Hans Karow Coalition to Reduce Electropollution (CORE) M2 /C14 1215 Poplar Grove Road PENTICTON, BC, V2A 8T6 E-mail: hkarow@shaw.ca Mr. Robert J. Pellatt Commission Secretary B.C. Utilities Commission 900 Howe Street, Box 250 Vancouver, BC V6Z 2N3 February 16, 2006 Dear Mr. Pellatt, Re: FortisBC Inc. Order No. G-114-05 / Project No. 3698407CPCN Application for Nk’Mip Substation & Osoyoos Transmission Line http://www.bcuc.com/ApplicationView.aspx?ApplicationId=93 1. Please accept this and the attachment as my Evidence # 38; another follow-up with regards of

property devaluation issue. 2. Attachments consist of

a. Atchison Affidavit in the BCTC VITR & SeaBreeze VIC hearing;

Mr. Atchison is a professional engineer and real estate advisor

b. Newman Affidavit in the BCTC VITR & SeaBreeze VIC hearing; Mrs. Newman is a Senior Appraiser at the BC Assessment Authority

3. In those affidavits it is clearly stated that power lines are associated with diminution in property values [yellow high lighted by Karow]:

a. 20% for properties under power lines b. 10% for properties adjacent to power lines

4. Above facts are in contrast to Lands West property Services report, dated December 15, 2005

(Wonch White IR#1, Q6/A6, Appendix A6), where Mr. Ron Pavlakovic comments: - “…that there is negligible impact to property value associated with these types of

facilities [13kV and 60kV transmission system, …Karow] in proximity to residential properties.”

- “Both US and Canadian studies involving the effects of high voltage transmission lines on residential developments have indicated that the impact to value is negligible, if any

C1-75

- “…there is no impact to the property building envelopes, no diminution in value is estimated as a result of the rebuild of the existing structures on the abutting residential properties.

- There are generally no property value impacts to residential, commercial or industrial properties that are adjacent to distribution/transmission facilities…”

Respectfully submitted, Hans Karow [copy of this e-mail will also be forwarded to Mr. Ron Pavlakovic, Lands West Poperty Services Inc., Westbank, BC. rpav@landswest.net ]

Atchison Affidavit #2

In the Matter of the Urilities Comm'ssion Act R.S.B.C. 1996, c. 473

Re: British Columbia Transmission Corporation Project No. 3698395/0rder No. G70-05

Certificate of Public Convenience and Necessity Application Vancouver Island Transmission Reinforcement Project

I, Neil Atchison, Professional Engineer and Real Estate Advisor, of 1310 5311 Street, Tsawwassen,

British Columbia MAKE OATH AND SAY AS FOUOWS:

1. I live at 1310 53X Street along the corridor of land in Tsawwassen under which the British

Columbia Transmission Corporation (the "BCTC") proposes to bury new txansmission 1 , s

(the "Qht of Way" - hereinafter I use the Right of Way to refer interchangeably to both the

existing right of way and the proposed underground right of way). I am a real estate advisor and

licensed real estate broker. As such, I have personal knowledge of the facts and matters to

which I depose, except when such knowledge is stated to be on the basis of information and

belief, in which case I do verily believe the information to be true.

2. In total I have 30 years experience in civii engineering and real estate. I have a Civil

Engineehg degree from the University of Manitoba, and I completed graduate coursework in

Transportation Enpeer ing at the University of Toronto. I also hold real estate licences as an

associate broker in B.C. and as a broker in Alberta. From 1994 to 2000, I held a senior advisory

position at a large international real estate services iirm. Currently, I hold a senior position at a

large international professional services firm, where I provide real estate advisory and transaction

services.

3. The purpose of hs affidavit is to provide (i) an estimate of the total loss in the value of

properties on and adjacent to the Right of Way caused by the BCTC's proposed project and (ii)

an estimate of the total loss in property taxes payable to the Corporation of Delta caused by the

BCTC's proposed project.

htchison Affidavit #2

Property Assessment and Power Lines

4. On January 30,2006, Julie Berks, a resident of Tsawwassen and member oETRAHVOL, and I

met with Marcia Neman, Senior iippraiser, and Robin Austin, Appraiser, of the B.C.

Assessment Authority (the "BCAA"). Ms. Newman explained the approach taken by the BCALA

in assessing properties along the Right of Way.

