meeting 4 of 7 greater vancouver sewerage and …may 29, 2020 · [recommendation a): simple...

May 19, 2020

GREATER VANCOUVER SEWERAGE AND DRAINAGE DISTRICT (GVS&DD)

BOARD OF DIRECTORS

REGULAR BOARD MEETING Friday, May 29, 2020

9:00 A.M. 28th Floor Boardroom, 4730 Kingsway, Burnaby, British Columbia

Membership and Votes

A G E N D A1

A. ADOPTION OF THE AGENDA

1. May 29, 2020 Regular Meeting Agenda That the GVS&DD Board adopt the agenda for its regular meeting scheduled for May 29, 2020 as circulated.

B. ADOPTION OF THE MINUTES

1. April 24, 2020 Regular Meeting Minutes That the GVS&DD Board adopt the minutes for its regular meeting held April 24, 2020 as circulated.

C. DELEGATIONS D. INVITED PRESENTATIONS E. CONSENT AGENDA

Note: Directors may adopt in one motion all recommendations appearing on the Consent Agenda or, prior to the vote, request an item be removed from the Consent Agenda for debate or discussion, voting in opposition to a recommendation, or declaring a conflict of interest with an item.

1. PERFORMANCE AND AUDIT COMMITTEE REPORTS

1.1 Audited 2019 Financial Statements

That the GVS&DD Board approve the Audited 2019 Financial Statements for the Greater Vancouver Sewerage and Drainage District.

1 Note: Recommendation is shown under each item, where applicable. All Directors vote unless otherwise noted.

Meeting 4 of 7

Greater Vancouver Sewerage and Drainage District

http://www.metrovancouver.org/boards/membership/board-members/Pages/GVSDD.aspx

GVS&DD Board Agenda May 29, 2020

Agenda of 2

2. LIQUID WASTE COMMITTEE REPORTS

2.1 Liquid Waste Services Capital Program Expenditure Update as at December 31, 2019 That the GVS&DD Board receive for information the report dated April 24, 2020, titled “Liquid Waste Services Capital Program Expenditure Update as at December 31, 2019”.

3. ZERO WASTE COMMITTEE REPORTS

3.1 COVID–19 Update: Solid Waste Services That the GVS&DD Board receive for information the report dated May 8, 2020, titled “COVID-19 Update: Solid Waste Services”.

F. ITEMS REMOVED FROM THE CONSENT AGENDA

G. REPORTS NOT INCLUDED IN CONSENT AGENDA

1. PERFORMANCE AND AUDIT COMMITTEE REPORTS

1.1 Greater Vancouver Sewerage and Drainage District Development Cost Charge Reserve Fund Expenditure Bylaw No. 339, 2020 [Recommendation a): simple weighted majority vote.] and [Recommendation b): simple weighted majority vote, as per Ministerial Order M139.]

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. 339, 2020; and

b) pass and finally adopt Greater Vancouver Sewerage and Drainage DistrictDevelopment Cost Charge Reserve Fund Expenditure Bylaw No. 339, 2020.

H. MOTIONS FOR WHICH NOTICE HAS BEEN GIVEN

I. OTHER BUSINESS

1. GVS&DD Board Committee Information Items and Delegation Summaries

J. BUSINESS ARISING FROM DELEGATIONS

K. RESOLUTION TO CLOSE MEETING Note: The Board must state by resolution the basis under section 90 of the Community Charter on which the meeting is being closed. If a member wishes to add an item, the basis must be included below.

L. RISE AND REPORT (Items Released from Closed Meeting)

M. ADJOURNMENT/CONCLUSION That the GVS&DD Board adjourn/conclude its regular meeting of May 29, 2020.


Minutes of the Regular Meeting of the Greater Vancouver Sewerage and Drainage District (GVS&DD) Board of Directors held on Friday, April 24, 2020 Page 1 of 4

GREATER VANCOUVER SEWERAGE AND DRAINAGE DISTRICT BOARD OF DIRECTORS

Minutes of the Regular Meeting of the Greater Vancouver Sewerage and Drainage District (GVS&DD) Board of Directors held at 9:09 a.m. on Friday, April 24, 2020 in the 28th Floor Boardroom, 4730 Kingsway, Burnaby, British Columbia.

MEMBERS PRESENT: Burnaby, Chair, Director Sav Dhaliwal North Vancouver City, Vice Chair Director

Linda Buchanan* (departed at 9:44 a.m.) Burnaby, Director Pietro Calendino* Burnaby, Director Mike Hurley* Coquitlam, Director Craig Hodge* Coquitlam, Director Richard Stewart* Delta, Director George Harvie* Delta, Director Bruce McDonald* Electoral Area A, Jen McCutcheon* Langley City, Director Val van den Broek* Langley Township, Director Jack Froese* Langley Township, Director Kim Richter* Maple Ridge, Director Mike Morden* New Westminster, Director Jonathan Coté* North Vancouver District, Director Lisa Muri* Pitt Meadows, Director Bill Dingwall* Port Coquitlam, Director Brad West* Port Moody, Director Rob Vagramov* Richmond, Director Malcolm Brodie*

Richmond, Director Harold Steves* Surrey, Director Linda Annis* Surrey, Director Doug Elford* Surrey, Director Laurie Guerra* Surrey, Director Doug McCallum* Surrey, Director Mandeep Nagra* Surrey, Director Allison Patton* Vancouver, Director Christine Boyle* Vancouver, Director Adriane Carr* Vancouver, Director Melissa De Genova* Vancouver, Director Lisa Dominato* Vancouver, Alternate Director Pete Fry for

Kennedy Stewart* Vancouver, Director Colleen Hardwick* Vancouver, Director Michael Wiebe* West Vancouver, Director Mary-Ann Booth* White Rock, Director Darryl Walker* Commissioner Jerry W. Dobrovolny (Non-voting member)

MEMBERS ABSENT: None

STAFF PRESENT: Janis Knaupp, Legislative Services Coordinator, Board and Information Services Chris Plagnol, Corporate Officer

*denotes electronic meeting participation as authorized by Section 3.6.2 of the Procedure Bylaw

Section B 1



A. ADOPTION OF THE AGENDA

1. April 24, 2020 Regular Meeting Agenda It was MOVED and SECONDED That the GVS&DD Board adopt the agenda for its regular meeting scheduled for April 24, 2020 as circulated.

CARRIED B. ADOPTION OF THE MINUTES

1. March 27, 2020 Regular Meeting Minutes

It was MOVED and SECONDED That the GVS&DD Board adopt the minutes for its regular meeting held March 27, 2020 as circulated.

CARRIED C. DELEGATIONS No items presented. D. INVITED PRESENTATIONS No items presented. E. CONSENT AGENDA

At the request of Directors, the following item was removed from the Consent Agenda for consideration under Section F. Items Removed from the Consent Agenda: 1.1 Capital Projects and Project Delivery It was MOVED and SECONDED That the GVS&DD Board adopt the recommendation contained in the following item as presented in the April 24, 2020 GVS&DD Board Consent agenda: 1.2 Solid Waste System Tipping Fee Deferral/Reduction Request

CARRIED The item and recommendation referred to above is as follows:

1.2 Solid Waste System Tipping Fee Deferral/Reduction Request

Report dated April 9, 2020 from Paul Henderson, General Manager, Solid Waste Services and Dean Rear, Chief Financial Officer/General Manager, Financial Services, seeking GVS&DD Board approval to reduce solid waste tipping fees and extend payment terms for account customers.



Recommendation: That the GVS&DD Board direct staff to: a) grant an additional 55 days’ interest free payment grace period for all solid

waste customer charge accounts for invoices issued prior to May 1, 2020; and

b) extend the payment period from 35 days to 90 days for all solid waste customer charge accounts for the period May 1, 2020 to December 31, 2020.

Adopted on Consent F. ITEMS REMOVED FROM THE CONSENT AGENDA

1.1 Capital Projects and Project Delivery Report dated March 31, 2020 from Jerry W. Dobrovolny, Commissioner/Chief Administrative Officer and Cheryl Nelms, General Manager, Project Delivery, providing information regarding current challenges in the delivery of major infrastructure projects and Metro Vancouver’s response. Cheryl Nelms, General Manager, Project Delivery, provided members with a presentation on Metro Vancouver capital projects and project delivery highlighting challenges, best practices response and next steps in responding to strategic recommendations. Doug Ewing, and Ben Hann, KPMG, spoke to members about KPMG’s independent review of Metro Vancouver’s capital projects delivery as a best practices response highlighting key steps in the review, framework, strategic areas of opportunity and recommendations. Members were informed about next steps arising from the independent review and efforts to respond to impacts from the coronavirus (COVID-19) pandemic. Members discussed the need to explore capital project design and standards to identify options for reducing costs with capital projects. In response to questions about capital projects, members were informed about: • a Board budget workshop being scheduled in May or June to receive input in

developing the 2021 budget • challenges with delaying or pausing multi-year projects • ongoing staff efforts to monitor risk transfer, delivery modes and cash flows • resources supporting the Project Management Office • claims being received by Metro Vancouver • Metro Vancouver’s capital program being key to regional economic recovery

9:45 a.m. Vice Chair Buchanan departed the meeting.



Presentation material titled “Capital Projects and Project Delivery” is retained with the agenda. It was MOVED and SECONDED That the GVS&DD Board receive for information the report dated March 31, 2020, titled “Capital Projects and Project Delivery”.

CARRIED G. REPORTS NOT INCLUDED IN CONSENT AGENDA No items presented. H. MOTIONS FOR WHICH NOTICE HAS BEEN GIVEN No items presented. I. OTHER BUSINESS No items presented. J. BUSINESS ARISING FROM DELEGATIONS No items presented. K. RESOLUTION TO CLOSE MEETING No items presented. L. RISE AND REPORT (Items Released from Closed Meeting) No items presented. M. ADJOURNMENT/CONCLUSION

It was MOVED and SECONDED That the GVS&DD Board conclude its regular meeting of April 24, 2020.

CARRIED (Time: 9:56 a.m.)

CERTIFIED CORRECT

Chris Plagnol, Corporate Officer

Sav Dhaliwal, Chair

38495754 FINAL


To: Performance and Audit Committee From: Dean Rear, General Manager, Financial Services/Chief Financial Officer Date: April 17, 2020 Meeting Date: May 6, 2020 Subject: Audited 2019 Financial Statements RECOMMENDATION a) That the MVRD Board approve the Audited 2019 Consolidated Financial Statements for the

Metro Vancouver Regional District; b) That the GVS&DD Board approve the Audited 2019 Financial Statements for the Greater

Vancouver Sewerage and Drainage District; c) That the GVWD Board approve the Audited 2019 Financial Statements for the Greater

Vancouver Water District; d) That the MVHC Board approve the Audited 2019 Financial Statements for the Metro Vancouver

Housing Corporation. EXECUTIVE SUMMARY Although we have recently encountered unprecedented uncertainty with COVID-19, the 2019 Audited Financial Statements illustrate that Metro Vancouver entered this period in strong financial position with excellent liquidity and solid reserves following the Board policy. The statements have been prepared in accordance with Canadian Public Sector Accounting Standards (“PSAS”) and have received an unqualified audit opinion by the external auditors, BDO Canada LLP. PURPOSE To present, for approval, the Audited 2019 Financial Statements for the Metro Vancouver Districts and the Metro Vancouver Housing Corporation. BACKGROUND Legislation requires that annual Audited Financial Statements be prepared for the Metro Vancouver Districts and Metro Vancouver Housing Corporation and presented at a public meeting of the Board of Directors. The Audited Financial Statements for 2019 have been prepared by management in accordance with Canadian public sector accounting standards (“PSAS”) and have received an unqualified audit opinion by the external auditors, BDO Canada LLP. 2019 FINANCIAL STATEMENT HIGHLIGHTS Under PSAS regulations, governments are required to present four statements with explanatory notes - Statement of Financial Position (Exhibit A), Statement of Operations (Exhibit B), Statement of Net Debt (Exhibit C) and Statement of Cash Flows (Exhibit D). The District also includes a number of schedules for additional reference. It is important to note that there are differences between the presentation in these financial statements and the annual Metro Vancouver budget, which is prepared to determine the annual revenue requirements to meet expenditure obligations. These differences are outlined in note 17 of the consolidated statements.

Section E 1.1


Audited 2019 Financial Statements Performance and Audit Committee Regular Meeting Date: May 6, 2020

Page 2 of 3

The complete set of 2019 Audited Financial Statements is attached. These are presented for the Boards’ approval and include:

Audited 2019 Consolidated Financial Statements for the Metro Vancouver Regional District Audited 2019 Financial Statements for the Greater Vancouver Sewerage and Drainage District Audited 2019 Financial Statements for the Greater Vancouver Water District Audited 2019 Financial Statements for the Metro Vancouver Housing Corporation

The consolidated financial statements combine the accounts of the Metro Vancouver Regional District, Greater Vancouver Sewerage and Drainage District, Greater Vancouver Water District and the Metro Vancouver Housing Corporation. Two statements, the Summarized Consolidated Statement of Financial Position (Appendix 1) and the Consolidated Statement of Operations (Appendix 2), similar to the Balance Sheet and Income Statement in private organizations, are the foundation of the audited statements. They contain three key indicators, the accumulated surplus, annual surplus and net debt. The Summarized Statement of Financial Position (Appendix 1) contains two of the indicators, the net debt and the accumulated surplus. The net debt position represents the amount by which the Districts’ liabilities exceed the financial assets. Although the amount appears as unfavourable, the vast majority of the organization’s liabilities are long-term debt which is repayable over several years. The organization’s financial assets are more than sufficient to offset the amount of short-term obligations. The current ratio which is current assets divided by current liabilities and is a measure of an organization’s liquidity is 3.3 to 1. A ratio of 2 to 1 is considered to be a measure of favourable liquidity. The net debt position increased by only $153.7 million, while the increase in tangible capital assets was $642.6 million. This indicates that more of the District’s investment in capital infrastructure is being funded more through operations and reserves rather than debt. The next indicator, also presented in the Summarized Statement of Financial Position (Appendix 1) is the accumulated surplus. Commonly thought of as “Net Worth” in private organizations, the District’s accumulated surplus is favourable at $4.9 billion, which indicates that the organization owns (Financial and Non-Financial Assets) more than it owes (Liabilities). This reflects the member municipalities’ net investment in the District’s consolidated entity. It comprises reserve balances of $260.1 million and the investment in tangible capital assets (assets less debt owing) of $4.6 billion. The accumulated surplus increased by $489.6 million in 2019 which represents the annual surplus for the year, the final indicator. The annual surplus is calculated as the difference between revenues and expenses and detailed in Consolidated Statement of Operations (Appendix 2). For PSAS purposes, annual surplus does not include contributions to and from reserves, capital contributions or principal payments on long-term debt. Additional explanations pertaining to the Summarized Consolidated Statement of Financial Position (Appendix 1) and the Consolidated Statement of Operations (Appendix 2) are included in the 2019 Financial Statement Highlights (Appendix 3) and in a separate report titled “5.3 2019 Financial Results Year-End”.


Audited 2019 Financial Statements Performance and Audit Committee Regular Meeting Date: May 6, 2020

Page 3 of 3

ALTERNATIVES These financial statements are a statutory requirement prepared in accordance to specific accounting principles. No alternatives are presented. FINANCIAL IMPLICATIONS There are no financial implications relative to the approval of the Audited 2019 Financial Statements. SUMMARY / CONCLUSION The financial statements are part of the legislated reporting requirements for 2019 and staff recommends their approval. As noted in the Auditors’ Report, it is the Auditors’ opinion that these Financial Statements present fairly the financial position of the Metro Vancouver Districts and the Metro Vancouver Housing Corporation as of December 31, 2019, and the results of their financial activities and changes in their financial position for the year then ended in accordance with Canadian public sector accounting standards. Attachments: Appendix 1 - Summarized Consolidated Statement of Financial Position Appendix 2 - Consolidated Statement of Operations Appendix 3 - Management Discussion and Analysis - 2019 Financial Statement Highlights Attachment 1 - Metro Vancouver Districts and Metro Vancouver Housing Corporation Financial

Statements for the year ended December 31, 2019 Greater Vancouver Sewerage and Drainage District Financial Statements for the year ended December 31, 2019


APPENDIX 1


APPENDIX 2


Management Discussion and Analysis – 2019 Financial Statement Highlights Summarized Consolidated Statement of Financial Position The purpose of the Consolidated Statement of Financial Position (Appendix 1) is to present the organization’s assets, liabilities, net debt position and accumulated surplus or equity position. The accumulated surplus could also be interpreted as the net worth of the organization. Relevant explanations pertaining to the Summarized Consolidated Statement of Financial Position are as follows: Accumulated Surplus

The key performance indicator on Statement of Financial Position is the Accumulated Surplus. The accumulated surplus for the District is favourable at $4.9 billion, which indicates that the organization owns (Financial and Non-Financial Assets) more than it owes (Liabilities). This amount is often referred to in private organizations as “Net Worth”, and reflects the member municipalities’ net investment in the District’s consolidated entity. It comprises reserve balances of $260.1 million and the investment in tangible capital assets (assets less debt owing) of $4.6 billion. The accumulated surplus increased by $497.2 million in 2018 which represents the annual surplus for the year, calculated as the difference between revenues and expenses and detailed in Appendix 2. For PSAS purposes, annual surplus does not include contributions to and from reserves, capital contributions or principal payments on long-term debt.

