METRO VANCOUVER REGIONAL DISTRICT WATER SERVICES · METRO VANCOUVER REGIONAL DISTRICT WATER...

METRO VANCOUVER REGIONAL DISTRICT

WATER SERVICES

REGULAR MEETING

Thursday, April 11, 2019 9:00 AM

28th Floor Committee Room, 4730 Kingsway, Burnaby, British Columbia

A G E N D A1 1. ADOPTION OF THE AGENDA

1.1 April 11, 2019 Regular Meeting Agenda That the Water Committee adopt the agenda for its regular meeting scheduled for April 11, 2019 as circulated.

2. ADOPTION OF THE MINUTES

2.1 March 14, 2019 Regular Meeting Minutes

That the Water Committee adopt the minutes of its regular meeting held March 14, 2019 as circulated.

3. DELEGATIONS 4. INVITED PRESENTATIONS 5. REPORTS FROM COMMITTEE OR STAFF

5.1 Water Supply Forecast and Water Consumption Update for Summer 2019

Designated Speakers: Inder Singh, Director, Policy Planning and Analysis, Water Services and Marilyn Towill, Director, Operations and Maintenance, Water Services That the GVWD Board receive for information the report dated April 4, 2019, titled “Water Supply Forecast and Water Consumption Update for Summer 2019”.

1 Note: Recommendation is shown under each item, where applicable. April 4, 2019

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Water Committee Regular Agenda April 11, 2019

Agenda of 3

5.2 Regional Assessment of Residential Water Metering Designated Speaker: Inder Singh, Director, Policy Planning and Analysis, Water Services That the GVWD Board receive for information the report dated March 22, 2019, titled, “Regional Assessment of Residential Water Metering”.

5.3 Status of GVWD Capital Expenditures to December 31, 2018 Designated Speaker: Goran Oljaca, Director, Engineering and Construction, Water Services That the GVWD Board receive for information the report dated April 4, 2019 titled “Status of GVWD Capital Expenditures to December 31, 2018”.

5.4 2018 GVWD Water Quality Annual Report Designated Speaker: Larry Chow, Program Manager, Quality Control, Water Services That the GVWD Board receive for information the report dated March 26, 2019 titled “2018 GVWD Water Quality Annual Report”.

5.5 Asset Management for Water Services Policy Designated Speakers: Mike Searle, Program Manager, Management Systems, Water Services and Frank Huber, Director, Major Projects, Management Systems, and Utility Services, Water Services That the Water Committee endorse the Asset Management for Water Services Policy as presented in the attached report dated March 13, 2019, titled “Asset Management for Water Services Policy”.

5.6 Award of Contract Resulting from Tender No. 18-414: Installation of Whalley Main Designated Speakers: Roy Moulder, Director, Purchasing and Risk Management, Financial Services and Goran Oljaca, Director, Engineering and Construction, Water Services That the GVWD Board: a) approve the award of a contract in the amount of $17,205,000 (exclusive of taxes)

to Graham Infrastructure LP resulting from Tender No. 18-414 for the Installation of Whalley Main; and

b) authorize the Commissioner and the Corporate Officer to execute the contract.

5.7 Manager’s Report Designated Speaker: Tim Jervis, General Manager, Water Services That the Water Committee receive for information the “Manager’s Report” dated March 22, 2019.

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Water Committee Regular Agenda April 11, 2019

Agenda of 3

6. INFORMATION ITEMS 7. OTHER BUSINESS 8. BUSINESS ARISING FROM DELEGATIONS 9. RESOLUTION TO CLOSE MEETING 10. ADJOURNMENT/CONCLUSION

That the Water Committee adjourn/conclude its regular meeting of April 11, 2019.

Membership: Brodie, Malcolm (C) - Richmond Elford, Doug (VC) - Surrey Asmundson, Brent - Coquitlam Belenkie, Neil - Belcarra Bell, Don - North Vancouver City

Bligh, Rebecca - Vancouver Dingwall, Bill - Pitt Meadows Duncan, Kiersten - Maple Ridge Froese, Jack - Langley Township Guichon, Alicia - Delta

Keithley, Joe - Burnaby McEwen, John - Anmore West, Brad - Port Coquitlam Williams, Bryce - Tsawwassen

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Minutes of the Regular Meeting of the MVRD Water Committee held on Thursday, March 14, 2019 Page 1 of 5

METRO VANCOUVER REGIONAL DISTRICT WATER COMMITTEE

Minutes of the Regular Meeting of the Metro Vancouver Regional District (MVRD) Water Committee held at 9:00 a.m. on Thursday, March 14, 2019 in the 28th Floor Committee Room, 4730 Kingsway, Burnaby, British Columbia.

MEMBERS PRESENT: Chair, Mayor Malcolm Brodie, Richmond Vice Chair, Councillor Doug Elford, Surrey Councillor Brent Asmundson, Coquitlam Mayor Neil Belenkie, Belcarra Councillor Kiersten Duncan, Maple Ridge Mayor Jack Froese, Langley Township (arrived at 9:02 a.m.) Councillor Alicia Guichon, Delta Councillor Joe Keithley, Burnaby Mayor John McEwen, Anmore Mayor Brad West, Port Coquitlam

MEMBERS ABSENT: Councillor Don Bell, North Vancouver City Councillor Rebecca Bligh, Vancouver Mayor Bill Dingwall, Pitt Meadows Chief Bryce Williams, Tsawwassen

STAFF PRESENT: Tim Jervis, General Manager, Water Services Carol Mason, Chief Administrative Officer Genevieve Lanz, Legislative Services Coordinator, Board and Information Services

1. ADOPTION OF THE AGENDA

1.1 March 14, 2019 Regular Meeting Agenda

It was MOVED and SECONDED That the Water Committee adopt the agenda for its regular meeting scheduled for March 14, 2019 as circulated.

CARRIED

2.1

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2. ADOPTION OF THE MINUTES

2.1 February 7, 2019 Regular Meeting Minutes It was MOVED and SECONDED That the Water Committee adopt the minutes of its regular meeting held February 7, 2019 as circulated.

CARRIED 3. DELEGATIONS 9:02 a.m. Mayor Froese arrived at the meeting.

3.1 James Peters, ShowerPot James Peters, ShowerPot, provided members with a presentation on water conservation, highlighting the use of the ShowerPot as a way to collect and reuse household water.

4. INVITED PRESENTATIONS 4.1 John Wou, Project Manager, Capital Infrastructure Project Delivery, BC Hydro

John Wou, Project Manager, Project Delivery, Brock Radloff, Project Engineer, Andrew Walter, Project Environmental Lead, and Brandon Wilson, Manager, Operations and Maintenance for Lower Mainland and Vancouver/Environmental Manager, Lower Mainland Generation, provided members with a presentation on the Coquitlam Tunnel Gates project, highlighting project scope, consultation and benefits, technical specifications, construction timeline, and next steps. Members discussed further consultation with affected municipalities, impact of Buntzen Lake water levels on public safety, and potential disruption of the generation of electrical power. In response to questions, members were informed of the Reservoir Archaeological Program and the potential recovery of shoreline artifacts by local First Nations groups. Request of Staff Staff was requested to provide members with a copy of the presentation. Presentation material titled “Coquitlam Tunnel Gates Project Update” is retained with the March 14, 2019 Water Committee agenda.

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5. REPORTS FROM COMMITTEE OR STAFF

5.1 GVWD Development Cost Charges Options Update Report dated February 19, 2019 from Phil Trotzuk, General Manager, Financial Services/Chief Financial Officer, providing the GVWD Board with information on current and past considerations of the development of a GVWD development cost charge for funding of regional growth infrastructure. It was MOVED and SECONDED That the GVWD Board receive for information the report dated February 19, 2019, titled “GVWD Development Cost Charges Options Update”.

CARRIED 5.2 Seymour Salmonid Society – 2018 Annual Report

Report dated February 19, 2019 from Mike Mayers, Division Manager, Watershed Operations and Protection, Water Services, providing the GVWD Board with the Seymour Salmonid Society’s 2018 annual report. It was MOVED and SECONDED That the GVWD Board receive for information the report dated February 19, 2019, titled “Seymour Salmonid Society – 2018 Annual Report”.

CARRIED

5.3 Award of Amendment to Construction Contract RFP No. 18-048, Second Narrows Water Supply Tunnel – Burrard Inlet Crossing Report dated March 1, 2019 from Roy Moulder, Director, Purchasing and Risk Management, Financial Services and Murray Gant, Division Manager, Major Projects, Water Services, advising the GVWD Board of the results of negotiations for the scope of work within Second Narrows Park originally contemplated in Request for Proposal (RFP) No. 18-048 and recommending award of an amendment to the contract in the amount of $19,899,602 (exclusive of taxes) to Traylor-Aecon General Partnership. Members were provided with a presentation on the Second Narrows Water Supply Tunnel, highlighting project purpose, seismic and environmental resiliency, increased capacity, tunnel profile specifications, and project timeline and construction schedule. Request of Staff Staff was requested to prepare information for the March 29, 2019 GVWD Board meeting regarding details as to what was previously included and removed from the approved project scope and incremental increase in cost for the amended construction contract. Presentation material titled “Second Narrows Water Supply Tunnel” is retained with the March 14, 2019 Water Committee agenda.

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It was MOVED and SECONDED That the GVWD Board: a) approve award of the amended scope within Second Narrows Park in an

amount of $19,899,602 (exclusive of taxes) to Traylor-Aecon General Partnership resulting from Request for Proposal No. 18-048, Second Narrows Water Supply Tunnel - Burrard Inlet Crossing, and

b) authorize the Commissioner and the Corporate Officer to execute the required documentation.

CARRIED

5.4 Manager’s Report Report dated February 19, 2019 from Tim Jervis, General Manager, Water Services, providing the Water Committee with an update on the 2019 Work Plan, highlighting an additional conference of interest to the Water Committee, Water Services facilities tour options, and the status of an Asset Management for Water Services policy. It was MOVED and SECONDED That the Water Committee receive for information the “Manager’s Report” dated February 19, 2019.

CARRIED

6. INFORMATION ITEMS No items presented.

7. OTHER BUSINESS

No items presented. 8. BUSINESS ARISING FROM DELEGATIONS

No items presented. 9. RESOLUTION TO CLOSE MEETING

It was MOVED and SECONDED That the Water Committee close its regular meeting scheduled for March 14, 2019 pursuant to the Community Charter provisions, Section 90 (1) (i) as follows: “90 (1) A part of the meeting may be closed to the public if the subject matter being

considered relates to or is one or more of the following: (i) the receipt of advice that is subject to solicitor-client privilege,

including communications necessary for that purpose.” CARRIED

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10. ADJOURNMENT/CONCLUSION It was MOVED and SECONDED That the Water Committee adjourn its regular meeting of March 14, 2019.

CARRIED (Time: 10:01 a.m.)

____________________________ ____________________________ Genevieve Lanz, Malcolm Brodie, Chair Legislative Services Coordinator 28905038 FINAL

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To: Water Committee From: Inder Singh, Director, Policy, Planning and Analysis, Water Services

Marilyn Towill, Director, Operations and Maintenance, Water Services

Date: April 4, 2019 Meeting Date: April 11, 2019 Subject: Water Supply Forecast and Water Consumption Update for Summer 2019 RECOMMENDATION That the GVWD Board receive for information the report dated April 4, 2019, titled “Water Supply Forecast and Water Consumption Update for Summer 2019”. PURPOSE To provide the Committee and Board with the annual update on the current water supply and water consumption situation in advance of the approaching summer peak demand period. BACKGROUND As per the Committee’s 2019 Work Plan, and those of previous years, water supply and water consumption status reports are brought forward to the Committee and Board each spring. These reports are developed based on the current source water supply situation and trends in water use and reflect current plans for operating the source lakes and water system this summer and fall. CURRENT SOURCE WATER SUPPLY SITUATION

Snowpack Snowpack measurements are routinely conducted at sample sites across the Capilano, Seymour and Coquitlam watersheds. The April 1, 2019 survey results indicate that the depth and water equivalent of the current snow pack is 69 percent and 76 percent of the historical average, respectively, for this time of year. These survey results indicate a slightly lower-than-average spring runoff from snowmelt. While snowpack is important, it should be noted that our region’s water supply is not solely dependent on snowpack. Overall precipitation in the form of rainfall contributes to the water levels in the three primary source reservoirs that serve Metro Vancouver. Stored Water - Source Lakes a) Capilano Lake

Capilano Lake is currently being managed under the spring operating protocol with the lake currently at 83 percent of full summer storage capacity. It is expected that the lake will be at 100 percent of full summer storage capacity by early June.

