditures Cost Forecast Cost to Complete Other Funding Approved GVRF Funding Requested GVRF Funding Planned Future GVRF Funding Total GVRF Funding Bus Equipment 58,038 54 2,861 58,038 55,123 (44,936) Facilities 46,875 261 2,899 46,875 43,715 (14,677) Infrastructure 459,580 92,425 77,548 459,580 289,607 (64,969) (93,703) (0) (93,703) Depots 152,763 83,147 61,578 152,763 8,038 (88,978) (0) (88,978) Exchanges 133,396 589 3,363 133,396 129,445 (54,394) Other 127,171 6,158 6,730 127,171 114,283 (830) Trolley Overhead 46,250 2,531 5,877 46,250 37,842 (9,745) (4,725) (4,725) Technology 9,933 41 344 9,933 9,548 Vehicle Non Revenue 21,702 207 1,071 21,702 20,424 (2,473) Vehicle Revenue 1,570,070 2,947 77,491 1,570,362 1,489,924 (28,220) (505,763) (24,210) (910,650) (1,416,504) Conventional Buses 1,336,173 991 61,712 1,336,465 1,273,762 (421,427) (24,210) (782,013) (1,203,499) Community Shuttles 111,780 792 10,203 111,780 100,784 (35,399) (70,103) (105,502) Handy Darts 85,708 242 4,088 85,708 81,378 (29,240) (58,534) (87,806) Sea Bus 36,410 922 1,488 36,410 34,000 (28,220) (19,697) (19,697) Corporate Equipment 5,437 386 5,437 5,051 Facilities 1,791 1,305 336 1,791 150 Infrastructure 63,958 6,503 23,085 63,958 34,370 (2,690) Bridges 32,464 6,251 15,929 32,464 10,285 Depots 875 16 15 875 844 Other 30,619 237 7,141 30,619 23,241 (2,690) Major Construction 404,052 227,736 170,233 404,052 6,083 Technology 196,683 2,119 16,754 196,683 177,810 Vehicle Non Revenue 2,956 965 2,956 1,991 Rail Equipment 154,690 2,628 12,645 154,690 139,417 (32,221) (4,500) (4,500) Facilities 25,338 1,257 1,878 25,338 22,203 Infrastructure 764,904 65,555 137,458 764,904 561,890 (314,767) (42,000) (0) (42,000) Exchanges Other 369,231 3,309 46,136 369,231 319,786 (147,160) Stations 319,547 47,887 85,872 319,547 185,787 (161,691) Wayside 76,126 14,359 5,450 76,126 56,316 (5,916) (42,000) (0) (42,000) Technology 25,689 3,915 1,646 25,689 20,128 (12,450) Vehicle Non Revenue 7,699 1,030 1,363 7,699 5,306 Vehicle Revenue 545,420 13,982 7,205 545,420 524,233 (183,430) (24,360) (41,212) (65,572) Canada Line 88,000 88,000 88,000 (73,040) Sky Train 428,920 13,982 7,205 428,920 407,733 (92,960) (24,360) (35,587) (59,947) West Coast Express 28,500 28,500 28,500 (17,430) (5,625) (5,625) Roads and Bridges Infrastructure 67,655 5,908 2,712 67,655 59,035 Bike 36,022 349 1,119 36,022 34,554 Bridges 31,634 5,560 1,593 31,634 24,481 Road Network Infrastructure 445,033 230 21,760 445,033 423,042 Bicycle Infrastructure 30,809 91 689 30,809 30,029 Major Road Network 117,397 140 7,404 117,397 109,854 MRNB Pavement rehab and BICCS 293,341 13,667 293,341 279,674 Transit Priority Implementation Program 3,486 3,486 3,486 Grand Total 4,877,504 428,105 560,640 4,877,796 3,889,050 (700,832) (670,326) (24,210) (951,863) (1,622,280) Project costs and funding figures were updated for the projects within this funding application, to reflect current assessment, pricing variation and to add an electric bus pilot project. 8 FIC - 25
TransLink 2017 2026 Investment Plan Project Summary Bus Equipment Facilities Infrastructure Depots Exchanges/Bus loops Other Trolley Overhead (TOH) Technology Non Revenue Vehicles Revenue Vehicles Conventional Buses Community Shuttle HandyDART SeaBus Corporate Equipment Facilities Infrastructure Bridges Appendix B Descriptions of items in the Capital Program Project Descriptions A wide variety of equipment required to maintain and manage TransLink s systems related to the bus network. Examples include fuel delivery system, scheduling, warehouse and yard management systems. Includes improvement projects such as garage roof replacements, hoist replacements; and other projects related to mechanical and civil retrofits to facilities. Also includes PowerSmart upgrades partially funded by BC Hydro. Includes the Hamilton Transit Centre and the Surrey Transit Centre CNG Retrofit. Various repairs and replacements to keep the exchanges/bus loops in a state of good repair. For example, replacement of lighting and security equipment, shelters and crew washroom facilities. Also includes projects related to priority B Line corridors. Includes general projects related to bus infrastructure such as maintenance and rehabilitation of SeaBus Infrastructure and other facilities and paving replacement. Includes projects related to maintenance of infrastructure related to the trolley buses such as cables, poles and rectifier buildings and equipment. Includes the Trapeze DOMS Product Migration Program as well as other projects related to software modernization and replacement. Includes modernization of non revenue generating vehicles used by Transit supervisors, security and maintenance staff. Fleet expansion and modernization of conventional buses to support maintenance of the transit system and realize benefits such as reduced congestion and emissions. Fleet expansion and modernization of community shuttle vehicles to support maintenance of the transit system and realize benefits such as reduced congestion and emissions. Fleet expansion and modernization of HandyDART vehicles to support maintenance of the transit system and provide mobility to those with accessibility issues. Procurement of one additional SeaBus vessel, retrofit of an older SeaBus vessel and projects related to ensuring TransLink continues to meet Transport Canada safety standards and also to reduce maintenance and repair costs associated with ageing assets. A wide variety of equipment such as Ad Panels and radios for Transit Police. Includes renovation and upgrades to offices and related facilities. Includes Pattullo Bridge Rehabilitation Construction 9 FIC - 26
TransLink 2017 2026 Investment Plan Project Summary Depots Other Major Construction Projects Technology Vehicles Non Revenue Rail Equipment Facilities Infrastructure Other Stations Wayside Power Propulsion Technology Non Revenue Vehicles Revenue Vehicles Canada Line SkyTrain WCE Roads and Bridges Infrastructure Bikes Bridges Roads Network Project Descriptions Infrastructure being built at the UBC Bus Terminal Includes various general projects related to corporate infrastructure such as wayfinding system integration and efficiency improvement. Includes large scale projects related to the Evergreen Line as they affect TransLink as a whole. Includes projects related to upgrades of various IT applications and systems, security programs, data warehousing etc. Includes projects related to non revenue generating vehicles such as TransLink Police cars and administration vehicles. A wide variety of equipment required to maintain and manage the SkyTrain lines. Examples include power supply installations, automatic train control equipment, station equipment, passenger address systems etc. Includes projects related to maintaining and upgrading the operations maintenance and control centre such as space modernization, safety upgrades, yard track reconditioning and seismic upgrades. Includes other rail infrastructure projects related to station escalator replacements, upgrades of guideway and running rail infrastructure, seismic upgrades, smart card/faregates installation and South of Fraser Rapid Transit project readiness. Includes projects related to upgrading SkyTrain stations consisting of station upgrades such as the Burrard, Commercial Broadway, Metrotown and Joyce Collingwood stations as well as minor equipment upgrades such as roof replacements to ensure assets are maintained in a state of good repair. Includes projects related to the propulsion power system for SkyTrain. Includes projects related to the upgrade of various software and systems related to the smooth running of the train system. Includes projects related to non revenue generating vehicles used by SkyTrain staff to respond to emergency and routine maintenance. Includes projects related to fleet expansion of the Canada Line cars. Includes acquisition of additional SkyTrain cars for Expo and Millennium Line fleet expansion, the refurbishment, mid life overhaul or replacement of older SkyTrain cars. Includes fleet expansion of the West Coast Express cars and mid life overhaul of five older cars. Includes projects related to the TransLink owned bicycle infrastructure. Includes replacement and rehabilitation of the Pattullo Bridge, rehabilitation of the Knight Street Bridge as well as other projects related to the Golden Ears Bridge and the Westham Island Bridge. 10 FIC - 27
TransLink 2017 2026 Investment Plan Project Summary Infrastructure Bike Infrastructure MRN MRNB pavement rehab and Bicycle Infrastructure Capital Cost Sharing Program Transit Priority Implementation Program Project Descriptions Includes TransLink s contribution to bicycle infrastructure programs for municipal owned pathways. Consists of TransLink s contributions to municipalities for rehabilitation of the Major Road Network (MRN). Consists of projects in three major categories: 1) TransLink s contribution to the MRN Pavement rehabilitation, 2) Minor capital funding to complete and improve as well as encourage construction of more bicycle routes and remove existing barriers to cyclists, and 3) Funding for bicycle infrastructure improvements across the region Includes projects related to the Transit Priority Implementation Program. 11 FIC - 28
Appendix C Project Applications for the Greater Vancouver Regional Fund 12 FIC - 29
APPLICATION FOR FUNDING FROM THE GREATER VANCOUVER REGIONAL FUND FOR FEDERAL GAS TAX FUNDS Project 7 2016 Conventional CNG & Hybrid Bus Purchases (Ref# 152130b) 13 FIC - 30
B. MAYORS COUNCIL TRANSPORTATION AND TRANSIT PLAN Please describe how the project fits within, and provides support to, the Mayors Council Transportation and Transit Plan. Maintain what is needed in a state of good repair Invest in the road network to improve safety, local access and goods movement Expand our transit system to increase ridership in high demand areas and provide basic coverage in low-demand neighbourhoods Develop safe and convenient walking connections to transit and pursue early investments to complete the bikeway network, making it possible for more people to travel by these healthy, low cost, and emission-free modes Manage our transportation system more effectively with safety and passenger comfort improvements, new personalized incentive programs, advanced technology and infrastructure management solutions, efficient and fair mobility pricing, and better parking management Partner to make it happen with explicit implementation agreements and processes that support concurrent decisions on land-use and transportation investments, stable and sufficient long-term funding solutions, and better monitoring of progress TransLink has an ongoing program of fleet modernization to keep the transit network in a state of good repair. The 2016 conventional bus purchases were included as part of the modernization program in TransLink s 2014 Base Plan. This modernization program is foundational to TransLink, and it is critical to the success of Metro Vancouver s expansion, as outlined by the Mayors Council on Regional Transportation vision: Regional Transportation Investments: A Vision for Metro Vancouver (Mayors Council 10 Year Vision). The Mayors Council 10 Year Vision on regional transportation outlines a long term, region wide, integrated, multi modal transportation vision to fight congestion, reduce greenhouse gas (GHG) emissions and to keep a fast growing gateway economy, of almost 2.5 million residents, moving. The Mayors Council 10 Year Vision is built on 3 key strategies to achieve necessary improvements: invest in the most urgent and effective investments, manage the system more effectively, and partner to ensure that supportive conditions are in place for these investments to succeed. Following adoption by the Mayors Council, in June 2014, the Mayors Council 10 Year Vision was subsequently endorsed by the TransLink Board, as the implementation blueprint for the Regional Transportation Strategy (RTS). The 10 Year Vision includes a package of investments aimed at addressing the most basic needs for enhancements to the regional transportation network, allowing the network to keep up with growth in population and employment. 14 FIC - 31
In November 2016, the TransLink Board and Mayors Council approved the 2017 2026 Investment Plan (Phase One of the 10 Year Vision). The Phase One Plan includes development of a Low Carbon Fleet Strategy to reduce emissions from transit vehicles across the region of which this application aligns to. This project, through fleet modernization and substitution of planned new diesel buses with new compressed natural gas (CNG) and hybrid buses, supports the 10 Year Vision desired outcomes of maintaining the transit system and reducing GHG emissions. 15 FIC - 32
C. PROJECT DESCRIPTION Please complete the following for each project proposed for expenditure from the GVRF. 1. Executive Summary (not to exceed two pages) Project Overview TransLink has 1,390 conventional 40 foot and 60 foot buses in its fleet. Criteria for identifying buses due for retirement are based on a number of factors including: Age (life expectancy of 17 years); Mileage (generally 1,000,000 km); State of repair/condition; and Severity of service duty cycle. In 2016, TransLink had a requirement for 111 conventional buses (85 40 foot buses and 26 60 foot buses) to replace vehicles reaching the end of their useful lives. These vehicles are currently operated by Coast Mountain Bus Company out of the Richmond Transit Centre (RTC) and by West Vancouver Transit. The vehicles due to retire were acquired in 1999, have a median age of 17 years and median mileage of 1.2 million km. The new vehicles will have a person and seat capacity of 76 and 36 respectively. The plan is to allocate new vehicles on a one to one basis with retiring vehicles. TransLink has previously received $37.964 million in funding for 45 40 foot buses through Gas Tax funding for Year 8 (2012/13) and $25.360 million for the 26 60 foot buses through Year 9 (2013/14). In September 2016 TransLink requested and received approval for funding to cover the replacement of the remaining 40 40 foot conventional (diesel) buses. TransLink is now reapplying to purchase 30 40 foot CNG and 10 40 foot hybrids instead of diesel buses. TransLink plans to allocate the CNG replacement vehicles to the Surrey (STC) and Hamilton (HTC) Transit Centres and hybrid to the West Vancouver Transit Centre. A new CNG fueling facility at the STC is expected to be in service in 2017 and will allow TransLink to take advantage of fuel cost savings and lower emissions. TransLink will shift 40 40 foot diesel buses total from the existing pool in STC and HTC to RTC. RTC does not have a CNG fueling facility, due to lack of access to high pressure CNG, and is more likely to eventually transition to battery buses. The latest 40 foot hybrids buses will be equipped with enhanced 280HP diesel engines, largest available generator output, and an enhanced battery pack four times the size of the predecessor, which will enable it to support the operational requirements in West Vancouver. The bus fleet propulsion technologies available to TransLink include diesel, CNG, trolley and hybrids. Based on current demand and optimization of resources, TransLink is requesting the 40 new vehicles to be a mix of 30 40 foot CNG buses and 10 40 foot hybrid buses. Choices of vehicle size and propulsion types will continue to be optimized, as informed by ongoing monitoring of ridership and propulsion technologies. Tangible Benefits and Outcomes The new mix of CNG and hybrid buses will allow Coast Mountain Bus Company (CMBC) to maintain existing service, reduce downtime, avoid incremental operating costs, and reduce environmental pollutants. Comparison of Greenhouse Gas emissions of new Diesel to new CNG (approximate) 16 FIC - 33
