BOARD CORPORATE ALLOCATION POLICY

Transcription

1 BOARD CORPORATE ALLOCATION POLICY 1

2 2018 CENTRALIZED SUPPORT BOARD POLICY Approved July 2017 Updated previously based on 2010 operating costs Adjusted annually Methodology for allocation to MV entities Equitable, consistent and transparent Based on prior year s operating costs Allocation based on level of support provided Number of staff Business activity 2018 first year of implementation 2

3 2018 CENTRALIZED SUPPORT EXPENDITURE OVERVIEW ($ millions) % Change Corporate Services $46.2 $43.5 (5.9%) External Relations $5.7 $ % Financial Services $11.6 $ % Human Resources $4.7 $ % Legal and Legislative Services $4.0 $ % Total Expenditures $72.2 $70.5 (2.3%) 3

4 2018 CENTRALIZED SUPPORT- ALLOCATION % Change 2019 % Change 2020 % Change 2021 % Change 2022 % Change REVENUES Allocated to Functions $ 54.8 $ % $ 58.9 (1.5%) $ % $ % $ % External Revenues Reserves Applied $ 72.2 $ 70.5 (2.3%) $ 66.5 (5.7%) $ % $ % $ % EXPENDITURES Corporate Services $ 46.2 $ 43.5 (5.9%) $ 39.2 (9.9%) $ % $ % $ 40.4 (0.1%) External Relations % % % % % Financial Services % % % % % Human Resources % % % % 5.2 (0.3%) Legal and Legislative % 4.2 (0.4%) % % % $ 72.2 $ 70.5 (2.3%) $ 66.5 (5.7%) $ % $ % $ % 4

5 2018 CENTRALIZED SUPPORT 2018 Allocation Reduced application of reserve funding Reserve funding planned over five years Planned debt servicing in 2018 Expect stable financial plan

6 2018 Annual Budget and Financial Plan WATER SERVICES Tim Jervis GENERAL MANAGER, WATER SERVICES Utilities Committee Meeting October 12, 2017 Orbit No

7 WATER SERVICES FUNCTION OVERVIEW The total GVWD Budget for 2018 is $271.3 M. The Water Services Budget has been developed to: Provide clean, safe drinking water to approximately 2.5 million residents Service the complete financial needs for 3 protected watersheds, 5 dams, 2 water treatment plants, over 520 km of water mains, 19 pump stations and 26 storage reservoirs Six operational functions support Water Services: Policy, Planning and Analysis Engineering and Construction Major Projects, Management Systems and Utility Services Watershed and Environmental Management Operations and Maintenance Interagency Projects and Quality Control Treat and distribute an average of 1.0 billion liters of water per day 2

8 2018 WATER SERVICES BUDGET OVERVIEW Revenues $ millions % Change Expenditures $ millions % Change Water Sales $261.7 $ % Other External Revenues $1.2 $1.2 0 Reserves $2.1 $0.3 (85.7%) Operating $107.5 $ % Capital $157.6 $ % Total Revenues $265.1 $ % Total Expenditures $265.1 $ % 3

9 2018 WATER EXPENDITURES Operations 41% Contribution to Capital 25% $ millions $ Change % Change Operations $107.5 $111.8 $ % Debt Service $97.0 $91.0 ($6.0) (6.2%) Debt Service 34% Water rate will increase by 3.9%. Contribution to Capital Total Expenditures $60.6 $68.5 $ % $265.1 $271.3 $ % 4

10 2018 WATER BUDGET OPERATIONS Allocation of Centralized Costs, $ 25.1 M Communications Program, $ 0.4 M Policy, Planning and Analysis, $ 2.6 M Engineering and Construction, $ 10.2 M Major Projects, Management Systems and Utility Services, $ 4.0 M Water Operations by business area 2018 Total = $111.8 M Administration and Department Support, $ 2.0 M Watershed and Environmental Management, $ 12.1 M Interagency Projects and Quality Control, $ 4.5 M Operations and Maintenance, $ 50.9 M 5

