REGULAR MEETING OF CITY COUNCIL
CITY HALL, 10105 12A STREET, DAWSON CREEK
MONDAY, FEBRUARY 18, 2013 AT 8:35 A.M.
AGENDA Page
1. CALL MEETING TO ORDER
2. NEW/COUNCILLOR BUSINESS
6-11 2.1 Memo from Councillor McFadyen re: Float Plane Base.
3. MINUTES
12-22 3.1 Minutes of the Previous Meetings of Council for adoption: 1. Minutes of the Regular Meeting of Council (February 4, 2013). 2. Minutes of the Special Meeting of Council (February 8, 2013).
4. BUSINESS ARISING
5. CORRESPONDENCE
23 5.1 Letter from the Nawican Friendship Centre (January 24, 2013) re: Donation to their "Building Renovation Fund".
24-34 5.2 Letter from the Spirit of the Peace Powwow Society (February 1, 2013) re: Sponsorship for the 8th Annual "Spirit of the Peace" Competition Powwow June 14-16, 2013.
35 5.3 Letter from the Honours and Awards Secretariat (January 28, 2013) re: Order of British Columbia - 2013 Call for Nominations.
36 5.4 Memo from the Union of BC Municipalities (January 15, 2013) re: UBCM Membership.
Page 1 of 305 REGULAR MEETING OF CITY COUNCIL MONDAY, FEBRUARY 18, 2013
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6. DELEGATIONS (9:00 A.M.)
37 6.1 Patsy Nagel and Delegation, Peace River District Women's Institute, in attendance re: the "Women's Institute Week" Proclamation.
38 6.2 Anne Haycock, Peace Country Roots Group (Historical Society), in attendance re: "Heritage Week" Proclamation.
39 6.3 Denis Labelle - President, Jerimy Earl - Vice President, Jim Kennedy - Director and Kathleen Connolly - Executive Director, Dawson Creek & District Chamber of Commerce, in attendance re: "Chamber of Commerce Week" Proclamation.
6.4 Larry Moody and Alex Reschney, Rotary Noon Club, in attendance re: Proposed Bridge on Walking Path.
6.5 Doug Ragan, in attendance re: Choosing a Contractor.
40-64 6.6 Jack Gordon, Sigma Risk Management Inc., in attendance re: City of Dawson Creek Corporate Risk Management Plan. (11:00 am)
7. REPORTS
65-68 7.1 Report No. 13-034 from the Director of Corporate Administration re: Core Values for the Practice of Public Participation Policy.
69-72 7.2 Report No. 13-040 from the Director of Corporate Administration re: R. Moch Electric Ltd. Request to Sublease.
73-85 7.3 Report No. 13-044 from the Director of Corporate Administration re: RCMP Lease Agreement - 70 Vic Turner Road.
86-87 7.4 Report No. 13-042 from the Deputy Director of Corporate Administration re: Appointment of Bylaw Enforcement Officers.
88-95 7.5 Report No. 13-037 from the Chief Financial Officer re: Dawson Creek Exhibition Association Partnering Request.
96-107 7.6 Report No. 13-041 from the Chief Financial Officer re: Pouce Coupe Water Supply Agreement.
108-114 7.7 Report No. 13-032 from the Director of Community Services re: Green Vehicle & Green Operating Practices for Municipal Buildings Policies.
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7. REPORTS
115-208 7.8 Report No. 13-038 from the Director of Community Services re: Geothermal/Geopower Feasibility Study.
209-210 7.9 Report No. 13-031 from the Director of Infrastructure & Sustainable Development re: Road Construction and Paving Contract.
211-224 7.10 Report No. 13-043 from the Director of Infrastructure & Sustainable Development re: Development Permit Application for Western Canadian Properties Group (Harvest View) Ltd., 8600 & 8700 17th Street.
225-226 7.11 Report No. 13-035 from the Fire Chief re: RFP 2013-31 - Pumper Truck.
227-267 7.12 Report No. 13-036 from the Deputy Chief Financial Officer re: Corporate Risk Review - Final Report.
8. BYLAWS
8.1 Zoning Bylaw No. 4159, 2013 (1409 100 Avenue, Violet Cooper/Elaine Haney) for consideration of third reading and adoption.
268-276 8.2 Report No. 13-039 from the Director of Infrastructure & Sustainable Development re: Zoning Amendment Bylaw No. 4161, 2013 - 1405 100 Avenue - Ronald & Marion Crowe. 1. Zoning Amendment (13-02) Bylaw No. 4161, 2013 for consideration of first two readings.
277-281 8.3 Report No. 13-028 from the Director of Corporate Administration re: Council Procedure Amendment Bylaw No. 4160. 1. Council Procedure Amendment Bylaw No. 4160, 2013 for consideration of first three readings.
9. MAYOR'S BUSINESS
282 9.1 Federation of Canadian Artists First Prize Award - "This Way!" by Mary Parslow.
10. DIARY
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10. DIARY
10.1 Calvin Kruk Centre for the Arts Update.
11. CONSENT CALENDAR
283 11.1 Consent Calendar items to be received: 1. Report No. 13-018 from the Director of Corporate Administration re: Items to be released from previous In-Camera minutes
12. STRATEGIC PRIORITIES CHART
284 12.1 Strategic Priorities Chart.
13. QUESTION AND ANSWER PERIOD
14. MEDIA QUESTION PERIOD
15. COMMITTEE OF THE WHOLE REPORTS (11:00 A.M.)
285-286 15.1 Report from the Sergeant West.
287-289 15.2 Report from the Fire Chief.
290-292 15.3 Report from the Director of Corporate Administration.
293-295 15.4 Report from the Chief Financial Officer.
296-302 15.5 Report from the Director of Infrastructure & Sustainable Development.
303-305 15.6 Report from the Director of Community Services.
16. RECESS TO CLOSED MEETING
16.1 Resolution to move into the Meeting of Council Closed to the Public.
Agenda Item 3.1 - Section 97 (1) (b) ‘Minutes’ - as previously noted. Agenda Item 7.1 - Section 90 (2) b) information relating to negotiations between the muncipality and a provincial government or the federal government or both. Agenda Item 10.1 - Section 90 (1) (d) the security of the property of the
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16. RECESS TO CLOSED MEETING
muncipality.
17. RECONVENE OPEN PORTION OF THE MEETING TO ADJOURN
Page 5 of 305 Item 2.1
MEMO
TO: Mayor and Council DATE: February 13, 2013
FROM: Councillor McFadyen
SUBJECT: Float Plane Base
Background As part of the Airport Sustainability Plan Report process, McElhanney Consulting Services Ltd. and Patricia Maloney & Associates were requested to create a report on the Float Plane Base which is attached for your information.
Recommendation Based on the information contained in this report, it is recommended that the following resolution be passed by Council:
“That the memo from Councillor McFadyen re: Float Plane Base and the McElhanney Float Plane Addendum dated March 8, 2012 be received; further that the Dawson Creek Regional Airport Float Plane Base be decommissioned and decertified.”
Respectfully submitted,
Terry McFadyen Councillor
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.1"- McElhanney
March 8, 2012 Our File: 211102841-0
City of Dawson Creek 10105 - 12A Street Dawson Creek BC V1G 4G4
Attention: Brenda Ginter Director of Corporate Administration
Dear Brenda:
City of Dawson Creek Airport Sustainability Report - Float Plane Addendum
The issue of the existing Float Plane Base was included in the scope of work to be considered by the consulting team at the time of writing the original Airport report (December 2011). However, it was not included in the scope of work as directed by the municipality due to a lack of information available regarding the operation of the Float Plane Base .
For this reason, the consulting team did not feel confident providing any significant feedback relating to the future of the Float Plane Base.
At the request of the City of Dawson Creek and the Dawson Creek Airport Manager (February 2012), McElhanney Consulting Services and Patricia Maloney and Associates have been asked to expand upon the original Airport Study and prepare an addendum specific to the Float Plane Base that exists directly north of the existing runway.
There are a number of outstanding concerns associated with the facility, including on-going maintenance, facility safety, frequency of use and changes in runway configuration.
