greater vancouver regional district performance …€¦ · pau - 1. performance and audit...

GREATER VANCOUVER REGIONAL DISTRICT PERFORMANCE AND AUDIT COMMITTEE

REGULAR MEETING

Friday, July 8, 2016

9:00 a.m. 2nd Floor Boardroom, 4330 Kingsway, Burnaby, British Columbia.

A G E N D A1 1. ADOPTION OF THE AGENDA

1.1 July 8, 2016 Regular Meeting Agenda That the Performance and Audit Committee adopt the agenda for its regular meeting scheduled for July 8, 2016 as circulated.

2. ADOPTION OF THE MINUTES

2.1 April 20, 2016 Regular Meeting Minutes

That the Performance and Audit Committee adopt the minutes of its regular meeting held April 20, 2016 as circulated.

3. DELEGATIONS 4. INVITED PRESENTATIONS 5. REPORTS FROM COMMITTEE OR STAFF 5.1 Presentation – Integrated Systems and Processes

Designated Speaker: Mary Carmichael and Linda Sabatini Presentation on key financial systems projects at Metro Vancouver, the linkages with other business applications, and the opportunities for continuous improvement these projects create.

5.2 Financial Performance Report as of May 2016 Designated Speaker: Dean Rear That the Performance and Audit Committee receive the report titled “Financial

Performance Report as of May 2016”, dated June 27, 2016 for information.

1 Note: Recommendation is shown under each item, where applicable.

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Performance and Audit Committee Regular Agenda July 8, 2016

Agenda of 2

5.3 Investment Position and Returns - January 1 to April 30, 2016 Designated Speaker: Dean Rear That the Performance and Audit Committee receive the report titled “Investment

Position and Returns – January 1 to April 30, 2016”, dated June 16, 2016 for information.

5.4 Status of Water, Liquid Waste and Solid Waste Capital Expenditures to April 30,

2016 Designated Speaker: Dean Rear That the Performance and Audit Committee receive the report titled “Status of Water,

Liquid Waste and Solid Waste Capital Expenditures to April 30, 2016”, dated May 30, 2016 for information.

5.5 Tender/Contract Award Information – March to May 2016 Designated Speaker: Tracey Husoy

That the Performance and Audit Committee receive the report titled “Tender/Contract Award Information – March to May 2016”, dated June 17, 2016 for information.

5.6 Manager’s Report Designated Speaker: Phil Trotzuk

That the Performance and Audit Committee receive the report titled “Manager’s Report”, dated June 21, 2016 for information.

6. INFORMATION ITEMS 7. OTHER BUSINESS 8. BUSINESS ARISING FROM DELEGATIONS

9. RESOLUTION TO CLOSE MEETING 10. ADJOURNMENT/CONCLUSION

That the Performance and Audit Committee adjourn/conclude its regular meeting of July 8, 2016.

Membership: Walton, Richard (C) – North Vancouver District Jordan, Colleen (VC) – Burnaby Baldwin, Wayne – White Rock Brodie, Malcolm – Richmond Coté, Jonathan – New Westminster

Fox, Charlie – Langley Township Gill, Tom – Surrey McEwen, John – Anmore Meggs, Geoff - Vancouver Mussatto, Darrell – North Vancouver City

Reid, Mae – Coquitlam Bell, Corisa – Maple Ridge Smith, Michael – West Vancouver

18208974

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Minutes of the Regular Meeting of the GVRD Performance and Audit Committee held on Wednesday, April 20, 2016 Page 1 of 7

GREATER VANCOUVER REGIONAL DISTRICT PERFORMANCE AND AUDIT COMMITTEE

Minutes of the Regular Meeting of the Greater Vancouver Regional District (GVRD) Performance and Audit Committee held at 9:00 a.m. on Wednesday, April 20, 2016 in the 2nd Floor Boardroom, 4330 Kingsway, Burnaby, British Columbia. MEMBERS PRESENT: Chair, Mayor Richard Walton, North Vancouver District Vice Chair, Councillor Colleen Jordan, Burnaby Mayor Wayne Baldwin, White Rock Councillor Corisa Bell, Maple Ridge Mayor Malcolm Brodie, Richmond (departed at 10:05 a.m.) Mayor Jonathan Coté, New Westminster Councillor Charlie Fox, Langley Township Councillor Tom Gill, Surrey Mayor John McEwen, Anmore Councillor Geoff Meggs, Vancouver Mayor Darrell Mussatto, North Vancouver City Councillor Mae Reid, Coquitlam Mayor Michael Smith, West Vancouver MEMBERS ABSENT: None. STAFF PRESENT: Phil Trotzuk, Chief Financial Officer Carol Mason, Commissioner/Chief Administrative Officer Deanna Manojlovic, Assistant to Regional Committees, Board and Information Services, Legal and

Legislative Services 1. ADOPTION OF THE AGENDA

1.1 April 20, 2016 Regular Meeting Agenda It was MOVED and SECONDED That the Performance and Audit Committee: a) amend the agenda for its regular meeting scheduled for April 20, 2016 by

varying the order of the agenda to consider Section 9 Resolution to Close after Section 1 Adoption of the Agenda; and

b) adopt the agenda as amended. CARRIED

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Text Box

2.1


Agenda Order Varied Pursuant to Section 1 Adoption of the Agenda, the order of the agenda was varied to consider Section 9 Resolution to Close Meeting at this point. 9. RESOLUTION TO CLOSE MEETING

It was MOVED and SECONDED That the Performance and Audit close its regular meeting scheduled for April 20, 2016 pursuant to the Community Charter provisions, Section 90 (1) (l) as follows: “90 (1) A part of a meeting may be closed to the public if the subject matter being

considered relates to or is one of more of the following: (l) discussions with regional district officers and employees respecting regional

district objectives, measures and progress reports for the purposes of preparing an annual report under section 98 [annual municipal report] of the Charter.”

CARRIED ADJOURNMENT The Regular Performance and Audit Committee meeting of April 20, 2016 adjourned at 9:01 a.m. to go into a closed meeting. RECONVENE The Regular Performance and Audit Committee meeting reconvened at 9:34 a.m. on Wednesday, April 20, 2016, with the same members in attendance. 2. ADOPTION OF THE MINUTES

2.1 February 5, 2016 Regular Meeting Minutes It was MOVED and SECONDED That the Performance and Audit Committee: a) correct the minutes of its regular meeting held February 5, 2016, on page 1

in "Attendance", by removing “Mayor Jonathan Coté, New Westminster” from the Members Absent section and by adding “Mayor Jonathan Coté, New Westminster” to the Members Present section; and

b) adopt the minutes as corrected. CARRIED

3. DELEGATIONS

No items presented. 4. INVITED PRESENTATIONS

No items presented.

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5. REPORTS FROM COMMITTEE OR STAFF 5.1 Draft Audited 2015 Financial Statements

Report dated April 4, 2016 from Phil Trotzuk, Chief Financial Officer, and Linda Sabatini, Division Manager, Finance Operations and Systems, Financial Services, presenting for approval the Audited 2015 Financial Statements for the Greater Vancouver Districts and the Metro Vancouver Housing Corporation. Members were provided with a presentation on 2015 Metro Vancouver finances and the 2015 year-end financial results highlighting: historical surplus results, financial position, equity in capital assets, and liquidity as of December 31, 2015. Presentation material titled "2015 Metro Vancouver Finances" is retained with the April 20, 2016 Performance and Audit Committee agenda. It was MOVED and SECONDED a) That the GVRD Board approve the Audited 2015 Consolidated Financial

Statements for the Greater Vancouver Regional District; b) That the GVS&DD Board approve the Audited 2015 Financial Statements for

the Greater Vancouver Sewerage and Drainage District; c) That the GVWD Board approve the Audited 2015 Financial Statements for the

Greater Vancouver Water District; d) That the MVHC Board approve the Audited 2015 Financial Statements for the

Metro Vancouver Housing Corporation. CARRIED

5.2 2015 Financial Results Year-End

Report dated March 31, 2016 from Phil Trotzuk, Chief Financial Officer, and Dean Rear, Director, Financial Planning and Operations, Financial Services, updating the GVRD Board on financial performance for the year ending December 31, 2015 as compared to the 2015 annual budget. It was MOVED and SECONDED That the GVRD Board receive the report dated March 31, 2016 titled “2015 Financial Results Year-End” for information.

CARRIED 5.3 Greater Vancouver Sewerage and Drainage District Development Cost Charge

Reserve Fund Expenditure Bylaw No. 300, 2016 Report dated March 9, 2016 from Dean Rear, Director, Financial Planning and

Operations, Financial Services, bringing forward to the GVS&DD Board for consideration, a bylaw to meet the statutory requirements to use Development Cost Charges for funding of the growth capital program.

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It was MOVED and SECONDED That the GVS&DD Board: a) give first, second and third reading to “Greater Vancouver Sewerage and

Drainage District Development Cost Charge Reserve Fund Expenditure Bylaw No. 300, 2016”.

b) pass and finally adopt “Greater Vancouver Sewerage and Drainage District Development Cost Charge Reserve Fund Expenditure Bylaw No. 300, 2016”.

CARRIED 5.4 Proposed Continuous Improvement Framework for Metro Vancouver Report dated April 8, 2016 from Dean Rear, Director, Financial Planning and

Operations, Financial Services, presenting the proposed Continuous Improvement Framework for Metro Vancouver and recommending topics for Continuous Improvement review.

10:05 a.m. Mayor Brodie departed the meeting. It was MOVED and SECONDED That the Performance and Audit Committee endorse the proposed ‘Continuous Improvement Framework’ and endorse the identified two topics for Continuous Improvement review for 2016 as contained in the report dated April 8, 2016 titled “Proposed Continuous Improvement Framework for Metro Vancouver”.

CARRIED 5.5 Provincial Guarantee of Credit Union Investments Report dated March 30, 2016 from Dean Rear, Director, Financial Planning and

Operations, Financial Services, responding to the Performance and Audit Committee’s February 5, 2016 request by providing information regarding the guarantee provided by the Province of British Columbia for credit union deposits. It was MOVED and SECONDED That the Performance and Audit Committee receive the report dated March 30, 2016 titled “Provincial Guarantee of Credit Union Investments” for information.

CARRIED 5.6 Semi-Annual Report on GVS&DD Development Cost Charges Report dated March 9, 2016 from Dean Rear, Director, Financial Planning and

Operations, Financial Services, reporting on the 2015 GVS&DD Development Cost Charge revenues and any implications on their adequacy, as required in the Board's policy.

It was MOVED and SECONDED That the Performance and Audit Committee receive the report dated March 9, 2016 titled “Semi-Annual Report on GVS&DD Development Cost Charges” for information.

CARRIED

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5.7 Status of Water, Liquid Waste and Solid Waste Capital Expenditures to December 31, 2015 Report dated March 22, 2106 from Dean Rear, Director, Financial Planning and Operations, Financial Services, reporting on the status of the Water, Liquid Waste and Solid Waste capital projects, and providing a comparison between the total project budgets and total projected expenditures to project completion. It was MOVED and SECONDED That the Performance and Audit Committee receive the report titled “Status of Water, Liquid Waste and Solid Waste Capital Expenditures to December 31, 2015”, dated March 22, 2016 for information.

