greater vancouver regional district ...friday, october 21, 2016 9:00 a.m. 2 nd floor boardroom, 4330...

GREATER VANCOUVER REGIONAL DISTRICT PERFORMANCE AND AUDIT COMMITTEE

REGULAR MEETING

Friday, October 21, 2016 9:00 a.m.

2nd Floor Boardroom, 4330 Kingsway, Burnaby, British Columbia.

A G E N D A1

1. ADOPTION OF THE AGENDA

1.1 October 21, 2016 Regular Meeting Agenda That the Performance and Audit Committee adopt the agenda for its regular meeting scheduled for October 21, 2016 as circulated.

2. ADOPTION OF THE MINUTES

2.1 July 8, 2016 Regular Meeting Minutes That the Performance and Audit Committee adopt the minutes of its regular meeting held July 8, 2016 as circulated.

3. DELEGATIONS

4. INVITED PRESENTATIONS

5. REPORTS FROM COMMITTEE OR STAFF

5.1 Financial Performance Report as of August 2016 Designated Speaker: Dean Rear That the Performance and Audit Committee receive for information the report titled “Financial Performance Report as of August 2016” dated October 13, 2016.

5.2 Status of Water, Liquid Waste and Solid Waste Capital Expenditures to August 31, 2016 Designated Speaker: Dean Rear That the Performance and Audit Committee receive for information the report titled “Status of Water, Liquid Waste and Solid Waste Capital Expenditures to August 31, 2016” dated September 30, 2016.

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

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Performance and Audit Committee Regular Agenda October 21, 2016

Agenda of 2

5.3 Semi-Annual Report on GVS&DD Development Cost Charges Designated Speaker: Dean Rear That the Performance and Audit Committee receive for information the report titled

“Semi-Annual Report on GVS&DD Development Cost Charges” dated September 21, 2016.

5.4 Investment Position and Returns - May 1 to August 31, 2016 Designated Speaker: Dean Rear That the Performance and Audit Committee receive for information the report titled

“Investment Position and Returns – May 1 to August 31, 2016” dated September 28, 2016. 5.5 Proposed Amendments to the Corporate Investment Policy Designated Speaker: Dean Rear

That the Performance and Audit Committee: a) endorse the Corporate Investment Policy as presented in the report titled “Proposed

Amendments to the Corporate Investment Policy” dated September 29, 2016; and b) forward the report to the Intergovernment and Finance Committee and the GVRD

Board for consideration.

5.6 Tender/Contract Award Information – June to August 2016 Designated Speaker: Tracey Husoy

That the Performance and Audit Committee receive for information the report titled “Tender/Contract Award Information – June to August 2016 dated September 23, 2016”.

5.7 Manager’s Report Designated Speaker: Phil Trotzuk

That the Performance and Audit Committee receive for information the report titled “Manager’s Report” dated October 5, 2016.

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

9. RESOLUTION TO CLOSE MEETING 10. ADJOURNMENT/CONCLUSION

That the Performance and Audit Committee adjourn/conclude its regular meeting of October 21, 2016.

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

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

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

18208974

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Minutes of the Regular Meeting of the GVRD Performance and Audit Committee held on Friday, July 8, 2016 Page 1 of 4

GREATER VANCOUVER REGIONAL DISTRICT PERFORMANCE AND AUDIT COMMITTEE

Minutes of the Regular Meeting of the Greater Vancouver Regional District (GVRD) Performance and Audit Committee held at 9:01 a.m. on Friday, July 8, 2016 in the 2nd Floor Boardroom, 4330 Kingsway, Burnaby, British Columbia. MEMBERS PRESENT: Chair, Mayor Richard Walton, North Vancouver District Vice Chair, Councillor Colleen Jordan, Burnaby Mayor Wayne Baldwin, White Rock Councillor Corisa Bell, Maple Ridge Mayor Malcolm Brodie, Richmond Mayor Jonathan Coté, New Westminster Councillor Charlie Fox, Langley Township Mayor John McEwen, Anmore Councillor Geoff Meggs, Vancouver Mayor Darrell Mussatto, North Vancouver City Councillor Mae Reid, Coquitlam Mayor Michael Smith, West Vancouver MEMBERS ABSENT: Councillor Tom Gill, Surrey STAFF PRESENT: Phil Trotzuk, Chief Financial Officer Carol Mason, Chief Administrative Officer Janis Knaupp, Assistant to Regional Committees, Board and Information Services 1. ADOPTION OF THE AGENDA

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

CARRIED

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wchan

Text Box

2.1


2. ADOPTION OF THE MINUTES 2.1 April 20, 2016 Regular Meeting Minutes

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

CARRIED

3. DELEGATIONS No items presented. 4. INVITED PRESENTATIONS No items presented. 5. REPORTS FROM COMMITTEE OR STAFF 5.1 Presentation – Integrated Systems and Processes

Mary Carmichael, Business Systems Division Manager, Corporate Services, and Linda Sabatini, Finance and Operation Systems Division Manager, Financial Services, provided members with a presentation on key financial systems projects at Metro Vancouver, the linkages with other business applications, and the opportunities for continuous improvement these projects create.

In response to questions, members were informed about the transition to the

new software including testing, implementation, performance indicators, and reporting features .

Presentation material titled “Integrated Systems and Processes Financial

Management System Overview” is retained with the July 8, 2016 Performance and Audit Committee agenda.

It was MOVED and SECONDED That the Performance and Audit Committee receive for information the

July 8, 2016 presentation from Mary Carmichael and Linda Sabatini, regarding Metro Vancouver’s integrated financial systems and processes.

CARRIED 5.2 Financial Performance Report as of May 2016 Report dated June 27, 2016 from Dean Rear, Financial Planning and Operations

Director/Deputy Chief Financial Officer, providing an update on financial performance to the end of May 2016 including a projection to the end of the fiscal year.

Members discussed projections, surplus, debt relative to capital, factors driving

total municipal taxes per capita, and organization of the staff report.

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Request of Staff Staff was requested to reorganize the report on quarterly financial performance to present indicators at the beginning of the report. It was MOVED and SECONDED

That the Performance and Audit Committee receive the report titled “Financial Performance Report as of May 2016”, dated June 27, 2016 for information.

CARRIED 5.3 Investment Position and Returns - January 1 to April 30, 2016 Report dated June 30, 2016 from Dean Rear, Financial Planning and Operations

Director, reporting on Metro Vancouver’s investment performance and related information.

It was MOVED and SECONDED That the Performance and Audit Committee receive the report titled “Investment

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

CARRIED

5.4 Status of Water, Liquid Waste and Solid Waste Capital Expenditures to April 30, 2016

Report dated May 30, 2016 from Dean Rear, Financial Planning and Operations Director, reporting on the status of water, liquid waste and solid waste capital projects presented as a comparison between the total project budgets and total projected expenditures to project completion.

It was MOVED and SECONDED

That the Performance and Audit Committee receive the report titled “Status of Water, Liquid Waste and Solid Waste Capital Expenditures to April 30, 2016”, dated May 30, 2016 for information.

CARRIED 5.5 Tender/Contract Award Information – March to May 2016 Report dated June 17, 2016 from Tracey S. Husoy, Purchasing and Risk

Management Division Manager, Financial Services, providing information with regards to contracts, handled through the Purchasing Division, with a total anticipated value at or in excess of $500,000 (exclusive of tax). It was MOVED and SECONDED That the Performance and Audit Committee receive the report titled “Tender/Contract Award Information – March to May 2016”, dated June 17, 2016 for information.

CARRIED

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5.6 Manager’s Report Report dated June 21, 2016 from Phil Trotzuk, Chief Financial Officer, updating

the Performance and Audit Committee on the Committees 2016 Work Plan.

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

CARRIED 6. INFORMATION ITEMS No items presented. 7. OTHER BUSINESS No items presented. 8. BUSINESS ARISING FROM DELEGATIONS No items presented.

9. RESOLUTION TO CLOSE MEETING No items presented. 10. ADJOURNMENT/CONCLUSION

It was MOVED and SECONDED That the Performance and Audit Committee conclude its regular meeting of July 8, 2016.

CARRIED (Time: 9:55 a.m.)

____________________________ ____________________________ Janis Knaupp, Richard Walton, Chair Assistant to Regional Committees 18758897 FINAL

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To: Performance and Audit Committee From: Dean Rear, Director - Financial Planning & Operations Date: October 13th, 2016 Meeting Date: October 21, 2016 Subject: Financial Performance Report as of August 2016 RECOMMENDATION That the Performance and Audit Committee receive for information the report titled “Financial Performance Report as of August 2016” dated October 13th, 2016. PURPOSE To present the Committee with an update on financial performance to the end of August 2016 including a projection to the end of the fiscal year. BACKGROUND The Performance and Audit Committee Terms of Reference requires that the Committee be provided, three times per year, an update on the actual financial performance of the Metro Vancouver Districts and Metro Vancouver Housing Corporation with the report on the year-end results also sent to the Board. Year-to-date results as presented are based on the actual results for the first eight months of the year with the main focus on the projections to year-end. This is the second of such reports for 2016. HIGHLIGHTS Overall, the Districts and Housing Corporation are projecting a surplus position of approximately $21.3 million for the 2016 fiscal year. The overall projected surplus is mainly due the deferral of some operating and capital projects, staff vacancies, savings in miscellaneous operating costs and slightly lower debt service costs in the utilities. More detailed information by district and/or function is included in Attachment 1.

The breakdown of the overall $21.3 million projected 2016 surplus, by district/function is as follows:

Regional District - $1.8 million

Water District - $7.8 million

Liquid Waste - $7.2 million

Solid Waste - $3.0 million

Housing - $1.5 million

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

5.1

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The Water District’s projected surplus is largely the result of expenditure savings due to the delay and/or deferral of some operating projects along with projected under spends from staff vacancies. The Liquid Waste projected surplus in 2016 is primarily due to deferral of some minor capital work and some savings in debt service costs funded by operations. In addition, there are some projected savings in miscellaneous operating costs along with under spends on labour due to staff vacancies. In Solid Waste, higher than expected waste flows and revenues combined with management of expenditures has led to projected results more favourable than anticipated when compared to the approved 2016 budget. Initially a draw from reserves of $2.2 million was budgeted for expected revenue shortfalls, however, at this point, a projected surplus of $3.0 million is projected for 2016. The Housing Corporation has a surplus net income position primarily due to higher than projected rental revenues combined with projected operating expenditure levels at slightly less than budget. In addition to the above surpluses, corporate programs are also projecting a surplus position for 2016 of approximately $7.3 million primarily due to savings in building renovation costs, higher tenant recoveries than budget and underspending due to staff vacancies as recruitment continues. FINANCIAL INDICATORS The table below summarizes the list of financial indicators used to show Metro Vancouver’s ability to provide services to the region on a sustainable basis. Detailed calculations and explanations are included Attachment 1.

2015 Actual

2016 Projected

Municipal Property Tax and Levies/Total Revenue 36.0% 36.6%

Debt Service Costs/Total Revenue 18.2% 18.5%

Interest Costs/Total Revenue 7.0% 7.3%

Operating Reserves /Total Revenue 10.8% 9.8%

Total Municipal Taxes, Water, Sewer and Solid Waste Charges Per Capita $227 $234

ALTERNATIVES This report is provided for information. No alternatives are presented. FINANCIAL IMPLICATIONS This report provides information on projected results for 2016 operations which, at this time, shows an overall year-end projected surplus of $21.3 million. This surplus would be available in future years to either avoid debt or pay for regional projects thereby reducing the funding requirements. Should circumstances change and this projected surplus vary, this would impact the ability to reduce future funding requirements.

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SUMMARY / CONCLUSION The 2016 projected financial results to year-end for all the Metro Vancouver entities and functions are either on or favourable to budget. Attachments and References: Attachment 1 - 2016 Financial Performance as of August 2016 19417216

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Greater Vancouver Districts

2016 Financial Performance As of August 2016

October 2016

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Table of Contents

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

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

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

• Sewerage & Drainage District Summaries

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

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

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

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

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

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

Year to Date - August 31st

Budget Actuals Variance

DISTRICT / CORPORATION

Regional DistrictRevenue 61,363,099 62,752,489 1,389,390 Expenditure 46,416,307 41,275,923 5,140,384 Surplus (Deficit) 14,946,792 21,476,566 6,529,774

Water DistrictRevenue 173,583,806 175,168,774 1,584,968 Expenditure 185,058,404 174,619,511 10,438,893 Surplus (Deficit) (11,474,598) 549,263 12,023,861

Sewerage and Drainage District Liquid Waste

Revenue 207,497,980 209,103,101 1,605,121 Expenditure 162,190,951 150,389,928 11,801,023 Surplus (Deficit) 45,307,029 58,713,174 13,406,145

Solid WasteRevenue 59,264,302 63,639,280 4,374,978 Expenditure 60,772,722 60,385,996 386,726 Surplus (Deficit) (1,508,420) 3,253,284 4,761,704

MV Housing CorporationRevenue 27,041,262 28,157,756 1,116,494 Expenditure 26,802,151 25,985,235 816,916 Surplus (Deficit) 239,111 2,172,521 1,933,410

Consolidated Surplus (Deficit) 47,509,914 86,164,808 38,654,894

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

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

2016 Year End ProjectionProjected

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

DISTRICT / CORPORATION

Regional DistrictRevenue 70,183,943 69,887,545 (296,398) (0.4%)Expenditure 70,183,943 68,033,456 2,150,487 3.1%Surplus (Deficit) - 1,854,089 1,854,089 -

Water DistrictRevenue 254,419,317 256,049,362 1,630,045 0.6%Expenditure 254,419,317 248,255,018 6,164,299 2.4%Surplus (Deficit) - 7,794,344 7,794,344 -

Sewerage and Drainage District Liquid Waste

Revenue 216,126,662 217,740,495 1,613,833 0.7%Expenditure 216,126,662 210,554,046 5,572,616 2.6%Surplus (Deficit) - 7,186,449 7,186,449 -

Solid Waste Revenue 90,799,623 100,419,969 9,620,346 10.6%Expenditure 90,799,623 97,460,577 (6,660,954) (7.3%)Surplus (Deficit) - 2,959,392 2,959,392 -

MV Housing CorporationRevenue 40,572,020 41,355,020 783,000 1.9%Expenditure 40,572,020 39,880,802 691,218 1.7%Surplus (Deficit) - 1,474,218 1,474,218 -

Consolidated Surplus (Deficit) - 21,268,492 21,268,492 -


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Greater Vancouver Districts Regional Function's Surplus (Deficit)

For the period ended August 31, 2016

Year to Date - August 31st

Budget Actuals Variance

FUNCTION

911 Emergency TelephoneRevenue 4,106,012 4,128,705 22,693 Expenditure 3,074,937 3,038,192 36,745 Surplus (Deficit) 1,031,075 1,090,513 59,438

Air Quality Revenue 5,570,313 6,136,285 565,972 Expenditure 5,534,042 4,370,915 1,163,127 Surplus (Deficit) 36,271 1,765,369 1,729,098

General GovernmentRevenue 11,346,134 12,041,040 694,906 Expenditure 9,542,144 7,500,602 2,041,542 Surplus (Deficit) 1,803,990 4,540,438 2,736,448

Labour Relations Revenue 2,345,795 2,336,899 (8,896) Expenditure 1,730,688 1,367,362 363,326 Surplus (Deficit) 615,107 969,537 354,430

Regional GPSRevenue 348,336 369,861 21,525 Expenditure 499,216 388,114 111,102 Surplus (Deficit) (150,880) (18,253) 132,627

Regional ParksRevenue 33,863,193 33,940,883 77,690 Expenditure 23,336,146 22,495,438 840,708 Surplus (Deficit) 10,527,047 11,445,446 918,399

Regional PlanningRevenue 3,069,324 3,105,751 36,427 Expenditure 2,241,298 1,697,506 543,792 Surplus (Deficit) 828,026 1,408,244 580,218

Electoral Area Revenue 430,182 404,252 (25,930) Expenditure 278,620 265,754 12,866 Surplus (Deficit) 151,562 138,498 (13,064)

Sasamat Volunteer Fire Dept.Revenue 283,810 288,813 5,003 Expenditure 179,216 152,040 27,176 Surplus (Deficit) 104,594 136,773 32,179