History
The Dawson Creek Float Plane Base was originally licensed in 1964 by then Dawson Creek Mayor Bob Trail! and has served the community of Dawson Creek for many years. The facility was designed from the outset to be utilized as a sewage treatment facility and provide additional air service to the community. It was constructed to
1 hUp:/Iwww.airhighways.com/dawsoncrk.htm _ last accessed March 6, 2012
12-03-09 02841-0L 1 Rpt Float Plan Addendum
13160 88th Ave Tel 6045960391 Surrey Be Fax 604 596 8853
C,~elebrating 10DVcar.> of Success www.mcelh an ney.com/mcsl
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Page 2 Our File: 2111 02841-0
accommodate most amphibious planes and, during its operation, has served a wide range of float / amphibious aircraft including firefighting aircraft. The 'runway' originally consisted of an approximately 5,300 foot long strip of open water running east - west. However, the runway has recently been physically and effectively shortened by the installation of water reclamation infrastructure to accommodate the City of Dawson Creek's need to provide water to local industry.
Rationale and Discussion
It should be noted that, during the last several years, the level of use of the float plane base has significantly declined and the costs to maintain the facility have increased. It has been determined that capital upgrades are required to continue the safe operation of the Float Plane Base. There are no existing commercial users of the facility nor are there any regularly scheduled flights that necessitate the on-going operation of the float plane facility.
In effect, the Float Plane Base does not generate any direct revenue for the City. While the consultant team was in Dawson Creek for the community consultation meetings, it was noted that there is a group of people in the community who feel that the Float Plane Base has historical significance. While this may be true, the reality of modern day maintenance costs and aviation realities challenge the notion of retaining the facility for purely historic preservation purposes.
Issues and Considerations
Landings
The number of landings at the Float Plane Base is very low and there are no landing fees or user fees associated with the facility that would generate any revenue to offset the required infrastructure investment required to maintain the facility. In the last 7 years, there have been less than 400 landings with a single peak year in 2009 when there were 2 89landings •
2 The total landing numbers exclude both 2010 and 2011 due to the fact that the Float Plane Base was closed for the construction of the water supply infrastructure.
12-03-09 02B41-0L 1 Rpt Float Plan Addendum
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Table 1: Total Float Plane Base Landings - 2004-2011
100
90 f""(,J BO I ..u 70 il ~ 60 I F _f!!! 50 - I- - 40 I- - I- -- I- - I- -- 30 ~ I- - I- - ...... 20 J f!!! 10 J. I- - I- - - I-- o 1 '- - '- - '- '- 2004 2005 2006 2007 200B 2009 2010 2011
It should also be noted that the landings can be attributed to 2 or 3 individual users. There are no regularly scheduled flights or commercial charters operating out of the Float Plane Base. Therefore, the Dawson Creek float plane base cannot be compared to commercial facilities elsewhere in the province as it is unique.
Maintenance and Upgrading
City Staff have estimated that approximately 45,000 cubic metres of sediment needs to be removed from the float plane lagoon in order to facilitate safe operations, reduce airplane wake, protect the existing berms and ensure sufficient depth throughout the lagoon for planes. Additionally, new wooden floating docks are required and a concrete ramp that allows amphibious aircraft to be transferred to dry land for maintenance and storage. It should also be noted that, at present, the Airport Manager has identified challenges in maintaining the existing lagoon berms due to the presence of muskrats.
In short, the existing facilities need significant repairs and / or replacements. The estimated costs for updating and repairing the facilities are:
Docks: $30,000 Dredging and Re-Profiling of Lagoon: $300,000 Ramp Replacement: $20,000 Total: $350,000
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These updates and repairs are urgently required if the facility is going to continue to be used as part of the Dawson Creek Airport; however, the level of investment required of the municipality to support the operations of only a few private operators is difficult to justify from a financial and municipal budget perspective.
Recommendation
Based on the information provided to the consulting team by the City of Dawson Creek, it is our recommendation that the City of Dawson Creek takes the necessary steps to decertify the Float Plane Base as a formal takeoff and landing venue for amphibious aircraft.
This recommendation is based upon the follOWing :
• personal observations of the facility by the consultant team; • the perceived cost effectiveness of investing $350,000 to support less than 100 landings per year; • the aviation and float plane community's reluctance to pay user or landing fees to supplement the cost of the upgrades or maintenance of the float plane base; • the use of general tax revenue (assuming no grants are available for the capital upgrades) for the benefit of such a small user group; and • the need for the City to operate all public facilities in a safe, accessible and functional manner and the potential liability if the upgrades are not completed;
Options for continued operation of the float plane base include the following.
1. Should the City of Dawson Creek choose to keep the facility open and certified, it should initiate user fees and seek community and corporate financial support in an amount equal to or greater than the annual maintenance costs and the amortized capital costs. 2. The City of Dawson Creek could seek an operator for the Float plane Base to either purchase or lease the facility. The new owner / tenant would then accept the costs of maintaining the facility and bringing the facility up to required standards. This could include a flyers group, the historical society or a corporation who may see the benefit of a· private airstrip.
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In summary, the challenge and concern related to the Float Plane Base is that the maintenance and capital costs far outweigh any justification for these costs to be borne solely by the municipality.
Yours truly, McELHANNEY CONSULTING SERVICES LTD. PATRICIA MALONEY & ASSOCIATES
Gregory O. Mitchell Patricia Maloney M.PL., MClP, LEED Green Associate BAA, MClP, RPP Project Manager / Senior Planner Senior Airport Planner
email: [email protected]
12·03·09 02B41-0L 1 Rpt Float Plan Addendum
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MINUTES OF THE REGULAR MEETING OF CITY COUNCIL City Hall, 10105 – 12A Street, Dawson Creek, BC on MONDAY, FEBRUARY 4, 2013
COUNCIL PRESENT STAFF PRESENT Mayor Mike Bernier - Chair Jim Chute, Chief Administrative Officer Councillor Duncan Malkinson Shelly Woolf, Chief Financial Officer Councillor Terry McFadyen Brenda Ginter, Director of Corporate Administration Councillor Charlie Parslow Tyra Henderson, Recording Secretary Councillor Cheryl Shuman Kevin Henderson (3:00 pm) Councillor Shaely Wilbur Janet Loiselle (3:00 pm)
ABSENT Councillor Sue Kenny
ALSO IN ATTENDANCE Josh Anderson, New Harvest Media Inc. Will Stodalka, Dawson Creek Daily News Kirby Cohler, CJDC Jill Earl, Northeast News Kathleen Connolly, Dawson Creek Chamber of Commerce Samantha Gibeault, Tourism Dawson Creek Coordinator Anne Haycock, Heart & Stroke Foundation (Item 6.1) Margaret Sutton, Larry & Judy McGowan, Ruth & John Rose, Marie Close, Crystal Wheat, Betty Thompson, and Pamela Fritsche, Visually Impaired Support Group (Item 6.3) (9-9:30 am) Dale Campbell, Mile O Parks Society (Item 6.4) Kit Fast, Dawson Creek Art Gallery Curator (Item 6.5) Jonathan Gilman, Rams Swim Club (Item 6.6) Mike Zygun, Rod Folster, Bonnie & August Lehman,(Item 7.1) (8:30 am – 9:30 am) Mark Sutton Andrew Kadziolka & Garrett Coutts, Item 13.1
1. CALL TO ORDER Call to order The Chair called the meeting to order at 8:30 am.
2. NEW AND COUNCILLOR BUSINESS 2.1 Airport business Councillor McFadyen reported that he is scheduled to attend a meeting with airline representatives, the Airport Manager, and the Chamber of Commerce Manager during a planned trip to Vancouver for the Local Government Leadership Academy.