Tailpipe GHG emissions of new CNG 7% less than new diesel Comparison of NOx emissions of new diesel to new CNG (approximate) Tailpipe NOx and PM emissions from new diesel, hybrid, and CNG buses are very low; the majority of total NOx and PM emissions from these buses are upstream emissions from production, processing, and transport of fuel. There is very little difference in tailpipe NOx emissions between new CNG and new diesel due to very strict engine standards (0.475 g/km for CNG vs 0.460 g/km for diesel) There is very little difference in tailpipe PM emissions between new CNG and new diesel due to very strict engine standards (0.007 g/km for CNG vs 0.003 g/km for diesel) in comparison to replacing old diesel, both are 80 86% improvement in PM. Comparison of emissions of new diesel to new hybrid (approximate) GHG emissions of new hybrid is 20% less than that of new diesel (tailpipe) NOx emissions of new hybrid is 20% less than that of new diesel (tailpipe) PM emissions of new hybrid is 20% less than that of new diesel (tailpipe) Increasing the CNG and hybrid bus fleet supports Metro Vancouver s IAQGGMP by purchasing new vehicles with lower lifecycle GHG emissions and lower tailpipe NOx and PM emissions. Project Budget, Expenses, and GVRF Funding Request The project budget is $34,000,000 with a Greater Vancouver Regional Fund (GVRF) request of $32,300,000. Expenses covered by this budget primarily include vehicle procurement, ancillary on board equipment and labour. This application requests an incremental GVRF amount of $3,800,000. 2. Project Name 2016 Conventional CNG & Hybrid Bus Purchases (Ref# 152130b) 3. Project Need The objectives are to maintain high quality customer service and minimize maintenance and operating costs through the continued provision of reliable, fully accessible transit vehicles, which are appropriate to routes on which they operate. In addition, the project will reduce air pollutants (PM and NOx) and GHG emissions through the use of vehicles with improved lifecycle GHG emissions and lower tailpipe emissions of NOx and PM. 4. Project Eligibility (check one): Local Roads and Bridges, including active transportation Public Transit 17 FIC - 34
5. Project Purpose (check one): Expansion: Expands the carrying capacity of people and/or goods movement. State of Good Repair: Replaces or modernizes assets to keep the regional transportation system in a state of good repair. Operational Efficiency/Effectiveness: Improves the efficiency or effectiveness of the regional transportation system. Refurbishment New Other (please specify : ) 6. Project Type (check one): Growth Upgrade Risk (Resilience) Maintenance Opportunity 7. Project Staging: Year(s) of Acquisition or Start of Construction Year of Completion of Construction Year of Service Initialization Year(s) of Renewal 2017 2018 2018 N/A 2035 Year(s) of End of Service 8. Has the project previously received funding through GVRF? Please explain. Yes. Funding was approved on April 2013 for 45 40 foot buses and on May 23, 2014 for 26 60 foot buses. Funding for 40 additional 40 foot buses was approved in September 2016. The original vehicle type identified in September was diesel for a cost of $30M with funding of $28.5M. The new vehicle types are a mix of 30 40 foot CNG and 10 40 foot hybrid for a total cost of $34.0M. 9. Was GVRF funding previously declined for the project? Please explain. No. 18 FIC - 35
10. Is the project anticipated to require additional future GVRF funding? If so, please explain. No. TransLink is planning to complete this project within budget. 11. Project Cost + Funding 11.a Budget & Expenditures Budget Expenditures to Date Forecast to Complete Final Forecasted Cost $34,000,000 $0 $34,000,000 $34,000,000 $0 Variance (budget final forecasted cost) 11.b Project Funding Prior Approved GVRF Funding Current Year GVRF Funding Request $28,500,000 $3,800,000 N/A Other Funding Specify source and whether confirmed/pending 11.c Project Budget Schedule Item 2016 2017 2018 2019 2020 2021 GVRFfunded $29,070,000 $3,230,000 Project Budget Total Project Budget $30,600,000 $3,400,000 12. Project Budget Rationale Describe the types of proposed project expenses to be funded by the Greater Vancouver Regional Fund Proposed project expenditures to be funded include replacement vehicles and associated equipment along with other eligible project related costs. a. Explain how the project reflects the intent of the GVRF This project provides a reduction in GHG and NOx and PM emissions relative to standard diesel buses and ensures TransLink s assets are maintained in a State of Good Repair, so as to allow TransLink to efficiently and effectively provide transit service to the general public and those who have accessibility challenges. The purchase of vehicles of with improved lifecycle GHG emissions and lower tailpipe NOx and PM emissions also aligns with Metro Vancouver s IAQGGMP goals. 19 FIC - 36
b. In the absence of GVRF funding, can the project proceed with other funding sources? What risks do the other funding sources present to the project? No. TransLink relies on GVRF funding to modernize its revenue vehicle fleets and plans its annual budgets accordingly. The other sources of funding available to TransLink are Building Canada Fund and the Public Transit Infrastructure Fund. The projects chosen by TransLink for GVRF funding are better suited to GVRF funding compared to the other sources of funding, as summarized below: Building Canada Fund (BCF) the funding available is intended for major infrastructure and focuses on larger, strategic infrastructure projects that are of national or regional significance. Additionally, all funds in the current allocation have already been allocated to specific projects. Public Transit Infrastructure Fund (PTIF) this fund is focused on early works for expansion of the Rapid Transit network such as the Expo, Millennium and Canada Line networks, along with the Surrey Light Rail Transit projects. Also, under this fund the maximum federal funding towards a project is limited to 50% of the total eligible expenditures; no such limits are identified in the GVRF. Lastly, projects to be funded under this program have already been submitted to the federal government. In addition, BCF and PTIF funding is only available for a specified period of time: BCF is valid until March 31, 2017 (with some station upgrades extended to March, 2019), and PTIF applies to projects initiating in 2016 17 and 2017 18. As such, there are no other viable funding sources available for fleet modernizations c. Identify potential risks corporate and regional of this project that could result in this project not being completed or being unsuccessful. Describe possible mitigation strategies to address these risks. 1. The original requirement was for TransLink to have these vehicles in service for 2016 in order to modernize older vehicles reaching the end of their lives. There is an approximate lead time of 12 to 18 months between TransLink ordering the vehicles and those vehicles entering service. As such, it is important to have the funding in place to ensure the timely retirement of vehicles before they reach the end of their useful service lives. 2. If funding is not received in time, TransLink can keep older buses in service; however, it will lead to incremental maintenance costs. Alternatively, TransLink could reduce bus service, potentially leading to decreased service reliability, as well as contingent liabilities. d. How may the project cost vary as a result of changing external factors, such as interest rates and currency exchange rates? Project costs may vary due to foreign exchange fluctuations (as parts are procured from the US) and vendor pricing. These uncertainties are mitigated with sufficient contingency allowance to fund price and foreign exchange fluctuations. 20 FIC - 37
e. How may foreseeable changes in investment, regulation, or policies from other orders of government affect the project? Due to recent increases in senior government funding for public transit projects, many suppliers are experiencing larger demands to order vehicles. This may create a backlog with vendors, and if procurement is not initiated soon, could result in further delay in ordering and receiving vehicles. f. How may foreseeable changes in technology affect the project? This application is based on the new vehicles being CNG and hybrid powered, and is a change from the original application for diesel powered buses. TransLink has taken into account its existing infrastructure, as well as the opportunity to transition to lower emissions vehicles, in arriving at a decision on this particular technology. We don t anticipate further changes as orders are being placed in near future. g. What other corporate or external factors could alter the project need, scope, budget, or timeline for project delivery? There are no foreseeable corporate or external factors that could alter the project need or scope of this project. Project timeline may be affected by manufacturer s capacity and schedules, availability of parts and/or time for vehicle delivery from the manufacturer. Budget may fluctuate due to parts pricing and/or foreign exchange. In order to ensure that the vehicles received are up to the standards expected and delivered on time TransLink conducts regular factory audits and inspections of the manufacturers facilities. 21 FIC - 38
D. EVALUATION CRITERIA Please describe how project achieves or works towards each criterion by identifying and reporting on relevant performance measures. Where appropriate, present quantitative information. Please do not exceed 10 pages per project. Two types of evaluation criteria are identified: Screening Criteria, which represent requirements that are mandatory for any project for which GVRF funding is requested; and Integrated Criteria, which allow for a qualitative assessment of proposed projects based on high priority objectives that reflect the intent of the Federal Gas Tax Fund, of Metro Vancouver goals, and of the Mayors Council Vision. Criterion Description Assessment SCREENING CRITERIA Eligible Project Category Local roads and bridges, including active transportation Public transit Required Eligible Expenses Plan Consistency Corporate Policies As set out in the 2014 Administrative Agreement (Schedule C) and based on past purchases eligible expenses are estimated at 95% ($32.3 million) of total project costs of $34.0 million. Eligible Item Expenditure CNG Buses $23,400,000 Hybrid Buses 10,300,000 On board equipment 300,000 Total $34,000,000 Projects must be consistent with TransLink s existing Capital Plan and future 10 Year Investment Plan, as well as the Mayors Council Transportation and Transit Plan, Metro 2040: Shaping our Future, and the Regional Transportation Strategy. 10 Year Investment Plan Mayors Council Transportation and Transit Plan Metro 2040: Shaping our Future Regional Transportation Strategy Projects must be consistent with applicable TransLink policies such as sustainability, environmental responsibility, emissions and infrastructure Sustainability policy Environmental policy Emissions policy Infrastructure policy n/a Required Required Required 22 FIC - 39
Criterion Description Assessment Supports the Regional Growth Strategy Urban Centres and Frequent Transit Development Areas INTEGRATED CRITERIA Regional Growth Strategy The degree to which the project assists in achieving the five goals in Metro 2040. Create a Compact Urban Area Support a Sustainable Economy Protect Environment and Respond to Climate Change Impacts Develop Complete Communities Support Sustainable Transportation Choices Where applicable, the project is located in, or demonstrates tangible benefits to the overall performance of Urban Centres and Frequent Transit Development Areas. Conventional CNG & hybrid buses provide services to all lower mainland communities within TransLink s transportation service region, and offer an environmentally responsible and sustainable transportation alternative to single occupant vehicle travel. They link communities with business, institutional and social hubs and destinations, and facilitate the creation and expansion of Transit Oriented Developments (TODs). They also provide collector and distribution services to Expo, Millennium, Evergreen and Canada Lines, West Coast Express and Sea Bus. Poor/Good/ Excellent Poor/Good/ Excellent Headline Targets Other Transportation Outcomes Transportation Performance Demonstrates tangible beneficial effects on vehicle kilometres travelled and/or walk/cycle/transit mode share. This is a one for one replacement vehicle project with no passenger capacity increase. Only the propulsion technology changes, so there are no incremental vehicle kilometers travelled or shift to walk/cycle/transit mode share. Demonstrates tangible beneficial effects on vehicle congestion, transit passenger congestion, transit ridership, and/or transportation safety for the duration of the project. This is a one for one replacement vehicle project with no passenger capacity increase. Only the propulsion technology changes, so there are no incremental benefits to vehicle congestion, transit passenger congestion, transit ridership and/or transportation safety. Poor/Good/ Excellent Poor/Good/ Excellent Project Type Demonstrated value of the project type (refer to section 6). Poor/Good/ Excellent 23 FIC - 40
Criterion Description Assessment By maintaining TransLink s assets in good repair, vehicles will have fewer breakdowns and service disruptions, operating costs will not increase, and pollutant emissions will be reduced. Regional Environmental Objectives Supports the Integrated Air Quality and Greenhouse Gas Management Plan Measurable Beneficial Effects Contributes to the achievement of one or more goals in the Integrated Air Quality and Greenhouse Gas Management Plan(IAQGGMP). Due to the improved lifecycle GHG emissions and lower tailpipe NOx and PM emissions of new CNG and hybrid vehicles relative to new diesels, tangible benefits of the project will include reductions in fleet GHG and NOx and PM emissions. These reductions support Metro Vancouver IAQGGMP goals of protecting public health and the environment (Goal 1) and minimizing the region s contribution to global climate change (Goal 3). Most significantly, CNG vehicles will reduce public exposure to diesel particulate matter (Strategy 1.1), and reduce the carbon footprint of the region s transportation system (Strategy 3.3). Demonstrates tangible beneficial effects on greenhouse gas and common air contaminant emissions from on road transportation sources for the duration of the project. Measurable benefits from substituting new diesel vehicles with new Conventional CNG and hybrid vehicles include the following estimated reductions in emissions: Comparison of Greenhouse Gas emissions of new Diesel to new CNG (approximate) Tailpipe GHG emissions of new CNG 7% less than new diesel Comparison of NOx emissions of new diesel to new CNG (approximate) Tailpipe NOx and PM emissions from new diesel, hybrid, and CNG buses are very low; the majority of total NOx and PM emissions from these buses are upstream emissions from production, processing, and transport of fuel. There is very little difference in tailpipe NOx emissions between new CNG and new diesel due to very strict engine standards (0.475 g/km for CNG vs 0.460 g/km for diesel) There is very little difference in tailpipe PM emissions between new CNG and new diesel due Poor/Good/ Excellent Poor/Good/ Excellent 24 FIC - 41
