page 2 of 4 ladner channel dredging july ... - document center

To: Mayor and Council

The Corporation of Delta COUNCIL REPORT

Regular Meeting

From: Human Resources and Corporate Planning Department

Date: July 27, 2012

Ladner Channel Dredging Multiple Accounts Evaluation Report

The following report has been reviewed and endorsed by the Chief Administrative Officer .

• RECOMMENDATIONS:

F.11

A. THAT copies of the "Multiple Accounts Evaluation: Dredging Ladner Harbour and Related River Channels" (InterVistas Consulting, July 2012) be forwarded to:

i. Honourable Blair Lekstrqm, Minister of Transportation & Infrastructure;

ii. Honourable Denis Lebel, Minister of Transport;

iii. Honourable Peter Kent, Minister of Environment;

iv. Honourable Ed Fast, Minister of International Trade;

v. Honourable Terry Lake, Minister of Environment

vi. Micheline Leduc, Director General, Fisheries & Oceans Canada (Small Craft Harbours;

vii. Kerry-Lynne Findlay, QC, MP Delta-Richmond East;

viii. Jinny Sims, MP Newton-North Delta

ix. Vicki Huntington, MLA Delta South

x. Guy Gentner, MLA Delta North

for consideration with respect to government funding for the dredging program.

B. THAT copies of the report be provided to Port Metro Vancouver and the Ladner Sediment Group for information .

• PURPOSE:

The purpose of this report is to present the findings of a revised multiple accounts evaluation study that was undertaken by InterVistas Consulting with respect to the Ladner Harbour local channel dredging program.

of 4 Ladner Channel Dredging July 27, 2012 Multiple Accounts Evaluation Report

• BACKGROUND:

Since 2009, Delta has been working with Port Metro Vancouver, the Ladner Sediment Group, and other stakeholders to develop a strategy and identify funding sources to alleviate the sedimentation problems that are occurring around Ladner Harbour and nearby secondary channels. As background, a briefing note for the Select Standing Committee on Finance and Government Services is included as Attachment A.

At the July 16, 2012 Regular Meeting, Council reviewed a preliminary report by InterVistas Consulting with respect to the Ladner Harbour local channel dredging program. The study undertaken by InterVistas takes into consideration the social, environmental, and economic impacts of the proposed dredging project.

The results of the multiple accounts evaluation suggest that there is a strong business case for properly dredging Ladner Harbour and surrounding river channels, which would result in positive environmental, economic and social impacts for the community.

• DISCUSSION:

Based on feedback received from Council at the July 16, 2012 Regular Meeting as well as input from stakeholders including the Ladner Sediment Group, staff reviewed the preliminary report with InterVistas and worked towards a revised report, which is included as Attachment B.

Key points of the report include:

• Ladner Harbour and surrounding river channels provide a range of maritime services to commercial and pleasure craft in the region, and plays a key environmental, economic and social role for the community.

• Since the end of the federally funded dredging program, significant sedimentation has occurred in the local waterways resulting in navigational and environmental concerns.

• Environmentally, these waterways playa critical role in sustaining terrestrial and aquatic biodiversity in the region - serving as native habitat for 300 species of birds and 80 types of fish and shellfish.

• Sedimentation also increases flood risk for the communities located along these waterways. Particularly, flooding is a potential natural disaster risk that can cost the Fraser Valley an estimated $1.8 billion in damages.

Key revisions to the report include:

• Enhanced analysis of float homes in the area including an assessment of float home owners' economic contribution to the community and the amount spent on maintenance and operations.

of 4 Ladner Channel Dredging July 27, 2012 Multiple Accounts Evaluation Report

• An assessment of the value of fish landed in Ladner Harbour waters.

• An assessment of potential future impact of developments that would be facilitated by dredging.

• Increased job, economic output, and taxation values associated with Ladner Harbour and the surrounding river channels to reflect the enhanced analysis.

The report reveals substantial economic impact associated with Ladner Harbour and surrounding river channels. These include:

• 285 direct jobs equivalent to 235 person years of FTE employment; • $8.3 million in direct wages; • $14 million in direct GOP; and • Over $51 million in direct economic output.

In addition, economic activity in the region generates significant tax revenues for all levels of government including:

• Nearly $2.2 million in Federal tax revenues; • Over $990,000 in Provincial tax revenues; and • Approximately $744,000 in Municipal tax revenues.

The InterVistas study provides a strong business case for dredging Ladner Harbour and nearby river channels. Therefore, it is recommended that this report along with its attachments, including the InterVistas study, be distributed to the federal and provincial governments with a request for funding to match the $4 million already committed by Delta and Port Metro Vancouver.

Implications: Financial Implications - the total project cost is estimated to be $8 million. Port Metro Vancouver has committed $2 million and Delta Council has approved the contribution of matching funds from Delta's accumulated reserves account which will have no impact on municipal property tax levels.

• CONCLUSION:

The revised multiple accounts evaluation completed by InterVistas Consulting demonstrates substantial economic, environmental, and social impacts for the community associated with Ladner Harbour and nearby river channels. It is recommended that the report be submitted to various stakeholders, in particular, the federal and provincial governments, which are being asked to contribute funding towards the dredging program.

Ladner Channel Dredging Multiple Accounts Evaluation Report

Sean McGill

>J, I

of 4

Director of Human Resources and Corporate Planning

Department submission prepared by: Michael Gomm, MPP, Senior Policy Analyst

• ATTACHMENTS:

July 27, 2012

A. September 16, 2010 Briefing Note for the Select Standing Committee on Finance and Government Services

B. Multiple Accounts Evaluation: Dredging Ladner Harbour and Related River Channels InterVistas Consulting, July 2012

! C\Cound! n8p()n~;\DnxJnlng\lni.el'vlsta~; Studv\Uelillr:H-f:)bl"",,\Cn .. llltr-)I'\jisl:;.l~; ["-'olloV'! Up,clocx - 1-:I-id,'lY Ju1v 27. ?(fl:<, 10:0l:0/l-I\M

September 16, 2010

SELECT STANDING COMMITTEE ON FINANCE AND GOVERNMENT SERVICES

Funding for Local Channel Dredging in the lower Fraser River

EXECUTIVE SUMMARY:

ATIACHMENT 'A' Page 1 of 6

The Fraser River is British Columbia's largest river, flowing 1,400 km and draining one quarter ofthe landscape. It also carries 20 million tonnes of sediment annually into the Fraser delta, most of it during the spring freshet.

Historically, dredging of the Fraser River was the responsibility of the Canadian Coast Guard and funded by the Federal Government. In late 1998, federal funding ceased, and responsibility for dredging the deep-sea shipping channels was passed onto what is now Port Metro Vancouver.

Also at that time, Transport Canada placed engineered structures at key locations in the lower Fraser River to divert most of the flow into the main channel. While this was successful in reducing the need for dredging the main channel, it was to the detriment of the local navigation channels where flow was reduced by as much as 70%, thereby accelerating the deposition of sediment.

Since the cessation of the federal dredging program, there has been over 10 years of sediment accumulation in the lower Fraser's local navigation channels. Recent bathymetric analyses have determined that 1.2 million cubic meters of sediment needs to be removed to return the channels to pre-1990 conditions. Sediment loads are expected to increase as a result of the massive deforestation and soil erosion caused by the mountain pine beetle.

The potential impacts of continued non-dredging of the local channels in the Lower Fraser include:

• Increased flood risk - failure to adequately dredge local channels contributes to rising river bottom levels and a greater likelihood of high spring freshet river flows overtopping the dyke system, particularly when coupled with winter storm conditions.

• Vulnerability to climate change - a recent research project undertaken by Natural Resources Canada identified the Fraser Delta as being highly vulnerable to the effects of climate change, increasing storm severity and sea-level rise. Dyke reinforcement and river dredging are key components in the mitigation strategy.

• Impacts on the provincial and local economy - industries and urban areas along the Fraser River account for 80% of the provincial and 10% of the national gross domestic product. In 2003, DFO commissioned a study to assess the economic impacts of the Small Craft Harbours network of fishing harbours in British Columbia. According to the study, in 2001-2001, the province's 101 fishing harbours generated upwards of $800 million in economic activity.


Fraser River Local Channel Dredging The Corporation of Delta September 2010

• In 2008, Port Metro Vancouver handled over 33 million tonnes of cargo, contributing $4.6 billion in GDP and $9.6 million in economic output.