Financial Assets Cash, Cash Equivalents and Investments

Cash, cash equivalents and investments consist of cash and both long and short-term investments. The 2019 balance was significantly lower than 2018 as a result increased approved capital spending in 2019 for utility infrastructure projects funded in part from the application of deferred grants and reserves previously held in cash and investments.

Accounts Receivable

Accounts receivable are amounts due through the normal course of District business and are net of any allowance for doubtful accounts, which is negligible. The balance at December 31, 2019 comprises mainly of tipping fees due from commercial solid waste haulers, development cost charge (DCC) income, industrial sewer charges from commercial customers and payments due from our member municipalities for water sales. The amount is higher than 2018, mainly due to the increase in DCC receivable from members as a result of the increase in DCC rates in 2019.

Asset held for sale

On March 12, 2019, Metro Vancouver’s two former head office properties were sold. The gain from the sale, net of book value, of $63.15 million was included in the income in the 2019 financial statements.

APPENDIX 3


Financial Assets (continued) Debt Reserve Fund

The debt reserve fund represents the amount required, under agreement with the Municipal Finance Authority (MFA), as security for debt service obligations related to MFA debentures issued to the Districts and its members. This represents 1% of the debenture issues. These amounts are refundable, with interest, upon debenture maturity. This balance fluctuates upward with new debt issues and downward as issues mature. The total debt reserve fund balance can be segregated into two components: 1) Member Municipalities and Translink ($34.1 million). This amount is the

related to debt service obligations for these organizations and is fully refundable to them. Therefore, it has no impact on Metro Vancouver’s financial position.

2) Metro Vancouver ($20.7 million). This amount is related to debt incurred to fund infrastructure.

Liabilities

Accounts Payable and Other Liabilities

Accounts payable and other liabilities consists of amounts owing: • to suppliers for goods received and services rendered, primarily those

relating to capital projects; • to employees for future benefits which represent the potential payments

to employees of entitled benefits, such as banked vacation; • to MFA and mortgage providers for interest accrued on debt; and • for the District’s share of landfill closure and post closure costs at the

Vancouver and Cache Creek landfills.

The increase of $74.1 million is mostly a result of an increase of in construction holdbacks, trade and other payables due to the increase in capital project spending of $735.8 million compared to $422.7 million in 2018.

Deferred Revenue and Refundable Deposits

Deferred revenue and refundable deposits include: • $227.6 million of restricted funds raised through the collection of

development cost charges (DCCs), which will be used to fund future liquid waste growth capital projects;

• $153.7 million for the Provincial grant associated with the construction of the new North Shore Wastewater Treatment plant;

• $15.5 million of restricted funds in MVHC which will be used for the replacement of equipment and specified building components and to offset future operating deficits in specific programs;

• $2.4 million in security deposits in MVHC and Parks; and • $3.9 million from miscellaneous deferred grants and revenues in other

programs. The decrease of deferred revenue for the year is due mainly to the utilization of DCCs and the Provincial grant to fund GVS&DD capital projects, including the North Shore Wastewater Treatment plant.


Liabilities (continued) Debt Debt, net of sinking funds reflects the amount of long term borrowing

outstanding at the end of 2019. Sinking funds consist of principal payments made over the term of the debt issue. These payments are invested which along with the interest earned will offset the debt repayment at maturity.

TransLink and Member Municipalities

The debt owing to MFA for TransLink and member municipalities reflects borrowing on behalf of these entities to fund major capital projects. The amount is completely offset reflecting the fact that these entities are responsible for the debt. Therefore, the impact on Metro Vancouver’s financial position is nil. Overall debt for these entities decreased by $13.5 million. New long-term borrowing during the year totaled $94.095 million relating to debt borrowed by the Township of Langley ($19.95 million), Port Coquitlam ($52.0 million) and New Westminster ($22.145 million). This increase is offset by debt and sinking fund payments of $53.8 million and sinking fund interest earned of $26.8 million. In addition, there was $50.4 million in debt maturities with an equal offsetting amount of sinking fund retirements.

Metro Vancouver

The debt owing on behalf of the Metro Vancouver Districts and Metro Vancouver Housing Corporation reflects borrowing to fund major infrastructure projects. The net amount owing for Metro Vancouver at the end of 2019 is $1.24 billion. To put this in context, Metro Vancouver has tangible capital assets of $5.7 billion and an investment in non-financial assets (assets less debt owing) of $4.5 billion. The debt decreased by $1.97 million. New long term borrowing was $109.5 million – $86.0 million borrowed on behalf of GVS&DD, $22.0 million for GVWD and $1.5 million related to MVHC forgivable loan. This increase is offset by debt and sinking fund payments of $90.4 million and sinking fund interest earned of $21.07 million. In addition, there was $57.5 million in debt maturities with an equal offsetting amount of sinking fund retirements.

Net Debt The net debt position indicates the amount by which the organizations’ liabilities exceed the financial assets. Although the amount appears as unfavourable, the vast majority of the organization’s liabilities are long-term debt which is repayable over several years. The organization’s financial assets are more than sufficient to offset the amount of short-term obligations. The current ratio which is current assets divided by current liabilities and is a measure of an organization’s liquidity is 3.3 to 1. A ratio of 2 to 1 is considered to be a measure of favourable liquidity. While the increase in tangible capital assets of $642.6 million, the net debt position increased by only $153.7 million, which indicates that more of the District’s investment in capital infrastructure is being funded through operations and reserves rather than debt.


Non-Financial Assets

Non-financial assets represent the value of tangible capital assets, inventories of supplies held by the organization, the prepaid portion of land leases on housing properties, and prepaid expenses for items such as insurance.

The Tangible Capital Assets balance represents the historical cost of the asset less accumulated amortization. The increase in 2019 is the direct result of the capital expenditures made during the year, the majority of which were for water and sewer infrastructure projects.

Consolidated Statement of Operations The Consolidated Statement of Operations (Appendix 2) identifies the results of the organization’s financial activities for the year by presenting revenues less expenses, which is the annual surplus. This statement consolidates the revenues and expenses of the Districts’ and MVHC. The annual surplus of $489.6 million serves as the 2019 addition to the organization’s overall accumulated surplus position or net worth of $4.9 billion. The accumulated surplus in this statement is also articulated in the Summarized Consolidated Statement of Financial Position and Equity (Appendix 1). As noted above, the annual surplus as presented under PSAS is different from the annual surplus as determined in the context of the annual budget, which is $21.3 million. The primary difference is that PSAS excludes contributions to and from reserves as well as capital contributions and principal payments on long-term debt. These excluded items form a significant part of the annual approved budget. Relevant explanations pertaining to the Consolidated Statement of Operations are as follows: Revenue

Metered Sale of Water

Metered water sales for 2019 were lower than budget due to slightly less consumption than anticipated, but $10.7 million higher than 2018 as a result of the increased consumption over the prior year and a 5.8% increase in rates.

Tipping Fees Tipping fee revenues in Solid Waste were higher than budgeted due primarily to higher than expected waste flows in the system during 2019, an additional 71,000 tonnes. The waste flows and revenue in 2019 are comparable to the 2018 levels.

Development Cost Charges

Development cost charges (DCCs) applied against growth capital debt costs are slightly lower than budget due to growth capital expenditures and related debt financing being less than budget. However, the amount is significantly higher than prior year because of direct application of DCCs to project funding rather than just servicing growth debt servicing.


Revenues (continued)

Property Rentals Property rentals in the Housing Corporation were slightly higher than budget and prior year due to lower than anticipated vacancy rates,+++ consistently below 1%.

Grants and Other

Contributions Grants and other contributions of $55.9 million include grants in-lieu of taxes ($1.4 million), grants related GVS&DD capital projects ($54.0 million), and subsidies and contributions received by MVHC ($2.0 million). These grants are offset by a $1.9 million contribution to MVHC’s restricted reserves (deferred revenue). Under MVHC’s operating contracts and PSAS requirements, surpluses related to restricted programs are recorded as contributions to deferred revenue and lower the amount of revenue recorded. Grants are significantly higher than prior year due to the application of capital grant for the North Shore Wastewater Treatment, however, they are lower than budget due to less spending on the project and therefore less grant application than anticipated.

User fees, Recoveries and Other Revenue

User fees, recoveries and other revenue were $78.5 million higher than budget mainly due to the gain on the sale of former head office buildings of $63.15 million and revenue of $13.6 million received for cost-sharing recoveries related to capital projects.

Sinking fund Income and Interest Income

Sinking fund income and interest income pertains to Metro Vancouver sinking funds and investment balances. The income is higher than anticipated as the milestone payments for North Shore Wastewater Treatment plant were later than expected, resulting in a higher than expected average investment balance for the year. The 2019 results are lower than 2018 due to a significant portion of the GVWD debt maturing in late 2018 and 2019, resulting in a decrease in sinking fund balance and income.

Sinking Fund Income, Members and TransLink

Sinking fund income, members and TransLink relates to income earned on sinking funds for debt incurred on behalf of these organizations. This income, although recognized in the Financial Statements, is income attributed to the other organizations. There is an offsetting item under expenses, so the net impact to Metro Vancouver is nil.

Expenses

Sewer (Liquid Waste) Operations

Expenses for Liquid Waste Services were lower than budget due to $5.5 million lower debt costs; $3.6 million underspend in Minor Capital projects due to the deferral of some projects, $7.7 million in Residuals program due to lower grit production than expected from the Iona solids handling facility, $1.4 million in Research and Innovation program due to delay in the commencement of SIF projects and $3.3 million disposal of tangible capital assets. While debt servicing was lower than anticipated for 2019, it was higher than 2018 due to increased capital borrowing and a key reason for the actual variance from 2018, along with lower spending on minor capital projects in 2018.


Expenses (continued) Waste Disposal,

Recycling and Regulatory Services (Solid Waste)

Expenditures in Solid Waste operations were higher than budget and higher than prior year largely due a one-time cost of $20.9 million from the City of Vancouver that was excluded from the Vancouver Landfill operating rate calculations, as well as additional waste system volume.

Water Operations

Water Operations spent less than budget and was less than prior year due to labour underspends from operating staff vacancies (ongoing recruitment), the deferral of some projects, lower operating expenditures for water treatment, residuals and water supply programs and delayed easement acquisition purchases. Debt servicing costs were lower than anticipated by approximately $2.7 million for the year as a result of additional contribution to capital from the application of the 2018 operational surplus, thereby lowering new debt financing.

Building Operations

Although Building Operations shows expenditures of $1.8 million more than budget as a result of higher than anticipated expenses related to the sale of the former head office buildings and additional borrowing costs, these were offset by higher revenues, including the gain of $63.1 million on the sale of the buildings.

Housing Rental Operations

Housing expenditures were slightly lower than budget due to underspends of approximately $615,000 in capital replacement work due to permit and design delays in major building envelope projects, and $600,000 in miscellaneous operational expenditures in administrative, communications, tenant and other program services. Expenditures are reported as $6.3 million higher than prior year, because 2018 had a significant underspend in capital replacement ($5.1 million) due to revised schedules of larger envelope and roofing projects.

General

Government Services

General government services had lower than expected expenditures mainly as a result of cancellations or lower attendance at meetings in Board and Legislative Services totaling $260,000; offset by an increase in expenditures of $87,000 for National Zero Waste Council, which was offset by an increase in revenues. Expenditures were $367,000 more than 2018 as the 2019 budget approved increased expenditures communications and collaborative initiatives programs.

Regional Parks Regional Parks expenses were less than budget due underspends in materials,

maintenance, equipment rentals and consulting due to timing of seasonal work, work done by internal staff, delays in some studies and lower filming activity in 2019. Expenditures were $7.2 million less than prior year primarily because 2018 had a one-time charge of $8.2 million related to the transfer of assets to the City of Abbotsford.


Expenses (continued) Air Quality Air Quality expenditures were slightly over budget by 1% primarily due to legal

fees for Regulation and Enforcement, these were offset by higher revenues as the function had an overall surplus for the year. Expenditures were lower than 2018 as there were unusually higher legal fees in 2018 from Regulation and Enforcement.

Regional Employers Services

Expenditures in Regional Employers Services were lower than budgeted due to legal fees being lower than anticipated due to timing of bargaining. In addition, there were a few staff vacancies and delays in recruitment.

911 Emergency Telephone System

E911 expenditures were essentially on budget for the year and comparable to the prior year.

Regional Planning

Regional Planning ended the year underspent in expenditures primarily due to labour vacancies and lower than planned consulting expenditures. The expenditures were higher than prior year due to general budget increases in 2019 and staff lower staff vacancies in 2019 versus 2018.

Affordable Housing

Expenditures for Affordable Housing were lower than budget due to two vacant program manager positions for the majority of 2019, leading to an underspend in salaries by $286,000, offset by over expenditures in consulting by $50,000.

Electoral Areas Electoral Areas expenditures were over budget by $545,000 and higher than prior year by a similar amount, due to a one-time Board approved contribution from the Community Works Fund for green infrastructure to mitigate storm water impacts at the University Endowment Lands and pedestrian and cycling improvements at Wesbrook Mall.

Regional Global Positioning System (RGPS)

The RGPS program was underspend due to lower than expected equipment purchases and consulting costs. The amount spent in 2019 is significantly higher than prior year ($151,000), because the 2019 budget included 59% approved expenditure increase which was offset by reserve funding.

Sasamat Volunteer Fire Department

Sasamat Volunteer Fire Department expenditures were on target for 2019 and slightly lower than prior year as 2018 included one-time equipment purchases.

Regional Prosperity

The Regional Prosperity Program was a new program in 2019 and was underspent due to the timing of the approval of the new service resulting in underspends in labour, consulting and contract services.


Expenses (continued) Regional Emergency Management (IPREM)

IPREM’s expenditures for 2019 were lower than anticipated due to staff vacancies. The program had an approved increase in contributions to the IPREM program over that for 2018.

Homelessness Partnering Strategy

The Homelessness Partnering Strategy Program was a federally funded program that was completed in March of 2019. The expenditures incurred in 2019 represent three months of the program which are directly offset by federal government grants.

Corporate Program Costs

Corporate Program Costs represent expenditures for centralized services such as Finance, Human Resources, External Relations, Corporate Services, Legal and Indigenous Relations which were surplus to budget by $570,000 for 2019. Also included are the gross costs for Fleet Services, which for budget purposes are allocated to the individual functions.


METRO VANCOUVER DISTRICTS’ AND METRO VANCOUVER HOUSING CORPORATION

(OPERATING AS METRO VANCOUVER)

Financial Statements

Year ended December 31, 2019

DRAFT - April 3, 2020

ATTACHMENT 1


wchan

Text Box

Financial Statements of

GREATER VANCOUVER SEWERAGE AND DRAINAGE DISTRICT Year ended December 31, 2019

DRAFT ‐ April 3, 2020


GREATER VANCOUVER SEWERAGE AND

DRAINAGE DISTRICTIndex to Financial Statements

December 31, 2019

Exhibit

Independent Auditor's Report

Management Report Statement of Financial Position A

Statement of Operations B

Statement of Change in Net Debt C

Statement of Cash Flows D

Notes to Financial Statements

Schedule

Unaudited Schedules of:

Operating Fund 1

Capital Fund 2


Independent Auditor’s Report

To the Members of the Board of Directors of the Greater Vancouver Sewerage and Drainage District

Opinion

We have audited the financial statements of the Greater Vancouver Sewerage and Drainage District(the “District”), which comprise the Statement of Financial Position as at December 31, 2019, and theStatements of Operations, Change in Net Debt and Cash Flows for the year then ended, and notes tothe financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, thefinancial position of the District as at December 31, 2019, and the results of its operations, change innet debt and cash flows for the year then ended in accordance with Canadian public sector accountingstandards.

