GREATER VANCOUVER REGIONAL DISTRICT INTERGOVERNMENT AND FINANCE COMMITTEE FEDERAL GAS TAX TASK FORCE
REGULAR MEETING
Friday, May 29, 2015 9:00 a.m. 2nd Floor Boardroom, 4330 Kingsway, Burnaby, British Columbia
R E V I S E D A G E N D A1
1. ADOPTION OF THE AGENDA
1.1 May 29, 2015 Regular Meeting Agenda That the Intergovernment and Finance Committee Federal Gas Tax Task Force adopt the agenda for its regular meeting scheduled for May 29, 2015 as circulated.
2. ADOPTION OF THE MINUTES
3. DELEGATIONS
Added 3.1 Councillor Colleen Jordan, City of Burnaby
4. INVITED PRESENTATIONS
5. REPORTS FROM COMMITTEE OR STAFF
5.1 Overview of Gas Tax Funding Verbal Update Designated Speaker: Allan Neilson, General Manager, Planning, Policy and Environment
5.2 Process and Criteria for Approving TransLink Proposals for Funding Verbal Update Designated Speaker: Elisa Campbell, Director, Regional Planning, Planning, Policy and Environment
1 Note: Recommendation is shown under each item, where applicable.
May 29, 2015
Intergovernment and Finance Committee Federal Gas Tax Task Force Regular Agenda May 29, 2015 Agenda Page 2 of 2
5.3 BC Transportation and Financing Authority Transit Assets and Liabilities Act (Bill 2) – Overview and Analysis That the GVRD Board receive for information the report dated May 24, 2015, titled “BC Transportation and Financing Authority Transit Assets and Liabilities Act (Bill 2) – Overview and Analysis”.
5.4 Ownership and Oversight of Regional Transportation Assets Funded through the Greater Vancouver Regional Fund That the GVRD Board: a) Receive for information the report dated May 20, 2015, titled “Ownership and Oversight of Regional Transportation Assets Funded through the Greater Vancouver Regional Fund”; and b) Direct staff to work with UBCM on structuring the Greater Vancouver Regional Fund Agreement to include a ten-year provision on the reinvestment of proceeds that are generated from the disposal of gas tax- funded assets.
6. INFORMATION ITEMS
6.1 Intergovernment and Finance Committee - Federal Gas Tax Task Force Terms of Reference
On Table 6.2 Correspondence re Bill 2 – BC Transportation and Financing Authority Transit Assets and Liabilities Act
7. OTHER BUSINESS
8. BUSINESS ARISING FROM DELEGATIONS
9. RESOLUTION TO CLOSE MEETING Note: The Committee must state by resolution the basis under section 90 of the Community Charter on which the meeting is being closed. If a member wishes to add an item, the basis must be included below.
10. ADJOURNMENT/CONCLUSION That the Intergovernment and Finance Committee Federal Gas Tax Task Force adjourn/conclude its regular meeting of May 29, 2015.
Membership: Louie, Raymond (C) – Vancouver Brodie, Malcolm – Richmond Walton, Richard – North Vancouver District Corrigan, Derek (VC) – Burnaby Clay, Mike – Port Moody
Federal Gas Tax Task Force - On Table Item 3.1 BC TRANSIT ANNUAL REPORT 2013/14 45
and increasing costs associated with employee future The 2013/14 capital program focused primarily on the Message from the Chair benefits. Other cost drivers are regulatory, including replacement of rolling stock, with the acquisition of compliance with increasing environmental, procurement, 108 buses (25 heavy duty, 15 medium duty, and 68 accounting and legal standards. Regardless of these cost light duty); however, implementation work was also pressures, BC Transit’s cost efficiency benchmarks well conducted on other major projects related to rapid below national averages, primarily due to the shared transit and technology. For instance, major construction services business model which achieves significant commenced on the Kelowna RapidBus Phase 2/3 economies of scale. project and will continue into 2014/15. Work continues Organization Overview on BC Transit’s major technology project – the Online BC Transit will continue to leverage the strength of the Communication Upgrade project, which will see the shared services model and achieve greater operational, public website as well as the company’s extranet capital and financial efficiencies as it continues to and intranet launched by 2014/15. Implementation experience significant demand for both public transit and commenced on core scheduling software upgrades, and shared services expertise. substantial planning was completed on an enterprise resource program replacement. Capital Expenditures Accomplishments The Year’s The capital program and its related financing is a major The 2014/15 Capital Plan aligns with the 2014/15 – Consolidated Statement of Financial Position driver. 2016/17 Service Plan. The 2014/15 Capital Plan includes Under the British Columbia Transit Act, the Province projects that are directly managed by BC Transit provides deferred capital contributions based on (“BC Transit Managed Capital Plan”) and expenditures the cost sharing percentages identified in the British related to Vancouver Assets that will be managed by
Columbia Transit Regulation and the local government’s TransLink but capitalized by BC Transit, at the request Performance Report share is funded through debt obtained by BC Transit. of the Province. The Minister of Finance, as BC Transit’s fiscal agent, arranges financing at BC Transit’s request. Debt service The three year capital plan as presented in the 2014/15 costs are recovered from local government partners Service Plan is summarized below: through annual lease fees. (figures in thousands) 2013/14 2014/15 2015/16 Total
Significant expenditures in 2013/14 included: ($) ($) ($) ($) Performance Summary Province – 60,485 41,526 24,707 126,718 ($) Capital Grants Facilities Projects 2,930 Municipalities – Fiscal Agency 36,055 46,300 37,202 119,557 Vehicle Projects 39,386 Loans Other 15,827 882 153 16,862 Rapid Transit Projects 10,979 Subtotal BCT Management Discussion Management Discussion Other (farebox, equipment, IT) 3,590 Managed Capital 112,367 88,708 62,062 263,137 Plan and Analysis Vancouver Assets 22,528 Vancouver Assets 23,916 48,211 31,476 103,603 Total Capital Plan 136,283 136,919 93,538 366,740 Total Capital Expenditures 79,413
2013/14 The BC Transit Managed Capital Plan includes forecast Capital Expenditures expenditures of $112.4 million in 2014/15. The Managed Facilities Capital Plan is primarily focused on the replacement Projects 4% of core assets required to maintain the existing transit Financial Report system. Over the next five years, 37 per cent of the fleet Vancouver Assets will be at the end of useful life and require replacement. 28% Technical infrastructure investment is also necessary, especially with regards to core financial systems, data Vehicle Projects collection methodologies, and fleet management 50% capabilities. Replacement is identified as the primary Other driver for 64 per cent of proposed spending over the next
(farebox, Appendices equipment, IT) five years. Expansion will be limited, with projects such 4% as Kelowna RapidBus Phase 2/3 and a modest expansion Rapid Transit bus program driving the majority of expenditures. Projects 14% 76 BC TRANSIT ANNUAL REPORT 2013/14
BRITISH COLUMBIA TRANSIT Notes to Consolidated Financial Statements (in thousands of dollars)
Year ended March 31, 2014
9. Tangible capital assets under lease (continued):
Balance, Balance, March 31, March 31, Net book value 2013 2014
SkyTrain $ 611,868 $ 604,946 West Coast Express 54,050 49,755 Capital projects in progress 6,758 25,493 Total $ 672,676 $ 680,194
Balance, Balance, March 31, March 31, Cost 2012 Additions Disposals 2013
SkyTrain $ 1,204,098 $ - $ (50) $ 1,204,048 West Coast Express 128,848 - - 128,848 Capital projects in progress - 6,758 - 6,758 Total $ 1,332,946 $ 6,758 $ (50) $ 1,339,654
Balance, Balance, March 31, Amortization March 31, Accumulated amortization 2012 Disposals expense 2013
SkyTrain $ 581,708 $ - $ 10,472 $ 592,180 West Coast Express 70,501 - 4,297 74,798 Capital projects in progress - - - - Total $ 652,209 $ - $ 14,769 $ 666,978
Balance, Balance, March 31, March 31, Net book value 2012 2013
SkyTrain $ 622,390 $ 611,868 West Coast Express 58,347 54,050 Capital projects in progress - 6,758 Total $ 680,737 $ 672,676
10. Victoria Regional Transit Commission: BC Transit holds funds in trust on behalf of the Victoria Regional Transit Commission. These funds are not included in the consolidated statement of financial position. The cash held in trust and transactions during the year are as follows:
20 5.3
To: Intergovernment and Finance Committee - Federal Gas Tax Task Force
From: Allan Neilson, General Manager, Planning, Policy and Environment
Date: May 24, 2015 Meeting Date: May 29, 2015
Subject: BC Transportation and Financing Authority Transit Assets and Liabilities Act (Bill 2) – Overview and Analysis
RECOMMENDATION That the GVRD Board receive for information the report dated May 24, 2015, titled “BC Transportation and Financing Authority Transit Assets and Liabilities Act (Bill 2) – Overview and Analysis”.
PURPOSE This report provides an overview and analysis of the BC Transportation and Financing Authority Transit Assets and Liabilities Act (Attachment), a provincial law that came into force on May 21, 2015. The report explores the implications of the Act for TransLink assets, including those that were acquired in whole or in part using regional gas tax funds.
BACKGROUND At the April 15, 2015 meeting of the Metro Vancouver Performance and Procurement Committee, discussion occurred on the BC Transportation and Financing Authority Transit Assets and Liabilities Act (Bill 2) and its implications related to the ownership of TransLink assets, in particular assets that were purchased in whole or in part by TransLink using regional gas tax funds. As a result of the discussion, the Committee passed the following resolution:
“That the Performance and Procurement Committee direct staff to report back to the appropriate standing committee with an analysis of the BC Transportation and Financing Authority Transit Assets and Liabilities Act (Bill 2).”
Metro Vancouver’s Federal Gas Tax Task Force is the appropriate standing committee to examine any questions or concerns related to the legislation.
OVERVIEW OF THE LEGISLATION On February 11, 2015, the Minister of Transportation and Infrastructure introduced the BC Transportation and Financing Authority Transit Assets and Liabilities Act (Bill 2) into the Legislative Assembly for First Reading. Bill 2 received Royal Assent on May 14, 2015 and came into force seven days later on May 21, 2015.
Purpose of the Act The Act is characterized by the Province as a streamlining tool to consolidate provincially-owned public transit assets within Metro Vancouver – that is, within TransLink’s service area – under the BC Transportation Financing Authority (BCTFA), a provincial crown corporation that exists for the purposes of acquiring, building and holding transportation infrastructure on behalf of the Province. FGT - 3 BC Transportation and Financing Authority Transit Assets and Liabilities Act (Bill 2) – Overview and Analysis Federal Gas Tax Task Force Meeting Date: May 29, 2015 Page 2 of 5
At present, the provincially-owned transit assets in Metro Vancouver are held by two other provincial crown corporations, namely Rapid Transit Project 2000 (RTP 2000) and BC Transit.
According to the Minister, the impetus for the new legislation was the recent core services review undertaken by the provincial government. In that exercise the Province identified an opportunity to dissolve RPT 2000 and consolidate its holdings under the BCTFA. RPT 2000 was incorporated specifically to study, design and construct the Millennium Line, a project that was fully completed in early 2006. In the same review the Province identified the opportunity to align BC Transit’s holdings with its service responsibilities. When the Greater Vancouver Transportation Authority (later TransLink) began operations in 1999, responsibility for the planning, development and operation of public transit services in Metro Vancouver was transferred from BC Transit to the new Authority. The BC Transportation and Financing Authority Transit Assets and Liabilities Act will transfer all of BC Transit’s assets within Metro Vancouver to the BCTFA to align BC Transit’s asset ownership with its service jurisdiction.
The consolidation of assets under one corporation – BCTFA – is expected to result in some limited administration savings, both in the management of assets and in the negotiation and oversight of operating leases. Savings are not anticipated, however, to be significant.
Transfer of Assets The Province currently holds significant parts of the Metro Vancouver regional transit system in RPT 2000 and BC Transit. The division of existing assets between the corporations is set out in general terms as follows:
RPT 2000 holds the Province’s Millennium Line assets, including all tracks and bridges, all 11 stations and related station equipment, 40 skytrain cars, and all property and property rights (i.e., leases, licenses, access agreements and rights-of-way) required for the line. The total book value of the RPT 2000 assets at the 2014 fiscal year-end was $805 million. Ownership of the assets has always rested with RPT 2000.
BC Transit holds the Province’s Expo Line assets, including all guideways, tracks, tunnels and bridges, an operations and maintenance centre, all 20 stations and related equipment, and all associated property and property rights. BC Transit also holds the Province’s assets on the West Coast Express, including all eight stations and related equipment, five locomotives, and all property and property rights required to operate the service. The total book value of the BC Transit assets within Metro Vancouver at the 2014 fiscal year-end was $680 million.
Under the new Act, all of these assets will be transferred to the BCTFA.
Assets Not Affected The Act neither mentions nor applies to assets associated with the Evergreen Extension, the Canada Line, the Seabus service or the region’s bus network. Provincially-owned assets along the Evergreen Line are being developed through, and are held already by, the BCTFA. The Canada Line, the Seabus service and the bus network are owned by TransLink. The assets associated with these components of the regional system, along with portions of the Evergreen Extension that are also owned by TransLink, will remain under the ownership of TransLink.