5.1

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Water Supply Forecast and Water Consumption Update for Summer 2019 Water Committee Regular Meeting Date: April 11, 2019

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b) Seymour Lake

Seymour Lake is currently being managed under the spring operating protocol with the lake currently at 87 percent of full summer storage capacity. It is expected that the lake will be at 100 percent of full summer storage capacity by early June.

c) Coquitlam Lake

Coquitlam Lake is controlled by B.C. Hydro within criteria established by agreement with the GVWD. It is anticipated that BC Hydro will have Coquitlam Lake sufficiently full to provide for adequate regional summer water supply and the necessary allocation for fisheries flows in the Coquitlam River.

d) Alpine Lakes

The GVWD's three alpine lakes, Palisade, Burwell and Loch Lomond, which are used as reserves for Capilano and Seymour Lakes during the late summer period, are all expected to be at 100 percent of capacity by early summer.

Trends in Water Consumption/Use This section discusses trends in water consumption/use, as well as some of the factors affecting water use. Figure 1 shows water use in the region in litres per capita per day for the years 1993 to 2018. This is total water use in the region inclusive of all water users.

Figure 1 – Peak Day and Average Day Per Capita Water Use in the Region

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The upper (red) line in Figure 1 is the peak day water use, or the highest day of water use for the year. The peak day usage occurs on a hot and dry summer day when many people in the region are watering their lawns. Peak day water use, and to a lesser extent average day water use, vary depending on summer weather conditions, being higher in years with hot, dry summers such as 2003 and 2009, and lower in years with cool and wet summers such as 2011 and 2016. Lawn watering regulations have long been used by the GVWD and local governments to reduce peak demands on the regional and municipal water systems, respectively. These restrictions help to: • Manage overall water use throughout the summer to conserve water storage in the source lakes; • Reduce peak water demands; and, • Reduce pumping and other operational costs and allow deferral of costly new water supply

infrastructure. Following the unprecedented hot and dry summer of 2015, the Board approved revisions to the former Water Shortage Response Plan (WSRP) in November 2015 and February 2016, that included an earlier start (May 15) and later end date (October 15) to the Stage 1 restrictions that are automatically implemented every summer. To further promote summer water conservation, in June 2017, the Board approved a new Drinking Water Conservation Plan (DWCP) that included implementation of Stage 1 restrictions on May 1 and reduced lawn watering opportunities, for residential and non-residential properties, from three mornings a week to two mornings a week. The DWCP also includes a provision to implement higher staged water use restrictions during periods of water shortages and emergencies, or under unusually high demand conditions. These higher stages can only be triggered under authority of the Commissioner of the Greater Vancouver Water District. In 2018, the Board endorsed a new complementary Region-wide Guide for Enforcement of Metro Vancouver’s Drinking Water Conservation Plan. The lower (black) line in Figure 1 is the average day per capita water use over the year. This represents the overall regional water use on a per capita basis, which has been on a gradual downward trend. In more recent years, there are indications that per capita reductions are stabilizing, emphasizing the need for continued emphasis on water conservation initiatives. During the winter, outdoor water use is minimal and overall water use is insensitive to weather conditions. Figure 2 shows winter per capita water use between January 1993 and December 2018. Winter per capita water use has been declining since 1993, due to water conservation actions by all levels of government, such as the requirements for water-efficient fixtures and low-flow toilets in new construction. For example, the regional Drinking Water Management Plan (DWMP), first approved in 2005, and updated in 2011, includes actions by Metro Vancouver and member local governments to conserve water. The DWMP is currently undergoing another review.

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Figure 2 – Winter Per Capita Water Use in the Region (inclusive of all users)

Figure 3 shows service population and total water use in billions of litres per day. Although per capita water use continues to decline, total water use is increasing as the effect of the rate of population growth on water demands begins to exceed the per capita water use reductions.

Figure 3 – Population Growth and Daily Water Use

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SYSTEM OPERATIONS OUTLOOK FOR SUMMER 2019 Source Lake Capacity Water usage patterns will be monitored and adjustments made to withdrawals from each of the three main sources, and within the transmission system, to meet the regional water demand through the summer and fall. Additional withdrawals from Coquitlam Lake have been secured from BC Hydro for 2019. The three alpine lakes will also be utilized within their refillable storage limits, as required. Meeting Peak Day Demands As the region continues to grow, meeting peak day demands requires additional infrastructure to convey water throughout the transmission system. Summer peak day and peak hour demands challenge the transmission system to meet service levels in parts of the region. The most significant peak day demand occurred in summer 2009. The demand conditions experienced during the hot summer weather in July 2009 stretched the ability of the regional transmission system to meet minimum target service levels, most notably in the southern and eastern parts of the region. These areas are both geographically furthest from the sources and are experiencing the fastest growth in population. It should be noted that peak day demands are not spread equally across the region, but tend to be higher where less residential density exists and lower where densification is occurring and there are fewer lawns and gardens. Clayton Reservoir, Barnston/Maple Ridge Pump Station, South Delta Main No. 1 Replacement (Phases 1 and 2), and the Port Mann Water Supply Tunnel have all contributed to additional transmission system capacity to meet summer peak demands in both the eastern and southern municipalities and will benefit the regional transmission system in summer 2019. ALTERNATIVES This is an information report; no alternatives are presented. FINANCIAL IMPLICATIONS During the hotter and drier summer months, the demand for water increases significantly over that in the winter, putting additional stress on the water supply system. Metro Vancouver’s wholesale peak summer water rate is 25 percent higher compared to the off-peak period. This seasonal pricing reflects the cost of building larger infrastructure and higher operating costs such as increased pumping to meet peak summer demands. SUMMARY / CONCLUSION Although the existing snowpack is at slightly lower-than-average levels, it is expected that source lake storage will be sufficient to ensure adequate water supply for the 2019 summer season. Overall precipitation in the form of rainfall also contributes to the water levels in the three source lakes. Overall precipitation in the form of rainfall also contributes to the water levels in the three source lakes. Although the region’s population continues to grow; historically, overall water demand has remained relatively steady, generally offset by conservation measures. However, overall water use is increasing gradually as the effect of the rate of population growth on water demands begins to exceed the per capita water use reductions.

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Summer 2019 will be the second summer implementing water restrictions under the new Drinking Water Conservation Plan. Stage 1 restrictions on outdoor watering, between May 1 and October 15, along with Metro Vancouver and member local government implementation of the Board endorsed Region-wide Guide for Enforcement of the DWCP, are expected to help manage water demands during the peak season. During periods of water shortages and emergencies, or when experiencing unusually high demand for water, Metro Vancouver has the ability to implement higher stages of the Drinking Water Conservation Plan, if necessary. Recent system improvements such as the Barnston/Maple Ridge Pump Station, the Port Mann Water Supply Tunnel, Clayton Reservoir, and South Delta Main No. 1 Replacement (Phases 1 and 2) have increased the capacity of the transmission system to meet peak summer demands. 28071143

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To: Water Committee From: Inder Singh, Director, Policy Planning and Analysis, Water Services Date: March 22, 2019 Meeting Date: April 11, 2019 Subject: Regional Assessment of Residential Water Metering RECOMMENDATION That the GVWD Board receive for information the report dated March 22, 2019, titled, “Regional Assessment of Residential Water Metering”. PURPOSE To provide an update on the work completed to date on the Regional Assessment of Residential Water Metering. BACKGROUND Metro Vancouver’s Board Strategic Plan includes an action to “continue to evaluate the impact of pricing, metering, and other tools to promote water conservation” and “re-evaluate the business case for regional [residential] water metering”. In addition, the Drinking Water Management Plan includes an action for local governments to “reassess the merits of developing residential water metering programs”. From 2017 to 2018, Metro Vancouver conducted a technical study to investigate the business case for residential water metering of single-family homes based on a triple-bottom-line (TBL) evaluation. In accordance with the Committee’s 2019 Work Plan, this report provides an update on the Regional Assessment of Residential Water Metering and includes the results of the technical study and input received to date from local government staff. Updates on the residential water metering project have been provided to local government staff on the following dates:

• September 8, 2017 presentation to the Regional Engineers Advisory Committee (REAC); • October 18, 2017 Local Government Workshop; • September 7, 2018 presentation to REAC; • September 12, 2018 presentation to the REAC Water Sub-Committee; • December 5, 2018 Local Government Workshop; • February 1, 2019 presentation to REAC; and • February 21, 2019 presentation to the Regional Administrative Advisory Committee (RAAC).

REGIONAL ASSESSMENT OF RESIDENTIAL WATER METERING The Regional Assessment of Residential Water Metering project involved the completion of a technical study which evaluated the overall costs and benefits of water metering for single-family homes. The technical study was completed by Urban Systems Ltd. with input from local government staff at various touchpoints throughout the project.

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Regional Assessment of Residential Water Metering Water Committee Regular Meeting Date: April 11, 2019

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A workshop was held with local government staff in May 2017 to confirm the study approach and methodology. At this workshop, attendees agreed to limit the scope of the technical study to water metering for single-family homes only. This was due to significant variability and complexity in multi-family building size, metering requirements, and associated meter costs. Furthermore, water savings associated with multi-family metering differ due to a lack of submetering of individual units as well as reduced outdoor water use. Where available, local government data was used in the TBL evaluation including meter installation costs, staffing and operational requirements. Several Metro Vancouver local governments with residential water metering programs were interviewed for development of local case studies. A project update on preliminary results and TBL findings was presented to local government staff at a second workshop in October 2017. Feedback from this workshop provided Metro Vancouver staff with direction on the development of tools and resources as support for local governments. A third workshop in December 2018 reviewed the study findings, draft tools and resources, and presented case studies from the City of Richmond and District of West Vancouver. Metro Vancouver meters and bills, at a wholesale rate, all water delivered to member jurisdictions in the region. Local governments then set rates and charge user fees to their customers to recover the cost of service delivery. The decision to meter residential and non-residential customers resides with each local government. Overall within the region, most local governments are close to achieving full metering of industrial, commercial, and industrial water users (collectively referred to as ICI users), however, only 53% of multi-family buildings and 28% of single-family homes are currently metered (Attachment 1). The extent of residential water metering varies greatly across the region with 14 out of 20 member jurisdictions currently having residential water metering programs (Attachment 2). Triple-Bottom-Line Evaluation The TBL evaluation assessed the impacts of water metering over a 50-year timeframe to capture multiple water meter lifecycles. Four metering scenarios described in Table 1 represent possible approaches to implementing water metering that were developed as part of the study and evaluated to determine the overall regional water use reductions and associated financial, environmental and social implications. Each metering scenario was evaluated against a Base Case scenario that represents no additional meters installed beyond 2017 levels. Water savings associated with the installation of water meters were estimated on a household level based on reported figures from case studies, local data, and examples from other regions. For each metering scenario, regional water savings were scaled from a household level to the regional level using water meter installation forecasts over a 50-year timeframe. Table 1 includes an estimated range in regional water savings due to potential variability associated with water meters.

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Table 1: Metering Scenarios Evaluated in the Regional Assessment of Residential Water Metering

Metering Scenario Description

Regional Outcomes by 2068 Percentage of single-family

homes metered

Estimated annual water

savings

Low Hanging Fruit

Represents a passive approach to gradually increase the level of single-family residential metering through low effort metering programs.

53% 8 - 11 BL

Targeted Approach

Builds on the Low Hanging Fruit scenario by adding metering programs that target heavy water users and allows for metering on a voluntary basis.

93% 19 - 24 BL

Concentrated Effort

Builds on the Targeted Approach scenario by adding metering for homes with secondary or laneway suites, after ownership transfer, and for existing meter-ready homes.

100% 19 - 24 BL

Full Commitment

Represents the highest level of effort and commitment to achieve universal metering. Assumes that all homes will be metered in 10 years (five years of planning and five years of implementation).