5. Ms. Newman explained the general approach to property assessment taken by the BCM. For

the land component of a property, first, the BCAA calculates a "Dimensioned Value", by

adjusting an average value based upon general market conditions in that area to reflect the

unique size and shape of the subject property. If necessary, the BCr4.A then applies additional

"Manual Adjustments" or ccCharacteristic Adjustments" to reflect unique market,

nqhbourhood or other condtions (such as the presence of power lines). The vesulting value is

the "Assessed Value-Land.''

6. BCAA calculates a separate assessed value for a property's land and its buildings. Rly lif£idavit

only considers lissessed Value-Land, because the gain or loss in total ilssessed Value is, all other

h n g s being equal, only attributable to gains or losses in Assessed Value-Land.

7. According to Ms. Nexvman, the BChA has historically applied a downward adjustment to the

assessed value of land of properties on and adjacent to the Right of Way, to reflect the presence

of the powes lines. This value ranged from 0% to lo%, depending on the location of the

property.

8. Ms. Newman stated that, in July 2005, she conducted an analysis to re-evaluate the effect of

power lines on property values for Tsawwassen properties both on and adjacent to the Right of

Way, in response to the controversy surroundmg the project proposed by the BCTC.

9. As a result of this analysis, Ms. Newman stated that, for the 2006 Assessment Rolls, the B C M

increased the adjustment to land associated with the presence of the power lmes applied to

properties g the kght of Way, by 10?/0 (for a total downward adjustment of 20%). Ms.

Newman also stated that, following her analysis, the BCAI also increased the downward

Atchson Affidavit #2

adjustment associated with power lines for properties adiacent to the Right of Way from a range

of OO/o to 10%, to a consistent 10%.

10. The following Table summarizes the information provided to me by Ms. Newman, regarding the

change in Characteristic Adjustments applied by BCiU to the assessed values of land of

properties adjacent to and on the Rght of Way:

Table 1

2005 2006 Incremental BCAA Characteristic Adjustments Assessment Assessment Change

for ROW PROPERTIES =A Street

Manual Adjustment - Traffic -5% -1 5% -1 0% Characteristic Adjustment - Power Line Proximity -1 5% -20% -5%

Not Affected by Traffic: Tsawwassen Heights, etc. Manual Adjustment - Traffic * 0% 0% Characteristic Adjustment - Power Line Proximity -1 0% -20%

for ADJACENT PROPERTIES Manual Adjustment - Traffic 0% 0% 0% Characteristic Adjustment - Power Line Proximity 0 to-10% -10% -5Oh

Notes: 1. No property specific adjustments for existing transmission line poles 2. Traffic adjustment by property In 2005 ranged from -3% to -1 0%, and averaged -5%. 3. Power Line Proximity adjustment by property in 2005 ranged from 0 to -lo%,

1 1. Finally, Ms. Newrnan explained that, for example, the 2006 Assessed Value of a property

represents the value of that property as of July 1,2005, based upon its physical condition on

October 31,2005.

12. In my view, the announcement of the BCTC project in late 2005 is the only factor which

reasonably accounts for the relatively large increase in effect of power hues on assessed land

value, as between the 2005 and 2006 Assessment Rolls.

13. Further, in my experience, the assessed value of a property as calculated by BCA;l is a

reasonable proxy for the property's market value at the time of assessment. In its "factsheet"

titled "Frequent4 A~ked cQriestiotz~--260ut Pmpet?.y A.~se~'smend' BCAA states that "An assessment is

Atchison Affidavit #2

titled "Fnquenth Asked Q~estions A bout Propeq Asses~ment' BCAA states that "An assessment is

the determination of a property's market value.. ." and "Market value for assessment purposes

in British Columbia is the most probable price that an unencumbered property would sell for on

the open market.. ." This factsheet is attached to my affidavit as Exhibit A.

Estimated Incremental Loss in Property Value

14. In order to find a reasonable estimate of the total loss in the market value of properties on and

adjacent to the Right of Way caused by the BCTC's proposed project, I calculated the Total

Estimated Incremental Loss in Assessed Value of those properties as a result of the increase in

the power line adjustment applied by BCAA.

15. '13e Total Estimated Incremental Loss in Assessed Value, due to the changes in the power line

adjustment, is a reasonable estimate of the loss in market value caused by BCTC's proposed

project because, as noted above, (i) assessed value is a reasonable proxy for market value, and (4 the announcement of the BCTC project in hte 2005 is the only hctor which reasonably

accounts for the changes in the power line adjustment between the 2005 and 2006 Assessment

Rolls.