FGT - 4 BC Transportation and Financing Authority Transit Assets and Liabilities Act (Bill 2) – Overview and Analysis Federal Gas Tax Task Force Meeting Date: May 29, 2015 Page 3 of 5
ANALYSIS OF THE LEGISLATION The BC Transportation and Financing Authority Transit Assets and Liabilities Act, as explained, is characterized as a streamlining tool to consolidate provincially-owned public transit assets within Metro Vancouver under the BCTFA. The Act, as noted, does not apply to assets associated with the key components of the regional system that are not held by RPT 2000 or BC Transit. TransLink’s ownership of assets in these other parts of the system is, therefore, not affected by the Act. But what about the investments made to date by TransLink in the rapid transit and rail lines held by RPT 2000 and BC Transit – that is, the Millennium and Expo Lines, and the West Coast Express?
TransLink Investments The Province paid 100% of the initial planning and construction for both the Expo and Millennium Lines. The Province cost-shared with the federal government in the initial development of the West Coast Express. The Province participates in funding major upgrades to these parts of the regional system on an ongoing basis; TransLink also, however, contributes to the cost of new improvements to these lines in its capacity as the operator of the entire integrated system. In past years, TransLink has made various investments to replace infrastructure components, enhance operations, or meet other system goals. Included in these improvements were the purchase of 20 skytrain cars in the early 2000s, and a contribution of $81.6 million to the cost of Millennium Line upgrades in 2008.
All of TransLink’s investments in the Millennium and Expo Lines, as well as those in the West Coast Express, are structured in a way that provides TransLink with whole assets (e.g., an entire skytrain car, a discrete section of track, an entire facility) that can be owned separately from the provincial infrastructure. This approach allows TransLink to capitalize its improvements and record them in its financial statements as TransLink’s own assets from which the organization generates revenue. Recording them in this way is critical as it enables TransLink to borrow funds for capital projects in the market (TransLink is responsible for its own capital financing).
TransLink’s approach to capitalizing its improvements to the provincially-owned parts of the system applies irrespective of the crown corporation that holds the provincial lines. The transfer of provincial assets from one crown corporation to another – that is, from RPT 2000 and BC Transit to the BCTFA – will not, in and of itself, affect TransLink’s ownership over its improvements to the assets. TransLink’s ownership would only change if the organization lost control over the operation and maintenance of the provincially-owned lines. Control has been assigned to TransLink through operating agreements with the Province for the Millennium Line, Expo Line and West Coast Express.
TransLink would only lose control over operations and maintenance if the Province chose to not renew the operating leases upon their expiration. In such an event, however, the Province would be required to reimburse TransLink the depreciated value of all improvements made in past years by the TransLink. This requirement is identified in the capitalized improvement agreements between the Province and TransLink that were developed pursuant to the operating agreements.
Implications for Regional Gas Tax Funds Past investments by TransLink in provincially-held components of the transit system have been made, in part, using TransLink’s own revenues. TransLink has also, however, made use of monies provided by Metro Vancouver under the former 2005-2014 federal gas tax agreement. All of the regional gas
FGT - 5 BC Transportation and Financing Authority Transit Assets and Liabilities Act (Bill 2) – Overview and Analysis Federal Gas Tax Task Force Meeting Date: May 29, 2015 Page 4 of 5
tax funds spent by TransLink towards the improvement of provincial assets are reflected in TransLink’s financial statements in the same fashion as TransLink’s own revenues, namely as capitalized improvements. The ownership status of TransLink’s capitalized improvements will remain unchanged, regardless of how they were funded, as a result of the BC Transportation and Financing Authority Transit Assets and Liabilities Act.
It should be noted that the current operating leases with TransLink for the Expo Line and West Coast Express expire in January, 2018; the lease for the Millennium Line expires in 2017. Negotiations are underway between the Province and TransLink to renew the leases; the negotiations are expected to conclude without significant changes in terms. There may be an effort by the Province to consolidate the different leases in some way in the hope of realizing savings in the management of the leases (the prospect for administrative savings was identified by the Province as part of the rationale behind the new legislation). In the event that the leases were not renewed, the Province would be required, as set out in the separate capitalized improvement agreements, to pay TransLink the depreciated value of TransLink’s improvements. The reimbursements to TransLink would include in some cases gas tax funds that were used originally to help pay for the improvements.
Under the (anticipated) terms of the Greater Vancouver Regional Fund Agreement between TransLink and the UBCM, gas tax funds that are reimbursed to TransLink within five years of being used would need to be reinvested by TransLink into regional transportation projects that have been approved by the GVRD Board. The same constraint would not apply to reimbursed gas tax funds that were invested by TransLink prior to the five year period.
It needs to be remembered that the reimbursement of depreciated capitalized improvements, with or without a gas tax funding component, would only occur in the event that the Province chose not to renew the operating leases for the Millennium Line, Expo Line and West Coast Express. While not impossible, it is considered unlikely that the Province would take this course of action. Any decision to not renew the lease agreements would change the fundamental purpose of TransLink as the special-purpose agency created to operate and maintain the regional transit system.
ALTERNATIVES 1. That the GVRD Board receive for information the report dated May 24, 2015, titled “BC Transportation and Financing Authority Transit Assets and Liabilities Act (Bill 2) – Overview and Analysis”. 2. That the Board provide alternative direction.
FINANCIAL IMPLICATIONS There are no costs associated directly with the report; it is provided to the Task Force as an information item. Based on the analysis in the report, there are no expected financial implications associated with the Province’s new legislation for the regional gas tax funds that have been used by TransLink, along with its own revenues, to improve the provincially-owned lines in the regional transit system. Implications for depreciated gas tax funds, reimbursed to TransLink, would arise only in the event that the Province chose to not renew its operating leases with TransLink. This scenario is considered unlikely.
FGT - 6 BC Transportation and Financing Authority Transit Assets and Liabilities Act (Bill 2) – Overview and Analysis Federal Gas Tax Task Force Meeting Date: May 29, 2015 Page 5 of 5
SUMMARY / CONCLUSION At its April 15, 2015 meeting, the Performance and Procurement Committee directed staff to report back to the appropriate standing committee with an analysis of the BC Transportation and Financing Authority Transit Assets and Liabilities Act (Bill 2). Metro Vancouver’s Federal Gas Tax Task Force is the appropriate standing committee to examine any questions or concerns related to the legislation.
The Act sets out to consolidate provincially-owned public transit assets within Metro Vancouver under the BC Transportation Financing Authority. At present, the provincially-owned transit assets are held by two other provincial crown corporations, namely Rapid Transit Project 2000 (RTP 2000) and BC Transit. RPT 2000 holds the Province’s Millennium Line assets, with a total book value of $805 million. BC Transit holds the Province’s Expo Line assets, as well as the Province’s assets on the West Coast Express. The total book value for these BC Transit assets is $680 million. The Act neither mentions nor applies to assets associated with the Evergreen Extension, the Canada Line, the Seabus service or the region’s bus network.
In its capacity as operator of the regional transit system, TransLink has contributed in past years to the cost of improvements to the Millennium Line, Expo Line and West Coast Express. TransLink’s approach to capitalizing its improvements, however, effectively ensures that the improvements will remain on TransLink’s books as TransLink assets after the implementation of the Province’s new legislation. The transfer under the new legislation of provincial assets from one crown corporation to another – that is, from RPT 2000 and BC Transit to the BCTFA – does not affect TransLink’s ownership over its improvements, as long as TransLink retains control over the operation and maintenance of the provincially-owned lines. Control has been assigned to TransLink through operating agreements with the Province. In the event that Province chose to not renew the operating leases upon their expiration, the Province would be required to reimburse TransLink the depreciated value of the TransLink-funded improvements.
The investments by TransLink in provincially-held components of the transit system in past years have been made, in part, using monies provided by Metro Vancouver under the former 2005-2014 federal gas tax agreement. All of the regional gas tax funds spent by TransLink towards the improvement of provincial assets are reflected in TransLink’s financial statements in the same fashion as TransLink’s own revenues – that is, as capitalized improvements. The status of TransLink’s capitalized improvements as assets of TransLink will remain unchanged, regardless of the source of funding, as a result of the BC Transportation and Financing Authority Transit Assets and Liabilities Act.
Attachments: BC Transportation and Financing Authority Transit Assets and Liabilities Act
11409777
FGT - 7 ATTACHMENT
Home > Documents and Proceedings > 4th Session, 40th Parliament > Bills > Bill 2 – 2015: BC Transportation Financing Authority Transit Assets and Liabilities Act
2015 Legislative Session: 4th Session, 40th Parliament THIRD READING
The following electronic version is for informational purposes only. The printed version remains the official version.
Certified correct as passed Third Reading on the 14th day of April, 2015 Craig James, Clerk of the House
HONOURABLE TODD STONE MINISTER OF TRANSPORTATION AND INFRASTRUCTURE BILL 2 – 2015 BC TRANSPORTATION FINANCING AUTHORITY TRANSIT ASSETS AND LIABILITIES ACT
Contents 1 Definitions 2 Transfer from RTP 3 Transfer from BC Transit 4 Vesting and assumption 5 Special lease continued 6 Effect of transfer 7 References in records 8 Dealing with transferred assets and liabilities 9 Delivery of BC Transit records 10 Power to make regulations 11 Later transfers 12-19 Consequential Amendments 20 Commencement
HER MAJESTY, by and with the advice and consent of the Legislative Assembly of the Province of British Columbia, enacts as follows:
Definitions 1 In this Act:
"asset" includes a right and property;
"BC Transit" means British Columbia Transit continued under section 2 (1) of the British Columbia Transit Act;
FGT - 8 "liability" includes an obligation;
"record" includes an authorization or other instrument issued by a regulatory body;
"regional transportation system" has the same meaning as in the South Coast British Columbia Transportation Authority Act;
"RTP" means Rapid Transit Project 2000 Ltd., a company under the Business Corporations Act;
"TFA" means the BC Transportation Financing Authority continued under section 25 (1) of the Transportation Act;
"transportation service region" has the same meaning as in the South Coast British Columbia Transportation Authority Act.
Transfer from RTP 2 All the assets and liabilities of RTP are transferred to the TFA.
Transfer from BC Transit 3 (1) The following assets and liabilities of BC Transit are transferred to the TFA:
(a) assets that are located in the transportation service region; (b) assets that form part of or are held for the purposes of the regional transportation system; (c) assets that are used by the South Coast British Columbia Transportation Authority or its subsidiaries as defined in the South Coast British Columbia Transportation Authority Act; (d) liabilities that are related to the assets that are transferred under this subsection to the TFA. (2) The assets and liabilities transferred under subsection (1) do not include any asset or liability excluded (a) by an order made under subsection (4) of this section, or (b) by a regulation made under section 10 (4). (3) The assets and liabilities transferred under subsection (1) include any asset or liability included by a regulation made under section 10 (4).
FGT - 9 (4) The minister may, by order made after this Act receives Royal Assent and before this Act comes into force, exclude from the transfer under subsection (1) any asset or liability of BC Transit.
Vesting and assumption 4 (1) An asset that is transferred under this Act to the TFA is also vested in the TFA, and a liability that is transferred under this Act to the TFA is also assumed by the TFA.
(2) Any reference in this Act or the regulations to a transfer of an asset is also a reference to the vesting of the asset, and any reference in this Act or the regulations to a transfer of a liability is also a reference to the assumption of the liability.
Special lease continued 5 The lease granted under Order in Council 399/99, as amended by Orders in Council 1358/99 and 107/2003, to the Greater Vancouver Transportation Authority, now known as the South Coast British Columbia Transportation Authority,
(a) is continued, despite the repeal of section 38 (8) of the South Coast British Columbia Transportation Authority Act, as a lease between the TFA and the South Coast British Columbia Transportation Authority, and (b) may be amended, renewed or terminated without the approval of the Lieutenant Governor in Council.
Effect of transfer 6 (1) Despite any other enactment, the transfer under this Act of assets and liabilities takes effect
(a) without the execution or issue of any record, (b) without any registration or filing of this Act or any other record in or with any registry, office or court, (c) despite any prohibition on all or any part of the transfer, (d) whether or not a duplicate certificate of indefeasible title has been issued by the registrar under the Land Title Act, and (e) despite any condition, including the absence of any consent or approval, that is or may be required for all or any part of the transfer.
FGT - 10 (2) Despite any provision to the contrary in a record, the transfer under this Act to the TFA of an asset or liability does not constitute a breach or contravention of, or an event of default under, the record and, without limiting this, does not entitle any person who has an interest in the asset or liability to claim any damages, compensation, penalty, indemnity or other remedy.
References in records 7 (1) A reference to RTP in any record that creates, evidences or otherwise relates to an asset or liability that is transferred under this Act to the TFA is deemed to be a reference to the TFA.