• On a local scale, numerous communities along the lower Fraser River from Delta and Richmond up to Mission are being negatively impacted by the lack of dredging. Economic losses totalling millions of dollars include property devaluation, relocation of industries, loss of property taxes, impacts on local marinas, local fisheries and float home communities.

In Delta, the impacts of sedimentation are most apparent in the channels around Ladner Harbour. This vital economic, cultural and community harbour is often only accessible at high tides and it is not uncommon to see vessels stranded or run-aground in the centre of the local channel. Ladner Harbour is one of 1170 small craft harbours owned by DFO and is included in the 750 considered to be core harbours that are critical to fishing and aquaculture industries.

A local community group, the Ladner Sediment Group, has recently received funding from Port Metro Vancouver to undertake a study ofthe sedimentation and river flow processes in the Ladner area. The goal is to develop a long-term sustainable sediment management plan for the area - a plan that does not necessarily rely on annual dredging to solve the problem. Computer modelling of various flow diversion scenarios is underway and the results are expected by the end of 2010.

The Corporation of Delta is also preparing a grant application to the Provincial Flood Protection Program of Emergency Management BC for funding to assist in implementing the Ladner Harbour sediment management program once it has been developed.

This issue of local channel dredging has been raised at numerous times with the Federation of Canadian Municipalities, the Union of British Columbia Municipalities, and presentations have been made to the House of Commons Standing Committee on Finance, to Federal and Provincial Ministers, and to the BC Federal Conservative Caucus. So far, no government agencyhas been willing to commit to funding this essential service.

In summation, there is an immediate and urgent need to establish a long-term, sustainable dredging program for the secondary navigation channels of the lower Fraser River. Delta is therefore requesting that the Provincial Government, with or without federal support, contribute annual funding for local navigation channel dredging in the lower Fraser River.

BACKGROUND:

The Fraser River, flowing more than 1,400 km and draining an area one-quarter of the area of the province, is the largest river in British Columbia. Annually, more than 20 million tonnes of sediment is carried from the upper Fraser River in the interior and deposited in the lower Fraser River delta. The mass tree loss caused by the mountain pine beetle is contributing to soil runoff and increased sediment loads in the river. In order to keep shipping channels open, maintenance dredging must be undertaken. Without dredging, key deep sea shipping and domestic navigational channels on the lower Fraser would become too shallow for commercial and domestic vessels to safely access port facilities.

For nearly 100 years, dredging of the Fraser River was the responsibility of the Canadian Coast Guard (CCG) and funded by the Federal Government. In the early 1990's, Transport Canada placed

Fraser River Local Channel Dredging The Corporation of Delta


September 2010

diversions at critical locations along the river to divert more water into the deep-sea shipping and the domestic navigational channels. The intention of this diversion was to increase flow into these channels, and reduce the reliance on dredging. This project was successful in that it saved millions of dollars in dredging expenditures; however, it came at the expense of the local channels which were inundated with additional silt that has dramatically reduced water depths.

In late 1998, federal funding stopped, CCG ceased dredging and since then the local port authority, Port Metro Vancouver (PMV), has undertaken regular maintenance dredging of primarily the main channel of the lower Fraser. Funding to conduct their dredging activities came from a $15 million settlement from the CCG for early termination of their dredging agreement. Between 1999 and 2002 the port authority dredged some local navigation channels; but the settlement funding has since been depleted and scheduled maintenance dredging of local navigation channels had to stop. Since the cessation of the dredging program, there has been approximately 10 years of sediment accumulation in the lower Fraser's local navigation channels. Recent bathymetric analyses have determined that 1.2 million cubic meters of sediment needs to be removed.

PORT METRO VANCOUVER:

Port Metro Vancouver currently dredges the lower Fraser River for navigation purposes where commercially viable. Since undertaking this task in 1999, they have focused the majority of their efforts on maintaining and improving the main channels only. However, Port Metro Vancouver recognizes the significant economic and local community and industry benefit from ensuring that smaller users can still safely access the local navigation channels. In an effort to create sustainable long-term certainty around access to these sites, the Port is assisting users with the development of user-based, long-term maintenance plans. Port Metro Vancouver has already conducted some preliminary studies to determine the costs to undertake local navigation channel dredging. The results of the study indicate that restoring the channels to pre-1998 conditions will cost an estimated $5 million as a onetime expenditure and $500,000 annually as an on-going maintenance dredging expenditure.

To assist with these costs, PMV has developed a lO-year Local Channel Dredging Contribution Program that will provide financial support for riverfront communities to undertake their own dredging activities beyond deep sea and domestic shipping channels. The contribution program will support long-term community-based plans and has been budgeted at up to $7 million over 10 years but shall not exceed $500,000 per local channel over a 10-year period. Port Metro Vancouver is providing $125,000 for Ladner Sediment Group (user group in Delta) to retain a consultant to undertake a Ladner Harbour Sedimentation Study to assess how the group can use other tools, not just dredging, to reduce the amount of sediment build-up in the local navigation channels.

While a benefit to long-term sustainable planning initiatives the Port contributions are completely inadequate to maintain local channels at a safe and acceptable depth. Therefore, Delta is requesting that the Provincial Government provide adequate long term funding to implement a local navigation channel dredging program on the Fraser River.

IMPACTS OF LOCAL NAVIGATION CHANNEL INFILLING:

LADNER SEDIMENT GROUP There are many and varied local navigation channel users groups in Delta. Many are represented by the Ladner Sediment Group. The Ladner Sediment Group consists of water lot owners, local

Fraser River Local Channel Dredging The Corporation of Delta


September 2010

business owners and local channel users. This group is serving as a catalyst to deliver the message of the impacts of the neglect of the local channels. They understand their responsibility to keep water lots clean and free of silt. But it is currently an effort in futility when the channel is silted in. When water lots are dredged at significant costs to individuals they become lower than the river's local navigation channels. This causes silt from the local channel to slough back into the hole. In the past, water lot dredging typically lasted 4 to 5 years. Today, it is fortunate to keep an adequate draft for 4 to 6 months. Float homes, docks, boats and other structures are now regularly and dangerously being lifted out of the water by local channel river sediment. Figures 1 and 2 provide good examples of this regular occurrence.

1

This dock used to receive large vessels but has been inaccessible for 5 years.

Figure 2

A tug and barge stuck in the middle of a local channel.

The local navigation channels are silting in at an alarming rate. Where there was 20 ft of water at low tides there are now many areas that are only 2 to 3 feet deep. This has resulted in the channels becoming a hazard to navigate, water lease lot owners experiencing their floating homes and vessels tied to docks going aground at low tide, at times causing damage to the structure, commercial and residential boat owners can no longer safely access areas when there is insufficient water to navigate, and substantial private expenditures are being incurred to keep floating structures out of the mud.

FISHERIES AND OCEANS CANADA'S SMALL CRAFTHARBOURS: Fisheries and Oceans Canada's Small Craft Harbours (SCH) program is responsible for ensuring core fishing harbours are kept open and in good repair. Of the 1170 small craft harbours owned by DFO, approximately 750 are considered to be core harbours - those which are considered critical to the fishing and aquaculture industries are managed by Harbour Authorities. Ladner Small Craft Harbour, managed by the Ladner Harbour Authority is one of these core harbours. The Ladner Small Craft Harbour is accessible via a local navigation channel of the Fraser River and is located in the municipality of Delta. This vital economic, cultural and community harbour is often only accessible at high tides . It is not uncommon to see vessels stranded and run aground in the centre of the local channel trying to navigate to the larger channels. Boats, docks and other structures in this harbour are regularly seen sitting askew as the tide drains to leave them sitting on the river bed. It is essential that this important channel remain open and accessible.

ECONOMIC IMPORTANCE OF LOCAL NAVIGATION CHANNELS: Industries and urban areas along the Fraser River account for 80% of the provincial and 10% of the national gross domestic product. In 2003, DFO commissioned a study to assess the economic

Fraser River local Channel Dredging

The Corporation of Delta

ATIACHMENT 'A' Page 5 of6

September 2010

impacts of the SCH network of fishing harbours in British Columbia. According to this study, in 2001-2002, the province's 101 fishing harbours generated upwards of $800 million in economic activity (including commercial fishing, marine recreation, and other activities such as aquaculture). This was directly translated into an estimated $485 million in annual gross domestic product, $245 million in annual labour income (wages plus benefits), and 6,135 person-years of annual employment. In addition to fishing harbours, in 2003, the Fraser River Port - one of three ports amalgamated to create Port Metro Vancouver directly generated 16,100 jobs, and $3.7 billion in local economic output.