*100% 24 - 29 BL

* Full Commitment achieves 100% metering by 2028. Evaluation criteria were established through a process of reviewing case studies, best management practices and literature reviews, and were validated in consultation with local government staff. Financial impacts were determined based on all financially quantifiable criteria, including the costs associated with meter installation, meter operations and maintenance, staffing requirements, financially quantifiable environmental impacts such as greenhouse gas emissions, balanced by the deferral of Metro Vancouver growth-driven capital infrastructure spending and reduced system operating costs through water savings. Environmental and social impacts that could not be quantified financially were evaluated qualitatively on a per-meter basis, then scaled for each metering scenario based on meter installation estimates over a 50-year period. Table 2 presents the overall findings of the TBL evaluation, where financial implications are shown as net present value (NPV) over 50 years. These financial implications represent the incremental costs, or savings, relative to the Base Case scenario. Total Regional financial implications are intended to provide local governments with guidance on overall costs. Local Government/Metro Vancouver financial implications show the costs and benefits in the event that individual meter installation costs associated with specific metering programs are shifted to developers, home builders and homeowners. Qualitative scores were developed for the environmental and social considerations associated with each metering scenario. The numerical scores represent the amount of overall benefits achieved. All scenarios result in overall net qualitative benefits and in general, the more meters added within a

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given scenario, the greater the benefits. The Targeted Approach and Concentrated Effort scenarios result in slightly greater environmental and social benefits as compared with Full Commitment, in part due to the lower impact of meter installation. For instance, meters can be installed at the time a water main is being replaced to minimize disruption. Table 2: Triple-Bottom-Line Evaluation Findings

Metering Scenario

Net Qualitative Scores Financial Impacts (NPV) over 50 years

Environmental Social Total Financial Impacts1 Local Government Financial Impacts2

Low Hanging Fruit 2 1 $9M in costs $181M in benefits Targeted Approach 5 4 $240M in costs $48M in costs Concentrated Effort 5 4 $122M in costs $165M in benefits Full Commitment 4 3 $74M in benefits $204M in benefits

1 Total financial impacts represent the total overall costs and savings incurred by Metro Vancouver, local governments, and developers/home builders/homeowners.

2

Local government financial impacts represent the costs and savings incurred by local governments and Metro Vancouver only, assuming that initial meter installation costs associated with specific metering programs (e.g. new construction) are paid for by developers, home builders, and homeowners.

TBL findings show that the Full Commitment scenario, representing the implementation of universal metering on all single-family residential dwellings over an accelerated timeline, achieves the greatest overall benefits for the region. However, the findings also reveal that other more gradual approaches to implement water metering also result in net benefits, provided that initial meter installation costs associated with specific metering programs are paid for by developers, home builders, and homeowners. Public Attitudes Toward Residential Water Metering In fall 2017, Metro Vancouver commissioned focus group testing and an online survey on public attitudes toward residential water metering within the Metro Vancouver region. The survey found that most residents in Metro Vancouver (86%) support the concept of paying for water based on usage, versus a flat fee. Residents who support a user-pay model believe that such a system is more equitable, will increase user awareness of water use, and will provide an incentive to reduce water use. The majority of respondents supported all metering approaches evaluated, including 67% supporting universal metering, to which 20% were opposed and 13% were undecided. Water Metering Evaluation Tool The technical study investigated the overall costs and benefits of single-family residential water metering implementation for the region as a whole. To assist local governments in assessing conditions specific to their jurisdictions, a Water Metering Evaluation Tool was designed for use by local government staff. Metro Vancouver staff are working with local government staff to finalize the development of this tool and provide training on its use to inform local decision making.

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REGIONAL ASSESSMENT FINDINGS AND INDUSTRY BEST PRACTICES The findings of the regional assessment support the conclusion that water metering is an industry best management practice. This position is supported by the American Water Works Association, the Federation of Canadian Municipalities, Canadian Water and Wastewater Association, and other industry associations. Overall benefits of water metering include improved billing equity, water efficiency and conservation, leak detection and reduction, overall water systems management, and environmental stewardship. Reducing water use through metering practices also builds resiliency to climate change by encouraging sustainable water use habits. FEEDBACK FROM DECEMBER 5, 2018 LOCAL GOVERNMENT WORKSHOP This workshop was organized to provide an opportunity for a collaborative discussion between Metro Vancouver and local government staff regarding the technical findings of the regional assessment. The workshop was attended by 34 participants representing REAC Water Sub-Committee, REAC, and other local government staff members from 15 local governments. Feedback included the following:

• Technical study findings and resources were generally well-received; • Case studies presentations from the City of Richmond and District of West Vancouver

provided very valuable insights; and • Strong interest in receiving the Water Metering Evaluation Tool.

REGIONAL ENGINEERS ADVISORY COMMITTEE (REAC) AND REGIONAL ADMINISTRATIVE ADVISORY COMMITTEE (RAAC) COMMENTS REAC and RAAC received for information the report titled, “Regional Assessment of Residential Water Metering”, at their meetings on February 1 and 21, 2019, respectively. REAC members provided the following comments during discussion of this item:

• Estimated annual water savings and associated financial costs/benefits of residential water metering should be presented as a range to account for the inherent variability of the analysis;

• Provide clarification on why the assessment did not include an evaluation of multi-family residential homes;

• A clearer definition of total and local government financial impacts is required; • The non-financial benefits of water metering should be emphasized in the

Summary/Conclusions section of the report; and • Need to balance residential water metering goals with current regional priorities and

constraints. RAAC members provided the following comments during the discussion of this item:

• General support for the regional assessment and recognition of water metering as a best management practice;

• Interest in further information on multi-family water metering not captured within the current work; and

• Discussion on ways to incentivize local governments on the upfront costs of meter installations.

As applicable, this report reflects the above feedback from REAC and RAAC.

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NEXT STEPS Metro Vancouver staff are finalizing a proposed Metro Vancouver position on residential water metering and draft Best Practices Guide for Local Governments for REAC, RAAC, Water Committee and GVWD Board consideration. ALTERNATIVES This is an information report. No alternatives are presented. FINANCIAL IMPLICATIONS Metro Vancouver costs and resources to complete the Regional Assessment of Residential Water Metering project are included in the 2019 Water Services budget. The financial implications of implementing residential water metering are primarily local government utility and administrative costs related to the development of metering policies and/or bylaws, water rate analyses and adjustments, installation and operations of water meters, and staffing needs. Local governments typically fund water metering programs through their annual water utility budgets. Case study examples have shown that it is common practice in North America to reduce local government costs by shifting initial meter installation costs associated with specific metering programs to developers, home builders, and homeowners. The most appropriate funding approach for residential water metering will vary based on local conditions such as public attitudes and impacts to affordability and equity. SUMMARY / CONCLUSION Based on a triple-bottom-line evaluation, the Regional Assessment of Residential Water Metering evaluated the overall regional costs and benefits of residential water metering for single-family homes. The study findings conclude that the greatest regional benefits are achieved by implementing universal metering on all single-family residential dwellings over an accelerated timeframe; however, more gradual approaches also provide net benefits assuming that initial meter installation costs associated with specific metering programs are paid for by developers, home builders, and homeowners. Overall benefits of water metering include several non-financial benefits, such as improved billing equity, water efficiency and conservation, leak detection and reduction, overall water systems management, and environmental stewardship. Reducing water use through metering practices also builds resiliency to climate change by encouraging sustainable water use habits.

Attachments

1. Current Levels of Water Metering in the Metro Vancouver Region 2. Current Levels of Residential Water Metering within each Metro Vancouver Local Government 28128013

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Attachment 1

Current Levels of Water Metering in the Metro Vancouver Region

Industrial, commercial, institutional

buildings

Multi-family buildings

Single-family homes

0%

25%

50%

75%

100%

Perc

enta

ge o

f Met

ered

Con

nect

ions

in 2

017

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Attachment 2

Residential Water Metering within each Metro Vancouver Member Jurisdiction (2017)

0%

20%

40%

60%

80%

100%

Perc

enta

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f Met

ered

Mul

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Water Committee

To: Water Committee From: Goran Oljaca, Director, Engineering and Construction, Water Services Date: April 4, 2019 Meeting Date: April 11, 2019

Subject: GVWD Capital Program Expenditure Update as at December 31, 2018

RECOMMENDATION That the GVWD Board receive for information the report dated April 4, 2019, titled “GVWD Capital Program Expenditure Update as at December 31, 2018”. PURPOSE To present the GVWD Board with the final report on the financial performance of the capital program for the year ending December 31, 2018. BACKGROUND The Capital Expenditure reporting process as approved by the Board provides for regular status reports on capital expenditures with interim reports sent to the Water, Liquid Waste, Zero Waste, and Performance and Audit Committees in June/July and October/November, and a final year-end report to the Committees and the GVWD and GVS&DD Boards in April of each year. This is the third and final report for 2018 and looks at both the overall capital program for the utilities with a multi-year view of capital projects and the actual capital spending for the 2018 fiscal year in terms of comparison to the annual budget. GVWD CAPITAL PROGRAM FUNDING The capital spending for the GVWD is funded through the Water Operating Budget by a combination of contribution to capital (pay-as-you-go funding) and debt service costs (principal and interest payments) which is generated annually from the regional ratepayers. As a result, the annual impact on the ratepayers is significantly less than the level of budgeted capital expenditures. In 2018, the impact on the ratepayers for the Water Capital Budget of $206.1 million is the capital funding of $68.5 million (contribution to capital and new debt service costs) included in the 2018 Water Operating Budget. OVERALL GVWD CAPITAL PROGRAM The overall capital program for Water includes capital projects which require multiple years to complete. These projects are broken down into various phases such as project definition, pre-design, detailed design and construction. With the completion of each phase more information is learned for the appropriate costing of subsequent phases. It is expected that the capital spending on all Water capital projects completed in 2018 or ongoing at some point in 2018 will be under budget by $18.0 million which is within 0.36% of budget.

5.3

Water Committee

GVWD Capital Program Expenditure Update as at December 31, 2018 Water Committee Regular Meeting Date: April 11, 2019

Page 2 of 3

Table 1 in Appendix A provides a summary of GVWD capital expenditures for both ongoing and completed projects. Completed Projects include a summary of actual spending compared to the Board approved spending limits while the Ongoing Projects include a summary of projected spending to completion compared to Board approved spending limits. With the rare exception, projects tend to complete with actual spending below the approved limits predominantly due to savings on budgeted contingency amounts. Attachment 1 provides the details behind the summary information including specific capital projects and their various project phases while Attachment 2 provides additional project status information of some of the key projects included in Appendix A – Table 1. 2018 GVWD CAPITAL PROGRAM PROGRESS The Metro Vancouver financial planning process included Board approval of both an annual Operating Budget (operations, contribution to capital and debt service) and an annual Capital Budget for the planned capital infrastructure projects. The annual Capital Budget comprises the projected spending for a list of capital projects either continuing or to be started within the calendar year. Projecting the spending on these projects represents somewhat of a timing exercise which is often subject to uncontrollable circumstances. These uncontrollable circumstances are more likely when projects are in certain phases of completion. Where a project is in the definition, pre-design or detailed design phases, it is more likely that a project may be subject to delays from necessary permitting, access, clarification of design details or procurement complexities which will result in a lag in spending. Conversely, when a project is within the construction phase where a contractor is in place and working effectively on site, actual spending is usually very close to budgeted expectations. In 2018, annual capital expenditures for Water Services were $72.4 million compared to a capital budget of $206.1 million. The underspending of the Water Capital Budget was due to several projects in the pre-construction phases experiencing a variety of uncontrollable delays. It is noted that the regional ratepayers fund the GVWD Capital Program through the Metro Vancouver Water Rate which is derived from the Water Operating Budget, including capital funding (Contribution to capital and debt service costs), and do not directly fund the capital program. The 2018 GVWD Operating Budget included capital funding of $159.5 million. As a result of the underspending of the 2018 Capital Budget, a surplus of $2.9 million in capital funding (Contribution to capital and debt service costs) was realized. The Capital Funding surplus along with any other operating surpluses in any year, remain with the GVWD, and are applied in the subsequent budget year to avoid debt thereby reducing the impact on ratepayers. Table 2 in Appendix A provides a summary of the 2018 actual capital spending compared to the Board approved Capital Budget while the “Status of Water Services Capital Expenditures to December 31, 2018” included in Attachment 3 provides further information of the variance. ALTERNATIVES This is an information report. No alternatives are presented.