Criterion Description Assessment to very strict engine standards (0.007 g/km for CNG vs 0.003 g/km for diesel) in comparison to replacing old diesel, both are 80 86% improvement in PM. Comparison of emissions of new diesel to new hybrid (approximate) GHG emissions of new hybrid is 20% less than that of new diesel (tailpipe) NOx emissions of new hybrid is 20% less than that of new diesel (tailpipe) PM emissions of new hybrid is 20% less than that of new diesel (tailpipe) Increasing the CNG and hybrid bus fleet supports Metro Vancouver s IAQGGMP with the goal of protecting public health and the environment, improving air quality and reducing the contribution of global climate change. Supports regional prosperity Measurable Beneficial Effects Economic Development Contributes to a regional transportation system that moves people and goods and aligns with regional prosperity. New Conventional CNG and hybrid buses have comparable reliability to new diesel buses originally approved in the September 2016 GVRF application. Replacement buses provide improved reliability to the regional transportation system by improving the reliability of arterial service to institutional, economic and other transit mode hubs. Passengers will have better access to work and/or leisure activities, reducing the use of single occupant vehicle travel. Tangible beneficial effects on the movement of people and/or goods for the duration of the project. New Conventional CNG and hybrid buses have comparable reliability to new diesel buses originally approved in the September 2016 GVRF application. Replacement buses provide improved reliability of the bus fleet, resulting in improved reliability to the transit network, and ultimately improving economic competitiveness. More reliable transit provides better access to jobs, workers, and markets, while reducing congestion and improving reliability for the movement of workers and goods. Poor/Good/ Excellent Poor/Good/ Excellent 25 FIC - 42
APPLICATION FOR FUNDING FROM THE GREATER VANCOUVER REGIONAL FUND FOR FEDERAL GAS TAX FUNDS Project 8 2017 Conventional Hybrid Bus Purchases (Ref# 162130) 26 FIC - 43
B. MAYORS COUNCIL TRANSPORTATION AND TRANSIT PLAN Please describe how the project fits within, and provides support to, the Mayors Council Transportation and Transit Plan. Maintain what is needed in a state of good repair Invest in the road network to improve safety, local access and goods movement Expand our transit system to increase ridership in high demand areas and provide basic coverage in low-demand neighbourhoods Develop safe and convenient walking connections to transit and pursue early investments to complete the bikeway network, making it possible for more people to travel by these healthy, low cost, and emission-free modes Manage our transportation system more effectively with safety and passenger comfort improvements, new personalized incentive programs, advanced technology and infrastructure management solutions, efficient and fair mobility pricing, and better parking management Partner to make it happen with explicit implementation agreements and processes that support concurrent decisions on land-use and transportation investments, stable and sufficient long-term funding solutions, and better monitoring of progress TransLink has an ongoing program of fleet modernization to keep the transit network in a state of good repair. The 2016 conventional bus purchases were included as part of the modernization program in TransLink s 2014 Base Plan. This modernization program is foundational to TransLink, and it is critical to the success of Metro Vancouver s expansion, as outlined by the Mayors Council on Regional Transportation vision: Regional Transportation Investments: A Vision for Metro Vancouver (Mayors Council 10 Year Vision). The Mayors Council 10 Year Vision on regional transportation outlines a long term, region wide, integrated, multi modal transportation vision to fight congestion, reduce greenhouse gas (GHG) emissions and to keep a fast growing gateway economy, of almost 2.5 million residents, moving. The Mayors Council 10 Year Vision is built on 3 key strategies to achieve necessary improvements: invest in the most urgent and effective investments, manage the system more effectively, and partner to ensure that supportive conditions are in place for these investments to succeed. Following adoption by the Mayors Council, in June 2014, the Mayors Council 10 Year Vision was subsequently endorsed by the TransLink Board, as the implementation blueprint for the Regional Transportation Strategy (RTS). The 10 Year Vision includes a package of investments aimed at addressing the most basic needs for enhancements to the regional transportation network, allowing the network to keep up with growth in population and employment. 27 FIC - 44
In November 2016, the TransLink Board and Mayors Council approved the 2017 2026 Investment Plan (Phase One of the 10 Year Vision). The Phase One Plan includes development of a Low Carbon Fleet Strategy to reduce emissions from transit vehicles across the region of which this application aligns to. This project, through fleet modernization and substitution of planned new diesel buses with new hybrid buses, supports the 10 Year Vision desired outcomes of maintaining the transit system and reducing GHG emissions. 28 FIC - 45
C. PROJECT DESCRIPTION Please complete the following for each project proposed for expenditure from the GVRF. 1. Executive Summary (not to exceed two pages) Project Overview TransLink has 1,390 conventional 40 foot and 60 foot buses in its fleet. Criteria for identifying buses due for retirement are based on a number of factors including: Age (life expectancy of 17 years); Mileage (generally 1,000,000 km); State of repair/condition; and Severity of service duty cycle. In 2017, TransLink has a requirement for replacement of 106 conventional buses consisting of 54 40 foot and 52 60 foot buses reaching the end of their useful lives. The vehicles due to retire were acquired in 2000, have a median age of 16 years and median mileage of 1.2 million km for 40 foot buses and 1.0 million km for 60 foot buses. The new vehicles acquired will have a person and seat capacity of 76 and 36 for 40 foot buses; and 115 and 49 for 60 foot buses respectively. The 40 foot buses were already ordered and will be allocated to the Surrey Transit Center and the 60 foot buses will be allocated to Burnaby, Richmond and Port Coquitlam Transit Centers. TransLink has previously received $75.0 million in funding for 54 40 foot and 52 60 foot buses through Gas Tax funding for Year 9 (2013/14) and $11.7 million in additional funding through Year 10 (2014/15). TransLink is now reapplying to purchase 52 60 foot hybrids instead of diesel buses. The requested change is to order the most suitable buses using currently available technology when the initial application was submitted in September, it was understood that a larger diesel engine would be available from current vendors. This larger engine is not yet available, and currently available diesel engines do not provide sufficient power for the operating needs for these buses. The 60 foot hybrid buses have the same diesel engine size and power output as the conventional 60 foot diesel buses paired with the largest available electric generator output, a battery pack 4 times the size of past hybrids (increased from 8.5Kw to 32Kw) and full electrification of accessories that reduce parasite loads on the engine when peak output is required. Therefore, the scope change is able to support current operational needs, including overcoming steep terrain. The bus fleet propulsion technologies available to TransLink include diesel, CNG, trolley and hybrids. Based on current demand and optimization of resources, TransLink is requesting the 52 60 foot diesel buses to be changed to hybrid buses. The 60 foot hybrid buses will be operated out of the Vancouver Transit Centre, Burnaby Transit Centre, Richmond Transit Centre and Hamilton Transit Centre. Hybrid buses are typically allocated to urban garages with the lowest average speed routes to maximize fuel efficiency and reduce GHG emissions. The 60 foot hybrids offer superior gradeability and acceleration on Metro Vancouver s topography. Tangible Benefits and Outcomes 29 FIC - 46
The new hybrid buses will allow Coast Mountain Bus Company (CMBC) to maintain existing service, reduce downtime, avoid incremental operating costs, and reduce environmental pollutants. Measurable benefits from substituting new 60 foot diesel vehicles with 60 foot hybrids include the following estimated reductions in emissions (approximate): GHG emissions of new hybrid is 20% less than that of new diesel (tailpipe) NOx emissions of new hybrid is 20% less than that of new diesel (tailpipe) PM emissions of new hybrid is 20% less than that of new diesel (tailpipe) The shift to hybrid supports Metro Vancouver s Integrated Air Quality and Greenhouse Gas Management Plan (IAQGGMP) as these buses have lower lifecycle GHG emissions and lower tailpipe NOx and PM emissions than new diesel buses. Project Budget, Expenses, and GVRF Funding Request The revised project budget is $79,400,000 with a Greater Vancouver Regional Fund (GVRF) request of $75,430,000. Expenses covered by this budget primarily include vehicle procurement, ancillary on board equipment, and labour. The incremental funding request associated with the scope change from new diesel to new hybrid buses is $19,285,000. 2. Project Name 2017 Conventional Hybrid Bus Purchases (Ref# 162130) 3. Project Need The objectives are to maintain high quality customer service and minimize maintenance and operating costs through continued provision of reliable, fully accessible transit vehicles that are appropriate to routes on which they operate. In addition, the project will reduce NOx and PM instead of GHG emissions through the use of hybrid vehicles with improved lifecycle GHG emissions and lower tailpipe emissions of NOx and PM. 4. Project Eligibility Local Roads and Bridges, including active transportation Public Transit 5. Project Purpose Expansion: Expands the carrying capacity of people and/or goods movement. State of Good Repair: Replaces or modernizes assets to keep the regional transportation system in a state of good repair. 30 FIC - 47
Operational Efficiency/Effectiveness: Improves the efficiency or effectiveness of the regional transportation system. Refurbishment New Other (please specify: ) 6. Project Type Growth Upgrade Risk (Resilience) Maintenance Opportunity 7. Project Staging: Year(s) of Acquisition or Start of Construction Year of Completion of Construction Year of Service Initialization Year(s) of Renewal 2018 2019 2018 N/A 2035 Year(s) of End of Service 8. Has the project previously received funding through GVRF? Please explain. Yes. Funding of $56.1 million has been received under the Year 9 and Year 10 of Federal Gas Tax Fund (FGTF) fund. The Hybrid technology for the 52 60 foot vehicles requires additional funding of $19.3 million. 9. Was GVRF funding previously declined for the project? Please explain. No. 10. Is the project anticipated to require additional future GVRF funding? If so, please explain. No. TransLink is planning to complete this project within budget. 31 FIC - 48
11. Project Cost + Funding 11.a Budget & Expenditures Budget Expenditures to Date Forecast to Complete Final Forecasted Cost $79,400,000 $0 $79,400,000 $79,400,000 $0 Variance (budget final forecasted cost) 11.b Project Funding Prior Approved GVRF Funding Current Year GVRF Funding Request $56,145,000 $19,285,000 N/A Other Funding Specify source and whether confirmed/pending 11.c Project Budget Schedule Item 2016 2017 2018 2019 2020 2021 GVRF-funded $67,887,000 $7,543,000 Project Budget Total Project Budget $71,460,000 $7,940,000 12. Project Budget Rationale Describe the types of proposed project expenses to be funded by the Greater Vancouver Regional Fund a. Explain how the project reflects the intent of the GVRF This project provides a reduction in GHG and NOx and PM emissions relative to standard diesel buses and ensures TransLink s assets are maintained in a State of Good Repair, so as to allow TransLink to efficiently and effectively provide transit service to the general public and those who have accessibility challenges. The purchase of vehicles with improved lifecycle GHG emissions and lower tailpipe NOx and PM emissions also aligns with Metro Vancouver s IAQGGMP goals. b. In the absence of GVRF funding, can the project proceed with other funding sources? What risks do the other funding sources present to the project? No. TransLink relies on GVRF funding to modernize its revenue vehicle fleets and plans its annual budgets accordingly. The other sources of funding available to TransLink are Building Canada Fund and the Public Transit Infrastructure Fund. The projects chosen by TransLink for GVRF funding are better suited to GVRF funding compared to the other sources of funding, as summarized below: Building Canada Fund (BCF) the funding available is intended for major infrastructure and focuses on larger, strategic infrastructure projects that are of national or regional significance. Additionally, all funds in the current allocation have already been allocated to specific projects. 32 FIC - 49
Public Transit Infrastructure Fund (PTIF) this fund is focused on early works for expansion of the Rapid Transit network such as the Expo, Millennium and Canada Line networks, along with the Surrey Light Rail Transit projects. Also, under this fund the maximum federal funding towards a project is limited to 50% of the total eligible expenditures; no such limits are identified in the GVRF. Lastly, projects to be funded under this program have already been submitted to the federal government. In addition, BCF and PTIF funding is only available for a specified period of time: BCF is valid until March 31, 2017 (with some station upgrades extended to March, 2019), and PTIF applies to projects initiating in 2016 17 and 2017 18. As such, there are no other viable funding sources available for fleet modernizations. c. Identify potential risks corporate and regional of this project that could result in this project not being completed or being unsuccessful. Describe possible mitigation strategies to address these risks. 1. The original requirement was for TransLink to have these vehicles in service for 2017 in order to modernize older vehicles reaching the end of their lives. There is an approximate lead time of 12 to 18 months between TransLink ordering the vehicles and those vehicles entering service. As such, it is important to have the funding in place to ensure the timely retirement of vehicles before they reach the end of their useful service lives. 2. If funding is not received in time, TransLink can keep older buses in service; however, it will lead to incremental maintenance costs. Alternatively, TransLink could reduce bus service, potentially leading to decreased service reliability, as well as contingent liabilities. 33 FIC - 50