Regional Surplus (Deficit) 14,946,792 21,476,566 6,529,774


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Greater Vancouver Districts Regional Function's Surplus (Deficit)

For the period ended August 31, 2016

2016 Year End ProjectionProjected %

Annual* Year End Year End VarianceBudget Forecast Variance to Budget

FUNCTION

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

Air Quality Revenue 9,188,196 9,106,627 (81,569) (0.9%)Expenditure 9,188,196 8,759,196 429,000 4.7%Surplus (Deficit) - 347,431 347,431 3.8%

General Government Revenue 14,339,541 14,339,541 - 0.0%Expenditure 14,339,541 13,539,541 800,000 5.6%Surplus (Deficit) - 800,000 800,000 5.6%

Labour Relations Revenue 2,614,348 2,614,348 - 0.0%Expenditure 2,614,348 2,474,348 140,000 5.4%Surplus (Deficit) - 140,000 140,000 5.4%

Regional GPS Revenue 754,316 644,316 (110,000) (14.6%)Expenditure 754,316 629,316 125,000 16.6%Surplus (Deficit) - 15,000 15,000 2.0%

Regional Parks Revenue 34,428,648 34,261,065 (167,583) (0.5%)Expenditure 34,428,648 34,010,499 418,149 1.2%Surplus (Deficit) - 250,566 250,566 0.7%

Regional Planning Revenue 3,312,924 3,349,351 36,427 1.1%Expenditure 3,312,924 3,113,684 199,240 6.0%Surplus (Deficit) - 235,667 235,667 7.1%

Electoral Area Revenue 551,346 577,673 26,327 4.8%Expenditure 551,346 531,346 20,000 3.6%Surplus (Deficit) - 46,327 46,327 8.4%

Sasamat Volunteer Fire Dept. Revenue 867,826 867,826 - 0.0%Expenditure 867,826 867,826 - 0.0%Surplus (Deficit) - - - 0.0%

Regional Surplus (Deficit) - 1,854,089 1,854,089 0


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Greater Vancouver Districts 2016 Financial Performance

District Summaries

Greater Vancouver Regional District The Regional District at the end of August 2016 is in a surplus position of approximately $6.5 million. This surplus is due to the timing of actual expenditures being slower than that anticipated in the budget primarily in General Government, Regional Parks, Regional Planning, Air Quality, and Labour Relations functional areas. At this time, it is expected that the majority of the delayed expenditures will be incurred by year-end and the surplus will be reduced to close to $1.8 million for the year, which would be primarily due to staff vacancies and reductions in Board and Committee meeting costs. 911 Emergency Telephone E911 is in a surplus position of $59,000 due to savings in E-Comm contract fees, timing of some expenditures and the timing of the billing to Whistler and the Sunshine Coast. E911 is projecting a surplus of approximately $19,000 by the end of the year as a result of contract fee savings. Air Quality At the end of August, Air Quality is in a surplus position of $1.7 million primarily due to staff vacancies, a late start in some consulting studies and timing in the receipt of Non Road Diesel Engine permit fees. The function is projected to be in a surplus position of approximately $347,000 by year end due primarily to savings generated from position vacancies during the year. General Government General Government is in a surplus position of approximately $2.7 million at the end of August, due to the timing of expenditures. The Homelessness Partnering Strategy (HPS) program is currently in a surplus position of $1.4M due to the timing of projects and related funding. The HPS program is fully funded by the federal government and is expected to be on budget at year end. While the majority of the initiatives are expected to be completed by year end, the function is projecting a surplus of close to $800,000 for 2016 due primarily to Board and Committee meeting cost savings. Labour Relations Labour Relations is in a surplus position of close to $354,000 at the end of August due to staff vacancies from staff on leave, savings on legal due to settlements without interest arbitrations and savings in consulting due to timing of deliverables. At year end, Labour Relations is projecting a surplus of $140,000 due to under spends from current staff vacancies and no interest arbitrations. Regional Global Positioning System (GPS) GPS for 2016 is forecasting a surplus of $15K mainly due to higher than expected subscription fees. Expenditures are under budget due to monument survey being lower than anticipated, resulting in lower application of reserves.

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Regional Parks Regional Parks is in a surplus position at the end of August of approximately $918,000. The main contributing factors to the surplus include delay in filling staff vacancies, the deferral of some consulting work until later in the year, and deferral in some work at Burns Bog including the Delta Nature Reserve. Revenue is on track at the moment due to the exceptional summer months for facility rentals and camping, which offset less filming revenues received than expected and some delays in lease revenues billing. At this time, while it is expected that most delayed expenditures will be incurred by year end and some of the vacancies will be filled, Regional Parks is still expected to be in a surplus position of approximately $251,000 for the year. Regional Planning As of the end of August, Regional Planning is in a surplus position of approximately $580,000 primarily due to staff vacancies and a delay in consulting studies. As the delayed consulting expenditures are expected to be spent by yearend and the vacant positions are expected to be filled in the latter part of 2016, Regional Planning is projecting to finish the year with an approximate $236,000 surplus. Electoral Areas Electoral Areas is currently in a deficit position of approximately $13,000 due to an unexpected building permit refund, offset by labour cost savings. Electoral Areas is projecting a surplus position of approximately $46,000 at year end due to labour savings and receipt of a Regional District Grant. Sasamat Volunteer Fire Department Sasamat Volunteer Fire Department is currently in a surplus position of approximately $32,000 as a result of timing of actual expenditures being slower than expected compared to budget. As the expenditures are expected to be incurred by year end, the function is projecting to be on budget.

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Greater Vancouver Water District The Water District is in a surplus position of approximately $12 million as at the end of August. The District, however, is projecting this surplus to reduce to approximately $7.8 million by year end. Water District revenues are currently $1.6 million in excess of budget. Water consumption levels were essentially on budget for the first eight months of 2016. It is estimated that the revenue surplus at year end will be remain essentially the same at $1.6 million assuming water consumption levels remain at budget for the remainder of the year. Water District expenditures are currently $10.4 million below budget due primarily to operating staff vacancies, and delays in several operations and maintenance projects. While is it expected that some of the deferred expenditures will be incurred prior to year-end, the majority of the savings will continue resulting in a projected expenditure surplus of approximately $6.2 million for 2016.

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Greater Vancouver Sewerage and Drainage District Liquid Waste Liquid Waste is anticipating a surplus of approximately $7.2 million primarily due to lower than expected operational and debt service costs that are less than budgeted. The projected surplus can be split as follows: Fraser Sewer Area $4.3 million, Lulu Island Sewer Area $0.5 million, Vancouver Sewer Area $1.8 million, North Shore Sewer Area $0.4 million and Drainage Areas at $0.2 million. Operational costs to the end of August are approximately $10.3 million under spent compared to budget due primarily to delays for minor capital, quality control, maintenance, wastewater treatment and residuals costs along with several staff vacancies currently being recruited. Operational costs are expected to be approximately $3.0 million under spent by year end due primarily to some planned minor capital work costs now deferred along with some staff vacancy and other operational cost savings in the quality control, management and planning program areas. Debt servicing is currently under budget by $1.5 million to the end of August and is expected to have a projected surplus of approximately $2.6 million by year end due to lower borrowing requirements. Revenues are currently better than budget by $1.6 million at the end of August with the same surplus of around $1.6 million expected at year end primarily due to the application of more development cost charge revenue as a result of higher than expected growth capital debt charges. Solid Waste For 2016, the Solid Waste function is continuing to experience higher than projected waste flows in the system due to a number of factors including the change to differential tipping fees in 2015 and temporary restrictions at the EcoWaste Landfill in Richmond. This is expected to result in a projected final surplus position of approximately $3.0 million for 2016. The expected $11.9 million increase in revenues will be offset by a $6.7M million increase in expenses (primarily due to expenses related to the higher than expected waste flows). The difference of $5.2 million projected by year end is helping to offset the $2.2million budgeted deficit. Though system waste flows continue to appear to be strong, a number of remaining uncertainties such as the landfill closure liability levels, Vancouver Landfill operating costs as well as Wastech operating costs along with any further changes in waste flows may impact the final 2016 results.

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Metro Vancouver Housing Corporation (MVHC) As at August 31, 2016, the MVHC is in a surplus position of approximately $1,900,000. This is typical at this point in the year, as many operating expenses are delayed to the latter part of the year. As the delayed expenditures are incurred, the surplus is expected to decline to approximately $1,474,000 by year-end. Any surplus from operations is allocated to reserves each year, providing an important and essential source of internal funding for the long-term capital plan. Revenues for the first eight months are approximately $1,100,000 ahead of budget. This is due to higher than budgeted rental increases, tenant rental subsidies received in advance and fewer vacancies. The year-end revenue surplus projected to be slightly more than budget by approximately $780,000 with reduction from subsidy funding and year-end adjustments. Expenditures through August are approximately $820,000 less than budget largely due to maintenance expenditures that are weighted more heavily in the latter part of the year and some labour surplus due to position vacancies. As the delayed expenditures are incurred, the overall actual expenditures are expected to be approximately $690,000 less than budget by year end. The 2016 capital program included an annual budget of $11.7 million for capital replacement expenditures and development. As at August 31, 2016, approximately $3.9 million was spent for capital replacement; the program is expected to be on budget by year end. For the development program, MVHC is waiting for final development approvals, $167,000 of the $5,650,000 budget has been spent and anticipate the year-end forecast to be under $400,000 as construction work has been delayed to early 2017. The 2016 MVHC capital and development programs are funded from reserves so they have no impact on operations. Corporate Programs Overall, Corporate Programs are in a surplus position of approximately $3.9 million at the end of August. This surplus is largely due to savings in building renovation costs, higher tenant recoveries, staff vacancies from delays in recruiting and savings from the Employer Transit Commuter Program. The overall projected surplus for Corporate Programs will be approximately $7.3 million due primarily to renovation cost savings, higher tenant recoveries, savings generated under the Employee Trip Reduction Program and by some staff vacancies in Financial Services. Corporate Planning Corporate Planning is currently close to $100,000 under budget primarily as a result of staff vacancies. The function is forecast to be approximately $20,000 under budget by year end. External Relations External Relations is currently in a surplus position of approximately $460,000 primarily due to several temporarily vacant positions currently being recruited. The function is forecast is to be $100,000 under budget by year end. Human Resources The Human Resources department is currently under budget by approximately $260,000 due to several senior staff vacancies and delays in some recruitment initiatives. By year end, Human Resources is projected to be close to budget.

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Financial Services The Financial Services department is in a surplus position of approximately $845,000 to date due primarily to staff vacancies currently being recruited and the timing of some budgeted expenditures being slightly different from budget. The surplus for Financial Services is projected to be approximately $293,000 by year end. Legal and Legislative Services Legal and Legislative Services is currently in a surplus position of approximately $165,000 to date due to delayed expenditures regarding the Information Management program and lower than anticipated expenditures for Aboriginal Relations. As the expenditures are expected to be spent, the department is projecting a small surplus of close to $32,000 by year end. Corporate Services Corporate Services is currently in a surplus position of approximately $2.1 million through Aug 2016, and is forecasting a $6.9 million surplus by year end primarily due to savings of $4.6 million in renovation costs no longer required at Kingsway and Kathleen due to the upcoming move to Metrotower III and tenant recoveries, rent at Metrotower III being $2.4 million greater than budget. Building Operations and Corporate Safety, Security and Emergency Management services are currently under budget by approximately $2.6 million primarily due to some head office renovation projects not required due to the move to Metrotower III in 2017. Two Corporate Safety, Security and Emergency Management programs are projecting to be over budget by year end: Safety, Security and Emergency Management (SSEM) Regulatory Training is projecting a $90,000 year end variance, and Corporate Safety Accident Prevention is projecting a $32,000 year end variance. Building Operations is forecasting to be close to budget by year end. However, Building Operations Capital is expected to be under budget by close to $4.6 million due to the renovations no longer required. Information Technology (IT) services are currently in a deficit position of $450,000. This is due to the timing of consulting and software purchases for major projects such as FMS, and transition costs for new cell provider. At the end of the year IT is expected to have a surplus of approximately $100,000 due to deferred asset purchases. The Employee Trip Reduction Program became the Employer Transit Commuter Program with the introduction of Translink’s Compass Card and the elimination of FareSavers. As a result there has been a decrease in the number of users of the program. There is a projected yearend forecast of $385,000 surplus in the program.

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Greater Vancouver Districts

Financial Indicators

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

2014 Actual 2015 Actual 2016 Budget 2016 Projected

Total Property tax/levies $226,403,503 35.1% $232,429,444 35.5% $239,867,949 36.0% $250,542,028 37.3% $250,542,028 36.6% Total Revenue** $644,494,910 $653,970,533 $666,212,758 $671,540,885 $685,452,391 The GVRD has a reasonably well diversified revenue base. Some revenue streams such as Water Sales and Solid Waste User Fees are subject to fluctuations during the year. 2) i) Debt Service Costs/ Total Revenue This is the percentage of revenue committed to payment of interest and principal on temporary and long-term debt for the regional, sewer, solid waste and water operations. A high percentage indicates greater use of revenues for the repayment of debt, and less ability to adjust to unplanned events and changing circumstances. 2013 Actual


Debt Service Costs $131,044,950 20.3% $122,877,075 18.8% $121,415,131 18.2% $130,342,604 19.4% $126,763,632 18.5% Total Revenue** $644,494,910 $653,970,533 $666,212,758 $671,540,885 $685,452,391 **2016 Budget includes budgeted reserve, surplus carry-forward items or other additional reserve applications as approved by the Board.

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


Interest Costs $54,875,391 9.6% $49,744,618 7.6% $46,884,034 7.0% $53,651,849 8.0% $50,084,316 7.3% Total Revenue** $644,494,910 $653,970,533 $666,212,758 $671,540,885 $685,452,391 Both debt service costs and interest costs as a percentage of revenue are down compared to current budget (and also lower to prior years with the exception of 2015) indicating less of revenues are required to service outstanding debt (principal and interest) and more is available to fund priority projects. 3) Operating Reserves/ Total Revenues Reserve levels are an indicator of financial strength since they provide the ability to meet unforeseen expenditures or revenue losses. 2013 Actual


Operating Reserves $74,092,908 11.5% $77,547,061 11.9% $71,660,837 10.8% $47,906,912 7.1% $67,426,513 9.8% Total Revenue** $644,494,910 $653,970,533 $666,212,758 $671,540,885 $685,452,391 Projected operating reserve levels are slightly higher than that projected in the current budget but are down from the prior years’ reserve levels. The level of operating reserves remains adequate to meet potential unexpected contingencies. **2016 Budget includes budgeted reserve, surplus carry-forward items or other additional reserve applications as approved by the Board.

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

Per

Capita 2014 Actual Per

Capita 2015 Actual

Per

Capita 2016 Budget Per

Capita 2016 Projected

Per

Capita Total Tax Revenue *** $548,156,267 $224 $559,403,266 $225 $571,024,515 $227 $582,381,980 $228 $596,155,985 $234 Total Population **** 2,449,022 2,485,132 2,513,869 2,551,577 2,551,577

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

Columbia, December 2015.

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To: Performance and Audit Committee From: Dean Rear, Director, Financial Planning and Operations Date: September 30, 2016 Meeting Date: October 21, 2016 Subject: Status of Water, Liquid Waste and Solid Waste Capital Expenditures to

August 31, 2016

RECOMMENDATION That the Performance and Audit Committee receive for information the report titled “Status of Water, Liquid Waste and Solid Waste Capital Expenditures to August 31, 2016” dated September 30, 2016.