16. I obtained the assessed values for properties on and adjacent to the Right of Way from the 2004,

2005 and 2006 Assessment Rolls, provided to me by the BCTC.

17. I performed the following calculations, a detailed summary of which are attached to my affidavit

and labelled Exhibit B. First, I determined the Estimated Incremental Loss due to power line

adjustment for each property:

a) 2006 Dimensioned Value = 2006 Assessed Value-Land 1 - (2006 Power line Adjustment + 2006 Traffic Adjustment)

b) Estimated Incremental Loss = 2006 Dimensioned Value x (2005 Power line Adjustment - 2006 Power line Adjustment)

18. I then calculated the Total Estimated Incremental Loss due to power line adjustment by to tahg

the Estimated Incremental I,oss for each property, both on and adjacent to the Qht of Way.

Atchison Affidavit #2

19. The following table summarizes my findings for total Estimated Incremental I,oss due to power

line adjustment:

Table 2 Number of Amount Properties ($ millions)

ROW Properties 136 ($3.71) Adjacent Properties 61 (1 .OO)

Total 197 ($4.71 )

20. In summary, I found that the total estimated loss in Assessed Value-Land due to the increased

effect of power lines from 2005 to 2006, was approximately $4.7 million. This indcates that

BCTC has not accurately accounted for this cost in assessing the impact of the proposed project.

21. I also examined the trend in "actual" Assessed Value-Land for all of the properties both on and

adjacent to the Right of Way, for 2004,2005 and 2006.

22. In total, the assessed value of properties on and adjacent to the Rght of Way decreased from

$55.6 million in 2005 to $53.5 million in 2006. 'I'he details of my calculations in thic respect

are attached to my affidavit as Exhibit B.

23. In contrast, ACLM stated in a press release, dated January 3,2006, that most homes on the 2006

ilssessment Roll for Delta increased in value from 2005 to 2006. According to the BCAX, a

centrally located, older, single family residential home in Tsawwassen whose assessed value

increased by 15?/0 is illustrative of the local maxket trends. This BCAX press release is attached

to my affidavit as Exhibit C.

24. If BCIU's historical adjustment for the value effect of the power lines had not changed, the

assessed value for 2006 for properties on and adjacent to the Rtght of Way would have totalled

$6 1.0 million, rather than $53.5 million. This suggests an estimated total loss in assessed value of

roughly $7.5 million.

htchison Affidavit #2

25. l 'he following gaph contrasts thts estimated trend for assessed property values on and adjacent

to the Qht of Way, if the historical adjustment factor had continued unchanged, with the actual

total assessed value for 2006:

Figwe 1

"Actual" vs. "Trend" Assessed Value-Land for ROW and Adjacent Properties

(Source: BC Assessment Authority and TRAHVOL) $65.0 I

m c 2 - $60.0 .- E t = $55.0 18 S 3 $50.0 ....---..--.-------..F-.--..-

> -0 % g $45 0 9

$40.0 !

2003 2004 2005 2006 2007

4 . "Trendn Assessed Value-Land (TRAHVOL) -0-"Actual" Assessed Valueland (BCAA)

26. Overall, if the historical adjustment factor for power lines had continued unchanged, the

Assessed Value-Land would have increased by 9.7%. This increase is commensurate to, though

somewhat lower than the trends provided by the BCLM in the previously mentioned press

release (attached as Exhibit C).

Estimated Property Tax Loss

27. Given that property taxes are calculated as a percentage of assessed property values, a reduced

assessment value necessady leads to reduced properq tax revenue for the Corporation of Delta,

or a loss that it must otherwise make up by increasing its mill rate (property tax rate) for all

properties in Delta.

Atchison Affidavit #2

28. Based upon the 2005 Property Tax Notice from the Corporation of Delta, the 2005 mill rate for

land was (property tax rate) was 7.70150 d s per $1,000 of assessedvalue of land . The

Schedule of Delta Tax Rates for 2005 is available at http://~v.corp.delta.bc.ca/Ei\J/main/

residents/816/tax-rate-schedule.hrml and is attached to my Affidavit as Exhibit D.

29. 1 estimated the 2006 property tax rate by increasing the 2005 property tax rate by 3.5910.

30. I calculated the 2006 Estimated Property Tax Loss, on account of the change in rhe power line

adjustment, by multiplying the Estimated Incremental Losses by the estimated 2006 Property

Tax Rate (7.971 10 mills per $1,000 of assessed value of land).