d. How may the project cost vary as a result of changing external factors, such as interest rates and currency exchange rates? Project costs may vary due to foreign exchange fluctuations (as parts are procured from the US) and vendor pricing. These uncertainties are mitigated with sufficient contingency allowance to fund price and foreign exchange fluctuations. e. How may foreseeable changes in investment, regulation, or policies from other orders of government affect the project? Due to recent increases in senior government funding for public transit projects, many suppliers are experiencing larger demands to order vehicles. This may create a backlog with vendors, and if procurement is not initiated soon, could result in further delay in ordering and receiving vehicles. f. How may foreseeable changes in technology affect the project? The original application requested diesel buses. Because of engine deficiencies identified from the manufacturer, the application is resubmitted to use hybrid buses instead. (see below). g. What other corporate or external factors could alter the project need, scope, budget, or timeline for project delivery? In the original application there were no foreseeable corporate or external factors that should have altered the project need or scope of this project. However, in early 2016, when this order was being submitted, we were told that the vendor would have a larger engine available to the transit market for 2018 deliveries, but this turned out not to be the case. The bus will be under powered and not able to handle steep grades if left as a straight diesel option. Hybrid vehicles will be better able to service these steep grades, so a switch from diesel to hybrid technology is expected to support operational needs, while also yielding a GHG reduction benefit. In order to ensure that the vehicles received are up to the standards expected and delivered on time TransLink conducts regular factory audits and inspections of the manufacturers facilities. 34 FIC - 51
D. EVALUATION CRITERIA Please describe how project achieves or works towards each criterion by identifying and reporting on relevant performance measures. Where appropriate, present quantitative information. Please do not exceed 10 pages per project. Two types of evaluation criteria are identified: Screening Criteria, which represent requirements that are mandatory for any project for which GVRF funding is requested; and Integrated Criteria, which allow for a qualitative assessment of proposed projects based on high priority objectives that reflect the intent of the Federal Gas Tax Fund, of Metro Vancouver goals, and of the Mayors Council Vision. Criterion Description Assessment SCREENING CRITERIA Eligible Project Category Local roads and bridges, including active transportation Public transit Required Eligible Expenses As set out in the 2014 Administrative Agreement (Schedule C) Required Plan Consistency Corporate Policies Supports the Regional Growth Strategy Eligible Item Expenditure Hybrid Buses $78,900,000 On board equipment 500,000 Total $79,400,000 Projects must be consistent with TransLink s existing Capital Plan and future 10 Year Investment Plan, as well as the Mayors Council Transportation and Transit Plan, Metro 2040: Shaping our Future, and the Regional Transportation Strategy. 10 Year Investment Plan Mayors Council Transportation and Transit Plan Metro 2040: Shaping our Future Regional Transportation Strategy Projects must be consistent with applicable TransLink policies such as sustainability, environmental responsibility, emissions and infrastructure Sustainability policy Environmental policy Emissions policy Infrastructure policy n/a INTEGRATED CRITERIA Regional Growth Strategy The degree to which the project assists in achieving the five goals in Metro 2040. Create a Compact Urban Area Required Required Poor/Good/ Excellent 35 FIC - 52
Criterion Description Assessment Support a Sustainable Economy Protect Environment and Respond to Climate Change Impacts Develop Complete Communities Support Sustainable Transportation Choices Urban Centres and Frequent Transit Development Areas Where applicable, the project is located in, or demonstrates tangible benefits to, the overall performance of Urban Centres and Frequent Transit Development Areas. Conventional hybrid buses provide services to all lower mainland communities within TransLink s transportation service region, and offer an environmentally responsible and sustainable transportation choice to single occupant vehicle travel. They link communities with business, institutional and social hubs and destinations, and facilitate the creation and expansion of Transit Oriented Developments (TODs). They also provide collector and distribution services to Expo, Millennium, Evergreen and Canada Lines, West Coast Express and Sea Bus. Poor/Good/ Excellent Headline Targets Other Transportation Outcomes Transportation Performance Demonstrates tangible beneficial effects on vehicle kilometres travelled and/or walk/cycle/transit mode share. This is a one for one replacement vehicle project with no passenger capacity increase, only the propulsion technology changes, so there are no incremental vehicle kilometers travelled or shift to walk/cycle/transit mode share. Demonstrates tangible beneficial effects on vehicle congestion, transit passenger congestion, transit ridership, and/or transportation safety for the duration of the project. This is a one for one replacement vehicle project with no passenger capacity increase, only the propulsion technology changes, so there are no incremental benefits to vehicle congestion, transit passenger congestion, transit ridership and/or transportation safety. Project Type Demonstrated value of the project type (refer to section 6). By maintaining TransLink s assets in good repair, vehicles will have fewer breakdowns and service disruptions, operating costs will not increase, and pollutant emissions will be reduced. Poor/Good/ Excellent Poor/Good/ Excellent Poor/Good/ Excellent Supports the Integrated Air Quality and Regional Environmental Objectives Contributes to the achievement of one or more goals in the Integrated Air Quality and Greenhouse Gas Management Plan. Due to the improved lifecycle GHG emissions and lower NOx Poor/Good/ Excellent 36 FIC - 53
Criterion Description Assessment Greenhouse Gas Management Plan and PM emissions of new hybrid vehicles relative to new diesels, tangible benefits of the project will include reductions in fleet GHG and NOx and PM emissions. These reductions support Metro Vancouver IAQGGMP goals of protecting public health and the environment (Goal 1) and minimizing the region s contribution to global climate change (Goal 3). Most significantly, hybrid vehicles will reduce public exposure to diesel particulate matter (Strategy 1.1), and reduce the carbon footprint of the region s transportation system (Strategy 3.3). Measurable Beneficial Effects Demonstrates tangible beneficial effects on greenhouse gas and common air contaminant emissions from on road transportation sources for the duration of the project. Measurable benefits from substituting new conventional diesel buses with hybrid vehicles include the following estimated reductions in emissions (approximate): GHG emissions of new hybrid is 20% less than that of new diesel (tailpipe) NOx emissions of new hybrid is 20% less than that of new diesel (tailpipe) PM emissions of new hybrid is 20% less than that of new diesel (tailpipe) Poor/Good/ Excellent Supports regional prosperity Measurable Beneficial Effects Economic Development Contributes to a regional transportation system that moves people and goods and aligns with regional prosperity. New hybrid buses have comparable reliability to new diesel buses originally approved in the September 2016 GVRF application. Replacement buses provide improved reliability to the regional transportation system by improving the reliability of arterial service to institutional, economic and other transit mode hubs. Passengers will have better access to work and/or leisure activities, reducing the use of single occupant vehicle travel. Tangible beneficial effects on the movement of people and/or goods for the duration of the project. New Conventional CNG and hybrid buses have comparable reliability to new diesel buses originally approved in the September 2016 GVRF application. Replacement buses provide improved reliability of the bus fleet, resulting in improved reliability to the transit network, and ultimately improving economic competitiveness. More reliable transit provides better access to jobs, workers, and markets, while reducing congestion and improving reliability for the Poor/Good/ Excellent Poor/Good/ Excellent 37 FIC - 54
Criterion Description Assessment movement of workers and goods. 38 FIC - 55
APPLICATION FOR FUNDING FROM THE GREATER VANCOUVER REGIONAL FUND FOR FEDERAL GAS TAX FUNDS Project 9 2018 Conventional CNG Bus Purchases (Ref# 172130) 39 FIC - 56
B. MAYORS COUNCIL TRANSPORTATION AND TRANSIT PLAN Please describe how the project fits within, and provides support to, the Mayors Council Transportation and Transit Plan. Maintain what is needed in a state of good repair Invest in the road network to improve safety, local access and goods movement Expand our transit system to increase ridership in high demand areas and provide basic coverage in low-demand neighbourhoods Develop safe and convenient walking connections to transit and pursue early investments to complete the bikeway network, making it possible for more people to travel by these healthy, low cost, and emission-free modes Manage our transportation system more effectively with safety and passenger comfort improvements, new personalized incentive programs, advanced technology and infrastructure management solutions, efficient and fair mobility pricing, and better parking management Partner to make it happen with explicit implementation agreements and processes that support concurrent decisions on land-use and transportation investments, stable and sufficient long-term funding solutions, and better monitoring of progress TransLink has an ongoing program of fleet modernization to keep the transit network in a state of good repair. The 2018 conventional bus purchases were included as part of the modernization program in TransLink s 2014 Base Plan. This modernization program is foundational to TransLink, and it is critical to the success of Metro Vancouver s expansion, as outlined by the Mayors Council on Regional Transportation vision: Regional Transportation Investments: A Vision for Metro Vancouver (Mayors Council 10 Year Vision). The Mayors Council 10 Year Vision on regional transportation outlines a long term, region wide, integrated, multi modal transportation vision to fight congestion, reduce greenhouse gas (GHG) emissions and to keep a fast growing gateway economy, of almost 2.5 million residents, moving. The Mayors Council 10 Year Vision is built on 3 key strategies to achieve necessary improvements: invest in the most urgent and effective investments, manage the system more effectively, and partner to ensure that supportive conditions are in place for these investments to succeed. Following adoption by the Mayors Council, in June 2014, the Mayors Council 10 Year Vision was subsequently endorsed by the TransLink Board, as the implementation blueprint for the Regional Transportation Strategy (RTS). The 10 Year Vision includes a package of investments aimed at addressing the most basic needs for enhancements to the regional transportation network, allowing the network to keep up with growth in population and employment. 40 FIC - 57
In November 2016, the TransLink Board and Mayors Council approved the 2017 2026 Investment Plan (Phase One of the 10 Year Vision). The Phase One Plan includes development of a Low Carbon Fleet Strategy to reduce emissions from transit vehicles across the region of which this application aligns to. This project, through fleet modernization and substitution of planned new diesel buses with new Compressed Natural Gas (CNG) buses, supports the 10 Year Vision desired outcomes of maintaining the transit system and reducing GHG emissions. 41 FIC - 58
C. PROJECT DESCRIPTION Please complete the following for each project proposed for expenditure from the GVRF. 1. Executive Summary (not to exceed two pages) Project Overview TransLink has 1,390 conventional 40 foot and 60 foot buses in its fleet. Criteria for identifying buses due for retirement are based on a number of factors including: Age (life expectancy of 17 years); Mileage (generally 1,000,000 km); State of repair/condition; and Severity of service duty cycle. Based on the criteria for vehicle retirement, this project is to replace 92 diesel conventional 40 foot buses, acquired in 2001. The vehicles, due to retire in 2018, are currently operated out of the Richmond and Surrey transit centres, have a median age of 15 years and median mileage of 1.1 million km. The new vehicles acquired will have a person and seat capacity of 35. The plan is to allocate new vehicles on a one to one basis with retiring vehicles. TransLink has previously received $60.8 million in funding for 52 40 foot CNG and 40 40 foot diesel buses through Gas Tax funding for Year 10 (2014/15). TransLink is now reapplying to purchase 17 40 foot CNG instead of 17 of the approved 40 foot conventional diesel buses. The CNG buses will be allocated to the Surrey Transit Centre, in order to take advantage of the new CNG fuelling facility at the Surrey Transit Centre and the resulting operating cost savings. The new CNG facility is expected to be in service in 2017. Choices of vehicle size and propulsion types will continue to be optimized, as informed by ongoing monitoring of ridership and propulsion technologies. Tangible Benefits and Outcomes The new conventional CNG buses will allow Coast Mountain Bus Company (CMBC) to maintain existing service, reduce downtime, avoid incremental operating costs, and reduce environmental pollutants. Measurable benefits from substituting new Conventional diesel vehicles with new CNG vehicles include the following estimated reductions in emissions: Comparison of Greenhouse Gas emissions of new diesel to new CNG (approximate) Tailpipe GHG emissions of new CNG 7% less than new diesel Comparison of NOx emissions of new diesel to new CNG (approximate) Tailpipe NOx and PM emissions from new diesel and CNG buses are very low; the majority of total NOx and PM emissions from these buses are upstream emissions from production, processing, and transport of fuel. There is very little difference in tailpipe NOx emissions between new CNG and new diesel due to very strict engine standards (0.475 g/km for CNG vs 0.460 g/km for diesel). If 42 FIC - 59