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

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ALTERNATIVES This report is provided for information. No alternatives are presented. FINANCIAL IMPLICATIONS Net capital expenditures, after applying available pay-as-you-go financing, are funded through long-term debt from the Municipal Finance Authority. This results in debt service costs, for the term of the debt, which must be funded annually through the water rate, sewer levy or tipping fee as appropriate. If capital expenditures are lower than budget for the year, the result is less required borrowing leading to a budget surplus due to savings in debt service costs. The surplus, by policy, will be applied to fund future capital expenditures thereby reducing the need to borrow. Any favourable variances to budget for approved capital projects is not redirected to other projects but is essentially dollars not spent. Each project proceeds on the individual projects’ approved budgets. Ongoing Capital Projects: The Water District is projecting to spend $37.3 million (2.2 %) less than the approved total project budgets for those projects in progress and included in Schedule 1. The Sewerage and Drainage District - Liquid Waste Services is projecting to spend $30.4 million (2.7 %) less than the approved total project budgets for those projects in progress and included in Schedule 2. The Sewerage and Drainage District - Solid Waste Services is projecting to spend $3.0 million (8.4 %) less than the approved total project budgets for those projects currently in progress and included in Schedule 3. Completed Capital Projects: These are projects that have been completed during 2016, some of which may have extend over multiple years. Overall, the Water District, Sewerage and Drainage District - Liquid Waste and Sewerage and Drainage District - Solid Waste projects in this category are under spent by $0.1 million (0.8 %), $5.8 million (21.3 %) and $3.2 million (33.7 %), respectively. SUMMARY / CONCLUSION This is the second in a series of three capital expenditure progress reports for 2016. The Board will see this information through individual reports to the Utilities and Zero Waste Committees. Both the Water District and Sewerage and Drainage District were under or essentially on budget for those projects completed as at August 31, 2016 and are projecting the same for ongoing projects when they complete. Economic Impact While a significant investment in infrastructure for the GVWD and GVS&DD, the projects identified in Schedules 1 and 2 represent approximately 5,580 person years of employment and, over their life (development and construction) and make up approximately $507 million of the Gross Domestic Product of the region. Attachments and References: Appendix A: Capital Expenditure Summary Information as at August 31, 2016 Appendix B: Capital Project Status Information as at August 31, 2016 Schedule 1: Water District Capital Expenditures Schedule 2: Sewerage & Drainage District - Liquid Waste Capital Expenditures Schedule 3: Sewerage & Drainage District - Solid Waste Capital Expenditures 19409312

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APPENDIX A

Capital Expenditure Summary Information As at August 31, 2016

Ongoing Projects

Total Projected Expenditures to

Completion ACE/ Total Budget

Projected

Variance

Water $1,670,820,000 $1,708,099,822 $37,279,822

Liquid Waste 1,079,555,502 1,109,907,377 30,351,875

Solid Waste 32,900,000 35,900,000 3,000,000

Total Ongoing Projects: $2,783,275,502 $2,853,907,199 $70,631,697

Completed Projects Total Actual Expenditures ACE/ Total Budget

Variance

Water $8,780,508 $8,850,000 $69,492

Liquid Waste 21,456,709 27,250,000 5,793,291

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

Total Completed Projects: $36,465,310 $45,500,000 $9,034,690

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Capital Project Status Information

August 31, 2016

1. GREATER VANCOUVER WATER DISTRICT - Water Services

Major GVWD capital projects are generally proceeding on schedule and within budget. The following capital program items and exceptions are highlighted:

i) Drinking Water Treatment Program

• All of the major construction contracts for the Seymour-Capilano Filtration Plant and Coquitlam Water Treatment Plant are complete. The respective facilities are commissioned and in service.

ii) Infrastructure Growth Program

Coquitlam Intake No. 2 – A new intake, transmission tunnel and treatment facilities are proposed at the Coquitlam Reservoir to increase the supply capacity from this source. The Project Definition phase is underway. The Request for Proposals for project definition has closed and is being evaluated.

• Barnston/Maple Ridge Pump Station – This project comprises design and construction of a new pump station to provide water to Maple Ridge via Haney Main No. 2 and Maple Ridge Main West, and to Langley and Surrey via the Barnston Island Main. Construction of the Barnston/Maple Ridge Pump Station is complete and the pump station is operational.

• South Delta Main No. 1 Replacement – This project comprises replacement of the existing water main with a new main on 52nd Street from 12th Avenue to 28th Avenue (Phases 1 and 2), and on 53rd Street from 28th Avenue to 34B Avenue (Phase 3). Phase 1 pipe installation adjacent to the new Tsawwassen Mills Mall is complete. The Phase 2 construction contract has been awarded to JJM Construction Ltd. and mobilization is anticipated for October 2016.

• Fleetwood Reservoir – Phase 1 of the Fleetwood Reservoir project includes a 13.6 ML reservoir, chamber, piping, access building and associated work located at Meagan Ann MacDougall Park in the City of Surrey. The conceptual/preliminary design was completed in March 2016. Detailed design is in progress and is scheduled to complete in spring 2017.

• Jericho Reservoir – Phase 1 of the Jericho Reservoir project includes a 19.55 ML reservoir, chambers, piping and associated work located in the Township of Langley. The conceptual/preliminary design was completed in June 2016. Detailed design is scheduled to start in fall 2016 and be complete in summer 2017.

• Annacis Water Supply Tunnel – A 2.3 km long water supply tunnel is required under the Fraser River to meet growing demand in local governments south of the Fraser and to provide increased system resiliency. Preliminary design was awarded to Hatch Mott MacDonald and

APPENDIX B

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work began in January 2016. Property acquisition for the shaft sites in New Westminster and Surrey continues. The geotechnical drilling program is now complete and analytical work is underway.

• Port Mann Main No. 2 (North) – This 2.5 km long 1.5 m diameter steel water main will twin the existing Port Mann Main to meet growing water demand south of the Fraser River. Construction of the new main between the Cape Horn Pump Station and Reservoir near Mariner Way and the new Port Mann Water Supply Tunnel commenced in October 2015 and is well underway. Tunneling under the Mary Hill Bypass is complete and preparations for the trenchless crossings of Lougheed Highway and the CP Rail tracks are well underway.

• Capilano Main No. 5 (South Shaft to Lost Lagoon) – This 1.8 km long steel water main will twin the existing Capilano Main No.4 through Stanley Park to meet growing water demands and provide increased system resiliency. Preliminary design is currently underway with the assessment of route options and construction methods through the park. The final selection of pipe diameter will depend on the feasibility of rehabilitation options for the existing Capilano Main No.4.

iii) Infrastructure Maintenance Program

• Douglas Road Main No. 2 – Still Creek Section - This project comprises approximately 2.5 km of 1500 mm steel pipe with trenchless crossings of Highway 1 and the BNSF rail line. The project team has engaged multiple stakeholders including the City of Burnaby and private landowners to determine the water main route alignment. Predesign is anticipated to be complete in early 2017.

• E2 Shaft Replacement – The E2 Shaft, which has controlled ground water pressures in the East Abutment of Cleveland Dam since the 1950’s is nearing the end of its service life and needs to be replaced by a system of horizontal drains. Drilling of the first horizontal drain to replace the E2 drainage shaft was completed early this year and testing of the effectiveness of this drain is now complete. Up to 6 additional drains may be required. A contract to drill up to 3 additional drains has recently been awarded to Jensen Drilling and work is expected to commence in late September.

• Cleveland Dam Drum Gate Resurfacing Project - The Cleveland Dam is a concrete gravity structure that has been in service since 1954. A drum gate located at the top of the spillway controls the discharge from Capilano Lake. Recoating of the drum gate commenced in August 2016 and is scheduled for completion by mid-October 2016.

• Fisherman’s Trail Bridge Crossing Project - Twin Bridge was removed after the 2014 Seymour Canyon Rockslide caused the river to rise above the bridge abutments, thereby rendering the bridge unusable. Associated Engineering was retained in August 2016 to complete an access assessment report and provide both conceptual and detailed design. Stakeholders have been involved in two public meetings on the progress of the project and construction is anticipated to commence in 2017.

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iv) Infrastructure Risk Management Program

• Port Mann Water Supply Tunnel – The 1 km long, 3.5 m diameter water supply tunnel under the Fraser River between Coquitlam and Surrey is required to replace the aged and vulnerable Port Mann Main No. 1 marine crossing. Construction of the Port Mann Water Supply Tunnel is substantially complete. The contractor is currently installing electrical systems in the north and south valve chambers and commencing site restoration. Overall project completion, including connections to the existing system by Metro Vancouver crews is scheduled for late 2016.

• Coquitlam Bulk Sodium Hypochlorite Conversion – This project comprises the conversion of the existing gaseous chlorine storage, feed, and injection systems with a new liquid sodium hypochlorite storage and feed system. The work has commenced with completion anticipated for spring 2017.

• Second Narrows Water Supply Tunnel – A 1.1 km long, 6 m diameter water supply tunnel is required under Burrard Inlet, between North Vancouver and Burnaby, to replace existing aged and seismically vulnerable crossings and provide additional long term supply capacity. Detailed design of the Second Narrows Water Supply Tunnel is progressing well, and is scheduled to be complete late summer 2017. Relocation of Water Services facilities at the north shaft site at Beach Yard in the District of North Vancouver has begun and an update meeting regarding work at the south shaft site was held with City of Burnaby staff in late July.

• Capilano Main No. 9 – This project comprises construction of approximately 1.9 km of 2.1 m diameter steel pipe water main with associated appurtenances on Capilano Road in the District of North Vancouver. Installation of Capilano Main No. 9 was completed in March 2016 and the new water main was put into service in May 2016. Asphalt restoration and line painting between Mount Crown Road and Capilano River Regional Park was completed during summer 2016. Construction of the crossover chamber on Edgemont Boulevard is scheduled to commence in November.

• Mackay and Grouse Creeks Debris Flow Mitigation – Detailed design for this project was awarded to BGC Engineering Inc. A kick-off meeting was recently held with the design consultant and Grouse Mountain Resorts to ensure coordination of design and field activities. Exploratory drilling is expected to commence in October.

• Marine Crossings – Phase 1 Conceptual Design - In the fall of 2015 an assignment was awarded for phase 1 conceptual design for two new marine water supply crossings; Cambie-Richmond crossing of the north arm of the Fraser River between Vancouver and Richmond and the Haney Main crossing of the Pitt River between Port Coquitlam and Pitt Meadows. Data collection is complete and a workshop to review options has been held. This project is on schedule to be completed late this year.

• Clayton Reservoir – The project includes a new 22.5 ML water reservoir located at 72nd Avenue and 190th Street in Surrey that will increase the storage capacity and replace the existing Clayton Tank. Detailed design of the new Clayton Reservoir is now complete and the construction tender is closing in late September.

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v) Infrastructure Upgrade Program

• Lynn Valley Reservoir – This project includes a 1.0 ML water reservoir, chamber, piping and associated work, located at the northwest corner of the Seymour-Capilano Filtration Plant site in North Vancouver. Construction of the new Lynn Valley Reservoir is substantially complete and the reservoir is scheduled for service in early October.

• Queensborough Main - Ewen Ave Replacement – This project consists of replacing the existing Queensborough Main No. 1 with 2,000 m of new 600 mm diameter ductile iron pipe. Phases 1 and 2 of the work are substantially complete with tie-ins to the existing system anticipated to be completed by spring 2017.

2. GREATER VANCOUVER SEWERAGE & DRAINAGE DISTRICT - Liquid Waste Services

Major GVS&DD liquid waste capital projects are generally proceeding on schedule and within budget. The following capital program items and exceptions are highlighted:

i) Infrastructure Growth Program

• FSA – Northwest Langley WWTP Phase 1 Upgrade – The project expands treatment capacity with three new clarifiers, activated sludge tank, pumping station, 23kV substation and process control building. Construction works are now completed. The owner commissioning phase is nearing completion and will be followed by the submission of final acceptance and project closure documentation, anticipated to be September 30, 2016. Plant staff have been fully trained by the consultant and contractor on the new process units and have gained valuable operating experience in the last 4 months during the owner commissioning phase. The new facility will be formally handed over to the O&M staff on October 1, 2016.

• FSA – Burnaby Lake North Interceptor – Construction of the twinning of the Sperling Section including final repaving is complete. Preliminary design of Phase 2 and 3 of the twinning project and stakeholder engagement are underway. Alignment alternatives within Burnaby Lake Park and tunneling option under Winston Street are being investigated. An assessment of alignment alternatives is being completed including traffic, environmental and business disruption impacts and constructability challenges is underway. It is expected that a preferred alignment will be presented to the City of Burnaby in early 2017, after which preliminary design will proceed.

• FSA – North Surrey Interceptor, 104th Avenue Section – Pipe installation has been completed along the South Fraser Perimeter Road (SFPR), completed as part of the SFPR construction. Tie-ins to the existing system on the east side is expected to be complete in September. Tendering for the remaining 520 m western section construction will occur in early 2017. Project is expected to be complete by the end of 2017.

• FSA – Annacis Island WWTP Outfall – This project involves identifying solutions for the transient/surge impacts that may occur in the wastewater collection and treatment plant influent system in the event of a power outage, and assessing options to increase capacity of the outfall for growth. Pre-design work recommends a single gravity outfall, with the need for an effluent pump station in the future. Stage 1 Environmental Impact Assessment

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including diffuser design/dilution modelling reports have been submitted to Ministry of Environment for review. The design of the outfall is at 30% completion.

ii) Infrastructure Maintenance Program

• LSA – Gilbert Trunk Sewer Twinning ‐ Construction of Phase 1 is substantially complete. Preliminary design work for Phase 2, 3 and 4 (from Hollybridge Road to the LIWWTP) is complete. A Board report requesting authorization to award detailed design of Phases 2 to 4 is brought forward in September. Overall completion of the project is scheduled for 2019.

• VSA – Iona Island WWTP Solids Handling Upgrade – This project involves improving the existing grit removal and sludge screening systems, increasing sludge thickening capacity, and improving the digester mixing systems. Construction of the Screening, Degritting and Thickening building structure and piping work are well underway, with concrete work almost completed. The digester mixing contract started in November 2015, and is expected to be complete in 2019. Digester No. 4 gas proofing work is complete and the digester is back in service. The contractor will return in October to commence work on Digester No. 2.

• FSA – Annacis Island WWTP Secondary Clarifier Corrosion Repair – This project involves replacing 12 secondary clarifier mechanisms that have been damaged by corrosion. This project also includes the installation of 12 new influent flow balancing gates, and replacement of 3 existing secondary bypass gates. Two mechanisms have been replaced and a work to replace the next five units is underway, which is expected to be complete in 2017. No work will be done in 2018 to accommodate Stage 5 construction. The remainder of the units will be replaced in 2019-2020.

iii) Infrastructure Risk Management Program

• FSA – Annacis Island WWTP Cogeneration System – This project replaces the existing cogeneration engines (cogens) with larger units in order to utilize increased digester gas production expected when Stage 5 Expansion is complete to generate additional electricity and heat to offset BC Hydro and natural gas import. The cogens are being supplemented by stand-by diesel generators (SDG’s) to provide a reliable backup power system during BC Hydro outage events. Detailed design is nearing completion. Award of the pre-purchased cogens and SDG’s approved by the Board in 2015 will be delivered in mid-2017. Constructability and tendering strategies are presently being developed. A request for qualification (RFQ) was issued to pre-qualify bidders to perform the demolition of the existing cogens and install the newly pre-purchased cogens and SDG’s. The scope will also include supply and installation of new or modified electrical and air handling systems as well as ground improvements and structural upgrades to the existing cogen building. Seven responses were received in August 2016 and are currently under evaluation. Preparation of tender documents and technical specifications is expected to be completed by October, 2016. Project completion is projected in 2018.

iv) Infrastructure Upgrade Program

• FSA – Sapperton Pump Station – The construction tenders closed in September and the recommendation of award to the lowest compliant tenderer was approved by the Board at

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their September meeting. The lowest tendered amount is within the budget estimate. A separate contract for removal of contaminated soils prior to construction is underway with completion expected in October.

• FSA – Langley Connector and Carvolth Trunk Sewer Replacement – Construction is 85% complete. Work on the remaining section of the sewer will proceed when the Township of Langley commissions its new forcemain. This work is expected to be complete in the fall with overall completed for early 2017.

v) Annacis Stage 5 Expansion Program

• 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 odor control facilities. Detailed design commenced in early 2014 and is now complete. The Request for Proposals for Phase 1 construction was issued on August 2 and will close on October 11. The ground improvement contract awarded in December 2015 was completed in July. The contract for the systems controls and laboratory building awarded in March 2015 is now 70% complete.

3. GREATER VANCOUVER WATER DISTRICT SEWERAGE & DRAINAGE DISTRICT (Solid Waste

Services) Major GVS&DD solid waste capital projects are generally proceeding on schedule and within budget. The following capital program exceptions are highlighted: 1) Landfills Program

The Coquitlam Landfill (CLF) Gas Phase Upgrade (second stage) is planned for the winter 2016/2017. The Phase 2 upgrade will be completed with the proposed development of the Coquitlam Transfer Station.