Basis for Opinion

We conducted our audit in accordance with Canadian generally accepted auditing standards. Ourresponsibilities under those standards are further described in the Auditor’s Responsibilities for theAudit of the Financial Statements section of our report. We are independent of the District inaccordance with the ethical requirements that are relevant to our audit of the financial statements inCanada, and we have fulfilled our other ethical responsibilities in accordance with these requirements.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basisfor our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements inaccordance with Canadian public sector accounting standards, and for such internal control asmanagement determines is necessary to enable the preparation of financial statements that are freefrom material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the District’s ability tocontinue as a going concern, disclosing, as applicable, matters related to going concern and using thegoing concern basis of accounting unless management either intends to liquidate the District or tocease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the District’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a wholeare free from material misstatement, whether due to fraud or error, and to issue an auditor’s reportthat includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee thatan audit conducted in accordance with Canadian generally accepted auditing standards will alwaysdetect a material misstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, they could reasonably be expected to influencethe economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with Canadian generally accepted auditing standards, we exerciseprofessional judgment and maintain professional skepticism throughout the audit. We also:

· Identify and assess the risks of material misstatement of the financial statements, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resulting from error,

BDO Canada LLP, a Canadian limited liability partnership, is a member of BDO International Limited, a UK company limited byguarantee, and forms part of the international BDO network of independent member firms.

Tel: 604 688 5421Fax: 604 688 [email protected]

BDO Canada LLP600 Cathedral Place925 West Georgia StreetVancouver BC V6C 3L2 Canada

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as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the overrideof internal control.

· Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose of expressing anopinion on the effectiveness of the District’s internal control.

· Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by management.

· Conclude on the appropriateness of management’s use of the going concern basis of accountingand, based on the audit evidence obtained, whether a material uncertainty exists related to eventsor conditions that may cast significant doubt on the District’s ability to continue as a goingconcern. If we conclude that a material uncertainty exists, we are required to draw attention inour auditor’s report to the related disclosures in the financial statements or, if such disclosures areinadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up tothe date of our auditor’s report. However, future events or conditions may cause the District tocease to continue as a going concern.

· Evaluate the overall presentation, structure and content of the financial statements, including thedisclosures, and whether the financial statements represent the underlying transactions and eventsin a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the plannedscope and timing of the audit and significant audit findings, including any significant deficiencies ininternal control that we identify during our audit.

Other Matter — Supplementary Information

We draw attention to the fact that the supplementary information included in Schedules 1 and 2 do notform part of the financial statements. We have not audited or reviewed this supplementary informationand, accordingly, we do not express any opinion, review conclusion or any other form of assurance onthis supplementary information.

Chartered Professional Accountants

Vancouver, British Columbia[DATE]

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METRO VANCOUVER SEWERAGE AND DRAINAGE DISTRICT

MANAGEMENT REPORT The Financial Statements contained in this report have been prepared by management in accordance with Canadian public sector accounting standards. The integrity and objectivity of these statements are management’s responsibility. Management is responsible for all the statements and schedules, and for ensuring that this information is consistent, where appropriate, with the information contained in the financial statements. Management is also responsible for implementing and maintaining a system of internal controls to provide reasonable assurance that reliable financial information is produced. The Greater Vancouver Sewerage and Drainage District’s Board of Directors is responsible for approving the financial statements and for ensuring that management fulfills its responsibilities for financial reporting and internal control and exercises this responsibility through the Performance and Audit Committee of the Board. The external auditors, BDO Canada LLP, conduct an independent examination, in accordance with Canadian Auditing Standards, and express their opinion on the financial statements. Their examination does not relate to the other schedules and statements required by the Financial Information Act. The Independent Auditor’s Report outlines the scope of the audit for the year ended December 31, 2019. On behalf of Greater Vancouver Sewerage and Drainage District. Date: May 29, 2020 Dean Rear, Chief Financial Officer


GREATER VANCOUVER SEWERAGE

AND DRAINAGE DISTRICTExhibit A

Statement of Financial Position


2019 2018

Financial Assets

Cash $ 77,654 $ 126,585Accounts receivable 81,009,886 46,180,865Due from Metro Vancouver Regional District 696,213,073 938,579,870Debt reserve fund (note 2) 7,677,816 6,817,838

784,978,429 991,705,158

Liabilities

Accounts payable and accrued liabilities (note 3) 162,499,858 128,270,329Landfill closure and post‐closure liability (note 4) 33,038,006 31,709,200Deferred revenue and refundable deposits (note 5) 382,403,809 513,256,423Debt (net of sinking funds) (note 6) 626,289,815 576,901,055

1,204,231,488 1,250,137,007

Net Debt (419,253,059) (258,431,849)

Non‐Financial Assets

Tangible capital assets (note 7) 2,182,239,202 1,765,631,822Inventories of supplies 4,637,990 4,661,611Prepaid expenses 3,114,824 2,970,300

2,189,992,016 1,773,263,733

Accumulated surplus (note 8) $ 1,770,738,957 $ 1,514,831,884

Contractual obligations and rights (note 9)Contingencies (note 10)Subsequent event (note 13)

The accompanying notes are an integral part of these financial statements.

Chief Financial Officer

Board Chair



AND DRAINAGE DISTRICTExhibit B

Statement of Operations


2019 2019 2018

Budget Actual Actual

(note 11)

Revenue (note 12)

Sewerage and drainage levy 255,810,755$ 255,810,755$ 232,134,617$ Tipping fees 98,362,329 105,692,375 102,036,530 BODTSS Industrial Charges 11,022,967 11,219,515 11,265,803 Development cost charges (note 5) 153,665,173 152,388,981 10,759,806 Electricity sales 5,927,304 5,793,404 5,584,341

Trucked liquid waste fees 1,096,167 1,219,798 1,157,301 Source control fees 1,207,102 1,201,837 1,357,501 User fees, recoveries and other revenue 3,508,134 5,193,321 4,111,874 Sinking and debt retirement fund income 2,913,575 2,590,959 2,490,357 Interest income 2,275,705 2,959,455 4,771,701 Grants and other contributions (note 5) 101,200,000 53,975,099 5,878,448

636,989,211 598,045,499 381,548,279 Expenses (note 12)

Liquid waste services 222,770,721 207,642,982 192,853,711 Solid waste services 106,522,407 134,495,444 113,189,157

329,293,128 342,138,426 306,042,868

Annual surplus 307,696,083 255,907,073 75,505,411

Accumulated surplus, beginning of year 1,514,831,884 1,514,831,884 1,439,326,473

Accumulated surplus, end of year 1,822,527,967$ 1,770,738,957$ 1,514,831,884$



GREATER VANCOUVER SEWERAGEAND DRAINAGE DISTRICTExhibit C

Statement of Change in Net Debt


2019 2019 2018


(note 11)

Annual surplus 307,696,083$ 255,907,073$ 75,505,411$

Change in tangible capital assets:

Acquisition of tangible capital assets (654,060,000) (449,379,197) (323,048,856) Amortization of tangible capital assets 29,958,814 29,470,800 29,623,721 Disposal of tangible capital assets ‐ 3,301,017 276,810

(624,101,186) (416,607,380) (293,148,325)

Change in other non‐financial assets:

Acquistion of prepaid expenses ‐ (3,114,824) (2,970,300) Use of prepaid expenses ‐ 2,970,300 1,728,411 Acquisition of inventories of supplies ‐ (4,637,990) (4,661,611) Consumption of inventories of supplies ‐ 4,661,611 4,341,637

‐ (120,903) (1,561,863)

Changes in net debt (316,405,103) (160,821,210) (219,204,777)

Net debt, beginning of year (258,431,849) (258,431,849) (39,227,072)

Net debt, end of year (574,836,952)$ (419,253,059)$ (258,431,849)$



GREATER VANCOUVER SEWERAGEAND DRAINAGE DISTRICTExhibit D

Statement of Cash Flows


2019 2018

Cash provided by (used in):

Operating transactions:

Annual surplus 255,907,073$ 75,505,411$ Items not involving cash:

Amortization 29,470,800 29,623,721 Sinking fund income (2,590,959) (2,490,357) Debt reserve fund income (164,912) (104,071) Loss on disposal of tangible capital assets 3,301,017 91,240 Change in landfill closure and post‐closure liability 1,328,806 25,742

Change in non‐cash assets and liabilities:Accounts receivable (34,829,021) (1,737,499) Prepaid expenses (144,524) (1,241,889) Accounts payable and accrued liabilities 34,229,529 60,027,357 Deferred revenue (130,852,614) 28,393,249 Inventories of supplies 23,621 (319,974)

Net change in cash from operating transactions 155,678,816 187,772,930

Capital transactions:

Proceeds on sale of tangible capital assets ‐ 185,570 Acquisition of tangible capital assets (449,379,197) (323,048,856)

Net change in cash from capital transactions (449,379,197) (322,863,286)

Financing transactions:

Due from Metro Vancouver Regional District 242,366,797 (281,750,429) Debenture debt issued 86,000,000 390,000,000 Debt reserve fund issuance (860,000) (3,900,000) Debt reserve fund maturity 164,934 237,363 Sinking fund payments (34,020,281) (13,691,028) Debenture debt maturity (10,000,000) (14,000,000) Sinking fund retirement 10,000,000 14,000,000

Net change in cash from financing transactions 293,651,450 90,895,906

Net change in cash and cash equivalents (48,931) (44,194,450)

Cash and cash equivalents, beginning of year 126,585 44,321,035

Cash and cash equivalents, end of year 77,654$ 126,585$



GREATER VANCOUVER SEWERAGE AND DRAINAGE DISTRICT Notes to Financial Statements, page 1 Year ended December 31, 2019

1. Significant Accounting Policies The Greater Vancouver Sewerage and Drainage District (the “District”) was established by an Act of the same name in 1956. Its two primary responsibilities are the collection, treatment and discharge of liquid waste for the municipalities of the Metro Vancouver Regional District (“MVRD”), and the disposal of solid waste both for the municipalities of the MVRD and the public. The District owns and operates a number of wastewater treatment plants and a related collection network connected to the municipal collection systems, and several solid waste facilities including a waste to energy facility. Its Board of Directors comprises the same councilors and mayors as appointed to the MVRD Board by the participating municipalities. The member municipalities under the Act are jointly and severally liable for its debts.

The District’s financial statements are prepared by management in accordance with Canadian public sector accounting standards. Significant accounting policies adopted by the District are as follows:

Basis of Accounting

The District follows the accrual method of accounting for revenues and expenses. Revenues are recognized in the year in which they are earned and measurable. Expenses are recognized as they are incurred and measurable as a result of receipt of goods or services and/or the legal obligation to pay.

Government Transfers

Government transfers are recognized as revenue in the financial statements when the transfer is authorized and any eligibility criteria are met, except to the extent that transfer stipulations give rise to an obligation that meets the definition of a liability. The transfer of revenue is initially deferred and then recognized in the statement of operations as the stipulation liabilities are settled.

When the District is deemed the transferor, the transfer expense is recognized when the recipient is authorized and has met the eligibility criteria.

Deferred Revenue

Deferred revenue represents development cost charges and a Provincial grant which have been collected, but for which the related services or obligations have yet to be performed. These amounts will be recognized as revenue in the fiscal year the services are performed or obligations and stipulations have been met.

Sinking Fund, Debt Retirement and Interest Income

Interest income is reported as revenue in the period earned. When required, based on external restrictions, interest income earned on deferred revenue is added to and forms part of the deferred revenue balance and is recognized into income when related stipulations are met. Any surpluses received from upon debt retirement are recorded in the year received. Greater Vancouver Sewerage and Drainage District

GREATER VANCOUVER SEWERAGE AND DRAINAGE DISTRICT Notes to Financial Statements, page 2 Year ended December 31, 2019 1. Significant Accounting Policies (continued)

Cash and Investments

In order to improve cash management, the general practice of the Metro Vancouver Districts is to accumulate cash and investment transactions in pooled accounts held by the MVRD. Investments held by the MVRD consist of bonds issued by governments and Canadian chartered banks, money market instruments and term deposits. Interest earned on GVS&DD’s fund balances is included in the amount owing from MVRD and is recorded as interest income in the Statement of Operations.

Employee Future Benefits

Employees who provide services for the District are employees of the MVRD. Employee related costs are allocated by the MVRD to the District based on services rendered. These costs are shown as expenses in the financial statements and are included in amounts owing from MVRD.

Post‐employment benefits of the MVRD, including accumulated banked sick and vacation pay, retirement severance and Worker’s Compensation top‐up benefits for employees pursuant to certain policies and union agreements, are actuarially determined based on service and best estimates of retirement ages and expected future salary and wage increases. The obligation under these benefit plans is allocated to the District based on projected benefits as the employees render services necessary to earn the future benefits and included in amounts owing to MVRD.

Landfill Closure and Post‐Closure Liability

The estimated present value of landfill closure and post‐closure costs is recognized as a liability. This liability is recognized based on estimated future expenses, including estimated inflation discounted to the current date and accrued based on the proportion of the total capacity of the landfill used as of the date of the statement of financial position. The change in this estimated liability during the year is recorded as an expense in operations. These estimates are reviewed and adjusted annually and any changes are recorded on a prospective basis.

Non‐Financial Assets

Non‐financial assets are not available to discharge existing liabilities and are held for use in the provision of services. They generally have useful lives extending beyond the current year and are not intended for sale in the ordinary course of operations.



Non‐Financial Assets (continued)

Tangible Capital Assets

Tangible capital assets are recorded at cost which includes amounts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost, less residual value, of the tangible capital assets, except land, is amortized over their estimated useful lives. All assets are amortized on a straight line basis as follows:

Asset Useful Life –

Years

Infrastructure Interceptors and trunk sewers, drainage 100 Wastewater treatment, pumping stations 50 Solid Waste – incinerators, transfer stations 30 Solid Waste – landfills 25 ‐ 30 Information technology systems and networks 5

Machinery, Equipment, Furniture and Fixtures 5 ‐ 20

a. Annual amortization:

Annual amortization begins when the asset is put into service and is expensed over its useful life. Assets under construction are transferred to the appropriate asset class and are amortized from the date the asset is put into productive use.

b. Contributions of tangible capital assets:

Contributions of tangible capital assets are recorded at their fair value at the date of receipt and as contribution revenue.

c. Interest capitalization:

The District does not capitalize interest costs associated with the acquisition or construction of a tangible capital asset.

Inventories of Supplies

Inventories of supplies held for consumption are recorded on a first‐in‐first‐out basis.



Revenue Recognition

Tipping fees, levies, electricity sales, permits, user fees and other revenue are recognized as revenue on an accrual basis according to the usage and rates approved and set by the Board in various fees and charges bylaws.

Segmented Information

A segment is defined as a distinguishable activity or group of activities of a government for which it is appropriate to separately report financial information to achieve the objectives of the standard. Definitions of the District’s segments and their related financial information are presented in note 12.

Liability for Contaminated Sites

A liability for remediation of a contaminated site is recognized when the site is no longer in productive use and the following criteria are satisfied: an environmental standard exists; contamination exceeds the standard; the District is either directly responsible or has accepted responsibility for remediation; it is expected that future economic benefits will be given up and a reasonable estimate of the liability can be made.

Use of Estimates The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts in the financial statements and the disclosure of contingent liabilities. These estimates and assumptions are based on management’s best information and judgment and may differ from actual results. Adjustments, if any, will be reflected in the financial statements in the period that the change in estimate is made, as well as in the period of settlement if the amount is different.

Significant areas requiring the use of management’s judgment relate to the determination of landfill closure and post closure liability, contaminated sites liabilities and accrued liabilities, the useful lives of tangible capital assets and the assessment of all contingencies.


GREATER VANCOUVER SEWERAGE AND DRAINAGE DISTRICT Notes to Financial Statements, page 5 Year ended December 31, 2019 2. Debt Reserve Fund

The Municipal Finance Authority (“MFA”) provides financing for regional districts and member municipalities. The MFA is required to establish a Debt Reserve Fund for each debenture issue equal to one‐half the average annual installment of principal and interest. The debt reserve fund is comprised of cash deposits equal to 1% of the principal amount borrowed and a non‐interest bearing demand note for the remaining requirement. Cash deposits held by the MFA are payable with interest to the ultimate borrower when the final obligations under the respective loan agreements have been made.

If, at any time, the District has insufficient funds to meet payments due on its obligations to MFA, the payments will be made from the debt reserve fund. The demand notes are callable only if there are additional requirements to be met to maintain the level of the debt reserve fund. At December 31, 2019, $23,028,014 (2018 ‐ $20,903,563) in callable demand notes were outstanding and have not been recorded in the statement of financial position.