Water Committee

GVWD Capital Program Expenditure Update as at December 31, 2018 Water Committee Regular Meeting Date: April 11, 2019

Page 3 of 3

FINANCIAL IMPLICATIONS For 2018, resulting primarily due to uncontrollable project delays, the underspending of the GVWD Capital Budget was approximately $133.7 million or 64.9% which contributed to an overall surplus in capital funding of $2.9 million. This surplus, per policy, will be used in future years to fund capital and avoid debt. SUMMARY / CONCLUSION In 2018, the GVWD underspent its Capital Budget by $133.7 million or 64.94%. The delays experienced in projects in the early stages of completion resulted in the timing of expenditures differing from expectations. The underspending in the 2018 GVWD Capital Budget, resulted in a realization of a surplus in capital funding of $2.9 million. This surplus, per policy, will be used in future years to fund capital and avoid debt. Although the 2018 GVWD Capital Budget was underspent, the variance is a result of timing with the actual overall spending on a capital project expected to be close to or less than the overall budget for that project due to the savings of any budgeted contingencies. Attachments Appendix A: Capital Expenditure Summary – Water Services Attachment 1: Detailed GVWD Capital Expenditure Summary Attachment 2: GVWD Capital Project Status Information Attachment 3: 2018 GVWD Capital Spending Status Information

Water Committee

Metro Vancouver Capital Expenditure Summary Water Services

As at December 31, 2018

Table 1 – Ongoing and Completed Project Summary

Table 2 – 2018 Capital Spending Summary

Total Projected Projected

to Completion Variance

Water Services

Ongoing 4,466,682,000 4,481,242,000 14,560,000 0.3%

Completed 20,499,402 23,918,000 3,418,598 14.3%

Not Started 443,950,000 443,950,000 ‐

4,931,131,402$ 4,949,110,000$ 17,978,598$

Total Budget

2018 Actual

Budget Expenditures

Water Services

Infrastructure Growth Capital 69,100,000 21,073,962

Infrastructure Maintenance Capital 51,045,000 15,648,017

Infrastructure Resilience Capital 56,045,000 28,389,174

Infrastructure Upgrade Capital 29,600,000 7,287,933

Opportunity Capital 300,000 ‐

206,090,000$ 72,399,085$ 35.1%

APPENDIX A

Water Committee

Metro Vancouver ATTACHMENT 1Water District Capital Expenditures SummaryAs of December 31, 2018

Project Location Total BudgetLifetime

Expenditures to Date

Remaining Budget

Projected Expenditures to Completion

Projected Remaining Budget

Percent Complete

StatusProject on Schedule

Note Comments

Water Infrastructure Growth CapitalAnnacis Main No. 5 (Marine Crossing) New West/Surrey 448,000,000 23,015,185 424,984,815 448,000,000 ‐ 5% Ongoing YAnnacis Main No. 5 (North) New West/Surrey 36,600,000 54,881 36,545,119 36,600,000 ‐ 0% Ongoing N Design DelaysAnnacis Main No. 5 (South) Surrey 45,600,000 686,482 44,913,518 45,600,000 ‐ 2% Ongoing YBurnaby Mountain Pump Station No. 2 Burnaby 23,000,000 242,082 22,757,918 23,000,000 ‐ 1% Ongoing YCape Horn Pump Station No. 3 Coquitlam 31,050,000 13,246 31,036,754 31,050,000 ‐ 0% Ongoing YCoquitlam Intake No. 2 & Tunnel Coquitlam 854,230,000 3,161,486 851,068,514 854,230,000 ‐ 1% Ongoing YCoquitlam Main No. 4 (Cape Horn) Coquitlam 115,600,000 771,308 114,828,692 115,600,000 ‐ 1% Ongoing N Alignment revisionsCoquitlam Main No. 4 (Central Section) Coquitlam 179,470,000 1,316,938 178,153,062 179,470,000 ‐ 1% Ongoing N Alignment revisionsCoquitlam Main No. 4 (South Section) Coquitlam 95,650,000 1,164,292 94,485,708 95,650,000 ‐ 1% Ongoing N Alignment revisionsFleetwood Reservoir Surrey 35,367,000 2,924,971 32,442,029 35,367,000 ‐ 8% Ongoing N Permitting and property acquisition delays.Haney Main No. 4 (West Section) Port Coquitlam 61,400,000 179,366 61,220,634 61,400,000 ‐ 0% Ongoing YHellings Tank No. 2 Delta 29,411,000 2,553,435 26,857,565 29,411,000 ‐ 9% Ongoing N Property acquisition delays.Jericho Reservoir No. 1 Langley Township 34,665,000 4,065,058 30,599,942 34,665,000 ‐ 12% Ongoing Y (e)Kennedy Newton Main Surrey 136,500,000 2,749,306 133,750,694 136,500,000 ‐ 2% Ongoing N Route selection delays.Newton Pump Station No. 2 Surrey 23,800,000 539,953 23,260,047 23,800,000 ‐ 2% Ongoing N Property acquisition delays.Port Mann Main No. 2 (North) Coquitlam 30,200,000 28,518,735 1,681,265 30,200,000 ‐ 94% Ongoing N Project delayed due to unforeseen ground conditions.Port Mann Main No. 2 (South) Surrey 44,800,000 4,213,046 40,586,954 44,800,000 ‐ 9% Ongoing N Property acquisition delays.South Delta Main No. 1 Upgrade Delta 16,150,000 14,750,919 1,399,081 15,700,000 450,000 99% Ongoing N (c)(g) Construction delaysSouth Surrey Main No. 2 Delta 138,000,000 ‐ 138,000,000 138,000,000 ‐ 0% Not Started YWhalley Kennedy Main No. 2 Surrey 63,300,000 ‐ 63,300,000 63,300,000 ‐ 0% Not Started YWhalley Main Surrey 33,300,000 1,388,238 31,911,762 33,300,000 ‐ 4% Ongoing N Alignment revisions

2,476,093,000 92,308,926 2,383,784,074 2,475,643,000 450,000 Water Infrastructure Maintenance Capital

Annacis Main No. 3 Annieville Channel Crossing Scour Protection Surrey 814,000 309,636 504,364 314,000 500,000 99% Ongoing N (d) Permitting delays.Boundary Road Main No. 2 & No. 3 Decommissioning Burnaby 1,500,000 ‐ 1,500,000 1,500,000 ‐ 0% Not Started YBurnaby Mountain Reservoir Joint Sealant Burnaby 500,000 23,224 476,776 500,000 ‐ 5% Ongoing YCapilano Main No.5 (South Shaft to Lost Lagoon) Vancouver 135,650,000 2,208,714 133,441,286 135,650,000 ‐ 2% Ongoing N Delays due to project approval timeline.Capilano Main No. 7 Relocation Dist of North Van 2,500,000 483,765 2,016,235 2,500,000 ‐ 19% Ongoing N Coordinating with MOTI project.Capilano Watershed Security Gatehouse Dist of North Van 2,250,000 2,797 2,247,203 2,250,000 ‐ 0% Ongoing YCentral Park Main Replacement (Patterson to 10th Ave) Burnaby 94,050,000 1,115,269 92,934,731 94,050,000 ‐ 1% Ongoing N Delayed due to project scope review.Central Park PS Seismic Upgrade Burnaby 3,700,000 56,727 3,643,273 3,700,000 ‐ 2% Ongoing NCentral Park WPS Starters Replacement Burnaby 5,300,000 593,945 4,706,055 5,300,000 ‐ 11% Ongoing N Delays due to rezoning requirements.Cleveland Dam ‐ Lower Outlet HBV Rehabilitation Burnaby 2,950,000 97,299 2,852,701 2,950,000 ‐ 3% Ongoing YCleveland Dam ‐ Spillway Concrete Repairs Dist of North Van 2,900,000 2,229,264 670,736 2,900,000 ‐ 77% Ongoing N Additional scope of work.Cleveland Dam Drumgate Seal Replacement Dist of North Van 1,250,000 70,808 1,179,192 1,250,000 ‐ 6% Ongoing YDouglas Road Main No. 2 ‐ Kincaid Section Burnaby 12,300,000 9,705,838 2,594,162 12,300,000 ‐ 79% Ongoing N Construction delays.Douglas Road Main No. 2 (Vancouver Heights Section) Burnaby 28,486,000 856,899 27,629,101 28,486,000 ‐ 3% Ongoing N Procurement delays.Douglas Road Main No. 2 Delta Section Burnaby 16,600,000 16,582,377 17,623 16,600,000 ‐ 100% Completed N Construction delays.Douglas Road Main No. 2 Still Creek Burnaby 54,900,000 2,098,137 52,801,863 54,900,000 ‐ 4% Ongoing N Alignment revisitions.E2 Shaft Phase 3 Dist of North Van 16,500,000 7,040,485 9,459,515 16,500,000 ‐ 43% Ongoing N Drilling delays due to challenging ground.Fisherman's Trail/Riverside Drive Bridges Dist of North Van 3,250,000 3,092,882 157,118 3,250,000 ‐ 95% Ongoing YKersland Reservoir No. 1 Structural Improvements Vancouver 3,100,000 113,137 2,986,863 3,100,000 ‐ 4% Ongoing YLulu Island ‐ Delta Main ‐ Bridgeport Road Relocation Richmond 7,500,000 ‐ 7,500,000 7,500,000 ‐ 0% Not Started YLulu Island ‐ Delta Main ‐ Scour Protection Phase 1 Delta 1,750,000 969,997 780,003 1,750,000 ‐ 55% Ongoing YLulu Island ‐ Delta Main ‐ Scour Protection Phase 2 Delta 3,500,000 ‐ 3,500,000 3,500,000 ‐ 0% Not Started YLynn Valley Main PRV Chamber Upgrade Dist of North Van 3,300,000 1,398,673 1,901,327 1,630,000 1,670,000 99% Ongoing Y (d)Maple Ridge Main West Lining Repairs Maple Ridge 1,350,000 17,469 1,332,531 1,350,000 ‐ 1% Ongoing YMaple Ridge Pump Station Decommissioning Regional 800,000 372,017 427,983 530,000 270,000 99% Ongoing Y (b)Port Mann Main No. 1 (Fraser River Crossing Removal) Coq/Surrey 10,500,000 216,107 10,283,893 10,500,000 ‐ 2% Ongoing YPort Moody Main No. 3 Dewdney Trunk Rd Relocation Port Moody 2,100,000 ‐ 2,100,000 2,100,000 ‐ 0% Not Started YPort Moody Main No. 3 Scott Creek Section Port Moody 4,400,000 ‐ 4,400,000 4,400,000 ‐ 0% Not Started YQueensborough Main Royal Avenue Relocation New Westminster 7,500,000 ‐ 7,500,000 7,500,000 ‐ 0% Not Started YRechlorination Station Upgrades Regional 12,900,000 13,720 12,886,280 12,900,000 ‐ 0% Ongoing N Design delays, scope verification.Rechlorination Stations Chemical Refill Kiosk Corrosion Repairs Regional 600,000 375,319 224,681 375,319 224,681 100% Completed Y (d)Relocation and Protection for Translink Exp Projects Regional 22,900,000 ‐ 22,900,000 22,900,000 ‐ 0% Not Started YRiver Road West Main Hwy 99 Crossing Relocation Delta 1,200,000 ‐ 1,200,000 1,200,000 ‐ 0% Not Started YRiverside Drive Watermain Retaining Wall & Access Dist of North Van 375,000 389,533 (14,533) 525,000 (150,000) 100% Completed Y (f)Sasamat Reservoir Joint Upgrades UEL 700,000 39,168 660,832 700,000 ‐ 6% Ongoing N Delays due to operational requirements.