(2) A reference to BC Transit in any record that creates, evidences or otherwise relates to an asset or liability that is transferred under this Act to the TFA is, (a) if the whole of the asset or liability is transferred, deemed to be a reference to the TFA, and (b) if part of the asset or liability is transferred, deemed to be a reference to the TFA in respect of the part transferred.
Dealing with transferred assets and liabilities 8 (1) In any record that deals with an asset or liability transferred under this Act, it is sufficient for all purposes to cite this Act as having effected the transfer to the TFA.
(2) If an asset or liability transferred under this Act to the TFA is registered or recorded in the name of RTP or BC Transit, the TFA may, in its own name, (a) effect a transfer, charge, encumbrance or dealing with the asset or liability, and (b) execute any record required to give effect to the transfer, charge, encumbrance or dealing. (3) An official (a) who has authority over a registry or other office, including, without limitation, the personal property registry and a land title office, in which title to or an interest in an asset or liability is registered or recorded, and
(b) who receives a record, referred to in subsection (2), executed by the TFA
FGT - 11 must give the record the same effect as if it had been executed by RTP or BC Transit, as the case may be.
Delivery of BC Transit records 9 (1) This section applies to records in the custody or under the control of BC Transit that relate to
(a) the assets and liabilities transferred under this Act to the TFA, or
(b) the operation and maintenance of a rail transportation system, as defined in the South Coast British Columbia Transportation Authority Act, in the transportation service region.
(2) BC Transit must deliver its records or a copy of them to the TFA in accordance with the terms established by the TFA.
Power to make regulations 10 (1) The Lieutenant Governor in Council may make regulations referred to in section 41 of the Interpretation Act.
(2) Without limiting subsection (1), the Lieutenant Governor in Council may make regulations as follows: (a) remedying any difficulty encountered in the transfer under this Act of assets or liabilities; (b) respecting any other matter or thing that the Lieutenant Governor in Council considers necessary or advisable to carry out the intent of this Act. (3) For 3 years after the date this Act comes into force, a regulation made under subsection (2) may be made retroactive to a date not earlier than the date this Act comes into force and, if made retroactive, is deemed to have come into force on the date specified in the regulation. (4) Without limiting subsection (1), the Lieutenant Governor in Council may, for 3 years after the date this Act comes into force, make regulations excluding from or including in the transfer under section 3 (1) any asset or liability of BC Transit. (5) A regulation made under subsection (4) is retroactive to and is deemed to have come into force on the date this Act comes into force.
(6) Despite the retroactive effect referred to in subsection (5), an asset or liability that is excluded or included by a regulation made under
FGT - 12 subsection (4) is subject to any rights acquired by a person after the date this Act comes into force.
(7) In making a regulation under this section, the Lieutenant Governor in Council may make different regulations for different assets and liabilities or for different classes of assets and liabilities.
Later transfers 11 (1) After the date this Act comes into force, if the minister considers it necessary or advisable for transportation purposes, the minister may, by order, transfer, with or without conditions,
(a) from the TFA to BC Transit any asset or liability that was transferred under this Act from BC Transit to the TFA, or
(b) from BC Transit to the TFA any asset or liability. (2) The provisions of this Act that apply to an asset or liability that is transferred under section 3 apply, with the necessary modifications, to a transfer under subsection (1) of this section. (3) The authority to make an order under subsection (1) ends 3 years after the date this Act comes into force.
Consequential Amendments
British Columbia Transit Act
12 Section 1 (1) of the British Columbia Transit Act, R.S.B.C. 1996, c. 38, is amended by repealing the definitions of "ancillary Rapid Transit Project works" and "Rapid Transit Project".
13 Section 8 (9) is repealed and the following substituted:
(9) Despite any provision of this Act or any other enactment, the authority may own, acquire and dispose of property that is located in, or is being employed in, the transportation service region as defined in the South Coast British Columbia Transportation Authority Act.
14 Sections 8.1 and 9 are repealed and the following substituted:
Expropriation of property 9 Subject to the Expropriation Act, the authority may expropriate any land that the authority considers necessary for its purposes.
Financial Information Act
FGT - 13 15 Schedule 2 of the Financial Information Act, R.S.B.C. 1996, c. 140, is amended by striking out "Rapid Transit Project 2000 Ltd."
South Coast British Columbia Transportation Authority Act
16 Section 38 of the South Coast British Columbia Transportation Authority Act, S.B.C. 1998, c. 30, is amended
(a) by repealing subsection (8), and
(b) in subsection (10) by adding "and" at the end of paragraph (b) and by repealing paragraphs (c) and (d).
Transportation Act
17 Section 1 of the Transportation Act, S.B.C. 2004, c. 44, is amended
(a) in the definition of "provincial public undertaking" by adding the following paragraph: (a.2) transit systems, , and (b) by adding the following definition:
"transit system" means a system for the transportation of passengers and goods and any works or undertakings ancillary to the system, including, without limiting the ancillary works or undertakings,
(a) links to private or public transportation services, including stops, stands, lanes, loops and parking for buses and taxis, (b) parking facilities, (c) areas in stations for the provision of services and amenities to passengers, (d) employee facilities, (e) walkways, overpasses and other means of ingress to and egress from stations and vehicles, (f) undertakings for the relocation, enhancement and upgrading of utility services and related poles, wires, pipes and apparatus, (g) adjacent roadway enhancements, (h) power distribution systems, and (i) operating facilities and facilities for storage, maintenance and repair of vehicles, parts, signage and related items; .
FGT - 14 18 Section 27 is amended
(a) in subsection (3) by adding the following paragraph:
(g.1) exercise within a municipality in or through which a transit system is acquired, constructed, held, improved or operated, or caused to be constructed, improved or operated, all the powers that a municipality authorized to lay out, construct and maintain highways may exercise in carrying out that authorization; , and
(b) by adding the following subsections:
(3.1) The authority has, for the purposes of acquiring, constructing, holding, improving or operating a transit system on a highway in a municipality, or causing the transit system to be constructed, improved or operated, (a) all the rights, powers and advantages conferred by any enactment on the municipality with respect to the highway, and (b) the right to enjoy and exercise any right of way, easement or licence owned, enjoyed or exercised by the municipality in connection with or for the purposes of its operation of the highway, and the authority may exercise those rights, powers and advantages and enjoy and exercise that right of way, easement or licence in the same manner and to the same extent as the municipality might have done if the highway had not become part of a transit system. (3.2) If a municipality or proposed operator fails or refuses to enter into an agreement that the authority considers necessary for the purposes of a transit system, the Lieutenant Governor in Council may, on the recommendation of the authority, establish the contents of the agreement and order that the agreement be binding on the parties named in it. (3.3) Despite any other Act, on the making of an order under subsection (3.2), the persons named in the agreement as parties are bound by that agreement.
19 The following section is added:
Power to exempt 39.1 (1) For the purpose of the construction, acquisition or operation of a transit system, the Lieutenant Governor in Council may, by order,
FGT - 15 establish tax exemptions under any or all of the Acts referred to in subsection (5) in respect of land or improvements, or both, or a portion of land or improvements, or both.
(2) A tax exemption under subsection (1) may be made with respect to land or improvements, or both, or a portion of land or improvements, or both, that is
(a) described in the order, or
(b) within a category described in the order.
(3) Subject to subsection (4), a tax exemption under subsection (1) applies to the extent, for the period and subject to the terms and conditions specified by the Lieutenant Governor in Council. (4) A tax exemption under subsection (1) applies only to the extent that the land or improvements, or both, or the portion of land or improvements, or both, is held, used or occupied for the purpose set out in that subsection. (5) A tax exemption under subsection (1) may be provided under any or all of the following Acts: (a) the Assessment Authority Act; (b) the Community Charter; (c) the Hospital District Act; (d) the Local Government Act; (e) the Municipal Finance Authority Act; (f) the Police Act; (g) the School Act; (h) the South Coast British Columbia Transportation Authority Act; (i) the Vancouver Charter.
Commencement 20 This Act comes into force on the date that is 7 days after the date of Royal Assent.
Copyright (c) Queen’s Printer, Victoria, British Columbia, Canada
FGT - 16 5.4
To: Intergovernment and Finance Committee – Federal Gas Tax Task Force
From: Allan Neilson, General Manager Elisa Campbell, Director of Regional Planning Planning, Policy and Environment Department
Date: May 25, 2015 Meeting Date: May 29, 2015
Subject: Ownership and Oversight of Regional Transportation Assets Funded through the Greater Vancouver Regional Fund
RECOMMENDATION That the GVRD Board: a) Receive for information the report dated May 20, 2015, titled “Ownership and Oversight of Regional Transportation Assets Funded through the Greater Vancouver Regional Fund”; and b) Direct staff to work with UBCM on structuring the Greater Vancouver Regional Fund Agreement to include a ten-year provision on the reinvestment of proceeds that are generated from the disposal of gas tax-funded assets.
PURPOSE This report provides information on the feasibility and advisability of Metro Vancouver assuming ownership of assets purchased using regional gas tax funds, through the Greater Vancouver Regional Fund. The report also explores other mechanisms for the GVRD Board to consider in addressing its concerns related to the treatment of gas tax-funded assets.
BACKGROUND At its meeting of June 27, 2014, the GVRD Board made the following resolution:
“WHEREAS almost one billion dollars have flowed through Metro Vancouver to TransLink over the past 10 years, via the transfer of Gas Tax Funds; and WHEREAS the capital assets purchased or constructed over that time are now the property of an entity over which Metro Vancouver has no decision making authority; and WHEREAS TransLink could, after a certain time, sell or transfer those assets, (purchased with money designated for municipal infrastructure), without the consent of Metro Vancouver; and WHEREAS the ownership of these transit assets, could be considered to belong to Metro Vancouver; THEREFORE BE IT RESOLVED, that the Board direct staff to report to the Board, through the Transportation Committee, on the advisability and feasibility of maintaining ownership of all assets purchased via the gas tax funds, or its alternative, as a part of the next agreement on the use of the funding.”
The Transportation Committee mentioned in the resolution did not meet in the second half of 2014 to address the GVRD Board resolution, and was subsequently dissolved prior to the end of the year.
FGT - 17 Ownership and Oversight of Regional Transportation Assets Funded by the Greater Vancouver Regional Fund Federal Gas Tax Task Force Meeting Date: May 29, 2015 Page 2 of 7
In January 2015, the Chair of the GVRD Board established the Federal Gas Tax Task Force as a standing committee with responsibility over the administration of the Greater Vancouver Regional Fund (GVRF). This report is presented to the GVRD Board through the Federal Gas Tax Task Force.
FEDERAL GAS TAX FUND Since 2005 the Government of Canada has transferred funds derived from federal gas taxes to Canadian municipalities as a source of predictable, long-term funding for local infrastructure. The original ten-year agreement on the transfer of federal gas tax funds to British Columbia, the Agreement on the Transfer of Federal Gas Tax Revenues Under the New Deal for Cities and Communities, 2005-2015 (First Agreement), was signed in that year by Canada, British Columbia and the Union of British Columbia Municipalities (UBCM) on behalf of local government. At the time, the GVRD Board requested that 100% of the applicable allocation be made available for regional transportation investments. This allocation of federal gas tax funds to transportation also occurred in other large metropolitan areas across the country. Indeed, over the term of the First Agreement, over 90% of gas tax funding for Canada’s six largest cities was directed toward regional transportation investments, including public transit.
A renewed ten-year gas tax agreement, the Administrative Agreement on Federal Gas Tax Fund in British Columbia (2014 Agreement), replaced the First Agreement in April, 2014. The new 2014 Agreement extends the Gas Tax Fund to 2023, and provides the framework for the delivery of federal funding to BC municipalities to help build and revitalize public infrastructure. There are three programs identified in the 2014 Agreement: the Community Works Fund, the Strategic Priorities Fund, and the Greater Vancouver Regional Fund.
Greater Vancouver Regional Fund The Greater Vancouver Regional Fund (GVRF) pools 95% of Metro Vancouver member municipalities’ per capita allocation of gas tax funds to support eligible regional transportation projects proposed and delivered by TransLink. The GVRF is anticipated to deliver $652 million over its first five years to these projects, and a slightly larger amount over the subsequent five year period (the fund is indexed at 2% per annum).
The 2014 Agreement identifies how the funds are to be delivered, and provides high-level criteria to identify eligible projects and expenditures. The implementation of the agreement is monitored in BC by a Partnership Committee co-chaired by at least three members representing the Governments of Canada and British Columbia, and the Union of BC Municipalities. The Partnership Committee is responsible, among other tasks, for resolving disputes, developing a methodology for measuring incremental spending, and developing a methodology for reporting on performance.
A significant feature of the 2014 Agreement that differentiates it from the First Agreement concerns the role of the GVRD Board in approving eligible projects for GVRF funding. Under the new agreement it is the GVRD Board, rather than the previously structured UBCM Management Committee, that must approve all eligible projects proposed by TransLink for funding. Under the new agreement, UBCM may not transfer monies to TransLink for eligible projects until it has received an approved list from the GVRD Board of projects that are eligible for funding through the GVRF.