A CASE FOR FUNDING - ST. LAWRENCE RIVER ICE-BREAKING:

The local navigation channels of the St. Lawrence River require ice-breaking to maintain open and safe navigation channels in this important sea way. While dredging is not as major an issue as for the Fraser River, cold winter temperatures create a different kind of obstacle for those using the river and its channels. Unlike the Fraser River's, these local navigation channels continue to receive funding for ice-breaking services in order to keep those channels open and safe for navigation. In fact out of a national annual budget of $6.9million, 80% or $5.5million are designated for the St Lawrence. It is important that the significant economic, social and cultural benefit of the lower Fraser River is recognized similarly to that of the St. Lawrence and that it is receives the same level offederal commitment, to ensure all reaches of the river are accessible throughout the year.

CONCLUSION:

The almost complete cessation of the local navigation channel dredging program in the lower Fraser River has implications for the safety and accessibility of marine traffic, fish boats and float homes. This impacts the economic, social and cultural viability of the Fraser River delta water corridor. It is important that long term funding be provided to Port Metro Vancouver to ensure that local navigation channels along the Fraser River are deep enough for navigation purposes, and for ongoing commercial operation of the river port. We are asking the Select Standing Committee on Finance and Government Services to allocate funding for local navigation channel dredging in the lower Fraser River. This program would involve a onetime expenditure of $5 million dollars to bring the channels back to a similar condition of 15 years ago and an ongoing annual maintenance dredging allotment of $500,000.

Attachment: Map of Lower Fraser River


[ PORT METRO VANCOUVER: LOCAL CHANNEl DREDGING CONTRIBUTION PROGRAM]

Navigation Channels Port Metro Vancouver

Legend:

--~ Deep-sea Shipping Channel

Domestic NaYigation Channels

local Navigation Channels

Channel/Reach Names

r4~~;;"~

a "U. Yel

,~

N_

a ~ e

Sl:

Nnc" er

- _ e-

Strait of

Georgia

StJl(.!!t'on B.1IlA '0:n[4 p~ ffc":::

POINT .A!1ll

, ,

C; .. ,.VI(IoQOD

" N~' ... ~ i<'~' " " ".~ ftOAO I ~~ .. ../ S"T. ':;,..":'~ I

wooow_ ~ ·~ I / " r~

Ste'leslon ~ I . 'Ct

8e",0

~ S~1!:YO:~

r

r<"" -'~ ~' f g.y ...t:.:.,...;;. D'M r .. ~~Nl;:l \...-.l "'-- c>,.... .- :.r--7I;;:=-' ~ S~OUCH . r:" ." ~. 4 ..:,~~

.~"

u a

......... D .. _

I';"" .... -.et RoberTS SimI.

~""" e_K

t:= r4

Soul/dOl) B~7)

e

-.-~

........ CVlI.U:

C_-Jt. s Gt:,~ ril

,,~

c~ ancou',e Canada - ,---iun __ - ..