31. I calculated the Present Value of the Property Tax Loss in perpetuity by dividing the 2006

Estimated f roperty Tax Loss by the current 30-year market interest rate of 4.7574, provided by

the B.C. Iviunicipal Finance Authority. I assumed that this rate reasonably reflected the cost of

capital to the Corporation of Delta.

32. The following 'Table summarizes the total loss in property tax revenue caused by the change in

the power line adjustment. A more detailed summary of these calculations is attached to my

Affidavit and labelled Exhibit B.

Table 3

PV of Estimated 2006 Estimated Property Property Tax Loss in

Tax Loss due to Perpetuity due to Estimated Incremental Estimated Incremental

Loss due PA Loss due to PIL Adjustment Adjustment

ROW Properties ($29,554) ($622,193) Adjacent Properties (7,979) (1 67,977)

Total ($37,533) ($790,170)

rltchson Affidavit #2

33. In summary, in 2006, the Corporation of Delta wiU lose an estimated $37,533 in property tax -

revenue as a result of BCTC's proposed project. 'Taken over perpetuity, the Corporation of

Delta may lose an estimated $790,170 in property tax revenue should the project continue as

planned.

SWORN BEFORE ME at the City of ( / G - L - - ~ W ~ ~ ,intheprovince

)

of ' 3 - C . )

,this= day of )

h Commis in and for the P r o ~ h c e o f a C . )

Lawyer 1 6@4001 West h g i a

Vanmuver, B.C.V6B 591 (604 632-9Qfl

W h a t is BC Assessment? What Is %he relationship between property BC Assessment is a provincial Crown corporation that classifies and assesses the value of all real property in British Columbia. On December 31, BC Assessment sends property owners a Property Assessment Notice telling them the fair market value of their property as of July 1 of that year.

What is an assessment?

An assessment is the determination of a property's market value, property classification and applicable exemptions as of July 1 each year. On December 31, BC Assessment mails a Property Assessment Notice to each property owner in the province, showing the property's market value. This assessment is the basis used by taxing authorities for determining the share of municipal and provincial property taxes owners will Pay.

iYha& is market value?

Market value for assessment purposes in British

assessment and taxes? Provincial and municipal governments (taxing authorities) pay for public services through property taxes, which are based on assessed value. BC Assessment determines the market value of properties and sends property owners a Property Assessment Notice. Then, tax authorities determine the property tax rate they will set to ralse the revenue needed to pay for public services. The tax authorities apply this rate to the assessed value of properties and send property owners a Tax Notice.

Why did the value uf my property chah-sge? Property values usually change as a result of real estate market forces and these forces vary by property type and location. I f a property was upgraded, the value will likely increase.

What hzpgens if I disagree ~ d i % h my property 's assessed vaiue?' - -

Columbia is the most probable price that an Property owners who disagree with the estimate of unencumbered property would sell for on the open market on July 1, if a reasonable amount of time is their property's market value, exemption status, or

allowed to find a purchaser. who believe their property was improperly classified, should contact their local assessment office.

BC Assessment has a professional appraisal staff and an extensive database that is periodically updated with information gathered through appraisal inspections. Municipal and provincial agencies inform BC Assessment of land title changes, building permit approvals and zoning adjustments. BC Assessment also considers a property's unique characteristics, including location, size, layout, shape, age, finish, quality, carports, garages, sundecks and condttion of buildings. All these variables are considered when valuing each property.

BC Assessment wilt review the assessment and, if a change or correction is required, will recommend the changes to a Property Assessment Review Panel (PARP) on behalf of the owner. I f the property owner still disagrees with the assessment, he or she may request an independent review before a PARP. This request must be delivered In writing to BC Assessment no later than 12:OO a.m. P.S.T. on January 31.

This is Exhibit.h.,referred to in the Affidavil of .!!k.d...&k~!?!..%?a .... Sworn before me at the City of

/.?,%.ZA,:,P,:.L.Z... BC, this.k:.'day

updated 07.2005 Disclaimer: Where information presented is different from legislation, legislation shall prevail. for ~ r i t ~ l ~ s ~ s s m e n t . c a

* , I * ggwal is the FA5gP?

The PARP is made up of three people appointed annually by the provincial government. The impartial panel hears evidence and will determine if a property has been valued or classified correctly, or if exemptions were properly applied.