CARRIED 5.8 Employee Benefit Cost Overview – 2011 - 2015 Report dated March 23, 2016 from Donna Brown, Senior Director and David Caird,

Division Manager, Employee Benefits and HR Metrics, Human Resources, responding to the Performance and Audit Committee’s February 5, 2016 request by providing information about the 5-year cost of employee health and insured benefits and associated consulting costs. In response to questions, members were informed about:

benefits consulting fees reported in the staff report represent costs directly associated with the benefit plans

reason for the decrease in benefits administration costs in 2013

average number of sick days for Metro Vancouver staff in 2015 Request of Staff Staff was requested to report back at the next Performance and Audit Committee meeting with information on the following:

Committee review process for award of contracts related to employee benefits

reporting of contract information on Administrative Services Only (ASO) as opposed to all employee benefit related costs

5-year trend for the following employee related items: sick days, vacation days, pension costs, and benefit costs

5-year cost trend for Directors’ fees and travel expenses; and nature of expenditures for communicating and sharing information with all the regional Councils

It was MOVED and SECONDED

That the Performance and Audit Committee receive for information the report titled “Employee Benefit Cost Overview – 2011-2015” dated March 23, 2016.

CARRIED

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5.9 Improvements Included in New Contracts for Waste Hauling from Metro Vancouver Facilities

Report dated March 17, 2016 from Tracey Husoy, Division Manager, Purchasing and Risk Management, Financial Services, responding to the Performance and Audit Committee’s February 5, 2016 request by providing information regarding improvements made to the latest contract for waste hauling from Metro Vancouver facilities. It was MOVED and SECONDED That the Performance and Audit Committee receive the report titled “Improvements Included in New Contracts for Waste Hauling from Metro Vancouver Facilities”, dated March 17, 2016, for information.

CARRIED 5.10 Tender/Contract Award Information – January to February, 2016 Report dated March 30, 2016 from Tracey Husoy, Division Manager, Purchasing

and Risk Management, Financial Services, informing the Committee about contracts, handled through the Purchasing Division, with a total anticipated value at or in excess of $500,000 (exclusive of tax). It was MOVED and SECONDED That the Performance and Audit Committee receive the report titled “Tender/Contract Award Information – January to February 2016”, dated March 30, 2016 for information.

CARRIED

5.11 Manager’s Report Report dated April 5, 2016 from Phil Trotzuk, Chief Financial Officer, providing an

update on the Committee work plan, Municipal Finance Authority spring debenture issue, and Liquid Waste Development Cost Charge review. It was MOVED and SECONDED That the Performance and Audit Committee receive the report titled “Manager’s Report”, dated April 5, 2016 for information.

CARRIED

6. INFORMATION ITEMS No items presented.

7. OTHER BUSINESS

7.1 Performance Indicator Data and Dashboard - Discussion

Members were provided with a presentation on a proposal for an online performance dashboard for Metro Vancouver highlighting: current use of performance indicators; examples of dashboards used by other organizations; and dashboard design options for the Committee members’ consideration.

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Members provided feedback to staff on considerations for the scope and design of an online performance dashboard. Presentation titled “Performance Indicator Data and Dashboard – Discussion: A New Tool for Measuring Success” is retained with the April 20, 2016 Performance and Audit Committee agenda. It was MOVED and SECONDED That the Performance and Audit Committee receive the verbal presentation titled “Performance Indicator Data and Dashboard – Discussion: A New Tool for Measuring Success” for information.

CARRIED 8. BUSINESS ARISING FROM DELEGATIONS

No items presented.

9. RESOLUTION TO CLOSE MEETING This item was previously considered.

10. ADJOURNMENT/CONCLUSION

It was MOVED and SECONDED That the Performance and Audit Committee conclude its regular meeting of April 20, 2016.

CARRIED (Time: 11:08 a.m.)

____________________________ ____________________________ Deanna Manojlovic, Richard Walton, Chair Assistant to Regional Committees 17896135 FINAL

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To: Performance and Audit Committee From: Dean Rear, Director, Financial Planning and Operations/Deputy Chief Financial

Officer Date: June 27, 2016 Meeting Date: July 8, 2016 Subject: Financial Performance Report as of May 2016 RECOMMENDATION That the Performance and Audit Committee receive the report titled “Financial Performance Report as of May 2016”, dated June 27, 2016 for information. PURPOSE To present the Committee with an update on financial performance to the end of May 2016 including a projection to the end of the fiscal year. BACKGROUND The Performance and Audit Committee Terms of Reference requires that the Committee be provided, three times per year, an update on the actual financial performance of the Metro Vancouver Districts and Metro Vancouver Housing Corporation with the report on the year-end results also sent to the Board. Year-to-date results as presented are based on the actual results for the first five months of the year with the main focus on the projections to year-end. This is the first of such reports for 2016. HIGHLIGHTS Overall, the Districts and Housing Corporation are projecting a surplus position of approximately $6.0 million for the 2016 fiscal year. The overall projected surplus is mainly due the deferral of some operating and capital projects, anticipated staff vacancies, savings in miscellaneous operating costs and slightly lower debt service costs in the utilities. More detailed information by district and/or function is included in Attachment 1.

The breakdown of the overall $6.0 million projected 2016 surplus, by district/function is as follows:

Regional District - $1.0 million

Water District - $1.3 million

Liquid Waste - $3.4 million

Solid Waste - nil

Housing - $0.3 million

The projected operating surplus in the Regional District can be mainly attributed to savings generated from Board and Committee meetings, underspending from staff vacancies as recruitment continues in the latter part of the year and savings in miscellaneous operating costs.

5.2

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The Water District’s projected surplus is largely the result of expenditure savings due to the delay and/or deferral of some operating projects along with projected underspending from some staff vacancies. The Liquid Waste projected surplus in 2016 is primarily due to deferral of some minor capital work and some savings in debt service costs funded by operations. In addition, some projected savings in miscellaneous operating costs plus underspending on labour due to some staff vacancies. In Solid Waste, higher than expected waste flows along with management of expenditures has led to projected results more favourable than anticipated when compared to the approved 2016 budget. Initially a draw from reserves of $2.2 million was budgeted for for revenue shortfalls, however, at this point only $700,000 is projected to be necessary. The Housing Corporation has a surplus net income position primarily due to higher than projected rental revenues combined with projected operating expenditure levels at slightly less than budget. In addition to the above surpluses, corporate programs are also projecting a surplus position for 2016 of approximately $500,000 primarily due to anticipated underspending from staff vacancies as recruitment continues. ALTERNATIVES This report is provided for information. No alternatives are presented. FINANCIAL IMPLICATIONS This report provides information on projected results for 2016 operations which, at this time, shows an overall year-end projected surplus of $6.0 million. This surplus would be available in future years to either avoid debt or pay for regional projects thereby reducing the funding requirements. Should circumstances change and this projected surplus vary, this would impact the ability to reduce future funding requirements. SUMMARY / CONCLUSION The 2016 projected financial results to year-end for all the Metro Vancouver entities and functions are either on or favourable to budget. Attachments and References: Attachment 1 - 2016 Financial Performance as of May 2016 18240927

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ATTACHMENT 1

Greater Vancouver Districts

2016 Financial Performance As of May 2016

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Table of Contents

Statement of Surplus/(Deficit) ............................................................ 1-4 District Summaries

• Regional District Summary .......................................................... 5-6

• Water District Summary ................................................................. 7

• Sewerage & Drainage District Summaries

Liquid Waste .......................................................................... 8

Solid Waste ........................................................................... 8

• Housing Corporation Summary ...................................................... 9

• Corporate Programs .................................................................. 9-10

Financial Indicators .......................................................................... 11-13

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Greater Vancouver Districts Statement of Surplus (Deficit) For the period ending May 31, 2016

Year to Date - May 31st

Budget Actuals Variance

DISTRICT / CORPORATION

Regional DistrictRevenue 6,651,181 7,419,521 768,340 Expenditure 27,309,186 24,364,094 2,945,092 Surplus (Deficit) (20,658,005) (16,944,573) 3,713,432

Water DistrictRevenue 87,823,886 87,496,524 (327,362) Expenditure 85,866,550 80,107,136 5,759,414 Surplus (Deficit) 1,957,336 7,389,387 5,432,051

Sewerage and Drainage District Liquid Waste

Revenue 3,216,583 2,720,530 (496,053) Expenditure 67,268,978 56,155,962 11,113,016 Surplus (Deficit) (64,052,395) (53,435,432) 10,616,963

Solid WasteRevenue 36,808,700 38,921,528 2,112,828 Expenditure 37,599,394 30,479,127 7,120,267 Surplus (Deficit) (790,694) 8,442,400 9,233,094

MV Housing CorporationRevenue 16,894,589 17,541,434 646,845 Expenditure 16,539,582 16,167,277 372,305 Surplus (Deficit) 355,007 1,374,157 1,019,150

Consolidated Surplus (Deficit) (83,188,751) (53,174,061) 30,014,690

* 2016 Budget includes reserve and surplus carry-forward applications as approved by the Board.

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Greater Vancouver Districts Statement of Surplus (Deficit) For the period ending May 31, 2016

2016 Year End ProjectionProjected

Annual* Year End Year End % VarianceBudget Forecast Variance to Budget

DISTRICT / CORPORATION

Regional DistrictRevenue 69,623,263 69,527,409 (95,854) (0.1%)Expenditure 69,623,263 68,568,915 1,054,348 1.5%Surplus (Deficit) - 958,494 958,494 -

Water DistrictRevenue 254,419,317 254,123,622 (295,695) (0.1%)Expenditure 254,419,317 252,834,747 1,584,570 0.6%Surplus (Deficit) - 1,288,875 1,288,875 -

Sewerage and Drainage District Liquid Waste

Revenue 216,126,662 216,186,223 59,561 0.0%Expenditure 216,126,662 212,824,384 3,302,278 1.5%Surplus (Deficit) - 3,361,839 3,361,839 -

Solid Waste Revenue 90,799,623 94,458,513 3,658,890 4.0%Expenditure 90,799,623 94,458,513 (3,658,890) (4.0%)Surplus (Deficit) - - - -

MV Housing CorporationRevenue 40,572,020 40,713,017 140,997 0.3%Expenditure 40,572,020 40,363,922 208,098 0.5%Surplus (Deficit) - 349,095 349,095 -

Consolidated Surplus (Deficit) - 5,958,303 5,958,303 -


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Greater Vancouver Districts Regional Function's Surplus (Deficit)

For the period ended May 31, 2016

Year to Date - May 31st

Budget Actuals Variance

FUNCTION

911 Emergency TelephoneRevenue - - - Expenditure 2,042,960 2,020,336 22,624 Surplus (Deficit) (2,042,960) (2,020,336) 22,624

Air Quality Revenue 856,094 553,796 (302,298) Expenditure 3,431,713 2,539,940 891,773 Surplus (Deficit) (2,575,619) (1,986,145) 589,474

General GovernmentRevenue 4,399,272 5,361,927 962,655 Expenditure 5,745,400 4,627,171 1,118,229 Surplus (Deficit) (1,346,128) 734,756 2,080,884

Labour Relations Revenue 154,455 157,027 2,572 Expenditure 1,028,016 823,740 204,276 Surplus (Deficit) (873,561) (666,714) 206,847

Regional GPSRevenue 12,500 7,572 (4,928) Expenditure 294,180 102,517 191,663 Surplus (Deficit) (281,680) (94,945) 186,735