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

2) Waste to Energy Program

The Bottom Ash Processing project went forward to the Zero Waste Committee in February 2016 at which point direction was provided for a third party review of costing and business case be brought back to the ZWC. It is anticipated that this report will occur in September 2016.

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

The procurement process for the New WTE Capacity Project has been discontinued. Staff will report back with recommendations on the development of a New WTE in late 2016/early 2017.

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SCHEDULE 1

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SCHEDULE 2

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SCHEDULE 3

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To: Performance and Audit Committee From: Dean Rear, Director - Financial Planning & Operations Date: September 21, 2016 Meeting date: October 21, 2016 Subject: Semi-Annual Report on GVS&DD Development Cost Charges RECOMMENDATION That the Performance and Audit Committee receive for information the report titled “Semi-Annual Report on GVS&DD Development Cost Charges” dated September 21, 2016. PURPOSE To report on the 2016 GVS&DD Development Cost Charge (DCC) revenues and any implications on their adequacy, as required in the Board’s policy. BACKGROUND Regional GVS&DD Development Cost Charges are collected on behalf of Metro Vancouver, as set out in the Board approved DCC Bylaw, by member municipalities and remitted twice a year. DCC’s are used to fund growth related capital expenditures. Board policy requires that the DCC revenues be reported to the Committee on a semi-annual basis. This is the first of such reports for 2016. DCC COLLECTIONS The revenues for the period January 1 to June 30 of this year are up $0.36 million (or 3.4 %) over 2015 1st half levels. The revenues highlight the relatively consistent level of on-going development in the region over the past year. DCC revenues received last year and 1st half of 2016 are as follows: ($ millions)

Fraser Lulu N. Shore Vancouver Regional Total 2015 1st half $4.744 $0.410 $0.300 $0.912 $4.005 $10.371 2015 2nd half $7.343 $0.307 $0.346 $0.847 $5.028 $13.871 2016 1st half $5.390 $0.423 $0.253 $0.686 $3.976 $10.728

Each year, the sewerage growth capital projects that are undertaken are funded through long term debt financing utilizing a 15 year amortization period, for which the DCC’s received are used to pay the principal portion of the borrowing. Any excess DCC revenues are maintained as deferred revenues for future application as required. The DCC deferred revenue balances as at December 31, 2015 are as follows:

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Fraser Sewer Area $ 99,297,554 Lulu Island Sewer Area 10,754,307 North Shore Sewer Area 3,703,212 Vancouver Sewer Area 24,817,279 Regional 101,230,997

$239,803,349 A review is currently underway which will assess the DCC program relative to future growth requirements in the region. ALTERNATIVES This is an information report. No alternatives are presented. FINANCIAL IMPLICATIONS The DCC program was established pursuant to the concept of “Development Pays for Growth”. Should the revenues collected be inadequate to fund the Sewerage growth related projects, the funding burden would default to Sewer levies collected from the GVS & DD member municipalities. SUMMARY / CONCLUSION The longer term adequacy of Development Cost Charge revenue to either directly or indirectly finance the growth capital program will always be somewhat sensitive to major fluctuations in the Liquid Waste Services capital program and the level of development within the region. While the current DCC revenues continue to be substantial, so is the plan for future Liquid Waste Services growth capital works. A review is currently underway assessing the long term adequacy of the DCC program including future capital requirements and projected revenue requirements relative to current DCC rates charged. In the medium term, current DCC revenue levels as well as the deferred revenues appear adequate. 19415725

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To: Performance and Audit Committee From: Dean Rear, Director - Financial Planning and Operations Date: September 28, 2016 Meeting Date: October 21, 2016 Subject: Investment Position and Returns – May 1 to August 31, 2016 RECOMMENDATION That the Performance and Audit Committee receive for information the report titled “Investment Position and Returns – May 1 to August 31, 2016” dated September 28, 2016. PURPOSE To report investment performance and related information for receipt by the Performance and Audit Committee. BACKGROUND Metro Vancouver’s Corporate Investment Policy requires that an investment update report be presented to the Committee three times per year. This is the second report for 2016.

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

5.4

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OVERALL INVESTMENT RETURNS Table 1

Benchmarks The selected benchmarks are provided as a reasonable general comparison and are intended to be indicative of and comparable to each of the portfolios on an ongoing basis. These benchmarks are consistent from period to period such that trending of results is possible. The Corporate Investment Policy requires that we compare actual investment performance against specific benchmark returns. Short term benchmarks are taken directly from the Bank of Canada and the Municipal Finance Authority (MFA). Rates from the Bank of Canada are expressed as annual rates which need to be “adjusted” to a four month reporting period. They are divided by three for an estimate over the four month period. The performance figures on the MFA Money Market Fund are not required to be adjusted. MFA’s Intermediate Fund and Bond Fund benchmarks are used as benchmarks for both the long term portfolio and the Cultural Reserve portfolio. These two benchmarks must be considered together as the combination more accurately reflects the terms of the long term portfolio than either of the two fund benchmarks individually. However, in the daily operation of their funds the MFA faces many liquidity demands that Metro Vancouver does not. Allowing for these cash demands can affect portfolio yields considerably. Short Term Investment Performance As at August 31, 2016, the short term portfolio held a total of $190.1 million dollars (at historic cost/book value) and represented approximately 31.1% of total investments. Looking at the “days to maturity” for all investments (combined short and long), those investments that will mature in the coming year account for approximately 46.4% of total investments. A listing of all short term investments as at August 31, 2016 can be found on Schedule 1 of this report with expected maturities illustrated in the charts included in Schedule 4. Table 2 details performance during the period compared to benchmarks.

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Table 2

Short term portfolio performance exceeded all of our benchmarks in the period. The estimated annualized yield of 1.53%, shown in Table 2, is calculated for comparison to benchmark. Overall this return is consistent with first reporting period, however there was a decline in August results due to excess cash placed in low-yield but highly liquid Banker’s Acceptances for short-term cashflow needs. The weighted average term for the Short Term portfolio at the end of August is 169 days compared to 208 days as at April 30, 2016. Long Term Investment Performance As at August 31, 2016, the long term portfolio held a total of $419.6 million (at historical cost/book value) representing 68.5% of all investments. The estimated annualized yield of 2.27%, shown in Table 3, is calculated for comparison to benchmark. Overall this return is consistent with the first reporting period. A detailed listing of long term investments held on August 31, 2016 is located on Schedule 2 following this report with expected maturities illustrated in the charts included in Schedule 4. The Cultural Reserve portfolio held $2.4 million (at historical cost/book value) in fixed income investments (approx. 0.4% of total investments), and had a weighted average yield to maturity of 4.1 years compared to 4.5 years as at April 30, 2016 and an estimated annualized yield 2.58%. A detailed listing of investments held in this portfolio is located on Schedule 3. Table 3 details performance during the period compared to our benchmarks. The performance of the long term portfolio in this reporting period exceeded the returns of the MFA Intermediate Fund while falling below the MFA Bond Fund. The MFA Bond Fund experienced exceptionally higher returns in the months of May and June reflecting the volatility in the capital markets during the period leading up to the “Brexit” vote. MFA’s monthly results also showed significant fluctuations due to mark to market adjustments over the course of the year.

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Table 3

The weighted average term for the long term portfolio at the end of August is 3.3 years compared to 2.8 years as at April 30, 2016, 1.1 years for the MFA Intermediate Fund and 2.8 years for the MFA Bond Fund. Like the MFA Intermediate Fund, our portfolio remains focused on corporate securities as they offer an attractive yield advantage over the government issued securities. Going Forward The global capital markets experienced significant volatility and a decline in yields in the months leading up to the “Brexit” vote in June. Bond yields continued to decline in July in the aftermath of the U.K. vote to leave the European Union but rebounded slightly in August as the market volatility eased. The US Federal Reserve held their rates steady at the 0.25% to 0.50% range as they await further evidence of wage growth and price stability. The market is anticipating one rate increase by the end of the 2016 year. The Bank of Canada also held their overnight target rates steady at 0.50%. Despite a downgrade to the growth forecast, they maintained a neutral tone and cited that financial conditions have become more “accommodative” after global financial markets adjusted to the “Brexit” vote. The Bank of Canada is likely to defer any increases until late 2017 or early 2018. The interest rate environment is persistently low and staff are uncertain as to when the rates will start to turn. While we remain cautious as with the decline and flattening of the yield curve, longer term instruments still offer a marginal advantage over short term yields as illustrated in Table 4. A small portion of investments have been allocated out longer term with maturities up to 2031 for additional pick-up in yield. We continue to ladder portfolio maturities across the curve in order to minimize interest rate risks and remain focused on pursuing the highest overall yield for our portfolio while maintaining safety of capital and liquidity as the key priorities.

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Table 4

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

FINANCIAL IMPLICATIONS Overall portfolio returns remain modest, a reflection of the priorities of preservation of capital and maintaining the necessary liquidity to meet operational requirements. SUMMARY / CONCLUSION Overall, investment performance for the period, while modest, met expectations, exceeding the returns on most of our benchmarks. Our portfolios hold quality investments and are reasonably positioned given our market expectations. Attachments: Schedule 1 – Short Term Investments Schedule 2 – Long Term Investments Schedule 3 – Cultural Reserve Investment Schedule 4 – Investment Maturity Charts 19406280

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METRO VANCOUVERSHORT TERM INVESTMENTS AS AT AUGUST 31, 2016

CONTRACT NUMBER AND SECURITY DESCRIPTION

MATURITY AMOUNT COST

DATE PURCHASED

MATURITY DATE

DAYS TO

MATURITY YIELD COUPON

BANK OF MONTREAL160093 BMO 2.39% JUL12/17-1759 5,000,000 5,060,850 Aug ,15 2016 Jul ,12 2017 315 1.04 2.39160089 BMO 5.45% JUL17/17-1756 8,000,000 8,320,960 Aug ,15 2016 Jul ,17 2017 320 1.06 5.45

13,000,000 13,381,810 7.04%

BLUESHORE FINANCIAL CREDIT UNION160022 BLUESHORE TD 1.75% MAR3/17 2,500,000 2,500,000 Apr ,21 2016 Mar ,09 2017 190 1.75 0.00160015 BLUESHORE TD 1.90% APR19/17 2,500,000 2,500,000 Apr ,19 2016 Apr ,19 2017 231 1.90 0.00

5,000,000 5,000,000 2.63%

BANK OF NOVA SCOTIA160092 BNS 2.100% NOV8/16-1758 5,000,000 5,014,300 Aug ,15 2016 Nov ,08 2016 69 0.83 2.10160094 BNS BA 0.86% FEB1/17 5,000,000 4,980,050 Aug ,15 2016 Feb ,01 2017 154 0.86 0.00160039 BNS 2.598% FEB27/17-1702 5,000,000 5,046,450 Jul ,29 2016 Feb ,27 2017 180 0.99 2.60160091 BNS 2.598% FEB27/17-1757 10,000,000 10,087,500 Aug ,15 2016 Feb ,27 2017 180 0.95 2.60

25,000,000 25,128,300 13.22%

CAISSE CENTRAL160047 CAISSE (USD) 0.60% SEP30/16 4,000,000 3,996,270 Aug ,05 2016 Sep ,30 2016 30 0.61 0.00

4,000,000 3,996,270 2.10%

CIBC160097 CIBC BA 0.79% SEP30/16 2,000,000 1,998,100 Aug ,17 2016 Sep ,30 2016 30 0.79 0.00160048 CIBC BA 0.80% OCT3/16 10,000,000 9,987,700 Aug ,08 2016 Oct ,03 2016 33 0.80 0.00160087 CIBC BA 0.80% OCT3/16 5,000,000 4,994,650 Aug ,15 2016 Oct ,03 2016 33 0.80 0.00160088 CIBC BA 0.81% DEC14/16 5,000,000 4,986,600 Aug ,15 2016 Dec ,14 2016 105 0.81 0.00

22,000,000 21,967,050 11.55%

COAST CAPITAL CREDIT UNION160021 COAST CAP TD 1.70% NOV3/16 2,000,000 2,000,000 Apr ,21 2016 Nov ,03 2016 64 1.70 0.00160001 COAST CAP 1.85% MAR2/17 2,500,000 2,500,000 Mar ,04 2016 Mar ,02 2017 183 1.85 0.00160006 COAST CAP TD 1.90% APR3/17 2,500,000 2,500,000 Apr ,08 2016 Apr ,03 2017 215 1.90 0.00160007 COAST CAP TD 1.90% APR4/17 2,500,000 2,500,000 Apr ,08 2016 Apr ,04 2017 216 1.90 0.00160008 COAST CAP TD 1.90% APR6/17 5,000,000 5,000,000 Apr ,14 2016 Apr ,06 2017 218 1.90 0.00160017 COAST CAP TD 1.90% APR11/17 3,500,000 3,500,000 Apr ,19 2016 Apr ,11 2017 223 1.90 0.00

18,000,000 18,000,000 9.47%

FIRST WEST CREDIT UNION160018 FIRSTWEST TD 1.50% OCT3/16 2,500,000 2,500,000 Apr ,19 2016 Oct ,03 2016 33 1.50 0.00160019 FIRSTWEST TD 1.50% OCT19/16 2,500,000 2,500,000 Apr ,19 2016 Oct ,19 2016 49 1.50 0.00160020 FIRSTWEST TD 1.55% FEB2/17 5,000,000 5,000,000 Apr ,19 2016 Feb ,02 2017 155 1.55 0.00160026 FIRST WEST CU 1.65% MAR2/17 2,500,000 2,500,000 May ,13 2016 Mar ,02 2017 183 1.65 0.00160027 FIRST WEST CU 1.75% MAY4/17 2,500,000 2,500,000 May ,13 2016 May ,04 2017 246 1.75 0.00160028 FIRST WEST CU 1.75% MAY11/17 2,500,000 2,500,000 May ,13 2016 May ,11 2017 253 1.75 0.00

17,500,000 17,500,000 9.21%

HSBC BANK CANADA160086 HSBC BA 0.82% SEP12/16 5,000,000 4,996,850 Aug ,15 2016 Sep ,12 2016 12 0.82 0.00

5,000,000 4,996,850 2.63%

NATIONAL BANK160038 NACN 2.702% DEC15/16-1701 5,000,000 5,034,150 Jul ,29 2016 Dec ,15 2016 106 0.89 2.70160010 NACN 2.019 APR13/17-1664 5,000,000 5,044,250 Apr ,19 2016 Apr ,13 2017 225 1.11 2.02

10,000,000 10,078,400 5.30%

Schedule 1

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Schedule 1 (Cont'd)PROSPERA CREDIT UNION160024 PROSPERA (CASHABLE AUG22/16) 1.45% SEP8 2,000,000 2,000,000 Apr ,22 2016 Sep ,08 2016 8 1.45 0.00160031 PROSPERA 1.45% SEPT22/16 2,500,000 2,500,000 May ,19 2016 Sep ,22 2016 22 1.45 0.00160080 PROSPERA 1.45% DEC22/16 2,500,000 2,500,000 Aug ,15 2016 Dec ,22 2016 113 1.45 0.00160081 PROSPERA 1.45% DEC29/16 2,500,000 2,500,000 Aug ,15 2016 Dec ,29 2016 120 1.45 0.00160025 PROSPERA (CASHABLE JAN17/17) 1.55% FEB9/ 2,500,000 2,500,000 Apr ,22 2016 Feb ,09 2017 162 1.55 0.00160082 PROSPERA 1.50% JUN1/17 2,500,000 2,500,000 Aug ,15 2016 Jun ,01 2017 274 1.50 0.00160083 PROSPERA (CASHABLE DEC13/16) 1.45% AUG1 4,500,000 4,500,000 Aug ,15 2016 Aug ,15 2017 349 1.45 0.00

19,000,000 19,000,000 9.99%

QUEBEC, PROVINCE OF160002 QUEBEC CP (USD) 0.60% SEPT1/16 2,500,000 2,492,625 Mar ,08 2016 Sep ,01 2016 1 0.61 0.00

2,500,000 2,492,625 1.31%

ROYAL BANK OF CANADA160090 RBC 3.660% JAN25/17-1754 6,500,000 6,580,600 Aug ,15 2016 Jan ,25 2017 147 0.85 3.66

6,500,000 6,580,600 3.46%

TORONTO DOMINION BANK160099 TD BA 0.77% SEP15/16 2,000,000 1,998,780 Aug ,17 2016 Sep ,15 2016 15 0.77 0.00160096 TD BA 0.77% SEP22/16 4,000,000 3,996,960 Aug ,17 2016 Sep ,22 2016 22 0.77 0.00160098 TD BA 0.78% NOV3/16 4,000,000 3,993,360 Aug ,17 2016 Nov ,03 2016 64 0.78 0.00