PARPs are independent of BC Assessment and the tax authorities. Neither the PARP or BC Assessment has jurisdiction or control over taxes or tax rates. Property taxes cannot be appealed.

A r e any tax ~e i le f programs avai#a$lc? The provincial government makes the Home Owner Grant available to most residential property owners who occupy their property.

The provincial government also provides tax deferral support. People 60 years of age and older, widows, widowers and disabled people (as defined in the Guaranteed Available Income for Need Act) may defer their property taxes until they sell their property.

For more information on tax deferment, contact the municipal or government agent office in your area or visit www.qov.bc.ca. See also the Fact Sheet on Section 19(8) o f the Assessment Act: Assessment Relief.

updated 07.2005 Disclaimer: Where information presented is different from legislation, legislatlon shall prevail. www.bcassessment.ca

ATTACHMENT 1 - SUMMARY OF BCAA ASSESSMENT ANALYSIS OF ROW 8 ADJACENT PROPERTIES

ROW Properties Land $ 33,966,000 $ 38,530,000 $ % no6 nnn t rrr nn7 I + naz nnn~ Buildings

Total

Adjacent Properties Land Buildings

Total

Combined Land Buildings

Total

YEAR-TO-YEAR CHANGES (%) ROW Properties

Land Buildings

Total

Adjacent Properties Land Buildings

Total

Combined Land Buildings

Total

NOTES: A, Based upon aPPlYlng 2005 BCAA characteristic a0justments forland.to.2006 aimposinpnd. Vatu

TRAHVOL Page I of 2 February 2006

b

AlTACHMENT 1 - SUMMARY OF BCAA ASSESSMENT ANALYSIS OF ROW 8 ADJACENT PROPERTIES B. 2006 mill rate based upon 2005 mill rate plus 2.5% increase for 2006 (source: 2005 property tax notice from Corporalion of Delta) C. Current 30-year market rate of BC Municipal Finance Authority on February 13,2006 = 4.75% D. 2005 Corporation of Delta mill rate for single family residential properly in Tsawwassen (source: 2005 property lax notice) E. Estimated 2006 Corporation of Delta mill rate for single family residential property in Tsawwassen (source: TRAHVOL)

Property Tax Uses 2005 Mill Rate Est. 2006 Mill Rate Munici~al

~ u n i c i ~ a l General Municipal Debt Regional Library Drainage South Delta Rec Centre

Other School Residential BCAA GVRD GV Transoortation Authoritv ~unic i~a l '~ inance ~uthorit;

Total 2005-2006 %increase (source: Corporation of Delta) 3.50%

TRAHVOL Page 2 of 2 February 2006

This is ~ x h i b i t ..G.referred to in the Affidavit of .h!c~,i..A:t~,fi:~s.s~... Slvorn bcfore me at the City of

4-1 Bc-- *vfi*k.k~k.<... Bc, this ..!6 .... day - s NEWS RELEASE

For Immediate Release January 3,2006

ASSESSMENT NOTICES SENT TO PROPERTY OWNERS IN DELTA

DELTA - More than 35,000 property owners in Delta can expect to receive their 2006 assessment notice in the coming days.

Assessments are the estimate of a property's market value as of July 1,2005. This common valuation date ensures that all properties are assessed fairly and there is an equitable base for property taxation.

The real estate market creates property value, which is reported annually by BC Assessment. Local governments and other taxing authorities are responsible for property taxation, and after determiming their own budget needs this spring, will determine their property tax rates based on BC Assessment's data. Note: Property owners should contact their local government, or taxing authority, for more information about their property taxes.

"Most homes on this year's assessment roll are worth more than they were on the 2005 assessment roll, and market movement appears strong when compared to previous years," said Richmond Area Assessor Mark Katz.

Changes in property assessments are reflective of movement in the local real estate market and can vary greatly from property to property. When estimating a property's market value, a professional appraiser analyzes current sales in the area, as well as considering other characteristics such as size, age, quality, condition, view and location.

Overall, Delta's assessment roll increased from $14.48 billion last year to $16.03 billion this year. A total of $172 million of this growth reflects non market changes which includes subdivisions, rezoning and new construction.

The examples below demonstrate local market trends for properties by a geographic area; trends are affected by many variables.