FGT - 18 Ownership and Oversight of Regional Transportation Assets Funded by the Greater Vancouver Regional Fund Federal Gas Tax Task Force Meeting Date: May 29, 2015 Page 3 of 7
A detailed process and specific criteria for evaluating projects proposed for funding, and for approving expenditures from the GVRF, will be presented separately to the Federal Gas Tax Task Force for consideration.
METRO VANCOUVER’S CONCERNS Since the inception of the Gas Tax Fund, the vast majority of funds earmarked for the Metro Vancouver region have been dedicated to regional transportation projects. In 2005, when the GVRD Board agreed to direct the bulk of the region’s funds to regional transportation projects under TransLink, the Board enjoyed direct authority and control over TransLink’s strategic and financial programs. Upon the enactment of the South Coast British Columbia Transportation Authority Act in 2008, however, the Board lost this control and, as a result, effectively lost the authority to directly approve gas tax-funded projects. The 2014 Agreement, as noted, restores the earlier balance of power to some degree by giving explicit authority to approve funding for eligible regional transportation projects that are proposed by TransLink. The new agreement, however, does not restore to Metro Vancouver the decision-making authority it formerly had over TransLink itself.
It is in this context that the GVRD Board resolution of June 27, 2014 was made. Of specific importance in the resolution are the following two concerns: - The assets acquired using gas tax funds are owned by an entity over which Metro Vancouver has no decision-making authority; and - The assets acquired using regional gas tax funds could potentially be sold or transferred without the consent of Metro Vancouver.
MECHANISMS FOR ADDRESSING METRO VANCOUVER’S CONCERNS Ownership of Assets As identified in the June 27, 2014 Board resolution, one option to consider in addressing the Board’s concerns is for Metro Vancouver to take ownership of the transportation assets purchased using regional gas tax funding. The idea of assuming ownership is not anticipated in the new 2014 Agreement; nor, however, is the idea dismissed. Indeed, it would appear that ownership as a condition of funding could be negotiated in the development of the GVRF Agreement that must be created between UBCM and TransLink in order to implement the 2014 Agreement in Metro Vancouver. UBCM staff are working closely with staff from Metro Vancouver in the development of this agreement.
Ownership by Metro Vancouver of regional gas tax-funded assets may be feasible under the terms of GVRF Agreement; but is it advisable? In staff’s view, ownership is not advisable either for Metro Vancouver or the regional transit system. Consider the following points:
First, gas tax funds are generally used in combination with other sources of funding to offset the cost of a package of improvements. Other funding sources include TransLink’s own operating revenues, provincial government contributions and funds borrowed by TransLink. To enable Metro Vancouver to assume ownership of specific assets, the existing method of combining funds from different sources would need to be changed. Public Sector Accounting Principles do not allow ownership of a tangible capital asset to be divided among different parties; ownership must instead rest with one body. Regional gas tax funds would need to be directed, therefore, toward the purchase of separate, discrete assets, rather than against a broader capital program.
FGT - 19 Ownership and Oversight of Regional Transportation Assets Funded by the Greater Vancouver Regional Fund Federal Gas Tax Task Force Meeting Date: May 29, 2015 Page 4 of 7
To be sure, this new approach to the application of gas tax funds could be taken. The change, however, could negatively impact TransLink’s ability to leverage contributions from other sources. The change could also limit TransLink’s flexibility in its planning of improvements to the regional transportation system.
Second, TransLink’s ownership of assets, including those acquired using regional gas tax funds, is what enables the organization to borrow for its infrastructure needs in the open market. TransLink’s strong borrowing power gives the agency access to the funds it requires, over and above regional gas tax funding, to fulfill its mandate as the operator of Metro Vancouver’s extensive regional transit system. A funding condition that resulted in ownership resting with Metro Vancouver would dilute TransLink’s borrowing power.
Third, as owner of gas tax-funded assets, Metro Vancouver would take on added responsibilities, including the responsibility to maintain the assets. Metro Vancouver would almost certainly fulfill its new responsibility using operating contracts with TransLink – it is TransLink, not Metro Vancouver, after all that has the expertise and experience necessary for the task. As owner, however, Metro Vancouver would also be forced to investigate other infrastructure needs ranging from insurance and risk management, to asset disposal and replacement. Even with strong contracts in place to make use of others’ expertise, Metro Vancouver would face new challenges – anticipated and unforeseen – in its role as owner. Metro Vancouver would also be drawn into a new line of non-core business.
Reliance on Mayors’ Council Amendments to South Coast British Columbia Transportation Authority Act in 2014 resulted in changes to the role and responsibilities of the Mayors’ Council on Regional Transportation. These changes served to strengthen the role of the region’s mayors in the decision-making process that deals with TransLink’s assets and investments. As a result of the changes, the Mayors’ Council must approve TransLink’s ten-year investment plan. This plan, which is updated every three years, sets out all of the assets and projects that are identified for acquisition and disposal.
The Mayors’ Council differs in composition and size from the Metro Vancouver Board. The two bodies, however, may be considered to share similar perspectives on the value of the regional transit system, and the important role of local government, through the GVRF, in helping to fund improvements to the system. Metro Vancouver may choose to rely on the Mayors’ Council to represent local government’s concerns in the use of regional gas tax funds.
GVRF Agreement In the First Agreement, recipients of gas tax funds were expected to retain ownership of infrastructure resulting from gas tax funds for at least ten years beyond the projects’ completion dates. If at any time during the ten-year period the recipient disposed of the asset, in whole or in part, to a party other than the federal government, provincial government or a municipality, the recipient was required to repay the gas tax contribution to the UBCM in an amount proportionate to the timeframe of the disposal of the asset. In the 2014 Agreement, the ten-year protection has been replaced with a new five-year provision. This five-year provision attaches conditions to the use of revenues generated from the sale, lease, encumbrance, or other form of disposal of gas tax-funded projects that are disposed within five years of their completion dates. All such revenues must be
FGT - 20 Ownership and Oversight of Regional Transportation Assets Funded by the Greater Vancouver Regional Fund Federal Gas Tax Task Force Meeting Date: May 29, 2015 Page 5 of 7 invested by the recipient into approved eligible projects. In the Metro Vancouver context, approved eligible projects are regional transportation projects that have been endorsed by the GVRD Board for GVRF funding.
The five-year provision in the 2014 Agreement is intended to provide some assurance to the local government (Metro Vancouver) that the gas tax funds it provides to the recipient (TransLink) will be used to support the local-government approved project, and will not be redirected from the project before a reasonable amount of time has elapsed. The provision is also intended, however, to provide the recipient with sufficient flexibility to fulfill its mandate. The need for some degree of flexibility in the treatment of assets may be particularly important in the case of TransLink, given the agency’s mandate to operate and maintain the entire integrated regional transit system. In its efforts to deliver a system that achieves a variety of financial, transportation, environmental and social goals, TransLink, it may be argued, needs adequate freedom to assign and re-assign resources across its broad pool of assets.
Metro Vancouver may be able to accept the principle that some degree of flexibility for TransLink in the treatment of assets is necessary and, indeed, important to the effectiveness of the regional transit system. The question to address, however, concerns the amount of flexibility required. Put simply, how much flexibility in the treatment of assets does TransLink need in order to do its job? The former ten-year provision under the First Agreement, with its requirement to refund monies in the event of disposal of an asset, may not provide enough flexibility. Conversely, the five-year provision in the 2014 Agreement, with its requirement to reinvest proceeds from asset sales into other approved eligible expenses, may provide too much. A third option would marry the ten-year period from the First Agreement with the reinvestment requirement from the 2014 Agreement. Under this option, TransLink would be entitled to dispose of gas tax-funded assets, but would be required to reinvest the funds into approved eligible projects if the assets were disposed of within ten years of their completion.
This third option could be implemented through the GVRF Agreement between UBCM and TransLink. This Agreement is being drafted now to implement the 2014 Agreement within Metro Vancouver. As noted, Metro Vancouver has a role in setting out the terms of the document.
ALTERNATIVES 1. That the GVRD Board a) Receive for information the report dated May 20, 2015, titled “Ownership and Oversight of Regional Transportation Assets Funded through the Greater Vancouver Regional Fund”; and b) Direct staff to work with UBCM on structuring the Greater Vancouver Regional Fund Agreement to include a ten-year provision on the reinvestment of proceeds that are generated from the disposal of gas tax-funded assets. 2. That the Intergovernment and Finance Committee Federal Gas Tax Task Force provide alternative direction to staff.
FINANCIAL IMPLICATIONS Financial implications associated with Alternative 1 would be limited to staff time, all of which would be funded out of existing GVRD service budgets. If the Board elected to assume ownership of regional transportation assets, significant financial costs could be expected. Costs would be incurred in the areas of asset management and contract administration, but would also arise in response to other
FGT - 21 Ownership and Oversight of Regional Transportation Assets Funded by the Greater Vancouver Regional Fund Federal Gas Tax Task Force Meeting Date: May 29, 2015 Page 6 of 7 challenges – anticipated and unforeseen – that Metro Vancouver would almost certainly face in its capacity as owner, particularly given the organization’s lack of expertise and experience in the transit field.
SUMMARY / CONCLUSION Since 2005 the Government of Canada has transferred funds derived from federal gas taxes to Canadian municipalities as a source of predictable, long-term funding for local infrastructure. The original ten-year Agreement (First Agreement) on the transfer of federal gas tax funds to British Columbia was signed in that year. A renewed ten-year agreement, the Administrative Agreement on the Federal Gas Tax Fund in British Columbia (2014 Agreement), replaced the First Agreement in April, 2014. There are three programs identified in the 2014 Agreement: the Community Works Fund, the Strategic Priorities Fund, and the Greater Vancouver Regional Fund.
The Greater Vancouver Regional Fund pools 95% of Metro Vancouver member municipalities’ per capita allocation of gas tax funds to support eligible regional transportation projects proposed and delivered by TransLink. Under the new agreement it is the GVRD Board that must approve all eligible projects proposed by TransLink for funding. The new agreement, however, does not restore to Metro Vancouver the decision-making authority it once had over TransLink itself. It is in this context that the GVRD Board resolution of June 27, 2014 was made. Of specific importance in the resolution are the following two concerns: - The assets acquired using gas tax funds are owned by an entity over which Metro Vancouver has no decision-making authority; and - The assets acquired using regional gas tax funds could potentially be sold or transferred without the consent of Metro Vancouver.
One option to consider in addressing the Board’s concerns is for Metro Vancouver to take ownership of the transportation assets purchased using regional gas tax funding. Ownership may be feasible under the terms of GVRF Agreement; but is it advisable? In staff’s view, ownership is not advisable either for Metro Vancouver or the regional transit system.
A second option is for Metro Vancouver to rely on the Mayors’ Council to represent local government’s concerns in the use of regional gas tax funds. Amendments to South Coast British Columbia Transportation Authority Act in 2014 resulted in changes to the role and responsibilities of the Mayors’ Council on Regional Transportation. As a result of the changes, the Mayors’ Council must approve TransLink’s ten-year investment plan. This plan, which is updated every three years, sets out all of the assets and projects that are identified for acquisition and disposal.
A third option is for Metro Vancouver to work with the UBCM to include, in the GVRF Agreement currently being drafted, a specific provision on the use of funds from disposed assets. Under this option, TransLink would be entitled to dispose of gas tax-funded assets, but would be required to reinvest the funds into approved eligible projects if the assets were disposed of within ten years of their completion. This provision is stronger than the one found in the main 2014 Agreement, and for that reason would provide greater assurance to Metro Vancouver regarding the use of regional gas tax funds. The provision would not, however, unnecessarily limit the flexibility needed by TransLink to operate the regional transit system.
This third option, presented as Alternative 1 in the report, is recommended to the GVRD Board.
FGT - 22 Ownership and Oversight of Regional Transportation Assets Funded by the Greater Vancouver Regional Fund Federal Gas Tax Task Force Meeting Date: May 29, 2015 Page 7 of 7
Attachments Administrative Agreement on the Federal Gas Tax Fund in British Columbia 11411605
FGT - 23 ATTACHMENT
ADMINISTRATIVE AGREEMENT ON THE FEDERAL GAS TAX FUND IN BRITISH COLUMBIA
This Agreement effective as of the 151 day of April, 2014, BETWEEN: HER MAJESTY THE QUEEN IN RIGHT OF CANADA, as represented by the President of the Queen's Privy Council for Canada, Minister of Infrastructure, Communities and Intergovernmental Affairs ("Canada")
AND: HER MAJESTY THE QUEEN IN RIGHT OF THE PROVINCE OF BRITISH COLUMBIA, as represented by the Minister of Community, Sport and Cultural Development ("British Columbia"),
AND: THE UNION OF BRITISH COLUMBIA MUNICIPALITIES, as continued by section 2 of the Union of British Columbia Municipalities Act, RSBC 2006, c.1, represented by the President ("UBCM")
1. PURPOSE
This Administrative Agreement (Agreement) sets out the roles and responsibilities of the Parties for the administration of the Federal Gas Tax Fund (GTF).