Regional ParksRevenue 1,217,880 1,312,520 94,640 Expenditure 13,128,558 13,041,342 87,216 Surplus (Deficit) (11,910,678) (11,728,822) 181,856

Regional PlanningRevenue - 36,427 36,427 Expenditure 1,346,211 1,010,015 336,196 Surplus (Deficit) (1,346,211) (973,589) 372,622

Electoral Area Revenue 6,815 (18,913) (25,728) Expenditure 181,471 127,150 54,321 Surplus (Deficit) (174,656) (146,064) 28,592

Sasamat Volunteer Fire Dept.Revenue 4,165 9,167 5,002 Expenditure 110,677 71,881 38,796 Surplus (Deficit) (106,512) (62,714) 43,798

Regional Surplus (Deficit) (20,658,005) (16,944,573) 3,713,432


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Greater Vancouver Districts Regional Function's Surplus (Deficit)

For the period ended May 31, 2016

2016 Year End ProjectionProjected %

Annual* Year End Year End VarianceBudget Forecast Variance to Budget

FUNCTION

911 Emergency TelephoneRevenue 4,126,798 4,126,798 - 0.0%Expenditure 4,126,798 4,107,700 19,098 0.5%Surplus (Deficit) - 19,098 19,098 0.5%

Air Quality Revenue 9,188,196 9,206,129 17,933 0.2%Expenditure 9,188,196 9,053,196 135,000 1.5%Surplus (Deficit) - 152,933 152,933 1.7%

General Government Revenue 14,339,541 14,339,541 - 0.0%Expenditure 14,339,541 13,792,541 547,000 3.8%Surplus (Deficit) - 547,000 547,000 3.8%

Labour Relations Revenue 2,614,348 2,614,348 - 0.0%Expenditure 2,614,348 2,466,348 148,000 5.7%Surplus (Deficit) - 148,000 148,000 5.7%

Regional GPS Revenue 754,316 754,316 - 0.0%Expenditure 754,316 754,316 - 0.0%Surplus (Deficit) - - - 0.0%

Regional Parks Revenue 34,428,648 34,259,648 (169,000) (0.5%)Expenditure 34,428,648 34,259,648 169,000 0.5%Surplus (Deficit) - - - 0.0%

Regional Planning Revenue 3,312,924 3,348,674 35,750 1.1%Expenditure 3,312,924 3,296,674 16,250 0.5%Surplus (Deficit) - 52,000 52,000 1.6%

Electoral Area Revenue 551,346 570,809 19,463 3.5%Expenditure 551,346 531,346 20,000 3.6%Surplus (Deficit) - 39,463 39,463 7.2%

Sasamat Volunteer Fire Dept. Revenue 307,146 307,146 - 0.0%Expenditure 307,146 307,146 - 0.0%Surplus (Deficit) - - - 0.0%

Regional Surplus (Deficit) - 958,494 958,494 0


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Greater Vancouver Districts 2016 Financial Performance

District Summaries

Greater Vancouver Regional District The Regional District at the end of May 2016 is in a surplus position of approximately $3.7 million. This surplus is due to the timing of actual expenditures being slower than that anticipated in the budget primarily in General Government, Regional Planning, Air Quality, and Labour Relations functional areas. At this time, it is expected that the majority of the delayed expenditures will be incurred by year-end and the surplus will be reduced to close to $958,000 for the year, which would be primarily due to staff vacancies and reductions in Board and Committee meeting costs. 911 Emergency Telephone E911 is in a surplus position of $23,000 due to savings in E-Comm contract fees and timing of some expenditures. E911 is projecting a surplus of $19,000 by the end of the year as a result of contract fee savings. Air Quality At the end of May, Air Quality is in a surplus position of $590,000 primarily due to staff vacancies, a late start in some consulting studies and the receipt of a Home Energy grant. While staff vacancies expected to be filled by September, the function is projected to be in a surplus position of close to $153,000 by year end due primarily to savings generated from position vacancies during the year. General Government General Government is in a surplus position of approximately $2.1 million at the end of May, due to the timing of expenditures. The Homelessness Partnering Strategy (HPS) program is currently in a surplus position of $1.4M due to the timing of projects and related funding. The HPS program is fully funded by the federal government and is expected to be on budget at year end. While the majority of the initiatives are expected to be completed by year end, the function is projecting a surplus of close to $547,000 for 2016 due primarily to Board and Committee meeting cost savings. Labour Relations Labour Relations is in a surplus position of close to $207,000 at the end of May due to staff vacancies from staff on leave, savings on legal due to settlements without interest arbitrations and savings in consulting due to timing of deliverables. At year end, Labour Relations is projecting a surplus of $148,000 due to underspends from projected staff vacancies and no interest arbitrations. Regional Global Positioning System (GPS) At the end of May, the GPS function is under spent by approximately $187,000 due to the timing of expenditures. By year end, the function is forecasting expenditures and revenues to be near budget.

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Regional Parks Regional Parks is in a surplus position at the end of May of approximately $182,000 due primarily to staff vacancies, deferral of some project related expenditures until later in the year and deferral of some asset purchases, consulting and materials and supply expenditures to the summer and fall months.

At this time, as it is expected that most delayed expenditures will be incurred by year end, Regional Parks is expected to be on budget at the end of the year. This is due primarily to an expectation that most of the staff vacancies will be filled and that the other delayed expenditures will be spent. Regional Planning As of the end of May, Regional Planning is in a surplus position of approximately $373,000 primarily due to staff vacancies and a delay in consulting studies. As the delayed consulting expenditures are expected to be spent by yearend and the vacant positions are expected to be filled in the latter part of 2016, Regional Planning is projecting to finish the year with a $52,000 surplus. Electoral Areas Electoral Areas is currently in a surplus position of approximately $29,000 due to a delayed start in consulting projects and underspends on staffing offset by an unexpected refund of building permit fees. Electoral Areas is projecting a surplus position of approximately $40,000 at year end. Sasamat Volunteer Fire Department Sasamat Volunteer Fire Department is currently in a surplus position of approximately $44,000 as a result of timing of actual expenditures being slower than expected compared to budget. As the expenditures are expected to be incurred by year end, the function is projecting to be on budget.

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Greater Vancouver Water District The Water District is in a surplus position of approximately $5.4 million as at the end of May. The District, however, is projecting this surplus to reduce to approximately $1.3 million by year end. Water District revenues to the end of May are $327,000 less than budget. Water consumption was approximately 1% less than budget to the end of May. It is estimated that the revenue deficit will be reduced slightly to approximately $296,000 by year-end assuming close to budget water consumption levels for the remaining 7 months. Should the weather in the remaining part of this year vary from expectations, water consumption and therefore water sales could be impacted. Water District expenditures are currently $5.8 million below budget due primarily to the planned implementation of several operations and maintenance projects later in the year, operating staff vacancies along with the lower than anticipated demand for water year-to-date resulting in reduced operational expenditures for water treatment and distribution. It is expected that by year end that the final expenditure surplus will reduce to approximately $1.6 million. This surplus is expected to be largely the result of projected savings in engineering and maintenance project costs and underspends on staffing.

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Greater Vancouver Sewerage and Drainage District Liquid Waste Liquid Waste is anticipating a surplus of approximately $3.4 million primarily due to lower than expected operational and debt service costs. The projected surplus can be split as follows: Fraser Sewer Area $1.5 million, Lulu Island Sewer Area $0.5 million, Vancouver Sewer Area $0.9 million, North Shore Sewer Area $0.2 million and Drainage areas $0.3 million. Operational costs to the end of May are approximately $10.4 million under spent compared to budget due primarily to delays of some operational expenditures for minor capital, quality control, maintenance, wastewater treatment and residuals costs along with several staff vacancies currently being recruited. Operations costs are expected to be $0.7 million under budget due to deferred minor capital work costs for engineering and construction work due to complexities encountered in some project scope definitions and some staff vacancy and operational savings in the quality control and planning program areas. The balance of the projected expenditure surplus ($2.6 million) is due to debt service costs projected to be lower than budget due to less borrowing than planned. For revenues, miscellaneous external revenues are projected to be $0.1 million better than budget. Solid Waste For 2016, the Solid Waste function is experiencing higher than projected waste flows in the system. As a result, revenues are projected to finish the year at $5.2 million higher than anticipated, with related expenses tracking to finish the year at $3.6 million over budget. The approved 2016 budget anticipated $2.2 million to be drawn from reserves for revenues shortfalls. However the projected net impacts of approximately $1.6 million from the higher waste flows reduce that anticipated draw to $700,000. Though system waste flows appear to be strong, a number of remaining uncertainties such as the landfill closure liability levels, Vancouver Landfill operating costs and Wastech operating costs along with further changes in waste flows will likely impact the final 2016 position.

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Metro Vancouver Housing Corporation (MVHC) As at May 31, 2016, the MVHC is in a surplus position of approximately $1,000,000. This is typical at this point in the year, as the timing of many operating expenses is more heavily weighted in the latter part of the year. As the delayed expenditures are incurred, the surplus is expected to decline to approximately $349,000 by year-end. Any surplus from operations is allocated to reserves each year, providing an important and essential source of internal funding for the long-term capital plan. Revenues for the first five months are approximately $600,000 ahead of budget. This is due to higher than budgeted rent increases with some tenant rent subsidies received in advance and fewer vacancies. The impact of the rent increases will result in a year-end revenue surplus of approximately $408,000. However, the rent surplus will be offset slightly by reductions in subsidies resulting in overall revenues surplus projected to be more than budget by approximately $141,000. Expenditures through May are approximately $400,000 less than budget largely due to maintenance expenditures that are weighted more heavily in the latter part of the year and some labour surplus due to position vacancies. As the delayed expenditures are incurred, the overall actual expenditures are expected to be approximately $208,000 less than budget by year-end. The 2016 capital program included an annual budget of $11.7 million for capital replacement expenditures and development. As at May 31, 2016, approximately $2.0 million was spent for capital replacement; however, the program is expected to be on budget by year end. For the development program, MVHC is waiting for final development approvals, $110,000 of the $5,650,000 budget has been spent in the first five months of 2016. The yearend forecast is just under $1M as construction work is anticipated to begin later in the Fall (October.) The 2016 MVHC capital and development programs are funded from reserves so they have no impact on operations. Corporate Programs Overall, Corporate Programs are in a surplus position of approximately $2.8 million for the first five months of 2016. This surplus is largely due to the timing of actual expenditures being slower than that anticipated and staff vacancies from delays in recruiting and savings from the Employer Transit Commuter Program. As these delayed expenditures are expected to be incurred during the year, the overall projected surplus for Corporate Programs will be approximately $530,000 due primarily to savings generated under the Employee Trip Reduction Program and by some staff vacancies in Financial Services. Corporate Planning Corporate Planning is currently close to $50,000 under budget as a result of staff vacancies but is forecast to be on budget at year-end. External Relations External Relations is currently in a surplus position of approximately $210,000 primarily due to several temporarily vacant positions currently being recruited. The function is forecast is to be close to budget by year end.