Assessments in Delta 2005 Assessment Valuation Date July 1,

2004

2006 Assessment Valuation Date July 1,

2005 Tsawwassen

Beach Grove, Single Family, older Central, Single Family, older ViewIWaterfiont, Single Family Strata Apartment, 2 bedroom, low rise

$339,000 $365,000

$1,395,000 $181,000

$406,000 $4 19,000

$1,622,000 $21 9,000

Ladner Single Family, older Single Family, newer Strata Apartment, 2 bedroom, low rise Townhouse, 3 bedroom, older

$355,000 $479,000 $187,000 $198,000

$389,000 $548,000 $2 16,000 $21 1,000

"Property owners who feel that their property assessment does not reflect market value as of July 1, 2005, or see incorrect information on their notice, should contact the BC Assessment office indicated on their notice as soon as possible in January," said Katz.

3

North Delta

"If a property owner is still concerned about their assessment after speaking to one of our staff, they may submit a written request by January 3 1, for an independent review by a Property Assessment Review Panel." The panels, independent of BC Assessment, are appointed annually by the Ministry of Small Business and Revenue, and meet between February 1, and March 15 to hear formal complaints.

Single Family, older Single Family, newer Strata Apartment, I bedroom, low rise Townhouse, 3 bedroom, older

Assessments and Sales by Address are available for residential property owners to hrther assist them in understanding their property's market value and to provide comparable sales information. This service is available on BC Assessment's web site at ww~~.bcassessment.ca from January 3 to March 15. Paper copies of Assessments by Address are also available at local area offices and most municipal halls, libraries and govemment agent's offices across the province. Sales by Address is new for this year, market value sales that occurred three months before and three months following the July 1,2005 valuation date, between April 1 to September 30,2005 are included.

Delta is served by both of our South Fraser offices; South Delta, Annacis and Tilbury properties are valued by the Richmond/Delta Assessment Office which is located at Suite 200 - 11331 Coppersmith Way. North Delta properties are valued by the Surrey/White Rock office which is located at Unit 208, 5460 - 152 Street, Surrey. During the month of January, office hours are 8:30 a.m. to 5:00 p.m. Monday to Friday.

$302,000 $546,000 $59,000 $184,000

- END -

$323,000 $573,000 $73,000 $205,000

For More Information: Mark Katz Area Assessor BC Assessment South Fraser Region

South Delta Phone: (604) 24 1-1361 Toll Free: 1 (800) 644-7774

North Delta Phone: (604) 576-4700 Toll Free: 1 (800) 607-5007

BC Assessment and the property assessment process: ~vu~w.bcassessment.ca

Provincial Government's Property Assessment Review Panels: htt~:/h:mxi~~~.~~~.l~~.c~~cl~n,.~~

Provincial Government's Home Owner Grant program: hrt~:!/\y.rvw. rev.~i)v.bc.cai~t!l~on~e owner erariis.htm

Property Tax Deferment: htt~:/iu~ww.rev.gov. bc .c 'd~~~t i~ ro~er t tax defernment.htm

Property taxes: Contact your local government or taxing authority.

This is ~ x h i b i t .n., ,,,red to i n th

Affidavit of .,.b%!:!..,h&h.!.s~kx Sworn bcforc me at the City of

4 c .~G~~C;Z .Y .Z I . . BC, this ., 1.d ... day

Delta Tax Rates - 2005

Rates are applicable to the total taxable assessed value of land and improvements unless otherwise stated.

Residential: North Delta 3.6637 0 0298 0.1353 0.0872 0.1013 4.0173 2.6259 0.0920 04738 0.0920 0.0003 3.2840 7.3013 0.4759 Ladner 3.6637 0.0298 0.1353 0.0938 3.9228 2 6259 0 0920 04738 0.0920 0.0003 32840 7.2066 0.4759 South Delta 3.6637 0 0298 0.1353 01128 3.9416 2.6259 0.0920 0.4738 0.0920 0.0003 33840 7.2256 0.4759

Utility: North Delta 38 2751 0.3113 1.4135 0.9110 1.0583 41.9692 14 9000 0.3220 3.0325 0.5239 0.0005 18.7789 60.7481 4.9718 Ladner 38.2751 0.3113 1.4135 0.9799 40.9798 14.9000 0.3220 3.0325 0 5239 0.0005 18.7789 59.7587 4.9718 South Delta 38.2751 0.3113 1.4135 1 1784 41.1783 14 9000 03220 3.0325 05239 0.0005 18.7789 59.9572 4.9718 Annac~s 38.2751 0.3113 1.4135 0.91 10 1.0583 42.9692 14.9WH) 0.3220 3.0325 0.5239 0.0005 18.7789 60.7481 1.4104