upstream emissions are considered, CNG has 15% less emissions. Otherwise they are very similar in terms of tailpipes (both options are a large improvement over retiring vehicles) There is very little difference in tailpipe PM emissions between new CNG and new diesel due to very strict engine standards (0.007 g/km for CNG vs 0.003 g/km for diesel) in comparison to replacing old diesel, both are 80 86% improvement in PM. If upstream emissions are considered, PM emissions for new CNG are 20% less than new diesel. Project Budget, Expenses, and GVRF Funding Request The project budget is $13,463,000 with a Greater Vancouver Regional Fund (GVRF) request of $12,790,000. Expenses covered by this budget primarily include vehicle procurement, ancillary on board equipment and debt financing charges. This application requests an incremental GVRF amount of $1,125,000. 2. Project Name 2018 Conventional CNG Bus Purchases (Ref# 172130) 3. Project Need The objectives are to maintain high quality customer service and minimize maintenance and operating costs through continued provision of reliable, fully accessible transit vehicles that are appropriate to routes on which they operate. In addition, the project will reduce NOx and PM and GHG emissions through the use of modernized vehicles with improved lifecycle GHG emissions and lower tailpipe emissions of NOx and PM compared to the retiring vehicles. 4. Project Eligibility Local Roads and Bridges, including active transportation Public Transit 5. Project Purpose Expansion: Expands the carrying capacity of people and/or goods movement. State of Good Repair: Replaces or modernizes assets to keep the regional transportation system in a state of good repair. Operational Efficiency/Effectiveness: Improves the efficiency or effectiveness of the regional transportation system. Refurbishment New Other (please specify: ) 43 FIC - 60
6. Project Type Growth Upgrade Risk (Resilience) Maintenance Opportunity 7. Project Staging: Year(s) of Acquisition or Start of Construction Year of Completion of Construction Year of Service Initialization Year(s) of Renewal 2018 2019 2019 N/A 2036 Year(s) of End of Service 8. Has the project previously received funding through GVRF? Please explain. Yes. Funding of $11.7 million has been received under the Year 10 of Federal Gas Tax Fund (FGTF) fund. The CNG technology for the additional 17 40 foot vehicles off set by a lower number of conventional 40 foot diesel buses requires additional funding of $1.1 million. 9. Was GVRF funding previously declined for the project? Please explain. No. 10. Is the project anticipated to require additional future GVRF funding? If so, please explain. No. TransLink is planning to complete this project within budget. 11. Project Cost + Funding 11.a Budget & Expenditures Budget Expenditures to Date Forecast to Complete Final Forecasted Cost $13,463,000 $0 $13,463,000 $13,463,000 $0 Variance (budget final forecasted cost) 44 FIC - 61
11.b Project Funding Prior Approved GVRF Funding Current Year GVRF Funding Request $11,665,000 $1,125,000 N/A Other Funding Specify source and whether confirmed/pending 11.c Project Budget Schedule Item 2016 2017 2018 2019 2020 2021 GVRFfunded $11,511,000 $1,279,000 Project Budget Total Project Budget $12,116,700 $1,346,300 12. Project Budget Rationale Describe the types of proposed project expenses to be funded by the Greater Vancouver Regional Fund a. Explain how the project reflects the intent of the GVRF This project provides a reduction in GHG and NOx and PM emissions relative to standard diesel buses and ensures TransLink s assets are maintained in a State of Good Repair, so as to allow TransLink to efficiently and effectively provide transit service to the general public and those who have accessibility challenges. The purchase of vehicles with improved lifecycle GHG emissions and lower tailpipe NOx and PM emissions also aligns with Metro Vancouver s IAQGGMP goals. b. In the absence of GVRF funding, can the project proceed with other funding sources? What risks do the other funding sources present to the project? No. TransLink relies on GVRF funding to modernize its revenue vehicle fleets and plans its annual budgets accordingly. The other sources of funding available to TransLink are Building Canada Fund and the Public Transit Infrastructure Fund. The projects chosen by TransLink for GVRF funding are better suited to GVRF funding compared to the other sources of funding, as summarized below: Building Canada Fund (BCF) the funding available is intended for major infrastructure and focuses on larger, strategic infrastructure projects that are of national or regional significance. Additionally, all funds in the current allocation have already been allocated to specific projects. Public Transit Infrastructure Fund (PTIF) this fund is focused on early works for expansion of the Rapid Transit network such as the Expo, Millennium and Canada Line networks, along with the Surrey Light Rail Transit projects. Also, under this fund the maximum federal funding towards a project is limited to 50% of the total eligible expenditures; no such limits are identified in the GVRF. Lastly, projects to be funded under this program have already been submitted to the federal government. 45 FIC - 62
In addition, BCF and PTIF funding is only available for a specified period of time: BCF is valid until March 31, 2017 (with some station upgrades extended to March, 2019), and PTIF applies to projects initiating in 2016 17 and 2017 18. As such, there are no other viable funding sources available for fleet modernizations c. Identify potential risks corporate and regional of this project that could result in this project not being completed or being unsuccessful. Describe possible mitigation strategies to address these risks. 1. The original requirement was for TransLink to have these vehicles in service for 2018 in order to modernize older vehicles reaching the end of their lives. There is an approximate lead time of 12 to 18 months between TransLink ordering the vehicles and those vehicles entering service. As such, it is important to have the funding in place to ensure the timely retirement of vehicles before they reach the end of their useful service lives. 2. If funding is not received in time, TransLink can keep older buses in service; however, it will lead to incremental maintenance costs. Alternatively, TransLink could reduce bus service, potentially leading to decreased service reliability, as well as contingent liabilities. d. How may the project cost vary as a result of changing external factors, such as interest rates and currency exchange rates? Project costs may vary due to foreign exchange fluctuations (as parts are procured from the US) and vendor pricing. These uncertainties are mitigated with sufficient contingency allowance to fund price and foreign exchange fluctuations. e. How may foreseeable changes in investment, regulation, or policies from other orders of government affect the project? Due to recent increases in senior government funding for public transit projects, many suppliers are experiencing larger demands to order vehicles. This may create a backlog with vendors, and if procurement is not initiated soon, could result in further delay in ordering and receiving vehicles. f. How may foreseeable changes in technology affect the project? This application is based on the new vehicles being CNG powered. TransLink has taken into account its existing infrastructure, as well as the opportunity to transition to lower emissions vehicles, in arriving at a decision on this particular technology. We don t anticipate further changes as orders are being placed in near future. g. What other corporate or external factors could alter the project need, scope, budget, or timeline for project delivery? There are no foreseeable corporate or external factors that could alter the project need or scope of this project. Project timeline may be affected by manufacturer s capacity and schedules, availability of parts and/or time for vehicle delivery from the manufacturer. Budget may fluctuate due to parts 46 FIC - 63
pricing and/or foreign exchange. In order to ensure that the vehicles received are up to the standards expected and delivered on time TransLink conducts regular factory audits and inspections of the manufacturers facilities. D. EVALUATION CRITERIA Please describe how project achieves or works towards each criterion by identifying and reporting on relevant performance measures. Where appropriate, present quantitative information. Please do not exceed 10 pages per project. Two types of evaluation criteria are identified: Screening Criteria, which represent requirements that are mandatory for any project for which GVRF funding is requested; and Integrated Criteria, which allow for a qualitative assessment of proposed projects based on high priority objectives that reflect the intent of the Federal Gas Tax Fund, of Metro Vancouver goals, and of the Mayors Council Vision. Criterion Description Assessment SCREENING CRITERIA Eligible Project Category Local roads and bridges, including active transportation Public transit Required Eligible Expenses As set out in the 2014 Administrative Agreement (Schedule C) Eligible Item Expenditure 1 CNG Buses 13,330,000 On board equipment 133,000 Total $13,463,000 1 Per Schedule C, Section 1.1, Part a) Required Plan Consistency Corporate Policies Projects must be consistent with TransLink s existing Capital Plan and future 10 Year Investment Plan, as well as the Mayors Council Transportation and Transit Plan, Metro 2040: Shaping our Future, and the Regional Transportation Strategy. 10 Year Investment Plan Mayors Council Transportation and Transit Plan Metro 2040: Shaping our Future Regional Transportation Strategy Projects must be consistent with applicable TransLink policies such as sustainability, environmental responsibility, emissions and infrastructure Sustainability policy Environmental policy Required Required 47 FIC - 64
Criterion Description Assessment Emissions policy Infrastructure policy n/a Supports the Regional Growth Strategy Urban Centres and Frequent Transit Development Areas INTEGRATED CRITERIA Regional Growth Strategy The degree to which the project assists in achieving the five goals in Metro 2040. Create a Compact Urban Area Support a Sustainable Economy Protect Environment and Respond to Climate Change Impacts Develop Complete Communities Support Sustainable Transportation Choices Where applicable, the project is located in, or demonstrates tangible benefits to, the overall performance of Urban Centres and Frequent Transit Development Areas. Conventional buses provide services to all lower mainland communities within TransLink s transportation service region, and offer an environmentally responsible and sustainable transportation alternative to single occupant vehicle travel. They link communities with business, institutional and social hubs and destinations, and facilitate the creation and expansion of Transit Oriented Developments (TODs). They also provide collector and distribution services to Expo, Millennium, Evergreen and Canada Lines, West Coast Express and Sea Bus. Poor/Good/ Excellent Poor/Good/ Excellent Headline Targets Other Transportation Outcomes Transportation Performance Demonstrates tangible beneficial effects on vehicle kilometres travelled and/or walk/cycle/transit mode share. This is a one for one replacement vehicle project with no passenger capacity increase, only the propulsion technology changes, so there are no incremental vehicle kilometers travelled or shift to walk/cycle/transit mode share. Demonstrates tangible beneficial effects on vehicle congestion, transit passenger congestion, transit ridership, and/or transportation safety for the duration of the project. This is a one for one replacement vehicle project with no passenger capacity increase, only the propulsion technology changes, so there are no incremental benefits to vehicle congestion, transit passenger congestion, transit ridership and/or transportation safety. Poor/Good/ Excellent Poor/Good/ Excellent 48 FIC - 65
Project Type Demonstrated value of the project type (refer to section 6). By maintaining TransLink s assets in good repair, vehicles will have fewer breakdowns and service disruptions, operating costs will not increase, and pollutant emissions will be reduced. Poor/Good/ Excellent 49 FIC - 66
Supports the Integrated Air Quality and Greenhouse Gas Management Plan Measurable Beneficial Effects Regional Environmental Objectives Contributes to the achievement of one or more goals in the Integrated Air Quality and Greenhouse Gas Management Plan (IAQGHGMP). Due to the improved lifecycle GHG emissions of CNG vehicles relative to new diesels, tangible benefits of the project will include reductions in fleet GHG and NOx and PM emissions. These reductions support Metro Vancouver IAQGGMP goals of protecting public health and the environment (Goal 1) and minimizing the region s contribution to global climate change (Goal 3). CNG vehicles will reduce the carbon footprint of the region s transportation system (Strategy 3.3). Demonstrates tangible beneficial effects on greenhouse gas and common air contaminant emissions from on road transportation sources for the duration of the project. The new conventional CNG buses will allow Coast Mountain Bus Company (CMBC) to maintain existing service, reduce downtime, avoid incremental operating costs, and reduce environmental pollutants. Measurable benefits from substituting new Conventional diesel vehicles with new CNG vehicles include the following estimated reductions in emissions: Comparison of Greenhouse Gas emissions of new diesel to new CNG (approximate) Tailpipe GHG emissions of new CNG 7% less than new diesel Comparison of NOx emissions of new diesel to new CNG (approximate) Tailpipe NOx and PM emissions from new diesel, hybrid, and CNG buses are very low; the majority of total NOx and PM emissions from these buses are upstream emissions from production, processing, and transport of fuel. There is very little difference in tailpipe NOx emissions between new CNG and new diesel due to very strict engine standards (0.475 g/km for CNG vs 0.460 g/km for diesel). If upstream emissions are considered, CNG has 15% less emissions. Otherwise they are very similar in terms of tailpipes (both options are a large improvement over retiring vehicles) There is very little difference in tailpipe PM emissions between new CNG and new diesel due to very strict Poor/Good/ Excellent Poor/Good/ Excellent 50 FIC - 67
engine standards (0.007 g/km for CNG vs 0.003 g/km for diesel) in comparison to replacing old diesel, both are 80 86% improvement in PM. If upstream emissions are considered, PM emissions for new CNG are 20% less than new diesel. Supports regional prosperity Measurable Beneficial Effects Economic Development Contributes to a regional transportation system that moves people and goods and aligns with regional prosperity. New Conventional CNG buses have comparable reliability to new diesel buses originally approved in the September 2016 GVRF application. Replacement buses provide improved reliability to the regional transportation system by improving the reliability of arterial service to institutional, economic and other transit mode hubs. Passengers will have better access to work and/or leisure activities, reducing the use of single occupant vehicle travel. Tangible beneficial effects on the movement of people and/or goods for the duration of the project. New Conventional CNG and hybrid buses have comparable reliability to new diesel buses originally approved in the September 2016 GVRF application. Replacement buses provide improved reliability of the bus fleet, resulting in improved reliability to the transit network, and ultimately improving economic competitiveness. More reliable transit provides better access to jobs, workers, and markets, while reducing congestion and improving reliability for the movement of workers and goods. Poor/Good/ Excellent Poor/Good/ Excellent 51 FIC - 68