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Human Resources The Human Resources department is currently under budget by approximately $232,000 due to several senior staff vacancies and delays in some recruitment initiatives. By year-end, Human Resources is projected to be close to budget. Financial Services The Financial Services department is in a surplus position of approximately $563,000 to date due primarily due to staff vacancies currently being recruited and the timing of some budgeted expenditures being slightly different from budget. The surplus for Financial Services is projected to be approximately $295,000 for 2016. Legal and Legislative Services Legal and Legislative Services is currently in a surplus position of approximately $145,000 to date due to the timing of external legal services being different than anticipated in the budget and some delayed expenditures regarding the Information Management program. As the expenditures are expected to be spent, the department is projecting a small surplus of close to $36,000 by year-end. Corporate Services Corporate Services is currently in a surplus position of approximately $1,600,000 through May 2016, and is forecasting a $200,000 surplus by year end primarily due to savings from the Employee Trip Reduction Program. Building Operations and Corporate Safety, Security and Emergency Management services are currently under budget by approximately $1,065,000 primarily due to some head office maintenance and renovation projects being deferred until later in the year and incurred by Metrotower III in preparation for the 2017 move. Contracted Security Services is currently under budget now due to the seasonal nature of expenses but with current under expenditure expected to be incurred during the summer. Building Operations is forecast to be close to budget by year end. Information Technology (IT) services are currently in a surplus position of $535,000. This is due to the purchase of new desktops and servers projected to occur later in the year and labour savings. IT is projected to be on budget for 2016. The Employee Trip Reduction Program became the Employer Transit Commuter Program with the introduction of Translink’s Compass Card and the elimination of FareSavers. As a result there has been a decrease in the number of users of the program. There is a projected yearend forecast of $200,000 surplus in the program due primarily to the fact that there is approximately $30,000 of quarterly revenue from parking while expenses for the first quarter have only been around $9,000.

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Greater Vancouver Districts

Financial Indicators

These ratios are intended to help indicate the Greater Vancouver District’s financial ability to continue to provide services to the region on a sustainable basis. This involves evaluating a number of factors, including the ongoing ability to ensure revenues meet expenditures, ability to meet debt obligations, and the flexibility to address unexpected contingencies. Forecast ratios can help to identify potential financial problems in advance. 1) Municipal Property Tax and Levies / Total Revenue This ratio is a measure of the diversification of revenues. A high ratio indicates a reliance on property tax related levies / fees. A low ratio illustrates a greater range of revenues which is seen as beneficial. However, other revenue streams may not be sustainable or fluctuate more than tax requisitions. 2013 Actual

2014 Actual 2015 Actual 2016 Budget 2016 Projected

Total Property tax/levies $226,403,503 35.1% $232,429,444 35.5% $239,867,949 36.0% $250,542,028 37.3% $250,542,028 37.1% Total Revenue** $644,494,910 $653,970,533 $666,212,758 $671,540,885 $675,008,784 The GVRD has a reasonably well diversified revenue base. Some revenue streams such as Water Sales and Solid Waste User Fees are subject to fluctuations during the year. 2) i) Debt Service Costs/ Total Revenue This is the percentage of revenue committed to payment of interest and principal on temporary and long-term debt for the regional, sewer, solid waste and water operations. A high percentage indicates greater use of revenues for the repayment of debt, and less ability to adjust to unplanned events and changing circumstances. 2013 Actual


Debt Service Costs $131,044,950 20.3% $122,877,075 18.8% $121,415,131 18.2% $130,342,604 19.4% $127,677,066 18.9% Total Revenue** $644,494,910 $653,970,533 $666,212,758 $671,540,885 $675,008,784 **2016 Budget includes budgeted reserve, surplus carry-forward items or other additional reserve applications as approved by the Board.

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3) ii) Interest Costs/ Total Revenue This is the percentage of revenue committed to payment of interest on temporary and long-term debt for the regional, sewer, solid waste and water operations. A high percentage indicates greater use of revenues for servicing interest on outstanding debt, and less ability to adjust to unplanned events and changing circumstances. 2013 Actual


Interest Costs $54,875,391 9.6% $49,744,618 7.6% $46,884,034 7.0% $53,651,849 8.0% $50,827,598 7.5% Total Revenue** $644,494,910 $653,970,533 $666,212,758 $671,540,885 $675,008,784 Both debt service costs and interest costs as a percentage of revenue are down compared to current budget (and also lower to prior years with the exception of 2015) indicating less of revenues are required to service outstanding debt (principal and interest) and more is available to fund priority projects. 3) Operating Reserves/ Total Revenues Reserve levels are an indicator of financial strength since they provide the ability to meet unforeseen expenditures or revenue losses. 2013 Actual


Operating Reserves $74,092,908 11.5% $77,547,061 11.9% $71,660,837 10.8% $47,906,912 7.1% $53,476,657 7.9% Total Revenue** $644,494,910 $653,970,533 $666,212,758 $671,540,885 $675,008,784 Projected operating reserve levels are slightly higher than that projected in the current budget but are down from the prior years’ reserve levels. The level of operating reserves remains adequate to meet potential unexpected contingencies. **2016 Budget includes budgeted reserve, surplus carry-forward items or other additional reserve applications as approved by the Board.

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4) Total Municipal Taxes, Water, Sewer and Solid Waste Charges / Per Capita This indicator is a representation of the per capita cost impact of the regions tax payer supported services. These costs are passed on to the tax payer through our member municipalities. The 2016 population is assumed to increase at a rate of 1.5% over 2015. 2013 Actual

Per

Capita 2014 Actual Per

Capita 2015 Actual

Per

Capita 2016 Budget Per

Capita 2016 Projected

Per

Capita Total Tax Revenue *** $548,156,267 $224 $559,403,266 $225 $571,024,515 $227 $582,381,980 $228 $587,357,281 $230 Total Population **** 2,449,022 2,485,132 2,513,869 2,551,577 2,551,577

The projected increase in the actuals over the budget for 2016 is primarily a result of an increase in projected revenues for Solid Waste User Fees. ** 2016 Budget includes budgeted reserve, surplus carry-forward items or other additional reserve applications as approved by the Board. *** Total Tax Revenue defined as Regional District tax requisition, Water Sales, Sewer & Drainage Levy and Solid Waste User Fees. **** Based on Demographic Analysis Section, BC Stats, Ministry of Technology, Innovation and Citizens’ Services, Government of British

Columbia, December 2015.

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To: Performance and Audit Committee From: Dean Rear, Director - Financial Planning and Operations Date: June 30, 2016 Meeting Date: July 8, 2016 Subject: Investment Position and Returns – January 1 to April 30, 2016 RECOMMENDATION That the Performance and Audit Committee receive the report titled “Investment Position and Returns – January 1 to April 30, 2016”, dated June 16, 2016 for information.

PURPOSE To report investment performance and related information for receipt by the Performance and Audit Committee.

BACKGROUND Metro Vancouver’s Corporate Investment Policy requires that an investment update report be presented to the Committee three times per year. This is the first report for 2016.

INVESTMENT CATEGORIES Our short term investments, those with terms of less than one year and the highest degree of liquidity, are used to meet our working cash requirements. Short term investments normally include Canada Treasury Bills, Provincial debt instruments, Bankers’ Acceptances and Credit Union Term Deposits. Regular cash demands as well as our conservative investment strategy require that we maintain a high degree of liquidity in our investment portfolios. Long term investments initially have terms greater than one year. These investments normally include Canada, Provincial, and Canadian Bank bonds as well as Credit Union Term Deposits greater than one year. These are generally less liquid than our short term investments and are held for a higher overall rate of return and for funding requirements of a longer term perspective. Cultural Reserve investments are long term investments whose revenues have been set aside to fund Metro Vancouver’s annual contributions to cultural activities.

5.3

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OVERALL INVESTMENT RETURNS Table 1

Benchmarks The selected benchmarks are provided as a reasonable general comparison and are intended to be indicative of and comparable to each of our portfolios on an ongoing basis. These benchmarks are consistent from period to period such that trending of results is possible. Our investment policy requires that we compare our actual performance indicated in the above table against specific benchmark returns.

The short term benchmarks are taken directly from the Bank of Canada and the Municipal Finance Authority (MFA). Rates from the Bank of Canada are expressed as annual rates which need to be “adjusted” for our four month reporting period. They are therefore divided by three for an estimate over our four month period. The performance figures on the MFA Money Market Fund are not required to be adjusted.

We use the MFA’s Intermediate Fund and Bond Fund as benchmarks for both the Long Term Portfolio and the Cultural Reserve Fund. These two benchmarks must be considered together as the combination thereof more accurately reflects the term of our Long Term Portfolio than either of the two funds individually. However, in the daily operation of their funds the MFA faces many liquidity demands that we do not. Allowing for these cash demands can affect portfolio yields considerably.

Short Term Investment Performance At April 30, 2016 our short term portfolio (terms of less than one year at the time of investment) held a total of $100.5 million dollars at historical cost (book value) and represented approximately 24.2% of our total investments. Looking at the “days to maturity” for all of our investments (combined short and long), those investments that will mature in the coming year account for approximately 42.5% of our total investments.

Our short term portfolio performance exceeded all of our benchmarks in the period.

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Table 2

A listing of our short term investments can be found on Schedule 1 of this report along with expected maturities which are also illustrated in the charts on Schedule 4.

The annualized estimate shown in Table 2 is calculated for comparison to benchmark. As shown on Schedule 1, the weighted average yield of the holdings in our Short Term Portfolio at April 30, 2016 was 1.65% compared to 1.59% reported as at December 31, 2015.

Long Term Investment Performance At April 30, 2016 our main Long Term Portfolio (terms greater than one year at the time of investment) held a total of $312.7 million at historical cost (book value) representing 75.2% of our total investments. This portfolio had a weighted average maturity of 2.8 years and a weighted average yield of 2.54% compared to 2.52% reported as at December 31, 2015. A detailed listing of long term investments held at April 30 is located on Schedule 2 following this report along with expected maturities which are also illustrated in the charts on Schedule 4.

The Cultural Reserve Fund held $2.4 million at historical cost (book value) in fixed income investments (<1% of total investments) and had a weighted average yield to maturity of 4.5 years and a weighted average yield of 2.66% as at April 30, 2016 compared to 2.65% as at December 31, 2015. A detailed listing of investments held in this portfolio is located on Schedule 3.

The performance of our long term portfolios in this reporting period exceeded the returns of both the MFA Intermediate and MFA Bond Fund. MFA’s monthly results showed significant fluctuations due to mark to market adjustments, reflecting the volatility in the capital markets during these four months.

Table 3 details performance during the period compared to our benchmarks.

Table 2 details performance during the period compared to our benchmarks.

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The current average term on the MFA Intermediate Fund is 1.1 years while the MFA Bond Fund average term is 2.8 years, comparable to the weighted average term for our Long Term portfolio. Like the MFA Intermediate Fund, our portfolio remains focused on corporate securities as they offer an attractive yield advantage over the government issued securities.

UPDATE ON BAIL-IN LEGISLATION The “Bail-in regime” was announced by the Federal government in 2013 in response to the financial crisis in 2008. The proposed legislation aims to limit taxpayer exposure in the event of a failure of systemically important (“too big to fail”) financial institutions by requiring long-term bank bonds with terms longer than 400 days to be converted to common shares if the bank is deemed non-viable. Common shares of this type are not qualified investments in the eyes of the Community Charter.

Since our initial briefing on this topic last July, we have reached out to the BC government in collaboration with other local municipalities to obtain a response to the pending legislation and its implications with respect to the Community Charter. The BC government has only so far commented that investments similar to “Bail-In” do not meet the Community Charter’s definition of qualified investments due to the risk associated with the mandatory conversion to common shares.