2. CONTEXT
With this Agreement, the Parties wish to help communities build and revitalize their public infrastructure that supports national objectives of productivity and economic growth, a clean environment and strong cities and communities, building on:
• The success of the First Agreement;
• Section 161 of the Keeping Canada's Economy and Jobs Growing Act, S.C. 2011, c. 24, under which the Government of Canada makes up to $2 billion per year available for allocation by the Government of Canada for the purpose of municipal, regional and First Nations infrastructure starting in 2014-2015;
• Economic Action Plan 2013, through which the Government of Canada announced a renewed GTF which included the indexation of the gas tax funding at two percent per year, with increases to be applied in $100 million increments (confirmed through section 161 of the Keeping Canada's Economy and Jobs Growing Act, S.C. 2011, c. 24 as amended by section 233 ofthe Economic Action Plan 2013 Act, No. 1, S.C. 2013, c. 33);
• Economic Action Plan 2013 which encouraged provinces, territories, cities and communities to support the use of apprentices in infrastructure projects receiving federal funding. Canada recognizes that British Columbia has developed and implemented its own initiatives with regards to the use of apprentices in infrastructure projects;
• Economic Action Plan 2013, through which the Government of Canada announced an expanded list of GTF eligible project categories and encouragement for asset management planning.
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FGT - 24 3. PRINCIPLES
The Parties acknowledge that this Agreement is based on the following principles:
a. Principle 1 - Respect for jurisdiction: The GTF was designed to leverage the strengths of each level of government and is based on the principle that each has areas of jurisdiction and is accountable to its population. Canada respects the jurisdiction of provinces and territories over municipal institutions.
b. Principle 2- A flexible approach: In recognition of the diversity of Canadian provinces, territories, regions and communities, the GTF recognizes the need for a flexible approach to program delivery. Wherever possible, the GTF aims to employ regionally adapted delivery mechanisms, including the leveraging of existing delivery mechanisms and reporting structures.
c. Principle 3- Equity between jurisdictions: The GTF recognizes the importance of ensuring that the inter-provincial/territorial allocation is equitable while supporting meaningful infrastructure investments within the least populated jurisdictions.
d. Principle 4- Long-term solutions: The GTF provides predictable, long-term funding for communities, for infrastructure priorities that meet community needs, while respecting the principle of incremental spending and not displacing current infrastructure investments.
e. Principle 5-Transparency: The GTF is administered via an open and transparent governance process which recognizes and communicates Canada's contribution to communities' infrastructure priorities and includes regular program evaluations and progress reporting to Canadians.
4. ANNEXES AND SCHEDULES
The following annexes and schedules are attached to and form part of this Agreement:
• AnnexA: Definitions • Annex B: Terms and conditions, including: • Schedule A: Ultimate Recipient Requirements • Schedule B: Eligible Project Categories • Schedule C: Eligible and Ineligible Expenditures • Schedule D: Reporting • Schedule E: Communications Protocol • Schedule F: Asset Management • Annex C: Partnership Committee
5. DEFINITIONS
Unless defined elsewhere in this Agreement, capitalized words used throughout this Agreement are defined in Annex A (Definitions).
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FGT - 25 6. FEDERAL GAS TAX FUND
6.1 Any GTF funding that may be transferred by Canada to UBCM, when transferred, will be administered by UBCM in accordance with this Agreement, including the terms and conditions set out in Annex B (Terms and Conditions).
7. GOVERNANCE
7.1 This Agreement will be governed by a partnership committee which is hereby established.
7.2 The partnership committee will monitor the strategic implementation of this Agreement, and will serve as the principal forum to address and resolve issues arising from the implementation ofthis Agreement. Responsibilities, membership, appointments, and terms of reference for the partnership committee will be in accordance with Annex C (Partnership Committee).
8. DISPUTE RESOLUTION
8.1 The Parties will work together to resolve any issues which may arise in relation to this Agreement.
8.2 It is understood that failure to meet the following requirements are of particular interest and will be addressed as a priority:
a) ensuring that Ultimate Recipients comply with Schedule B (Eligible Project Categories) and Schedule C (Eligible and Ineligible Expenditures) of Annex B (Terms and Conditions); b) submitting an Annual Report to Canada and British Columbia by September 30th of each year and an Outcomes Report, as outlined in ScheduleD (Reporting) of Annex B (Terms and Conditions); c) conducting communications activities in accordance with the requirements outlined in Schedule E (Communications Protocol) of Annex B (Terms and Conditions).
8.3 An escalating dispute resolution approach would begin with a partnership committee discussion followed by senior official-level discussions and ultimately with discussions among the Federal and Provincial Ministers and the President of UBCM for resolution, within a reasonable timeframe, to the satisfaction of the Parties.
8.4 In the event of any unresolved issue, if the above resolution mechanisms fail to achieve a resolution, it is understood that the final decision with respect to such issue will rest solely with Canada.
9. AUDITS AND EVALUATION
9.1 Canada may, at its expense, carry out any audit in relation to this Agreement, and for this purpose, reasonable and timely access to all documentation, records and accounts that are related to this Agreement and the use of GTF funding, and any interest earned thereon, and to all other relevant information and documentation requested by Canada or its designated representatives, will be provided to Canada or its designated representatives by:
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FGT - 26 • British Columbia and UBCM, as applicable, where these are held by British Columbia, UBCM, or their respective agents or Third Parties; and • Ultimate Recipients where these are held by the Ultimate Recipient or a Third Party or their respective agents.
9.2 Canada may, at its expense, complete a periodic evaluation of the GTF to review the relevance and performance (i.e. effectiveness, efficiency and economy) of the GTF. British Columbia and UBCM will provide Canada with information on program performance and may be asked to participate in the evaluation process. The results of the evaluation will be made publicly available.
9.3 UBCM will keep proper and accurate accounts and records in respect of all Eligible Projects for at least six (6) years after completion of the Eligible Project and will, upon reasonable notice, make them available to Canada.
9.4 Sections 9.1 to 9.3 will remain in effect for 7 years beyond the expiration or termination of this Agreement unless otherwise agreed to by the Parties.
10. DURATION, TERMINATION, REVIEW AND AMENDMENT
10.1 This Agreement will be effective as of April 1, 2014 and will be in effect until March 31, 2024 unless the Parties agree to renew it. In the event where this Agreement is not renewed, any GTF funding and Unspent Funds, and any interest earned thereon held by UBCM or Ultimate Recipients, that have not been expended on Eligible Projects or other expenditures authorized by this Agreement as of March 31, 2024 will nevertheless continue to be subject to this Agreement until such time as may be determined by the Parties.
10.2 This Agreement will be reviewed by the Parties by March 31, 2018 and may be amended to incorporate changes, if any, agreed to by the Parties.
10.3 This Agreement may be amended at any time in writing as agreed to by the Parties.
10.4 If Canada concludes an agreement with respect to the GTF for similar purposes with any other province or territory of Canada, and that agreement taken as a whole is materially different from this Agreement, British Columbia or UBCM may ask Canada to agree to amend this Agreement so that, taken as a whole, it affords similar treatment to British Columbia and its Local Governments as the other agreement affords to the other province or territory and its municipalities. In the event of any such request, Canada, British Columbia and UBCM agree to discuss the request and any agreement reached between them to amend this Agreement will be effected in accordance with Section 10.3 (Duration, Termination, Review and Amendment).
10.5 This Agreement may be terminated at any time and for any reason by Canada, British Columbia or UBCM on two (2) years written notice. In the event where this Agreement is so terminated, any GTF funding and Unspent Funds and any interest earned thereon held by UBCM or Ultimate Recipients, that have not been expended on Eligible Projects or other expenditures authorized by this Agreement as of the date of termination will nevertheless continue to be subject to this Agreement until such time as may be determined by the Parties. In the event that any Party gives notice of its intent to terminate this Agreement, the Parties agree they will work collaboratively to develop a
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FGT - 27 strategy during the 2 year notice period to address transitional issues including, but not limited to, ongoing administration of any GTF funding and Unspent Funds and any interest earned thereon, and determining how long any GTF funding and Unspent Funds and any interest earned thereon held by UBCM or Ultimate Recipients that have not been expended on Eligible Projects will remain subject to this Agreement.
11. TRANSITION FROM, AND TERMINATION OF, THE FIRST AGREEMENT
11.1 As of the effective date of this Agreement, the First Agreement is terminated.
11.2 Notwithstanding Section 11.1 (Transition), the Parties agree that prior to its termination, the First Agreement is amended to add to Section 11.2 (Survival) of the First Agreement: Section 11.3 (Governing Law), Schedule A (Eligible Project Categories and Sub Categories by Community Tier), Schedule B (Eligible Costs for Eligible Recipients) and Schedule E (Reporting and Audits).
11.3 Notwithstanding Section 11.1 (Transition), the Parties agree that the survival rights and obligations in Section 11.2 (Survival) of the First Agreement (including those added to that section by virtue of Section 11.2 (Transition From, and Termination of, The First Agreement) of this Agreement, and any other section of the First Agreement that is required to give effect to that survival section, will continue to apply beyond the termination of the First Agreement subject to the following: a) Regardless of any wording in the First Agreement with another effect (including Section 1.1) of Schedule C (Eligible Recipient Accountability Framework) of the First Agreement), Unspent Funds, including interest earned thereon, will, as of the effective date of this Agreement, be subject to this Agreement, including the terms and conditions set out in Annex B (Terms and Conditions); b) Notwithstanding Section 11.2 (Transition From, and Termination of, The First Agreement): i. Unspent Funds that fall within the reporting period of the 2013 Annual Expenditure Report (as defined in the First Agreement) will be reported by UBCM to Canada in accordance with the First Agreement; and, ii. Unspent Funds that fall within the reporting period that includes January 1, 2014 to the effective date of this Agreement will be reported by UBCM to Canada in accordance with this Agreement. c) If an Eligible Recipient (as defined under the First Agreement) wishes to amend a project approved for funding under the General Strategic Priorities Fund or the Innovations Fund by the Management Committee established under Section 4.2 (Management Committee) of the First Agreement, the change to the project must be approved by the management committee established under Section 3.3 (Strategic Priorities Fund) of Annex B (Terms and Conditions) of this Agreement; d) If the Greater Vancouver Regional District Board (GVRD) wishes to amend the scope of a project approved by the Management Committee established under Section 4.2 (Management Committee) of the First Agreement for funding under the Tier 3 Strategic Priorities Fund under the First Agreement, or substitute another Eligible Project (as defined in this Agreement) in its place, the GVRD may approve the change as though it were a project under the Greater Vancouver Regional Fund under section 3.2 of this Agreement, and must notify the UBCM of that change;
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FGT - 28 e) If a Regional District Board wishes to amend the scope of a project approved by the Management Committee established under Section 4.2 (Management Committee) of the First Agreement for funding under that Regional District's Regionally Significant Projects Fund reservation under the First Agreement, or substitute another Eligible Project (as defined in this Agreement) in its place, the Regional District Board may approve the change, and must notify UBCM of that change; f) If all or part of the funding reserved for a Regional District under the Regionally Significant Projects Fund under the First Agreement has not been committed to fund projects approved by the Management Committee established under Section 4.2 (Management Committee) of the First Agreement, the Regional District Board may approve Eligible Projects (as defined in this Agreement) to be funded with the remaining reservation for the Regional District, and must notify UBCM of the approvals; g) With respect to Section 5.5 (Disposal of Eligible Projects) of the First Agreement, any repayment received by UBCM pursuant to the operation of Section 4 of Schedule C of the First Agreement will be considered included in the definition of Unspent Funds and must be used by UBCM and Ultimate Recipients in accordance with the terms and conditions of this Agreement; h) The survival of the reporting obligations under Sections 7.1 (Reporting), Section 1 m) of Schedule C (Eligible Recipient Accountability Framework), and Section 1.1 (Annual Expenditure Report) of Schedule E (Reporting and Audits) of the First Agreement extends only until these obligations are fulfilled by Eligible Recipients (as defined in the First Agreement) and UBCM, as applicable, for the 2013 reporting year, after which, the reporting obligations under Section 8 (Reporting) of Annex B (Terms and Conditions), Section 9 of Schedule A and Schedule D (Reporting) ofthis Agreement will apply; i) Any matters that Section 8.1 (Dispute Resolution) of the First Agreement would have applied to will be dealt with under Section 8 (Dispute Resolution) of this Agreement; j) Any matters that Section 10 (Communications) and Schedule G (Communications Protocol) of the First Agreement would have applied to will be dealt with under Section 6 (Communications) of Annex B (Terms and Conditions) and Schedule E (Communications Protocol) of this Agreement; and k) If an Ultimate Recipient under this Agreement is not in compliance with a Funding Agreement under the First Agreement, Section 4.3 (Payments to Ultimate Recipients by UBCM) of Annex B (Terms and Conditions) of this Agreement applies to payments to that Ultimate Recipient as though the Funding Agreement under the First Agreement were a Funding Agreement under this Agreement.
12. COUNTERPART SIGNATURE
This Agreement may be signed in counterpart and the signed copies will, when attached, constitute an original agreement.