3. Accounts Payable and Accrued Liabilities

2019 2018

Trade accounts $ 121,722,697 $ 101,354,352Construction holdbacks 35,633,089 21,956,480Accrued interest on debt 5,144,072 4,816,065Other ‐ 143,432

$ 162,499,858 $ 128,270,329

4. Landfill Closure and Post‐Closure Liability

The District is responsible for its share of closure and post‐closure costs at four landfill sites as detailed below.

a) The Vancouver landfill is located in Delta, BC. In accordance with an agreement with the

City of Vancouver, the District is responsible for its proportionate share of the closure and post‐closure liability based on usage. The present value of the District’s estimated future liability for these expenses is recognized as the landfill site’s capacity is used and is as follows:

2019 2018

Opening Balance $ 31,709,200 $ 31,071,458Impact due to changes in:

Utilization 2,144,522 2,857,585Assumptions (2,475,339) (2,612,058)Discount rate 1,659,623 392,215

Closing balance $ 33,038,006 $ 31,709,200 Greater Vancouver Sewerage and Drainage District

GREATER VANCOUVER SEWERAGE AND DRAINAGE DISTRICT Notes to Financial Statements, page 6 Year ended December 31, 2019 4. Landfill Closure and Post‐Closure Liability (continued)

a) (continued) The closure and post‐closure liability and annual expense is calculated based on

the ratio of actual utilization to total expected utilization of the site’s capacity at the date of closure. It is based on estimates and assumptions with respect to events extending over the remaining life of the Vancouver landfill, including provisions contained in Metro Vancouver’s Integrated Solid Waste and Resource Management Plan. The significant estimates and assumptions adopted in measuring the District’s share of the closure and post‐closure liability are as follows:

2019 2018

Current actual utilization (in tonnes) 21,139,073 20,479,845Expected utilization at closure (in tonnes) 25,856,597 25,676,692Expected remaining capacity (in tonnes) 4,717,524 5,196,847Permitted capacity (in tonnes) 33,039,183 33,039,183Proportionate share of liability 32.8% 31.5%Discount rate 2.89% 3.03%Expected post‐closure period 30 years 30 yearsExpected closure date December 31, 2037 December 31, 2037

b) The Cache Creek landfill is located in the Village of Cache Creek, BC. The landfill permit obligates the Village of Cache Creek and a third party service provider to undertake closure and post‐closure activities. The District, in accordance with an agreement with the Village, was required to contribute quarterly to a trust fund, held with the Province of British Columbia, to a Post Closure Maintenance and Repair Fund at rates consistent with the operational certificate for the landfill. The agreement indemnifies the Village for any post closure liabilities which are not covered by this fund. At December 31, 2019, the trust had $16,091,490 (2018 ‐ $15,768,931).

The Cache Creek landfill was closed December 2016. The actual utilization at closure was 10,318,780 tonnes and the permitted capacity was 10,371,594 tonnes. The post‐closure period is expected to be 30 years. The discount rate used as at December 31, 2019 is 2.89% (2018 ‐ 3.03%). Based on this information, the present value of the District’s estimated future liability for closure and post‐closure is as follows:

2019 2018

Opening balance $ 15,768,931 $ 16,034,726 Impact due to change in:

Closure costs paid ‐ (612,000) Assumptions 322,559 346,205

Closing balance Less post‐closure fund

16,091,490 (16,091,490)

15,768,931 (15,768,931)

Closure liability $ ‐ $ ‐ Greater Vancouver Sewerage and Drainage District

GREATER VANCOUVER SEWERAGE AND DRAINAGE DISTRICT Notes to Financial Statements, page 7 Year ended December 31, 2019 4. Landfill Closure and Post‐Closure Liability (continued)

c) The Coquitlam and Port Mann landfills were closed in 1983 and 1997, respectively, and there are no further closure and post‐closure liabilities.

5. Deferred Revenue and Refundable Deposits

The deferred revenue reported on the statement of financial position consists of the following:

2019 2018

Development cost charges (a) $ 227,551,250 $ 311,593,932 Provincial grant to fund capital expenditures (b) 153,675,034 200,367,548 Refundable deposits 1,177,525 1,294,943 Total $ 382,403,809 $ 513,256,423

a) The GVS&DD Act restricts the District to applying money raised from development cost charges to funding sewer capital projects, including the repayment of debt raised to fund such projects. The balance of these amounts is included in deferred revenue until spent on approved purposes.

b) In 2018, the District received a grant from the Province of British Columbia in the amount of $193,000,000 for future costs associated with the construction of the new Lions Gate Wastewater Treatment Plant Facility. During 2019, $51,788,545, (2018 – $nil) was applied against the project.

Continuity of deferred revenue is as follows:

2019 2018

Balance, beginning of year $ 513,256,423 $ 484,863,174

Development cost charges received 60,239,104 28,117,415

Interest earned 13,203,226 10,968,234Change in refundable deposits (117,418) 67,407Amounts spent and recognized as revenue (204,177,526) (10,759,807)Change in deferred revenue (130,852,614) 28,393,249

Balance, end of year $ 382,403,809 $ 513,256,423

6. Debt

a) All borrowings for the District are obtained from MFA by the MVRD on the District’s behalf, although the District maintains the right to finance debt without MFA involvement.

Debt, debentures or other security issued by the District is a direct, joint and several obligation and liability of the District and each and every member municipality.

Debt servicing requirements comprising sinking fund contributions, serial repayments and interest are funded as incurred by revenue earned during the year. Greater Vancouver Sewerage and Drainage District

GREATER VANCOUVER SEWERAGE AND DRAINAGE DISTRICT Notes to Financial Statements, page 8 Year ended December 31, 2019 6. Debt (continued)

b) Debt (net of sinking funds) reported on the statement of financial position comprises the following and includes varying maturities up to 2033 with interest rates ranging from 1.75% to 4.20%.

Debentures Debenture debt

Issue Interest authorized outstandingnumber rate ‐ % Maturity Date to be issued 2019 2018

Sinking fund81 2.40 April 22, 2019 10,000,000$ ‐$ 10,000,000$ 99 1.75 October 19, 2021 10,000,000 10,000,000 10,000,000 104 2.90 November 20, 2023 15,000,000 15,000,000 15,000,000 106 2.25‐4.13 October 13, 2024 20,000,000 20,000,000 20,000,000 116 4.20 April 4, 2026 20,000,000 20,000,000 20,000,000 118 3.40 April 11, 2027 20,000,000 20,000,000 20,000,000 139 2.10 October 5, 2031 55,000,000 55,000,000 55,000,000 141 2.80 April 7, 2032 50,000,000 50,000,000 50,000,000 142 3.15 October 4, 2032 50,000,000 50,000,000 50,000,000 145 3.15 April 23, 2033 120,000,000 120,000,000 120,000,000 146 3.20 September 19, 2033 270,000,000 270,000,000 270,000,000 147 2.66 April 9, 2034 40,000,000 40,000,000 ‐ 149 2.24 October 9, 2034 46,000,000 46,000,000 ‐

Total debt 726,000,000$ 716,000,000$ 640,000,000$

Less sinking funds (89,710,185) (63,098,945)

Total net debt 626,289,815$ 576,901,055$

c) Principal payments and sinking fund installments due within the next five years and thereafter are as follows:

2020 $ 38,171,706 2021 38,171,706 2022 37,672,295 2023 37,672,295 2024 36,923,178 Thereafter 303,667,465 Sub‐total 492,278,645 Estimated sinking fund income 134,011,170 Total

$ 626,289,815

d) Sinking fund installments are invested by the MFA and earn income which, together with

principal payments, are expected to be sufficient to retire the sinking fund debt at maturity. For sinking fund agreements, the MFA has established either a normal sinking fund or a capital repayment equalization fund.


GREATER VANCOUVER SEWERAGE AND DRAINAGE DISTRICT Notes to Financial Statements, page 9


7. Tangible Capital Assets


GREATER VANCOUVER SEWERAGE AND DRAINAGE DISTRICT Notes to Financial Statements, page 10 Year ended December 31, 2019 8. Accumulated Surplus

Accumulated surplus consists of individual fund surplus and reserves as follows:

2019 2018

Reserves $ 111,482,905 $ 120,833,867Capital fund balance 103,306,665 205,267,250Investment in tangible capital assets 1,555,949,387 1,188,730,767 Total $ 1,770,738,957 $ 1,514,831,884

Capital fund balance represents the expected level of funding required.

Continuity of reserves is as follows:

December 31,

2018 Interest

Annual

Operating

Surplus

Contributions

from/ (to)

operations

Contributions

to Capital

December 31,

2019

Operating Reserves

Liquid Waste Services 21,317,995$ 487,609$ 8,901,207$ ‐$ (4,704,798)$ 26,002,013$ Solid Waste Services 16,002,695 387,568 (14,574,837) ‐ (1,675,292) 140,134

37,320,690$ 875,177$ (5,673,630)$ ‐$ (6,380,090)$ 26,142,147$

Discretionary Reserves

Biosolids Inventory 14,271,801 362,981 ‐ ‐ ‐ 14,634,782 Liquid Waste General Debt Reserve Fund 2,009,228 51,101 ‐ ‐ ‐ 2,060,329 Lions Gate Contingency 1,410,080 35,863 ‐ ‐ ‐ 1,445,943 Drainage General 5,432,954 138,178 ‐ (776,000) ‐ 4,795,132 Solid Waste General 32,298,078 604,884 ‐ ‐ ‐ 32,902,962 Landfill Post‐Closure 10,699,549 272,126 ‐ ‐ ‐ 10,971,675

66,121,690$ 1,465,133$ ‐$ (776,000)$ ‐$ 66,810,823$

Statutory Reserves

Liquid Waste Laboratory Equipment 573,178 15,819 ‐ 97,800 ‐ 686,797 Liquid Waste Services SustainabilityInnovation Fund 16,818,309 438,413 ‐ 586,416 ‐ 17,843,138

17,391,487$ 454,232$ ‐$ 684,216$ ‐$ 18,529,935$

Total Reserves 120,833,867$ 2,794,542$ (5,673,630)$ (91,784)$ (6,380,090)$ 111,482,905$


GREATER VANCOUVER SEWERAGE AND DRAINAGE DISTRICT Notes to Financial Statements, page 11 Year ended December 31, 2019 8. Accumulated Surplus (continued)

Investment in tangible capital assets is calculated as follows:

2019 2018

Tangible capital assets 2,182,239,202$ 1,765,631,822$ Amounts financed by:

Long‐term debt (626,289,815) (576,901,055) 1,555,949,387 1,188,730,767

Change in the investment in tangible capital assets

Acquisition of tangible capital assets 449,379,197 323,048,856 Disposal of tangible capital assets (3,301,017) (276,810) Amortization of tangible capital assets (29,470,800) (29,623,721)

416,607,380 293,148,325

Less funding of tangible capital assets

Sinking fund debt maturity 10,000,000 14,000,000 Sinking fund and debt retirement (34,020,281) (13,691,028) Sinking fund and debt retirement income (2,590,959) (2,490,357) Debenture debt issued 86,000,000 390,000,000 Debenture debt maturity (10,000,000) (14,000,000)

49,388,760 373,818,615

Change in investment in tangible capital assets 367,218,620 (80,670,290)

Investment in tangible capital assets, beginning of year 1,188,730,767 1,269,401,057

Investment in tangible capital assets, end of year 1,555,949,387$ 1,188,730,767$


GREATER VANCOUVER SEWERAGE AND DRAINAGE DISTRICT Notes to Financial Statements, page 12 Year ended December 31, 2019 9. Contractual Obligations and Rights

a) Contractual Obligations

i) As at December 31, 2019 the District had the following commitments outstanding related to capital projects in progress:

2019 2018

Authorized for outstanding projects $ 3,132,692,000 $ 2,630,136,377Expended at December 31 (1,158,074,049) (852,058,128) Commitment remaining $ 1,974,617,951 $ 1,778,078,249

ii) The District is committed under a number of lease agreements to make minimum annual payments. These agreements have varying terms, including two agreements, with annual payments of currently of $446,000 to perpetuity, with adjustments annually for CPI.

Amount2020 $ 1,947,9762021 1,869,9532022 1,900,8702023 1,932,4062024 1,964,5722025 ‐ 2029 10,328,331Total $ 19,944,108

b) Contractual Rights

The District is party to several lease agreements that are anticipated to provide it with future revenues. These agreements are with third parties with varying terms to 2021. Amounts anticipated to be received over the future years are as follows:

Amount2020 $ 633,7602021 90,838Total $ 724,598


GREATER VANCOUVER SEWERAGE AND DRAINAGE DISTRICT Notes to Financial Statements, page 13 Year ended December 31, 2019 10. Contingencies

Lawsuits As at December 31, 2019, there were various lawsuits pending against the District arising in the ordinary course of business. The District has retained legal counsel to defend against these lawsuits. Management is of the opinion that losses, if any, in connection with these lawsuits can be sufficiently funded by reserve funds or covered by insurance. Any ultimate losses will be accrued and recorded as expenses at the time the amounts are reasonably determinable.

Self Insurance Reserve

A self insurance reserve has been established within the MVRD to cover losses resulting from uninsured liability exposures of the District, other Metro Vancouver Districts and the MVHC.

Each year a review is undertaken to determine if it would be beneficial to purchase additional liability insurance. The District, other Metro Vancouver Districts and the MVHC transfer amounts to the reserve depending on the reserve's adequacy to cover retained liability risk. An estimate is made for all costs of investigating and settlement of claims annually and an adjustment is made to the fund to maintain an adequate balance to cover potential losses in excess of recorded liabilities. These estimates are changed as additional information becomes known during the course of claims settlement. Any likely losses would be expensed at the time the losses are known and the amounts are reasonably determinable.

Debt Reserve Fund

The MFA is required to establish a Debt Reserve Fund for each debenture which is comprised of cash deposits and a non‐interest bearing demand note (refer to note 2).

First Nations Negotiations

The District is currently involved in negotiations with First Nations regarding compensation for the use of their land on which District assets reside. The compensation associated with these negotiations cannot be reasonably determined at this time and therefore no liabilities have been recorded at December 31, 2019.


GREATER VANCOUVER SEWERAGE AND DRAINAGE DISTRICT Notes to Financial Statements, page 14 Year ended December 31, 2019 11. Budget Information

The annual budget presented in these financial statements is based upon the 2019 operating and capital budgets approved by the District’s Board in October 2018, with additional approval in May 2019 for adjustments to the budget as a result of the 2018 fiscal year end results. The budget is based on operational and capital expenditure requirements and their associated funding. Amortization is a non‐cash item that is not funded for budget purposes. Also, contributions to or from reserves and debt principal repayments are removed from the approved budget for financial statement presentation. The schedule below reconciles the approved budget to the budget figures reported in these financial statements. Capital expenditures of $654,060,000 were included in the capital budget approved by the Board.


GREATER VANCOUVER SEWERAGE AND DRAINAGE DISTRICT Notes to Financial Statements, page 15 Year ended December 31, 2019 12. Segmented Information and Expenses by Object

The District’s primary responsibilities are the collection, treatment and discharge of liquid waste for the municipalities of the MVRD and the disposal of solid waste both for the municipalities of the MVRD and the public. For management reporting purposes, the District’s operations and activities are organized and reported by these two primary areas of service.

The information reported in the segmented information does not include $10,695,038 (2018 ‐ $12,237,383) of salaries and benefits directly attributable to the construction of tangible capital assets which have been included in the cost of tangible capital assets in the Statement of Financial Position.

The services disclosed in the Segmented Information are as follows:

Liquid Waste Services

The Liquid Waste Services is responsible for the collection, treatment and discharge of liquid waste for member municipalities. It operates a number of wastewater treatment plants and a related collection network connected to the member municipalities’ systems.

Solid Waste Services

The Solid Waste Services is responsible for the disposal of solid waste both for the member municipalities and the public. It owns and operates several solid waste facilities including a waste to energy facility.


GREATER VANCOUVER SEWERAGE AND DRAINAGE DISTRICT Notes to Financial Statements, page 16 Year ended December 31, 2019 13. Subsequent Event

Subsequent to year end, the impact of COVID‐19 in Canada and on the global economy has been unprecedented. As the impacts of COVID‐19 continue, there could be further impact on the District, its members, employees, suppliers and other third party business associates that could impact the timing and amounts realized on the District’s assets and future ability to deliver services and projects. At this time, the full potential impact of COVID‐19 on the District is not known. Although the disruption from the virus is expected to be temporary, given the dynamic nature of these circumstances, the duration of disruption and the related financial impact cannot be reasonably estimated at this time. The District’s ability to continue delivering non‐essential services and employ related staff, will depend on the legislative mandates from the various levels of government. The District will continue to focus on collecting receivables, managing expenditures, and leveraging existing reserves and available credit facilities to ensure it is able to continue providing essential services to its citizens.