Our stance remains that there is no change in the inherent risk in bank deposit notes, “Bail-In” or not, since any and all investments with chartered banks have always been subject to the viability of the issuing bank. Hence, our Corporate Investment Policy stipulates a minimum rating requirement for banks in order to address the risk of viability and to ensure protection of capital. The Canadian banking system remains strong and the likelihood of a failure in the major chartered banks is low.

As the existing corporate issues are expected to be grandfathered, it is unlikely that $198 million or 48% of our portfolio that is potentially subject to “Bail-in” will be impacted. Although it remains unclear as to exactly how the “Bail-In” will be executed, we will continue to monitor the progress on the proposed regime and the impact on our investment strategy and portfolio.

Table 3

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This year started off with continued volatility due to concerns over global growth and financial markets, especially in China and the emerging markets, and decreasing commodity prices. The price of oil hit a 13-year low of $27 a barrel in February but changed its trajectory shortly thereafter and saw a gradual recovery, reaching $50 dollars a barrel in June. The rebound in commodity prices coupled with stronger than expected economic data in Canada resulted in upward pressure on the Canada bond yields. The average yield on 3-5 year Government of Canada bond yield increased from 0.63% in December 2015 to 0.80% in April 2016.

The US Federal Reserve kept the policy rates unchanged this year at 0.25%-0.50% due to various global and domestic factors, mainly the slow-down in the labor market and the results of “Brexit”, a referendum in the UK that voted in favor of leaving the European Union. With the uncertainty surrounding “Brexit”, the next rate hike by the Federal Reserve is likely pushed further out into the future.

Following the “Brexit” announcement, Canada’s 10-year government bond yield dropped by more than 10 bps and the price of oil fell by 5%. In the near-term, we can expect to see continued volatility in the financial markets with broad declines in commodities and bond yields. However, the direct risk to North American economy is expected to be limited given the UK accounts for 2.5% of Canadian trade and 3% of US trade.

The Bank of Canada has met four times this year and held the overnight target rate steady at 0.50%. Despite the upgraded growth forecast in part due to the aggressive stimulus spending in the Federal government’s budget and slightly better underlying domestic growth, the Bank of Canada is expected to hold its rates steady for the foreseeable future given the uncertainty of the impact of “Brexit” on the global financial markets.

Longer term instruments still offer a marginal advantage over short term yields and staff continue to look for opportunities to invest longer term when we have material cash to do so. We remain cautious given the decline and volatility in the yield curve. As illustrated in Table 4, the yield curve has flattened over the past two years with a notable drop since April 2014. Even out to 10 years, corporate bonds with AA-rating have yields less than 3% and yields well below 4% at the far end of the curve at 30 years. We continue to pursue the highest overall yield for our portfolio while maintaining safety of capital and liquidity as our key priorities.

GOING FORWARD

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FINANCIAL IMPLICATIONS Overall portfolio returns remain modest, a reflection of the priorities of preservation of capital and maintaining the necessary liquidity to meet operational requirements.

SUMMARY / CONCLUSION Overall, investment performance for the period, while modest, met expectations, exceeding the returns on all benchmarks. Our portfolios hold quality investments and are reasonably positioned given our market expectations.

Attachments: Schedule 1 – Short Term Investments Schedule 2 – Long Term Investments Schedule 3 – Cultural Reserve Investment Schedule 4 – Investment Maturity Charts

18240871

Table 4

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To: Performance and Audit Committee From: Dean Rear, Director, Financial Planning and Operations Date: May 30, 2016 Meeting Date: July 8, 2016 Subject: Status of Water, Liquid Waste and Solid Waste Capital Expenditures to

April 30, 2016 RECOMMENDATION That the Performance and Audit Committee receive the report titled “Status of Water, Liquid Waste and Solid Waste Capital Expenditures to April 30, 2016”, dated May 30, 2016 for information. PURPOSE To report on the status of the capital projects for Water, Liquid Waste and Solid Waste. These capital projects are typically multi-year in nature; therefore, this report provides a comparison between the total project budgets and total projected expenditures to project completion. BACKGROUND The Capital Expenditure reporting process as approved by the Board provides for regular status reports on capital expenditures with interim reports sent to the Utilities and Zero Waste Committees in June and October/November and a final year-end report to the Committees and Board in April. The Performance and Audit Committee is provided a summary report for all utility capital on this schedule. This is the first in a series of three reports on capital expenditures for 2016. In addition to this report, due to its size and complexity, a separate detailed update on the Lions Gate Secondary WWTP Upgrade Project is provided to the Utilities Committee and Board quarterly. The capital projects are separated into two types: “Ongoing” and “Completed”. Narrative information is provided describing key aspects of specific projects and each project is presented in the context of Total Projected Project Costs to Completion as compared to the Total Approved Budget. The approved budget represents the maximum expenditure authority extended by the Board. If it is projected that the total expected project expenditures will exceed the approved authority, additional approval will be sought from the Board. Appendix A contains summary financial information on “Ongoing Projects” and “Completed Projects”. The information presented is for Total Projected Completion which will generally cover multiple years. Capital project budgets typically include a minimum contingency of 10%. Individual project financial information included as follows: Schedule 1 – Water, Schedule 2 – Sewerage and Drainage (Liquid Waste) and Schedule 3 – Sewerage and Drainage (Solid Waste). Appendix B provides narrative information for specific projects.

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ALTERNATIVES This report is provided for information. No alternatives are presented. FINANCIAL IMPLICATIONS Net capital expenditures, after applying available pay-as-you-go financing, are funded through long-term debt from the Municipal Finance Authority. This results in debt service costs, for the term of the debt, which must be funded annually through the water rate, sewer levy or tipping fee as appropriate. If capital expenditures are lower than budget for the year, the result is less required borrowing leading to a budget surplus due to savings in debt service costs. The surplus, by policy, will be applied to fund future capital expenditures thereby reducing the need to borrow. Any favourable variances to budget for approved capital projects is not redirected to other projects but is essentially dollars not spent. Each project proceeds on the individual projects’ approved budgets. Ongoing Capital Projects: The Water District is projecting to spend $38.8 million (2.3 %) less than the approved total project budgets for those projects in progress and included in Schedule 1. The Sewerage and Drainage District (Liquid Waste Services) is projecting to spend $31.2 million (2.8 %) less than the approved total project budgets for those projects in progress and included in Schedule 2. The Sewerage and Drainage District (Solid Waste Services) is projecting to spend the same budgeted amount as the approved total project budgets for those projects currently in progress and included in Schedule 3. Completed Capital Projects: These are projects that have been completed during 2016, some of which may have extend over multiple years. Overall, the Water District, Sewerage and Drainage District (Liquid Waste) and Sewerage and Drainage District (Solid Waste) projects in this category are under spent by $0.1 million (0.8 %), $5.6 million (21.8 %) and $3.2 million (33.7 %), respectively. SUMMARY / CONCLUSION This is the first in a series of three capital expenditure progress reports for 2016. The Board will see this information through individual reports through the Utilities and Zero Waste Committees. Both the Water District and Sewerage and Drainage District (Liquid and Solid Waste) were under or essentially on budget for those projects completed as at April 30, 2016 and are projecting the same for ongoing projects when they complete. Economic Impact While a significant investment in infrastructure for the GVWD (Water Services) and GVS&DD (Liquid Waste and Solid Waste Services), the projects identified in Schedules 1 and 2 represent approximately 5,580 person years of employment and, over their life (development and construction) and make up approximately $507 million of the Gross Domestic Product of the region. Attachments and References: Appendix A: Capital Expenditure Summary Information as at April 30, 2016 Appendix B: Capital Project Status Information as at April 30, 2016 Schedule 1: Water District Capital Expenditures Schedule 2: Sewerage & Drainage District (Liquid Waste) Capital Expenditures Schedule 3: Sewerage & Drainage District (Solid Waste) Capital Expenditures 18236301

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APPENDIX A

Capital Expenditure Summary Information

As at April 30, 2016

Ongoing Projects

Total Projected Expenditures to

Completion ACE/ Total Budget

Projected Favourable

Variance

Water $1,653,166,822 $1,691,977,822 $38,811,000

Liquid Waste 1,080,611,262 1,111,830,377 31,219,115

Solid Waste 35,900,000 35,900,000 0

Total Ongoing Projects: $2,769,678,084 $2,839,708,199 $70,030,115

Completed Projects Total Actual Expenditures ACE/ Total Budget

Favourable Variance

Water $8,280,969 $8,350,000 $69,031

Liquid Waste 19,922,713 25,490,000 5,567,287

Solid Waste 6,228,093 9,400,000 3,171,907

Total Completed Projects: $34,431,775 $43,240,000 $8,808,225

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Capital Project Status Information April 30, 2016

1. GREATER VANCOUVER WATER DISTRICT (Water Services)

Major GVWD capital projects are generally proceeding on schedule and within budget. The following capital program items and exceptions are highlighted: i) Drinking Water Treatment Program • All of the major construction contracts for the Seymour-Capilano Filtration Plant and

Coquitlam Water Treatment Plant are complete. The respective facilities are commissioned and in service.

ii) Infrastructure Growth Program • Coquitlam Intake No. 2 – A new intake, transmission tunnel and treatment facilities are

proposed at the Coquitlam Reservoir to increase the supply capacity from this source. The Project Definition Phase is underway. The Request for Qualifications (RFQ) to shortlist consultants for the project definition work is being evaluated. The Request for Proposals for project definition is being prepared.

• Barnston/Maple Ridge Pump Station – This project comprises design and construction of a

new pump station to provide water to Maple Ridge via Haney Main No. 2 and Maple Ridge Main West, and to Langley via the Barnston Island Main. Construction of the Barnston/Maple Ridge Pump Station is in its final stages of testing and commissioning. All tie-in connections are complete. The pump station is expected to be fully operational by early June 2016.

• Annacis Water Supply Tunnel – A 2.3 km long water supply tunnel is required under the

Fraser River to meet growing demand in municipalities south of the Fraser and provide increased system resiliency. Preliminary design was awarded to Hatch Mott MacDonald and work began in early January 2016. Property acquisition for the shaft sites in New Westminster and Surrey continues. The geotechnical drilling program is underway.

• Port Mann Main No. 2 (North) – This 2.5km long 1.5m diameter steel water main will twin the

existing Port Mann Main to meet growing water demand south of the Fraser River. Construction of the new main between the Cape Horn Pump Station and Reservoir near Mariner Way and the new Port Mann Water Supply Tunnel commenced in October 2015 and is well underway.

• South Delta Main No. 1 Replacement – This project comprises replacement of an existing

water main with a new main on 52nd Street from 12th Avenue to 28th Avenue (Phases 1 and 2), and on 53rd Street from 28th Avenue to 34B Avenue (Phase 3). Phase 1 construction is well underway and all works are scheduled to be completed by September 2016. The Phase 2 construction contract has been issued for tender.