Project Lifetime

Project Name

2018 WD Capital Expenditure Summary - December_ / 2018 CES Board Report Page 1 of 3 4/4/2019Water Committee

Metro VancouverWater District Capital Expenditures SummaryAs of December 31, 2018



Remaining Budget



Percent Complete


Note Comments

Project Lifetime

Project Name

SCFP Concrete Coatings Dist of North Van 6,500,000 282,993 6,217,007 6,500,000 ‐ 4% Ongoing N Delays due to operational requirements.SCFP Filter Underdrain Repairs Dist of North Van 26,000,000 468,187 25,531,813 26,000,000 ‐ 2% Ongoing YSCFP OMC Building Expansion Dist of North Van 4,050,000 ‐ 4,050,000 4,050,000 ‐ 0% Not Started YSCFP Polymer System Upgrade Dist of North Van 2,350,000 29,728 2,320,272 2,350,000 ‐ 1% Ongoing YScour Protection ‐ General Regional 2,000,000 26,917 1,973,083 2,000,000 ‐ 1% Ongoing N Permitting delays.Seymour Falls Dam Buttress Anchor Rehab and Bridge Repair Dist of North Van 1,500,000 800,349 699,651 800,349 699,651 100% Completed Y (b)(c)Seymour Falls Dam‐Relief Wells Inspection & Rehab Dist of North Van 350,000 ‐ 350,000 350,000 ‐ 0% Not Started N Design delays. Construction methodology reviewSouth Delta Main No. 1 ‐ Ferry Road Check Valve Replacement Delta 550,000 ‐ 550,000 550,000 ‐ 0% Not Started YSouth Surrey Supply Main (Serpentine River) Bridge Support Modification Surrey 400,000 ‐ 400,000 400,000 ‐ 0% Not Started YSupplementary Secondary Disinfection Delta 1,500,000 ‐ 1,500,000 1,500,000 ‐ 0% Not Started YTilbury Main North Fraser Way Valve Addition Delta 1,500,000 ‐ 1,500,000 1,500,000 ‐ 0% Not Started YWestburnco #1 Water PS Main Transformer and MCC Replacement New Westminster 943,000 896,841 46,159 943,000 ‐ 95% Ongoing YWhalley Clayton Main Fraser Highway Relocation Surrey 650,000 52,365 597,635 650,000 ‐ 8% Ongoing N Deferred to fall 2019.

518,168,000 53,030,587 465,137,413 514,953,668 3,214,332

Water Infrastructure Resilience CapitalBarnston/Maple Ridge Pump Station ‐ Back‐up Power Pitt Meadows 9,000,000 45,173 8,954,827 9,000,000 ‐ 1% Ongoing YBraid St. Main No.2 New Westminster 8,300,000 7,366,509 933,491 8,300,000 ‐ 89% Ongoing N Tie‐ins deferred to accommodate Queensborough Main

replacement.Burnaby Mountain Reservoir Seismic Upgrade Burnaby 5,300,000 4,319,821 980,179 4,400,000 900,000 99% Ongoing Y (b)(c)Burnaby Mountain Tank Upgrades Burnaby 9,500,000 40,033 9,459,967 9,500,000 ‐ 0% Ongoing N Project scope under review. Cambie Richmond Main (Marine Crossing) Richmond 370,250,000 218,291 370,031,709 370,250,000 ‐ 0% Ongoing YCape Horn PS 1 & 2 Seismic Upgrade Coquitlam 2,300,000 324,232 1,975,768 324,232 1,975,768 100% Completed Y (a)(b)(d)Cape Horn Pump Station 2 ‐ Back‐Up Power Coquitlam 8,000,000 ‐ 8,000,000 8,000,000 ‐ 0% Not Started YCapilano Mid‐Lake Debris Boom Dist of North Van 750,000 30,561 719,439 750,000 ‐ 4% Ongoing N Procurement delays.Capilano Raw Water Pump Station ‐ Back‐up Power Dist of North Van 33,000,000 1,214,933 31,785,067 33,000,000 ‐ 4% Ongoing N Site selection delays.Capilano Reservoir Boat Wharf Dist of North Van 850,000 69,235 780,765 850,000 ‐ 8% Ongoing N Procurement delays.Clayton Langley Main Alternate Supply Surrey 29,450,000 ‐ 29,450,000 29,450,000 ‐ 0% Not Started YClayton Reservoir Surrey 33,600,000 18,387,350 15,212,650 24,500,000 9,100,000 95% Ongoing N (b)(c) Precast panel delivery and installation delays.Cleveland Dam Pump House Seismic Upgrade Dist of North Van 2,800,000 1,123,548 1,676,452 1,600,000 1,200,000 99% Ongoing Y (b)(d)Convert to Bulk Sodium Hypochlorite from Chlorine Gas at Coquitlam WTP Coquitlam 8,300,000 7,677,044 622,956 8,100,000 200,000 92% Ongoing Y (b)(c)Coquitlam Intake Tower Seismic Upgrade Coquitlam 11,000,000 502,893 10,497,107 11,000,000 ‐ 5% Ongoing YCritical Control Sites ‐ Back‐Up Power Regional 1,000,000 ‐ 1,000,000 1,000,000 ‐ 0% Not Started YCWTP Operational and Safety Enhancements Coquitlam 2,543,000 1,874,501 668,499 1,874,501 668,499 100% Completed Y (c)(d)CWTP Ozone Back‐up Power Coquitlam 7,450,000 ‐ 7,450,000 7,450,000 ‐ 0% Not Started YEmergency Power Strategy for Regional Water Facilities Regional 400,000 ‐ 400,000 400,000 ‐ 0% Not Started N Coordinating with Comprehensive Regional Water System

Plan.Haney Main No. 4 (Marine Crossing) P.Coq/P.Meadows 370,250,000 213,738 370,036,262 370,250,000 ‐ 0% Ongoing YMackay Creek Debris Flow Mitigation Dist of North Van 9,000,000 1,155,210 7,844,790 9,000,000 ‐ 13% Ongoing N Deferred to spring 2019.Pebble Hill Reservoir Seismic Upgrade Delta 10,800,000 55,672 10,744,328 10,800,000 ‐ 1% Ongoing YReservoir Isolation Valve Automation Regional 3,550,000 531,426 3,018,574 3,550,000 ‐ 15% Ongoing N Project start delayed due to refinement of scope and

associated constructability issues.SCFP UPS Reconfiguration Dist of North Van 1,270,000 523,819 746,181 1,270,000 ‐ 41% Ongoing YSecond Narrows Crossing (Tunnel) Burnaby/DNV 453,550,000 28,330,120 425,219,880 453,550,000 ‐ 6% Ongoing N Permitting and property acquisition delays.Seymour Falls Boat Wharf Dist of North Van 800,000 60,865 739,135 800,000 ‐ 8% Ongoing N Procurement delays.Seymour Main No. 2 Joint Improvements Dist of North Van 825,000 226,371 598,629 825,000 ‐ 27% Ongoing N Operational requirements.Seymour Main No. 5 III ( North ) Dist of North Van 186,000,000 2,080,220 183,919,780 186,000,000 ‐ 1% Ongoing YSeymour Reservoir Mid‐Lake Debris Boom Dist of North Van 1,200,000 656 900,000 1,200,000 ‐ 0% Ongoing YSouth Delta Main No. 3 ‐ 12th Ave to Pebble Hill Delta 19,400,000 18,535 19,381,465 19,400,000 ‐ 0% Ongoing N Project scope under review.Sunnyside Reservoir Unit 1 Upgrades Surrey 8,050,000 318,714 7,731,286 8,050,000 ‐ 4% Ongoing N Design delays.Sunnyside Reservoir Unit 2 Seismic Upgrade Surrey 15,100,000 396,702 14,703,298 15,100,000 ‐ 3% Ongoing YSystem Seismic Upgrade 137,400,000 ‐ 137,400,000 137,400,000 ‐ 0% Not Started YWestburnco Pump Station ‐ Back‐up Power New Westminster 19,000,000 517,501 18,482,499 19,000,000 ‐ 3% Ongoing N Design delays, scope verification.

1,779,988,000 77,623,674 1,702,064,982 1,765,943,734 14,044,266 Water Infrastructure Upgrade Capital

Cleveland Dam East Abutment Additional GV Series Pump Wells Dist of North Van 750,000 79,187 670,813 750,000 ‐ 11% Ongoing N Coordinating with Regional Parks and Capilano Raw Water Pumping Station Backup Power Project

Cleveland Dam Seismic Stability Assessment Dist of North Van 700,000 322,192 377,808 700,000 ‐ 46% Ongoing N Delay in site investigation and Design Basis Memorandum


Metro VancouverWater District Capital Expenditures SummaryAs of December 31, 2018



Remaining Budget



Percent Complete


Note Comments

Project Lifetime

Project Name

Coquitlam Communication Improvements Coquitlam 1,801,000 123,300 1,676,700 1,801,000 ‐ 7% Ongoing N Design on hold pending review of current future communication needs and confirmation of scope.

CWTP Ozone Generation Upgrades for Units 2 & 3 Coquitlam 12,000,000 528,280 11,471,720 12,000,000 ‐ 4% Ongoing N Delays due to operational requirements.Haney Main No. 2 Valve Chamber Upgrade ‐ Abernethy Way and 232nd St Maple Ridge 1,600,000 524,931 1,075,069 1,600,000 ‐ 33% Ongoing YLCOC Metal Shop Expansion and Dry Storage Development Burnaby 2,070,000 81,527 1,988,473 2,070,000 ‐ 4% Ongoing YLower Seymour Conservation Reserve Learning Lodge Replacement Dist of North Van 2,900,000 224,955 2,675,045 2,900,000 ‐ 8% Ongoing YSapperton Main No. 1 New Line Valve and Chamber New Westminster 3,800,000 205,030 3,594,970 3,800,000 ‐ 5% Ongoing YSeymour Falls Dam Turbine Upgrade Project Dist of North Van 500,000 9,731 490,269 410,000 90,000 2% Ongoing YSouth Delta Main No. 1 ‐ 28 Ave to 34B Ave Delta 18,050,000 3,200,477 14,849,523 18,050,000 ‐ 18% Ongoing N Property acquisition and permitting delays.South Delta Mains ‐ 28 Ave Crossover Delta 8,500,000 1,426,882 7,073,118 8,500,000 ‐ 17% Ongoing N Property acquisition and permitting delays.Tilbury Junction Chamber Valves Replacement with Actuators Delta 4,700,000 1,517,407 3,182,593 4,700,000 ‐ 32% Ongoing N Delay in land acquisition.Water Meter Upgrades Regional 13,700,000 997,963 12,702,037 13,700,000 ‐ 7% Ongoing N Procurement delays.Water Optimization Automation & Instrumentation Regional 9,540,000 2,446,180 7,093,820 9,540,000 ‐ 26% Ongoing N Procurement delays.

80,611,000 11,688,043 68,921,957 80,521,000 90,000 Water Opportunity Capital

Capilano Hydropower Dist of North Van 94,250,000 218,368 94,031,632 94,250,000 ‐ 0% Ongoing N Business case re‐assessment94,250,000 218,368 94,031,632 94,250,000 ‐

Total Water Services 4,949,110,000 234,869,598 4,713,940,058 4,931,311,402 17,798,598

Notes:(a) Design cost lower than estimated.(b) Construction costs lower than estimated.(c) Full contingency not required.(d) Reduction in scope.(e) City of Surrey share ‐ 33.72%; Township of Langley share ‐ 66.28%(f) Unforseen geotechnical conditions.(g) GVWD share ‐ 25%: TFN share ‐ 75%. ‐

‐


28773856

Capital Project Status Information December 31, 2018

1. GREATER VANCOUVER WATER DISTRICT (Water Services)

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

i) Infrastructure Growth Program

• Annacis Water Supply Tunnel – A 2.3 km long, 4.5 m diameter water supply tunnel is required underthe Fraser River to meet growing water demand south of the Fraser and to provide increased systemresiliency. Detailed design, which was awarded to Hatch Corporation, has reached 60% completion.Property acquisition for the shaft sites in New Westminster and Surrey is nearing completion.Environmental investigations continue at the north shaft site in New Westminster.

• Annacis Main No. 5 (South) ‐ This project comprises approximately 3.0 km of 1.8 m diameter steelpipe connecting the south shaft of the Annacis Water Supply Tunnel to the Kennedy Reservoir in theCity of Surrey. The preliminary design phase has been completed and the detailed design phase is inprogress.