AND DRAINAGE DISTRICTSchedule 1

Schedule of Operating Fund (unaudited)


2019 2019 2018


Revenue

Sewerage and drainage levy to members 255,810,755$ 255,810,755$ 232,134,617$ Tipping fees 98,362,329 105,692,375 102,036,530 BODTSS Industrial Charges 11,022,967 11,219,515 11,265,803 Development cost charges 31,665,173 30,388,981 10,759,806 Electricity sales 5,927,304 5,793,404 5,584,341 Trucked liquid waste fees 1,096,167 1,219,798 1,157,301 Source control fees 1,207,102 1,201,837 1,357,501 User fees, recoveries and other revenue 3,508,134 5,173,321 4,511,565

408,599,931 416,499,986 368,807,464

Expenses

Liquid waste 153,892,479 141,411,698 135,552,763 Transfer to Other Districts for TCAs ‐ ‐ Liquid waste 153,892,479 141,411,698 135,552,763 Solid waste 95,194,793 123,715,227 103,505,884 Corporate costs 27,431,425 27,432,182 26,510,326 Interest on long‐term debt 22,815,617 16,807,502 10,758,934 Amortization of tangible capital assets ‐ ‐ ‐

299,334,314 309,366,609 276,327,907

Annual surplus, operating fund 109,265,617 107,133,377 92,479,557

Application of surplus and transfers

Transfers from (to):Capital (78,654,181) (78,878,510) (74,875,022) Investment in non‐financial assets ‐ ‐ ‐ Sinking and debt retirement funds (34,020,226) (34,020,281) (13,691,028) Reserve funds for:

Reserves ‐ Operating results (4,129,854) 5,673,630 (8,475,609) Reserves 7,538,644 91,784 4,562,102

Change in operating fund ‐ ‐ ‐

Operating fund, beginning of year ‐ ‐ ‐

Operating fund, end of year ‐$ ‐$ ‐$



AND DRAINAGE DISTRICTSchedule 2

Schedule of Capital Fund (unaudited)


2019 2019 2018


Revenue

Interest on debt reserve fund ‐$ 164,913$ 103,979$ Develoment cost charges 122,000,000 122,000,000 ‐ Other income ‐ 20,000 500,329 Grants and contributions 101,200,000 53,975,099 5,878,448

223,200,000 176,160,012 6,482,756

Expenses

Amortization of tangible capital assets 29,958,814 29,470,800 29,623,721 Loss on disposal of tangible capital asset ‐ 3,301,017 91,240

29,958,814 32,771,817 29,714,961

Annual deficit, capital fund 193,241,186 143,388,195 (23,232,205)

Tangible capital assets transactions

Acquisition of tangible capital assets 654,060,000 449,379,197 323,048,856 Amortization of tangible capital assets (29,958,814) (29,470,800) (29,623,721) Disposal of tangible capital assets ‐ (3,301,017) (276,810)

624,101,186 416,607,380 293,148,325

Financing

Debenture debt issued 466,101,021 86,000,000 390,000,000 Transfers from:Operating fund 78,654,181 78,878,510 74,875,022 Reserve funds 6,580,090 6,380,090 69,144,555

551,335,292 171,258,600 534,019,577

(72,765,894) (245,348,780) 240,871,252

Change in capital fund 120,475,292 (101,960,585) 217,639,047

Capital fund balance, beginning of year 205,267,250 205,267,250 (12,371,797)

Capital fund balance, end of year 325,742,542$ 103,306,665$ 205,267,250$


To: Liquid Waste Committee

From: Colin Meldrum, Acting Director, Project Delivery, Liquid Waste Services

Date: April 24, 2020 Meeting Date: May 14, 2020

Subject: Liquid Waste Services Capital Program Expenditure Update as at December 31, 2019

RECOMMENDATION That the GVS&DD Board receive for information the report dated April 24, 2020, titled “Liquid Waste Services Capital Program Expenditure Update as at December 31, 2019”.

EXECUTIVE SUMMARY The capital expenditure reporting process as approved by the Board provides for regular status reports on capital expenditures 3 times per year. This is the year-end report for 2019 which includes both the overall capital program for Liquid Waste Services with a multi-year view of capital projects and the actual capital spending for the 2019 fiscal year in comparison to the annual budget. In 2019, annual capital expenditures for Liquid Waste Services were $417.6 million compared to a capital budget of $564.8 million. The underspend is primarily due to delays to construction of two major projects and several projects in the pre-construction phases experiencing various delays.

Any surplus resulting from a 2019 underspend is used to directly fund capital in 2020 and avoid future borrowing.

PURPOSE To report on the status of the Liquid Waste Services’ capital program and financial performance for the year ending December 31, 2019.

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 Water, Liquid Waste, Zero Waste, and Performance and Audit Committees, in June/July and October/November, and a final year end report to the Committees and the Boards in April of each year.

This is the third in a series of three reports for 2019 and looks at both the overall capital program for Liquid Waste Services with a multi-year view of capital projects and the actual capital spending for the 2019 fiscal year in comparison to the annual budget.

2019 CAPITAL EXPENDITURES Capital Program Funding The capital spending for Liquid Waste Services is funded through the Liquid Waste Operating Budget by a combination of contribution to capital (pay-as-you-go funding) and debt service costs (principal and interest payments) which is generated annually from the regional ratepayers. As a result, the annual impact on the ratepayers is significantly less than the level of budgeted capital expenditures.

Section E 2.1


Liquid Waste Services Capital Program Expenditure Update as at December 31, 2019 Liquid Waste Committee Regular Meeting Date: May 14, 2020

Page 2 of 3

Any surplus resulting from a 2019 underspend is used to directly fund capital in 2020 and avoid future borrowing. Overall Capital Program The overall capital program for Liquid Waste includes capital projects which require multiple years to complete. These projects are broken down into various phases such as project definition, pre-design, detailed design and construction. With the completion of each phase more information is learned for the appropriate costing of subsequent phases. It is projected that the capital spending on all Liquid Waste capital projects completed in 2019 or ongoing at some point in 2019 will be under budget by $22.0 million, this is within 0.3% of budget. Table 1 in Attachment 1 provides a summary of Liquid Waste capital expenditures for both ongoing and completed projects. Completed Projects include a summary of actual spending compared to the Board approved spending limits while the Ongoing Projects include a summary of projected spending to completion compared to Board approved spending limits. With the rare exception, projects tend to complete with actual spending below the approved limits predominantly due to savings on budgeted contingency amounts. Attachment 2 provides the details behind the summary information including specific capital projects, summary financial information and notes are required. Attachment 3 provides additional project status information of some of the key projects included in Attachment 1 – Table 1. 2019 Capital Program Progress The Metro Vancouver financial planning process included Board approval of both an annual Operating Budget (operations, contribution to capital and debt service) and an annual Capital Budget for the planned capital infrastructure projects. The annual Capital Budget comprises the projected spending for a list of capital projects either continuing or to be started within the calendar year. In 2019, capital expenditures for Liquid Waste Services were $417.6 million compared to the annual capital budget of $564.8 million, representing an overall expenditure rate of 73.9%. The underspend is primarily due to construction delays with two major projects and several projects in the pre-construction phases experiencing various delays. These are the North Shore Secondary Wastewater Treatment Plant Upgrade and the various projects associated with the Northwest Langley Treatment Plant Upgrades. Both projects are proceeding. Table 2 in Attachment 1 provides a summary of the 2019 actual capital spending compared to the Board approved Capital Budget. ALTERNATIVES This is an information report. No alternatives are presented. FINANCIAL IMPLICATIONS Capital expenditures are funded internally (pay as you go) and through debt financing. As capital expenditures are incurred, short term financing is secured and converted twice per year to long term


Liquid Waste Services Capital Program Expenditure Update as at December 31, 2019 Liquid Waste Committee Regular Meeting Date: May 14, 2020

Page 3 of 3

debt through the Municipal Finance Authority. If capital expenditures are less than budgeted for the year, this surplus, per policy, will be used in future years to fund capital and avoid debt. CONCLUSION This is the final of three capital expenditure progress reports for 2019. Liquid Waste Services underspent its annual Capital Budget by $147.2 million. The variance is primarily due to delays to construction of two major projects and obtaining third party approvals in a timely manner. Although the 2019 Liquid Waste Services Capital Budget shows a year-end underspend, the variance is a result of cash flow timing. It is projected that in aggregate, ongoing capital projects will be close to or less than the overall budget for that project. Any surplus resulting from a 2019 underspend is used to directly fund capital in 2020 and avoid future borrowing. Attachments 1. Liquid Waste Services Capital Expenditure Summary as at December 31, 2019 2. Detailed Capital Expenditure Summary – Liquid Waste Services 3. Liquid Waste Services Capital Project Status Information 37070019


ATTACHMENT 1

Metro Vancouver Capital Expenditure Summary Liquid Waste Services As at December 31, 2019

Table 1 – Ongoing and Completed Project Summary

Total Projected to Completion

Total Budget Projected Variance

Liquid Waste Services Ongoing $ 6,625,968,000 $ 6,658,462,000 $ 32,494,000 Completed 101,580,000 91,074,000 (10,506,000) Not Started 575,255,000 575,255,000 ‐

$ 7,302,803,000 $ 7,324,791,000 $ 21,988,000

Table 2 – 2019 Capital Spending Summary

2019 Budget Actual

Expenditures to August 31, 2019

Liquid Waste Services Infrastructure Growth Capital $ 227,850,000 $ 210,064,211 Infrastructure Maintenance Capital 83,650,000 50,308,293

Infrastructure Resilience Capital 33,100,000 18,592,707 Infrastructure Upgrade – Advanced Treatment Capital 182,100,000 118,872,946 Infrastructure Upgrade Capital 28,550,000 15,953,141 Opportunity Capital 9,600,000 3,820,523

$ 564,850,000 $ 417,611,821


Metro Vancouver

Liquid Waste Services Capital Expenditures Summary

As of December 31, 2019 January ‐ February

578 579 580

Total Total Projected Project

Project Expenditures Remaining Projected Remaining Percent on

Project Project Location Budget to Date Budget Expenditures Budget Complete Status Schedule? Note Comments

Infrastructure Growth Capital

AIWWTP Site Construction Layout Delta 600,000 65,943 534,057 600,000 ‐ 11% Ongoing N Delayed start to earlier phase.Albert Street Trunk Sewer Port Moody 5,550,000 2,682,537 2,867,463 5,550,000 ‐ 48% Ongoing YAnnacis Outfall System Delta 378,000,000 59,275,888 318,724,112 378,000,000 ‐ 16% Ongoing YAnnacis Stage 5 Expansion Phase 1 T1 & T2 Delta 243,500,000 241,078,656 2,421,344 243,500,000 ‐ 99% Ongoing YAnnacis Stage 5 Expansion Phase 2 Delta 22,000,000 16,065,401 5,934,599 22,000,000 ‐ 73% Ongoing YAnnacis Stage 5 Expansion Phase 2a Delta 180,000,000 125,111,983 54,888,017 180,000,000 ‐ 70% Ongoing YAnnacis Stage 5 Expansion Phase 2b Delta 150,000,000 12,755,206 137,244,794 150,000,000 ‐ 9% Ongoing YAnnacis Stage 5 Expansion Phase 2c Delta 90,000,000 ‐ 90,000,000 90,000,000 ‐ 0% Not Started N Construction anticipated to start in Q1 2020 due to site

congestion Burnaby Lake North Interceptor Cariboo Section Burnaby 41,000,000 ‐ 41,000,000 41,000,000 ‐ 0% Not Started N Delayed to prioritize the Winston (upstream) section.Burnaby Lake North Interceptor Winston Section Burnaby 116,950,000 3,369,328 113,580,672 106,950,000 10,000,000 3% Ongoing Y (1)Burnaby South Slope Interceptor Main Branch Burnaby 9,500,000 ‐ 9,500,000 9,500,000 ‐ 0% Not Started YBurnaby South Slope Interceptor West Branch Extension Burnaby 13,200,000 ‐ 13,200,000 13,200,000 ‐ 0% Not Started YCloverdale Pump Station Capacity Upgrade Surrey 31,100,000 201,565 30,898,435 31,100,000 ‐ 1% Ongoing N Slight delay to determine scope of upgradesCloverdale Trunk Sewer Capacity Upgrade Surrey 29,000,000 ‐ 29,000,000 29,000,000 ‐ 0% Not Started YCollingwood Trunk Sewer Vancouver 5,415,000 5,420,437 (5,437) 5,492,000 (77,000) 100% Completed Y Final restoration resulted in budget exceedance.Glenbrook Combined Trunk Kingsway Sanitary Section Burnaby 3,000,000 153,978 2,846,022 3,000,000 ‐ 5% Ongoing YGolden Ears Forcemain and River Crossing Maple Ridge 86,000,000 4,364,048 81,635,952 83,989,000 2,011,000 5% Ongoing Y (1)(2)Golden Ears Pump Station Maple Ridge 50,200,000 3,160,130 47,039,870 50,200,000 ‐ 6% Ongoing YGolden Ears SSO Storage Maple Ridge 51,500,000 4,583,714 46,916,286 37,358,000 14,142,000 9% Ongoing Y (1)(2)Hastings Sanitary Trunk Sewer Burnaby 15,031,000 11,106,074 3,924,926 13,031,000 2,000,000 74% Ongoing Y (1)(2)Hastings Sanitary Trunk Sewer No. 2 Burnaby 20,000,000 6,236,464 13,763,536 12,000,000 8,000,000 31% Ongoing Y (1)(2)Hastings‐Cassiar Intake Connection Vancouver 750,000 77,933 672,067 2,350,000 (1,600,000) 10% Ongoing N (6) Project delayed to confirm scope and consider improved

functionality.Lozells Sanitary Trunk Golf Course Section Burnaby 27,650,000 ‐ 27,650,000 27,650,000 ‐ 0% Not Started N (3)(4) Project delayed to confirm scope of replacement and

potential alternate alignments.Lulu Island WWTP Digester No 3 Richmond 53,300,000 1,392,114 51,907,886 53,300,000 ‐ 3% Ongoing N (4) Scope review under way.Marshend Pump Station Capacity Upgrade Burnaby 10,025,000 475,122 9,549,878 13,775,000 (3,750,000) 5% Ongoing N (6) Project delayed to confirm scope.NLWWTP Clarifiers Langley Township 64,300,000 54,039,594 10,260,406 54,039,000 10,261,000 100% Completed Y (1)(2)NLWWTP Ground Improvements Langley Township 83,000,000 22,524,084 60,475,916 83,000,000 ‐ 27% Ongoing YNLWWTP Outfall Langley Township 159,000,000 ‐ 159,000,000 159,000,000 ‐ 0% Not Started N Scheduled to start in 2020NLWWTP Property Purchase Langley Township 12,000,000 ‐ 12,000,000 12,000,000 ‐ 0% Not Started N Scheduled to start in 2021NLWWTP Stage 1 Langley Township 889,000,000 4,605,124 884,394,876 889,000,000 ‐ 1% Ongoing YNorth Road Trunk Sewer Coquitlam 7,675,000 3,032,546 4,642,454 11,675,000 (4,000,000) 40% Ongoing Y (6)(8)North Road Trunk Sewer Phase 2 Coquitlam 3,938,000 691,196 3,246,804 3,938,000 ‐ 18% Ongoing N Project construction deferred until 2022‐2023.North Vancouver Interceptor ‐ Lynn Branch Pre‐build Dist of North Van 3,950,000 292,209 3,657,791 3,950,000 ‐ 7% Ongoing YNSI Flow Management Surrey 42,500,000 4,209,782 38,290,218 63,200,000 (20,700,000) 10% Ongoing N (6) Project delayed to improve scope definition and delivery

method.Port Moody Pump Station Capacity Upgrade Port Moody 9,755,000 455,619 9,299,381 10,550,000 (795,000) 5% Ongoing N (6) Project delayed to confirm scope.Port Moody South Interceptor Capacity Upgrade Port Moody 3,450,000 ‐ 3,450,000 3,450,000 ‐ 0% Not Started YRosemary Heights Pressure Sewer Capacity Upgrade Surrey 10,750,000 ‐ 10,750,000 10,750,000 ‐ 0% Not Started YSapperton Forcemain Pump Station Connections New Westminster 10,000,000 10,035,474 (35,474) 10,036,000 (36,000) 100% Completed YSapperton Pump Station New Westminster 82,003,000 64,358,190 17,644,810 73,003,000 9,000,000 78% Ongoing N (1) Project experiencing minor delays due to construction

issues. Commissioning expected in Q4 2020.South Surrey Interceptor Johnston Section Surrey 66,176,000 46,736,833 19,439,167 84,026,000 (17,850,000) 71% Ongoing N (6) Final section delayed due to protracted property and

permitting issues.Sperling PS Increase Pump Capacity Burnaby 3,150,000 2,805,027 344,973 2,590,000 560,000 89% Ongoing Y (2)SSI ‐ King George Section ‐ Odor Control Facility (OCF) and Grit Chamber Surrey 19,500,000 8,671,080 10,828,920 18,300,000 1,200,000 44% Ongoing N (1)(2) Project is proceeding at a slower pace than expected due to

construction issues.Surrey Central Valley Capacity Upgrade Surrey 60,800,000 ‐ 60,800,000 60,800,000 ‐ 0% Not Started Y Scheduled to start in 2021.