5.2 To: From: Finance and Intergovernment Committee Performance and Audit Committee Date: July 10, 2017 Meeting Date: July 19, 2017 Subject: Corporate Allocation Policy At its July 7, 2017 meeting, the Performance and Audit Committee considered the report titled Corporate Allocation Policy, dated June 27, 2017. The Committee passed the recommendations below with the following comments: That the Performance and Audit Committee endorse the Corporate Allocation Policy as presented in the attached report, dated June 27, 2017, titled Corporate Allocation Policy. That the MVRD Board direct staff to review options for the implementation of the Corporate Allocation Policy in future budget years. The Committee was provided, on table, information on the comparison between the current 2017 Budget Corporate Allocation and the 2017 Budget Corporate Allocation based on the methodology included in the proposed policy. (Attachment 1) The Committee inquired about the following: anticipated impacts and/or unintended consequences of the policy potential impact on property tax possibility of staging the cost for smaller jurisdictions opportunity for municipalities to opt out of services The Committee requested consideration be given to the following: policy implementation process inclusion in the policy of an embedded review structure every five years to fit in with the budget cycle Staff responded that the proposed policy will provide certainty and greater predictability with respect to the impacts of corporate allocation and better reflects the requirements under the Local Government Act to ensure the appropriate allocation of centralized support costs. It was noted that the overall regional impact on property taxes would be negligible, as most services are regional in nature. The one service that would incur a small increase was the Sasamat Fire Service. Staff advised that the household impact is anticipated to be between $12 and $18 per year. Staff will provide additional information during the budget process on the household impact which is determined based on the current year operating budget. 22502132 FIC - 69
In response to the question on opting out of services, it was noted that there are provisions in the Local Government Act to initiate service withdrawal if a municipality no longer wishes to participate in a regional district service. However, it was pointed out that these provisions are complex and difficult to achieve as the withdrawal of one participant has an impact on all other participants of a regional service. It was noted that participation of members in centralized support services (such as Aboriginal Relations) do not have opt out provisions. The delivery of these services are determined by the entire Board. Attachments: 1. Corporate Allocation Comparison 2. Corporate Allocation Policy, dated June 28, 2017 (Doc #: 22096675) 22502132 FIC - 70
ATTACHMENT 1 Corporate Allocation Centralized Support Service Costs 2017 Budget Current Based on Increase 2017 Budget Proposed Policy (Decrease) Water $ 22,156,649 $ 23,128,460 $ 971,811 Liquid Waste 19,588,474 20,160,262 571,788 Solid Waste 3,871,134 4,052,675 181,541 Air Quality 590,505 877,842 287,337 Electoral Area Service 32,329 35,829 3,500 General Government 552,044 491,864 (60,180) Labour Relations 293,775 224,605 (69,170) Regional GPS 62,423 28,735 (33,688) Regional Parks 3,215,917 3,152,773 (63,144) Regional Planning 236,613 329,501 92,888 MV Housing Corporation 4,124,906 2,224,887 (1,900,019) E911 Emergency Management 82,116 82,116 - Regional Emergency Management 15,000 14,250 (750) Sasamat Fire Protection Service 6,570 24,656 18,086 $ 54,828,455 $ 54,828,455 $ - FIC - 71
ATTACHMENT 2 To: From: Finance and Intergovernment Committee Carol Mason, Commissioner / Chief Administrative Officer Phil Trotzuk, Chief Financial Officer Date: June 27, 2017 Meeting Date: July 19, 2017 Subject: Corporate Allocation Policy RECOMMENDATION That the MVRD Board approve the Corporate Allocation Policy as presented in the report dated June 27, 2017, titled Corporate Allocation Policy. PURPOSE To seek Board approval of a Corporate Allocation Policy to provide a framework for establishing the appropriate allocation of costs incurred by centralized support services in delivering support services to all business activities of Metro Vancouver s four legal entities. BACKGROUND Metro Vancouver provides centralized support services that provide a benefit to all business activities of the Metro Vancouver four legal entities. These centralized services are delivered through six departments: Corporate Planning, Corporate Services, External Relations, Financial Services, Human Resources and Legal and Legislative Services. The Local Government Act requires that all costs incurred by a regional district in relation to a service, including the costs of administration attributable to the service, are part of the costs of that service. As such, rates, fees and charges must reflect the full cost of Metro Vancouver services to which they relate including those costs incurred by centralized support services. This policy serves to appropriately account for all costs of providing Metro Vancouver services and matching those costs with supporting revenues. Metro Vancouver currently has a defined process of apportioning these centralized support costs as part of the annual budget process, however, as the allocation of these costs have a direct impact on the rates, fees and charges recovered by Metro Vancouver, formalized Board direction on the allocation of these costs is appropriate. This report outlines the principles and methodology of the proposed policy to allocate these costs for Committee and Board consideration. CENTRALIZED SUPPORT SERVICES Centralized support services provide benefit to all business areas of Metro Vancouver and primarily include: corporate administration, information technology, building operations, corporate safety, corporate communications, financial oversight, staff-related services, in-house legal and information services. 22096675 FIC - 72
Corporate Allocation Policy Finance and Intergovernment Committee Meeting Date: July 19, 2017 Page 2 of 5 The total centralized support costs, net of revenues, included in the 2017 Metro Vancouver Budget is $54.8 million ALLOCATION PRINCIPLES AND METHODOLOGY Research and Analysis As part of the Corporate Allocation Policy development process, Metro Vancouver s current allocation rationale was examined along with the practices adopted by other local governments across Canada and the United States. These other local government entities included: Surrey, Richmond, Burnaby, Edmonton, Capital Regional District, York Region, Peel Region and local municipalities in Washington State. In addition, research was gathered on allocation methodologies from major utilities including: Enbridge Gas, Hydro One in Ontario and Alberta Utilities Commission. The practices adopted by other organizations show significant variations on the allocation of centralized support costs being based on the specific circumstances of those organizations. While there are differences in allocation methodologies used by other organizations, the methodologies include some common elements including that centralized support costs should be allocated directly to all benefiting entities and functions where direct benefits can be reasonably determined and in cases where proxies of benefits provided are used as an allocation basis, the establishment of the proxies should be documented including all relevant information on the process and rationale behind the allocation methodology. Metro Vancouver Allocation Principles In cases where it can be demonstrated and quantified that a Metro Vancouver service receives a specific direct benefit from a centralized service activity, the associated costs will be allocated directly to that service. These costs typically include, but are not limited to, costs related to programs such as Metro Vancouver s pooled fleet vehicles and equipment acquisitions, external legal counsel services and contracted security services. For the other centralized service activities, the Corporate Allocation Policy provides a framework that guides the apportionment of Metro Vancouver s centralized support costs to its four legal entities based on a reasonable approximation of services provided in supporting the entity s pursuit of both operational and strategic objectives. The methodology for approximating the level of service provided by each these centralized support services is guided by the following principles: Efficient the method and process of allocating net centralized support costs are easily administered, replicable and comprehensible Equitable net centralized support costs are apportioned fairly across Metro Vancouver services and to the extent possible, upholds a user-pay approach for the level of service provided Consistent net centralized support costs are allocated in a way that mitigates large fluctuations and ensures relative certainty, based on level of use Transparent net centralized support costs allocated to Metro Vancouver services are clearly identified FIC - 73
Corporate Allocation Policy Finance and Intergovernment Committee Meeting Date: July 19, 2017 Page 3 of 5 Within these guiding principles is the understanding that the approximate level of service provided to a Metro Vancouver service is often measured by the impact of two primary factors: (1) number of staff or (2) level of business activity. Those services with larger staff complements will require more centralized support in the areas of payroll, recruiting services, organizational support, benefit administration, IT computer support, training and head office building operations and therefore, will be allocated a higher proportion of these centralized support costs. Alternatively, services that incur significant capital expenditures and have broader business operations will require more centralized support in the areas of purchasing, accounts payable, debt management, budgeting, accounts receivable, legal, business applications and corporate planning and consequently, will be allocated a higher proportion of these centralized costs. To ensure the appropriate allocation of corporate costs, it is proposed that direct delivery services will be allocated a proportion of net centralized support costs based on their prior year operating budget using the parameters described above. Salaries and benefits will serve as indicators that reflect the number of staff supported while other expenditures will serve as indicators of the level of business activity. In cases where it can be demonstrated and quantified that a Metro Vancouver service receives a specific direct benefit from an activity, the associated costs are proposed to be allocated directly to that service. These costs typically include, but are not limited to, costs related to programs such as Metro Vancouver s pooled fleet vehicles and equipment acquisitions, external legal counsel services and contracted security services. ALLOCATION OF CENTRALIZED SUPPORT COSTS TO METRO VANCOUVER SERVICES Internal Service Delivery. The majority of Metro Vancouver services are delivered to members through an internal direct service model. This means that Metro Vancouver staff are engaged in the direct delivery of the service, including most or all of the operating and capital activities. These services include the following: Greater Vancouver Water District Greater Vancouver Sewerage and Drainage District (Liquid Waste and Solid Waste) Metro Vancouver Housing Corporation Metro Vancouver Regional District (Air Quality, Electoral Area, General Government, Labour Relations, Regional GPS, Regional Parks and Regional Planning) For these services, proportionate allocation of net centralized support costs is proposed to be apportioned based on the applicable prior year s operation budget excluding those budget items which inflate expenditures but have a lower overall impact on the requirement for centralized support services. These budget items include contributions to reserve, a portion of third party operating contracts and MVHC long-term mortgages and are adjusted for in order to better reflect the level of service provided by the centralized support services. FIC - 74
Corporate Allocation Policy Finance and Intergovernment Committee Meeting Date: July 19, 2017 Page 4 of 5 External Service Delivery For three Metro Vancouver Regional District services E911 Emergency Telephone, Regional Emergency Management and Sasamat Volunteer Fire Service an external service provider is used to deliver services to members through an external service delivery model. This means that Metro Vancouver staff are engaged to a lesser extent in the delivery of the service, its operating activities and its capital activities. For these services, the proportionate allocation of net centralized support costs is proposed to be apportioned as follows: E911 Emergency Telephone Service allocated net centralized support costs equal to 2% of its current year s operating program budget excluding contributions to reserve. This reflects the level of service associated with the administration of the E911 Telephone Service operating contract and routine finance support. Regional Emergency Management allocated net centralized support costs equal to 5% of its current year s operating program budget excluding contributions to reserve. This reflects the level of service associated with the overall administration of the program, purchasing support and accounts payable. Sasamat Fire Protection Service allocated net centralized support costs equal to 10% of its current year s operating program budget excluding contributions to reserve and large one-time asset purchases. This reflects the level of service associated with function management, fleet vehicle administration, procurement, accounts payable, payroll, budgeting and accounting. Based on the research undertaken in reviewing policy alternatives and the unique structure of Metro Vancouver in allocating costs, the following alternatives are presented for consideration. ALTERNATIVES 1. That the Board approve the Corporate Allocation Policy as presented in the report dated June 27, 2017, titled Corporate Allocation Policy. 2. That the Board approve the Corporate Allocation Policy in the report dated June 27, 2017, titled Corporate Allocation Policy with amendments. 3. That the Board receive for information the report dated June 27, 2017, titled Corporate Allocation Policy and provide alternate direction. FINANCIAL IMPLICATIONS The Corporate Allocation Policy does not have any impact on the overall amount of centralized support costs included in the budget. The policy does, however, have an impact on the total budgets including rates, fees and charges of individual legal entities and functions which is important as there are differences in the supporting membership of each entity and function. The approval of alternative one will ensure Metro Vancouver has in place a formal policy that accounts for the costs of providing centralized support services and that they are reflected appropriately to legal entities and functions. This will reduce annual budget fluctuations while enhancing financial management and long-term financial planning. FIC - 75