• Coquitlam Intake No. 2 – A new intake, tunnel and treatment plant are proposed at the CoquitlamReservoir to increase the supply and transmission capacity from this source. The Project DefinitionReport for the North Intake phased filtration option is anticipated to be complete by the end ofDecember 2019.

• Coquitlam Main No. 4 ‐ This 13 km long steel water main, consisting of the Central, South and CapeHorn Sections, will increase the transmission capacity from the Coquitlam Water Treatment Plant tothe Cape Horn Pump Station and Reservoir in the City of Coquitlam. This project is required to addresscapacity constraints in the existing Coquitlam transmission system and also provide capacity for futuregrowth. Detailed design is anticipated to commence in fall 2019 after the preferred alignment isestablished.

• Fleetwood Reservoir – Phase 1 of the Fleetwood Reservoir project includes a 13.6 ML reservoir,chamber, piping, access building and associated work located at Meagan Ann MacDougall Park in theCity of Surrey. Detailed design is complete. Construction has been deferred to mid‐2019.

• Jericho Reservoir – Phase 1 of the Jericho Reservoir project includes a 20.6 ML reservoir, chambers,piping and associated work in the Township of Langley. Construction commenced in December 2018and is projected to be complete in July 2020.

• Kennedy Newton Main ‐ This project comprises approximately 9.0 km of 1.8 m diameter between theKennedy Reservoir and the Newton Reservoir in the City of Surrey. Preliminary design has beencompleted and detailed design is in progress. Construction will be divided into several phases with thefirst phase expected to start in late 2019.

ATTACHMENT 2

Water Committee

28773856

• Port Mann Main No. 2 (North) – This 2.5 km long, 1.5 m diameter steel water main will twin the

existing Port Mann Main to meet growing water demand south of the Fraser River. Construction of the new main between the Cape Horn Pump Station and Reservoir near Mariner Way and the new Port Mann Water Supply Tunnel is complete. Tie‐ins to the existing regional system have commenced.

• Port Mann Main No. 2 (South) – This 2.8 km long, 1.5 m diameter steel water main will twin the

existing Port Mann Main between the south shaft of the Port Mann Water Supply Tunnel and the Whalley Reservoir in the City of Surrey. The project is required to meet growing water demand south of the Fraser River. Detailed design of the project is complete and construction is underway.

• Whalley Main ‐ This 2.5 km long, 1.5 m diameter steel main will twin the existing Whalley Clayton Main

between the Whalley Reservoir and the Whalley Kennedy Link Main in the City of Surrey. Detailed design of the project is complete with the construction tender closing in March 2019.

ii) Infrastructure Maintenance Program

• Douglas Road Main No. 2 – Still Creek Section ‐ This project comprises approximately 2.5 km of 1.5 m diameter steel pipe with trenchless crossings of Highway 1, Still Creek and the BNSF rail line. The water main alignment is being finalized.

• Douglas Road Main No. 2 – Vancouver Heights Section ‐ This project comprises approximately 2.0 km

of 1.5 m diameter steel pipe connecting the Vancouver Heights Reservoir to the Douglas Road Main No. 2 at Beta Avenue and Albert Street in the City of Burnaby. Detailed design is complete and construction is scheduled to commence in May, 2019.

• E2 Shaft Replacement – The E2 Shaft, which has controlled ground water in the East Abutment of

Cleveland Dam since the 1950’s is nearing the end of its service life and needs to be replaced by a system of horizontal drains. A contract to drill three (3) production drains was awarded to Jensen Drilling and is now complete. The completed drains were monitored and evaluated and the design consultant has recommended the installation of two additional drains. Drilling of these drains commenced in November.

• Capilano Main No. 5 (Stanley Park Section) – This 1.4 km long steel water main will replace the existing

Capilano Main No 4 through Stanley Park to meet growing water demand and provide increased system resiliency. Vancouver Park Board approval to commence design on the project has been secured and the preliminary design phase has commenced.

• SCFP Filter Underdrain Repair – This project consists of phased replacement of the existing

underdrains in the filters. Construction commenced in January 2019 and is scheduled for completion in 2021.

• Fisherman’s Trail Bridge Crossing Project – This project included the construction of a pedestrian Suspension Bridge over the Seymour River as well as a vehicular bridge at the north end of Riverside Drive to re‐establish a popular recreational trail connection and provide infrastructure maintenance access within the Lower Seymour Conservation Reserve. Construction is complete and the areas re‐opened to the public in December 2018.

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• Cleveland Dam ‐ Spillway Concrete Repairs Construction ‐ As part of the ongoing maintenanceprogram for the Cleveland Dam, the spillway training walls and a section of the spillway are beingrepaired. Repairs include crack repair and the application of a cementitious coating on the trainingwalls and minor resurfacing on the spillway. Construction started in April 2018 and is approximately65% complete. The remaining work will be completed in summer/fall 2019.

iii) Infrastructure Resilience Program

• Braid Street Main No. 2 – This project consists of 2 km of 600mm diameter ductile iron pipe that willreplace the existing Braid Street Main in the City of New Westminster. Construction has beencompleted and tie‐ins are planned for spring/fall 2019.

• Clayton Reservoir – This project comprises a new 22.5 ML reservoir located at 72nd

Avenue and 190th

Street in Surrey that will increase the storage capacity, meet current seismic standards and replace theexisting Clayton Tank. The new reservoir is now in service and site restoration and architecturalfinishing is underway. Demolition of the existing tank is complete.

• Mackay Creek Debris Flow Mitigation – Detailed design and construction management services forthis project were awarded to BGC Engineering Inc. Detailed design is complete. The constructioncontract has now been awarded to BEL Contracting. Construction is anticipated to start in spring 2019.

• Second Narrows Water Supply Tunnel – This project comprises a 1.1 km long, 6.5 m diameter watersupply tunnel under Burrard Inlet, between North Vancouver and Burnaby, to increase the reliabilityof supply in the event of a major seismic event and provide additional long term supply capacity. Theprocurement process for construction is complete and a contract was awarded to the Traylor‐AeconGeneral Partnership on October 31, 2018. Mobilization and site preparation is scheduled to commencein early 2019.

• Capilano Raw Water Pump Station – Back‐up Power – This project consists of installing dieselgenerators to provide back‐up power to the pump station. A RFP for the equipment pre‐purchase hasclosed and a contract has been awarded, and the equipment is anticipated to arrive in 2020. Theconstruction is anticipated to start January 2020.

iv) Infrastructure Upgrade Program

• South Delta Main No. 1 Replacement ‐ Phase 3 – This project consists of replacement of the existingSouth Delta Main No. 1 on 53rd Street from 28th Avenue to 34B Avenue, and on 28th Avenue between52nd Street and 53rd Street. Phase 3 consists of approximately 1.6 km of 900 mm diameter weldedsteel pipe, a crossover valve chamber at the intersection of 28th Avenue and 53rd Street, and acrossing of the BC Rail tracks at Deltaport Way. Phase 3 construction commenced in fall 2018 and isscheduled for completion in the fall of 2019. The work is being coordinated with the City of Delta’sroad reconstruction and storm drain installation work.

• Coquitlam Ozone Upgrade – This project consists of upgrades to the ozone generators at theCoquitlam Water Treatment Plant. The supply contract for the power supply units and controlcomponents has been awarded and installation is scheduled to commence early 2019.

Water Committee

Greater Vancouver Water District (Water Services) Capital Spending Status Information

December 31, 2018

Water Services

A significant number of projects in Water experienced unexpected delays in 2018. Key drivers of the

schedule delays include municipal permitting and approvals, land acquisition, changing operational

requirements and procurement challenges. Some of the significant projects affected by these delay factors

include the Second Narrows Water Supply Tunnel, South Delta Main No 1 Replacement, Coquitlam Water

Treatment Plant Ozone Generation Upgrades, Fleetwood ‐ Jericho ‐ Sunnyside Reservoir construction,

Central Park Main Replacement and Pump Station Upgrades construction, Mackay Creek Debris Flow

Mitigation and Douglas Road Main/Whalley Main construction. The majority of these projects are now in

construction, or have been tendered.

Key projects moving forward as planned include the Annacis Main No. 5 Marine Crossing, Braid St. Main

No. 2, Fisherman’s Trail/Riverside Drive Bridges and the Cleveland Dam Spillway Concrete Repairs.

ATTACHMENT 3

Water Committee

To: Water Committee From: Larry Chow, Program Manager, Quality Control Date: March 26, 2019 Meeting Date: April 11, 2019 Subject: 2018 GVWD Water Quality Annual Report RECOMMENDATION That the GVWD Board receive for information the report dated March 26, 2019 titled “2018 GVWD Water Quality Annual Report”. PURPOSE To provide a summary of the 2018 GVWD Water Quality Annual Report. BACKGROUND Each year Metro Vancouver is required, under the BC Drinking Water Protection Regulation (DWPR), to produce an annual report on drinking water quality. The annual report is also a requirement of the Drinking Water Management Plan. The annual report provides the key results and findings associated with Metro Vancouver’s program of continuous monitoring and assessment of drinking water quality in the region. The report also provides an assessment of drinking water quality relative to the existing drinking water standards and guidelines and highlights any unusual occurrences. Monitoring results for local government members are also discussed in the annual report where relevant. However, each local government is required to produce a separate report on their system. In accordance with Section 11 of the DWPR, the GVWD Water Quality Annual Report will be sent to the Chief Medical Health Officers of the Vancouver Coastal and Fraser Health Authorities. Additionally, the annual report will be made accessible to the public through public libraries in the region, including Metro Vancouver’s library and Information Centre, and will be posted on Metro Vancouver’s website. This report is being brought forward at this time in order to enable Metro Vancouver and its local government members, to meet the reporting timeline stipulated in the DWPR. WATER QUALITY/TREATMENT HIGHLIGHTS A summary of the main items relevant to water quality during 2018 follows: a) Source Water Quality

i) The Capilano supply was in service for the entire year. Heavy rainfall events in late November resulted in Capilano source water turbidity peaking at 7.9 Nephelometric Turbidity Units (NTU). Even with the higher turbidity, the delivered filtered Capilano water was less than 0.1 NTU for the entire year.

5.4

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ii) The Seymour supply was in service for the entire year. Heavy rainfall events resulted in the source water turbidity peaking at 13.7 NTU in January. The delivered filtered Seymour water was less than 0.1 NTU for the entire year.

iii) The Coquitlam supply was in service for the entire year. The turbidity of the unfiltered Coquitlam source water was greater than 1 NTU for 9 days in 2018, but did not exceed 5 NTU throughout the year.

iv) The microbiological quality of the three source waters was excellent in 2018. All three sources easily met the bacteriological requirements outlined in the Guidelines for Canadian Drinking Water Quality (GCDWQ).

v) Results of the analyses of the source water for herbicides, pesticides, volatile organic compounds and radionuclides were all found to be below the recommended limits for these substances as listed in the GCDWQ.

b) Water Treatment

i) In 2018, the turbidity levels of the delivered water easily met the requirements of the Guidelines for Canadian Drinking Water Quality (GCDWQ).

ii) The Seymour Capilano Twin Tunnels enabled the Capilano source water to be treated at the Seymour Capilano Filtration Plant (SCFP) and subsequently returned to the Capilano transmission system throughout the entire year.

iii) The SCFP provided full filtration and the plant performance, as measured by the quality of the delivered water, was excellent in 2018. The daily average turbidity of water leaving the clearwells to enter the GVWD transmission system was less than 0.1 NTU.

Turbidity levels for individual filters met the turbidity requirements of the

GCDWQ. Filtration consistently removed iron, colour and organics from Capilano and

Seymour source water. Levels of total aluminum in filtered water were consistently below the GCDWQ

operational guideline value of 0.2 mg/L for direct filtration plants using aluminum-based coagulants. The maximum value for 2018 was 0.05 mg/L.

iv) UV treatment is the primary disinfectant along with ozone pre-treatment and chlorine

disinfection for water originating from the Coquitlam source, resulting in water treatment meeting requirements as outlined in the GVWD’s Operating Permit.

v) The secondary disinfection stations within the distribution system boosted chlorine levels as required.