3,164,218,000 720,033,280 2,444,184,720 3,155,852,000 8,366,000

Infrastructure Maintenance Capital

AIWWTP Fibre Optic Infrastructure Delta 1,500,000 128,621 1,371,379 1,500,000 ‐ 9% Ongoing YAIWWTP Gravity Thickner and DAF Steel Repair and Recoating Delta 2,000,000 1,796,275 203,725 1,800,000 200,000 90% Ongoing Y (2)AIWWTP Influent System Remediation Delta 82,600,000 127,408 82,472,592 82,600,000 ‐ 0% Ongoing YAIWWTP IPS Pump Building Roof Replacement Phase 2 Delta 830,000 ‐ 830,000 830,000 ‐ 0% Not Started N (4) Deferred to 2024 based on results of detailed condition

assessment.AIWWTP Outfall Repair Delta 2,300,000 ‐ 2,300,000 2,300,000 ‐ 0% Not Started N (4) Scope review underway to account for new inspection

information.AIWWTP Replacement of ICS Equipment in Galleries Delta 2,895,000 1,419,740 1,475,260 2,895,000 ‐ 49% Ongoing YAIWWTP Scheduled 64kV Potential & Current Transformer Replacements Delta 800,000 ‐ 800,000 800,000 ‐ 0% Not Started N Anticipated to start in 2020.AIWWTP SCL Flow Balancing Delta 2,450,000 913,895 1,536,105 2,450,000 ‐ 37% Ongoing Y

Lifetime

2019 LWS Capital Expenditure Summary ‐ December / Lifetime FD602 Liquid Waste Page 1 of 4 3/24/2020

ATTACHMENT 2


Metro Vancouver



578 579 580




Lifetime

AIWWTP SCL Flow Control Delta 63,500,000 1,906,335 61,593,665 31,500,000 32,000,000 3% Ongoing Y (1)(2)AIWWTP Secondary Effluent Discharge Flowmeter Replacement Delta 400,000 32,839 367,161 400,000 ‐ 8% Ongoing YAIWWTP Spare Trickling Filter Pump & Motor Purchase Delta 1,950,000 ‐ 1,950,000 1,950,000 ‐ 0% Not Started N (3)AIWWTP Station Battery Replacement ‐ PHASE 2 Delta 400,000 59,003 340,997 400,000 ‐ 15% Ongoing YAIWWTP Trickling Filter Media & Distributor Arms & Ducting Replacement Delta 57,900,000 504,244 57,395,756 57,900,000 ‐ 1% Ongoing YAnnacis Island WWTP ‐ ICS Component Replacement and Upgrade Program Delta 1,500,000 1,031,246 468,754 1,500,000 ‐ 69% Ongoing YAnnacis MCC 80 051, 80 070, 80 071 Replacement Delta 2,844,000 1,662,571 1,181,429 2,844,000 ‐ 58% Ongoing YAnnacis Secondary Clarifier Corrosion Repair Delta 2,534,000 1,941,316 592,684 1,941,000 593,000 100% Completed Y (2)Annacis Secondary Clarifier Corrosion Repair and Leveling Phase 2 Delta 22,000,000 7,809,163 14,190,837 22,000,000 ‐ 35% Ongoing YBig Bend Forcemain ‐ Gate Replacement Richmond 2,680,000 70,209 2,609,791 2,680,000 ‐ 3% Ongoing YCambie Trunk Sewer Relocation for Broadway Subway Project Vancouver 4,500,000 ‐ 4,500,000 4,500,000 ‐ 0% Not Started N Project scope under review.Combined Sewer Overflow Sampling Station Enhancements Regional 1,900,000 82,947 1,817,053 1,900,000 ‐ 4% Ongoing YCost Allocation Billing Network (Combined 96 F4) Regional 5,230,000 5,098,591 131,409 5,230,000 ‐ 97% Ongoing YCrescent Beach FM ‐ Replacement Surrey 21,515,000 1,808,895 19,706,105 21,515,000 ‐ 8% Ongoing YEnglish Bay/Balaclava Outfalls Improvement Vancouver 900,000 ‐ 900,000 900,000 ‐ 0% Not Started N Scheduled to start in 2021.FSA Flow Metering Program Regional 2,700,000 563,955 2,136,045 2,700,000 ‐ 21% Ongoing YGilbert/Brighouse Trunk Pressure Sewer Rehab Phase 5 Richmond 23,200,000 ‐ 23,200,000 23,200,000 ‐ 0% Not Started N Scheduled to start in 2023.Gilbert/Brighouse Trunk Pressure Sewer Twinning Phase 2 Richmond 50,501,000 31,803,624 18,697,376 50,501,000 ‐ 63% Ongoing YGilbert/Brighouse Trunk Pressure Sewer Twinning Phase 3 Richmond 44,400,000 11,570,027 32,829,973 44,400,000 ‐ 26% Ongoing YGilbert/Brighouse Trunk Pressure Sewer Twinning Phase 4 Richmond 41,400,000 1,010,031 40,389,969 41,400,000 ‐ 2% Ongoing YGlen Eagles Forcemains Replacement Phase 2 West Vancouver 7,750,000 174,187 7,575,813 7,750,000 ‐ 2% Ongoing YGlen Eagles Pump Stations Phase 1 West Vancouver 17,500,000 361,580 17,138,420 17,500,000 ‐ 2% Ongoing YGlen Eagles Pump Stations Phase 2 West Vancouver 25,000,000 ‐ 25,000,000 25,000,000 ‐ 0% Not Started YHarbour West & East Interceptors Reloc & Protect Vancouver 19,500,000 656 19,499,344 19,500,000 ‐ 1% Ongoing YIIWWTP Digester 4 Roof Replacement & Mixing Replacement Richmond 24,800,000 13,302,032 11,497,968 24,800,000 ‐ 54% Ongoing YIIWWTP Grit System Refurbishment Richmond 8,100,000 7,490,139 609,861 8,100,000 ‐ 92% Ongoing YIIWWTP HVAC upgrade Richmond 2,095,000 2,017,702 77,298 2,018,000 77,000 100% Completed Y (2)IIWWTP ICS IPS Control Replacement Richmond 1,750,000 ‐ 1,750,000 1,750,000 ‐ 0% Not Started YIIWWTP Influent Gate Refurbishment Richmond 1,350,000 151,171 1,198,829 1,350,000 ‐ 11% Ongoing YIIWWTP Maintenance and Administration Building HVAC Richmond 550,000 442,054 107,946 442,000 108,000 100% Completed Y (2)IIWWTP MCC/Power Distribution Assess/Replace ‐ Phase 2 Richmond 1,000,000 595,292 404,708 800,000 200,000 60% Ongoing Y (2)IIWWTP PA‐Sed Tank & Gallery Wall Refurbishment Richmond 1,375,000 ‐ 1,375,000 1,375,000 ‐ 0% Not Started N Work delayed to confirm scope of repair.IIWWTP Replacement of CoGen Control System Richmond 2,470,000 942,950 1,527,050 2,470,000 ‐ 38% Ongoing YIIWWTP Sed Tank Trough Replacement Richmond 1,600,000 1,498,627 101,373 1,499,000 101,000 100% Completed Y (2)IIWWTP Siphon Chamber Refurbishment Richmond 2,200,000 ‐ 2,200,000 2,200,000 ‐ 0% Not Started N Project delayed to allow improved coordination of other

related works and improve safe operating conditions for work site.

IIWWTP Solids Handling Refurbishment Richmond 30,500,000 29,987,867 512,133 30,436,000 64,000 98% Ongoing Y (2)IIWWTP Water Supply Richmond 6,500,000 78,954 6,421,046 6,500,000 ‐ 1% Ongoing N (4) Project will proceed in approximately 5yrs when YVR plans

to realign Ferguson Rd northward.Iona Island Control & Instrumentation Replacement 2011 Richmond 2,750,000 1,933,079 816,921 2,750,000 ‐ 70% Ongoing YIona MCC/Power Distribution Assess/Replace 2010 Richmond 953,000 788,484 164,516 803,000 150,000 83% Ongoing Y (2)Iona MCC/Power Distribution Assess/Replace Future Years Richmond 1,965,000 1,304,442 660,558 1,350,000 615,000 66% Ongoing Y (2)Lions Gate Control and Instrumentation Replacement 2011 West Vancouver 600,000 193,907 406,093 214,000 386,000 100% Completed Y (7)LIWWTP ‐ Process Waste Drainage (PWD) Replacement Richmond 600,000 541,082 58,918 541,000 59,000 100% Completed Y (2)LIWWTP CCT Isolation Gates Richmond 2,050,000 182,687 1,867,313 2,050,000 ‐ 9% Ongoing YLIWWTP Fibre Optic Infrastructure Richmond 600,000 345,317 254,683 600,000 ‐ 58% Ongoing YLIWWTP High Efficiency Boiler Richmond 730,000 57,535 672,465 730,000 ‐ 8% Ongoing N (4) Deferred to after Biogas Cleanup Project is completed and

in operation.LIWWTP ICS Component Replacement Richmond 360,000 269,986 90,014 360,000 ‐ 75% Ongoing YLIWWTP PA‐Sed Tank Refurbishment Richmond 4,115,000 16,584 4,098,416 4,115,000 ‐ 0% Ongoing YLSA Flow Metering Program Richmond 300,000 76,399 223,601 300,000 ‐ 25% Ongoing YMarshend PS Rehab Burnaby 7,000,000 814,200 6,185,800 7,000,000 ‐ 12% Ongoing N Project delayed to confirm scope.

New West Interceptor Grit Chamber New Westminster 8,250,000 214,125 8,035,875 8,250,000 ‐ 3% Ongoing YNew Westminster Interceptor Repair Columbia St. Section New Westminster 10,882,000 977,886 9,904,114 10,882,000 ‐ 9% Ongoing YNLWWTP Screw Pump Replacement Langley City 1,550,000 67,455 1,482,545 1,550,000 ‐ 4% Ongoing YNSA Flow Metering Program West Vancouver 300,000 90,256 209,744 300,000 ‐ 30% Ongoing YNSI Rehab or Replacement Surrey 24,750,000 629,013 24,120,987 24,750,000 ‐ 3% Ongoing N Project delayed to improve scope definition, and

coordination with other works.NWI ‐ Annacis Section 2 Improvement Delta 45,000,000 222,854 44,777,146 45,000,000 ‐ 1% Ongoing N Project delayed to improve scope definition, and

coordination with other works.NWL WWTP 25 kV Substation Replacement Langley Township 10,025,000 3,508,559 6,516,441 9,475,000 550,000 35% Ongoing Y (1)NWL WWTP ICS System Hardware Upgrade Langley Township 1,500,000 1,415,894 84,106 1,500,000 ‐ 94% Ongoing YOcean Park Trunk Crescent Section (OPC) Pipe Rehabilitation/Replacement Surrey 403,000 218,708 184,292 403,000 ‐ 54% Ongoing N Property acquisition delays.Ocean Park Trunk Manholes Lining Surrey 550,000 ‐ 550,000 550,000 ‐ 0% Not Started Y

2019 LWS Capital Expenditure Summary ‐ December / Lifetime FD602 Liquid Waste Page 2 of 4 3/24/2020Greater Vancouver Sewerage and Drainage District

Metro Vancouver



578 579 580




Lifetime

Royal Ave PS Rehabilitation New Westminster 4,218,000 1,070,366 3,147,634 6,740,000 (2,522,000) 25% Ongoing N (4)(6) Scope to be reviewed pending final result of hydraulic study.

Sewer Relocations and Protections at Fraser Surrey Docks Surrey 24,200,000 ‐ 24,200,000 24,200,000 ‐ 0% Not Started N Scheduled to start in 2020.Sewer Relocations and Protections for Pattullo Bridge Replacement Project New Westminster 7,000,000 ‐ 7,000,000 7,000,000 ‐ 0% Not Started N Project start based on 3rd party bridge contractor.South Surrey Interceptor Fraser River Crossing Scour Protection Delta 2,200,000 3,107,363 (907,363) 3,127,000 (927,000) 141% Ongoing Y (8)Surrey Corrosion Control Facility Replacement Surrey 2,900,000 121,060 2,778,940 2,900,000 ‐ 4% Ongoing N Project delayed to resolve siting issues.VSA Flow Metering Program Regional 3,200,000 227,391 2,972,609 3,200,000 ‐ 7% Ongoing YWestridge FM Replacement Burnaby 3,650,000 331,129 3,318,871 3,450,000 200,000 9% Ongoing Y (9)Westridge Pump Stations 1 & 2 Refurbishment Burnaby 15,950,000 243,118 15,706,882 15,950,000 ‐ 2% Ongoing YWWTPs Electrical System Studies & Upgrades Regional 750,000 ‐ 750,000 750,000 ‐ 0% Not Started N (4) Awaiting completion of AI Stage 5 Ph1 and AI Cogen

projects studies.790,670,000 147,353,025 643,316,975 758,816,000 31,854,000

Infrastructure Resilience Capital

AIWWTP 69 kV Substation Modifications Delta 8,500,000 154,793 8,345,207 2,750,000 5,750,000 2% Ongoing Y Project under expenditure as BC Hydro requirements less than anticipated.

AIWWTP Automation of Influent Gates Delta 3,700,000 3,583,620 116,380 3,700,000 ‐ 97% Ongoing YAIWWTP Cogeneration Backup Power Delta 75,003,000 61,628,588 13,374,412 70,277,000 4,726,000 95% Ongoing Y (1)(2)AIWWTP PST Area Walkway & Column Remediation Delta 3,100,000 1,193,768 1,906,232 3,100,000 ‐ 39% Ongoing YFSA Easement Acquisition Regional 1,500,000 1,161,122 338,878 1,500,000 ‐ 77% Ongoing Y (3)FSA Sewer Seismic Upgrades Implementation Regional 187,100,000 551,886 186,548,114 187,100,000 ‐ 1% Ongoing N (4) On hold until completion of work plan.Highbury Interceptor Air Treatment Facilities Vancouver 11,500,000 11,385,072 114,928 12,000,000 (500,000) 99% Ongoing N Budget shortfall and project delays due to construction

related issues.IIWWTP ‐ Biogas Lines Relocation Richmond 5,780,000 2,143,579 3,636,421 5,780,000 ‐ 37% Ongoing YIIWWTP Standby Diesel Generators Richmond 8,500,000 2,126 8,497,874 8,500,000 ‐ 1% Ongoing YLIWWTP Power Reliability Richmond 5,702,000 562,506 5,139,494 8,257,000 (2,555,000) 10% Ongoing Y (6)Ocean Park Trunk Crescent Section (OPC) Pipe Rehabilitation/Replacement Surrey 4,550,000 ‐ 4,550,000 4,550,000 ‐ 0% Not Started N Property acquisition delays.SSI Sulfide Odour and Corrosion Control Delta 7,700,000 837,267 6,862,733 7,700,000 ‐ 11% Ongoing YVSA Easement Acquisition Program Vancouver 670,000 458,784 211,216 670,000 ‐ 68% Ongoing Y (3)VSA Emergency Backup Power Vancouver 20,510,000 4,431,409 16,078,591 24,310,000 (3,800,000) 22% Ongoing Y (6)

343,815,000 88,094,519 255,720,481 340,194,000 3,621,000

Infrastructure Upgrade ‐ Advanced Treatment Capital

Iona Secondary Treatment Upgrade Richmond 1,904,500,000 10,334,580 1,894,165,420 1,904,500,000 ‐ 1% Ongoing Y (5)North Shore WWTP Secondary Upgrade and Conveyance Dist of North Van 777,900,000 145,403,298 632,496,702 777,900,000 ‐ 19% Ongoing Y (5)Property Rights Dist of North Van ‐ 22,000,000 (22,000,000) 22,000,000 (22,000,000) 100% Completed Y

2,682,400,000 177,737,878 2,504,662,122 2,704,400,000 (22,000,000)

Infrastructure Upgrade Capital

8th Avenue Interceptor Air Treatment Facilities Vancouver 14,200,000 257,716 13,942,284 14,200,000 ‐ 2% Ongoing Y (4) Pre‐design in progress with construction deferred beyond 10 year capital plan.

AIWWTP Ammonia Removal – Sidestream Delta 112,900,000 733,551 112,166,449 112,900,000 ‐ 1% Ongoing Y (4) Continuing with data collection with more analyses in 2022 to confirm study results.