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FGT - 29 13. CORRESPONDENCE
Any correspondence under this Agreement may be delivered in person, sent by electronic mail, sent by facsimile, or sent by mail addressed to:
Canada:
Assistant Deputy Minister, Program Operations Branch 180 Kent Street, Suite 11 00 Ottawa, Ontario K1P OB6
Email address: [email protected] Fax Number: 613 960-9423
or to such other address, e-mail or facsimile number or addressed to such other person as Canada may, from time to time, designate in writing to British Columbia and UBCM:
British Columbia:
Assistant Deputy Minister, Local Government Division Ministry of Community, Sport and Cultural Development PO Box 9490 Stn Prov Gov Victoria, British Columbia V8W9N7
Email address: [email protected] Fax Number: 250 356-1873
or such other address, e-mail or facsimile number or addressed to such other person as British Columbia may, from time to time, designate in writing to Canada and UBCM; and
UBCM:
Executive Director Union of British Columbia Municipalities 525 Government Street Victoria, British Columbia V8VOA8
Email address: [email protected] Fax Number: 250 356-5119
or such other address, e-mail or facsimile number or addressed to such other person as UBCM may, from time to time, designate in writing to Canada and British Columbia.
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FGT - 30 Signatures
CANADA BRiTISH COLUMBIA
The Honourable Denis Lebel The Honourable Coralee Oakes
s!l:l~~~11'!'1i~rii·tl!·elland Minister of Community, Sport and Cultural Development
Date Date NAY 0 8 2014
UNION OF BRITISH COLUMBIA MUNICIPALITIES
Director Rhona Martin President Union of British Columbia Municipalities
Date
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FGT - 31 Signatures
CANADA BRITISH COLUMBIA
The Honourable Denis Lebel The Honourable Coralee Oakes
Minister of Infrastructure, Communities and Minister of Community, Sport and Cultural Intergovernmental Affairs Development
Date
UNION OF BRITISH COLUMBIA MUNICIPALITIES
Director Rhona Martin President Union of British Columbia Municipalities
Date
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FGT - 32 Signatures
CANADA BRITISH COLUMBIA
The Honourable Denis Lebel The Honourable Coralee Oakes
Minister of Infrastructure, Communities and Minister of Community, Sport and Cultural Intergovernmental Affairs Development
Date Date
UNION OF BRITISH COLUMBIA MUNICIPALITIES
Director Rhona Martin President Union of British Columbia Municipalities
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FGT - 33 ANNEXA DEFINITIONS
"Agreement" means this Administrative Agreement on the Federal Gas Tax Fund in British Columbia.
"Annual Report" means the duly completed annual report to be prepared and delivered by the UBCM to Canada and British Columbia, as described in Schedule D (Reporting).
·Asset Management" (AM) includes planning processes, approaches or plans that support integrated, lifecycle approaches to effective stewardship of infrastructure assets in order to maximize benefits and manage risk. AM is further described in Schedule F (Asset Management), and can include: • an inventory of assets; • the condition of assets; • level of service; • risk assessment; • a cost analysis; community priority setting; • long-term financial planning.
"Base Amount" means an amount established over a time-period, reflecting non-federal investments in Infrastructure and against which GTF investments will be measured to ensure that GTF investments are incremental.
"Contract" means an agreement between an Ultimate Recipient and a Third Party whereby the latter agrees to supply a product or service to an Eligible Project in return for financial consideration.
"Eligible Expenditures• means those expenditures described as eligible in Schedule C (Eligible and Ineligible Expenditures).
"Eligible Projects" means projects as described in Schedule B (Eligible Project Categories).
"First Agreement" means the agreement for the transfer of federal gas tax revenues entered into on September 19, 2005 by the Government of Canada, British Columbia and UBCM, with an expiry date of March 31,2019, as amended.
"Funding Agreement" means an agreement between UBCM and an Ultimate Recipient setting out the terms and conditions of the GTF funding to be provided to the Ultimate Recipient, containing, at a minimum, the elements in Schedule A (Ultimate Recipient Requirements}.
"GTF" means the Gas Tax Fund, a program established by the Government of Canada setting out the terms and conditions for the administration of funding that may be provided by Canada to recipients under section 161 of the Keeping Canada's Economy and Jobs Growing Act, S.C. 2011, c. 24 as amended by section 233 of the Economic Action Plan 2013 Act, No. 1, S.C. 2013, c. 33, or any other source of funding as determined by Canada.
"Ineligible Expenditures" means those expenditures described as ineligible in Schedule C (Eligible and Ineligible Expenditures).
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FGT - 34 "Infrastructure" means municipal or regional, publicly or privately owned tangible capital assets in British Columbia primarily for public use or benefit.
"Local Govemmenf' means a municipality as defined in the Community Chatter [SBC 2003) Chapter 26, a regional district as defined in the Local Government Act [RSBC 1996) Chapter 323, and the City of Vancouver as continued under the Vancouver Chatter [SBC 1953] Chapter 55.
"Outcomes Reporf' means the report to be delivered by March 31, 2018 and again by March 31, 2023 by UBCM to Canada and British Columbia which reports on how GTF investments are supporting progress towards achieving the program benefits, more specifically described in Schedule D (Reporting).
"Party" means Canada, British Columbia or UBCM when referred to individually and collectively referred to as "Parties".
"Third Party" means any person or legal entity, other than Canada, British Columbia, UBCM or an Ultimate Recipient, who participates in the implementation of an Eligible Project by means of a Contract.
"Ultimate Recipienf' means: (i) a Local Government or its agent (including its wholly owned corporation); (ii) a non-municipal entity, including for-profit, non-governmental and not-for-profit organizations, on the condition that (a) the Local Government(s) where the Eligible Project would be located, if applicable, has (have) indicated support for the project through a formal resolution of its (their) council{s) or board{s). (iii) the South Coast British Columbia Transportation Authority, the Greater Vancouver Water District and the Greater Vancouver Sewerage and Drainage District; a trust council, a local trust committee and the trust fund board, all within the meaning of the Islands Trost Act, and any other entity that delivers core local government services agreed to, in advance, by the Parties; and, (iv) BC Transit subject to the agreement of the appropriate Local Government, through its council or board. In the case of transit Eligible Projects within the Capital Regional District, the appropriate Local Government is the Capital Regional District.
"Unspent Funds" means Funds {as defined by the First Agreement) that have not been spent towards an Eligible Project {as defined under the First Agreement) or on administration costs in accordance with the First Agreement prior to the effective date of this Agreement.
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FGT - 35 ANNEXB TERMS AND CONDITIONS
1. ELIGIBLE PROJECT CATEGORIES
Eligible Project categories under the GTF will continue to include: public transit, local roads and bridges, active transportation infrastructure, wastewater, water, solid waste and community energy infrastructure and non-capital investments in capacity building initiatives. As announced in Economic Action Plan 2013, new eligible project categories have been added to include highways, local and regional airports, short-line rail, short-sea shipping, disaster mitigation, broadband and connectivity, brownfield redevelopment, culture, tourism, sport and recreation infrastructure. Schedule B (Eligible Project Categories) provides further details regarding Eligible Project categories.
2. ELIGIBLE AND INELIGIBLE EXPENDITURES
Eligible Expenditures are those associated with: acquiring, planning, designing, constructing, or renovating a tangible capital asset; strengthening of the ability of Local Governments to improve local and regional planning and asset management; and joint communication activities and federal signage. Schedule C (Eligible and Ineligible Expenditures) sets out specific requirements for eligible and ineligible expenditures.
3. DELIVERY MECHANISM
Subject to Sections 9.3 and 9.4 (Use and Recording of Funds by UBCM) of Annex B (Terms and Conditions) any GTF funding that may be received by UBCM from canada, including interest earned thereon, will be delivered through three programs: Community Works Fund, Greater Vancouver Regional Fund and Strategic Priorities Fund, as set out below.
UBCM agrees to provide to Canada and British Columbia, upon request, a table detailing the Local Government allocations under the Community Works Fund and a list of approved projects under the Greater Vancouver Regional Fund and Strategic Priorities Fund, and promptly provide to Canada and British Columbia updates to this information.
3.1 COMMUNITY WORKS FUND
The Community Works Fund (CWF) provides funding to Local Governments for Eligible Expenditures of Eligible Projects that are in alignment with the requirements of this Agreement and that meet local priorities. Each Local Government is eligible to annually receive CWF, consisting of a floor amount and a per capita amount as set out in Section 3.4 (Funding Allocations to Each ofthe Programs).
The Local Government to which CWF funding is allocated chooses which Eligible Projects that meet local priorities will be funded with CWF funding. In order to receive CWF funding, the Local Government must sign a Funding Agreement with UBCM.
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FGT - 36 3.2 GREATER VANCOUVER REGIONAL FUND
The Greater Vancouver Regional Fund (GVRF) pools a percentage of GVRD and its member municipalities' per-capita allocation as set out in Section 3.4 (Funding Allocations to Each of the Programs), Table 1. In keeping with the Greater Vancouver Regional District request and as agreed to by the Parties, Eligible Expenditures of Eligible Projects funded with the GVRF allocation over the term of this Agreement must be regional transportation Eligible Projects proposed for funding by the South Coast British Columbia Transportation Authority (Translink) and approved by the GVRD Board.
The GVRD must notify UBCM of the Eligible Projects that it has approved for funding, after which UBCM may provide funding to Translink for those Eligible Projects. In order to receive GVRF funding, Translink must sign a Funding Agreement with UBCM.
3.3 STRATEGIC PRIORITIES FUND
The Strategic Priorities Fund (SPF) provides an opportunity for Ultimate Recipients in those areas of the province outside the GVRD to access pooled, application based funding. The SPF provides funding for Eligible Expenditures of Eligible Projects that are in alignment with the requirements of this Agreement and are larger in scale, regional in impact, or innovative.
The partnership committee will set criteria and spending priorities for the SPF but will not select individual projects.
A management committee, which will be responsible for approving projects for funding under the SPF, is hereby established.
The management committee membership will consist of one member appointed by Canada, one member appointed by British Columbia, and three (3} members appointed by UBCM, one of which will be designated by UBCM as the Chair. The member appointed by Canada will have observer status only and will have no role in the responsibilities outlined below.
Replacement members from Canada, British Columbia or UBCM may, from time to time, be appointed. The Parties agree to keep each other informed in writing of new appointments.
The committee will adopt its terms of reference, which will establish procedures in respect of its meetings. The terms of reference must be in accordance with this Agreement, and may be amended from time to time by the committee.
The management committee is responsible to: • approve projects for funding under the SPF, and approve any significant changes in the scope of those projects, and for these purposes, may establish criteria and processes in relation to the SPF, which must be in keeping with the strategic criteria and spending priorities set by partnership committee; • approve requests by Ultimate Recipients for significant changes in the scope for any projects approved for funding under the General Strategic Priorities Fund or the Innovations Fund by the management committee under the First Agreement.
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FGT - 37 The amount allocated to the SPF is the percentage of per-capita funding indicated in Section 3.4 (Funding Allocations to Each of the Programs), Table 1.
In order to receive SPF funding, an Ultimate Recipient must sign a Funding Agreement with UBCM for the Eligible Project approved by the management committee.
3.4 FUNDING ALLOCATIONS TO EACH OF THE PROGRAMS
Subject to Sections 9.3 and 9.4 (Use and Recording of Funds by UBCM) of Annex B (ferms and Conditions) any GTF funding that may be received by UBCM from Canada, will be allocated to the CWF, GVRF and SPF as set out in Table 1.
A funding "floor" will ensure a reasonable base allocation of funds for each Local Government receiving funding under the CWF. Local Governments will each receive a CWF floor amount of $50,000 in the first year of the Agreement, and $50,000 plus an indexed amount in each subsequent year of the Agreement, with indexing at the same percentage and at the same time as indexation of GTF funding that may be transferred by Canada to UBCM.
TABLE 1:
GVRD and member municipalities 5% 95% N/A
All other Local Governments 75% N/A 25%
4. USE OF FUNDS BY ULTIMATE RECIPIENTS
4.1 Any GTF funding that may be received by Ultimate Recipients and any Unspent Funds, and any interest earned thereon held by Ultimate Recipients must be used by Ultimate Recipients in accordance with this Agreement, including specifically Schedule A (Ultimate Recipient Requirements).
4.2 Any GTF funding that may be received by Ultimate Recipients and any Unspent Funds, and any interest earned thereon held by Ultimate Recipients will be treated as federal funds with respect to other federal infrastructure programs.
4.3 Payments to an Ultimate Recipient by UBCM are subject to the compliance by an Ultimate Recipient with the terms and conditions of this Agreement and to any Funding Agreement it has with UBCM.
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FGT - 38 5. INCREMENTAL SPENDING
GTF funding that may be received from Canada is not intended to replace or displace existing sources offunding for Ultimate Recipient expenditures on tangible capital assets. As such, over the term of this Agreement, Ultimate Recipient expenditures on tangible capital assets must result in incremental spending as measured by the methodology, which will include a Base Amount, approved by the partnership committee.
6. COMMUNICATIONS
This Agreement formalizes clear requirements to support federal communications objectives. Schedule E (Communications Protocol) sets out specific communications requirements, including: • providing upfront project information on an annual basis for communications purposes; • including the federal government in local project communications; and • installing federal project signs.