Bamston' Island Fe",

[4I~=~

p

e y "" e

~ R

.... ul :gle

l

~~~~~~ G

CORPORATION OF DELTA

MULTIPLE ACCOUNTS EVALUATION (MAE):

Dredging Ladner Harbour & Related River Channels

ATIACHM ENT '8' Page 1 of 33

strategic

transportation

& toullsm

solutiolls

ATIACHMENT 'B' Page 2 of 33

Multiple Accounts Evaluation: Dredging Ladner Harbour & Related River Channels

Table of Contents

1. Introduction ........................................................................................................................ 1 1,1 Background" .. ",,""'" """,,",,"""""""""" ""'"'',,'''''',,'''''''''''''''''''''''''',,''''''''''''''' ''''''',' ",1

2. The Issue ............................................................................................................................ 3 2,1 Current Situation """"'",,''''''''''''' """""""",,"",""""" '" "'" "'" "" '" "''',,'''''' '" """""""",,4 2,2 Study Objectives, """""",,,,"""""""" """"""''',,'',,'''''''''' """"'" '" """,,"""""""'" "",," 1 0

3. Future Case Scenario ...................................................................................................... 11 3,1 Causeways and Ladner Harbour """""",,'" """ " " " " " """ " " " " " " "" " " " " "" "'"'''''''''' "" 11 3,2 Current Economic Impact """"""""""""""""'"'',,''''''''''''''''''''''''''''''','''''''''''''''''''''',,'' 14 3,3 Potential Economic Impact of Developments"""""""""""""""""""""""""""""""""" 15 3.4 Environmental Impacts '"'''''''''''''''''''''''''''''''''',,'''''''''''''',,'''''''''''''''''',,'''''''',,'''''''''''"",16 3,5 Dredging Plans """""'"''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''"""""""" 16

4. Multiple Accounts Evaluation ......................................................................................... 18 4,1 Multiple Accounts Evaluation Methodology""""""""""""""""""",,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 18 4,2 Multiple Accounts Evaluation Matrix ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,18

5. Review ........................................ , ..................................................................................... 22

Appendix A: Economic Impact Analysis ..................................................................................... 24 A.1 What is Economic Impact? """""""""""'''''''''',,'''''''',,''''''''''''''''''''''',,'''''''',,''''''''''''",,24 A,2 Surveying Direct Employment.""""""""""""""""""""""""""""""""""""""""""""" 24 A.3 Economic Multipliers """""'"'' "" """""""'" """'''''''''' ""'" """"" ""'" ",,' """"""""""",,25 A.4 Gross Domestic Product and Economic Output Impacts """,,""""""'",,'''''''''''''',,''''''''' 26 A.5 Government Revenue Impacts "",,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,26 A,6 Current Economic Impact of Ladner Harbour ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,26

27 July 2012 Confidential InterVlSTAS

Multiple Accounls Evalualion: Dredging Ladner Harbour & Related River Channels

1. Introduction ATIACHMENT 'B'

Page 3 of 33

Located in Delta, British Columbia, Ladner Harbour .- - - - - - - - - - - - - - - I

and the surrounding local river channels provide a • Ladner Harbour and the surrounding a variety of maritime services to commercial and • river channels playa key role in U

pleasure craft in the region. Environmentally, these • shaping the environmental, economic ~ waterways playa critical role in sustaining terrestrial : and social fabric of the region . u and aquatic biodiversity. Economically, the waterways ________ _____ __ ~ allow for the movement of large and small vessels as a means for trade, commercial fishing, aquaculture and other uses. Socially, the waterways provide a distinct recreational offering for Delta residents and visitors.

Over the past 20 years, significant sedimentation has occurred in the local waterways, which has raised navigational and environmental considerations and concerns, among others. This report provides a multiple accounts evaluation (MAE) assessment for dredging Ladner Harbour and the related river channels.

1.1 Background The Fraser River is the largest river in British Columbia, extending 1,400 km across the Province. As it flows through the province it carries almost 20 million tonnes of sediment annually to the Fraser delta.

Ladner Harbour is owned by Fisheries and Oceans Canada (DFO) and managed by the Ladner Harbour Authority. Of the 1,170 small craft harbours owned by the DFO, 750 are considered to be core harbours and critical to the local and regional fishing and aquaculture industries - Ladner Harbour is one of these core harbours. (DFO's Small Craft Harbours program is responsible for ensuring harbours remain open and in good repair, generally for fisheries. 1)

The Federal government has responsibility for ensuring the navigability of waterways. The land below rivers and lakes is owned by the Province which leases water lots to Port Metro Vancouver which in turn leases them to private users. While the Corporation of Delta has an interest in the state of the Harbour and surrounding channels, the municipality has no jurisdiction in this area.

Delta is located 20 kilometres south of Vancouver and .- - - - - - - - - - - - - - - 1

is bordered by the South Arm of the Fraser River to I Ladner Harbour has been identified by I the north, the United States border to the south, I the DFO as one of the core harbours ~ Tsawwassen First Nation and the Salish Sea to the • in Canada critical to the fishing and • west, and Surrey to the east. Delta is located on the : aquaculture industries. u floodplain of the Fraser River; much of it lies between _______________ J

1 Select Standing Committee on Finance and Government Services, "Funding for Local Channel Dredging in the Lower Fraser River," September 16, 2010.

27 July 2012 Confidential InrerW'SlitS



0-2 metres above mean sea level and is protected by over 60 kilometres of dykes, Almost half of Delta is farmland, much of which is included in the Agricultural Land Reserve (ALR) - a provincial zone to protect land for agricultural activities,2

The Musqueam First Nation has a reserve in Delta, The municipality is home to approximately 100,000 residents,

2 The Collaborative for Advanced Landscape Planning at USC, "Technical Report on Local Climate Change Visioning for Delta: Findings and Recommendations," February 22, 2010,

2

27 July 2012 Confidential Inter"WSTAS

I


Multiple Accounts Evaluation: Dredging Ladner Harbour & Related River Channels 3

2. The Issue

Historically, the Canadian Coast Guard funded by the Federal Government was responsible for dredging the Fraser River. In 1998, funding ceased and responsibility for dredging the deep-sea shipping channels was taken over by what is now Port Metro Vancouver. Transport Canada constructed engineered structures at key locations along the Fraser River to divert most of the flow into the main channel to manage sedimentation. While this was successful in reducing the need for dredging the main channel , it advertently reduced flows along the local waterways by as much as 70%, resulting in an increase in sedimentation in these areas.3

Since the end of the federally funded dredging program, there has been a significant amount of sediment accumulation in local waterways. This is estimated to be approximately 1.2 million cubic meters of sediment deposits - enough soil to fill five Olympic-sized pools. Sedimentation is expected to continue to accelerate, partly as a result of deforestation and soil erosion caused by the mountain pine beetle up-river in interior BC.

The potential impacts of continued inaction on dredging the Ladner Harbour and surrounding river channels includes:

-- -------------1 : Since the end of the Federal dredging I I program, there has been significant : I sediment accumulation in the local I waterways - approximately 1.2 million I cubic metres of deposits. I L ______________ _

• Increased Flood Risks. The accumulation of sedimentation contributes to rising river bottom levels and increases the risk of fioods - particularly during the high spring freshet.

• Climate Change Vulnerability. The Fraser delta is particularly vulnerable to sea-level rise due to climate change. The community is also exposed to the combined impact of winter storms and tidal surges which results in higher than normal water levels in the local channels.

• Lost Economic Impacts. Urban business, commercial and industrial activity along the Fraser River account for 80% of Provincial economic activity as measured by gross domestic product (GDP) and 10% of National GDP.4

• Impacts on BC Fisheries. Ladner Harbour has been identified by DFO as being critical to the local and regional fishing and aquaculture industries. Potential economic impact of not properly dredging the Harbour could include relocation of related industries, impact on local marinas, fisheries and float home communities, and loss of property taxes.

• Reduced Recreational Opportunities. The harbour is increasingly unsuitable for recreational marine opportunities as a result of sedimentation.

3 Select Standing Committee on Finance and Government Services.

,...-------_ ..... _----Potential impacts of the sediment accumulation include: • Increased flood risks; • Climate change vulnerability; • Local economic impacts; • Impacts on BC Fisheries; • Reduced recreational

opportunities; and • Reduced property values.

4 BC Emergency Management Flood Protection Grant Application, "A Sustainable Sediment Management Program for Ladner Harbour," 2010.

27 July 2012 Confidential InterVlSlitS

ATIACHMENT '8' Page 6 of 33


• Reduced Property Values. Land and building owners along the harbour and its approaches may suffer from reduced land values as harbour sedimentation increases.

2.1 Current Situation Ladner Harbour and the surrounding river channels are generally used by small and large vessel owners for commercial and recreational purposes. Cessation of dredging activity in the area has decreased the safety and accessibility of the harbour and channels via marine transportation. Specifically, as a result of sedimentation, waterways which used to have over six metres of water at low tide now have less than a metre.5 This increase in silt deposits has made navigating the channels dangerous, and has resulted in float homes, docks, boats and vessels being frequently lifted out of the water at low tide.

Small lot water owners with floating homes and vessels tied to docks experience running aground at low tide, causing damage to their structures. In some cases, substantial private expenditures have been incurred to keep structures and vessels out of accumulated sediment. The following images depict the current situation where silting has affected float homes and water vessels.

5 BC Emergency Management Flood Protection Fund.

27 July 2012 Confidential

r--------------I I The cessation of dredging activity and I I subsequent build-up of sedimentation I

: has resulted in float homes and : I marine vessels being run aground - I I compromising safety for users and I I residents of the Ladner Harbour and I

