Intergovernment and Finance Committee Federal Gas Tax Task Force
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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 the Chair Message from 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 OverviewOrganization 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 Year’s The 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 ReportPerformance 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: ($) ($) ($) ($) SummaryPerformance 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 DiscussionManagement 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 ReportFinancial 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