Corporate Allocation Policy Finance and Intergovernment Committee Meeting Date: July 19, 2017 Page 5 of 5 The approval of alternatives two or three will have varied financial implications which will need to be quantified accordingly. SUMMARY / CONCLUSION The allocation of centralized support costs to the Metro Vancouver legal entities is an important component in Metro Vancouver s financial planning process as enabling legislation requires that Metro Vancouver rates, fees and charges must reflect the full cost of the Metro Vancouver services to which they relate. The direct allocation or the allocation methodology, based on adjusted operating budgets, included in the policy is reflective of the level of service provided by centralized support services and incorporates the principles of efficiency, equitability, consistency and transparency Staff recommend that the Board approve alternative one with the proposed policy, as attached, to provide clear Board direction for the principles and methodology associated with the allocation of centralized support costs. Attachment: (Doc # 18118970) Corporate Allocation Policy 22096675 FIC - 76
BOARD POLICY ATTACHMENT CORPORATE ALLOCATION Effective Date: Approved By: PURPOSE To provide a framework for establishing the appropriate allocation of costs incurred by centralized support services in delivering support services to all business activities of Metro Vancouver s four legal entities. DEFINITIONS Centralized Support Services are services delivered by centralized departments to support all four Metro Vancouver legal entities and regional district functions through the following: Corporate Planning, Corporate Services, External Relations, Financial Services, Human Resources, and Legal and Legislative Services. Net Centralized Support Costs means expenditures incurred by centralized support services that are net of any costs allocated directly to a legal entity or function and any revenues generated by the centralized support service. Metro Vancouver Service refers to a service provided by one of the four legal entities to which costs of centralized support services are allocated. The legal entities include the Metro Vancouver Housing Corporation (MVHC), Greater Vancouver Water District (GVWD), Greater Vancouver Sewerage and Drainage District (GVS&DD), which includes the legal functions of Liquid Waste and Solid Waste, and the Metro Vancouver Regional District (MVRD), which includes the statutory functions of Air Quality, Electoral Area, General Government, Labour Relations, Regional GPS, Regional Parks, Regional Planning, E911 Telephone Service, Regional Emergency Management and Sasamat Fire Protection Service. POLICY The Local Government Act requires that all costs incurred by a regional district in relation to a service, including the costs of administration attributable to the service, are part of the costs of that service. As such, rates, fees and charges must reflect the full cost of Metro Vancouver services to which they relate including those costs incurred by centralized support services. This policy serves to appropriately account for all costs of providing Metro Vancouver services and matching those costs with supporting revenues. All costs incurred by centralized support services will be allocated to the benefiting Metro Vancouver service utilizing a methodology approximating the level of service provided. The methodology for calculating corporate allocation based on an approximation of service level is provided below. 18118970 Corporate Allocation Policy Page 1 of 4 FIC - 77
BOARD POLICY CORPORATE ALLOCATION PRINCIPLES Every Metro Vancouver service utilizes resources of centralized support departments to some extent in the delivery of that service. The extent of centralized support may range from providing simple contract administration or Metro Vancouver Board and Committee support services, to more extensive support that includes human resources, legal, legislative, communications, financial, information technology, building operations, emergency planning and corporate safety services. The methodology for approximating the level of service provided by each these centralized support services is guided by the following principles: Efficient the method and process of allocating net centralized support costs are easily administered, replicable and comprehensible Equitable net centralized support costs are apportioned fairly across Metro Vancouver services and to the extent possible, upholds a user-pay approach for the level of service provided Consistent net centralized support costs are allocated in a way that mitigates large fluctuations and ensures relative certainty, based on level of use Transparent net centralized support costs allocated to Metro Vancouver services are clearly identified Staffing and Business Activity Requirements Within the guiding principles defined in this policy is the understanding that the approximate level of service provided to a Metro Vancouver service is often measured by the impact of two primary factors: (1) number of staff or (2) level of business activity. For example, those services with larger staff complements will require more centralized support in the areas of payroll, recruiting services, organizational support, benefit administration, IT computer support, training and head office building operations and therefore, will be allocated a higher proportion of these centralized support costs. Alternatively, services that incur significant capital expenditures and procurement activity will require more centralized support in the areas of purchasing, accounts payable, debt management, budgeting, accounts receivable, legal, business applications and corporate planning and consequently, will be allocated a higher proportion of these centralized costs. To ensure the appropriate allocation of corporate costs, direct delivery services will be allocated a proportion of net centralized support costs based on their prior year operating budget using the parameters described above. Salaries and benefits will serve as indicators that reflect the number of staff supported while other expenditures will serve as indicators of the level of business activity. Lower Impact Activity Requirements Some budget items may inflate expenditures but have a lower overall impact on the requirement for centralized support services. These budget items include contributions to reserve, a portion of large third party operating contracts and MVHC long-term mortgages. In order to better reflect the level of service provided by the centralized support services, the calculation of apportionment costs in annual operating budgets will be adjusted for those budget items not requiring centralized support. 18118970 Corporate Allocation Policy Page 2 of 4 FIC - 78
BOARD POLICY Specific Direct Service Activity Requirements In cases where it can be demonstrated and quantified that a Metro Vancouver service receives a specific direct benefit from an activity, the associated costs will be allocated directly to that service. These costs typically include, but are not limited to, costs related to programs such as Metro Vancouver s pooled fleet vehicles and equipment acquisitions, external legal counsel services and contracted security services. METRO VANCOUVER SERVICES INTERNAL SERVICE DELIVERY The majority of Metro Vancouver services are delivered to members through an internal direct service model. This means that Metro Vancouver staff are engaged in the direct delivery of the service, including most or all of the operating and capital activities. For these services, the proportionate allocation of net centralized support costs shall be apportioned as follows: Greater Vancouver Water District (GVWD) The GVWD will be allocated a proportionate share of the net centralized support costs based on its prior year s operating budget excluding centralized support cost allocation and contributions to reserve. Greater Vancouver Sewerage and Drainage District (GVS&DD) Liquid Waste The Liquid Waste function will be allocated a proportionate share of the net centralized support costs based on its prior year s operating budget excluding centralized support cost allocation and contributions to reserve. Greater Vancouver Sewerage and Drainage District (GVS&DD) Solid Waste The Solid Waste function will be allocated a proportionate share of the net centralized support costs based on its prior year s operating budget excluding centralized support cost allocation, 80% of large third party operating contracts and contributions to reserve. The adjustment for a portion of third party operating contracts is to reflect that they require a lower level of service compared to other business activities. Metro Vancouver Housing Corporation (MVHC) The MVHC will be allocated a proportionate share of the net centralized support costs based on its prior year s operating budget excluding centralized support cost allocation, contributions to reserve and 80% of annual mortgage payments. Metro Vancouver Regional District (MVRD) The MVRD functions of Air Quality, Electoral Area, General Government, Labour Relations, Regional GPS, Regional Parks and Regional Planning will be allocated a proportionate share of the net centralized support costs based on their prior year s operating budget excluding centralized support cost allocation, contributions to reserve and large one-time asset purchases. METRO VANCOUVER SERVICES EXTERNAL SERVICE DELIVERY While the majority of Metro Vancouver services are provided through the internal service delivery model some regional services engage the use of an external service provider to deliver services to 18118970 Corporate Allocation Policy Page 3 of 4 FIC - 79
BOARD POLICY members through an external service delivery model. This means that Metro Vancouver staff are engaged to a lesser extent in the delivery of the service, its operating activities and its capital activities. For these services, the proportionate allocation of net centralized support costs shall be apportioned as follows: E911 Emergency Telephone Service E911 Emergency Telephone Service will be allocated net centralized support costs equal to 2% of its current year s operating program budget excluding contributions to reserve. This reflects the level of service associated with the administration of the E911 Telephone Service operating contract and routine finance support. Regional Emergency Management Regional Emergency Management will be allocated net centralized support costs equal to 5% of its current year s operating program budget excluding contributions to reserve. This reflects the level of service associated with the overall administration of the program, purchasing support and accounts payable. Sasamat Fire Protection Service Sasamat Volunteer Fire Service will be allocated net centralized support costs equal to 10% of its current year s operating program budget excluding contributions to reserve and large one-time asset purchases. This reflects the level of service associated with function management, fleet vehicle administration, procurement, accounts payable, payroll, budgeting and accounting. 18118970 Corporate Allocation Policy Page 4 of 4 FIC - 80
5.3 To: From: Finance and Intergovernment Committee Performance and Audit Committee Date: July 10, 2017 Meeting Date: July 19, 2017 Subject: GVS&DD Development Cost Charge Program Review At its July 7, 2017 meeting, the Performance and Audit Committee considered the report dated June 23, 2017, titled GVS&DD Development Cost Charge Program Review Update. The Committee subsequently passed the recommendation below with the following comments: That the Performance and Audit Committee endorse, in principal, the updated GVS&DD Development Charge rates and consultation plan as presented in the report dated June 23, 2017, titled GVS&DD Development Cost Charge Program Review Update. The Performance and Audit Committee considered a number of factors and inquired about the following: rationale behind higher household rates in the North Shore municipalities explanation of the term household impact in the attached table and its relevance to the revised DCC rates ensuring UDI is included in stakeholder consultation and that at least four sub-regional meeting be held reason behind the policy not being reviewed for an extended period of time whether secondary suites and laneway houses incur DCC charges rationale behind DCC charges being calculated at a flat rate rather based on square footage Staff responded that the four sewer areas each have a different cost profile due to differences in population, growth rate, and prior infrastructure investments including the timing of infrastructure built prior to DCC program implementation in 1997. Staff clarified that secondary suites and laneway houses do not incur DCC charges under the current bylaw and this provision is not proposed to be changed. Staff advised that the DCC rate categories are not proposed to change as municipalities have specifically requested that the structure remain the same to ensure consistency across the region with the application of regional DCC rates. Attachment: GVS&DD Development Cost Charge Program Review - Update, dated June 23, 2017 (Doc #: 21468673) 22594578 FIC - 81
ATTACHMENT To: From: Finance and Intergovernment Committee Phil Trotzuk, Chief Financial Officer / General Manager, Financial Services Date: June 23, 2017 Meeting Date: July 19, 2017 Subject: GVS&DD Development Cost Charge Program Review Update RECOMMENDATION That the GVS&DD Board: a) endorse, in principle, the proposed changes to the Development Cost Charge Program with the rates as presented in Attachment 1 of the report dated June 23, 2017, titled GVS&DD Development Cost Charge Program Review Update ; and b) direct staff to proceed with public and stakeholder consultation as presented in the report dated June 23, 2017, titled GVS&DD Development Cost Charge Program Review Update. PURPOSE To present options and recommendations on the development cost charge (DCC) program rate adjustments for purposes of proceeding with consultation with the Province and community stakeholders. BACKGROUND The GVS&DD DCC program has been under review since 2014. In November of 2016 the initial results of the review, including the DCC program policy framework, proposed rate adjustments, and the transition plan for implementation of the program amendments for purposes of consultation was presented to the Utilities Committee and the Finance and Intergovernment Committee. At the November 25, 2016 meeting of the GVS&DD Board, the following motion was passed: That the GVS&DD Board direct staff to proceed with public and stakeholder consultation on the proposed changes to the Development Cost Charge Program following the adoption of the 5-year financial plan in March 2017, and direct staff to report back, prior to the consultation, on phasing of and potential strategies to mitigate the impact of the rate increases. Five year financial plan forecasts and scenarios were presented to the Board at a workshop in February 2017 and will be formally presented in October in conjunction with the 2018 annual budget. This report summarizes the options examined to mitigate the increase in the DCC rates, along with the impact of those options on the liquid waste levy, the overall 5-year financial plan and the household impact. EXISTING DCC RATES DCC rates established by sewer area are per unit for residential and per square foot for nonresidential. The existing DCC rates, in effect since 1997, are as follows: 21468673 FIC - 82