I surrounding river channels. 11. ..... _----- """' ------""

InterVISTAS


Figure 2·1: Float Homes Run Aground

Source: Corporation of Delta.


One of the float homes along River Road West run aground. This image shows the foundation of the home completely resting on the bank of the river. As well, this image shows one small pleasure craft moored on the dock versus being moored to the dock.

5

27 July 2012 Confidential InterVISTAS


Figure 2·2: Float Homes Run Aground



A float home along River Road West run aground. The wood pilings mark the water level at high tide and illustrates that the depth of the river bed is approximately eight feet below the high water mark.

6

27 July 2012 Confidential InterflS1J4S

I

Mulliple Accounls Evaluation: Dredging Ladner Harbour & Related River Channels

Fi ure 2·3: Vessels Run A round



Commercial fishing vessel "Dan Mary" run aground. This image shows the vessel's distance from the pier because the water is not deep enough to draw closer.

7


I




The dock itself rests on the harbour bottom in this figure, along with the vessels tied to it. This has caused damages to boats and floathomes, resulting in significant costs to repair.

8

27 July 2012 Confidential InterVlSDlS


Figure 2·5: Vessels Run Aground



The entire estuary shown in this figure appears to be above water level, leaving the dock and vessel grounded. Prolonged exposure of river habitat to open air can have an environmental impact to native species in estuary.

9

27 July 2012 Confiden/ial Interlt7STAS


Figure 2-6: Vessel Run Aground



The image above shows a sailing vessel run aground after being anchored to the side of the water way during low tide.

2.2 Study Objectives

10

The purpose of this Multiple Accounts Evaluation (MAE) is to help assess the need for dredging Ladner Harbour and the surrounding river channels, along with the development of a Future Case Scenario. The MAE provides a cost-benefit analysis of the proposed dredging program for Ladner Harbour and its community, which takes into consideration the social , environmental and economic impacts of the program. Meanwhile, the Future Case Scenario provides an overview of the impacts of dredging for the local community of Delta and Ladner.

27 July 2012 Confidential InterVlSDf.S

Multiple Accounls Evalualion: Dredging Ladner Harbour & Relaled River Channels

3. Future Case Scenario


11

Implementing a sustainable dredging program will allow commercial and recreational vessels to safely pass through the river channels and use Ladner Harbour. It will also allow for safe moorage of boats and prevents fioat homes from running aground, Additionally, it will have positive economic and social impact to the community,

3.1 Causeways and Ladner Harbour The Fraser River stretches from the Rocky Mountains r - - - - - - - - - - - - - - I

to the Pacific Ocean, passing through Ladner Harbour I The current boat basin consists of I and its water channels, The river stream loses energy I three floats with capacity to I as it passes through Delta, depositing sand, silt and : accommodate 80 commercial fishing clay onto the riverbed, The annual river load is I vessels, If properly dredged, there is u transported primarily during the spring and summer I an opportunity to redevelop the Ladner u freshet. The water composition is estimated to be 65% I Harbour to maximize the utility of this a silt and clay and 35% sand, Two main water I community asset. I causeways have altered the physical geography along ~ - - - - - - - - - - - - - - .. the coast of Roberts Bank, These are Deltaport and the causeway that crosses Roberts Bank to the BC Ferries main terminal. Expansion has led to increasing dredging channel depths to allow for the passage of larger vessels, Inadvertently, the construction and expansion of these water causeways has dramatically changed water channel depths and triggered tidal creek erosion,6

Ladner Harbour itself is a boat basin located at the end of McNeeley's Way, one kilometre west of Ladner Harbour Park, Maritime functions include boat moorage, docking of float homes, commercial fishing, and maintenance/repair services for water vessels, The boat basin and an undeveloped area is Provincial Crown Land leased to the Federal Government (DFO) which is subleased and managed by Delta,

The boat basin consists of three floats with capacity for 80 commercial fishing vessels, Facilities include a concrete dock with a loading crane, a net shed building with 16 lockers, and an open net repair compound'? Two distinct features of cultural value to the harbour are the Seven Seas Warehouse and the former site of the Brackman-Ker Building,

A location map of Ladner Harbour is shown in Figure 3·1 and Figure 3·2,

6 Natural Resources Canada, "Municipal Case Studies: Climate Change and the Planning Process."

7 "Ladner Harbour Aulhority Operations and Envi ronmental Managemenl Manual," 201 0,

27 July 2012 Confidential InterWSUiS


Figure 3·1: Location of Ladner Harbour Area

Source: Bing Maps 2012

Figure 3·2: Ladner Harbour Overview

./

LADN ER HARBOUR

ATIACH M ENT 'B' Page 14 of 33

12

Source: Ladner Harbour Authority: Operations and Environmental Management Manual 2010.

27 July 2012 Confidential InterWSTAS



13

In 2010, the Downtown Ladner Waterfront Redevelopment Advisory Committee was appointed by Delta Council to complete a waterfront redevelopment study. The work completed by the committee is an initial step to visioning the long term use and development of Ladner Harbour. Specifically, the Design Brief proposes a variety of planning principals for the redevelopment of the site, to make it a community asset complete with walkways for pedestrians and cyclists, public art and mixed-use developments.s Figure 3·3 depicts conceptual art from the Ladner Waterfront Redevelopment Design Brief.

Figure 3·3: Conceptual Sketch for Future Development of Ladner Harbour

Source: Ladner Harbour Watetfront Redevelopment Design Brief.

8 Ladner Waterfront Redevelopment Design Brief, March 2010.

27 July 2012 Confidential InterWSDlS


3.2 Current Economic Impact

ATTACHMENT 'B' Page 16 of 33

14

To understand the current and future economic impact of Ladner Harbour and the surrounding river channels, relevant businesses operating at Ladner Harbour were surveyed.

r------------ -- l The economic impact of the Ladner Harbour and surrounding river channels includes:

Over 20 relevant businesses and organizations were • 285 direct jobs, or about 235 surveyed , and 86% of the businesses and person years of employment; organisations contacted responded to the survey. • $8.3 million in wages;

• An estimated $14 million in GDP; Employment was "inferred" for firms that did not and respond to the survey by using a proven and accepted • Over $51 million in economic methodology. These businesses include, output. fisheries/seafood processing firms, marine .. ______________ .. parts/servicing firms, marina development firms, tug/tow/barge and shipbuilding/repair firms. Table 3·1 represent the ongoing total economic impact from Ladner Harbour. Full detail of the analysis can be found in Appendix A.

Table 3·1: Ongoing Annual Total Economic Impacts of Ladner Harbour, 2012

Employment Employment Wages GOP Economic Type of Impact Output (Jobs) (FTE) ($ Millions) ($ Millions)

($ Millions)

Direct 285 235 8.3 14.2 51.4

Indirect 212 175 6.7 15.9 22.6

Induced 149 123 4.5 9.1 22.2

Total Be Impacts 646 533 19.5 39.2 96.2

Source: InterVISTAS Consulting Inc.

On-going operations of relevant businesses directly related to the Ladner Harbour and surrounding river channels generate direct economic impacts:

• 285 direct jobs, or about 235 person years of employment; • $8.3 million in wages; • An estimated $14 million in GDP; and • Over $51 million in economic output.

The economic impact of the Ladner Harbour and surrounding river channels extends beyond the relevant businesses directly related to the harbour, as other sectors of the economy are dependent on these employers' businesses. These "multiplier" impacts are referred to as indirect impacts (generated by supplier industries to the harbour and related businesses) and induced impacts (generated from the stimulus to the provincial economy when direct and indirect employees spend


I i ..

AITACHMENT 'B' Page 17 of 33


their wages). British Columbia economic multipliers derived from the Statistics Canada input-output model were used to measure the indirect and induced economic impacts .s Applying these multipliers indicate that there are significant economic impacts to the provincial economy for investment in dredging activity. This includes total (direct, indirect and induced) economic impacts of:

• 533 person years of employment; • Almost $20 million in wages; • Nearly $40 million in GOP; and • Over $96 million in economic output.

In addition to employment and economic activity, Ladner Harbour and the surrounding river channels also generate significant tax revenues for all three levels of government. Specifically, this includes:

• Nearly $2.2 million in Federal tax revenues; • Over $990,000 in Provincial tax revenues; and • Approximately $744,000 in Municipal tax

revenues.

.,...-- ---- --- -----

I a

Ladner Harbour and the surrounding river channels also generate significant tax revenues for all three levels of government. This includes:

• Nearly $2.2 million in Federal tax I revenues; I • Over $990,000 in Provincial tax I revenues; and I • Approximately $744,000 in I Municipal tax revenues. L _____ __ _____ __ _

Nearly 50% of businesses indicated that they expect an improvement in business and employment if the harbour was properly dredged. Much of the existing and potential economic activity is at risk because of continued silting in the region.

3.3 Potential Economic Impact of Developments In addition to sustaining the current economic impact, dredging the Ladner Harbour and surrounding river channels would facilitate further developrnent of the Harbour and area. To understand the potential incremental economic impact of the river, a scenario was developed to consider the potential economic development that might occur in the region assuming future investment along the river assuming the channels are dredged. This scenario assumes up to $20 million capital investment in Ladner Harbour redevelopment, and along the channels. This scenario is based on municipal analysis and discussion wi th developers. Development in this scenario cou ld include food services, retail stores, and marine services. This development would generate direct impacts of up to:

• 90 FTEs; • $5.0 million in wages; • $9.0 million in GOP; and • $20.0 million in economic output.

9 The multipliers used for the analysis are based on Statistics Canada economic multipliers for British Columbia from the 2008 Interprovincial Input-Output model, the most recent available. These multipliers were updated with Consumer Price Indices to account for inflation.

27 July 2012 Confidential InterVISlitS

I ,


3.4 Environmental Impacts


16