2.2.1 1. Council Procedure MALKINSON/SHUMAN, Bylaw – Roberts That the memo from Councillor Malkinson re: Council Procedure Bylaw be received; Rules deletion further, that staff be directed to amend Council Procedure Bylaw No. 3696 by removing the reference to the edition of the Roberts Rules of Order in Part 1, Section 3 - Application of Rules of Procedure. CARRIED 2.2.2 2. Bylaw 3696 – MALKINSON/SHUMAN, adjourn at noon That staff be directed to amend Council Procedure Bylaw No. 3696 by deleting Rule 5, (2)c) in Part 2 which states that regular meetings shall end at 12 noon unless a 2/3 majority resolves otherwise. CARRIED
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2.2.3 Bylaw 3696 – MALKINSON/WILBUR, Agenda deadline That staff be directed to amend Council Procedure Bylaw No. 3696 by changing the requirement for submission of items for the Council agenda from the Wednesday prior to the meeting to the Monday prior to the meeting and to change the requirement to publish Agenda deadline the agenda at least 48 hours prior to the meeting to no later than 4:30 pm on the (continued) Wednesday prior to the meeting for Regular Meetings.
Mayor Bernier stated that he does not support earlier deadlines for agenda submissions and publication as he feels the earlier deadlines will be difficult for the public, primarily developers who would need to submit applications much earlier in order to be considered by Council.
Councillor Wilbur stated that she would appreciate the additional time to review the agenda as requested by Councillor Malkinson.
Councillor Malkinson stated that he does not see the justification to withhold a large agenda from publication ‘just in case’ items are submitted for addition to the agenda as he would like to see agendas earlier to allow additional time for review.
The Chair called the Question to the Motion.
OPPOSED: MAYOR BERNIER, COUNCILLORS SHUMAN & MCFADYEN MOTION DEFEATED
2.2.4 3. Chair ability to MALKINSON/SHUMAN, reserve decision That staff be directed to amend Council Procedure Bylaw No. 3696 by striking Subsection deleted 2 of Section 19, ‘Points of Order’, which allows the chair to reserve a decision until the following meeting. CARRIED OPPOSED: COUNCILLOR MCFADYEN 2.2.5 Conduct and debate MALKINSON/WILBUR, provisions of Bylaw That staff be directed to amend Council Procedure Bylaw No. 3696 in Part 4, Section 20, 3696 Subsection 9, Division A by adding “if it is necessary for the progress of the discussion.” following the word “only” and deleting paragraphs (i) and (ii). DEFEATED UNANIMOUSLY 2.2.6 4. Bylaw 3696 MALKINSON/PARSLOW, adjournment That staff be directed to amend Council Procedure Bylaw No. 3696 by deleting provisions Subsections 1 and 2 of Part 4, Section 27 and renumbering the remaining subsections accordingly. CARRIED 2.3 Council updates Members of Council had the opportunity to provide updates on their respective activities in the community and region.
Spring Clean Up Councillor Wilbur announced that Pitch in Week is April 21st – 27th and the annual Spring dates Clean Up Campaign is scheduled for May 11th with a focus on tree awareness.
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3. MINUTES 3.1 5. Minutes PARSLOW/MCFADYEN, That the minutes of the Regular Meeting of Council (January 21, 2013) be adopted. CARRIED 4. BUSINESS ARISING 4.1 Ec Dev Strategy Councillor Shuman noted her disappointment that the Economic Development Strategy was deleted from the Strategic Priorities at the January 21st Regular Meeting.
5. CORRESPONDENCE 5.1 6. NCLGA Annual SHUMAN/MALKINSON, Membership Dues That the letter from the North Central Local Government Association (January 17, 2013) re: Annual Membership Dues be received; further, that staff be authorized to pay the invoice in the amount of $5316.46. CARRIED 5.2 7. Nominations for MCFADYEN/MALKINSON, 2013/14 NCLGA That the letter from the North Central Local Government Association (January 17, 2013) re: Executive Call for Nominations for 2013-2014 NCLGA Executive be received; further, that staff be directed to forward a letter of endorsement to the Peace River Regional District for Councillor Shuman as a regional representative and to the NCLGA to nominate Councillor Wilbur as a Director at Large. CARRIED 5.3 8. Wood Works! SHUMAN/WILBUR, Request That the letter from Wood Works! BC (January 2013) re: Request to Pass a Wood First Policy, Bylaw or Resolution be received for information. CARRIED 5.4 9. Measuring Up the SHUMAN/MCFADYEN, North Awards That the letter from the North Central Local Government Association (January 22, 2013) re: Measuring Up The North - Award of Excellence Nominations be received for information. CARRIED
Vary agenda Mayor Bernier varied the agenda to continue with regular agenda items until 9:00 am.
7. REPORTS 7.1 10. Mile Zero Flying WILBUR/SHUMAN, Club’s Requests That Report No. 13-026 from the Director of Corporate Administration be received; further, that the City respond to the Mile Zero Flying Club’s requests as follows: 1. That the road closure request be approved, from the City’s Hanger east to the intersection of the Cat Rental Store; 2. That additional mowing during the month of June be approved, further that the added expense to remove ruts and debris from proposed parking areas be denied; 3. That the extension of the bus route servicing the Multiplex be denied, with the suggestion that the Flying Club approach a local provider for shuttle buses; 4. That the request for use of the City owned hanger be approved; 5. That staff time required to install orange field fencing be denied; further that Airport staff work with Flying Club volunteers to reduce the City’s staffing costs relating to the installation and removal of the orange field fencing;
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Flying Club event 6. That the relaxation of the Sign Bylaw be denied; 7. That the request for the use of the Encana Events Centre as one of the City’s rent- free options be denied; further, that the Flying Club negotiate directly with the Encana Events Centre. 8. That the request to have the terminal building open 24 hours during the event be approved, except during CMA (Hawk Air) scheduled flights where no access will be provided to the apron area or the terminal access on airside.
In response to Councillor Parslow’s question regarding the rolling of the field, and with the indulgence of Council, Mr. Zygun was invited to address Council. Mr. Zygun stated that the flying club is happy to work with the Airport Manager to prepare the field for the event and that extensive rolling of the field is not expected by the Club.
The Chair called the Question to the Motion. CARRIED
Resume agenda Mayor Bernier returned to the regular agenda to hear scheduled delegations.
6. DELEGATIONS (9:00AM) 6.1 New Year’s Baby Mayor Bernier presented new parents Kailey and Riley Berge with a plaque Bentley Berge commemorating the birth of the first baby of 2013 in Dawson Creek, Bentley Berge. Master Berge was born at 1:36 am on January 1, 2013. Mayor Bernier congratulated the family on their new addition and wished them well.
6.2 Heart Month Anne Haycock, Heart and Stroke Foundation of Canada accepted the proclamation of Proclamation February 2013 as “Heart Month” in Dawson Creek.
6.3 White Cane Week Margaret Sutton and delegation from the Visually Impaired Support Group accepted the Proclamation proclamation of February 3rd – 9th as “White Cane Week” in Dawson Creek.
6.4 Mile 0 Park Society Dale Campbell, President of the Mile 0 Park Society, attended to provide Council with a 2012 Report report on the Society’s activities for 2012. He thanked Council for their support in 2012 and the cooperation from staff where possible on such projects as the re-landscaping and the new roof on the Sudeten Hall. He noted that the board elected consists of a majority of new to the board members at the annual general meeting in April. The new board approved a loan for expansion of the campsite which was never sought as a subsequent decision was made to upgrade the existing pads from cash flow. RV revenues were down approximately 25%, due to a slowdown in the oil & gas industry.
Mr. Campbell noted the planned activities for 2013, including renovations of the shower house and construction of a replica service station. He thanked the local Rotary Clubs for the $15,000 donation in 2012 and thanked the Historical Society members for the many hours of volunteer work at the Village.
Mayor Bernier thanked Mr. Campbell for the update and wished the Society well in 2013.
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6.5 DC Art Gallery 30th Kit Fast, Curator, Dawson Creek Art Gallery, attended to request support for the Art Anniversary Gallery's 30th Anniversary Celebrations, which will include a logo contest, proposed street banners, expansion of the Art Walk, artist workshops at Pioneer Village, and visiting artist workshops.
He stated that the sponsorship would be used for the street banners printed on wind resistant material for the centre medians on 8th Street which promote the art gallery and the visual and cultural heritage of the community, in support of tourism efforts. He noted that the gallery applies for available grant funding on an ongoing basis, including a current application for funding of a community project through CJDC and a provincial “Creative Communities” grant. Mr. Fast requested e a letter of support from Council for the gallery to be used with future grant funding applications.