AIWWTP DAF Polymer Building Replacement Regional 550,000 433,180 116,820 550,000 ‐ 79% Ongoing YAIWWTP Electrical Distribution System Protection Control and Monitoring Delta 2,650,000 18,059 2,631,941 2,650,000 ‐ 1% Ongoing YAIWWTP Replacement of Protective Relays Delta 3,258,000 1,887,575 1,370,425 3,258,000 ‐ 58% Ongoing YAIWWTP Secondary Bypass Delta 1,725,000 1,512,028 212,972 1,550,000 175,000 88% Ongoing Y (2)All WWTPs Power Quality Monitoring & Outage Alarming Network Regional 2,870,000 1,195,545 1,674,455 2,870,000 ‐ 42% Ongoing YBiosolids Dryer Langley City 14,700,000 ‐ 14,700,000 14,700,000 ‐ 0% Not Started N Property purchase delayed.FSA Wastewater Meter Upgrades Regional 600,000 585,262 14,738 600,000 ‐ 98% Ongoing YGlenbrook Combined Trunk Sewer Separation New Westminster 74,950,000 136,183 74,813,817 74,950,000 ‐ 1% Ongoing YIIWWTP Biosolids Dewatering Facility Richmond 61,300,000 15,516,743 45,783,257 61,300,000 ‐ 25% Ongoing YIIWWTP Provision of a Redundant 12.5 kV Feeder to Switch House Richmond 850,000 265,437 584,563 300,000 550,000 31% Ongoing Y (1)(2)Lions Gate SludgeLions Gate Sludge Thickener No. 2 West Vancouver 3,380,000 3,358,080 21,920 3,358,000 22,000 100% Completed Y (2)LIWWTP Ammonia Removal Richmond 600,000 199,949 400,051 600,000 ‐ 33% Ongoing Y (4) Continuing with data collection with more analyses in 2022

to confirm study results.New CSO Management Gates for New Westminster Interceptor New Westminster 5,925,000 62,629 5,862,372 5,925,000 ‐ 1% Ongoing YNSSA Wastewater Meter Upgrades Regional 300,000 83,920 216,080 300,000 ‐ 28% Ongoing YSperling Pump Station Upgrade Burnaby 7,500,000 7,091,577 408,423 7,500,000 ‐ 95% Ongoing YSSI Influent Control Chamber Repair and Replace Gates Delta 1,305,000 13,554 1,291,446 1,305,000 ‐ 1% Ongoing YVSA Wastewater Meter Upgrades Vancouver 464,000 389,074 74,926 464,000 ‐ 84% Ongoing YWWTPs Electrical System Studies & Upgrades Regional 1,150,000 ‐ 1,150,000 1,150,000 ‐ 0% Not Started Y Project scheduled to start in 2021

311,177,000 33,740,062 277,436,938 310,430,000 747,000

Opportunity Capital


Metro Vancouver



578 579 580




Lifetime

AIWWTP Hydrothermal Processing Pilot Delta 8,980,000 199,559 8,780,441 8,980,000 ‐ 2% Ongoing YFraser Sewerage Area Integrated Resource Recovery (IRR) Study Regional 1,200,000 ‐ 1,200,000 1,200,000 ‐ 0% Not Started YLIWWTP Biogas Clean‐up Project Richmond 12,331,000 4,391,280 7,939,720 12,331,000 ‐ 36% Ongoing YLIWWTP Pilot Digestion Optimization Facility Richmond 2,500,000 639,947 1,860,053 3,100,000 (600,000) 26% Ongoing Y (6)North Surrey Interceptor ‐ Port Mann Section ‐ Odour Control Surrey 7,500,000 98,647 7,401,353 7,500,000 ‐ 1% Ongoing Y

32,511,000 5,329,433 27,181,567 33,111,000 (600,000)

7,324,791,000 1,172,288,197 6,152,502,803 7,302,803,000 21,988,000

Notes:

(1) Project will be completed under budget ‐ savings due to competitive pricing.(2) Full contingency not required.(3) Funds will be spent if/when opportunity arises.(4) Project on hold.(5) Separate quarterly status reports for the Secondary Wastewater Treatment Upgrade projects are being provided to the Liquid Waste Committee and Board.(6) Additional budget included in 2020 Capital Plan.(7) No further control system upgrade work is anticipated at Lions Gate WWTP as a new North Shore Secondary Wastewater Treatment Plant is being built to replace it.(8) Project over budget due to tender price higher than engineer's estimate.(9) Design work done in house resulting in lower cost.

Grand Total Liquid Waste Services


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ATTACHMENT 3

Capital Project Status Information

December 31, 2019

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:

Infrastructure Growth Program

• FSA – Albert Street Trunk Sewer – The construction contract for Phase 1 of this project involves700 m of new sewer along Seaforth Drive in Port Moody. It was awarded in June 2019. The projectwas completed in October 2019. Final paving was delayed until spring 2020. Phase 2 design isunderway. Targeting Q4 2020 construction start, however, it is dependent on the completion ofproperty negotiations.

• FSA – Burnaby Lake North Interceptor (also known as the Winston Street Sewer) – Phase 1 of thesewer twinning along Lougheed Highway west of Sperling Street is complete. Phase 2 and 3, withdiameters of 1050 mm to 1800 mm, involves 2 km of tunneled sewer and 1.2 km of open cut sewer,and will be located along Winston Street from Sperling to east of Piper Street. The open cut portionof the work was tendered in early December 2019 with award targeted for February 2020. Thetunneling portion of the work will be tendered in Q4 of 2020. Construction is scheduled to becomplete in 2022. Phase 4, which continues to Cariboo Street, will be completed at a later date.

• FSA – North Road Trunk Sewer – This project will provide additional sewer capacity to the growingarea near Lougheed Mall and Burquitlam in the Cities of Burnaby and Coquitlam. The constructioncontract for Phase 1 of this project involves 800 m of new sewer along North Road from BrunetteRiver to north of the Lougheed highway. The main construction contract was awarded in June 2019.As of the end of December, the contractor is 33% complete and is projected to reach substantialcompletion in May 2020. Following the completion of the open cut sewer works, a second contractto build a pipe bridge spanning the BNSF Railway will be issued subject to resolving property andpermitting requirements. Phase 2, which involves extending the sewer north of Lougheed Highwayto Clarke Road is scheduled for construction in 2022.

• FSA – South Surrey Interceptor Twinning Johnston Road Section – This project involvesconstruction of approximately 2.2 km of 3 m diameter corrosion resistant sewer, to provideadditional capacity to service Surrey and Langley. Construction of the twinning started in 2015, andis being completed in 5 separate construction contracts. The first two contracts consisted of 1.1 kmof open cut sewer from King George Boulevard to Panorama Drive. The third contract involved 820m of tunnel and was awarded in April 2018 and substantially completed in mid‐December, 2019.Some minor restoration work is to be completed in spring of 2020. The last two contracts, involving220 m of open cut and a large junction chamber, are scheduled to be tendered in 2020 and 2021respectively. Total project completion is anticipated to be reached in 2022.


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• FSA – South Surrey Interceptor – King George Section Odour Control Facility (OCF) and Grit Chamber. This project involves three separate installations: two odour control facilities (at King George Boulevard near 56 Ave in Surrey and at Highway 10 and Highway 91 in Delta) and a grit chamber at the King George location. The grit chamber portion of this project is complete and in service. The contractor has procured the equipment and started construction of the Highway 91 OCF. Construction of the King George facility will start upon receipt of all required permits, expected in early 2020. Commissioning of the two odour control facilities is scheduled for the summer of 2020, and spring 2021.

• FSA – Sapperton Pump Station – FSA – Sapperton Pump Station – The construction contract was

awarded in September 2016 and is expected to be substantially complete in 2020. Construction is currently 92% complete, with the pump station building almost finished and landscaping work underway. Final electrical work nearing completion for BC Hydro energization in the summer and pump commissioning activities to follow.

• FSA – Annacis Island WWTP Stage 5 Expansion Phase 1 – This work involves expansion of

treatment process units including primary sedimentation tanks, secondary clarifiers, solid contact tanks and odour control facilities. The $253 million construction contract was awarded to Graham and AECON Joint Venture in April 2017. Construction of the Phase 1 main contract is 85% completed and the anticipated substantial completion date is September 2021.

• FSA – Annacis Island WWTP Outfall – This project involves the construction of a new outfall with

increased capacity to support population growth. The 4.2 m diameter outfall will be tunneled at a depth of approximately 40 m, and convey treated effluent approximately 1 km from the Plant to the Fraser River where it will discharge from a 2.5 m diameter, 250 m long diffuser manifold buried in the river bed. The construction contract was awarded on May 24, 2019 to Pomerleau‐Bessac General Partnership in the amount of $184M, and the notice to proceed letter was issued August 1, 2019. The contractor has mobilized to site and has started construction of the two on‐land shafts. Construction is scheduled to be complete by Spring 2024.

• FSA – Northwest Langley Treatment Projects – This work involves expansion of the treatment

plant from serving 30,000 people to 230,000 people. It also includes a new river crossing, new pump station, SSO storage tank and outfall. The estimated construction cost is $1.3 billion and is scheduled to be complete by the end of 2026.

Detailed design of the new treatment plant is currently underway and is roughly 30% complete. Multiple equipment preselection tenders will be issued this spring to help inform the design. The pump station and storage tank construction contract has been awarded and construction will start in late February. The river crossing design is approximately 60% complete, with construction tendering projected for late 2020. Phase 1 ground improvements have been completed and award of phase 2 ground improvements are underway. The overall project is currently on schedule.

• VSA – Hastings Trunk Sewer – The Hastings Trunk sewer (also known as the Douglas Trunk Sewer) will provide additional capacity to support rapid development and population growth in the Brentwood Mall and Gilmour areas in Burnaby. The project involves construction of 1.8 km of sewer ranging from 750 mm to 1200 mm in diameter. The construction of a 1.25 km of tunneled section is completed. The remaining 550 m of open cut works is 60% complete. All work is scheduled for completion in May 2020.


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Infrastructure Maintenance Program • LSA – Gilbert Trunk Sewer Twinning ‐ Construction of the 3.5 km long Phase 1 is complete. The

remaining 3 Phases have a total length of 6.5 km consisting of 1.5 m and 1.8 m diameter sewers. Phase 2 construction from Blundell to north of Westminster Highway is 90% complete, with completion projected for early 2020. Phase 4, from Steveston Highway to the Lulu Island WWTP, will be tendered in Q2 of 2020. Phase 3, which extends from Blundell Road south to the Steveston Highway will be completed last, with construction scheduled to start in 2021.

• VSA – Iona Island WWTP Solids Handling Upgrade – This project involves upgrades to the existing

grit removal and sludge screening systems, increasing sludge thickening capacity, and improving the digester sludge mixing systems. Construction to refurbish the existing sludge thickener was completed on schedule in April 2016 and is back in full operation. The construction of the new screening, degritting and thickening facility was completed and in operation since August 2017. The Digester Mixing Upgrade contract started in November 2015 and, of the four digesters, Digesters No. 2, No. 3 and No. 4 upgrades are complete and back in service. Work on the last digester, Digester No. 1, started in July 2019 and is scheduled to be complete by February 2021.

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

12 secondary clarifier mechanisms that have been damaged by corrosion and are at the end of their service life. The construction contract for this project includes the Secondary Clarifier Flow Control and Secondary Bypass components which involve the addition of 12 new influent flow balancing gates, and the replacement of 3 existing secondary bypass gates. To date, 7 mechanisms, 3 flow balancing gates and all 3 secondary bypass gates have been replaced. A tender for the remaining 5 mechanism units, and the replacement of the 12 existing effluent launders and weirs, was awarded in March 2019, in the amount of $17M. Fabrication of the new mechanisms is underway. Construction is scheduled to start in May 2020 following completion of the new Stage 5 secondary clarifiers, with construction projected to be complete in 2023.

Infrastructure Resilience Program

• FSA – Annacis Island WWTP Cogeneration System – This $75 million resiliency project involves the

installation of four new larger capacity cogeneration engines (2000 kW each) complemented by two new emergency stand‐by diesel generators (3000 kW each) in order to: 1) provide rapid response (< 60 seconds) emergency back‐up power in case of BC Hydro utility outages, 2) optimize the use of digester gas produced at the plant, 3) increase the cogeneration capacity, 4) minimize the amount and cost of electricity imported from BC Hydro costs, and 5) minimize digester gas flaring. The project started in Q4 2017 and construction is substantially complete as of August 2019. The new cogeneration engines and diesel gensets are presently being integrated into the Plant via engineered tie‐ins. Planning is underway for operational commissioning in March 2020.

• VSA – Highbury Interceptor Air Treatment Facilities – Construction of this odour control station

located in Musqueam Park in Vancouver started in February 2018. The facility construction is 95% complete and scheduled to be in service in May 2020. The air jumper component, which is a separate facility to allow the free movement of air in the sewer and extend odour control south to the Fraser River, was completed in September 2019.


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• VSA – Emergency Backup Power ‐ This project involves design, supply and installation of standby emergency backup generators at Chilco, Columbia, Harbour, Hudson, Jervis, Kent and Willingdon pump stations to allow the stations to remain operational during power failure events and reduce the risk of a spill. The tenders for the Columbia, Harbour, Hudson, Kent and Willingdon upgrades were issued in Q4 2019. The equipment has been procured, and construction for Hudson, Willingdon and Kent has started. Harbour and Columbia are scheduled for Q2 2020 construction start. These 5 sites are all scheduled to be commissioned in 2020. The design of the Jervis and Chilco facilities and Vancouver Parks Board approval process is in progress.

Infrastructure Upgrade Program

• FSA – Sperling Pump Station ‐ The Sperling Pump Station Upgrading Project involves the upgrade

and expansion of the existing aging and under capacity facility. Construction is complete and the facility commissioned in August of 2019 with only minor deficiencies outstanding.

• VSA – Iona Island WWTP Biosolids Dewatering Facility – This project involves the design build

construction of a mechanical dewatering facility to dewater on‐going plant production of biosolids so that they can be transported for beneficial reuse or disposal. This facility will permit the decommissioning of the four existing digested sludge lagoons and the sludge drying area to make space for the construction of the new treatment plant. The $55 million design‐build contract was awarded to NAC Constructors in April 2019. The design phase is 90% complete. Ground improvement comprising of 400 stone columns is complete, preload has been installed and anticipated for removal in Feb 2020. The project is scheduled to be complete in April 2021.

37193700


38420210

To: Zero Waste Committee From: Sarah Evanetz, Division Manager, Solid Waste Programs and Public Involvement, Solid

Waste Services Date: May 8, 2020 Meeting Date: May 15, 2020 Subject: COVID–19 Update: Solid Waste Services RECOMMENDATION That the GVS&DD Board receive for information the report dated May 8, 2020, titled “COVID-19 Update: Solid Waste Services”. EXECUTIVE SUMMARY Solid Waste Services is monitoring and responding to COVID-19 developments and impacts on the regional solid waste system and Metro Vancouver’s solid waste facilities. Currently, the regional system is operating at near full-service levels with minor adjustments. April waste disposal tonnage is approximately 10% less than April 2019. Total solid waste facility visits are up approximately 10% as a result of increased small vehicle traffic. Metro Vancouver is engaging with member municipalities and other waste and recycling stakeholders on operational updates, communications to the public and contingency plans resulting from the COVID-19 pandemic and a number of initiatives have been undertaken. PURPOSE The purpose of this report is to provide an update on Metro Vancouver’s Solid Waste Services Department’s response to COVID-19 developments in the region, including municipal and stakeholder engagement, operational changes and communications. BACKGROUND The COVID-19 pandemic has impacted every sector of the economy as well as all of Metro Vancouver’s functions. This report provides an overview of Solid Waste Services work responding to COVID-19. COVID-19 UPDATES Regional Recycling and Solid Waste Service Level Impacts The regional recycling and solid waste system is operating at near full-service levels with some minor system adjustments. Some temporary impacts around the region have included short-term private recycling depot closures, suspension of some municipal large item pick up programs, suspension of collection of extra garbage and yard waste bags, and temporary suspension of some recycling services at regional transfer stations (expanded polystyrene, textiles and books). Expanded polystyrene, textiles and book collection has now resumed at recycling depots at Metro Vancouver transfer stations.

Section E 3.1


COVID-19 Update: Solid Waste Services Zero Waste Committee Regular Meeting Date: May 15, 2020

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Metro Vancouver is working with member municipalities to monitor illegal dumping and littering trends. For the month of March, municipalities reported a slight decrease in illegal dumping incidents. All municipalities report littering of gloves, masks and wipes. Metro Vancouver Solid Waste Facilities Currently, Metro Vancouver transfer stations and the Waste-to-Energy Facility are fully operational, with additional safety and physical distancing measures in place to keep staff and the public as safe as possible. Regional garbage tonnages have changed due to the decrease in economic activity and shift to working and spending more time at home. Overall waste flows have decreased by about 10% compared to April last year, with single family garbage up slightly and commercial garbage down. Traffic volumes at transfer stations are up approximately 10% for April compared to last year, due to more small vehicle traffic. New safety measures put in place at transfer stations include limiting the number of vehicles in the recycling depots at the North Shore and Coquitlam Transfer Stations, eliminating cash payments and communicating new public safety procedures across a number of channels. Metro Vancouver has implemented a variety of site improvements as a result of the COVID-19 pandemic. Additional web cameras at transfer stations and recycling depots have been added or adjusted to allow customers to view line ups in real time and plan their trips accordingly. In response to requests from the waste and recycling hauling industry, Metro Vancouver has placed additional portable toilets and handwashing stations at Coquitlam, Surrey and North Shore transfer stations. Staff also developed a map of public washrooms within the region, including those that are open and closed, that has been shared with member municipalities, the waste management industry, the trucking industry, the Canadian Food Inspection Agency, ride share and taxi associations and is available to the public. The map has now had approximately 10,000 views. A link to the map is provided as a Reference. Metro Vancouver created a dedicated webpage to communicate COVID-19 related solid waste updates. The page received 6,000 page views in its first month. Website traffic to the transfer station website pages increased 70% compared to the same period last year. The Recycling Council of BC has also experienced a 60% increase in calls to the transfer station phone line operated on behalf of Metro Vancouver. Questions focused on organics, furniture and building materials drop-off and disposal options during COVID-19. Engagement and Collaboration Metro Vancouver continues to engage with member municipalities and other waste and recycling stakeholders on operational updates, communications to the public and contingency plans resulting from the COVID-19 pandemic. The Regional Engineers Advisory Committee (REAC), REAC Solid Waste Sub-Committee and the Municipal Waste Reduction Coordinators Committee have convened virtually to coordinate engagement with other levels of government and stakeholders, recycling and garbage operations, scenario and contingency plans, personal protective equipment and sanitation, worker health and safety, health authority guidance and supporting communications.