There are environmental impacts to dredging and not dredging the lower Fraser River. Dredging can be perceived as an unnatural cause that will harm water and land habitats. However, strategic dredging for specific areas of the river channel or estuary can help restore water and land habitats. The Fraser River estuary is a rich wildlife habitat with over 300 species of bird, and 80 species of shellfish and fish.1o Most relevant to Ladner Harbour and its channels, the cessation of dredging activity increases the risk of two environmental concerns. The first environment concern relates to flood risk as a result of increased sedimentation and a rise in sea level due to climate change. The second contributes to further loss of Fraser sockeye salmon habitat.

Flood Risk

Delta is below sea level and relies on dykes, fiood boxes and pump stations to mitigate against flooding. Stoppage of dredging activity has increased the depth of the river bed. This consequently increases the risk of flooding around Ladner Harbour and surrounding channels from high spring freshet river flow.11 In 1948 Delta experienced a flooding event which Environment Canada estimated cost $20 million in 1948 dollars. A similar flood event today would cost $1.8 billion to the Fraser Valley. More recently, a strong storm surge in 2006 recorded about a metre rise in sea level and waves close to six metres above the mean sea level.12

Fish Habitat

The Strait of Georgia and the lower Fraser River are used by juvenile and adult sockeye salmon as key habitats and .migratory corridors to and from the North Pacific. Various levels of human activity including changes in population, land use, development and waste disposal have affected the natural physical water characteristics and habitat for salmon and other fish species. A study completed by the Cohen Commission into the decline of sockeye salmon in 2011 revealed that management of waterways such as dredging is successful in reducing the effects and risks of loss to the sockeye salmon habitat in the Fraser River from human activity. Dredging is one solution that could mitigate loss of natural habitat for fish species such as salmon.13

3.5 Dredging Plans To protect its community plans and economic activity, and to support its environment, Delta is seeking funding support to implement a dredging program to dredge some channels in the Ladner Harbour area. The municipality and stakeholders support a phased approach to dredge the river. The map describes all the areas around Ladner Harbour where dredging should occur, including Ladner Reach which runs

Recognizing the urgent need for a properly dredged harbour and waterways, the Corporation of Delta

I has identified the key areas to be I dredged and is seeking support from

the Provincial and Federal governments to launch a dredging program.

10 Municipal Case Studies: Climate Change and the Planning Process - Delta, Natural Resources Canada, 2007. 11 Fraser River Local Channel Dredging, The Corporation of Delta, September 2010. 12 Technical Report on Local Climate Change Visioning for Delta: Findings and Recommendations, February 2010. 13 Technical Report 12: Fraser River Sockeye Habitat Use in the Lower Fraser and Strait of Georgia, Cohen Commission, 2011

27 July 2012 Confidential InterVISVlS


ATIACHMENT'S' Page 19 of 33

17

roughly north-south on the east end of the map. The two priority areas are shown by the orange lines which begin at the end of the arrows on the map. The first area begins at the mouth of Sea Reach and extends all the way into Ladner Harbour. The second area extends into Deas Slough. The estimated cost of dredging all the channels is $8 million. Maintenance dredging would also be required, likely at 5-8 year intervals.

The bullets below highlight attributes of the channels after dredging:

• Safe navigation channels for fishing and commercial vessels, and recreational craft.

• Restore unimpeded access to waterfront businesses and residences.

• Retain existing business activity and stimulate new economic investment in Ladner waterfront commercial and residential areas.

• Maintain the heritage character of Ladner village and promote tourism related to activities in the commercial/waterfront core, and eco-tourism related to river-based and wildlife-viewing activities.

• Protect inter-tidal habitat for the benefit of fish and wildlife.

• Reduce vulnerabi lity to extreme weather and tidal events that may cause flooding .

Figure 3·4: Map of Planned Dredging

Source: Hay & Company Engineering.

27 July 2012 Confidential InterVIS1J4S



4. Multiple Accounts Evaluation

4.1 Multiple Accounts Evaluation Methodology Multiple Accounts Evaluation (MAE) and Social Cost Benefit Analysis are tools that can be used by the government to review the utility of major policy or program decisions.

Social Cost Benefit Analysis differs from financial analysis by including impacts on the environment, communities, users of services and others. Social cost benefit analysis converts travel time savings and other benefits (and costs) into dollar values, which are then

.---------------1 I Multiple Accounts Evaluation is a tool I II that can be used to assess the I I

I I I

environmental, economic and social impacts of dredging the Ladner Harbour and surrounding river channels versus the status quo of no action.

_______ _ _______ J

added to the financial analysis to result in a "net social benefit" computation to guide policy makers. Social Cost Benefit analysis, however, requires that all impacts be converted into dollars and cents and then aggregated into a single net benefit number, and many impacts (e.g., impacts on First Nations) cannot be 'monetized'.

For this reason, Social Cost Benefit Analysis often is replaced with MAE analysis. This technique lists, analyses and quantifies (where possible) all impacts, but without the need to convert every impact into dollars and cents. MAE is increasingly preferred by governments as a tool to guide decision makers as it provides more detailed information on the various impacts of the investment or policy. MAE provides a richer set of information on the impacts of proposed projects.

4.2 Multiple Accounts Evaluation Matrix The following matrix provides a Multiple Account Evaluation of the Status Quo - no dredging of Ladner Harbour and the potential impacts to the community if Ladner Harbour is dredged. The following accounts are assessed for each alternative:

tmpacts

• Project Capital Spending;

• Ongoing Economic Impact;

• Government Revenues;

• Environmental Impact;

• Social Impact;

• Transportation Impact;

• Political Impact;

• First Nations Impact; and

• Tourism Impact.

The overview of these accounts is provided in Figure 4·1.

27 July 2012 Confidential Interl'7STAS


Figure 4·1: Multiple Accounts Evaluation

Account

Capital Investments

Economic Impacts

27 July 2012

Scenario 1: Status Quo

$0

Current ongoing economic impacts from operations of relevant businesses at Ladner Harbour and the surrounding river channels directly generate approximately:

• 285 direct jobs; • 235 direct person years of employment; • $8.3 million in direct wages;

• $14 million in direct GOP; and • $51 million in economic output.

The majority of these jobs (almost 80%) are full-time permanent positions. A wide variety of job types are supported, from managerial & supervisory, to mechanic/technical trades and general labour.

The ongoing total economic impacts from operations generate approximately:

• 533 person years of employment, • Almost $20 million in wages, • Almost $40 million in GOP, and • Over $96 million in economic output.

Confidential

Scenario 2: Dredging of Ladner Harbour and channels

Cost estimates to dredge Oeas Slough, Ladner Reach Upstream, Ladner Reach East Arm, and East Ladner Harbour is yet to be finalized but is expected to be in the range of $8 million.

The capital investment will directly generate employment and work for people involved in the dredging program (e.g., engineers, trade profeSSionals, etc.).

After ongoing dredging of the harbour, a scenario was developed which assumes $20 million in incremental capital investment in Ladner Harbour, and along the channels. This scenario is based on municipal analysis and discussion with developers. Development in this scenario could include food services, retail stores, and marine services. This scenario would generate additional direct impacts of up to:

18

• 90 FTEs; • $5.0 million in wages; • $9.0 million in GOP; and

• $20.0 million in economic output.

Ladner Harbour is identified by the DFO as one of the 750 core harbours critical to the local and regional fishing and aquaculture industries. A properly dredged harbour and surrounding channels will ensure that these industries are not adversely affected. More importantly, dredging the harbour and channels would sustain ongoing economic impacts.

InterVISX4.S

:t> ,,=1 !l) :t>

OQ (") <1l I N$ .... rn o Z _-i w -w"<


Account

Government Revenues

Scenario 1: Status Quo

The accumulation of sediment has caused many float homes, water vessels and other property to be damaged - resulting in significant economic losses, along with property devaluation.

Float home residents spend approximately $5.3 million per year in the community.14

Owners of boats moored in the Ladner area spend approximately $10 million on boat maintenance and operations.15

The value of fish landed along the Ladner harbour waters is as high as $30 million annually.'6

Businesses at Ladner Harbour and the surrounding river channels generate a significant amount of tax revenues for all three levels of government. Specifically, this includes:

• Nearly $2.2 million in Federal tax revenues;

• Over $990,000 in Provincial tax revenues; and • Approximately $744,000 in Municipal tax revenues.

For the Federal government, this includes personal income tax, corporate income tax, along with EI and CPP contributions.

Provincial government tax revenues from the area include personal income tax, corporate income tax, along with WCB and


Funding for a dredging program will also enable commercial businesses along the river to maximize their potential by improving access to customers and services; encouraging other activities in the region. For example, a dredged harbour can facilitate additional water vessel traffic, which can enhance demand for marine vessel maintenance and parts - improving business for those providers.

19

This is validated by the economic impact study. 50% of respondents (representing seafood processing firms, marine parts/servicing and tug/tow businesses) indicated that they would expect an improvement in business activity and employment after five years of dredging. Based on the survey results, an estimated 8% increase in overall employment is projected.

Dredging Ladner Harbour and surrounding channels would sustain current tax revenues for all three levels of the government.

Additionally, the dredging program could generate additional tax revenues through increased commercial activity in the area. This includes potential revenues from property taxes from new real estate developments, as well as additional taxes from increased activity from current businesses around Ladner Harbour.