Mr. Fast invited Council and the Public to the new exhibition showcasing regional photography opening on Thursday, February 7th at 7 pm.
Mayor Bernier thanked Mr. Fast for the presentation and advised that Council would consider the requests later in the meeting.
RECESS: Recess Mayor Bernier declared a recess at 9:30 am to allow the final delegation to prepare his powerpoint presentation.
RECONVENE: Reconvene Mayor Bernier reconvened the meeting at 9:40 am and resumed the agenda at Item 6.6
6.6 Rams Swimming & Jonathan Gilman, Head Coach of the Rams Swimming and Triathlon Club, attended to give Triathlon Club – his perspective on the proposed fees relating to aquatic user groups receommended by Response to Fees Brian Johnston of PERC as part of the Recreation Fees & Charges Review. Mr. Gilman requested that Council consider a lower rate for lane rentals at the pool to promote increased use of the facility for competitive swimmers and events.
RECESS: Recess Mayor Bernier declared a recess following delegations at 10:00 am.
RECONVENE: Reconvene The Chair reconvened the meeting at 10:04 am and resumed the agenda at Item 7.2.
7.2 11. TUP 13-01 @ MALKINSON/MCFADYEN, 1401 102nd Avenue That Report No. 13-017 from the Director of Infrastructure & Sustainable Development re: Temporary Use Permit 13-01 for 1401 - 102 Avenue be received; further, that Council approve issuance of Temporary Use Permit No. 13-01 for a billiard and pool hall and amusement arcade with accessory retail sales and food/drink service at 1401 - 102 Avenue for a period of 3 years. CARRIED
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7.3 12 DP 13-05 @ 721 MCFADYEN/SHUMAN, Highway 2 That Report No. 13-016 from the Director of Infrastructure & Sustainable Development re: Development Permit application from K4 Ventures Ltd. be received; further, that Development Permit No. 13-05 for the construction of the commercial/light industrial building at 721 Highway 2 be authorized in principle and issued upon successful completion of the required 10 day notification period and receipt of the financial security. CARRIED 7.4 13. DP 13-04 @ WILBUR/SHUMAN, 10217 10th Street That Report No. 13-019 from the Director of Infrastructure & Sustainable Development re: Development Permit application from Brass Scissors Hair Design Ltd. be received; further, that Development Permit No. 13-04 for the re-construction of the commercial building at 10217 - 10 Street be authorized in principle and issued upon successful completion of the required 10 day notification period and receipt of the financial security. CARRIED 7.5 14. DP 12-31 @ PARSLOW/SHUMAN, 8600 & 8700 17th That Report No. 13-024 from the Director of Infrastructure & Sustainable Development re: Street Development Permit application from Western Canadian Properties Group be received; further, that Development Permit No. 12-31 for the development of a 44-unit townhouse development at 8600 & 8700 – 17th Street be authorized in principle and issued upon successful completion of the required 10 day notification period and receipt of the financial security. CARRIED 7.6 15. Athletic MCFADYEN/MALKINSON, Commission That Report No. 13-015 from the Executive Assistant re: Athletic Commission Appointment Appointment be received; further, that Kathleen Connolly be appointed for a three year term on the Dawson Creek Athletic Commission to expire February 2016. CARRIED 7.7 16. User Fees and PARSLOW/SHUMAN, Charges Policy That Report No. 13-023 from the Deputy Director of Community Services re: User Fees and Charges Policy be received; further, that Council approve the User Fees and Charges for Provided Parks and Recreation Services Policy as presented.
Council discussed the request from Mr. Gilman on behalf of the RAMS swim club for a decreased lane rental fee and the principles outlined in the consultant report which analyzed current fees and proposed a framework to guide future fees. CARRIED 7.8 17. RFQ No. 2013-02 WILBUR/SHUMAN, Fuel & Lubricant That Report No. 13-025 from the Deputy Director of Infrastructure & Sustainable Requirements Development re: Request for Quotations No. 2013-02 Fuel & Lubricant Requirements be received; further, that the Dawson Co-operative Union be awarded the supply of fuel and lubricant for City operations for the three year period, February 1, 2013 through December 31, 2015. CARRIED
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8. BYLAWS 8.1 18. Bylaw 4159 PARSLOW/MCFADYEN, That Report No. 13-021 from the Director of Infrastructure & Sustainable Development re: Zoning Amendment Bylaw No. 4159, 2013 be received; further, that Zoning Amendment (13-01) Bylaw No. 4159, 2013, rezoning 1409 - 100 Avenue from C-2 (Commercial - General Zone) to RS-2 (Residential – Single Duplex Zone), be given first and second readings; and further, that staff be directed to publish the required notice for a formal public hearing. CARRIED 9. MAYOR’S BUSINESS 9.1 Mayor Bernier initiated discussion regarding Item 6.5, the delegation of Kit Fast, Art Gallery Curator requesting sponsorship and support.
19. Art Gallery PARSLOW/WILBUR, sponsorship THAT The City sponsor the Dawson Creek Art Gallery Banner Project in the amount of $5,000 in celebration of the 30th anniversary and also provide a letter of support to the Art Gallery for their use in soliciting grant funding. CARRIED 9.2 Eric Church concert The Chief Administrative Officer noted that the Eric Church concert scheduled for this evening will result in very busy restaurants and streets in the community, as it is the largest concert ever in the community, based on ticket sales.
10. DIARY
11. CONSENT CALENDAR 11.1 20. Consent Calendar SHUMAN/MALKINSON, That the following item be received for information: 1. Letter from the Canada Revenue Agency (January 10, 2013) re: Community Visit Program. CARRIED 12. STRATEGIC PRIORITIES CHART 12.1 Strategic Priorities The Chief Administrative Officer reported that the Chart was updated as directed at the Chart Update January 21st meeting of Council and will be updated following the Fair Share Funding Report scheduled for later in the meeting.
13. QUESTION & ANSWER PERIOD 13.1 Andrew Kadziolka re: Andrew Kadziolka attended to ask Council “Do you think that the selling of water to Water Sales to industry is a good way to ensure water availability into the future?” Industry Mayor Bernier thanked Mr. Kadziolka for the question and encouraged him to attend the Public Meeting regarding water later this spring. He reported that the industry does pay a premium for the water and it is the current direction of Council that water will continue to be sold to industry, unless the community tells Council they would like them to discontinue this policy at the water meetings. Also in response to Mr. Kadziolka, Mayor Bernier agreed that more recycled water could be used by industry, with the goal that all available reclaimed water be used before making potable water available to industry.
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Minutes of the Regular Meeting of City Council – February 4, 2013 Page 8 of 9
14. COMMITTEE OF THE WHOLE
15. MEDIA QUESTION PERIOD
16. RECESS TO CLOSED 16.1 21. Recess to Closed MALKINSON/SHUMAN, That Council move into the Closed Meeting of Council at 10:35 am, pursuant to Section 90 and 97 of the Community Charter for the purpose of discussing the following items, as indicated below:
Agenda Items 3.1 & 5.1 – Section 97 (1) (b) ‘Minutes’ – as previously noted. Late Item 7.1 regarding the Calvin Kruk Centre – Section 90 (1) (d) Security of the property of the municipality. CARRIED 17. RECONVENE TO OPEN Reconvene to Open Mayor Bernier reconvened the meeting open to the public at 11:10 am and set the time to (Recess) which to adjourn as 3:00 pm.
RECONVENE(3:00 pm) Reconvene Mayor Bernier reconvened the meeting at 3:00 pm to hear from Evan Parliament, Gagnon Strategix regarding Fair Share Funding.
In the gallery were:
Josh Anderson, New Harvest Media Andrea Dion, CJDC Jill Earl, Northeast News Will Stodalka, Dawson Creek Daily News Kathleen Connolly, Dawson Creek Chamber Samantha Gibeault, Tourism Dawson Creek Jane Harper, South Peace Community Resources Society Alvin Stedel Paul Gevatkoff
6.7 Evan Parliament, Mr. Parliament circulated his report to Council and staff and advised that a digital version Gagnon Strategix, re: could be made available to anyone interested. Mr. Parliament referred Council to Fair Share Funding Appendix ‘G’ which illustrates the historical Fair Share funding received by the City of report Dawson Creek. He thanked the Chief Financial Officer for her assistance with provision of accurate data for use in the report.