7. ASSET MANAGEMENT
The Parties agree that strengthening Local Government capacity to undertake Asset Management is integral to building strong cities, communities and regions, and agree to support Asset Management practices in all Local Government jurisdictions during the term of the Agreement. Schedule F (Asset Management) provides more details on the approach agreed upon by the Parties.
8. REPORTING
UBCM will provide to Canada and British Columbia an Annual Report reporting on expenditures as well as a project list. Furthermore, UBCM will provide to Canada and British Columbia periodic Outcomes Reports indicating progress and results of the GTF in order to demonstrate overall GTF progress toward the national objectives. Schedule D (Reporting) sets out specific reporting requirements.
9. USE AND RECORDING OF FUNDS BY UBCM
9.1 UBCM will ensure that any Unspent Funds held by UBCM and any GTF funding that may be received from Canada, as well as any interest earned thereon are used solely in accordance with the terms and conditions set out in this Agreement.
9.2 Pending payment to Ultimate Recipients or other uses in accordance with the terms and conditions of this Agreement, UBCM will record into a separate and distinct account any GTF funding it may receive from Canada and any interest earned thereon.
9.3 UBCM may only use any GTF funding it may receive from Canada, along with any interest earned thereon, for the following: • payments to Ultimate Recipients in keeping with the delivery mechanisms identified above, and in accordance with the terms and conditions of this Agreement; and • upon the review by the partnership committee and acceptance by Canada of a detailed business case, which must be submitted by April1, 2015, for administration expenses related to program delivery and implementation of the Gas Tax Fund in
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FGT - 39 British Columbia, including expenditures associated with communication activities such as public project announcements.
9.4 UBCM may only use Unspent Funds it holds, as well as any interest eamed thereon, for the following: any remaining payments to Eligible Recipients (as defined in the First Agreement) for CWF, or in relation to Eligible Projects (as defined by the First Agreement) approved for funding under the Strategic Priorities Fund and Innovation Fund under the First Agreement; • any other commitments made in accordance with the terms and conditions of the First Agreement which remain outstanding at the time Unspent Funds are reported; and • in accordance with Section 9.3 (Use and Recording of Funds by UBCM) if there are any remaining amounts after all payments are made in accordance with the previous two bullets.
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FGT - 40 SCHEDULE A - Ultimate Recipient Requirements
Funding Agreements must require that Ultimate Recipients:
1. Ensure that any Unspent Funds and any GTF funding received from U8CM, as well as any interest earned thereon are used in accordance with Schedule 8 (Eligible Project Categories) and Schedule C (Eligible and Ineligible Expenditures). 2. Treat any Unspent Funds and any GTF funding received from U8CM, as well as any interest earned thereon as federal funds with respect to other federal infrastructure programs in accordance with Section 4.2 (Use of Funds by Ultimate Recipients) of Annex 8 (Terms and Conditions). 3. Ensure that any Unspent Funds and any GTF funding received from U8CM, as well as any interest earned thereon result in incremental spending in accordance with Section 5 (Incremental Spending) of Annex 8 (Terms and Conditions). 4. Comply with all Ultimate Recipient requirements outlined in Schedule E (Communications Protocol). 5. During the term of this Agreement, where an Ultimate Recipient is a Local Government, work to strengthen Asset Management, in accordance with the Asset Management framework developed by the partnership committee. 6. Invest, in a distinct account, GTF funding they receive from U8CM in advance of it paying Eligible Expenditures. 7. With respect to Contracts, award and manage all Contracts in accordance with the Ultimate Recipients' relevant policies and procedures and, if applicable, in accordance with the Agreement on Internal Trade and applicable international trade agreements, and all other applicable laws. 8. Invest into Eligible Projects, any revenue that is generated from the sale, lease, encumbrance or other disposal of an asset resulting from an Eligible Project where such disposal takes place within five (5) years of the date of completion of the Eligible Project. 9. Submit a report to U8CM, in a format acceptable to U8CM, by June 1 in each year, which includes: • GTF transactions of the Ultimate Recipient for the previous calendar year, in sufficient detail to allow U8CM to create the aggregated report required by Schedule D (Reporting); • a declaration from the officer responsible for financial administration that the Ultimate Recipient has complied with all Funding Agreements between it and U8CM; and • any other information required by UBCM to fulfill its responsibilities under this Agreement, including, but not limited to project outcomes in relation to anticipated program benefits, expenditures made for tangible capital assets, and progress made towards Asset Management improvements. 10. Allow Canada and UBCM reasonable and timely access to all of its documentation, records and accounts and those of their respective agents or Third Parties related to the use of any Unspent Funds and any GTF funding, as well as any interest earned thereon, and all other relevant information and documentation requested by Canada or its designated representatives for the purposes of audit, evaluation, and ensuring
16
FGT - 41 compliance with this Agreement. 11. Ensure that no current or forrrer public servant or public office holder to whom any post employment, ethics and conflict of interest legislation, guidelines, codes or policies of Canada applies will derive direct benefit from GTF funding, Unspent Funds and interest earned thereon, unless the provision or receipt of such benefits is in compliance with such legislation, guidelines, policies or codes. 12. Keep proper and accurate accounts and records in respect of all Eligible Projects for at least six (6) years after completion of the Eligible Project and, upon reasonable notice, make them available to Canada. 13. Ensure their actions do not establish or be deemed to establish a partnership, joint venture, principal-agent relationship or employer-employee relationship in any way or for any purpose whatsoever between Canada, British Columbia, or UBCM and the Ultimate Recipient, or between Canada, British Columbia, or UBCM and a Third Party. 14. Ensure that they do not represent themselves, including in any agreement with a Third Party, as a partner, employee or agent of Canada, British Columbia or UBCM. 15. Ensure that they will not, at any time, hold the Government of Canada or British Columbia or any of their respective officers, servants, employees or agents responsible for any claims or losses of any kind that they, Third Parties or any other person or entity may suffer in relation to any matter related to GTF funding or an Eligible Project and that they will, at all times, compensate the Government of Canada or British Columbia and their respective officers, servants, employees and agents for any claims or losses of any kind that any of them may suffer in relation to any matter related to GTF funding or an Eligible Project, except to the extent to which such claims or losses relate to the negligence of an officer, employee, or agent of Canada in the performance of his or her duties. 16. Ensure that they will not, at any time, hold UBCM or any of its officers, servants, employees or agents responsible for any claims or losses of any kind that they, Third Parties or any other person or entity may suffer in relation to any matter related to GTF funding or an Eligible Project and that they will, at all times, compensate UBCM and its officers, servants, employees and agents for any claims or losses of any kind that any of them may suffer in relation to any matter related to GTF funding or an Eligible Project, except to the extent to which such claims or losses relate to the act of negligence of an officer, employee, or agent of UBCM in the performance of his or her duties. 17. Agree that the above requirements which, by their nature, should extend beyond the expiration or termination of this Agreement will extend beyond such expiration or termination.
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FGT - 42 SCHEDULE B -Eligible Project Categories
Eligible Projects include investments in Infrastructure for its construction, renewal or material enhancement in each of the following categories:
1. Local roads. bridges - roads, bridges and active transportation infrastructure (active transportation refers to investments that support active methods of travel. This can include: cycling lanes and paths, sidewalks, hiking and walking trails).
2. Highways- highway infrastructure.
3. Short-sea shipoing - infrastructure related to the movement of cargo and passengers around the coast and on inland waterways, without directly crossing an ocean.
4. Short-line rail - railway related infrastructure for carriage of passengers or freight
5. Regional and local airPOrts- airport-related infrastructure (excludes the National Airport System).
6. Broadband connectivitv- infrastructure that provides internet access to residents, businesses, and/or institutions in Canadian communities.
7. Public transit- infrastructure that supports a shared passenger transport system which is available for public use.
8. Drinking water- infrastructure that supports drinking water conservation, collection, treatment and distribution systems.
9. Wastewater- infrastructure that supports wastewater and storm water collection, treatment and management systems.
10. Solid waste- infrastructure that supports solid waste management systems including the collection, diversion and disposal of recyclables, compostable materials and garbage.
11. Cornrnunitv energy systems- infrastructure that generates or increases the efficient usage of energy.
12. Brownfield Redevelopment- remediation or decontamination and redevelopment of a brownfield site within Local Governments boundaries, where the redevelopment includes: - the construction of public infrastructure as identified in the context of any other eligible project category under the GTF, and/or; - the construction of Local Government public parks and publicly-owned social housing.
13. Sport Infrastructure- amateur sport infrastructure (excludes facilities, including arenas, which would be used as the home of professional sports teams or major junior hockey teams (e.g. Western Hockey League)).
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FGT - 43 14. Recreational infrastructure- recreational facilities or networks.
15. Cultural infrastructure - infrastructure that supports arts, humanities, and heritage.
16. Tourism infrastructure- infrastructure that attract travelers for recreation, leisure, business or other purposes.
17. Disaster mitigation - infrastructure that reduces or eliminates long-tenn impacts and risks associated with natural disasters.
Eligible Projects also include:
18. Capacitv building - includes investments related to strengthening the ability of Local Governments to develop long-tenn planning practices.
Note: Investments in health infrastructure (hospitals, convalescent and senior centres) are not eligible.
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FGT - 44 SCHEDULE C - Eligible and Ineligible Expenditures
1. Eligible Expenditures
1.1 Eligible Expenditures of Ultimate Recipients will be limited to the following:
a) the expenditures associated with acquiring, planning, designing, constructing or renovating a tangible capital asset, as defined by Generally Accepted Accounting Principles (GAAP), and any related debt financing charges specifically identified with that asset;
b) for capacity building category only, the expenditures related to strengthening the ability of Local Governments to improve local and regional planning including capital investment plans, integrated community sustainability plans, life-cycle cost assessments, and Asset Management Plans. The expenditures could include developing and implementing: i. studies, strategies, or systems related to asset management, whiclh may include software acquisition and implementation; ii. training directly related to asset management planning; and, iii. long-term infrastructure plans.
c) the expenditures directly associated with joint communication activities and with federal project signage for GTF-funded projects.
1.2 Employee and Equipment Costs: The incremental costs of the Ultimate Recipient's employees or leasing of equipment may be included as Eligible Expenditures under the following conditions:
a) the Ultimate Recipient is able to demonstrate that it is not economically feasible to tender a contract; b) the employee or equipment is engaged directly in respect of the work that would have been the subject of the contract; and c) the arrangement is approved in advance and in writing by UBCM.
1.3 Administration expenses of UBCM related to program delivery and implementation of this Agreement, in accordance with Section 9 (Use and Recording of Funds by UBCM) of Annex B (Terms and Conditions).
2. Ineligible Expenditures
The following are deemed Ineligible Expenditures: a) project expenditures incurred before April 1 , 2005; b) project expenditures incurred before April 1, 2014 for the following investment categories: i. highways; ii. regional and local airports; iii. short-line rail; iv. short-sea shipping; v. disaster mitigation; vi. broadband connectivity;
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FGT - 45 vii. brownfield redevelopment; viii. cultural infrastructure; ix. tourism infrastructure; x. sport infrastructure; and xi. recreational infrastructure. c) the cost of leasing of equipment by the Ultimate Recipient, any overhead costs, including salaries and other employment benefits of any employees of the Ultimate Recipient, its direct or indirect operating or administrative costs of Ultimate Recipients, and more specifically its costs related to planning, engineering, architecture, supervision, management and other activities normally carried out by its staff, except in accordance with Eligible Expenditures above; d) taxes for which the Ultimate Recipient is eligible for a tax rebate and all other costs eligible for rebates; e) purchase of land or any interest therein, and related costs; f) legal fees; and g) routine repair and maintenance costs.
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FGT - 46 SCHEDULE D - Reporting
Reporting requirements under the GTF consist of an Annual Report and an Outcomes Report which will be submitted to Canada and British Columbia for review and acceptance. 51 51 The reporting year is January1 to December 31 •
1. Annual Report
By September 30th of each year, UBCM will provide to Canada and British Columbia an Annual Report in an electronic format deemed acceptable by Canada consisting of the following in relation to the previous reporting year:
1.1 Financial Report Table: The financial report table will be submitted in accordance with the following template.
($xxx} ($xxx)
$xxx
1 For the 2014 Annual Report this means the amount reported as unspent by UBCM in the 2013 Annual Expenditure Report (as defined under the First Agreement). 2 For the 2014 Annual Report this means the amount reported as unspent by Eligible Recipients {as defined under the First Agreement) in the 2013 Annual Expenditure Report (as defined under the First Agreement). 22
FGT - 47 1.2 lndeoendent Audit or Audit Based Attestation: UBCM will provide an independent audit opinion, or an attestation based on an independent audit and signed by a senior official designated in writing by British Columbia and UBCM, as to:
a) the accuracy of the information submitted in the Financial Report Table; and b) that GTF funding and Unspent Funds, and any interest earned thereon, were expended for the purposes intended.
1.3 Project List UBCM will maintain, and provide to Canada and British Columbia a project list submitted in accordance with the following template.