Increased business activity and traffic to the Harbour can also trigger timing and demand for the waterfront redevelopment to proceed; generating additional government revenues.

14 Based on a Ladner Sediment Group estimate and surveys. This equates to approximately $41 ,000 in spending per year per household.

15 Based on a Ladner Sediment Group estimate of $10,600 spent annually on approximately 940 moored vessels.

16 Based on data provided to the Ladner Sediment Group by companies and fishers landing and receiving fish at Ladner Harbour and related channels.

27 July 2012 Confidential InterVIS1I1S

J>

,,::j '" J> 00 n C1> I ",;;: ",,,,

o Z ...,~

w -wO<


Account Scenario 1: Scenario 2: Status Quo Dredging of Ladner Harbour and channels

Health Care payments.

For the Municipal government, the tax revenues come from property taxes contributed by the businesses in the area.

Details are provided in Appendix A.

Environmental The accumulation of silt on the riverbed decreases the water It is expected that native habitats typical of the Fraser River (i.e., Impacts depth along the river, changing the ebb and flow for water Sockeye Salmon) would be recovered when water depths are

habitats. The decreased flow of water has also buried habitat restored. A study completed by the Cohen Commission in 2011 under silt along the waterline that is normally underwater, reported that management regimes and protocols which include impacting the flora and fauna along the water line. dredging have reduced effects and risks of loss to sockeye

Increased sedimentation increases the risk to floods if spring salmon habitats of the Fraser River prior to 1990.1'

freshet overwhelms the river bank, washing away or burying In addition, the Fraser delta is particularly vulnerable to sea-level habitat under water. . rise due to climate change. Dredging the waterways increases

the depth of the river channels which in turn reduces the risk of flooding from high water levels.

Social Impacts A total of three float-home communities are located around The dredging program would remove the built-up silt from the Ladner, along with several private float homes along Canoe waterways and provide navigable channels for commercial and Pass and River Road West, combined for an estimated 100+ pleasure water vessels. float homes in total. This would improve safety and accessibility for community These owners and residents will continue to have their float residents as well as other users of the Harbour and surrounding homes and vessels run aground and incur significant damage river channels. and economic loss because of sedimentation. A sustainable dredging program for the Fraser River and Ladner This has a direct impact on quality of life for residents and other Harbour will not only allow for safe passage, but present an users of the Harbour and surrounding river channels. opportunity to redevelop Ladner Harbour into a community

destination with waterfront recreation, open space and retail offerings. This development would enhance quality of life for

17 Technical Report 12: Fraser River Sockeye Habitat Use in the Lower Fraser and Strait of Georgia, Cohen Commission, 2011.

27 July 2012 Confidential InterVlSli1S

~ -0):>

'" n ~ ::r: ",$ w'" s.~ w -w~


Account Scenario 1: Status Quo

Health and Safety The health and safety of residents and users of the Ladner Harbour and surrounding channels continues to be compromised as boats and marine vessels are run aground due to the built-up sedimentation. The sedimentation also restricts accessibility for coast guard access in emergencies - further increasing risk and safety issues for community residents and users of the harbour and channels.

Transportation Unsafe passage for commercial and personal water vessels Impacts along the Fraser River and Ladner Harbour. Specifically, this

includes continued risk of water vessels running aground. Emergency services will be increasingly restricted from responding to emergencies in Ladner Harbour

Political Impacts Continued pressure on the Corporation of Delta from community residents and other stakeholders to address this issue. The municipality has committed to helping with the dredging by approving up to $2 million to the program.

First Nations Impacts The Tsawwassen First Nation is located near Roberts Bank and the Musqueam First Nation has a reserve in Delta.

Tourism Impacts Constant risk of marine vessels running aground has limited tourism development opportunities for Ladner Harbour and the


21


community residents and its visitors.

As an example, the ongoing Steveston Waterfront development that combines commercial and residential uses along the waterfront has made it a popular destination for local residents and visitors, featured in Tourism Richmond's 2012 Visitor's Guide.

A properly dredged Ladner Harbour would enhance safety for community residents and users of the Harbour and surrounding channels by mitigating the risk of boats and marine vessels running aground due to the built-up sedimentation. Access to the harbour and community would also be improved for both residents and coast guards as required.

Safe navigable channels for commercial and personal water vessels.

The municipality supports dredging of the harbour.

Dredging activity is expected to draw strong support from local residents and other users of the Harbour and surrounding river channels because of t~e social and economic benefits associated with the project.

Letters of support for the dredging proposal have been received from the Tsawwassen First Nation.

Potential new attraction which would enhance the opportunity for tourism development in the community. Specifically, this could include activities such as sports fishing, recreational boating,

InterVlS1.f.l.S

l>

,,=1 '" l> ao n ro OJ: ",:?:: ."en o Z _-1 w -w~


Account Scenario 1: Status Quo

surrounding area. ------ . _- ----- --



and paddling, and other water sports .

InterVISlitS

22

~

.,,=1 OJ ~

OQ (')

'" I IVS (J'lrn

o Z ...,-i W ' W'"


Mulliple Accounls Evaluation: Dredging Ladner Harbour & Related River Channels 22

5. Review

The results of the MAE suggest that dredging the Ladner Harbour and surrounding river channels would result in positive environmental, economic and social conditions and impacts for the community.

r--------------I I The results of the Multiple Accounts I I Evaluation suggest that there is a I I strong business case for properly I

dredging the Ladner Harbour and surrounding river channels, which In summary:

27 July 2012

1. The Ladner Harbour and surrounding river channels provide a range of maritime services to commercial and pleasure craft in the region, and plays a key environmental, economic and social role for the community.

would result in positive environmental, economic and social impacts for the community.

----------------'

2. Since the end of the federally funded dredging program, significant sedimentation has occurred in the local waterways resulting in navigational and environmental concerns, among others.

3. Environmentally, these waterways playa critical role in sustaining terrestrial and aquatic biodiversity in the region - serving as native habitat for 300 species of birds and 80 types of fish and shellfish. Cessation of dredging can further contribute to the loss of Fraser sockeye habitat.

4. Sedimentation also increases flood risk for the communities located along these waterways. Particularly, flooding is a potential natural disaster risk that can cost the Fraser Valley an estimated $1.8 billion in damages.

5. Economically, the Ladner Harbour and surrounding river channels generate and sustain significant economic impact for the region, including:

a. 285 direct jobs equivalent to 235 person years of FTE employment;

b. $8.3 million in direct wages;

c. $14 million in direct GOP; and

d. $51 million in direct economic output.

6. In addition, economic activity in the region generates significant tax revenues for all levels of government includ ing:

a. Nearly $2.2 million in Federal tax revenues;

b. Over $990,000 in Provincial tax revenues; and

c. Approximately $744,000 in Municipal tax revenues.

7. Socially, Ladner Harbour and the surrounding river channels have a direct impact on the quality of life of users of the facility and community residents. The bu ild-up in sedimentation has resulted in float homes and vessels running-aground - raising navigational, accessibility and safety concerns for all users and residents in the region.

Confidential InterVlSTAS



23

Dredging the Ladner Harbour and surrounding river channels would restore the waterways and result in positive environmental, economic and social impacts for the region. Community residents, including the Tsawwassen First Nation have already expressed their desire and support for dredging the waterways.


I



Appendix A: Economic Impact Analysis

This section explains the methodology for estimating the current economic impact of Ladner Harbour.

A.1 What is Economic Impact?

24

Economic impact is a measure of the spending and employment associated with a sector of the economy, a specific project (such as the construction of a new facility) , or a change in government policy or regulation. Economic impact can be measured in various ways. Two of the most popular ways to assess economic impact are in terms of the dollar value of industrial output produced, or in terms of person years (full-time equivalents (FTEs)) of employment generated. Other measures are value-added (GDP) and value of capital used and/or created. All of these are used to express the gross level of activity or expenditure from a sector of the economy, a specific project or a change in policy or regulation. As such, they are not "net" measures that weigh benefits against costs; nevertheless, these measures can be useful in developing an appreciation of projects, investments and economic sectors.

The economic impact can be broken down into the following categories:

Direct employment is employment that can be directly attributable to the operations in an industry, firm, etc. In the case of the Ladner Harbour, all of the jobs involved in operating and servicing vessels moving through the harbour would be considered direct employment. The direct employment base includes employees of marina operators, tug operators and other related firms.

Indirect employment is employment at a supplier industry that is supported by expenditures by the harbour and related businesses. For the Ladner Harbour, it would include the portion of employment in supplier industries, which are dependent on sales to the Ladner Harbour businesses. For example, a repair company that provides repair services to the marina would be considered indirect employment.

Induced employment is employment generated from expenditures by individuals employed indirectly or directly. For example, if a marine mechanic decides to expand or re-model his/her home, this would result in additional (induced) employment hours in the general economy. The home renovation project would support hours of induced employment in the construction industry, the construction materials industry, etc.