Mr. Parliament noted that a substantial tax rate increase would be required should there be a 25% or greater reduction in Fair Share funding and Council wished to maintain current service levels, assuming no increase in assessment. He noted that comments directly from those who attended the meetings are reported on Page 16 of his final report and recommended that Council read those comments. Mr. Parliament stated his professional opinion, as noted in the report, that the City could not switch from allocating Fair Share funding from operating to capital (or vice versa), overnight without some adjustment period.. He noted that such a move would be unrealistic and the impact too profound and advocated for a continued annual decision on funding allocation of Fair Share funds, based on the current needs of the municipality. He commended the City Services Policy which identifies the spectrum of municipal services from essential to discretionary and suggested that its provisions would inform any discussion regarding allocation of Fair Share funding.
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Minutes of the Regular Meeting of City Council – February 4, 2013 Page 9 of 9
Item 6.7 Fair Share (continued)
Fair Share Report Mr. Parliament referred Council to the final report which includes a draft policy which addresses the various risk scenarios, a mitigation plan, and an implementation plan, for Council consideration.
Councillor Parslow noted that despite the identification of municipal services in the City Services Policy, he does not believe that all services deemed discretionary (such as the pool or library) would be easy to eliminate based on quality of life values in the community. Mr. Parliament suggested that Council may wish to include the public in its City Services policy review and recommended that the policy be distributed publicly to increase awareness of its existence and contents.
Mayor Bernier thanked Mr. Parliament for the presentation and advised the public that the report will be available on the City website or from Administration. The Chief Administrative Officer encouraged Council to direct their questions regarding the report directly to Mr. Parliament, who could then respond to all of Council to ensure all members of Council fully understand the report.
17. ADJOURNMENT 17.1 22. Adjourn MALKINSON/SHUMAN, That the meeting be adjourned at 3:45 pm. CARRIED
CERTIFIED A TRUE AND CORRECT COPY OF THE MINUTES OF THE REGULAR MEETING OF COUNCIL HELD MONDAY, FEBRUARY 4, 2013. Mayor Mike Bernier – Chair
BRENDA GINTER DIRECTOR OF CORPORATE ADMINISTRATION Brenda Ginter – Director of Corporate Administration
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MINUTES OF THE SPECIAL MEETING OF CITY COUNCIL City Hall, 10105 – 12A Street, Dawson Creek, BC on FRIDAY, FEBRUARY 8, 2013
COUNCIL PRESENT STAFF PRESENT Mayor Mike Bernier – Chair Jim Chute, Chief Administrative Officer Councillor Sue Kenny Shelly Woolf, Chief Financial Officer Councillor Duncan Malkinson Kevin Henderson, Director of Infrastructure & Sustainable Development Councillor Terry McFadyen Brenda Ginter, Director of Corporate Administration Councillor Charlie Parslow Jodi Maclean, City Planner Councillor Shaely Wilbur Tyra Henderson, Recording Secretary
ABSENT Councillor Cheryl Shuman
1. CALL TO ORDER Call to order The Chair called the meeting to order at 8:32 am.
2. NEW AND COUNCILLOR BUSINESS
3. MINUTES
4. BUSINESS ARISING
5. CORRESPONDENCE
6. DELEGATIONS (9:00 AM)
7. REPORTS Conflict Mayor Bernier declared a conflict with Item 7.1 and departed Council Chambers at 8:33 am. Acting Mayor McFadyen assumed the Chair.
7.1 1. DP 13-07 KENNY/MALKINSON, That Report No. 13-029 from the Director of Infrastructure & Sustainable Development re: Development Permit application from Pacific Northern Gas Ltd. and C. Chandler Contracting for 1805 97 Avenue be received; further, that Development Permit No. 13-07 for the construction of the light industrial building at 1805 97 Avenue be authorized in principle and issued upon successful completion of the required 10 day notification period and receipt of the financial security CARRIED Mayor Bernier returned to the meeting and resumed the chair at 8:35 am.
7.2 2. DP 13-06 MCFADYEN/MALKINSON, That Report No. 13-030 from the Director of Infrastructure & Sustainable Development re: Development Permit application from McCaig Real Estate Ltd. and C. Chandler Contracting for 2700 92 Avenue be received; further, that Development Permit No. 13-06 for the construction of the light industrial building at 2700 92 Avenue be authorized in principle and issued upon successful completion of the required 10 day notification period and receipt of the financial security. CARRIED
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Minutes of the Special Meeting of City Council – February 8, 2013 Page 2 of 2
8. BYLAWS
9. MAYOR’S BUSINESS
10. DIARY
11. CONSENT CALENDAR
12. STRATEGIC PRIORITIES CHART
13. QUESTIONS & ANSWER PERIOD
14. COMMITTEE OF THE WHOLE
15. MEDIA QUESTION PERIOD
16. RECESS TO CLOSED
17. ADJOURN 17.1 3. Adjournment KENNY/MALKINSON, That the meeting be adjourned at 8:37 am. CARRIED
CERTIFIED A TRUE AND CORRECT COPY OF THE MINUTES OF THE SPECIAL MEETING OF COUNCIL HELD FRIDAY, FEBRUARY 8, 2013. Mayor Mike Bernier – Chair
BRENDA GINTER DIRECTOR OF CORPORATE ADMINISTRATION Brenda Ginter – Director of Corporate Administration
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1R1~©~~~~1Q) FEB -1 2013 CITY OF DAWSON CREEK ~~c:::IVa(lMan \.}tiDuiJz;p &.1:-1.£ Uniting the Community 1:J2.0 - 10lnd AVE:n\K T(~ IZ~118l.-520~ Dawson CrE:£k, Be Vl G 2C6 fQx: 12501782.:-8'\11
January 24, 2013
Attn: Administration
City of Dawson Creek BoX# 150 Dawson Creek, BC V1G 4G4
Dear Sir/Madam:
The Nawican Friendship Centre is a non-profit, charitable organization whose mandate is to assist Aboriginal and non-Aboriginal people. We practice an "Open Door" policy and embrace persons of all cultures, regardless of origin. We offer many diverse programs designed to teach individuals life skills; from how to make positive life choices to making a home cooked meal. One of our most important programs we offer is the Soup Kitchen. It provides hungry people an opportunity to come in 3 days a week and have a healthy, filling lunch. Our Friendship Centre also plays an important role in the development of youth in our community. We regularly seek out funding opportunities and explore innovative ideas that will help improve our programming and its effectiveness.
At this time we are requesting a contribution of any amount from your organization to assist us with our "Building Renovation Fund" that would allow the Nawican Friendship Centre to implement much needed repairs such as; men's and women's public washroom, youth hallway, and main dining floor area. These much needed renovations will allow us to continue to offer quality programming for all persons of Dawson Creek and surrounding area.