10,000,000 9,989,100 5.25%

VANCITY SAVINGS CREDIT UNION150094 VANCITY (CASHABLE APR6/16) JAN6/17 2,500,000 2,500,000 Jan ,07 2016 Jan ,06 2017 128 1.60 0.00160011 VANCITY (CASHABLE JUL18/16) 1.60% APR20/17 3,000,000 3,000,000 Apr ,19 2016 Apr ,20 2017 232 1.60 0.00160012 VANCITY (CASHABLE JUL18/16) 1.60% APR20/17 3,000,000 3,000,000 Apr ,19 2016 Apr ,20 2017 232 1.60 0.00160013 VANCITY (CASHABLE JUL18/16) 1.60% APR20/17 3,000,000 3,000,000 Apr ,19 2016 Apr ,20 2017 232 1.60 0.00160014 VANCITY (CASHABLE JUL18/16) 1.60% APR20/17 3,000,000 3,000,000 Apr ,19 2016 Apr ,20 2017 232 1.60 0.00160046 VANCITY TD 1.60% MAY25/17 2,500,000 2,500,000 Jul ,28 2016 May ,25 2017 267 1.60 0.00160034 VANCITY 1.50% (CASHABLE OCT6/16) JUL8/17 5,000,000 5,000,000 Jul ,08 2016 Jul ,08 2017 311 1.50 0.00

22,000,000 22,000,000 11.57%

WESTMINSTER SAVINGS CREDIT UNION160070 WSCU TD 1.51% MAY18/17 2,500,000 2,500,000 Aug ,15 2016 May ,18 2017 260 1.51 0.00160071 WSCU TD 1.51% MAY25/17 2,500,000 2,500,000 Aug ,15 2016 May ,25 2017 267 1.51 0.00160072 WSCU TD 1.51% JUN8/17 2,500,000 2,500,000 Aug ,15 2016 Jun ,08 2017 281 1.51 0.00160073 WSCU TD 1.51% JUN29/17 2,500,000 2,500,000 Aug ,15 2016 Jun ,29 2017 302 1.51 0.00

10,000,000 10,000,000 5.26%

TOTALS 189,500,000$ 190,111,005$ AVERAGES 163 1.33100%

Mean Average Term: 163 DaysMean Average Yield: 1.33%

Weighted Average Term: 169 DaysWeighted Average Yield: 1.37%

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METRO VANCOUVERLONG TERM INVESTMENTS AS AT AUGUST 31, 2016



DATE PURCHASED

MATURITY DATE

DAYS TO MATURITY YIELD COUPON

BANK OF MONTREAL130056 BMO 2.24% DEC 11/17-1188 2,000,000 1,977,340 Jul ,26 2013 Dec ,11 2017 467 2.51 2.24130115 BMO 3.21% SEPT 13/18-1252 3,000,000 3,002,700 Sep ,13 2013 Sep ,13 2018 743 3.19 3.21140084 BMO 3.210% SEPT13/18-1410 5,000,000 5,203,900 Aug ,05 2014 Sep ,13 2018 743 2.17 3.21140071 BMO 2.84% JUNE 4/20-1388 5,000,000 5,079,750 Jun ,19 2014 Jun ,04 2020 1373 2.55 2.84140118 BMO 3.40% APR23/21-1445 3,000,000 3,151,500 Aug ,15 2014 Apr ,23 2021 1696 2.57 3.40160100 BMO STEP-UP NOTE AUG26/26-1766 2,000,000 2,000,000 Aug ,26 2016 Aug ,26 2026 3647 2.32 1.85

20,000,000 20,415,190 4.87%

BLUESHORE FINANCIAL CREDIT UNION160016 BLUESHORE TD 1.90% APR24/17 2,500,000 2,500,000 Apr ,19 2016 Apr ,24 2017 236 1.90 0.00140149 BLUESHORE TD 2.25% JUL6/17 2,500,000 2,500,000 Aug ,29 2014 Jul ,06 2017 309 2.25 0.00140150 BLUESHORE TD 2.25% JUL13/17 2,500,000 2,500,000 Aug ,29 2014 Jul ,13 2017 316 2.25 0.00160035 BLUESHORE TD 1.90% SEP7/17 5,000,000 5,000,000 Jul ,14 2016 Sep ,07 2017 372 1.90 0.00160077 BLUESHORE 1.91% APR5/18 2,500,000 2,500,000 Aug ,15 2016 Apr ,05 2018 582 1.91 0.00160078 BLUESHORE 1.98% JAN10/19 2,500,000 2,500,000 Aug ,15 2016 Jan ,10 2019 862 1.98 0.00160079 BLUESHORE 2.02% AUG22/19 2,500,000 2,500,000 Aug ,15 2016 Aug ,22 2019 1086 2.02 0.00

20,000,000 20,000,000 4.77%

BANK OF NOVA SCOTIA130146 BNS 2.10% NOV 8/16-1296 900,000 899,892 Nov ,08 2013 Nov ,08 2016 69 2.10 2.10130058 BNS 2.74% JAN 12/16-1190 5,000,000 5,092,000 Aug ,01 2013 Dec ,01 2016 92 2.16 2.74130101 BNS 2.37% JAN 11/18-1237 5,000,000 4,910,000 Aug ,23 2013 Jan ,11 2018 498 2.81 2.37140028 BNS 2.462% MARCH 14/19-1337 2,500,000 2,500,000 Mar ,14 2014 Mar ,14 2019 925 2.46 2.46140107 BNS 2.462% MAR14/19-1434 3,000,000 3,030,420 Aug ,15 2014 Mar ,14 2019 925 2.23 2.46160042 BNS 2.130% JUN15/20-1705 5,000,000 5,107,250 Aug ,02 2016 Jun ,15 2020 1384 1.56 2.13160043 BNS 2.090% SEP9/20-1706 5,000,000 5,102,500 Aug ,02 2016 Sep ,09 2020 1470 1.57 2.09140110 BNS 3.27% JAN 11/21-1437 3,000,000 3,135,300 Aug ,15 2014 Jan ,11 2021 1594 2.50 3.27140111 BNS 2.873% JUN4/21-1438 4,000,000 4,065,200 Aug ,15 2014 Jun ,04 2021 1738 2.61 2.87

33,400,000 33,842,562 8.07%

CANADIAN WESTERN BANK150003 CWB 3.049 JAN18/17-1524 3,000,000 3,074,310 Jan ,30 2015 Jan ,18 2017 140 1.76 3.05150004 CWB 2.104 JUN26/17-1525 2,500,000 2,519,425 Feb ,03 2015 Jun ,26 2017 299 1.77 2.10160044 CWB 3.077% JAN14/19-1707 4,500,000 4,587,075 Aug ,02 2016 Jan ,14 2019 866 2.26 3.08160101 CWB GIC 2.10% AUG8/19 2,500,000 2,500,000 Aug ,18 2016 Aug ,08 2019 1072 2.10 0.00160102 CWB GIC 2.10% AUG22/19 2,500,000 2,500,000 Aug ,18 2016 Aug ,22 2019 1086 2.10 0.00

15,000,000 15,180,810 3.62%

CIBC120181 CIBC 2.65% NOV 8/16-1039 5,000,000 5,077,350 Sep ,18 2012 Nov ,08 2016 69 2.26 2.65160009 CM 2.35% OCT18/17-1663 5,000,000 5,078,650 Apr ,19 2016 Oct ,18 2017 413 1.29 2.35140117 CIBC 2.22% MAR 7/18-1444 5,000,000 5,048,750 Aug ,15 2014 Mar ,07 2018 553 1.94 2.22140109 CIBC 2.35% JUN24/19-1436 10,000,000 10,047,900 Aug ,15 2014 Jun ,24 2019 1027 2.25 2.35

25,000,000 25,252,650 6.02%

COAST CAPITAL CREDIT UNION140151 COAST CAP TD 2.20% JUN15/17 2,500,000 2,500,000 Aug ,29 2014 Jun ,15 2017 288 2.20 0.00140152 COAST CAP TD 2.20% JUN22/17 2,500,000 2,500,000 Aug ,29 2014 Jun ,22 2017 295 2.20 0.00140153 COAST CAP TD 2.20% AUG3/17 2,000,000 2,000,000 Aug ,29 2014 Aug ,03 2017 337 2.20 0.00

7,000,000 7,000,000 1.67%

FIRST WEST CREDIT UNION160029 FIRST WEST CU 1.75% MAY18/17 2,500,000 2,500,000 May ,13 2016 May ,18 2017 260 1.75 0.00160030 FIRST WEST CU 1.75% JUN1/17 2,500,000 2,500,000 May ,13 2016 Jun ,01 2017 274 1.75 0.00160037 FIRST WEST CU TD 2.15% JUL4/19 2,500,000 2,500,000 Jul ,21 2016 Jul ,04 2019 1037 2.15 0.00

7,500,000 7,500,000 1.79%

Schedule 2

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Schedule 2 (Cont'd)HSBC BANK CANADA130157 HSBC 2.901% JAN 13/17-1307 5,000,000 5,123,050 Jan ,03 2014 Jan ,13 2017 135 2.06 2.90140083 HSBC 2.901% JAN13/17-1408 5,000,000 5,130,300 Aug ,01 2014 Jan ,13 2017 135 1.81 2.90150005 HSBC 2.901 JAN13/17-1526 3,000,000 3,096,150 Feb ,03 2015 Jan ,13 2017 135 1.23 2.90150027 HSBC 3.558 OCT4/17-1556 5,000,000 5,235,000 Jun ,19 2015 Oct ,04 2017 399 1.46 3.56160040 HSBC 3.558% OCT4/17-1703 5,000,000 5,127,650 Jul ,29 2016 Oct ,04 2017 399 1.37 3.56160041 HSBC 2.078% NOV26/18-1704 5,000,000 5,041,400 Jul ,29 2016 Nov ,26 2018 817 1.71 2.08160049 HSBC 2.938% JAN14/20-1712 5,000,000 5,185,450 Aug ,12 2016 Jan ,14 2020 1231 1.81 2.94150034 HSBC 1.816% JUL7/20-1563 5,000,000 4,971,850 Jul ,31 2015 Jul ,07 2020 1406 1.94 1.82160050 HSBC 1.816% JUL7/20-1713 2,500,000 2,496,150 Aug ,12 2016 Jul ,07 2020 1406 1.86 1.82160051 HSBC 2.449% JAN29/21-1714 2,500,000 2,559,250 Aug ,12 2016 Jan ,29 2021 1612 1.89 2.45160052 HSBC 2.908% SEP29/21-1715 5,000,000 5,231,750 Aug ,12 2016 Sep ,29 2021 1855 1.95 2.91160095 HSBC 2.908% SEP29/21-1761 5,000,000 5,227,800 Aug ,18 2016 Sep ,29 2021 1855 1.97 2.91

53,000,000 54,425,800 12.97%

MANITOBA, PROVINCE OF160061 MANITOBA STRIP SEP5/25 2,400,000 1,971,384 Aug ,15 2016 Sep ,05 2025 3292 2.18 0.00160055 MANITOBA STRIP MAR5/30 5,000,000 3,472,650 Aug ,15 2016 Mar ,05 2030 4934 2.71 0.00160056 MANITOBA STRIP MAR5/31 3,000,000 2,002,290 Aug ,15 2016 Mar ,05 2031 5299 2.80 0.00

10,400,000 7,446,324 1.77%

MANUBANK150010 MANUBANK 4.68% SEP12/16-1533 2,000,000 2,097,560 Mar ,09 2015 Sep ,12 2016 12 1.40 4.68150025 MANUBANK 4.68 SEP12/16-1551 3,000,000 3,123,240 Jun ,11 2015 Sep ,12 2016 12 1.36 4.68150021 MANUBANK 2.383% OCT17/16-1545 5,000,000 5,081,500 Apr ,15 2015 Oct ,17 2016 47 1.29 2.38

10,000,000 10,302,300 2.46%

MFA BC140020 BCMFA 4.80% DEC 1/17-1328 5,000,000 5,545,000 Feb ,18 2014 Dec ,01 2017 457 1.81 4.80140068 BCMFA 4.15% JUNE 1/21-1386 5,000,000 5,475,700 Jun ,18 2014 Jun ,01 2021 1735 2.64 4.15

10,000,000 11,020,700 2.63%

NATIONAL BANK140038 NBC 2.019% APRIL 13/17-1351 5,000,000 5,016,700 Apr ,14 2014 Apr ,13 2017 225 1.90 2.02140039 NBC 2.794% AUG 9/18-1352 5,000,000 5,099,850 Apr ,14 2014 Aug ,09 2018 708 2.31 2.79140108 NATIONAL 2.794% AUG 9/18-1435 10,000,000 10,259,300 Aug ,15 2014 Aug ,09 2018 708 2.11 2.79160045 NACN 2.404% OCT28/19-1708 5,000,000 5,141,800 Aug ,02 2016 Oct ,28 2019 1153 1.50 2.40160036 NATIONAL BANK 1.809% JUL26/21-1699 1,000,000 1,000,000 Jul ,25 2016 Jul ,26 2021 1790 1.81 1.81

26,000,000 26,517,650 6.32%

NEW BRUNSWICK, PROVINCE OF160058 NEW BRUNSWICK STRIP JUN3/23 1,700,000 1,493,841 Aug ,15 2016 Jun ,03 2023 2467 1.91 0.00

1,700,000 1,493,841 0.36%

NEWFOUNDLAND, PROVINCE OF160066 NEWFOUNDLAND STRIP FEB5/22 1,100,000 999,900 Aug ,15 2016 Feb ,05 2022 1984 1.75 0.00160068 NEWFOUNDLAND STRIP APR17/23 2,300,000 2,022,850 Aug ,15 2016 Apr ,17 2023 2420 1.93 0.00160063 NEWFOUNDLAND STRIP APR17/26 1,100,000 851,510 Aug ,15 2016 Apr ,17 2026 3516 2.66 0.00

4,500,000 3,874,260 0.92%

NEWFOUNDLAND HYDRO160067 NFLD HYDRO STRIP JUL14/22 950,000 856,900 Aug ,15 2016 Jul ,14 2022 2143 1.75 0.00160069 NFLD HYDRO STRIP AUG27/26 1,200,000 926,160 Aug ,15 2016 Aug ,27 2026 3648 2.60 0.00

2,150,000 1,783,060 0.42%

NOVA SCOTIA, PROVINCE OF160059 NOVA SCOTIA STRIP DEC1/25 1,400,000 1,142,988 Aug ,15 2016 Dec ,01 2025 3379 2.19 0.00

1,400,000 1,142,988 0.27%

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Schedule 2 (Cont'd)ONTARIO, PROVINCE OF130113 ONTARIO 2.1% SEPT 8/18-1250 2,500,000 2,432,250 Sep ,10 2013 Sep ,08 2018 738 2.68 2.10140116 ONT 3.15% JUNE2/22-1443 3,000,000 3,114,480 Aug ,15 2014 Jun ,02 2022 2101 2.61 3.15140115 ONT 2.85%JUNE2/23-1442 4,000,000 4,022,880 Aug ,15 2014 Jun ,02 2023 2466 2.78 2.85140099 ONT 7.5% FEB 7/24-1426 4,000,000 5,547,200 Aug ,15 2014 Feb ,07 2024 2716 2.82 7.50140159 ONT STRIP FEB7/24 1,980,000 1,487,059 Sep ,03 2014 Feb ,07 2024 2716 3.06 0.00140162 ONTARIO STRIP FEB7/24 3,000,000 2,244,000 Sep ,08 2014 Feb ,07 2024 2716 3.11 0.00

18,480,000 18,847,869 4.49%

PROSPERA160085 PROSPERA TD 1.80% JUN14/18 3,000,000 3,000,000 Aug ,15 2016 Jun ,14 2018 652 1.80 0.00160084 PROSPERA TD 1.80% JUN28/18 3,000,000 3,000,000 Aug ,15 2016 Jun ,28 2018 666 1.80 0.00