11 2018 WATER EXPENDITURE HIGHLIGHTS Budget Highlights/Key Actions Include: Implement the new Drinking Water Conservation Plan Secure additional water allocation for the Coquitlam source Commence the development of an updated Drinking Water Management Plan Complete a regional assessment of residential water metering and recommended strategy for Board consideration Complete the development of an Environmental Management System for Water Services Complete erosion control works on Sisters Creek in the Capilano Watershed Commission the new sodium hypochlorite system at the Coquitlam Water Treatment Plant Optimize operations at the Capilano Raw Water Pump Station and Energy Recovery Facility Proposed Staffing Changes: One new staff to support water planning initiatives related to the Joint Water Use Plan and enhanced Demand by Sector reporting One new staff to provide increased coverage in the Utility Systems Control Room (Water and Liquid Waste) 6

12 2018 WATER CAPITAL PROGRAM 2018 Major Capital Projects Upgrade $29.6 M Opportunity $0.3 M Second Narrows Water Supply Tunnel Construction ($10.0 M) Clayton Reservoir Construction ($10.0 M) Fleetwood Reservoir Construction ($12.0 M) South Delta Main No B Ave Construction ($7.0 M) Maintenance $51.0 M Growth $69.1 M Douglas Road Main No. 2 Van Hts Section Construction ($6.5 M) Jericho Reservoir Construction ($10.5 M) Annacis Water Supply Tunnel Detailed Design ($8.0 M) Resilience $56.1 M 2018 Capital Budget is $206.1 M Development of additional capacity to meet population growth Increase system resiliency Replacement of aging infrastructure Upgrade to improve operating efficiency 7

13 WHAT S HAPPENING SUMMARY Five Year Financial Plan Highlights: Complete Coquitlam Intake No. 2 project definition and commence preliminary design Commence construction of Coquitlam Main No. 4 Commence construction of Annacis Water Supply Tunnel Commence construction of Second Narrows Water Supply Tunnel Implement backup power at major pump stations Complete replacement of Central Park Main and Douglas Road Main Commence construction of Capilano Main No. 5 (Stanley Park Section) Implement watershed bridge replacement program Implement final phase of treated water ph and alkalinity adjustments 8

14 2018 to 2022 WATER FINANCIAL SUMMARY Revenues: $ 265,082,925 $ 271,289,755 $ 288,432,174 $ 313,579,787 $ 338,925,139 $ 367,814,397 Expenditures: Operating Programs $ 107,519,896 $ 111,801,119 $ 112,227,711 $ 115,103,776 $ 117,124,392 $ 118,700,047 Debt Service 97,039,886 90,996,416 76,836,445 90,074, ,874, ,962,467 Contribution to Capital 60,523,143 68,492,220 99,368, ,401, ,925, ,151,883 Total Operating Expenditures $ 265,082,925 $ 271,289,755 $ 288,432,174 $ 313,579,787 $ 338,925,139 $ 367,814,397 Capital Expenditures $ 163,100,000 $ 206,090,000 $ 320,755,000 $ 374,875,000 $ 422,475,000 $ 422,450,000 Water Rate (Blended) $ $ $ $ $ $ Total GVWD Household Impact $ 162 $ 165 $ 170 $ 184 $ 196 $ 209 9

15 Questions?

16 Liquid Waste Services 2018 Budget Peter Navratil GENERAL MANAGER, LWS Utilities Committee Meeting October 12,

17 LIQUID WASTE FUNCTION OVERVIEW The total GVS&DD Budget for 2018 is $265.4 million. The Liquid Waste budget has been developed to: Service the complete financial needs for 530km of trunk sewers, 33 pump stations and 5 wastewater plants Five operational functions support Liquid Waste Services Policy & Planning Operations & Maintenance Project Delivery Environmental Management Management Systems Collect and treat an average of 1.2 billion liters of wastewater per day. 2