APPENDIX B

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iii) Infrastructure Maintenance Program • E2 Shaft Replacement – The E2 Shaft, which has controlled ground water pressures in the

East Abutment of Cleveland Dam since the 1950’s is nearing the end of its service life and needs to be replaced by a system of horizontal drains. Drilling of the first horizontal drain to replace the E2 drainage shaft is now complete. Due to difficult ground conditions, the first drain has taken significantly longer to complete than anticipated. Testing of the effectiveness of this drain is now complete. Further production well drilling is scheduled to commence, in summer 2016.

iv) Infrastructure Risk Management Program • Port Mann Water Supply Tunnel – The 1 km long, 3.5 m diameter water supply tunnel under

the Fraser River between Coquitlam and Surrey is required to replace the aged and vulnerable Port Mann Main No. 1 marine crossing. Construction of the Port Mann Water Supply Tunnel is approximately 90% complete. The contractor has installed the steel water main in the tunnel and shafts. Only the large diameter pipe elbows at the top of each shaft still need to be installed. Work continues in both the north and south valve chambers. Overall project completion, including connections to the existing system, is scheduled for late 2016.

• Mackay and Grouse Creeks Debris Flow Mitigation – Preliminary design of the Mackay Creek

and Grouse Creek debris flow mitigation works is now complete. An RFP for detailed design was issued in early 2016 and closed in March. The proposals are under review.

• Capilano Main No. 9 – This project comprises construction of approximately 1.9 km of 2.1 m

diameter steel pipe water main with associated appurtenances on Capilano Road in the District of North Vancouver. Construction of Phase 1 within Capilano River Regional Park is complete. Phase 2 water main installation along Capilano Road between the Capilano River Regional Park upper parking lot and Edgemont Boulevard commenced in August 2015 and is substantially complete. The water main is expected to be in service by mid-May 2016. Construction of the crossover chamber on Edgemont Boulevard has been rescheduled to commence in November 2016, following peak summer water demand.

• Second Narrows Water Supply Tunnel – A 1 km long, 6 m diameter water supply tunnel is

required under Burrard Inlet, between North Vancouver and Burnaby, to replace existing aged and seismically vulnerable crossings and provide additional long term supply capacity. Detailed design of the Second Narrows Water Supply Tunnel was awarded in July and analytical work is now underway.

• Clayton Reservoir – The project includes a new 22.5 ML water reservoir located at 72nd

Avenue and 190th Street in Surrey that will increase the storage capacity and replace the existing Clayton Tank. Detailed design of the new Clayton Reservoir is now 90% complete.

• Coquitlam Bulk Sodium Hypochlorite Conversion – This project comprises of the conversion of

the existing gaseous chlorine storage, feed, and injection systems with a new liquid sodium hypochlorite storage and feed system. The contractor has mobilized to site.

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• Marine Crossings – Phase 1 Conceptual Design - In the fall of 2015 an assignment was

awarded for phase 1 conceptual design for two new marine water supply crossings; Cambie-Richmond crossing of the Fraser River between Vancouver and Richmond and Haney-Pitt, crossing of the Pitt River between Port Coquitlam and Pitt Meadows. Data collection is well underway.

v) Infrastructure Upgrade Program • Lynn Valley Reservoir – This project includes a 1.0 ML water reservoir, chamber, piping and

associated work, located at the northwest corner of the Seymour-Capilano Filtration Plant site in North Vancouver. Construction of the new Lynn Valley Reservoir commenced in June 2015 and is scheduled for completion by the end of June 2016.

2. GREATER VANCOUVER SEWERAGE & DRAINAGE DISTRICT (Liquid Waste Services)

Major GVS&DD liquid waste capital projects are generally proceeding on schedule and within budget. The following capital program items and exceptions are highlighted: i) Infrastructure Growth Program • FSA – Northwest Langley WWTP Phase l Upgrade – The project expands treatment capacity

with three new clarifiers, activated sludge tank, pumping station, 23kV substation and process control building. Major construction works are now completed. Computerized Data Acquisition and Control (CDAC) program was downloaded, tested and integrated into MV’s CDAC network. A 5 day performance test and final tie-ins to the existing plant were successfully completed. The commissioning phase is underway to be followed by final acceptance. The new facility is expected to commence full service in June, 2016.

• FSA – North Surrey Interceptor – Port Mann Section Twinning – Work on this project has been

put on hold pending the completion of the East Fraser Sewer Servicing Study. The study is now complete and it recommends proceeding with the Phase II upgrade of NWLWWTP. A review is underway to determine the extent of the North Surrey Interceptor twinning required.

• FSA – Burnaby Lake North Interceptor – Construction is complete on the Sperling Section.

Final road reconstruction and paving will be completed in May 2016. Preliminary design of Phase 2 and 3 and stakeholder engagement are underway. Alignment alternatives within Burnaby Lake Park and tunneling options under Winston Street are being investigated. Preliminary design, including the pipe alignment, is expected to be completed by late 2016.

• FSA – North Surrey Interceptor, 104th Avenue Section – Pipe installation has been completed

along the South Fraser Perimeter Road. The right of way required for the final tie-ins has been acquired from the Ministry of Transportation and Infrastructure. Project team is securing necessary permits from regulatory agencies. 3 construction firms have been pre-qualified to compete for a contract. Drawings and specifications are being finalized. Construction tender is expected to be released by in the summer of 2016.

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• FSA – Annacis Island WWTP Outfall – This project involves identifying solutions for the

transient/surge scenarios that may occur on the wastewater collection and treatment plant influent system in the event of a power outage, and assessing options to increase capacity of the outfall for growth. Recommendations for the transient/surge issue, and the outfall alignment were received in April. The recommendation includes a single gravity outfall along the western alignment, with the possible need for a pump station in the future. The timing of the pump station is yet to be determined, subject to completion of the Stage 1 Environmental Impact Study and Ministry of the Environment review, expected late summer 2016.

ii) Infrastructure Maintenance Program • LSA – Gilbert Trunk Sewer Twinning - Construction of Phase 1 of the project is

substantially complete. Outstanding work involves reconstruction of the City utilities and City sewer connections. Decommissioning of the dyke portion of the old sewer is scheduled for May-June 2016 to take advantage of dry weather. A contract for engineering design services for the remaining 4 phases of the project has been awarded. Preliminary design work is under way. Overall completion of the project is scheduled for 2019.

• VSA – Iona Island WWTP Solids Handling Upgrade – This project involves improving the

existing grit removal and sludge screening systems, increasing sludge thickening capacity, and improving the digester mixing systems. Construction of the screening, de-gritting and thickening upgrades started in October 2015 and is expected to be complete in 2017. Piled foundation is expected to be complete by mid-May. Construction of the building structure is well underway. The digester mixing contract started in November 2015, and is expected to be complete in 2019. All four mixing pump buildings are constructed. Digester #4 gas proofing is complete and the digester is back in service. Due to operational constraints, the contractor will de-mobilize by May, and return in October to undertake work on Digester #1 mixing system upgrades.

• FSA – Annacis Island WWTP Secondary Clarifier Corrosion Repair – This project involves

replacing 12 existing secondary clarifier mechanisms that have been damaged by corrosion. One mechanism was replaced in 2014 and replacement of a second was completed in 2015. A request for qualification to shortlist qualified contractors has been issued. A tender will be released by end of May for five additional units to be replaced in 2016-2017. The remainder of the units will be replaced in 2019-2020. Due to ground settlement that is affecting the operation of the mechanisms, re-leveling and grouting of the clarifier floor, and the addition of flow balancing gates have been added to the scope.

iii) Infrastructure Risk Management Program • FSA – Annacis Island WWTP Cogeneration System – This project replaces the existing

cogeneration engines with larger units in order to utilize excess digester gas currently being flared, and to generate electricity and heat to reduce BC Hydro import. The cogeneration engines are being supplemented by diesel generators to provide a reliable stand-by power system during BC Hydro outage events. Preliminary design has been completed and detail design is 50% complete. Award of the pre-purchased cogeneration engines and standby diesel gensets approved by the Board in 2015 will be delivered in 2017. Constructability and tendering strategies are presently being developed. Project completion is expected in 2018.

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iv) Infrastructure Upgrade Program

• FSA – Sapperton Pump Station – The detailed design is complete. Request for Qualificationsfor construction contractors was issued in April and closed in May. Request for proposal forconstruction is scheduled for June. Development Permit process continues with the City ofNew Westminster.

• FSA – Langley Connector and Carvolth Trunk Sewer Replacement – Construction is 85%complete. Work on the remaining section of the sewer will proceed once Township ofLangley commissions its new forcemain. This work is scheduled for this summer. The projectis expected to be completed in 2016.

v) Annacis Stage 5 Expansion Program

• FSA – Annacis Island WWTP Stage 5 Phase 1 – This work involves expansion of treatmentprocess units including primary sedimentation tanks, secondary clarifiers, solid contact tanksand odor control. Detailed design commenced in early 2014 and is now complete. TheRequest for Proposals for Phase 1 construction is scheduled to be issued in June. The $47million ground improvement contract awarded in December 2015 is approximately 80%complete. The $5 million solids contact blower contract awarded in November 2014 iscompleted. The contract for the systems controls and laboratory building awarded in March2015 is 50% complete.

3. GREATER VANCOUVER WATER DISTRICT SEWERAGE & DRAINAGE DISTRICT (Solid WasteServices)

Major GVS&DD solid waste capital projects are generally proceeding on schedule and withinbudget. The following capital program exceptions are highlighted:

i) Landfills Program

• The Coquitlam Landfill (CLF) Gas Phase Upgrade (second stage) is planned for the winter2016/2017. The Phase 2 upgrade will be completed with the proposed development of theCoquitlam Transfer Station.

• The CLF Landfill Gas Utilization project has been terminated as a result of limited gasproduction and will be reassessed as part of the transfer station development project.

ii) Waste to Energy Program

• The Bottom Ash Processing project went forward to the Zero Waste Committee in February2016 at which point direction was provided for a third party review of costing and businesscase be brought back to the ZWC. It is anticipated that this report will occur in September2016.