6,000,000 6,000,000 1.43%

QUEBEC, PROVINCE OF160057 QUEBEC STRIP SEP21/22 2,300,000 2,064,319 Aug ,15 2016 Sep ,21 2022 2212 1.78 0.00140101 QUE 3.5% DEC 1/22-1428 5,000,000 5,293,000 Aug ,15 2014 Dec ,01 2022 2283 2.71 3.50140100 QUE 3.0% SEPT 1/23-1427 8,000,000 8,109,600 Aug ,15 2014 Sep ,01 2023 2557 2.83 3.00160060 QUEBEC STRIP SEP21/24 4,800,000 4,066,080 Aug ,15 2016 Sep ,21 2024 2943 2.06 0.00160065 QUEBEC STRIP MAR21/26 5,000,000 4,012,500 Aug ,15 2016 Mar ,21 2026 3489 2.31 0.00160064 QUEBEC STRIP APR1/30 4,900,000 3,395,749 Aug ,15 2016 Apr ,01 2030 4961 2.71 0.00

30,000,000 26,941,248 6.42%

QUEBEC HYDRO160062 QUE HYDRO STRIP AUG26/23 1,400,000 1,221,626 Aug ,15 2016 Aug ,26 2023 2551 1.95 0.00

1,400,000 1,221,626 0.29%

ROYAL BANK OF CANADA130068 RBC 3.66 JAN 25/17-1203 5,000,000 5,233,800 Aug ,15 2013 Jan ,25 2017 147 2.24 3.66130055 ROYAL 2.364% SEPT 21/17-1186 5,000,000 4,978,450 Jul ,26 2013 Sep ,21 2017 386 2.47 2.36130061 RBC 2.26% MARCH 12/18-1195 5,000,000 4,909,250 Aug ,01 2013 Mar ,12 2018 558 2.68 2.26130074 RBC 3.77% MAR 30/18-1209 10,000,000 10,524,000 Aug ,15 2013 Mar ,30 2018 576 2.56 3.77130106 RBC 2.82% JULY 12/18-1242 3,000,000 2,983,050 Sep ,03 2013 Jul ,12 2018 680 2.95 2.82140086 RBC 2.89% OCT11/18-1412 5,000,000 5,126,450 Aug ,05 2014 Oct ,11 2018 771 2.25 2.89140085 RBC 2.77% Dec 11/18-1411 5,000,000 5,110,000 Aug ,05 2014 Dec ,11 2018 832 2.24 2.77150035 RBC 2.35 DEC9/19-1564 5,000,000 5,142,450 Jul ,31 2015 Dec ,09 2019 1195 1.67 2.35140070 RBC 2.86% MAR 4/21-1385 5,000,000 5,031,500 Jun ,19 2014 Mar ,04 2021 1646 2.76 2.86140106 RBC 2.86% MAR 4/21-1433 5,000,000 5,086,950 Aug ,15 2014 Mar ,04 2021 1646 2.57 2.86150036 RBC 4.93% JUL16/25-1566 5,000,000 5,939,900 Jul ,31 2015 Jul ,16 2025 3241 2.76 4.93160053 RBC 4.930% JUL16/25-1716 5,000,000 6,207,500 Aug ,12 2016 Jul ,16 2025 3241 1.97 4.93

63,000,000 66,273,300 15.80%

TORONTO DOMINION BANK130156 TD 2.433% AUG 15/17-1306 5,000,000 5,029,500 Jan ,03 2014 Aug ,15 2017 349 2.26 2.43130158 TD 2.433% AUG 15/17-1308 5,000,000 5,028,000 Jan ,03 2014 Aug ,15 2017 349 2.27 2.43130104 TD 2.171% APRIL 2/18-1240 5,000,000 4,876,000 Aug ,30 2013 Apr ,02 2018 579 2.75 2.17140040 TD 2.447% APRIL 2/19-1353 5,000,000 4,992,000 Apr ,14 2014 Apr ,02 2019 944 2.48 2.45140105 TD 2.563% JUN24/20-1432 5,000,000 5,044,000 Aug ,15 2014 Jun ,24 2020 1393 2.40 2.56140104 TD 3.226% JULY 24/24-1431 10,000,000 10,123,800 Aug ,15 2014 Jul ,24 2024 2884 3.08 3.23

35,000,000 35,093,300 8.36%

VANCITY CREDIT UNION160054 VANCITY TD 1.65% OCT12/17 3,000,000 3,000,000 Aug ,10 2016 Oct ,12 2017 407 1.65 0.00

3,000,000 3,000,000 0.72%

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Schedule 2 (Cont'd)WESTMINSTER SAVINGS CREDIT UNION

140156 WESTMINSTER 2.27% JUL20/17 3,000,000 3,000,000 Aug ,29 2014 Jul ,20 2017 323 2.27 0.00140154 WESTMINSTER TD 2.27% JUL27/17 2,500,000 2,500,000 Aug ,29 2014 Jul ,27 2017 330 2.27 0.00140155 WESTMINSTER 2.27% AUG10/17 2,500,000 2,500,000 Aug ,29 2014 Aug ,10 2017 344 2.27 0.00160074 WSCU TD 1.55% AUG24/17 2,500,000 2,500,000 Aug ,15 2016 Aug ,24 2017 358 1.55 0.00160075 WSCU TD 1.55% AUG31/17 2,500,000 2,500,000 Aug ,15 2016 Aug ,31 2017 365 1.55 0.00160076 WSCU TD 1.55% SEP14/17 2,000,000 2,000,000 Aug ,15 2016 Sep ,14 2017 379 1.55 0.00

15,000,000 15,000,000 3.58%

TOTALS 418,930,000 419,575,478 100%

Weighted Average Term: 3.34 Years

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Schedule 3METRO VANCOUVER



DATE PURCHASED

MATURITY DATE

DAYS TO MATURITY YIELD COUPON

130018 CIBC 2.65% NOV 08/16-1127 715,000$ 727,227$ Feb ,19 2013 Nov ,08 2016 69 2.17 2.65

130147 HSBC 2.938% JAN 14/20-1297 530,000 525,813 Nov ,14 2013 Jan ,14 2020 1,231 3.08 2.94

150011 RBC 1.968 MAR2/22-1534 500,000 491,800 Mar ,11 2015 Mar ,02 2022 2,009 2.22 1.97

150001 TD 3.226 JULY24/24-1519 650,000 674,700 Jan ,09 2015 Jul ,24 2024 2,884 2.77 3.23

TOTALS 2,395,000$ 2,419,540$ AVERAGES 1,548 2.56 2.70

Mean Average Term: 4.24 YearsMean Average Yield: 2.56%

Weighted Average Term: 4.11 YearsWeighted Average Yield: 2.67%

CULTURAL RESERVE INVESTMENTS AS AT AUGUST 31, 2016

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To: Performance and Audit Committee From: Dean Rear, Director, Financial Planning and Operations Date: September 29, 2016 Meeting Date: October 21, 2016 Subject: Proposed Amendments to the Corporate Investment Policy RECOMMENDATION That the Performance and Audit Committee: a) endorse the Corporate Investment Policy as presented in the report titled “Proposed

Amendments to the Corporate Investment Policy” dated September 29, 2016; and b) forward the report to the Intergovernment and Finance Committee and the GVRD Board for

consideration. PURPOSE To seek GVRD Board approval for amendments to the Corporate Investment Policy. BACKGROUND The Board approved Corporate Investment policy provides the guidelines for investment decisions. The primary objective of the policy is to ensure safety of capital but also provides for maintaining sufficient liquidity to meet operational requirements and to provide the highest return on investment possible after considering safety of capital and required liquidity. This policy is reviewed on an ongoing basis and may require adjustments from time to time due to market changes, operational needs or other administrative matters. This policy was last amended in July 2015. Since the Financial Crisis of 2007-2008, bond yields have been on a downward trend and reached yet another historical low in the first half of 2016, as illustrated in table 1. The average yield on Canada benchmark bonds with maturities of 3-5 years and 5-10 years have both declined more than 380 basis points (BPS) since mid-2007. This has created an environment where investment returns are persistently low.

5.5

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Table 1

The Canada yield curve has also dropped and flattened since 2013 as illustrated in Table 2. Global central banks, including the Bank of Canada, have relied and continue to rely heavily on a monetary policy of quantitative easing and low interest rates to fuel market growth. This has resulted in bonds to rally (i.e. increase in price and decrease in yield) in North America as investors sought shelter from low or even negative rates on sovereign debt. It is unclear as to when the rates will turn and start moving in an upward trend.

Table 2

Given this challenging market and a prolonged period of low interest rates, staff continuously seek out better products with higher yields to maximize our return while meeting the primary objectives of our policy to preserve capital and maintain liquidity. The proposed policy amendments are as follows (refer to attachment B for summary table):

1) To remove maximum dollar amounts and update/add maximum percentage limits. Our portfolio can fluctuate by as much as $300 million over the course of the year depending on the cash management and funding strategy for the organization. As our

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portfolio grows in size, the dollar limit becomes restrictive and may result in a disproportionate allocation of limits. With the proposed change, limits will now fluctuate based on the size of the portfolio rather than a combination of pre-defined dollar limits as well as percentage limits. This allows greater flexibility within investment limits found in the policy’s Appendix A. A percentage limit by counterparty remains in place to address concentration risk in any one particular institution and to ensure diversification in our portfolio. For those counterparties previously without a percentage limit, maximum limits have been added: 50% for individual provinces rated AA- or better, 30% for individual provinces rated A- and 20% for individual credit unions. This ensures a consistently managed limit across the different categories. Moving to a percentage based limit does not impact the concentration risks as the way we manage and diversify our portfolio remains the same. This change will simplify the approach in risk management and will be accommodative to the growth of our portfolio.

2) To increase the combined percentage limit for short-term investments for credit union to 50% from 30%, establish individual percentage limit at 20% and increase the maximum term to 5 years from 3 years.

Prior to 2014, the maximum for credit unions was limited to $25 million or 15% with maturity of 100 days. In 2014, the maximum was increased to $100 million or 25% with maturity of 3 years, and increased again in 2015 to $150 million or 30% with maturity remaining at 3 years. These incremental changes have contributed to marginal but steady increases in the annualized rate of returns for the short-term and long-term portfolio despite a significant decline in the Canada bond yields as illustrated in Table 3.

Table 3

Credit union’s short-term products have a significant yield advantage compared to the traditional money market products. By laddering the fixed deposits or cashable deposits from credit unions, we are able to maintain liquidity in our portfolio while picking up more than 40 BPS in yield.

Longer term credit union deposits typically range from 2 to 5 years. Extending our maximum term from 3 to 5 years can allow significant pick-up in yield when the opportunity arises. 100% of credit union deposits are indirectly guaranteed by the BC government through the Credit Union Deposit Insurance Corporation (CUDIC), a statutory corporation as set out in the Financial Institution Act. This additional layer of protection only available to the credit

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union system is a mitigating factor for credit risks associated with the proposed increase in limit room and maximum term. The maximum individual limit is now in line with Schedule 1 banks.

3) To expand the list of Authorized Investment Dealers.

By expanding our list of authorized dealers, we can be more selective and gain access to a wider range of products. Third-party agents can sometimes offer better yield products as they tend to get preferential rates through the issuing counterparty. Furthermore, these agents offer products that we are not able to buy through the financial institutions ourselves. The selection criteria and requirements of an Authorized Investment Dealer have been outlined in section G of the Corporate Investment Policy. Due diligence will be carried out before accepting a new investment dealer. Any changes to the Authorized Investment Dealers must be approved by the Investment Management Committee comprised of the CFO, Director of Financial Planning and Operations, Division Manager of Financial Planning and Processes and the Treasury Manager.

4) To update the safekeeping requirements With the addition of Authorized Investment Dealers, the safekeeping requirements need to be updated to include products that may be purchased through a third-party agent as some of the investments may be held in nominee or in trust of Metro Vancouver.

5) To update oversight roles for current job titles

As some job titles have changed since the last update to the oversight section, it was prudent to clarify their roles. The Director, Financial Planning and Operations was added where appropriate and the division manager’s title was updated to current.

ALTERNATIVES 1. That the Performance and Audit Committee: a) endorse the Corporate Investment Policy as presented in the report titled “Proposed

Amendments to the Corporate Investment Policy” dated September 29, 2016; and b) forward the report to the Intergovernment and Finance Committee and the GVRD Board for

consideration.

2. That the Performance and Audit Committee make adjustments to the Corporate Investment Policy as appropriate and forward the report to the Intergovernment and Finance Committee and the GVRD Board for consideration.

3. That the Performance and Audit Committee receive the report titled “Proposed Amendments to

Corporate Investment Policy”, dated September 29, 2016 for information.

FINANCIAL IMPLICATIONS If the Board approves alternative 1, the proposed changes allow for potential increased return on investments by providing better limit rooms proportionate to the fluctuating portfolio size and

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expanding available products, especially for the short term instruments which help to maintain liquidity in our portfolio. The proposed changes will not increase the risk to our capital. Not approving these proposed changes to increase investment terms and options may result in an opportunity cost of lost potential returns. SUMMARY / CONCLUSION The corporate investment policy changes highlighted in this report increase our investing flexibility and as a result allow for access to greater investment returns while maintaining the conservative risk exposure appropriate for an organization of our nature. The amendments as included under alternative 1 are recommended to the Board for approval. Attachments: Attachment “A” – Proposed Corporate Investment Policy Adjustments – October 2016 Attachment “B” – Summary Table of Proposed Changes and Impact Attachment “C” – Corporate Investments Policy Revised 19566680

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Proposed Investment Policy Adjustments – October 2016

ATTACHMENT A

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SUMMARY TABLE OF PROPOSED CHANGES AND IMPACT

Proposed Change Impact Remove maximum dollar amounts and update/add new maximum percentage limits.

• Flexibility in the limit rooms as they increase or decrease proportionate to the total portfolio.

Increase percentage limit for short-term less than 1 year for credit unions from 30% to 50%, and extend the maximum maturity from 3-5 years.

• Increased products. • Higher yields. • Laddering of portfolio in the shorter term. • Facilitate cash flow planning as we can set specific maturity dates.

Expand the Authorized Investment Dealers and clarify the selection criteria.

• Expanded product options offered by different dealers. • Higher yields.

Update safekeeping requirement to address products purchased through all Authorized Investment Dealers.

• Updated safekeeping requirements to include investments purchased from Authorized Investment Dealers.

Update oversight section for current job titles • Provides clarification and updates for current job titles

ATTACHMENT B

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CORPORATE INVESTMENTS Effective Date: Approved By:

PURPOSE

To provide guidelines within which investment decisions are made to ensure safety of capital, adequate liquidity and a reasonable rate of return. APPLICATION

This policy applies to all investments on behalf of the corporate entities. POLICY

A. General Objectives: i) Safety of Capital This is the foremost objective of this policy. Prudent investments shall be chosen in a manner that ensures preservation of capital. Consideration therefore must be given to both credit and interest rate risk in all investment decisions. ii) Liquidity Investment portfolios will provide sufficient liquidity to meet the ongoing needs of all Metro Vancouver Districts and the Housing Corporation. Investment terms will be structured as much as possible to meet anticipated cash needs. iii) Yield Portfolios will be invested to produce the highest yield after first considering objectives i) and ii) above and within the investment guidelines in Appendix A.

B. Standard of Care The standard of care to be applied by staff in carrying out their duties is that of a prudent person, in the context of the management of a diversified portfolio. This in turn translates as the exercise of discretion and judgment, in conformity with policies, with the purpose being investment, rather than speculation. The Employee Code of Ethics Policy requires performance to a high standard of integrity, and specifically forbids conflict of interest situations.

C. Investment Parameters Investments will at all times be governed by legislation, specifically the Community Charter Section 183 (copy attached as Appendix C).

ATTACHMENT C BOARD POLICY

Corporate Investments Policy Page 1 of 7

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http://orbit/orbit/llisapi.dll/open/6520516

BOARD POLICY

Short term investments (maximum term 365 days) are restricted to those with a minimum short term credit rating of Standard and Poor’s (S&P) equivalent of A-1 or Dominion Bond Rating Service (DBRS) equivalent of R1Low. Short term investments will be permitted in non-qualifying institutions when such investments are guaranteed by a qualified institution. An example of this would be an investment in a Credit Union in BC which is in turn guaranteed by the Province of BC. Long term investments must have at a minimum a long term credit rating of 'A-' by S&P or DBRS equivalent (A-low).