Total employment is the sum of direct, indirect and induced effects. The multiplier (indirect and induced) economic impacts represent the maximum potential stimulus to the economy resulting from operations at the Ladner Harbour.

A.2 Surveying Direct Employment Employment attributable to on-going operations at the Ladner Harbour was measured by surveying over 20 relevant businesses and organizations located at the harbour and other businesses economically linked to the harbour and surrounding channels on the south arm of the Fraser River. In total, 86% of the businesses and organisations contacted responded to the survey, representing about 98% of total person years of employment covered by the survey.

27 July 2012 Confidential InterVlS1i1S

'I

I



Employment was "inferred" for firms that did not respond to the survey by using a proven and accepted methodology.18 This includes using other sources of employment information such as past employment surveys or using survey results for firms of similar types. A conservative approach was taken when using other surveyor employment information to infer for nonresponding firms.

25

There may be firms which were not surveyed simply because it was not known that they existed. We do not include an estimate of employment for such non-surveyed firms because there is no basis for an assessment. In any event, we expect most of these to be very small in terms of missed employment.

A.3 Economic Multipliers Indirect and induced effects are typically measured by the use of economic multipliers. Economic multipliers account for the inter-industry relationships within regions and describe how local economies are likely to respond to various changes. Multipliers are based on complex accounting and economic "input-output" analyses, which shows the distribution of the inputs purchased and the outputs sold for particular industries as provided by Statistics Canada.19 They come in a variety of forms and differ greatly in definition and application. Thus, analysts must exercise great care in choosing the appropriate set of multipliers to use. In addition, the use of multiplier analysis is limited by a number of factors, these being:

• the accuracy of the structure and parameters of the underlying model; • the level of unemployment in the economy;

• the assumption of constant returns to scale in production; • the assumption that the economy's structure is static over time; and

• the assumption that there are no displacement effects.

The multiplier impacts present the best estimate of potential indirect and induced impacts that can be achieved under a given set of economic conditions. They do not necessarily represent the maximum impact. In reality, these conditions may not all apply, and the multiplier impacts may be somewhat different. However, no information is available on the possible range of these impacts. That said, the multipliers used are based on the best model and data available. The multipliers represent the best estimate of the impacts, based on a well-tested and well-established model, developed and supported by the government. They represent the industry standard in estimating indirect and induced impacts. In general, the focus of our report is on the direct impacts which are the most accurate and verifiable figures. While multiplier impacts are useful and important, the user should be mindful of their limitations, and should focus on the magnitude of the impacts instead of the exact figures.

18 The methodology employed in this study to infer for non-respondents is also used by the federal government for estimating the national income and product accounts.

19 The multipliers used for the analysis are based on Statistics Canada economic multipliers for British Columbia from the 2008 Interprovincial Input-Output model, the most recent available. These multipliers were updated with Consumer Price Indices to account for inflation.


I

<,


ATIACHMENT 'B'

Page 30 of 33

A.4 Gross Domestic Product and Economic Output Impacts

26

In addition to employment, the economic impact can be measured in terms of the dollar impacts on the economy.

The two most common measures of economic contribution (in addition to employment) are gross domestic product (GOP) and economic output. Economic output roughly corresponds to the gross revenues of goods or services produced by an economic sector, while GOP measures only valueadded revenues. As such, GOP removes the revenues to suppliers of intermediate goods and services and only includes the revenues from value-added production . Alternatively, economic output adds all revenues at each stage of production together as a measure of total production in the economy. Economic output will always be greater than GOP (also termed value-added).

One approach to measuring economic output and GOP is to ask firms in a survey to provide information on their gross revenues and payments to suppliers. However, there are several problems with the approach. First, it is much too expensive. Second, the double counting problem makes this approach impractical.

An alternative is to infer economic output and GOP for an economic sector from employment data using economic multipliers. Statistics Canada produces economic multipliers both for Canada and all of the provinces and territories, and these are both more cost effective and more accurate than obtaining the data from surveys. This method, using Statistics Canada economic multipliers for British Columbia, is the approach adopted here.

A.5 Government Revenue Impacts Ladner Harbour and the surrounding river channels generate significant revenues for the federal , provincial and municipal governments.

Revenue contributions are based on taxes paid by businesses in the area and their employees. These include income and payroll taxes, social insurance contributions (such as employment insurance premiums) for all direct employment associated with business activity, along with the federal corporate income taxes paid businesses.

This study presents the government revenue contributions from businesses at Ladner Harbour and along the surrounding river channels. As with all such studies, a conceptual decision has to be made as to how broad a definition of economic activity should be used in measuring the impacts. For this study, a relatively narrow definition has been taken, for example, the following have not been included:

• Taxes associated with indirect or induced employment (i.e ., multiplier effects); and • Consumption taxes (GST and PST) paid by employees when they spend their income.

A.6 Current Economic Impact of Ladner Harbour Ladner Harbour and the surrounding channels on the south arm of the Fraser River generate and support significant economic impact for the region .

Relevant business operating at Ladner Harbour and the surrounding reg ion, including fisheries/seafood processing firms, marine parts and servicing firms, machinists, tug/tow/barge

27 July 2012 Confidential InterVISlitS



firms and shipbuilding or repair firms, were surveyed to assess the direct economic impact of the Harbour and surrounding channels. British Columbia economic multipliers derived from the Statistics Canada input-output model were used to estimate the indirect and induced economic impact.2o

27

On-going operations of relevant businesses at Ladner Harbour directly generate approximately 285 jobs, equivalent to 235 person years of employmenl,21 When multiplier impacts are included, up to a total of 646 jobs equivalent to 533 person years of employment province-wide are supported by activity at the Harbour and surrounding channels. The job types range from managerial & supervisory, to mechanic/technical trades and general labour.

In addition to generating employment, Ladner Harbour contributes to the economy of the Province of British Columbia by supporting economic production. The significance of the harbour in terms of the provincial economy is demonstrated by the direct economic impact of the harbour's employment on GOP and output, estimated at $14 million and $51 million respectively. Including indirect and induced impacts, the total impacts are approximately $39 million and $96 million, respectively. Table A-1 summarises the economic impacts of on-going operations of relevant businesses at Ladner Harbour.

Table A-1' On-Going Total Economic Impacts of Ladner Harbour in British Columbia 2012 ,

Employment Employment Wages GDP Economic Type of Impact (Jobs) (Person ($ Millions) ($ Millions) Output

Years) ($ Millions)

Direct 285 235 8.3 14.2 51.4

Indirect 212 175 6.7 15.9 22.6

Induced 149 123 4.5 9.1 22.2

Total BC Impacts 646 533 19.5 39.2 96.2

Source: InterVISTAS Consulting Inc.

In the survey conducted with relevant businesses at Ladner Harbour, nearly 50% of respondents also indicated that after five years of a regular dredged harbour, they would expect an improvement in business and employment, with an expected 8% increase in overall employment.

20 The multipliers used for the analysis are based on Statistics Canada economic multipliers for British Columbia from the 2008 Interprovincial Input-Output model, the most recent available. These multipliers were updated with Consumer Price Indices to account for inftation.

21 One person year or full time equivalent (FTE) of employment is equal to the number of hours that an individual would work on a full time basis for one year. In this study, we have calculated one full time equivalent year to equate to 1,832 hours. Full time equivalent years are useful because part time and seasonal workers do not account for one full time job. Person years are the same as full-time equivalents (FTEs).




28

In addition to this economic impact, it should be recognized that firms at Ladner Harbour and the surrounding area generate revenues for all three levels of government. A summary is provided in the figure below,

Table A·2: Annual Government Contributions of Ladner Harbour, 2012 SUM MARY OF TAX CONTRIBUTIONS OF DELTA HARBOUR 2011 (BC)

Federal Provincial Municipal All Gov'ts

Amount Amount Amount Amount rox ($'000,) rox ($'000,) rox /$'OOOs\ ($'000,)

• Personal Income Tax 657 Personal Income Tax 219 Property Taxes • • Corporate Income Tax 407 Corporate Income Tax 171 Paid by Firms 392 ~ 0 EI - Employer 197 WeB 420 Property Taxes 0. E E! - Employee 141 Health Care 181 Paid by Float w cpp - Employer 39B Homes & Waterlots 1 352 5 cpp- Employee 39B • • ~ £! ~

E w ~ ~

" • .. Total 2198 Total 991 Total 744 3,932

Grand Total 2198 Grand Total 991 Grand Total 744 3,932 1 ~.tim~t6 of ro erty taxes Id b !o.t hom •• ond watenots is fur2012 p p pa y

Source: InterVISTAS Consulting Inc,

27 July 2012 Confidential InterVlSDlS

Prepared by InterVISTAS Consulting Inc,

Airport Square - Suite 550 1200 West 73rd Avenue

Vancouver, BC Canada V6P 6G5

Telephone: 604-717-1800 Facsimile: 604-717-1818

www.intervistas.com


page 2 of 4 ladner channel dredging july ... - document center

Documents