We appreciate your consideration in partnering with us and becoming a prOUd supporter and sponsor of the Nawican Friendship Centre. We will continue to strive to maintain high accountability to our community members and funding authorities. We are able to make a tax deductible charitable receipt if needed. If you have any queries or you wish to know more details about our centre, please feel free to contact me at 250-782-5202. You can also email [email protected]
In Friendship,
Candace Stevenson Executive Director DMAYDR DoCA Agenda Date Jib· \9; I 2D 13 o COUNCil Docs Closed Date -- (g] CAD ~ CFo D All SR. STAFF Other ---- o DCAD 0 DIS 0 FIRE CHIEF
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~!l;~!l;~1#!l;0CiJ
rttl I Z013 Proposal for CllY OF DAWSON CREEK
8th Annual "Spirit of the Peace" Competition Powwow June 14·16, 2013
o MAYOR 0 DCA r' o COUNCIL Docs Agend. 0.1. reb 1%, 1 J, I 'S . I2SI CAD EiJ CfO 0 ALL SR. STAFF Closed Dale ---- o OCAO 0 DIS 0 fiRE CHIEf Olhe' _____
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TABLE OF CONTENTS
I, SUMMARY ," ."" ,. " .... ,,",,'" "" "'" "" "'" '" """ """ .... " ..., '" ." ...... ,." "". "" ...... ,... " """" PAGE 3
II, INTRODUCTION .. ,"", ... """ '" """ .. " .. " .. ," .. ,"" " .. ,."" .. ,"""'" "" .. " "'" """" "'" '" " .. ,""'" PAGE 4
III. NEEDSIPROBLEMS .., '" """'" ....."" " .. " .. " .. ,... ," ...... ," .. " .. " .. ,," " .. " .. ," .. ,'" " .. ,"" " .. " .. ,' PAGE 4
IV, GOALS/OBJECTIVES " .. ,"""""""" .. ,,''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''""'"'''''' PAGE 4
V, PROCEDURES/SCOPE OF WORK ,...... ,,, .. ,, ... ,, .. ,...... ,,... ,, .. ,,,, ...... ,,, ...... PAGE 4
VI. TIMETABLE ,'" " .. ,," " .. " .. ," .. " .. " .. " .. ,' ""'" """ .. " .. ,,'" "'" "" " .. " .. ,"'" '" " .. ," .. " .. ,'" " .. ,,' PAGE 5
VII. BUDGET """'" "" "" "'" "" "'" "" """'" "" "" '"'' ", ' "'" .,,' "" " .. ,."" .. ,"'" "" """'" "'" '''' """ PAGE 6
VIII. COMPETITION .. " ... ,... ,,, .. ,, .. ,... ,, .. ,, ... ,... ,, ... , .. ,... ,, ... ,,, .. ,, .. ,"",, .. ,", ...... " ' ''',,. PAGE 7
IX, LEVELS OF SPONSERSHI P"." .." " """ .. ".""."." .. .. " ..""" ."."" ..""". ,, ,,. ,, " " """."",,. PAGE 10
X. BOARD OF DIRECTORS/COMMlnEE """"""""."""",,,,,,,,,.,,,,,,.,,,,,, .. ,,,,,,,,,,.,,,,,,.,," PAGE 10
XI. ENDORSEMENTS """"".""""""",,,,,,,,,,,.,,,,, ,,,,,,,,,,,,,,,,,, ,,,.,,."".""" ".,,""""""',,.,,'" PAGE 11
XII . NEXT STEPS """.""",."".",,,,,.,,,,,,,,,,,,,,,,,,,,,.,,,,,,,,,,,,,.,,,.,,,,,,,,,,, .. "''''''''',."'".".",,.,,,. PAGE 11
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I. Summary
Ii!I The "Spirit of the Peace" Powwow Society has successfully hosted a Traditional Powwow since 2005 and is the most Northem powwow in Canada! Ii!I Our committee oonsists of approximately 18 people and the time spent on fund raising and planning is all volunteered time. A powwow weekend consists of, on average, 54 hours for each person© Ii!I A traditional powwow is an event in which everyone gathers to enjoy the beauty of Aboriginal culture through drumming, dancing and singing! Ii!I This is an aloohol and drug-free event!
II. Inlroduction
April 17, 2005, a white buffalo was bom in the Fort SI John area. The white buffalo was named "The Spirit of the Peace", after the Peace River. Native legend holds that Ihe white bison is a symbol of peace and unity, a symbol of hope and rebirth . The powwow originated with the vision of bringing the culture back to the area with drumming, dancing, and singing . The school district fonmed a powwow dance group and had elder advisors, Frank Daniels and Isabel Auger, to teach the new dancers. However, in order for the new dancers 10 dance in the powwow circutt they needed 10 be initiated in the powwow circle. The "Spirit of the Peace' Powwow was fonmed, not only to initiate dancers but to bring the culture closer to home and to share the beauty of Aboriginal culture .
Tradttional powwows are gatherings to celebrate Aboriginal culture and teachings through dance and ceremony. It is an event that brings all people together in a positive and healthy environmenl and also is a way to educate the non-Aboriginal community about Aboriginal cultUre. Our target population includes people of all ages and is open to everyone. The ceremonies are sacred and are an importanl part of Aboriginal teachings. Ii!I When hosting a traditional powwow, the host honors the attendees by providing them an honorarium each day they participate in the powwow. This includes dancers, drummers, and those people who have teepees. Ii!I The hosl also provides food for the people who camp on the powwow grounds. Ii!I The powwow volunteers also provide free meals to the elders who attend. Ii!I During a traditional powwow there is a giveaway ceremony , in which everyone in attendance is given a gift as a thank you for being part of the powwow. This is provided by the hosts of the powwow. Ii!I In addition, the expenses include sound, advertiSing, food, office expenses, etc.
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III. Needs/Problems
~ There has always been an ongoing problem in the communities with drugs, alcohol and gambling. As a result, a lot of our youth have and are being neglected and placed in-care. Also, these problems have an effect on the non-Aboriginal community in that they often stereotype the Aboriginal culture as one that is seen in a negative view. ~ In addressing these problems our traditional powwow is striving to dissipate any stereotypes that the community may have in regards to Aboriginal people . We are also continuing to increase pride and awareness within the Aboriginal population. ~ The powwow is a healthy event that benefits not only the community members but also others from all over to better understand and respect each other. In retum, gaining new relalionships while slrengthening existing ones.
IV, Goals/Objectives
~ Goal 1: To decrease negalive slereotypes of Aboriginal people. ~ Goal 2: To educate and creale awareness among Aboriginal and non-Aboriginal people . ~ Goal 3: To fosler Ihe spiritual teachings of Aboriginal culture in our youth.
V. Procedures/Scope of Work
As a society, we hold planning meelings monthly from Seplember unlil May, after which we meel every week unlilthe powwow in June. Sub committees are fonmed , wilh each committee responsible for organizing various aspects of the powwow such as public relations, elder's tent, vendors, food , grand entry, drummers, dancer registration, teepees, venue setup, security , giveaways, and volunleer recruitment. We are also advised by spirilual elders as they guide and leach us ceremonies and teachings thai are indicative 10 traditional powwows. Actual work required by each volunteer during the powwow weekend alone is over 50 hours! For example: Before Ihe powwow commences , each volunteer must be presenllo aid in setup of the area Ihey are responsible for and on average the powwow does not end until after 11 :00 pm .
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VI. Timetable
Due Date Item Details Oct 2012 Proposal List Send current list to board to review & provide feedback Nov 2012 Proposals Draft letter and package to send to Board for review Receive edits/additions from the Board Proposal packages mailed out Lefters of Support Meet with Treaty 8 Chiefs, District of Taylor, and City of Fort St John for LeHers of Support Fund Raising Apply for Raffle License Ongoina Proposat Mait outs potential sponsors Feb 2013 Posler Create Draft Poster Raffle Tickets Sell raffle tickets until draw at the powwow March 2013 Posters Get posters finalized and distributed - distribution of posters is ongoing April 2013 Secure Sound Systems by Trail or Saulteau First Nations Draft Sponsor Invitation letler Lefter of invite for our sponsors to I participate May 2013 Radio Sponsors Meet wnocal radio stations May 2013 Media Sponsors Meet w/Iocal media Chiefs Send out letters of invitation Sponsor Invitation Letter Finalized and sent out Sponsor Invitation Lisl Finalized and updated Invitalion to RCMP Distribute invitation list to guests Media Release Newspaper Ads Invitation Follow up Follow up phone calls Invitation Confirmed Create list of confirmed Media Release FINALIZED and dates set for ads to run June 2013 Meetings A weekly meeting to ensure everything is in place ,
This is a draft timeline that we use as a guide for our powwow society, This timeline changes as needed and is a summary of what we, as a committee, do throughout the year,
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VII. Budget
Tentative 2013 Budget
Sound etc
i I
Materials
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VIII. Competition
This year we have chosen to host a Competition Powwow and we are quite excited about what the competition brings!
00 Dancers and drum groups compete for prize money. 00 The number of intertribal dances is dependant on the number of drum groups. The intertribal dances are when everyone has a chance to dance! 00 Drum Contest! 00 Winner of the previous year drum competition retums as the host drum. 00 Specific areas of our budget will decrease although the number of our dancer payouts and drum payouts increases Significantly. 00 With competition will bring in more adult dancers and more drum groups!