Both our short term and long term investments are limited to primarily Government debt (provincial and federal) and Canadian financial institutions. The specific details of the qualified investments as well as the maximum portfolio percentages are listed in Appendix A. In instances where an investment falls below one, but not both of the recommended rating agencies (S&P and DBRS), the investment will remain to qualify as an approved investment.

D. Investment Terms Short Term Investments will have a maximum term of 365 days and are restricted to terms listed on Appendix A attached. Long Term Investments are those with term exceeding 365 days. Long term investments will also be restricted to terms listed on Appendix A attached.

E. Tendering Short Term Investments (under 365 days) Investments of terms greater than 15 days require at least three quotes from qualifying dealers. (See comments below concerning Long Term Investments as a potential exception to this rule) Long Term Investments (over 365 days) Long term investments do not necessarily lend themselves to direct comparison. Often there is difficulty in finding the same name or similar credit quality in exactly the same term. This requires that those responsible for long term investing use considerable judgement in determining the investment choice. Where direct comparisons are possible between like or similar investments at least three quotes from qualifying dealers will be required.


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BOARD POLICY

Where direct product comparisons are not available, those responsible for investing must ensure that the offering under consideration is priced fairly. This can be done by verifying spread levels (over benchmark or equivalent term Canada bonds) obtained from two other dealers which support the offering being considered. These spreads should be recorded for subsequent review by internal audit.

F. Safekeeping Investments will be held for safekeeping at either RBC Investor Services (Dexia), Royal Bank Dominion Securities, Bank of Montreal or Clearing and Depository Services Inc. (CDS) for securities whose transfer is book-based rather than by physical delivery. Transfers that are neither book-based nor physical delivery such as cash, term deposits and guaranteed investment certificates are held for safekeeping at the respective credit union or issuing bank or held in nominee (in trust) with the Authorized Investment Dealer.

G. Authorized Investment Dealers Authorized Investment Dealers must meet one of the following criteria: • Wholly owned subsidiary of a Canadian chartered bank that is included in the Approved Investments list

in Appendix A; • Member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian

Investor Protection Fund (CIPF), and hold assets under management greater than $10 billion; • Institution whose deposits or debts are guaranteed by the Credit Union Deposit Insurance Corporation

(CUDIC) or a Province of Canada. Any changes to the Authorized Investment Dealer must be approved by the Investment Management Committee as defined in section H Review, Oversight and Reporting. The Investment Management Committee will also review the list of Authorized Investment Dealers on as needed basis.

H. Review, Oversight and Reporting The statutory authority of the CFO for investment decisions is delegated to the Director, Financial Planning and Operations; Division Manager, Financial Planning and Processes and the Treasury Manager including any appointed in an acting capacity. While day to day investment operations are the responsibility of the Treasury Manager, the Division Manager, Financial Planning and Processes is responsible for its supervision, including review of internal control issues and policy enforcement. Summary reports on investment positions and performance will be prepared monthly for the CFO and the Director, Financial Planning and Operations. The CFO; Director, Financial Planning and Operations; Division Manager, Financial Planning and Processes and the Treasury Manager will meet quarterly (or more frequently as required) as the Investment Management Committee (“Committee”) to review the investment activities as well as current investments issues. The Committee will establish the percentage split of the portfolio between long and short term investments as well as the average term of the portfolio based on existing market conditions and expected future conditions.


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BOARD POLICY

An Approved List of Investments (“Approved List”), based on the Investment Parameters in section C, will be developed and maintained by the Division Manager, Financial Planning and Processes, subject to the approval of the Committee. While changes to the Approved List outlined in Appendix A are subject to the Committee's specific approval, any member of the Investment Management Committee may immediately suspend a previously approved investment at any time on their own authority and, in fact, must do so when he has reason to believe it no longer meets the necessary requirements. The member will immediately advise the other Investment Management Committee members of the decision for suspension along with the reason and repercussions. Quarterly, the investment ratings of all entities included in the Approved List will be reviewed by the Division Manager, Financial Planning and Processes. Upon knowledge of a decrease in the credit rating of an approved investment to a level below the parameters outlined in this policy, the Division Manager, Financial Planning and Processes will immediately advise the Investment Management Committee. As this rating is below the minimum acceptable credit rating, the investment position should be sold with all considerations given to losses and/or penalties. A report will be presented to the Board as of April 30, August 31, and December 31 each year and will include a position statement, performance results compared to benchmark comments and other relevant issues. Metro Vancouver purchases investments with the intention of holding these until maturity and not with further trading in mind. For this reason we will not adjust the portfolio value based on changes in unrealized market value, but rather report investment performance based on actual return to maturity. Our short term investment performance will be compared to the Benchmarks detailed on Appendix B. Finding a benchmark for our long term investments is difficult as most available benchmarks will reflect changes in market valuation. With this in mind, we will provide the benchmarks included on Appendix B as a reasonable general comparison to our long term investment performance. In addition to the audit activities and procedures performed annually by the external auditors and the oversight of the Director, Financial Planning and Operations, the Internal Auditor will review internal controls and ensure compliance with policy and procedures bi-annually. All changes to this policy require Board approval.

Appendices: Appendix A: Approved Investments (Updated October, 2016) Appendix B: Investment Performance Benchmarks Appendix C: Community Charter (Section 183)


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APPENDIX A

Approved Investments (October 2016)

*Includes provincially guaranteed institutions ** Implied BC Provincial guaranty


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APPENDIX B

Investment Performance Benchmarks The benchmarks listed below are used as a guideline to assess the performance / investment returns on investments held. Short Term Investments • Municipal Finance Authority Money Market Fund* • Average One Month Banker's Acceptance Rate** • Average Three Month Banker’s Acceptance Rate** Long Term Investments • Municipal Finance Authority Intermediate Bond Fund • Municipal Finance Authority Long-term Bond Fund *Available on the MFA website **Calculated from the Bank of Canada website


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APPENDIX C

Community Charter Section 183

Investment of municipal funds

183 Money held by a municipality that is not immediately required may only be invested or

reinvested in one or more of the following:

(a) securities of the Municipal Finance Authority;

(b) pooled investment funds under section 16 of the Municipal Finance Authority Act;

(c) securities of Canada or of a province;

(d) securities guaranteed for principal and interest by Canada or by a province;

(e) securities of a municipality, regional district or greater board;

(f) investments guaranteed by a chartered bank;

(g) deposits in a savings institution, or non-equity or membership shares of a credit union;

(h) other investments specifically authorized under this or another Act.


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

Financial Services Department Date: September 23, 2016 Meeting Date: October 21, 2016 Subject: Tender/Contract Award Information – June to August 2016 RECOMMENDATION That the Performance and Audit Committee receive for information the report titled “Tender/Contract Award Information – June to August 2016 dated September 23, 2016”. PURPOSE To provide the Performance and Audit Committee information with regards to contracts, handled through the Purchasing Division, with a total anticipated value at or in excess of $500,000 (exclusive of tax). BACKGROUND The Purchasing Division of Metro Vancouver awards contracts for goods, services and construction in accordance with the Officers and Delegation Bylaws 1208, 284 and 247, and the Procurement and Real Property Contracting Authority Policy adopted by Board of Directors on July 11, 2014, effective September 1, 2014. These Bylaws and Policy outline thresholds for competitive bidding and contracting authorities. Contracts in excess of $500,000 will be reported to the Performance and Audit Committee to align with the thresholds outlined in the Policy. Capital projects may result in the awarding of one or more contracts to complete the project. All contracts are always within budget authority. NEW CONTRACTS - $500,000 to $5,000,000 The following contracts were awarded during the months of June to August 2016: (Details attached as APPENDIX A)

1. Rogers Communications Canada Inc. RFP No. 15-203 Supply and Delivery of Cellular Devices

$2,818,704 GVRD

2. Tritech Group Ltd. ITT No. 16-045 Annacis Island Wastewater Treatment Plant Secondary Clarifier Mechanisms Replacement and Gate Upgrades Construction

$3,344,717 GVS&DD

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3. Polycrete Restorations Ltd. ITT No. 16-010 Seymour Capilano Filtration Plant Clearwell Columns Remediation

$759,420 GVWD

4. CDM Smith Canada ULC RFP No. 16-069 Consulting Services to Prepare a Comprehensive Regional Water System Plan

$935,613 GVWD

5. Park Derochie (Seaside) Coating Inc RFP No. 16-085 Cleveland Dam Drum Gate Resurfacing

$841,467 GVWD

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

$1,113,878 GVWD

7. Jacob Bros. Construction Inc. ITT No. 16-007 North Shore Transfer Station Reconfiguration

$2,497,289 GVS&DD

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

$1,418,080 GVWD

9. Opus DaytonKnight Consultants Ltd. RFP No. 16-051 Consulting Engineering Services for Detailed Design and Construction of MacKay Creek & Grouse Creek Debris

$2,334,174 GVWD

10. All Round Home Improvements and Restorations Ltd. ITT No. 16-133 McBride Place – Balcony Renewal

$799,481 MVHC

11. Black and Veatch RFP No. 14-059 Feasibility Study and Preliminary Design of Katzie SSO Tank and Outfall – Consulting Engineering Services

$538,506 GVS&DD

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

$2,010,558 GVS&DD

13. GEOTrac Systems, Inc. RFP No. 15-188-R Fleet GPS AVL System Solution

$1,562,009 GVRD

14. Jensen Drilling Company Sole Source Cleveland Dam East Abutment E2 Shaft Depressurization – Stage 2 Drains

$3,822,465 GVWD

NEW CONTRACTS – BOARD APPROVED The following contracts were authorized for execution by the GVS&DD or the GVWD or the GVRD Board of Directors or MVHC during the months of June to August 2016 (as such no further information is included in this report):

15. Halton Recycling Ltd dba Emterra Environmental RFP No. 16-071

$115,608,000 GVS&DD

North Shore, Coquitlam and Surrey Transfer Stations Operating and Maintenance Services Agreement

16. AECOM Canada Ltd. RFP No. 15-175

$5,608,318 GVS&DD

Consulting Engineering Services for the Pump Station and Conveyance for Lions Gate Secondary WWTP Project

17. JJM Construction Ltd. ITT No. 15-180

$7,825,000 GVWD

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

18. Turner Construction Company Ltd. RFP No. 16-086

$31,600,000 GVWD

Construction Management for Services & Construction (At-Risk) for Tenant Improvements to Metro Tower III

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

1. Scott Paragon Signs, Astrographics Industries Ltd and Artcraft Display Graphics Inc. RFSO No. 16-021

$1,000,000 GVRD

Supply and Installation of Exterior Grade Signage – Metro Vancouver Regional Parks

2. Klohn Crippen Berger Ltd., Associated Engineering (B.C.) Ltd., Gygax Engineering Associates Ltd. RFSO No. 16-109

$540,000 GVWD

Structural Consulting Engineering Services

3. Poly-Mor Canada Inc. NOIC No. 16-061

$1,000,000 GVRD

For the Supply and injection of High Density Polyurethane Resin to Seal Leaks and Fill Voids on an As and When Needed Basis

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

Value of Amendment(s)

Total Amended Value of Contract

1. AECOM Canada Ltd. $1,800,000 $4,205,971 2. Hatch Mott McDonald $1,358,904 $17,457,075 3. Tetra Tech EBA Inc. $960,586 $2,802,015

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

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

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Attachments and References: APPENDIX A: Information with regard to newly awarded contracts APPENDIX B: Information with regard to Standing Offer Agreements

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

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

(Issued but not awarded) 18459023

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Appendix A Page No. 1

AWARD OF CONTRACT

RFP NO. 15-203 1. A contract was awarded, June 6, 2016 for the GVRD.

To: Rogers Communications Canada Inc. in the anticipated amount of $2,818,704* (exclusive of tax) for supply and delivery of cellular

devices over a six (6) year term. The contract price is within the overall budget. 2. Proponents were invited by MV & BC Bid web sites and private invitation on November 24, 2015.

Closing Date: January 21, 2016 3. Proposals received (exclusive of tax):

Estimated Cost Over Six (6) Years

Rogers Communications Canada Inc. $3,330,104 Telus Communications Co. $3,976,240 Bell Mobility Inc. $4,797,252

4. Proposals reviewed by: Contractual: Purchasing Division Staff Technical: Corporate Services Department Staff 5. Award was made to the highest ranked proponent based on the evaluation criteria established

in the RFP, whom coincidentally provided the lowest cost. *Cost lowered due to negotiations of in-building coverage

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AWARD OF CONTRACT

TENDER NO. 16-045 1. A contract was awarded, June 14, 2016 for the GVS&DD.

To: Tritech Group Ltd. in the amount of $3,344,717 (exclusive of tax) for Annacis Island Wastewater Treatment Plant

Secondary Clarifier Mechanisms Replacement and Gate Upgrades Construction. The contract price is within the overall budget. 2. Three (3) firms were shortlisted as a result of RFQ No. 16-110 and invited to bid on Tender No.

16-045.

Closing Date: June 9, 2016 3. Tenders received (exclusive of tax):

Tritech Group Ltd. $3,344,717 NAC Constructors Ltd. $3,469,000 Maple Reinders Inc. $4,255,700

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

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AWARD OF CONTRACT

TENDER NO. 16-010 1. A contract was awarded, June 15, 2016 for the GVWD.

To: Polycrete Restorations Ltd. in the amount of $759,420 (exclusive of tax) for Seymour-Capilano Filtration Plant Clearwell

Columns Remediation. The contract price is within the overall budget. 2. Tenders were invited by MV & BC Bid web sites and private invitation on April 27, 2016.

Closing Date: May 31, 2016 3. Tenders received (exclusive of tax):

Polycrete Restorations Ltd. $759,420 Jacques Daoust Coatings Management Inc. $956,506 JW Farkas Concrete Restorations Ltd. $971,673 Concrete Solutions Inc. $1,579,135

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

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AWARD OF CONTRACT

RFP NO. 16-069

1. A contract was awarded June 24, 2016 for the GVWD. To: CDM Smith Canada ULC in the estimated amount of not more than $935,613 (exclusive of tax) for consulting services to

prepare a Comprehensive Regional Water System Plan. The contract price is within the overall budget. 2. Proponents were invited by MV & BC Bid web sites and private invitation on March 23, 2016. Closing Date: May 3, 2016 3. Proposals received (exclusive of tax):

Estimated Cost Based on 4700 Hours AECOM $791,761 CH2M Hill $799,750 CDM Smith Canada $935,613 Urban Systems $975,000

4. Proposals reviewed by: Contractual: Purchasing Division Staff

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

in the RFP.

6. CDM Smith provided an excellent proposal, demonstrating extensive experience delivering similar projects. Their project manager has excellent demonstrated experience in this type of work. CDM staff proposed for this project also have significant experience in key components of this assignment.

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AWARD OF CONTRACT

RFP NO. 16-085

1. A contract was awarded June 29, 2016 for the GVWD. To: Park Derochie (Seaside) Coating Inc in the amount of $841,467 (exclusive of tax) for the Cleveland Dam Drum Gate Resurfacing. The contract price is within the overall budget. 2. Proponents were invited by MV & BC Bid web sites and private invitation on April 29, 2016. Closing Date: June 2, 2016 3. Proposals received (exclusive of tax):

Park Derochie (Seaside) Coating Inc. $841,467 The Industra Group $911,575



in the RFP, whom coincidentally provided the lowest cost.

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AWARD OF CONTRACT

RFP NO. 15-128

1. A contract was awarded July 8, 2016 for the GVWD. To: BGC Engineering Inc.

in the anticipated amount of $1,113,878 (exclusive of tax) for Consulting Engineering Services

for Detailed Design and Construction Engineering of Mackay Creek & Grouse Creek Debris Flow Mitigation. The initial award is limited to detailed design at a cost of $812,868 and subsequent phases of the work will be awarded subject to mutual agreement.

The contract price is within the overall budget. 2. Proponents were invited by MV & BC Bid web sites and private invitation on February 1, 2016. Closing Date: March 8, 2016 3. Proposals received (exclusive of tax):

Tetra Tech EBA Inc. $976,965 BGC Engineering Inc. $1,113,878



in the RFP.