18 2018 LIQUID WASTE BUDGET OVERVIEW Revenues $ millions % Change Levy $213.9 $ % DCCs $6.8 $ % Reserves $4.3 $ % Fees $11.2 $ % Expenditures $ millions % Change Operating $153.5 $ % Capital $82.8 $ % Total Revenues $236.3 $ % Total Expenditures $236.3 $ % Total expenditures proposed to increase 12.3% with the GVS&DD Levy proposed to increase 8.5%. 3

19 2018 LIQUID WASTE REVENUES BOD/TSS Industrial Charges 3.8% DCC Reserves 4.9% Sustainability Fund Reserves 0.3% Reserves 3.0% Other External Revenues 0.1% Revenues increase by 12.3% GVS&DD Levy increases by 8.5% DCCs increase by 90% User Fees 1.0% Reserves increase by 72.5% Fees increase by 14.4% GVS&DD Levy 88% 4

20 2018 LIQUID WASTE EXPENDITURES Debt Service & Contribution to Capital $100.3M Allocation of Centralized Costs $22.1M Environmental Regulation & Enforcement $1.8M Communications Program $0.4M Administration & Department Support $2.1M Operations & Maintenance, $84.9M Environmental Management & Quality Control $11.7M Policy, Planning and Analysis $4.3M Project Delivery $8.1M Management Systems & Utility Services $29.7M Increased by 12.3% Capital costs account for 7.4% of this increase One-time operating costs account for 2.0% (paid from Reserves) Allocation of Centralized Costs accounts for 1.1% Rest of the Liquid Waste programs account for 1.8% 5

21 2018 LIQUID WASTE EXPENDITURES HIGHLIGHTS Budget Highlights/Key Actions Include: Biosolids stockpile management One time energy costs - Annacis Cogeneration project Combined sewer separation plans for Cambie-Heather and Canoe Creek Still Creek Brunette River Drainage Area - flood plain mapping Hydrodynamic model for Burrard Inlet Co-Digestion and Trucked Liquid Waste Program Review Commencing testing for contaminants of emerging concern Proposed Staffing Changes: 1.0 new staff to analyze contaminants of emerging concern 1.0 new staff to assess and analyze Source Control issues 1.0 new staff to operate the Solids Handling Facility at Iona Island WWTP 1.0 new staff to maintain the Northwest Langley WWTP 6

22 MAJOR CAPITAL PROJECTS North Shore WWTP ($700 M) Stage 5 expansion at Annacis Island WWTP ($600 M) Burnaby Lake Interceptor ($130 M) North West Langley Treatment Plant expansion Indicative Design for the Iona Island WWTP Secondary Upgrade Increase capacity of Cogeration system at Annacis Island WWTP Generate green Biomethane at Lulu Island WWTP for sale to FortisBC Address odour issues on the Highbury system in South Vancouver Capital expenditures average $530 million per year 7

23 OPERATING PROGRAM ACTIVITIES Clearing stockpiled biosolids at Iona and Northwest Langley WWTP Update the Integrated Liquid Waste and Resource Management Plan Asset Management Plan Review of Food Sector Grease Interceptor Bylaw Biosolids Drying Facility study Hydrothermal Liquefaction pilot Develop combined sewer separation plans for Metro Vancouver trunk sewers GVS&DD Household Impact is projected to increase an average of 8.3% per year. 8

24 LIQUID WASTE FINANCIAL SUMMARY ($ millions) Revenues $236.3 M $265.4 M $299.1 M $339.0 M $383.8 M $417.9 M Expenditures Operating Programs $153.5 M $165.1 M $166.7 M $173.8 M $181.4 M $181.9 M Debt Service $18.0 M $25.6 M $56.9 M $88.2 M $125.1 M $157.7 M Contribution to Capital $64.8 M $74.7 M $75.5 M $77.0 M $77.3 M $78.3 M Total Operating Expenditures $236.3 M $265.4 M $299.1 M $339.0 M $383.8 M $417.9 M Capital Expenditures $163.7 M $354.9 M $594.4 M $727.2 M $534.9 M $447.8 M TOTAL GVS&DD AVERAGE HOUSEHOLD IMPACT $188 $201 $218 $231 $250 $266 9