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c) Distribution System Water Quality i) Bacteriological water quality in the GVWD transmission mains and in-system storage

reservoirs was excellent in 2018. Of approximately 6,000 regional samples collected for testing in 2018, three transmission main samples were positive for E.coli. When an E.coli is detected, a response protocol is triggered, which includes an evaluation and repeat sampling. This process was implemented for each of the three samples, and in each case it was determined that the E.coli positive sample was anomalous and not related to the quality of the water. No E.coli were detected in the in-system storage reservoirs in any of the samples taken.

ii) Bacteriological water quality in the distribution systems of the local governments was excellent in 2018. Of approximately 20,000 local government samples collected for testing in 2018, a high percentage (99.7%) were free of total coliforms, which was similar to 2017 (99.8%). In 2018, no E. coli was detected.

iii) The running average levels of the trihalomethane group of chlorine disinfection by-products detected in the delivered water in the GVWD and local government systems were well below the Maximum Acceptable Concentration (MAC) specified in the GCDWQ. The running average levels for the haloacetic acid group of chlorine disinfection by-products in the GVWD system were below the Canadian Guideline MAC.

ALTERNATIVES This is an information report. No alternatives are presented. FINANCIAL IMPLICATIONS Preparation of the GVWD Water Quality Annual Report is included in the Water Services annual operating budget under the Drinking Water Quality Control Program. SUMMARY / CONCLUSION As outlined by the 2018 GVWD Water Quality Annual Report, Metro Vancouver’s water quality monitoring program continues to fulfill its role in confirming that the multiple protection barriers for drinking water that the GVWD has in place including watershed protection, water treatment and ongoing operation of the water system to maintain water quality, are working effectively. As such, the drinking water provided by the GVWD to its customers met or exceeded water quality standards and guidelines in 2018. 28849847

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5.5

To: Water Committee From: Mike Searle, Program Manager, Management Systems, Water Services Frank Huber, Director, Major Projects, Management Systems, and Utility Services,

Water Services Date: March 13, 2019 Meeting Date: April 11, 2019 Subject: Asset Management for Water Services Policy RECOMMENDATION That the Water Committee endorse the Asset Management for Water Services Policy as presented in the attached report dated March 13, 2019, titled “Asset Management for Water Services Policy”. The Water Committee responsibilities, as included in the Committee Terms of Reference, include the following:

The Water Committee is the standing committee of the Metro Vancouver Board that provides advice and recommendations on policies, bylaws, plans, programs, budgets and issues related to water management under the GVWD service.

The proposed Asset Management for Water Services Policy is presented to the Water Committee for review and comment prior to consideration by the Finance and Intergovernment Committee at its meeting on May 15, 2019. Attachment Finance and Intergovernment Committee Report dated March 13, 2019, titled “Asset Management for Water Services Policy” 28516567

Water Committee

ATTACHMENT

28305607

To: Finance and Intergovernment Committee From: Mike Searle, Program Manager, Management Systems, Water Services Frank Huber, Director, Major Projects, Management Systems & Utility Services Date: March 13, 2019 Meeting Date: May 15, 2019 Subject: Asset Management for Water Services Policy RECOMMENDATION That the GVWD Board approve the Asset Management for Water Services Policy as presented in the report dated March 13, 2019, titled “Asset Management for Water Services Policy”. PURPOSE To present for GVWD Board consideration and approval the Asset Management for Water Services Policy, which will establish asset management principles and a framework to balance asset performance, risk and cost to deliver water services with the goal of maximizing the lifecycle of Water Services (WS) assets.

BACKGROUND In 2018, asset management policies for the Metro Vancouver Housing Corporation (MVHC) and Liquid Waste Services were adopted by the MVHC and Greater Vancouver Sewerage and Drainage District (GVS&DD) Boards, as part of the work underway across the organization to develop an overall asset management program and series of asset management policies for all Metro Vancouver functions. Development of an asset management policy for Water Services in included in the 2019 Water Services Work Plan.

This report brings forward the Asset Management for Water Services Policy for consideration by the Finance and Intergovernment Committee and GVWD Board. The Policy has also been reviewed for input by the Water Committee and the Performance and Audit Committee in advance of this meeting. ASSET MANAGEMENT IN WATER SERVICES Building new infrastructure and maintaining the existing assets in a state of good repair is critical to the success of Water Services. Good infrastructure stewardship enables the utility to provide quality and affordable services to the community. Metro Vancouver water infrastructure is a public investment with a replacement value of approximately $10 billion. Metro Vancouver (GVWD) has been acquiring, managing and disposing of assets to deliver services since its inception as a utility. Due to the vast quantity of data to be tracked and managed, the collection and updating of data and information on the assets has varied across business units, with assets being recorded using various tools, including work planning software and spreadsheets. An organizational need was recognized to implement a formal, systematic process of deploying, operating, maintaining and disposing of assets cost effectively to manage the vast quantity of data

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within the system, and to develop a system that will apply consistent asset management principles across all Metro Vancouver legal entities. Water Services staff have been developing asset risk assessments, customer levels of service metrics, asset performance metrics, condition assessment frameworks and asset management plan reporting tools. In addition, a process has been initiated to identify gaps and priorities to improve asset data collection and information systems and to link these to short term budgeting and long term financial planning activities. Asset management is an integrated approach involving all levels of the organization that translates the organization’s objectives into asset related decisions, plans and activities using a risk based approach in order to maximize benefits, reduce risks and provide the desired performance of assets in a sustainable manner over their full life cycle, considering both current and future needs. Asset related decision-making is evidence based and supports the delivery of clearly defined performance measures. PROPOSED ASSET MANAGEMENT POLICY The proposed Asset Management for Water Services Policy contains the following key areas that will guide the management of assets within the Greater Vancouver Water District:

• Asset Management Principles • Asset Classes • Asset Data and Information • Asset Performance & Likelihood of Failure • Asset Criticality & Consequence of Failure • Asset Risk & Lifecycle Management Strategies • Asset Management Plans • Continuous Improvement

The principles and evaluation criteria outlined in the proposed Policy will assist staff in implementing the direction of the GVWD Board by ensuring that the appropriate asset management principles are adopted as a core business model that promotes continuous improvement. The Policy provides asset management principles that balances asset performance, risk and the cost that supports the long term provision of water services. This is a strong mandate and catalyst for business improvement activities and a basis to develop asset management related objectives that align with Metro Vancouver’s overarching strategic objectives.

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ALTERNATIVES 1. That the GVWD Board approve the Asset Management for Water Services Policy as presented in

the report, dated March 13, 2019, titled “Asset Management for Water Services Policy”. 2. That the GVWD Board receive for information the report dated March 13, 2019, titled “Asset

Management for Water Services Policy” and provide alternate direction. FINANCIAL IMPLICATIONS If alternative one is approved, implementation of the Policy can be initiated with existing resources and without additional immediate costs to Metro Vancouver. Over the next 5 years, additional effort will be required to improve the coverage and accuracy of asset data and information, through condition and risk assessments as well as software improvements to manage the wealth of data, streamline current maintenance activities and use that data to guide decisions regarding long-term infrastructure investments. Over the longer term, costs for the asset management program are anticipated to be offset by maximizing the lifespan of assets and avoiding costs for reactive asset repair and replacement. Under alternative two, the Committee may wish to make changes to the Policy or refer it back to staff for further analysis. SUMMARY / CONCLUSION The goal of the proposed Asset Management for Water Services Policy is to balance asset performance, risk, and cost. This Policy outlines GVWD’s commitment and methodology to manage water assets in a manner that minimizes asset failure risks and impacts to both residents and member jurisdictions while optimizing the life cycle of assets. The Policy will guide Water Services to meet asset performance targets within a specified budget and enable evidence based decision making with respect to infrastructure rehabilitation and replacement. As presented in alternative one, it is recommended that the Asset Management for Water Services Policy be approved by the GVWD Board. Attachment: Asset Management for Water Services Policy (26620082)

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26620082 Asset Management for Water Services Policy Page 1 of 6

BOARD POLICY

ASSET MANAGEMENT FOR WATER SERVICES Effective Date: Approved By: GVWD Board PURPOSE

To establish asset management principles and framework to balance asset performance, risk and cost to deliver water services. POLICY

Water Services delivers water storage, treatment and transmission services through an extensive and complex portfolio of natural and built assets. This policy outlines Metro Vancouver’s commitment and methodology to manage these assets in a manner that minimizes asset failure risks and impact to customers and optimizes the lifecycle value of assets to consistently meet asset performance targets and enable evidence‐based decision making to continuously provide quality services. NATURAL ASSETS The Water utility’s natural assets, comprised of the forests, streams, rivers, and lakes that make up the protected water supply lands, provide ecosystem services which are essential to the region’s water supply and the environmental sustainability of the area. Whether naturally occurring, or constructed and enhanced to improve function, these assets must be operated and maintained. If managed appropriately, natural assets do not require replacement.

As the tools and methodologies for quantitatively assessing natural assets evolve, Water Services will determine how best to inventory and assess natural assets in order to ensure they can be managed in accordance with the principles set out in this Policy. BUILT ASSETS Built assets such as dams, treatment plants, water mains, pump stations, and reservoirs have been engineered/constructed to store, treat, and deliver water services to our customers. ASSET MANAGEMENT PRINCIPLES

The methodology for managing Water Services assets is guided by the following principles:

a) Integrated: a comprehensive approach that examines the combined implications of managing all aspects of the asset life cycle. This includes interdependencies of assets or asset systems

b) Risk‐based: manage asset risk relative to defined performance targets and asset criticality and focus expenditures and priorities based on risk and associated cost and benefit

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BOARD POLICY

c) Sustainable: a long‐term approach to estimating asset investment and activities, which will better enable assets to meet future challenges, including changing demographics, legislative requirements and technological, financial, climatic and environmental factors

d) Fiscally Responsible: ensure activities and decisions aim at reducing the life cycle cost of asset ownership, while achieving defined asset performance targets

e) Systematic: a formal, consistent, repeatable and methodical approach to the management of assets

f) Innovative: continuous improvement in Asset Management by examining new tools, technologies, practices and solutions

ASSET CLASSES

This policy is applicable to the management of each Water Services asset in the following nine asset classes:

Watersheds Dams Water Treatment Plants Water Mains Pump Stations Reservoirs Rechlorination Stations Communications Systems Works Yards

ASSET DATA AND INFORMATION

To measure performance of Water Services assets, Water Services will develop and maintain an Asset Registry with comprehensive and accurate asset data and information. Data will be organized in a structured manner so that it can be stored, analyzed and reported at an adequate level for different business needs. Integrity of the data shall be constantly monitored, updated and maintained to provide accurate asset information. The Water Services Asset Registry will include at a minimum, the following:

Asset grouping (e.g. utility, asset class) Asset location (e.g. facility, sub‐facility/process) Asset details (e.g. make, model, material, size, install date, expected service life) Asset identification (e.g. type, number, description) Asset criticality and risk information

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Financial information (e.g. acquisition and disposal costs, estimated replacement cost, Operations & Maintenance costs)

Asset condition and/or estimated remaining service life ASSET PERFORMANCE AND LIKELIHOOD OF FAILURE

Water Services will manage and renew each asset in accordance with clearly defined asset performance metrics and targets. Asset performance information is used as an indicator of an assets’ likelihood of failure. Water Services asset performance categories, key performance indicators and targets are provided in the table below.

Performance Category

Performance CategoryDescription

Key Performance Indicator (KPI)

Minimum Standard

Condition Asset physical condition Condition Score (see table below)

All assets: Condition Score is Grade 3 (Fair) to Grade 4 (Poor) or better High criticality assets: Condition Score is Grade 2 (Good) to Grade 3 (Fair) or better

Maintenance Costs

Cost to maintain the asset (e.g. labour, parts)

Annual asset maintenance costs

Annual asset maintenance cost is less than 20% of replacement cost

Obsolescence Asset is obsolete; technology is no longer supported and cannot be maintained or replaced

Assets with obsolete technology

No assets with obsolete technology

Functionality Current functionality of the asset (e.g. capacity, velocity, safety)

Asset functionality vs as‐designed functionality

Asset functioning as‐designed

Water Services will use a 1 to 5 condition scoring system in accordance with the table below. When condition information is not available, an age based remaining service life will be used as a proxy for asset condition. Condition information will be stored in the asset register at a level most practical to capture and maintain the condition data. Water Services will develop asset specific descriptions based on the table below to enable assignment of Grade 1‐5 condition score for all assets.