6. BGC Engineering Inc. proposal demonstrated a thorough understanding of the scope of work for each phase, including identifying and understanding the key issues, and providing a precise methodology and detailed work plan along with appropriate staff capability, experience and availability. Key staff are recognized for their expertise in this type of work.

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AWARD OF CONTRACT

TENDER NO. 16-007 1. A contract was awarded, July 12, 2016 for the GVS&DD.

To: Jacob Bros. Construction Inc. in the amount of $2,497,289 (exclusive of tax) for North Shore Transfer Station Reconfiguration

plus an additional $414,637 for a total of $2,911,926. The $414,637 is the result of a provision that required the successful bidder to novate the supply of a contract for 2 pre-fabricated buildings previously procured by Metro Vancouver.

The contract price is within the overall budget. 2. Tenders were invited by MV & BC Bid web sites and private invitation on May 31, 2016.

Closing Date: June 30, 2016 3. Tenders received (exclusive of tax):

Jacob Bros. Construction Inc. $2,497,289 Eurovia British Columbia Inc.

$2,868,784

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

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AWARD OF CONTRACT

RFP NO. 16-097

1. A contract was awarded July 29, 2016 for the GVWD. To: Ausenco Engineering Canada Inc.

in the anticipated amount of $2,097,236 (exclusive of tax) for Consulting Engineering Services –

Detailed Design and Construction Engineering Services for the Fleetwood Reservoir. The initial award is limited to preliminary design at a cost of $1,418,080 and subsequent phases of the work will be awarded subject to mutual agreement.

The contract price is within the overall budget. 2. Three (3) firms were shortlisted as a result of RFQ No. 16-056 and invited to propose on RFP No.

16-097 Closing Date: May 26, 2016 3. Proposals received (exclusive of tax):

Ausenco Engineering Canada Inc. $2,097,236 Stantec Consulting Ltd. $2,252,700 AECOM $2,642,066



in the RFP, whom coincidentally provided the lowest cost.

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AWARD OF CONTRACT

RFP NO. 16-051

1. A contract was awarded July 8, 2016 for the GVWD.

To: Opus DaytonKnight Consultants Ltd.

in the anticipated amount of $2,334,174 (exclusive of tax) for Consulting Engineering Services

for Preliminary Design of Coquitlam Main No. 4. The anticipated amount is a combination of the successful consultants proposed price of $1,997,453 and an additional $336,721 to account for issues identified during negotiations as allowed for in the RFP resulting in a total amount of $2,334,174.

The contract price is within the overall budget.

2. Proponents were invited by MV & BC Bid web sites and private invitation on February 11, 2016.

Closing Date: March 29, 2016

3. Proposals received (exclusive of tax):

Stantec Consulting Limited $1,678,225 Opus DaytonKnight Consultants Ltd. $1,997,453 CDM Smith Canada ULC $2,110,364 CH2M Hill Canada Limited $2,124,150



in the RFP. 6. Opus demonstrated a good understanding of the project scope and submitted a very good work

methodology to address project issues.

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AWARD OF CONTRACT

TENDER NO. 16-133 1. A contract was awarded, July 26, 2016 for the MVHC.

To: All Round Home Improvements and Restorations Ltd. in the amount of $799,481 (exclusive of tax) for McBride Place – Balcony Renewal. The contract price is within the overall budget. 2. Tenders were invited by MV & BC Bid web sites and private invitation on June 9, 2016.

Closing Date: July 14, 2016 3. Tenders received (exclusive of tax):

All Round Home Improvements and Restorations Ltd. $799,481 Boston Construction Corp. $912,157 JLK Projects Ltd. $927,000 Silex Restorations Ltd. $1,052,000 Centra Construction Limited $1,052,580 Coast Pro Contracting Ltd. $1,097,000 Ocean West Construction $1,123,000 Pacific Building Envelope Maintenance Ltd. $1,202,000

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

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AWARD OF CONTRACT

RFP NO. 14-059

1. A contract was awarded September 26, 2014 for the GVS&DD.

To: Black and Veatch Canada

in the anticipated amount of $340,325 (exclusive of tax) for Feasibility Study and Preliminary

Design of Katzie SSO Tank and Outfall – Consulting Engineering Services. The total anticipated value of this contract is expected to increase by an additional $198,181 to $538,506 to account for issues identified during negotiations, as allowed for in the RFP. The initial award is limited to the feasibility study at a cost of $233,153 and the subsequent phases of work will be awarded subject to mutual agreement.


2. Proponents were invited by MV & BC Bid web sites and private invitation on May 5, 2014. Closing Date: June 3, 2014


Black & Veatch $340,325 CH2M Hill $341,318 Delcan $307,531 HDR $352,358


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

in the RFP, and the third lowest proponent.

6. Black and Veatch Canada proposal demonstrated a thorough understanding of the project scope and issues and presented a workable methodology and schedule for this project.

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AWARD OF CONTRACT

RFP NO. 15-178

1. A contract was awarded August 30, 2016 for the GVS&DD.

To: Siemens Canada Limited

in the anticipated amount of $1,945,473 (exclusive of tax) for Supply and Delivery of 69kV Gas

Insulated Switchgear for the Sapperton Pump Station Replacement. The total anticipated value of this contract is expected to increase by an additional $65,085 to $2,010,558 to account for issues identified during negotiations as allowed for in the RFP.


2. Proponents were invited by MV & BC Bid web sites and private invitation on December 22, 2015.

Closing Date: February, 2016


Alstom Grid Canada ULC $1,686,500 HICO America Sales & Technology Inc. $1,769,977 Siemens Canada Limited $1,945,473 ABB Inc. $2,071,255


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

in the RFP. 6. Siemens proposal offered a proven GIS system and provided a long list of successful projects.

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AWARD OF CONTRACT

RFP NO. 15-188-R

1. A contract was awarded August 26, 2016 for the GVRD.

To: GEOTrac Systems, Inc.

in the anticipated amount of $1,724,071 (exclusive of tax) for Fleet GPS AVL System Solution.

The total anticipated value of this contract is expected to decrease by $162,062 to $1,562,009 to account for issues identified during negotiations as allowed for in the RFP.


2. Sixteen (16) firms were shortlisted as a result of RFQ No. 15-048 and invited to propose on RFP

No. 15-188-R.

Closing Date: January 26, 2016


DataTrail $1,350,395 GeoTrac/Trimble $1,724,071 Advantage Asset $1,814,618 International Road Dynamics $1,900,379 WebTech Wireless $1,997,438 Cypress Solutions $2,283,666 Telus $1,651,225,280


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

in the RFP.

6. GEOTrac Systems, Inc. were chosen due to the functionality and proven ability of their system, together with their user friendly software with a focus on worker safety and competitive pricing gave them the overall highest score.

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AWARD OF SOLE SOURCE CONTRACT

1. A contract was awarded August 30, 2016 for the GVWD.

To: Jensen Drilling Company in the amount of $3,822,465 (exclusive of tax) for Cleveland Dam East Abutment E2 Shaft

Replacement – Stage 2 Drains. Jensen Drilling Company is installing up to an additional three (3) horizontal drains as part of the

Stage 2 production drains program. During the RFP process for Stage 1 test drain drilling, it was determined that Jensen was the most

qualified firm to undertake this challenging work. Their performance and invaluable experience gained during the installation of the Stage 1 test drain in 2014 and 2015, led to this recommendation to continue with Jensen Drilling Company for the next stage of the work.

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Appendix B Page No. 1

STANDING OFFER AGREEMENTS

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

Title Number of Responses Received

Awarded To: Anticipated Term

Total Anticipated Value

16-021 – Supply and Installation of Exterior Grade Signage – Metro Vancouver Regional Parks

Nine (9) 1. Scott Paragon Signs 2. Astropraphics

Industries Ltd. 3. Artcraft Display

Graphics Inc.

Five (5) years $1,000,000

16-109 – Structural Engineering Consulting Services

Nine (9) 1. Klohn Crippen Berger Ltd. 2. Associated Engineering (B.C.) Ltd. 3. Gygax Engineering Associates Ltd.

Three (3) years

$540,000

16-061 – For the Supply and injection of High Density Polyurethane Resin to Seal Leaks and Fill Voids on an As and When Needed Basis

One (1)

1. Poly-Mor Canada Inc. Five (5) years $1,000,000

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Appendix D Page No. 1

AMENDMENT TO A PREVIOUSLY REPORTED CONTRACT

RFP No. 12-136 PURCHASE ORDER NO. 125807

Sapperton Pump Station Replacement Project

for the GVS&DD

1. Name of Contractor:

AECOM Canada Ltd.

2. Date Contract Reported:

March 2013

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

$3,146,889

4. Amendment Number: 01

5. Value of Amendment (exclusive of tax): $1,059,082

6. Amendment Type: Additional Services

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

$4,205,971

8. Budget Status:

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

9. Reason for Amendment to Contract:

Amendment No. 01 includes additional site development activities, parks and community design, utility servicing, city requirements and reviews. The size and complexity of the project have increased so additional design effort is needed to complete detailed design and tendering.

PAU - 94



PURCHASE ORDER NO. 10690A

Construction Management Services for the Port Mann Water Supply Tunnel

for the GVWD


Hatch Mott McDonald


October 2009


$16,098,171


5. Value of Amendment (exclusive of tax): $1,358,904



$17,457,075 (includes Amendment No. 01)

8. Previous Amendment Explanation (Reported to Performance and Audit Committee April 2015)

Amendment No. 01 mainly covered the estimated additional fees and disbursements required to continue to provide construction management services for the Port Mann Water Supply Tunnel project from the total project completion date of early 2015 anticipated at the start of construction through to the revised forecast completion date of April 2016. This amendment predominantly accounted for extended services due to construction delays which occurred during the slurry wall, shaft excavation and tunneling phases of work.

9. Budget Status:



Amendment No. 02 covers the estimated fees and disbursements required to provide construction management services from the previous revised forecast completion date of April, 2016 to the new revised forecast completion date of December, 2016.

PAU - 95



RFP No. 00-071 PURCHASE ORDER NO. 063744

Detailed Design of E2 Shaft Replacement/Remediation at Cleveland Dam – East Abutment

for the GVWD


Tetra Tech EBA Inc.


November 2000


$401,685


5. Value of Amendment (exclusive of tax): $960,586



$2,802,015 (includes value of previously reported Amendment No. 01-06 in the amount of $1,439,744)

8. Previous Amendment Explanation (Reported to Performance and Audit Committee October, 2007)

Amendment Nos. 01 - 06 included: additional services in 2001 related to the E3 seep and scope changes to site investigation including field drilling services, pump well installation and testing and detailed design of permanent pumping wells (3); additional design and construction supervision services to implement the Technical Review Board’s 3-phase solution to the E2 Drainage Shaft remediation as reported to the GVWD Board in September 2002; construction supervision of permanent pump wells (3); support for Capilano Main No. 4 design; rehabilitation of the E2 Drainage Shaft; detailed design related to Phase 3 of the work and engineering field services during the horizontal test drain/well construction program.

9. Budget Status:



Amendment No. 07 covers costs for construction engineering services related to the Stage 2 production drains program.

PAU - 96

Appendix E September 23, 2016

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

(Issued but not awarded)

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

Tender/RFP Closing Date

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

March 22, 2016

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

March 1, 2016

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

April 26, 2016

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

April 19, 2016

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

May 26,2016

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

May 10, 2016

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

June 24, 2016

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

June 21, 2016

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

June 16, 2016

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

June 14, 2016

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Tender No. 16-159 Construction – Carvolth Trunk Sewer Cured-in-Place Pipe Repair (Awarded less than $500K)

July 21, 2016

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

July 19, 2016

RFP No. 16-114 Maple Ridge and Langley Transfer Stations Operating and Maintenance Services Agreement

July 14, 2016

RFP No. 16-137 Design, Supply, Delivery and Installation of Floating Dock and Underwater Achoring System for an Existing Boathouse at Capilano Reservoir (Cancelled)

August 18, 2016

RFP No. 16-153 Supply and Installation of Office Furniture

August 12, 2016

RFP No. 16-145 Coquitlam Intake No. 2 – Project Definition

August 9, 2016

RFP No. 16-107 Consulting Engineering Services for the Port Moody Pump Station Upgrade

August 4, 2016

RFP No. 16-150 Supply and Delivery of Sodium Carbonate

August 4, 2016

Tender No. 16-035 Sapperton Pump Station Replacement Project – Contaminated Soil removal (Awarded less than $500K)

August 4, 2016

Tender No. 16-029 Sperling Pump Station Upgrading Project

September 29, 2016

RFP No. 16-178 Supply and Delivery of Office Supplied

September 29, 2016

Tender No. 16-119 Construction of Clayton Reservoir Phase 1

September 27, 2016

RFP No. 16-152 Consulting Engineering Services for the Port Mann Main No. 2 – South Project

September 22, 2016

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Tender No. 16-054 Construction of Cloverdale Pump Station Variable Frequency Drives Replacement Electrical Supply and Installation

September 15, 2016

RFQ No. 16-177 Construction – Iona Island WWTP Power Distribution Upgrade Project

September 15, 2016

RFP No. 16-154 Services – Contingency Disposal of Biosolids

September 13, 2016

RFP No. 16-151 Consulting Engineering Services – Backup Power for Capilano Raw Water Pump Station and Westburnco Pump Stations

September 13, 2016

Tender No. 16-034 Sapperton Pump Station Replacement Project

September 8, 2016

RFQ No. 16-144 Consulting Engineering Services for Large Diameter Water Main Projects

September 8, 2016

RFP No. 16-128 Consulting Engineering Services – Detailed Design and Construction Engineering Services for the Jericho Reservoir

September 8, 2016

Tender No. 16-100 Supply and Delivery of Concrete Sewer Pipe for South Surrey Interceptor Johnston Road

September 8, 2016

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To: Performance and Audit Committee From: Phil Trotzuk, Chief Financial Officer Date: October 5, 2016 Meeting Date: October 21, 2016 Subject: Manager’s Report RECOMMENDATION That the Performance and Audit Committee receive for information the report titled “Manager’s Report” dated October 5th, 2016. 1. Performance and Audit Committee Work Plan Update Attachment 1 is the updated 2016 Work Plan indicating the status of the Committee’s key priorities. 2. Continuous Improvement Project Report – Graphics Design Process

The Continuous Improvement project for Graphics Design Process is nearing conclusion. The project team has completed its work and the implementation of recommendations by the department is underway. There was very good participation by External Relations department staff and they have indicated that they found it beneficial. The final step of the process is to collect metrics and qualitative information on improvements efficiency and effectiveness when implementation is complete. This work will be completed over the next few months and a full report is anticipated to be presented at the next scheduled Performance and Audit Committee meeting.

3. Financial Management System – Improvement Metrics

Following questions by the Committee during the presentation on Continuous Improvement the Financial Management System project at the last meeting, we have begun gathering performance metrics for select key processes in our existing system so that we can compare performance with our new system once it is place. The new system is expected to go live in mid-2017, so we would expect to be able to gather comparative data later next year and report back to the Committee in early 2018.

4. Annual Audit

The annual audit which will be conducted by BDO Canada LLP is scheduled to begin with the interim visit the week of November 21st. The yearend audit work is scheduled to commence the week of March 6th with results reported back to the Committee at its meeting in April.

5. DCC Review Process Update

The process to review the DCC rates for GVS & DD is in the consultation stage. Presentations to the regional advisory committees (RAAC, REAC, RFAC, RPAC) have just been completed and over the winter the team will engage industry (Urban Development Institute, Greater Vancouver Homebuilders Association, Board of Trade, Chamber of Commerce) and conduct public open houses. Any revisions to the calculations following consultation will be made followed by a report and bylaw coming forward in the spring of 2017.

5.7

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The rate scenarios supported and put forward for consultation by the review committee are based on a 30 year timeframe with options to include interest, and without interest which is more likely to be supported by the Ministry. Due to the magnitude of expected changes to the rates, a significant notice period is being considered as well as phasing in the full effect over a three year period.

Attachments: 1. Performance and Audit Committee 2016 Work Plan

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ATTACHMENT 1

Performance and Audit Committee 2016 Work Plan Report Date: October 5, 2016

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

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greater vancouver regional district ...friday, october 21, 2016 9:00 a.m. 2 nd floor boardroom, 4330...

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