Throughout the years we have introduced the spirit and culture to our youth through the traditional powwow. We are moving forward with the hope of attracting more experienced dancers; this will provide our youth opportunity to learn from the demonstration of their dance styles.
Below we have listed a few descriptions of the dance styles for you to enjoy©
Women's Fancy Shawl Dance
This is a women's category, their style mimics butterflies in Hight with their shawls imitating wings . Fancy shawl dancing is a newer form of dance; originating in the mid-1900s. This is a dance style that emphasizes a constant whirl of graceful jumps, spins and intricate footwork that distinguishes this dance from other women categories. The dancer wears an intricately decorated shawl with ribbon fringes, beaded bodice and other beaded accessories, moccasins and/or leggings that cover the calf with a decorated skirt.
Jingle Dress Dance
Jingle Dress is also called a Prayer Dress. There a", different stories about the origin of the dress, and it is often said that it is an Ojibwa ceremony. The dress and dance came from a dream a medicine person had to heal Maggie White when she was quite ill in her childhood. She is often referred to as the original Jingle Dress dancer.
Jingle Dresses are decorated with rolled up snuff can lids that are hung with ribbon. The ribbon is then sewed to Ihe dress, Ihe jingles are placed close enough so they can hit together, causing a beautiful sound . The sound is often compared to the sound of the rain .
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Women's Traditional
This is the oldest women's dance; it is a dance of elegance and grace. The movement is smooth and flowing. The ladies wear fine, hand-crafted buckskin or cloth dresses, decorated with intricate bead designs. Northern and southern styles will differ in the amounts of beadworl< and designs, and both are equally beautiful. The women will carT)' different cultural objects depending on their ancestry such as ; fringed shawls over one anm , eagle fans, baskets and purses.
This dance is slow, and poised . The women dance in rhythm with the Drum by slightly bending at their knees, they bob to the beat of the drum, letting the long fringe on their sleeves sway in time. This movement causes their fringes , shawls and purses to sway creating a beautiful movement that looks as if these women are floating in the circle.
Fancy Feather Dance
This is a men's category, their energetic dance style is much faster than the other men 's styles ; the quick moves of this style require agility and stamina. Fancy feather dancing originated in Oklahoma. Their regalia feature's bright ribbons, cloth as well as beedworl<, including beaded headbands, medallions, anmbands and cuffs. Their capes and aprons usually have ribbon fringes, angora anklets are wom on the fullest part of the calf. They also wear a roach on their head that includes two feathers that move freely. The two feather bustles are color coordinated with the rest of the regalia. Ribbons are usually attached to the tips of the feather as well. One is worn at the waist with the other attached to the shoulders; there may be hackle bustles which match the bustles that will be worn as anm bands .
Men 's Grass Dance
The men's grass dance is one of the oldest fonms of dance that comes from the prairies. It may come from the preparing of the ground by stomping down the grass at the beginn ing of ceremonies, while it is also said it came from the tying of sweet grass to dancer's belts. It is also said it is the male equivalent of a healing dance. Their dance style emulates the fluid and flowing movement of the prairie grass, this dance style requires flexibility and stamina . Their regalia features yam and/or ribbon , they wear shirts and pants with beaded or decorated belts, side tabs, armbands, cuffs and front and back aprons. They wear a beaded harness which can reach from the shoulders to the knees. They do not wear bustles of any kind but they do wear a roach on their heads.
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Men's Traditional Dance
The men's lradilional dance is known as Ihe Warriors Dance, Ihey are telling a story as Ihey dance. This dance portrays Ihe dancer's quest for game and distinguishes this style from other men's calegories . The Lakota's are usually crediled wilh this dance style. A large eagle feather buslle is worn on Ihe back, loud bells on Ihe ankles . They usually wear a roach but can wear olher types of headgear as well, such as a fealher hal, a wolfs head, etc. They wear a breast plate, a beaded or intricately decorated vest, an apron , arm bands and cuffs with a decorative belt. This dancer will also carry a variety of ceremonial objects including the eagle wing fan in his hands.
Men's Chicken
This dance is originally pertormed during a specifK: ceremony and the origin of the dance is often debated as being either Cree or Blackfoot. The dance is considered to have a strong spiritual meaning. The ceremonies are still practiced , and men will also dance this dance during Powwow. They move slowly around the circle, while mimicking the actions of a prairie chicken.
Men's chicl Men's Buckskin This dance is said to originate from the Blackfoot people . It is a dance that is only done by Leaders , Chiefs and well respected men. During the dance men will wear eagle headdress's, which must be earned, and a Buckskin suit with beaded accents. Drummers will often play slower songs because this dance is usually danced by older men. 9 Regular Council with Page 32 of 305 Committee of the Whole - 18 Item 5.2 IX. Levels of Sponsorship We appreciale all of our Sponsors support and Ihey will be acknowledged in differenl way depending on Ihe level of Sponsorship. Gold Level - 15,000 Banner including Sponsorship level wilh Company's namenago in lhe Arena Company dignilaries in~led 10 participale in Grand Enlry Company lisled on Powwow Facebook Page as a Sponsor including Sponsorship level Company lisled in post-event Thank You advertisement in local Newspaper Formal thank you to the company during the Powwow's opening speech Sitver Levet - $10,000 Banner including Sponsorship level with Company's namenago In the Arena Company dignitaries invited to participate in Grand Entry Company listed on Powwow Facebook Page as a Sponsor including Sponsorship level Company listed in post-event Thank You advertisement in local Newspaper Formal thank you to the company during Ihe Powwow's opening speech Bronze Levet - $5,000 Banner including Sponsorship level with Company's namenago in Ihe Arena Company dignitaries invited to partiCipate in Grand Entry Company listed on Powwow Facebook Page as a Sponsor including Sponsorship level Company listed in post-event Thank You advertisement in local Newspaper Turquoise Level- $1,000 Banner including Sponsorship level with Company's namenago in the Arena Company dignitaries invited to participate in Grand Entry X. Board of Directors Our Board of Directors Connie Greyeyes - President Coral Auger - Vice President Marlene Greyeyes - Treasurer Susan Auger - Secretary Alison Manitowabi - Board Memeber Iris Lepine - Board Member Larry Evans - Board Member Committee consists of the Board and committee members© 10 Regular Council with Page 33 of 305 Committee of the Whole - 18 Item 5.2 XI. Endorsements We have many partners and we truty appreciate all that they do to help us bring this beautiful event annually to the District ofTaylor. The District ofTaylor has donated the use of the venue and manpower, the Treaty 8 Tribal Association who have allowed their staff to volunteer at this event, host meetings, donate printing and monetary donation . We also have sponsors that contribute monetary donations annually such as Spectra, the City of Fort St John, and Shell Canada . XII, Next Steps If your organization would like to sponsor our event please contact: Marlene Greyeyes c/o Spirit of the Peace Powwow Society 10917-101" Avenue, Fort St John, BC V1J 2C1 [email protected] - Email 250-785-6258 (Phone) If requested, we will provide you with a copy of our financial report for the event to demonstrate our accountability of your donation. We will also provide a report on event challenges, successes and highlights. In reviewing our budget you would like your donation towards a specific area, please indicate this request with your donation. For example: if you would like your donation to be used towards Dancer Payouts, we will be sure that you will be recognized for this donation throughout the powwow weekend as well as through our advertisements. Thank you for your time reviewing our proposal. t 1 Regular Council with Page 34 of 305 Committee of the Whole - 18 Item 5.3 r [pJ[g©[gllW'[g[Q) - Honours and Awards Secretariat FEB - 820 13 I CITY OF DAWSON CREEK January 28,2013 His Worship Mike Bernier and Councillors Mayor of the City of Dawson Creek Box 150 Dawson Creek BC VI G 4G4 Dear Mayor and Councillors: Re: Order of British Columbia - 2013 Call for Nominations It is time once again to "call for nominations" for the Order of British Columbia, the Province's highest award for excellence and outstanding achievement. Any person or group is welcome to nominate a deserving individual as candidate for appointment to the Order of British Columbia. I seek your assistance in informing your municipality about this opportunity to take part in the public recognition of its outstanding citizens. Could you bring this up at your next council meeting? An independent Advisory Council chaired by the Chief Justice of British Columbia considers nominations to the Province's highest award for excellence and outstanding achievement. Three hundred and thirty-one distinguished British Columbians have been honoured since 1990. For your information, a report listing all of the recipients of the Order is available on our website htlp://www.orderofbc.gov.bc.ca. If you would like this report broken down by City/Town, please contact our office. Nomination forms for the Order are available from the Honours and Awards Secretariat in Victoria, (250) 387-1616, on the website: http://www.orderofbc.gov.bc.caor from the nearest Service BC Centre. Completed nominations must be received by the Secretariat by March 1,2013 to be considered this year. Nominations received after this will automatically be forwarded for consideration next year. Your continuing support of the Order of British Columbia is very much appreciated. Yours sincerely, o MAYOR OOCA o COUNCIL 0 DCS Agenda Date ~ IK . 