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• The procurement process for the New WTE Capacity Project has been discontinued. Staff willreport back with recommendations on the development of a New WTE in late 2016/early2017.

iii) New WTE Capacity Project (Material & Energy Recovery Facility)

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SCHEDULE 1

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SCHEDULE 1

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SCHEDULE 2

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SCHEDULE 2

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SCHEDULE 3

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SCHEDULE 3

To: Performance and Audit Committee From: Tracey S. Husoy, Division Manager, Purchasing and Risk Management, Financial

Services Department Date: June 17, 2016 Meeting Date: July 8, 2016 Subject: Tender/Contract Award Information – March to May 2016 RECOMMENDATION That the Performance and Audit Committee receive the report titled “Tender/Contract Award Information – March to May 2016”, dated June 17, 2016 for information. PURPOSE To provide the Performance and Audit Committee information with regards to contracts, handled through the Purchasing Division, with a total anticipated value at or in excess of $500,000 (exclusive of tax). BACKGROUND The Purchasing Division of Metro Vancouver awards contracts for goods, services and construction in accordance with the Officers and Delegation Bylaws 1208, 284 and 247, and the Procurement and Real Property Contracting Authority Policy adopted by Board of Directors on July 11, 2014, effective September 1, 2014. These Bylaws and Policy outline thresholds for competitive bidding and contracting authorities. Contracts in excess of $500,000 will be reported to the Performance and Audit Committee to align with the thresholds outlined in the Policy. Capital projects may result in the awarding of one or more contracts to complete the project. All contracts are always within budget authority. NEW CONTRACTS - $500,000 to $5,000,000 The following contracts were awarded during the months of March to May 2016: (Details attached as APPENDIX A)

1. Stantec Consulting Ltd. $1,500,000 GVS&DD Structural Consulting Engineering Services for Liquid Waste Services

2. Talon Helicopters $1,095,998 GVWD Helicopter Services

5.5

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3. AECOM $4,500,000 GVS&DD Engineering Consulting Services for Five (5) Wastewater Treatment Plants

4. Dragon Ventures Ltd $521,405 MVHC Fire Protection Systems Inspection and Equipment Maintenance

5. Stantec and Tetra Tech EBA Inc. $4,400,000 GVS&DD Consulting Services for Liquid Waste Services Projects

6. Dependable Emergency Vehicles $524,000 GVRD

Supply and Delivery of One (1) New or Demo Triple Combination Pumper Truck

7. Metro Motors Ltd. $809,400 GVRD Supply and Delivery of Four (4) New 16 Foot Step Vans

8. ABB Inc. $934,263 GVS&DD

Supply and Delivery of 5kV and 15kV Switchgear – Iona Island Wastewater Treatment Plant

9. Industra Construction Corp. $510,078 GVS&DD Structural Repair of Four Primary Sedimentation Tanks at Annacis Island Wastewater

Treatment Plant

10. Opus DaytonKnight $1,392,321 GVS&DD Consulting Engineering Services for the Queensborough Pump Station Project

The following Standing Offer Agreements were accepted during the months of March to May 2016: (Details attached as APPENDIX B)

1. See attached list $1,000,000 GVWD Supply and Delivery of Sand and Gravel

The following not previously reported contracts were amended during the months of June to August 2016: (Details attached as APPENDIX C)

Value of Amendment(s)

Total Amended Value of Contract

1. AMEC Foster Wheeler $310,037 $619,211 Covers additional design services, inspection hours and contract administration to cover the

extended construction period for Phase I and the addition of Phase 2

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The following previously reported contracts were amended during the months of March to May 2016: (Details attached as APPENDIX D)

Value of Amendment(s)

Total Amended Value of Contract

1. Pedre Contractors $3,304,525 $16,801,920 Covers removal of chloride contaminated soils, revisions to paving requirements, and

miscellaneous design adjustments

ALTERNATIVES This is an information report. No alternatives are presented.

FINANCIAL IMPLICATIONS The contracts presented herein are consistent within Budget Authority. SUMMARY / CONCLUSION The contracts presented herein were awarded in accordance with the Officers and Delegation Bylaws and the Procurement and Real Property Contracting Authority Policy and comply with competitive bidding laws and applicable legislation. Further, the competitive selection packages were carefully crafted by teams of subject matter experts resulting in the award of contracts that are fiscally responsible, and balance risk, economic, ethical and legal obligations. Attachments and References: APPENDIX A: Information with regard to newly awarded contracts APPENDIX B: Information with regard to Standing Offer Agreements

APPENDIX C: Contracts amended to a value of more than $500,000 but not previously reported to

the Performance and Audit Committee APPENDIX D: Previously reported contracts that have been amended APPENDIX E: Competitive Selection Packages Anticipated to be greater than $500,000

(Issued but not awarded) 17669383

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Appendix A Page No. 1

AWARD OF CONTRACT

RFP NO. 15-212

1. A contract was awarded March 10, 2016 for the GVS&DD. To: Stantec Consulting Ltd.

in the anticipated amount not more than $1,500,000 (exclusive of tax) for structural consulting engineering services for Liquid Waste Services over a three (3) year period. The RFP identified the most qualified and competitive contractor for on-demand engineering services that fall within the defined scope for the specified term. Each project will be negotiated and awarded independently. The contract price is within the overall budget.

2. Proponents were invited by MV & BC Bid web sites and private invitation on November 19, 2015. Closing Date: December 17, 2015 3. Proposals received (exclusive of tax):

Estimated Cost Over One Year

Aedon Consulting $419,875 Stantec Consulting Ltd. $423,650 Sacre-Davey Engineering $428,550 CWA Engineers $449,300 GEA Gygax Engineering Associates $455,625 Associated Engineering with Ausenco $512,875

4. Proposals reviewed by: Contractual: Purchasing Division Staff

Technical: Liquid Waste Services Department Staff 5. Award was made to the highest ranked proponent based on the evaluation criteria established

in the RFP.

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Appendix A Page No. 1 cont.

6. Stantec showed excellent understanding of the RFP document and responded with a very well organized proposal and an adequate methodology for delivering the scope of services requested. The proposal demonstrated extensive structural engineering project experience and a strong multidisciplinary team with primary and secondary teams identified for handling increased workloads, satisfactory safety practices and sufficient experience with liquid waste projects including relevant MV project work.

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AWARD OF CONTRACT

RFP NO. 15-181

1. A contract was awarded January 28, 2016 for the GVWD. To: Talon Helicopters Ltd. in the estimated amount of $1,095,998 (exclusive of tax) for helicopter services over a five (5)

year period. The contract price is within the overall budget. 2. Proponents were invited by MV & BC Bid web sites and private invitation on October 20, 2015. Closing Date: November 10, 2015 3. Proposals received (exclusive of tax):

Talon Helicopters Ltd. $1,095,998 Sierra Helicopters $1,394,666


Technical: Water Services Department Staff 5. Award was made to the highest ranked proponent based on the evaluation criteria established

in the RFP, whom coincidentally provided the lowest cost.

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AWARD OF CONTRACT

RFP NO. 16-013

1. A contract was awarded March 16, 2016 for the GVS&DD. To: AECOM in the estimated amount of not more than $4,500,000 (exclusive of tax) for engineering

consulting services for five (5) Wastewater Treatment Plants over a four (4) year period. The RFP identified the most qualified and competitive contractor for on-demand engineering

services that fall within the defined scope for the specified term. Each project will be negotiated and awarded independently.

The contract price is within the overall budget. 2. Proponents were invited by MV & BC Bid web sites and private invitation on October 20, 2015. Closing Date: November 10, 2015 3. Proposals received (exclusive of tax):

Estimated Cost Based on 3800 Hours for Comparison Purposes Only

Stantec $504,680 Kerr Wood Leidal Assoc. $507,750 AECOM $529,500 Associated Engineering/CH2M Hill $558,500 Black & Veatch Canada $566,195



in the RFP.

6. AECOM’s proposal demonstrated the best overall understanding of the project requirements. The technical portion of the proposal was detailed and presented in a logical manner, and the firm has successfully undertaken similar work for MV.

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AWARD OF CONTRACT

RFP NO. 15-210

1. A contract was awarded February 25, 2016 for the MVHC. To: Dragon Ventures Ltd. in the estimated amount up to $521,405 (exclusive of tax) for fire protection systems inspection

and equipment maintenance over a five (5) year period. The contract price is within the overall budget. 2. Proponents were invited by MV & BC Bid web sites and private invitation on November 26, 2015. Closing Date: December 17, 2015 3. Proposals received (exclusive of tax):

Hourly Rate for “as and when required” Services

Dragon Ventures Ltd. $70 A.W. Fireguard Supplies $70 Community Fire Prevention Ltd. $82 Fire-Pro Fire Protection Ltd $95 Viking Fire Protection Inc. $98


Technical: Housing Department Staff 5. Award was made to the highest ranked proponent based on the evaluation criteria established


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AWARD OF CONTRACT

RFP NO. 15-159

1. RFP No. 15-159 was issued for consulting services for Liquid Waste Services projects for the

GVS&DD. Two contracts were awarded to two (2) Proponents for Package A. The contract for Package B will not be awarded. To: Stantec and Tetra Tech EBA Inc.

for Preliminary Design, Detailed Design and Constructions Services for the North Road Trunk Sewer – Phase 1 and 2 in the anticipated amount not to exceed $4,400,000 (exclusive of tax) assuming all projects are awarded over a four (4) year term.

The RFP identified the most qualified and competitive contractor for on-demand engineering services that fall within the defined scope for the specified term. Each project will be negotiated and awarded independently.

The contract price is within the overall budget. 2. Proponents were invited by MV & BC Bid web sites and private invitation on October 29, 2015. Closing Date: December 1, 2015 3. Proposals received (exclusive of tax):

Estimated Cost Using Set Hours of Work Over One Year for Package A

Stantec $894,919 Tetra Tech EBA $987,308 Golder Associates $2,362,252 McElhanney $1,275,544


Technical: Liquid Waste Services Department Staff 5. Awards were made to the highest ranked proponents based on the evaluation criteria

established in the RFP, whom coincidentally provided the lowest costs.

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AWARD OF CONTRACT

RFP NO. 16-044

1. A contract was awarded April 22, 2016 for the GVRD. To: Dependable Emergency Vehicles

in the amount of $524,000 (exclusive of tax) for supply and delivery of one (1) new or demo triple

combination pumper truck The contract price is within the overall budget. 2. Proponents were invited by MV & BC Bid web sites and private invitation on February 5, 2016. Closing Date: March 3, 2016 3. Proposals received (exclusive of tax):

Dependable Emergency Vehicles $524,000 WFR $542,552 Rocky Mountain Phoenix – Bid #3 $556,234 Rocky Mountain Phoenix – Bid #1 $628,522 Rocky Mountain Phoenix – Bid #2 $643,277 Profire Emergency Equipment $678,500


Technical: Fleet Services Department Staff 6. Award was made to the highest ranked proponent based on the evaluation criteria established


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AWARD OF CONTRACT

RFP NO. 16-049

1. A contract was awarded May 2, 2016 for the GVRD. To: Metro Motors Ltd.

in the amount of $782,000 plus an additional $27,400 to include options for a total of $809,400

(exclusive of tax) for supply and delivery of four (4) new 16 foot step vans. The contract price is within the overall budget. 2. Proponents were invited by MV & BC Bid web sites and private invitation on February 15, 2016. Closing Date: March 10, 2016 3. Proposals received (exclusive of tax):

Price Per Unit (excluding options)

Metro Motors with Gasoline Engine and ITB body $195,500 First Truck with Gasoline Engine and ITB body $216,995 First Truck with LPG/Gasoline Dual Engine and ITB body $223,245 First Truck with Diesel Engine and ITB body $234,995 First Truck with CNG Engine and ITB body $249,995


Technical: Fleet Services Department Staff 5. Award was made to the highest ranked proponent based on the evaluation criteria established


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AWARD OF CONTRACT

RFP NO. 15-112

1. A contract was awarded May 4, 2016 for the GVS&DD. To: ABB Inc.

in the amount of $934,263 (exclusive of tax) for supply and delivery of one (1) 5kV and one (1)

15kV switchgear – Iona Island Wastewater Treatment Plant. The contract price is within the overall budget. 2. Proponents were invited by MV & BC Bid web sites and private invitation on November 9, 2015. Closing Date: December 15, 2015 3. Proposals received (exclusive of tax):

ABB Inc. $934,263 3 Phase Power $1,463,280 Littlefuse $1,783,140




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AWARD OF CONTRACT

TENDER NO. 16-076 1. A contract was awarded, May 3, 2016 for the GVS&DD.

To: Industra Construction Corp. in the amount of $277,490 (exclusive of tax) for structural repair of four primary sedimentation

tanks at Annacis Island Wastewater Treatment Plant. The Tender stipulated that the award would be based on the base price. The cost may increase up to $510,078 if all provisional items are exercised.

The contract price is within the overall budget. 2. Tenders were invited by MV & BC Bid web sites and private invitation on March 16, 2016.