Drainage (charged on land only)

' Major Industrial: North M t a 27.3139 0.2222 1.0087 0.6501 0.7552 29.9501 125000 0 3128 2 9475 0.5239 0.0005 162647 46.2348 3 5480 Ladner 27 3139 0 2222 1.0087 0.6993 29.2441 125000 0.3128 2.9475 0.5239 0 0005 16.2847 45.5288 3.5480 South Delta 27 3139 0.2222 1.0087 0.8410 29.3858 12.5000 0 3128 2.9475 0 5239 0.0005 16.2847 45.8705 3.5480 Annac~s 27.3139 0.2222 1.0087 0 6501 0 7552 29.9501 12.5000 0 3128 2.9475 0.5239 0.0005 18.2847 482348 1 . O M

Total

Llght lndusinal: North Delta 138460 01126 05113 0.3295 0.3828 15.1822 9.6000 0.3128 2.9475 0.2860 0.0005 13.1468 28.3290 1.7985 Ladner 13.8460 0.1 126 0.51 13 0.3545 14.8244 96000 03128 2.9475 0.2860 0.0005 13.1488 27.9712 1.7985 South Delta 13.8460 0 1126 0.5113 0.4263 14.8982 9.6000 0.3128 2.9475 02860 0.0005 13.1460 28.0430 1 7985 Annacls 13.8460 0 1126 0.5113 0.3295 03828 15.1822 9.8000 0 3128 2 9475 0.2860 0.0005 13.1468 28.3290 0.5102

Municipal Tax Levies: (per $1.000 assessed value)

Business: North Delta 12 3045 0.1001 0.4544 0.2929 0.3402 13.4921 9.6000 0.2254 2.1223 0.2860 0.0001 322338 25.7259 1 5983 Ladner 12.3045 0.1001 0.4544 0.3150 13.1740 9.6000 02254 2.1223 0.2860 0.0001 12.2338 25.4078 1.5983 Soulh Delta 12.3045 0.1001 0.4544 0.3788 13.2378 9.6000 0.2254 21223 0.2860 0.0001 12.2338 25.4716 1.5983 Annac~s 12.3045 0.7001 0.4544 02929 03402 13.4921 9.6000 0.2254 2.1223 0.2860 0.0001 12.2338 25.7259 0.4534

Other Tax Levies: (per $1.000 assessed value)

General

Recreation: North Delta 4.3084 0.0350 0.1591 0.1025 0.1191 4.7241 4.5000 0.0920 0.4738 0.0920 0.0002 5.1580 9.8821 0.5597 Ladner 4.3084 0.0350 0.1591 0.1103 4.6128 4.5000 0.0920 0.4738 0.0920 0.0002 5.1580 0.7708 0.5597 South Della 4.3084 00350 0.1591 0 1327 4.6352 4.5000 0.0920 0.4738 0.0920 0.0002 5.1580 9,7932 0.5597

Farm: North Delta 12.0353 0 0979 04445 0.2865 0.3328 13.1970 6.8000 00920 0.4738 00920 0.0002 7.4580 20.6550 1.5633 Ladner 12 0353 0.0979 0.4445 0.3081 12.8858 6.8000 0.0920 04738 0.0920 0.0002 7.4580 20.3438 1.5633 South Delta 12.0353 0.0979 0.4445 0.3705 12.9482 6.8000 0.0920 0.4738 0.0920 0.0002 7.4580 20.4052 1.5633

Total Other School

Major Induslrial: excludes eligible portproperties that are subject to a municipsl tax rate cap of $27.50.

Debt SunGod

Ref Regional Library GVRD BCA GVTA LAD Rec MFA

ND /ANN SD Rec Rec

Total Municipal

In the Matter of the Utilities Commission Act R.S.B.C. 1996, c. 473

Re: British Columbia Transmission Corporation ("BCTC") Project No. 3698395/0rder No. G-70-05

Certificate of Public Convenience and Necessity ("CPCN") Application - Vancouver Island Transmission Reinforcement Project

I, Marcia Newman, Senior Appraiser, of 200 - 11331 Coppersmith Way, fichmond, British Columbia, MAICE OATH AND SAY AS FOLLOWS:

1. I work as a Senior Appraiser at the British Columbia Assessment Authority (the "BCAA"),

on the residential team for fichrnond and Delta. As such, I have personal knowledge of the

facts and matters to whch I depose, except when such knowledge is stated to be on

information and belief, in which case I do verily believe the information to be true.