Annual Report- GTF Project List Template ·:············.. ··.· '<'•···· .... • ...... >...... , ·.··.... ·.... ··•··.· ...
...,.,..,,,...,vn" .. •·.··.....··.•Pf_ .•_ ..... ••-_· ..• ... ·•.~.-• .....·.. ·.········.·······ti··.·.-."'-_··.·.·_ .. ·.·•··. Jn__(;llt_· ..·.ve_.· .. ·-.·_.·.·_·.. ·.·.~---.·_ll··.·_.,..._·.·.·.·.·.•.·._·_m_._·.•···· ~·.,. ~I"()~,_C::~: J*:!~·•-. \fxll~f~l •.~ ..·•.···1._. C~d • , j .··
2. Outcomes Report
By March 31, 2018 and March 31, 2023, UBCM will provide to Canada and British Columbia and make publicly available, an Outcomes Report that will report in aggregate on the degree to which investments are supporting the progress in British Columbia towards achieving the following program benefits:
a) beneficial impacts on communities of completed Eligible Projects; b) enhanced impact of GTF as a predictable source of funding including incremental spending; and c) progress made on improving Local Government Asset Management.
The Outcomes Report will present performance data and a narrative on program benefits. The partnership committee will develop and approve a methodology for reporting on performance in respect of each of the program benefits.
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FGT - 48 SCHEDULE E- Communications Protocol
1 Purpose
1.1. The provisions of this Communications Protocol apply to all communications activities related to any GTF funding which may be delivered by Canada, including allocations, and Eligible Projects funded under this Agreement. Communications activities may include, but are not limited to, public or media events, news releases, reports, web articles, blogs, project signs, digital signs, publications, success stories and vignettes, photo compilations, videos, advertising campaigns, awareness campaigns, editorials, awards programs, and multi-media products.
1.2. Through collaboration, the Parties agree to work to ensure clarity and consistency in the communications activities meant for t!le public.
2 Joint communications approach
2.1. The Parties agree to work in collaboration to develop a joint communications approach that identifies guiding principles, including those related to the provision of upfront project information, project signage, and planned communications activities throughout the year. This joint communications approach will have the objective of ensuring that communications activities undertaken each calendar year communicate a mix of Eligible Project types from both large and small communities, span the full calendar year and use a wide range of communications mediums.
2.2. The Parties agree that the initial annual joint communications approach will be finalized and approved by the partnership committee within 60 working days following the inaugural meeting ofthe partnership committee.
2.3. The Parties agree that achievements under the joint communications approach will be reported to the partnership committee once a year, or more frequently as requested by the partnership committee.
2.4. The Parties agree to assess the effectiveness of the joint communications approach on an annual basis and, as required, update and propose modifications to the joint communications approach. Any modifications will be brought to the partnership committee for approval.
3 Inform Canada on allocation and intended use of GTF funding for communications planning purposes
3.1. UBCM agrees to provide to Canada upfront information on planned Eligible Projects and Eligible Projects in progress on an annual basis, prior to the construction season. The Parties will agree, in the joint communications approach, on the date this information will be provided. The information will include, at a minimum:
Ultimate Recipient name; Eligible Project name; Eligible Project category, a brief but meaningful Eligible Project description; amount of Funds being used toward the Eligible Project; and anticipated start date.
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FGT - 49 3.2 The Parties agree that the above information will be delivered to Canada in an electronic format deemed acceptable by Canada. This information will only be used for communications planning purposes and not for program reporting purposes.
3.3 The Parties agree that the joint communications approach will define a mechanism to ensure the most up-to-date Eligible Project information is available to Canada to support media events and announcements for Eligible Projects.
4 Project siqnaqe
4.1 The Parties and Ultimate Recipients may each have a sign recognizing their contribution to Eligible Projects.
4.2 At Canada's request, Ultimate Recipients will install a federal sign to recognize federal funding at Eligible Project site(s ). Federal sign design, content, and installation guidelines will be provided by Canada and included in the joint communications approach.
4.3 Where British Columbia, UBCM or an Ultimate Recipient decides to install a permanent plaque or other suitable marker with respect to an Eligible Project, it must recognize the federal contribution to the Eligible Project(s) and be approved by Canada.
4.4 The Ultimate Recipient is responsible for the production and installation of Eligible Project signage, or as otherwise agreed upon.
4.5 British Columbia or UBCM agree to inform Canada of signage installations on a basis mutually agreed upon in the joint communications approach.
5 Media events and announcements for Eligible Projects
5.1 The Parties agree to have regular announcements of Eligible Projects that are benefiting from GTF funding that may be provided by Canada. Key milestones may be marked by public events, news releases and/or other mechanisms.
5.2 Media events include, but are not limited to, news conferences, public announcements, official events or ceremonies, and news releases.
5.3 A Party or an Ultimate Recipient may request a media event.
5.4 Media events related to Eligible Projects will not occur without the prior knowledge and agreement of the Parties and the Ultimate Recipient
5.5 The Party or Ultimate Recipient requesting a media event will provide at least 15 working days' notice to the other Parties or Ultimate Recipient of their intention to undertake such an event. The event will take place at a mutually agreed date and location. The Parties and the Ultimate Recipient will have the opportunity to participate in such events through a designated representative. The Parties will each designate their own representative.
5.6 The conduct of all joint media events and products will follow the Table of Precedence for Canada as outlined at http://www.pch.gc.ca/pqm/ceem-cced/prtcllprecedence enq.cfm. 25
FGT - 50 5.7 All joint communications material related to media events must be approved by Canada and recognize the funding of the Parties.
5.8 All joint communications material must reflect Canada's policy on official languages and the federal identity program.
6 Program communications
6.1 The Parties and Ultimate Recipients may include messaging in their own communications products and activities with regard to the GTF.
6.2 The Party or Ultimate Recipient undertaking these activities will provide the opportunity for the other Parties and Ultimate Recipient to participate, where appropriate, and will recognize the funding of all contributors.
6.3 The Parties agree that they will not unreasonably restrict the other Parties or Ultimate Recipient from using, for their own purposes, public communications products related to the GTF prepared by a Party or Ultimate Recipients, or, if web-based, from linking to it.
6.4 Notwithstanding Section 5 (Communications Protocol), Canada retains the right to meet its obligations to communicate information to Canadians about the GTF and the use of funding through communications products and activities.
7 Operational communications
7.1 The Ultimate Recipient is solely responsible for operational communications with respect to Eligible Projects, including but not limited to, calls for tender, construction, and public safety notices. Operational communications as described above are not subject to the federal official language policy.
7.2 Canada, British Columbia, UBCM or the Ultimate Recipient will share information promptly with the Parties should significant emerging media or stakeholder issues relating to an Eligible Project arise. The Parties will advise Ultimate Recipients, when appropriate, about media inquiries received concerning an Eligible Project.
8 Communicating success stories
British Columbia and UBCM agree to facilitate communications between Canada and Ultimate Recipients for the purposes of collaborating on communications activities and products including but not limited to Eligible Project success stories, Eligible Project vignettes, and Eligible Project start-to-finish features.
9 Advertising campaigns
Recognizing that advertising can be an effective means of communicating with the public, a Party or an Ultimate Recipient may, at their own cost, organize an advertising or public information campaign related to the GTF or Eligible Projects. However, such a campaign must respect the provisions of this Agreement. In the event of such a campaign, the sponsoring Party or Ultimate Recipient agrees to inform the other Parties of its intention, and to inform them no less than 21 working days prior to the campaign launch. 26
FGT - 51 SCHEDULE F- Asset Management
The Parties agree that the approach to integrated community sustainability planning under the First Agreement was effective in increasing the capacity of the diverse range of Local Governments in British Columbia to enhance their community's sustainability.
Building on that success, the Parties wish to maintain the program's support for building Local Government capacity to take an integrated, long-term approach to plan, build and maintain strong sustainable communities, while providing a particular focus on strengthening Asset Management within those communities.
Asset Management is a key underpinning of community sustainability because it can inform a range of investment, servicing and community planning decisions, which support maximizing Local Government investment in services and related infrastructure.
Local Governments in British Columbia exhibit varying degrees of capacity to undertake Asset Management activities and integrate Asset Management into their operational and policy decision-making frameworks. Consequently, an approach that recognizes these varying capacities will be most effective in supporting the full range of Local Governments as they work to begin or strengthen their Asset Management activities.
Given this, the partnership committee will develop an Asset Management framework to guide Local Governments in meeting their Asset Management commitment under this Agreement. The framework will support all Local Governments to build and strengthen Asset Management over the term of the Agreement while recognizing the varying capacities of Local Governments and the range of ongoing Asset Management activities.
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FGT - 52 ANNEX C: PARTNERSHIP COMMITTEE
The partnership committee will be co-chaired by three (3) members, one of which will be appointed by each of the Parties, and designated by that Party as a co-chair. The terms of reference for the partnership committee may provide that additional members of the committee may be appointed by each of the Parties, so long as the composition of the committee consists of equal representation from each of the Parties.
Replacement members may, from time to time, be appointed. The Parties agree to keep each other informed in writing of new appointments.
The committee will govern by consensus, examine issues together and, in good faith, reasonably attempt to resolve potential issues.
The committee will adopt its terms of reference, which will govern the composition of the committee and procedures in respect of its meetings. The terms of reference must be in accordance with this Agreement, and may be amended from time to time by the committee.
The committee is responsible to:
• resolve disputes that arise in relation to the administration of this Agreement, for the purposes of Section 8 (Dispute Resolution); • set strategic criteria and spending priorities for the SPF, for the purposes of Section 3.3 (Strategic Priorities Fund) of Annex B (Terms and Conditions)- this will not include approving projects or project changes; develop and approve a methodology for measuring incremental spending of GTF funding for Local Governments, for the purposes of Section 5 (Incremental Spending) of Annex B (Terms and Conditions); • develop and approve a framework for Asset Management, for the purposes of Section 7 (Asset Management) of Annex B (Terms and Conditions), within one (1) year of the effective date of this Agreement, that provides opportunities for all Local Governments, regardless of their existing capacity or level of Asset Management, to strengthen Asset Management within their communities over the term of this Agreement; • develop and approve a methodology for reporting on performance in respect of each of the program benefits, for the purposes of Section 2 (Outcomes Report) of Schedule D (Reporting); • review the detailed business case, for the purposes of Section 9.3 (Use and Recording of Funds by UBCM) of Annex B (Terms and Conditions); and • assign representatives for each of the Parties to develop an annual joint communications approach; to approve that approach; to receive an annual report on communications undertaken; and to consider any proposed modifications to the annual joint communications approach, for the purposes of Schedule E (Communications Protocol).
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FGT - 53 6.1
Intergovernment and Finance Committee Federal Gas Tax Task Force Terms of Reference
The Federal Gas Tax Task Force is a sub-committee of the Intergovernment and Finance Committee. The Task Force provides advice and recommendations directly to the Metro Vancouver Board on the use of funds available to the region through the Greater Vancouver Regional Fund.
Task Force Responsibilities Within the scope of the Board Strategic Plan, Board policies, and the 2014 Administrative Agreement on the Federal Gas Tax Fund in British Columbia, the Task Force is responsible for developing, for the Board’s consideration, criteria and process for approving expenditures from the Greater Vancouver Regional Fund (GVRF). Using the criteria and process, the Task Force reviews eligible transportation projects proposed each year by Translink and makes recommendations to the Board on funding approvals. Specific Task Force responsibilities include the following:
Guide the establishment of criteria and process for assessing the eligibility and desirability of transportation projects that are proposed each year by Translink for funding under the GVRF Engage Translink in discussions on the purpose of the GVRF, the Board’s expectations regarding the use of funds, and the criteria to consider when identifying proposals for funding Liaise, as necessary, with UBCM on the criteria and process for awarding funds, and on the projects recommended for funding Oversee the development of communications materials and strategies designed to raise awareness among transportation users and regional taxpayers of investments by Metro Vancouver, using the region’s GVRF, in regional transportation infrastructure Explore options for ensuring that Metro Vancouver retains effective control over the disposition of transportation assets that are funded, in whole or part, using GVRF monies
Task Force Membership and Meetings The Chair, Vice Chair and members are appointed annually by the Chair of the Metro Vancouver Board. The Task Force meets as required, at the call of the Chair, except during August and December. A quorum of 50% plus one of the Task Force membership is required to conduct Task Force business.
Task Force Management The Task Force Chair, or in the absence of the Chair the Vice-Chair, is the chief spokesperson on matters of public interest within the Task Force’s purview. For high profile issues the role of spokesperson rests with the Metro Vancouver Board Chair or Vice Chair. On technical matters or in cases where an initiative is still at the staff proposal level, the Chief Administrative Officer or a senior staff member is the appropriate spokesperson. Where necessary and practical, the Board Chair, Task Force Chair and Chief Administrative Officer confer to determine the most appropriate representative to speak.
The Chief Administrative Officer assigns a General Manager to serve as Manager for the Task Force. The Task Force Manager is responsible for coordinating agendas and is the principal point of contact for Task Force members. 10730257 January 7, 2015 FGT - 54 Federal Gas Tax Task Force - On Table Item 6.2