Closing Date: April 7, 2016 3. Tenders received (exclusive of tax):

Base Price Provisional Items Total Cost

Industra Construction Corp. $277,490 $232,588 $510,078 Polycrete Restorations Ltd. $290,000 $220,050 $510,050 NAC Constructors Ltd. $423,137 $330,500 $753,637 Smith Bros & Wilson (BC) Ltd. $509,772 $260,845 $770,617 Giffels Westpro Constructors Inc. $647,000 $114,600 $761,600 North Gate Pacific Contracting Ltd. $707,000 $335,213 $1,042,213

4. Tenders reviewed by: Contractual: Purchasing Division Staff Technical: Liquid Waste Services Department Staff 5. Award was made to the lowest compliant bidder.

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AWARD OF CONTRACT

RFP NO. 15-081

1. A contract was awarded May 8, 2016 for the GVS&DD. To: Opus DaytonKnight Consultants Inc.

in the anticipated amount of $1,392,321 (exclusive of tax) for consulting engineering services for

the Queensborough Pump Station project. The contract price is within the overall budget. 2. Proponents were invited by MV & BC Bid web sites and private invitation on September 23, 2015. Closing Date: November 3, 2015 3. Proposals received (exclusive of tax):

Estimated Cost for All Phases

Tetra Tech $1,305,100 Stantec Consulting Ltd. $1,344,500 AMEC Foster Wheeler $1,351,056 AECOM $1,391,959 Opus DaytonKnight $1,392,321 ISL Engineering & Land Services Ltd. $1,411,133 Associated Engineering $1,440,888 CH2M Hill Canada Ltd. $1,667,025



in the RFP. 6. Opus DaytonKnight’s proposal demonstrated a thorough understanding of the project and the

key issues. They proposed a very good team of suitably experienced staff that fit the specified requirements in the field of wastewater pump station design. Opus provided a very thorough, detailed and clear work plan and have been innovative in submitting three potential layout options, as well as suitable architectural design examples.

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Appendix B Page No. 1

STANDING OFFER AGREEMENTS

The following Standing Offer Agreements (SOA’s) were accepted during this reporting period. SOA’s are not contracts and do not constitute a commitment or guarantee by the Corporation to purchase. SOA’s are open to multiple acceptances by the Corporation throughout the term and result in individual contracts with each acceptance. The estimated value of work noted below is based on actual need and available funding as determined through the annual budget approval process. Based on the nature of service, SOA’s may be awarded to all compliant responders or may be limited based on the evaluation criteria established in the bid document.

Title Number of Responses Received

Awarded To: Anticipated Term

Total Anticipated Value

16-070 – Supply and Delivery of Sand and Gravel

Six (6) 1. Mainland Sand and Gravel ULC.

2. Allard Contractors Ltd. 3. Lafarge Canada Inc.

Aggregates 4. Jack Cewe Ltd. 5. Stingray Sand and

Gravel Ltd. 6. Lehigh Materials

Division

Five (5) years $1,000,000

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Appendix C Page No. 1

CONTRACTS AMENDED TO A VALUE OF MORE THAN $500,000

BUT NOT PREVIOUSLY REPORTED TO THE FINANCE COMMITTEE

SOLE SOURCE

PURCHASE ORDER NO. 133066

AMEC Foster Wheeler

Queensborough Main Replacement Engineering Services for the GVWD

1. Original Value of Contract: $309,174

2. Amendment Value: $310,037

3. Amendment Number: 01

4. Total Amended Value of Contract: $619,211

5. Budget Status:

This contract is funded within the capital budget for this project.

6. Reasons for Amendment to Contract:

Amendment No. 01 covers additional design services, inspection hours, and contract administration to cover the extended construction period for Phase I and the addition of Phase 2. A portion of these costs are shared with the City of New Westminster.

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Appendix D Page No. 1

AMENDMENT TO A PREVIOUSLY REPORTED CONTRACT

RFP No. 15-057 PURCHASE ORDER NO. 135266

Installation of Capilano Main No. 9 – Phase 2

for the GVWD

1. Name of Contractor:

Pedre Contractors

2. Date Contract Reported:

October 2015

3. Original Anticipated Reported Value of Contract (exclusive of tax):

$13,497,395

4. Amendment Number: 01

5. Value of Amendment (exclusive of tax): $3,304,525

6. Amendment Type: Additional Services

7. Total Revised Anticipated Amended Value of Contract (exclusive of tax):

$16,801,920

8. Budget Status:

This contract is funded within the capital budget for this program.

9. Reason for Amendment to Contract:

Amendment No. 01 covers removal and disposal of chloride contaminated soils, revisions to paving requirements, and miscellaneous design adjustments. Pavement restoration costs are being shared with the District of North Vancouver.

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Appendix E As of June 17, 2016

Competitive Selection Packages Anticipated to be greater than $500,000

(Issued but not awarded)

Note: All contracts listed below are within the project budgets approved by the Board of Directors

Tender/RFP

Closing Date

RFP No. 15-176 Contingency Disposal of Biosolids (cancelled)

December 10, 2015

RFP No. 15-203 Supply and Delivery of Cellular Devices

January 21, 2016

RFP No. 15-188-R Fleet GPS/AVL System Solution

January 26, 2016

RFP No. 15-178 Supply and Delivery of 69kV Gas Insulated Switchgear for the Sapperton Pump Station Replacement

February 18, 2016

RFP No. 15-196 South Surrey Interceptor Delta Section River Road to Fraser River Pipe Repair with Cured-in-Place Pipe Method

March 1, 2016

RFSO No. 16-021 Supply and Installation of Exterior Grade Signage – Metro Vancouver Regional Parks

March 1, 2016

RFP No. 15-128 Consulting Engineering Services for Detailed Design and Construction of MacKay Creek and Grouse Creek Debris Flow Mitigation

March 8, 2016

RFP No. 15-175 Consulting Engineering Services for Hollyburn Pump Station and Conveyance

March 15, 2016

RFP No. 15-197 Supply & Delivery of Seven (7) Variable Frequency Drives – Annacis Island Wastewater Treatment Plant

March 22, 2016

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Appendix E Page No. 1 continued

RFP No. 16-051 Consulting Engineering Services – Coquitlam Main No. 4 – Preliminary Design

March 29, 2016

Tender No. 16-068 Lulu Island Wastewater Treatment Plant RSP Isolation Gates (awarded at less than $500k)

April 12, 2016

RFP No. 15-109 Supply and Delivery of Protection Relays and EDS Protection, Control and Monitoring System – Annacis Island Wastewater Treatment Plant

April 26, 2016

RFP No. 16-057 Supply and Delivery of Sulphide and Mercaptan Scavenger Chemicals for Wet Scrubber Odour Control at Annacis Island Wastewater Treatment Plant

April 19, 2016

RFP No. 16-069 Consulting Services to Prepare a Comprehensive Regional Water System Plan

May 3, 2016

RFP No. 16-086 Construction Management for Services and Construction (At-Risk) for Tenant Improvements to Metro Tower III

May 5, 2016

RFP No. 16-065 Consulting Engineering Services for the Douglas Road Main No. 2 Still Creek Section

May 10, 2016

RFP No. 16-055 Seymour Capilano Filtration Plant Underdrain Repairs – Engineering Services

May 10, 2016

RFP No. 16-071 North Shore, Coquitlam and Surrey Transfer Stations Operating and Maintenance Services Agreement

May 12, 2016

RFP No. 16-083 Engineering Consulting Services for Northwest Langley Wastewater Treatment Plant

May 26,2016

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Appendix E Page No. 1 continued

RFP No.16-097 Consulting Engineering Services – Detailed Design and Construction for the Fleetwood Reservoir

May 26, 2016

Tender No. 16-010 Seymour Capilano Filtration Plant Clearwell Columns Remediation

May 31, 2016

RFSO 16-109 Structural Engineering Consulting Services

May 31, 2016

RFP No. 16-085 Cleveland Dam Drum Gate Resurfacing

June 2, 2016

RFP No. 16-101 Supply and Delivery of Coagulant Aid Polymer to the Seymour Capilano Filtration Plant

June 9, 2016

Tender No. 16-045 Annacis Island Wastewater Treatment Plant Secondary Clarifier Mechanisms Replacement and Gate Upgrades Construction

June 9, 2016

RFP No. 16-063 Consulting Engineering Services for Emergency Backup Power Facilities at Jervis and Chilco Pump Stations

June 14, 2016

Tender No. 15-180 South Delta Main No. 1 Replacement Phase 2 – 52nd Street from 28th Avenue to 12th Avenue

June 14, 2016

Tender No. 16-007 North Shore Transfer Station Reconfiguration

June 21, 2016

RFP No. 16-136 Odour Monitoring and Assessments for Liquid Waste Services

June 21, 2016

RFP No. 16-108 Consulting Engineering Services for Water Optimization Projects

June 24, 2016

Tender No. 16-138 Colony Farm Sheep Paddocks Trail – Phase I

July 5, 2016

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To: Performance and Audit Committee From: Phil Trotzuk, Chief Financial Officer Date: June 21, 2016 Meeting Date: July 8, 2016 Subject: Manager’s Report RECOMMENDATION That the Performance and Audit Committee receive the report titled “Manager’s Report”, dated June 21, 2016 for information. 1. Performance and Audit Committee Work Plan Update Attachment 1 is the updated 2016 Work Plan indicating the status of the Committee’s key priorities. Attachments: 1. Performance and Audit Committee 2016 Work Plan

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ATTACHMENT 1

Performance and Audit Committee 2016 Work Plan Report Date: June 21, 2016

Committee Priority Status FEBRUARY: Review and Endorse Committee 2016 Work Plan Complete Review 2015 External Audit Plan Complete Review 2015 Final Results: Investment Review Position and Returns Complete Additional Information on Buying Local (Follow-up from 2015) Complete Municipal Borrowing Requests for MFA Spring 2016 Issue Complete Tender / Contact Award Information Complete APRIL: 2015 Audited Financial Statements Complete 2015 External Audit Findings Report Complete Review 2015 Final Results: Operating Results vs Budget Complete Review 2015 Final Results: Capital Expenditures vs Budget Complete Review 2015 Final Results: Development Cost Charges Collected Complete Continuous Improvement Framework Complete Tender / Contact Award Information Complete JULY: Review First 2016 Progress: Investment Review Position and Returns to April 30, 2016 In Progress Review First 2016 Progress: Operating Results vs Budget to April 30, 2016 In Progress Review First 2016 Progress: Capital Expenditures vs Budget to April 30, 2016 In Progress Municipal Borrowing Requests for MFA Fall 2016 Issue (If Applicable) Complete Review and Assess Implications of “Improving Local Government Procurement” (AGLG Report) Pending Dashboard Reporting / Reporting Against Benchmarks Complete Tender / Contact Award Information In Progress OCTOBER: Review Second 2016 Progress: Investment Review Position and Returns to August 31, 2016 Pending Review Second 2016 Progress: Operating Results vs Budget to August 31, 2016 Pending Review Second 2016 Progress: Capital Expenditures vs Budget to August 31, 2016 Pending Review First 2016 Progress: Development Cost Charges Collected to June 30, 2016 Pending Municipal Borrowing Requests for MFA Spring 2017 Issue (If Applicable) Pending Tender / Contact Award Information Pending

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