25 LIQUID WASTE HOUSEHOLD IMPACT Sewerage Area Vancouver Sewerage Area $210 $232 $246 $247 $258 $275 North Shore Sewerage Area $239 $255 $266 $320 $405 $475 Lulu Island Sewerage Area $212 $215 $226 $232 $252 $267 Fraser Sewerage Area $173 $184 $203 $219 $235 $243 REGIONAL AVERAGE $188 $201 $218 $231 $250 $266 10

26 Questions?

27 GVS&DD PROPOSED DCC RATES New Single Family Residences Sewerage Area Current Proposed % Change Vancouver Sewerage Area $944 $1, % North Shore Sewerage Area $1,291 $2, % Lulu Island Sewerage Area $1,077 $2, % Fraser Sewerage Area $1,731 $5, % 12

28 Capital Expenditure Summary UTILITIES COMMITTEE PRESENTATION Frank Huber DIRECTOR, MAJOR PROJECTS, MANAGEMENT SYSTEMS AND UTILITY SERVICES WATER SERVICES October 12, Mark Ferguson DIRECTOR, PROJECT DELIVERY LIQUID WASTE SERVICES

29 Port Mann Main No. 2 (North) 2

30 E2 Shaft Replacement Project 3

31 South Delta Main No. 1 Replacement 4

32 ,su. Braid Street Main 5

33 Annacis Water Supply Tunnel Proposed South Shaft Site 6

34 Clayton Reservoir 7

35 Sapperton Pump Station 8

36 Digester No.2 Roof Improvements IIWWTP Solids Handling Project 9

37 Annacis Island WWTP Stage 5 - Overview 10

38 blstlng 1350 FOA Duct Above Ground Burled bostmg 1350 FOA Duct Footprint of New P1 Channel and PSTs Tie-In location Annacis Island WWTP Stage 5 11

39 Annacis Island WWTP Stage 5 12

40 Annacis Island WWTP Stage 5 Primary Area 13

41 Thank you

42 Northwest Langley Wastewater Treatment Projects PROJECT DEFINITION PHASE UPDATE Paul Wilting PROGRAM MANAGER, PROJECT DELIVERY Utilities Committee October 12,

43 Northwest Langley Wastewater Treatment Projects Northwest Langley WWTP Outfall Pump Station Katzie Pump Station River Crossing Storage Tank N

44 Pump Station & Storage Tank 3

45 SSO Tank Pump Station Concept } 7 4

46 River Crossing 1550m NORTH TUNNEL EXIT Mininum Depth 24m Below River Maximum Depth 45.6m 5

47 Initial Plant Build 6

48 Ultimate Plant Buildout 7

49 Foreshore Enhancements Habitat island Bridge Walking Path 2041 INITIAL Off-channel salmon habitat Existing Liquid Treatment Golden Ears Way Off-street cycling path

50 Resource Recovery Opportunities Reclaimed water Bio-methane Electricity Heat Biosolids Phosphorous 9

51 Outfall Location Evaluation 10

52 Construction Schedule Pump Station & Storage Tank River Crossing Open Houses Project Update 2018 Treatment Plant Ground Improvements Treatment Plant Expansion Outfall Opportunities for Public Engagement (Ongoing) Open Houses Project Introduction 2017

53 Consultation & Communications Worked with Maple Ridge, Pitt Meadows, Township of Langley and Katzie First Nation to develop strategy Consult and communicate with impacted and interested groups through all project phases Municipalities, residents and businesses, First Nations, river users, ENGOs, permitting authorities Project Definition Phase: introduce projects and identify issues Open Houses: Maple Ridge Sep. 26; Langley Sep. 27

54 What we have heard Control Odours Treatment Plant Site Storage Tank Impact to River Health 13

55 Next Steps Continue Design Work Report to Award Tank Design Services Utilities Committee Workshop Report to Award Phase 1 Ground Improvements 14