Condition Score Description

Grade 1 Very Good New or Excellent condition, no apparent defects.

Grade 2 Good In good state of repair, some minor defects (e.g. finishes) that do not detract from functionality.

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Condition Score Description

Grade 3 Fair Some non‐critical defects are apparent.

Grade 4 Poor Failure possible, some critical defects are apparent and functionality is affected.

Grade 5 Very Poor Failure imminent (within 12 months).

Water Services will consider asset vulnerability in assessing likelihood of failure. Vulnerability is the extent to which the asset or grouping of assets can withstand a potential failure and includes factors such as asset redundancy, asset material, soil type and cathodic protection.

ASSET CRITICALITY AND CONSEQUENCE OF FAILURE

Asset criticality is a measure of the asset’s relative consequence of failure. It is considered in planning asset replacement, rehabilitation, operations and maintenance strategies as well as alternative risk mitigation strategies (e.g. emergency preparedness and response planning). High criticality assets (e.g. marine crossings) have the potential for significant impact on services if they fail. Failure of low criticality assets (e.g. portable sump pump) will have low or no impact on services. As there is less tolerance to asset failure for high criticality assets, they will be monitored more frequently and have higher priority for asset inspection and improvement work than medium or low criticality assets. The information outlined in the table below will be considered to determine asset criticality (consequence of failure).

Consequence of Failure Category Consequence of Failure Criteria

Worker and Public Safety Injuries from physical infrastructure failure

Ecological & Public Health Negative environmental impact, not meeting GVWD Operating Permit requirements, poor drinking water quality, unacceptable pressure deviation, loss of water service

Social Water use restrictions, loss of use of facility / propertyDisruption to land / marine transportation services

Economic Asset restoration and supplemental O&M costs Economic impact to third partiesEconomic impact from penalties

The following criteria are taken into consideration in assessing the relative consequence of failure:

Population/number of people affected Type of infrastructure/services affected (e.g. hospital, school, park, highway, rail) Location of potential failures (e.g. waterways, land use)

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ASSET RISK AND LIFECYCLE MANAGEMENT STRATEGIES

Managing risks to assets is essential to maintaining expected Water Services service levels and the core focus of Asset Management. Risk is the combination of likelihood and consequence of a failure event occurring:

Risk = Likelihood x Consequence

Key performance indicators and asset performance targets will be monitored to identify the likelihood of failure of an asset. When asset data and information indicates that an asset is failing to meet performance target(s), Water Services staff will identify the relative consequence if the asset fails (asset criticality), assess the risk and identify options to address the risk. Risk mitigation options could include asset replacement, rehabilitation, modified operations and maintenance strategies as well as modified emergency preparedness and response planning. In evaluating different options, economic, social and environmental benefits will be considered for each option. Total asset life cycle costs including capital investment, expenditures related to operations and maintenance of the asset and decommissioning costs will be considered. Where infrastructure investment is required, Water Services will consider opportunities to address other needs or future requirements (e.g. capacity increase, seismic resiliency improvement, etc.) consistent with integrated infrastructure investment planning and the following service level objectives:

Maintain Quality of the Drinking Water Delivered Maintain Capacity and Reliability of the Water Supply System Improve Environmental Stewardship Minimize Timeline to recover from a Major Event (including Seismic, Power Interruption and

Climate Change) ASSET MANAGEMENT PLANS

Water Services will have asset management plans to summarize asset performance data and information, including a summary of performance risks. Asset Management Plans will also outline the risk mitigation strategies (including capital investments, operating and maintenance strategies and emergency response strategies) and short and long term projected costs. Water Services will have 10 facility‐level Asset Management Plans as follows:

Watersheds Dams Seymour Capilano Filtration Plant (SCFP) Coquitlam Water Treatment Plant (CWTP) Water Mains Pump Stations Reservoirs Rechlorination Stations

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Communications Systems Works Yards

Asset Management Plans will be updated on a regular schedule (minimum every 5 years). Information from the facility‐level Asset Management Plans will be aggregated and summarized to prepare a departmental Water Services Asset Management Plan. CONTINUOUS IMPROVEMENT

Water Services will examine, monitor, identify and address asset management improvement opportunities to enhance asset management tools, technologies and business practices. Staff will be trained to support asset management activities from assessing asset condition to renewing assets to improve asset performance. Water Services will report on improvement activities related to the Water Services Asset Management Program.

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5.6

To: Water Committee From: Roy Moulder, Director, Purchasing and Risk Management, Financial Services

Goran Oljaca, Director, Engineering and Construction, Water Services Date: April 3, 2019 Meeting Date: April 11, 2019 Subject: Award of Contract Resulting from Tender No. 18-414: Installation of Whalley Main RECOMMENDATION That the GVWD Board: a) approve the award of a contract in the amount of $17,205,000 (exclusive of taxes) to Graham

Infrastructure LP resulting from Tender No. 18-414 for the Installation of Whalley Main; and b) authorize the Commissioner and the Corporate Officer to execute the contract. PURPOSE This report is to advise the GVWD Board of the results of Tender No. 18-414: Installation of Whalley Main and to recommend award of the contract in the amount of $17,205,000 (exclusive of taxes) to Graham Infrastructure LP to enable the Whalley Main project to proceed to completion. BACKGROUND Pursuant to the GVWD Officers and Delegation Bylaw No. 247, 2014 (Bylaw) and the Procurement and Real Property Contracting Authority Policy (Policy), procurement contracts which exceed a value of $5 million require the approval of the GVWD Board of Directors. This report is being brought forward to the Water Committee to consider a recommendation to the GVWD Board to award a contract for the installation of pipe and chambers for the Whalley Main Project. PROJECT DESCRIPTION As shown in the attachment to this report, the Whalley Main project consists of approximately 2.0 km of 1,500mm (60-inch) diameter welded steel water main, one line valve chamber and one crossover valve chamber along 148th Street, between 105 Avenue and 95A Avenue, in the City of Surrey. The new water main is required to meet growth south of the Fraser River and will twin a portion of the existing Whalley Clayton Main which connects the Whalley Reservoir to the Whalley Kennedy Main. Four experienced contractors shortlisted as a result of a Request for Qualifications (RFQ No. 18-093), titled Construction of Three Large Diameter Water Mains – Whalley Main, Port Mann Main No. 2 (South) and Douglas Road Main No. 2 (Vancouver Heights Section), were invited to respond to Tender No. 18-414. The tender closed on March 19, 2019 and the following compliant bids were received:

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Award of Contract Resulting from Tender No. 18-414: Installation of Whalley Main Water Committee Regular Meeting Date: April 11, 2019

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Contractor Total Tender Price (exclusive of taxes) Graham Infrastructure LP $17,205,000 Matcon Civil Constructors Inc. $18,697,900

A third bid was received but was considered non-compliant as it failed to meet the mandatory summer construction schedule requirements of the Tender. Bids were reviewed for completeness by members of the project team in the Water Services Department and Purchasing and Risk Management Division, Financial Services Department. Graham Infrastructure LP has been identified as the lowest compliant bid. This report is being brought forward at this time in order to maintain the project schedule. ALTERNATIVES 1. That the GVWD Board:

a) approve the award of a contract in the amount of $17,205,000 (exclusive of taxes) to Graham Infrastructure LP resulting from Tender No. 18-414 for the Installation of Whalley Main; and

b) authorize the Commissioner and the Corporate Officer to execute the contract. 2. That the GVWD Board terminate Tender No. 18-414: Installation of Whalley Main and direct staff

to report back to the GVWD Board with options for an alternate course of action. FINANCIAL IMPLICATIONS If the GVWD Board approves Alternative 1, a contract will be awarded to Graham Infrastructure LP in the amount of $17,205,000 (exclusive of taxes) to complete the project work. This amount is within the budget allocated for this project. The tender submitted by Graham Infrastructure LP, is the lowest compliant bid. The GVWD Board has the choice not to proceed with Alternative 1, but staff will need further direction in relation to the project. Alternative 2 will result in a delay to the project schedule and impact water supply to the growing municipalities south of the Fraser River. SUMMARY / CONCLUSION Tender No. 18-414 was issued for the Installation of Whalley Main and Graham Infrastructure LP was identified as the lowest compliant bid, which exceeds the engineering estimate for construction by approximately 3%. There is adequate contingency in the overall project budget to accommodate this variance. Based on the evaluation of the tenders, it is recommended that the GVWD Board authorize the Commissioner and the Corporate Officer to award and execute the contract to Graham Infrastructure LP in the amount of $17,205,000 (exclusive of taxes). Attachment Greater Vancouver Water District – Whalley Main 28785385

Water Committee

PORT MANN MAINNo. 2 (SOUTH)

LINEVALVE

CHAMBER

WHALLEY MAIN WHALLEYCLAYTON

MAIN

WHALLEYKENNEDY

MAIN

GREEN TIMBERS PARK

100

AV

E

104

AV

E105A

AV

E

96 A

VE

148 ST

146 ST

150 ST

CROSSOVERCHAMBER

WHALLEYRESERVOIR

AMBDR- Landscape Report.DWG 256mm X 172mm Rev. 03-29-05

GREATER VANCOUVER WATER DISTRICTSCALE: N.T.S.

WHALLEY MAIN

X-C-068/W-3198JM/MAR/19

ATTACHMENT

Water Committee

AutoCAD SHX Text

PORT MANN MAIN No. 2 (SOUTH)

AutoCAD SHX Text

WHALLEY CLAYTON MAIN

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LEGEND

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PROPOSED WHALLEY MAIN

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WHALLEY KENNEDY MAIN

To: Water Committee From: Tim Jervis, General Manager - Water Services Date: March 22, 2019 Meeting Date: April 11, 2019 Subject: Manager’s Report RECOMMENDATION That the Water Committee receive for information the “Manager’s Report” dated March 22, 2019.

1. Water Committee 2019 Work Plan Attached is the updated 2019 Work Plan indicating the status of the Committee’s key priorities together with the quarter that each is expected to be considered by the Committee. Attachment Water Committee 2019 Work Plan 28962456

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Water Committee

ATTACHMENT Water Committee 2019 Work Plan

Priorities

1st Quarter Status 2019 GVWD Capital Projects Complete Water Wagon Program 2018 Results Complete Regional Water Conservation Campaign and Water Regulations Communications 2018 Results Complete Seymour Salmonid Society 2018 Annual Report Complete Regional Assessment of Residential Water Metering In Progress Drinking Water Management Plan Overview Complete GVWD Development Cost Charge Options Review Complete Contract Approvals - Contracts > $5 Million (as applicable) Complete Water Policies (as applicable) In Progress

2nd Quarter Water Supply Forecast & Consumption Update Summer 2019 In Progress 2019 Water Wagon Schedule In Progress Lawn Watering Regulations Communication & Regional Water Conservation Campaign In Progress 2018 GVWD Water Quality Annual Report In Progress LSCR & Watershed Education Program Annual Update In Progress BC Hydro Pole Replacement in Capilano Watershed – Project Update In Progress 30-Year Financial Plan - Water Scenarios In Progress Status of GVWD Capital Expenditures In Progress Contract Approvals – Contracts > $5 Million (as applicable) In Progress Water Policies (as applicable) In Progress

3rd Quarter

Environmental Management System Update In Progress Water Treatment Plant UV Optimization In Progress Reservoir Limnology Program In Progress Regional Assessment of Residential Water Metering In Progress Comprehensive Regional Water System Plan In Progress Water Demand-by-Sector Report In Progress Annual Energy Management Program Update In Progress Contract Approvals – Contracts > $5 Million (as applicable) Pending Water Policies (as applicable) Pending

4th Quarter

Annual Budget and 5-Year Financial Plan – Water Services In Progress Summer 2019 Water Supply Performance Pending Water Wagon Program 2019 Results Pending Regional Water Conservation Campaign and Water Regulations Communications 2019 Results Pending Capilano Hydropower Project Business Case Assessment Pending Status of GVWD Capital Expenditures Pending Coquitlam Intake No. 2 Project Definition Report In Progress Watershed Fisheries Initiatives Annual Update In Progress Contract Approvals – Contracts > $5 Million (as applicable) Pending Water Policies (as applicable) Pending

Water Committee

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