GVS&DD Development Cost Charge Program Review Update Finance and Intergovernment Regular Committee Meeting Date: July 19, 2017 Page 2 of 5 Sewer Area Single-Family Townhouse Apartment Non-Residential Vancouver $ 944 $ 826 $ 590 $0.443 sq ft Lulu Island $1,077 $ 942 $ 673 $0.505 sq ft North Shore $1,291 $1,129 $ 807 $0.605 sq ft Fraser $1,731 $1,515 $1,082 $0.811 sq ft As these rates were established almost 20 years ago, cost and growth conditions have changed significantly and they will not be sufficient to sustain funding requirements for the growth in the region, particularly in the Fraser Sewerage Area. The chart below illustrates expected DCC reserve balances for the next 10 years with the rates currently in place. PROPOSED DCC RATES A 30 year model was developed which projects the DCC s required to fund the Liquid Waste infrastructure expansion for population growth, in conjunction with the planned development within a given sewer area. This development includes the following types of land use: single-family detached, townhouses, apartments, and non-residential development. The DCC requirements are based on funding long-term debt for the growth related infrastructure expenditures and includes future funding on existing debt as well as funding for projected debt. The proposed DCC rates presented at the November 25 th GVS&DD Board meeting were calculated assuming the requirement of funding the principal portion only on growth related long-term debt based on the current financial model over the next 30 years. The calculated rates are as follows: Sewer Area Single-Family Townhouse Apartment Non-Residential Vancouver $1,811 $1,618 $1,072 $0.93 sq ft Lulu Island $2,214 $1,915 $1,388 $1.05 sq ft North Shore $2,300 $2,076 $1,416 $1.20 sq ft Fraser $5,428 $4,695 $3,530 $2.67 sq ft Attachment 1 illustrates these rates in comparison to the existing rates and also provides the anticipated household impact of the sewer levy for the years 2017 to 2026. Also shown is a chart illustrating anticipated DCC reserve balances. FIC - 83
GVS&DD Development Cost Charge Program Review Update Finance and Intergovernment Regular Committee Meeting Date: July 19, 2017 Page 3 of 5 These rates represent that best estimate of the funding required for growth related infrastructure and adheres to the principle of growth paying for growth. While these DCC s represent only a very small portion of the cost of new housing, these rates are a significant increase over the existing rates. It is imperative that the DCC rates be reviewed every three to five years in order to adjust for cost increases as necessary and avoid implementing such significant increases in the future. Varying the Assist Factor Initially, the DCC Review Committee recommended a phase-in period of three years due to the significance of the increase in rates, particularly in the Fraser Sewer Area (FSA). Expanding upon this concept, options for varying the assist factor, primarily within the Fraser Sewerage, were analyzed for additional consideration. An outcome of varying the assist factor in the FSA to reduce the DCC rate resulted in the DCC rate aligning more closely with the proposed rates in the other three areas (Vancouver, North Shore, and Lulu Island). However, this change also resulted in the FSA household rate increasing to offset this loss in DCC revenue. Under this option, the FSA household rate would become closer to the household rates in the three other sewer areas, which are higher primarily due to the fact that much of the growth infrastructure in those sewerage areas was constructed prior to the implementation of the DCC program. In three of the four sewerage areas (Vancouver, Lulu Island and North Shore), the majority of the Tier 1 infrastructure (trunk sewer lines, forcemains, interceptors, pump stations) is generally well established and sufficient to meet most growth needs. The bulk of development reflects infill projects that add capacity but do not trigger significant trunk upgrades. In fact, in two of the sewerage areas (North Shore and Lulu Island) there are no Tier 1 infrastructure projects within the planned DCC program. The FSA, however, is unique in that it includes significant growth development which requires the extension of trunk lines, new pump stations, new interceptors, as well as a river crossing. There are over 70 Tier 1 projects in the FSA DCC program. Despite the fact that significant growth is anticipated within this sewer area, the resulting burden on this one portion of the region is comparatively substantial. To illustrate the impact of varying the assist factor, the table below shows DCC rates with a 50% Assist Factor for Tier 1 Projects in the Fraser Sewerage Area. Sewer Area Single-Family Townhouse Apartment Non-Residential Vancouver $1,811 $1,618 $1,072 $0.93 sq ft Lulu Island $2,214 $1,915 $1,388 $1.05 sq ft North Shore $2,300 $2,076 $1,416 $1.20 sq ft Fraser $4,453 $3,852 $2,897 $2.19 sq ft As noted above, although there would be a decrease in the DCC charges for the FSA, there would be a corresponding increase in the levy with an estimated household impact of $6 (3.5% increase over the prior year) to pay for the growth projects not being covered by the DCC s collected. Several options for varying the assist factor were presented to RAAC on May 25 th. The original proposal retaining the 1% assist factor across all four sewerage areas, without any phase in period, was the preferred approach. FIC - 84
GVS&DD Development Cost Charge Program Review Update Finance and Intergovernment Regular Committee Meeting Date: July 19, 2017 Page 4 of 5 WAIVER OF DCC S FOR AFFORDABLE HOUSING The language for the waiver of DCC s with respect to affordable housing development is under review concurrently by the Housing Policy and Planning group. While it s expected to add clarity and be more effective than the waiver language in the existing bylaw, changes to the waiver language is not expected to materially alter DCC revenue available for funding growth GVS&DD infrastructure projects. CONSULTATION PROCESS The consultation process to date has involved feedback from the regional advisory committees of administrators, engineers, planning and finance. Good feedback was received and there was general support for the policy framework, the initial proposed DCC rates and the transition plan. Next steps in the consultation process include expanded dialogue with the Province, meetings with affected stakeholders including the Urban Development Institute and Greater Vancouver Home Builders Association, regional Boards of Trade and Chambers of Commerce, and the initiation of broad public outreach. The proposed Communications and Engagement process, to be initiated in late August through early November, is outlined as follows: 1. Meetings with stakeholders Host a series of public meetings in each of the four sewerage areas (1 each in Lulu, Vancouver, and North Shore, and 2 in Fraser) at which Metro Vancouver representatives from Finance and Liquid Waste Services will explain the proposed DCC Program and answer questions from the audience. (Late August through October) 2. Dedicated Web Page: Create an online portal that includes detailed information the DCC Program and its anticipated impact on overall development costs. 3. E-mail Distribution Lists Distribution of materials through the appropriate Metro Vancouver databases 4. Meeting(s) with the Province of BC Ongoing throughout consultation process. (September through Early November) Further, TransLink is currently in the process of examining the feasibility of DCC funding for certain transportation projects. As it is important to recognize the impact of the cost of regional charges, Metro Vancouver and TransLink have committed to work together, where practical, on joint public consultation. IMPLEMENTATION TIMELINE It is expected that the consultation process will wrap up in November, with the results and a new DCC bylaw being brought forward before the end of the year. Staff will consult with municipalities to establish an effective date of bylaw implementation that considers the implications to existing processes and communications materials provided to prospective developers. At this time the effective date is expected to be April 1, 2018. FIC - 85
GVS&DD Development Cost Charge Program Review Update Finance and Intergovernment Regular Committee Meeting Date: July 19, 2017 Page 5 of 5 ALTERNATIVES 1. That the GVS&DD Board: a) endorse, in principle, the proposed changes to the Development Cost Charge Program with the rates as presented in Attachment 1 of the report dated June 23, 2017, titled GVS&DD Development Cost Charge Program Review Update ; and b) direct staff to proceed with public and stakeholder consultation as presented in the report dated June 23, 2017, titled GVS&DD Development Cost Charge Program Review Update. 2. That the Finance and Intergovernment Committee receive for information the report dated June 23, 2017, titled GVS&DD Development Cost Charge Program Review Update and provide alternate direction. FINANCIAL IMPLICATIONS Alternative 1: If the Finance and Intergovernment Committee approves alternative 1, the report will be forwarded to the GVS&DD Board for approval. The cost of the public and stakeholder engagement and consultation process will be funded through the liquid waste function budget. Details of the DCC sewerage area rate structure, projected household impact and growth projects by sewerage area are included in Attachments 1 and 2. Alternative 2: If the Finance and Intergovernment Committee approves alternative 2, further analysis may be required to determine the resulting financial impacts. SUMMARY / CONCLUSION The GVS&DD DCC program has been under review since 2014 and in November 2016 the initial review results were presented to the Utilities Committee and the Finance and Intergovernment Committee. At the direction of the Board, since that time further work has been undertaken to build the proposed DCC rates into Metro Vancouver s long term financial plan which will be considered this fall as part of the 2018 annual budget and five year financial plan process. Although a variety of options were considered in the development of the proposed DCC rate structure, the Board principle that growth pays for growth has guided the recommendations presented in this report. The current proposed DCC rates as detailed in Attachment 1 represent the best estimate of DCC funding required for growth related infrastructure and adheres to the principle of growth paying for growth. It is recommended that the Board approve the recommendations as presented in alternative one, and that staff proceed to consultation with the public and key stakeholders on the proposed DCC rate structure. Attachments: 1. Proposed DCC Rates 2. Growth Projects by Sewerage Area 21468673 FIC - 86
ATTACHMENT 1 21468673 FIC - 87
Growth Projects by Sewerage Area 2018-2037 ATTACHMENT 2 Project Estimated Cost Vancouver Sewerage Area Collingwood Trunk Sewer $ 5,090,000 Hastings Sanitary Trunk Sewer 13,300,000 Hastings Sanitary Trunk Sewer No. 2 30,000,000 Hastings-Cassiar Intake Connection 750,000 $ 49,140,000 North Shore Sewerage Area North Vancouver Interceptor - Lynn Branch Pre-build $ 3,500,000 Lulu Island Sewerage Area Lulu Island WWTP Digester No 3 $ 53,300,000 Fraser Sewerage Area AIWWTP Effluent Pump Station $ 61,000,000 AIWWTP Site Construction Layout 600,000 Albert Street Trunk Sewer 4,600,000 Annacis Outfall System 375,000,000 Annacis Stage 5 Expansion Phase 1 & 2 595,500,000 Burnaby Lake North Interceptor Cariboo to Piper Section 41,000,000 Burnaby Lake North Interceptor Phillips to Sperling Section 42,341,163 Burnaby Lake North Interceptor Piper to Philips Section 62,100,000 Burnaby South Slope Interceptor Main Branch 9,500,000 Burnaby South Slope Interceptor West Branch Extension 13,200,000 Cloverdale PS Upgrade 31,100,000 Cloverdale Trunk Sewer Upgrade 28,975,000 Glenbrook Combined Trunk Kingsway Sanitary Section 3,400,000 Golden Ears Forcemain and River Crossing 114,000,000 Golden Ears Pump Station 38,100,000 Langley Pump Station Upgrade 14,300,000 Lozells Sanitary Trunk Golf Course Section 22,150,000 Marshend Pump Station Capacity Upgrade 9,900,000 NLWWTP Ground Improvements Phase A 24,000,000 NLWWTP Ground Improvements Phase B 18,000,000 NLWWTP Liquid Stream Phase A 356,000,000 NLWWTP Liquid Stream Phase B 256,000,000 NLWWTP Solids Handling 126,000,000 North Road Trunk Sewer 7,000,000 North Road Trunk Sewer Phase 2 3,938,000 NSI 104th Ave Extension 6,800,000 NSI Flow Management 39,500,000 NWLWWTP Options 5,000,000 NWLWWTP Phase 1 44,728,793 Port Moody PS Upgrade 9,150,000 Port Moody South Interceptor Upgrade 3,450,000 Queensborough Pump Station Replacement 6,500,000 Rosemary Heights Pressure Sewer Upgrade 10,750,000 Sapperton Forcemain Pump Station Connections 5,500,000 Sapperton Pump Station 76,400,000 South Surrey Interceptor Johnston Section 65,350,000 Sperling PS Increase Pump Capacity 3,000,000 SSI - King George Section - Odor Control Facility (OCF) and Grit Chamber 13,500,000 Stoney Creek Trunk Upgrade 10,200,000 Surrey Central Valley Upgrade 60,800,000 $ 2,618,332,956 FIC - 88
6.1 Priorities 2017 Finance and Intergovernment Committee Work Plan Report Date: July 19, 2017 1 st Quarter Status Building Project Update Complete Sponsorship Policy Complete Corporate Cost Allocation Policy In Progress Metro Vancouver Legal Entities Name Change Complete George Massey Tunnel Replacement Project Update Complete Property Taxation Complete National Zero Waste Council Complete Zero Waste Conference Complete Multi-Jurisdictional Infrastructure Project Updates as required In Progress Five Year Financial Planning Workshop Complete 2 nd Quarter Five Year Financial Planning Update Complete Regional Prosperity Initiative Update Pending Development Cost Charges Review In Progress Trans Mountain Pipeline Project Update Pending George Massey Tunnel Replacement Project Update Pending National Zero Waste Council Pending Multi-Jurisdictional Infrastructure Project Updates as required Pending 3 rd Quarter Building Project Update In Progress George Massey Tunnel Replacement Project Update Pending Zero Waste Conference In Progress Multi-Jurisdictional Infrastructure Project Updates as required Pending 4 th Quarter Regional District Service Area, General Government and Corporate Support Pending Annual Budget Review Overall Annual Budget and Five Year Financial Plan Update approval for Districts Pending George Massey Tunnel Replacement Project Update Pending Regional Prosperity Initiative Update Pending Board Voting Structure Pending Multi-Jurisdictional Infrastructure Project Updates as required Pending FIC - 89
FIC - 90 6.2