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Communications Since the outset of the COVID-19 pandemic, Solid Waste Services, in consultation with partners, has implemented a number of solid waste system safety changes that have been communicated out through website updates (including a COVID banner), two email blasts to a database of about 4,000 residents and businesses, four messages via a SMS (text messages) notification service, new electronic signboards at all transfer stations and the launch of a public service announcement on littering of personal items such as masks, gloves and tissues. The number of SMS subscribers increased from approximately 50 individuals in early March to nearly 300 as of the end of April. The following messages have been developed and are reflected across the region, where appropriate:

• Respect physical distancing in solid waste facilities • Delay visits unless absolutely necessary and store dry recyclables and other items at home • Stay home if in quarantine or self-isolation • Follow proper management of personal hygiene and cleaning products:

o Do not dispose of in the green bin. o Put all personal hygiene products, used tissues, sanitary wipes (even those labeled

compostable or flushable), paper towels, napkins, cleaning cloths, face masks, gloves, and similar items in plastic bags and place securely in your garbage bin. Double bag these items if you are sick or caring for someone who is sick.

To remind residents of correct disposal methods for personal hygiene and cleaning items and to discourage littering, Metro Vancouver has developed “Bag It. Bin It.” online banner ads, as well as social media posts, a 15 second public service announcement and supporting messages for use by municipalities and others. A copy of the ad is included in Attachment 2. ALTERNATIVES This is an information report. No alternatives are presented. FINANCIAL IMPLICATIONS As noted above, the regional solid waste system saw reduced waste quantities in April compared to last year. The overall change in waste flows for the year is uncertain and is being monitored closely. Cost reduction measures including reducing contingency disposal tonnage to match requirements are being implemented as appropriate. At its April 24, 2020 meeting, the GVS&DD Board approved extending payment terms for solid waste account customers from 35 days to 90 days for the remainder of 2020, which is expected to result in a cost to the solid waste function of approximately $300,000 due to foregone investment income from the deferred revenues. The additional operational changes, engagement and communications outlined in this report can be accommodated within the annual budget. CONCLUSION Solid Waste Services is monitoring and responding to COVID-19 developments and impacts on the regional solid waste system and Metro Vancouver’s solid waste facilities. Currently, the regional system is operating at near full-service levels with only minor adjustments.



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Attachments (Orbit #38636066) 1. Metro Vancouver Solid Waste Facility Waste Flows 2. “Bag It. Bin It” Personal Protective Equipment Anti-Littering Ad References Municipal/Regional Public Washroom Map: https://www.google.com/maps/d/viewer?mid=1etEqj6AJ0OeNKgf7Ep5QXmNQRFxOesb9&ll=49.21627069312449%2C-122.95255954899005&z=10 38420210


https://www.google.com/maps/d/viewer?mid=1etEqj6AJ0OeNKgf7Ep5QXmNQRFxOesb9&ll=49.21627069312449%2C-122.95255954899005&z=10

https://www.google.com/maps/d/viewer?mid=1etEqj6AJ0OeNKgf7Ep5QXmNQRFxOesb9&ll=49.21627069312449%2C-122.95255954899005&z=10

8%

0%

-4%

-13%

-15%

-14%

-11%

-9%

-14%

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Mar 1 - 7 Mar 8 - 14 Mar 15 - 21 Mar 22 - 28 Mar 29 - Apr 4 Apr 5 - 11 Apr 12 - 18 Apr 19 - 25 Apr 26 - May 2

Metro Vancouver System - Total Inbound Garbage Tonnage

2019 2020

ATTACHMENT 1


6% -2%

-1%

-14%-11%

15%14% 6% -5%

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000


Metro Vancouver System - Total Inbound Garbage Loads

2019 2020


7%

-3% -5%

-19%

-19%

-27%-21% -19% -15%

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000


Account Customer (Commercial Only) Weekly Garbage Tonnage

2019 2020


-1%

-6%-9%

-15%

-19%

-23%

-12% -16% -15%

0

500

1,000

1,500

2,000

2,500


Account Customer (Commercial Only) Weekly Garbage Loads

2019 2020


15% 4%

-1%

-15%

-18%

21%

18%

-3%

-7%

0

500

1,000

1,500

2,000

2,500


Non-Account Customer Weekly Garbage Tonnage

2019 2020


8% -1%

0%

-15%-10%

27%

21%

11% 20%

0

2,000

4,000

6,000

8,000

10,000

12,000


Non-Account Customer Weekly Garbage Loads

2019 2020


5%

4%

5%

8%

9%

8%

23%

14%

2%

0

500

1,000

1,500

2,000

2,500

3,000

3,500


Single Family Curbside Weekly Garbage Tonnage

2019 2020*Hauled by Commercial & Municipal vehicles


-1%

-1%

3%

-1%

0%

1%

-4%

7%

-3%

0

50

100

150

200

250

300

350

400

450


Single Family Curbside Weekly Garbage Loads

2019 2020*Hauled by Commercial & Municipal vehicles


Social Post – image

ATTACHMENT 2


To: Performance and Audit Committee From: Dean Rear, General Manager, Financial Services/Chief Financial Officer Date: April 27, 2020 Meeting Date: May 6, 2020 Subject: Greater Vancouver Sewerage and Drainage District Development Cost Charge

Reserve Fund Expenditure Bylaw No. 339, 2020 RECOMMENDATION 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. 339, 2020; and b) pass and finally adopt Greater Vancouver Sewerage and Drainage District Development Cost

Charge Reserve Fund Expenditure Bylaw No. 339, 2020. EXECUTIVE SUMMARY Utilization of Development Cost Charge’s are required to be approved by the GVS & DD Board by bylaw. The attached DCC Expenditure Bylaw No. 339, 2020 to be provides authority for 2019 annual funding applied for growth capital debt servicing amounts and growth capital project expenditures. In total $152.4 million of DCC’s were applied for 2019 over three sewerage areas. Total DCC’s held in reserve at December 31, 2019 was $227.5 million. PURPOSE To meet the statutory requirements to use Development Cost Charges (DCC’s) for funding of the liquid waste growth capital program. This bylaw completes the authority for the required transfer of DCC’s to fund the 2019 growth capital projects. BACKGROUND The regional sewer development cost charges are governed under the GVS&DD Act and were introduced in 1997, pursuant to the philosophy that “growth pays for growth”. Funds received through the collection of DCC’s are set aside as deferred revenue in reserve accounts on a sewerage area basis for the funding of growth capital projects. This use of DCC revenue funding reduces the reliance on the sewer levy which is generated directly from the GVS&DD’s member municipalities. Under the Act, transfers of any revenues collected out of the DCC Reserve Funds can only be for the purposes intended and must be authorized by bylaw. This report brings forward the bylaw required for the authority to transfer DCC revenues to fund the 2019 growth debt and growth capital projects. 2019 DCC APPLICATIONS DCC’s are collected based on development in the region, held in reserve and applied either to fund the actual sinking fund payments on debt related to growth capital expenditures to enhance system capacity or to fund incurred growth capital project expenditures directly to avoid additional debt

Section G 1.1


GVS&DD Development Cost Charge Reserve Fund Expenditure Bylaw No. 339, 2020 Performance and Audit Committee Regular Meeting Date: May 6, 2020

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financing requirements. As a result of the volume of capital projects undertaken within the Liquid Waste Services function, long-term funding is not secured on a project by project basis but rather on a pooled basis by expenditure type (i.e. defined growth projects) by sewer area as funding is required. As part of the year-end accounting processes, the actual DCC revenue requirements are determined and Board authority for the necessary reserve fund transfers is requested through the attached bylaw. The funding required for 2019, as set out in the annual financial statements, is $30.4 million for debt servicing and $122 million for direct capital funding. These applications are summarized by sewer area below: Fraser Sewer Area $ 25,620,878 - debt $ 100,000,000 – direct capital

This funding relates to a series of growth related projects due to required expansions/upgrades of the liquid waste collection system and the wastewater treatment plants in the Fraser Sewerage Area.

North Shore Sewer area $ 1,262,345 - debt

This funding relates to growth related projects due to required expansions/upgrades of the liquid waste collection system and the wastewater treatment plant in the North Shore Sewer Area.

Vancouver Sewer Area $ 3,505,758 - debt $ 22,000,000 – direct capital

This funding relates to a series of growth related projects primarily due to required expansions/upgrades of the liquid waste collection system in the Vancouver Sewerage Area.

The balances in the DCC deferred revenue reserves at December 31, 2019, after the application of the growth funding amounts contemplated in this bylaw, are as follows: Fraser Sewer Area $ 147,639,413 Vancouver Sewer Area 44,588,063 Lulu Island Sewer Area 24,462,851 North Shore Sewer area 10,860,923 $ 227,551,250 ALTERNATIVES 1. 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. 339, 2020; and

b) pass and finally adopt Greater Vancouver Sewerage and Drainage District Development Cost Charge Reserve Fund Expenditure Bylaw No. 339, 2020.


GVS&DD Development Cost Charge Reserve Fund Expenditure Bylaw No. 339, 2020 Performance and Audit Committee Regular Meeting Date: May 6, 2020

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2. That the GVS&DD Board receive for information the report titled “Greater Vancouver Sewerage and Drainage District Development Cost Charge Reserve Fund Expenditure Bylaw No. 339, 2020”, dated April 27, 2020 and provide alternate direction.

FINANCIAL IMPLICATIONS This bylaw as presented under alternative one finalizes the required DCC funding for growth debt and capital as contemplated in the 2019 Liquid Waste Services budgeted operating and capital revenues. Should this bylaw be amended or not approved, sewer levy funding may need to be used to fund debt on growth related capital expenditures rather that DCC’s as intended a part of the DCC program. This would reduce the funding available for the other areas of the service and likely lead to an increase in the levy to member municipalities. SUMMARY / CONCLUSION The adoption of the bylaw as included under alternative one is recommended. The 2019 budget contemplated the transfer of DCC revenues collected to meet actual debt charge and capital funding requirements related to the Liquid Waste growth capital program. This bylaw completes that process. Attachment: Greater Vancouver Sewerage and Drainage District Development Cost Charge Reserve Fund Expenditure Bylaw No. 339, 2020. 37817331


Greater Vancouver Sewerage and Drainage District Development Cost Charge Reserve Fund Expenditure Bylaw No. 339, 2020

37812800 Page 1 of 2

GREATER VANCOUVER SEWERAGE AND DRAINAGE DISTRICT BYLAW NUMBER 339, 2020

A Bylaw to Expend Development Cost Charge Reserve Fund WHEREAS: A. The Greater Vancouver Sewerage and Drainage District (the “Corporation”) enacted

Development Cost Charge Bylaw 254, 2010, (further amended by Greater Vancouver Sewerage and Drainage District Amending Bylaws 286, 2014 and 292, 2015 and 305, 2017) which was effective as of April 23, 2010 (replacing repealed Development Cost Charge Bylaw 187, 1996, which was effective as of January 1, 1997), pursuant to which the Corporation has imposed development cost charges to assist the Corporation in paying capital costs incurred to provide, construct, alter or expand sewerage facilities to service development;

B. The Corporation has established a Development Cost Charge Reserve Fund pursuant to

“Greater Vancouver Sewerage and Drainage District Development Cost Charge Reserve Fund Bylaw No. 188, 1997”, which was enacted pursuant to Section 58.6 of the Greater Vancouver Sewerage and Drainage District Act, into which fund the Corporation has deposited and continues to deposit the monies collected pursuant to Development Cost Charge Bylaw 254, 2010 (further amended by Greater Vancouver Sewerage and Drainage District Amending Bylaws 286, 2014 and 292, 2015 and 305, 2017) which was effective as of April 23, 2010 (replacing repealed Development Cost Charge Bylaw 187, 1996 which was effective as of January 1, 1997);

C. The Development Cost Charge Reserve Fund is divided into 4 separate accounts, pursuant to

“Greater Vancouver Sewerage and Drainage District Development Cost Charge Reserve Fund Bylaw No. 188, 1997”, being the Fraser Area Account, the Lulu Island West Area Account, the North Shore Area Account and the Vancouver Area Account; and

D. The Corporation is authorized to pay from the Development Cost Charge Reserve Fund the

capital costs of providing, constructing, altering or expanding sewerage facilities that relate to development within the area of the Corporation or principal and interest on a debt incurred by the Corporation as a result of an expenditure for the capital costs of providing, constructing, altering or expanding sewerage facilities that relate to development within the area of the Corporation.

NOW THEREFORE the Board of the Greater Vancouver Sewerage and Drainage District enacts as follows: 1. The sum of $25,620,878 held in the Fraser Area Account shall be paid out of such account and

used to pay the portion of the principal on the debt incurred by the Corporation that has been apportioned to the Fraser Sewerage Area, which debt was incurred by the Corporation to pay for the capital costs of providing, constructing, altering or expanding sewerage facilities that relate to development within that area of the Corporation and the sum of $100,000,000 held in the Fraser Area Account shall be paid out of such account to fund capital apportioned to


wchan

Text Box

ATTACHMENT

Greater Vancouver Sewerage and Drainage District Development Cost Charge Reserve Fund Expenditure Bylaw No. 339, 2020

37812800 Page 2 of 2

the Fraser Sewerage Area to pay for the capital costs of providing, constructing, altering or expanding sewerage facilities that relate to development within that area of the Corporation.

2. The sum of $1,262,345 held in the North Shore Area Account shall be paid out of such account

and used to pay the portion of the principal on the debt incurred by the Corporation that has been apportioned to the North Shore Sewerage Area, which debt was incurred by the Corporation to pay for the capital costs of providing, constructing, altering or expanding sewerage facilities that relate to development within that area of the Corporation.

3. The sum of $3,505,758 held in the Vancouver Area Account shall be paid out of such account

and used to pay the portion of the principal on the debt incurred by the Corporation that has been apportioned to the Vancouver Sewerage Area, which debt was incurred by the Corporation to pay for the capital costs of providing, constructing, altering or expanding sewerage facilities that relate to development within that area of the Corporation and the sum of $22,000,000 held in the Vancouver Area Account shall be paid out of such account to fund capital apportioned to the Vancouver Sewerage Area to pay for the capital costs of providing, constructing, altering or expanding sewerage facilities that relate to development within that area of the Corporation.

4. This bylaw may be cited as “Greater Vancouver Sewerage and Drainage District Development

Cost Charge Reserve Fund Expenditure Bylaw No. 339, 2020”.

Read a first, second and third time this _______ day of ____________________, _______

Passed and finally adopted this _______ day of ____________________, _______

Sav Dhaliwal, Chair

Chris Plagnol, Corporate Officer


May 15, 2020

COMMITTEE INFORMATION ITEMS AND DELEGATION SUMMARIES Greater Vancouver Sewerage and Drainage District Board Meeting Date – Friday, May 29, 2020 This information item, listing recent information received by committee, is provided for the GVS&DD Board’s information. Please access a complete PDF package here. Performance and Audit Committee – May 6, 2020

Delegation Summaries: No delegations presented

Information Items: 5.4 Semi-Annual Report on GVS&DD Development Cost Charges

Liquid Waste Committee – May 14, 2020


Information Items: 5.3 2020 Regional Unflushables Campaign – Update

Zero Waste Committee – May 15, 2020


Information Items: 5.2 Solid Waste Services Capital Program Expenditure Update as of December 31, 2019 5.3 2019 and 2020 Food Scraps Recycling Campaign Results

38853626

Section I 1


http://www.metrovancouver.org/boards/GVSDD/SDD_2020-May-29_ADD-I1.pdf

meeting 4 of 7 greater vancouver sewerage and …may 29, 2020 · [recommendation a): simple...

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