2. I have worked as an Appraiser with the BCAA for almost 15 years. I have worked in the

capacity of Senior Appraiser for approximately 2 years.

3. In general, the BCAA applies a (downward) adjustment factor to properties whch are under

or adjacent to power h e s , to reflect an associated decrease in market value.

4. Historically, the BCAA has applied an adjustment factor of 10% to the properties on the

right of way in Tsawwassen in whch there are currently two h g h voltage power h e s (the

"RIght of Way"). The power h e s run dtrectly over these properties.

5. During 2005, BCAA was aware of the proposal by the British Columbia Transmission

Corporation (the "BCTCy') to add new, hgher voltage h e s to the fight of Way. In light of

the publicity, controversy and uncertainty associated with h s proposal, it was incumbent on

the BCAA to ensure that the adjustments associated with these power h e s reflected the

current market realities in Tsawwassen as of July 1,2005, the valuation date for the 2006

property assessments.

6. I conducted the analysis necessary to determine the accuracy of the adjustment factor. I

began by plotting all of the properties on or adjacent to the RIght of Way on a large map,

includmg the existing adjustment factors for each property.

Affidavit of Marcia Newman

7. In order to isolate the effect of the power h e s from other factors whch effect market value

(such as traffic), I performed a "paired sales analysis" whch compares the recent s e h g

price of properties whch are under the power h e s , to s d a r properbes in the imrnelate

area whch are not under or adjacent to the power h e s .

8. I compared the s e h g price of 6 pairs of properties, whch were sold on the following dates:

On the fight of Way t o No ~ o w e r h e s July 2005 May 2005 July 2005 August 2005 March 2004 February 2005 January 2004 February 2005 May 2004 June 2005 May 2004 February 2005

9. T h s comparison inlcated a downward adjustment factor ranging from 7% to 23%.

10. Based upon the relative sdar i t ies of the various pairs of properties, I concluded that 20%

was a reasonable estimate of the impact, as of July 1,2005, in assessed value associated with

being located on the fight of Way, underneath the power h e s .

11. I also conducted a paired sales analysis for properties adjacent to the power h e s . By

adjacent, I am referring to properties whch have a power h e very close to the property h e .

12. I analyzed sales prices for 3 pairings of s d a r properties in the imrnelate area. In each

pairing, one property was adjacent to the power lmes, whde the other was not. The sale

dates for the properties whch I compared were as follows:

Adiacent to the h e s t o No ~ o w e r h e s July 2005 January 2004 February 2004 August 2005 July 2005 August 2005

13. Based on &IS analysis, I concluded that a downward adjustment of 10% is a reasonable

adjustment factor to reflect the decrease in property value as of July 1,2005 caused by being

adjacent to the power h e s on the fight of Way.

3 Affidavit of Marcia Newman

14. Finally, I also had to consider the possible effect of traffic. In addtion to being adjacent to

or under the power h e s , certain properties on 53A Street are also adjacent to a considerable

amount of traffic, whch can influence market value. Based on an addtional analysis for

traffic, I concluded that properties on 53A Street must receive an addtional downward

adjustment of 159'0, as a result of the effect of traffic.

15. I also conducted an "assessment to sales ratio" test (the "ASR) to check the accuracy and

equity of the new adjustment factors. In general, the closer the ASR is to 1, the more

accurate and equitable the assessment.

16. For all assessments to whch the new adjustment factors applied, the ASR ranged from 92%

to 96%. T h s suggests that the new adjustment factors provide a reasonable and fair

estimate of property value.

17. In summary, I concluded that, in order to more accurately reflect market value, a 20'7'0

downward adjustment must be applied to the land value for the properties under the power

h e s on the hgh t of Way, and a 10% downward adjustment must be applied to the land

value for the properties adjacent to the power h e s .

18. These updated adjustment factors have been applied to the most recent assessment (2006)

of property values in Tsawwassen.

) SWORN BEFORE ME at

. f f OF a~&r& )

fld&/~/'~AL,~P'<~B~&* ) in the ~ r iv ince of Bgftsh Columbia, t h ~ s /o& )

in and for.the Province of ~r i t i sh Columbia

JOHN D. EASTWOOD NOTARY PUBLIC 5058- 47A Avenue

Delta BC V4K 1T8 664-946-8010