2ol3 o CAD 0 CFO 0 ALL SR. STAFF Closed Date ______Karen Felker o DCAO 0 DIS 0 FIRE CHIEF Other Coordinator ------ Telephone: 250387-1616 Fax: 250356-2814 P.O. Box 9422, Stn Prav Govt, Victoria, British Columbia, Canada V8W 9V1 Regular Council with Page 35 of 305 Committee of the Whole - 18 Item 5.4 MEMO January 15, 2013 TO: Mayor & Council | Chair & Board FROM: Mayor Mary Sjostrom, UBCM President RE: UBCM MEMBERSHIP It is with great pleasure that I write on behalf of UBCM to all local governments requesting your continued membership in our organization. A new year isupon us, and with it comes reflection on 2012 activities, and thought given to our collective goals for the year ahead. 2012 markedrd straightour 33 year with 100% membership. We also welcomed the Uchucklesaht Tribe Government, one of the members of the Maa-Nulth First Nation, as UBCM’s newest member. This strong base enabled UBCM to achieve many significant outcomes in 2012, including the following: • Received $1.12 Billion under Gas Tax and Public Transit Program • Collaborated with the Local Government Leadership Academy to offer eight newly elected officials training sessions across the province • Launched The Compass, UBCM’s weekly e-newsletter and the organization’s primary vehicle for member communication • Established a Local Government Finance Select Committee in response to the Province’s Expert Panel on Taxation, and the Ministry’s internal review of municipal taxation • Presented to the Expert Panel on Business Tax, and tabled a submission with that Panel • Provided feedback to the Province on the implementation of the Auditor General for Local Government Act, including making recommendations for audit council membership, and presenting background and context about local government to the audit council • Established the Local Government Contract Management Committee in coordination with the Province to oversee the new RCMP contract 2013 will see the continuation of work on several of the files above, a provincial election, and a federal budget with significant implications for local government. With all of this activity, it is crucial that BC local governments maintain a strong and unified presence. In order for UBCM to continue to act as our collective voice, an increase of two percent in member dues will be reflected in your 2013 dues invoice. Please help UBCM maintain its momentum and signal your support by renewing your UBCM membership for 2013. www.ubcm.ca Regular Council with Page 36 of 305 Committee of the Whole - 18 Item 6.1 WHEREAS, the British Columbia Women's Institute is an educational organization for homemakers who, by working together, expand their skills, broaden their interests and work to improve conditions in the home, the community and around the world through service, self-fulfillment and sociability; AND WHEREAS, they sponsor and promote programs in agriculture, citizenship, home economics, health and welfare, and cultural pursuits; AND WHEREAS, they function at the local, regional, provincial, national and international level with a range of activities broad enough to encompass the interests of women; NOW THEREFORE, I do hereby proclaim the week of FEBRUARY 17th to 23rd as WOMEN'S INSTITUTE WEEK in Dawson Creek Seal Mayor Regular Council with Page 37 of 305 Committee of the Whole - 18 Item 6.2 WHEREAS, Heritage Week is celebrated in communities throughout BC every year, commencing on National Heritage Day, the third Monday in February; AND WHEREAS, in recognition of historic houses and neighbourhoods, the theme for this year s Heritage Week celebration is Good Neighbours Heritage Homes and Neighbourhoods ; AND WHEREAS, neighbourhoods and districts from earlier eras promote a layered sense of community history and contribute to visual appeal and variety, which enhances community attractiveness and liveability; AND WHEREAS, communities throughout BC mark Heritage Week to celebrate their unique history and heritage; NOW THEREFORE, I do hereby proclaim the week of February 18th 24th, 2013 as "HERITAGE WEEK" in Dawson Creek Mayor Regular Council with Page 38 of 305 Committee of the Whole - 18 Item 6.3 WHEREAS, the Dawson Creek Chamber of Commerce is a volunteer business organization working together to achieve a better quality of life, support business and the local economy, and to build a strong community; Chamber Week brings awareness to the important work these organizations do to stimulate local economies, promote their community, and engage in multi- level advocacy which benefits the entire province. As the key representatives of their business community to government, Chambers actively listen to business needs and continually articulate them to government at all levels; Chambers of Commerce support businesses through benefit programs, services and education. Being community based means that Chambers are funded entirely by their members, events and sponsorship. This community investment is what drives Chambers of Commerce to directly support and stimulate local economies, and work collaboratively to create vibrant communities around the province. NOW THEREFORE, I do hereby proclaim February 18th 22nd as CHAMBER OF COMMERCE WEEK in Dawson Creek Seal Mayor Regular Council with Page 39 of 305 Committee of the Whole - 18 Committee of the Whole Regular Council with - 18 Page 40 of 305 Sigma Risk Management Item 6.6 February 18, 2013 Committee of the Whole Regular Council with 1. Complete a comprehensive risk identification as a baseline. 2. Assess current risk tolerance within the organization. - 18 3. Complete a risk analysis to examine the severity and likelihood of risk, and the interconnectedness of risks, resulting in a prioritization of risks, in order of highest to lowest exposure and potential consequence, to be addressed during strategic planning. 4. Preparation of a risk management plan and system framework. 5. Prepare a risk management policy. Page 41 of 305 6. Present findings to Council. Item 6.6 2 Committee of the Whole Regular Council with - 18 Plato (circa 340 BC) The problem with the future is that more things might happen than will happen. Page 42 of 305 Item 6.6 3 Committee of the Whole Regular Council with Plato (circa 340 BC) The problem with the future is that more - 18 things might happen than will happen. Niels Bohr (circa 1957) Prediction is very difficult, especially about the future. Page 43 of 305 Item 6.6 4 Committee of the Whole Regular Council with - 18 Page 44 of 305 Item 6.6 5 Committee of the Whole Regular Council with policy and procedures - 18 roles and responsibilities reporting risk categories risk appetite Page 45 of 305 Item 6.6 6 Committee of the Whole Regular Council with events - 18 RISK REGISTER EVENTS Risk Category Number of Events Business 7 Political 4 Organizational 9 Compliance 9 Operational 42 TOTAL: 71 Page 46 of 305 Item 6.6 7 Committee of the Whole Regular Council with likelihood of occurrence next 3 years (probability) - 18 impact ($) risk assessment workshop wisdom of the crowds Page 47 of 305 Item 6.6 8 Committee of the Whole Regular Council with - 18 plot the likelihood and impact of the events on the risk matrix along with risk appetite curve determine key risks assign risk ownership Page 48 of 305 Item 6.6 9 Committee of the Whole Regular Council with $100 Tau = $1.5 million - 18 Tau = $3 million $10 $1 SizeLoss of ($millions) amber zone $0 0% 5% 10% 15% 20% 25% 30% 35% 40% Page 49 of 305 Event Likelihood (Probability Over Next Three Years) Item 6.6 10 Committee of the Whole Regular Council with $100.00 Tau = $1.5 million P1 P4 Tau = $3 million Risk Register Events Error Bound (Tau = $3 mm, Ex = 50%, Ey = 50%) OP2 $10.00 OP15 P3 C9 OP1 C1 OR1 - 18 $1.00 B6 P5 amber zone SizeLoss of ($millions) $0.10 $0.01 0% 10% 20% 30% 40% 50% 60% Event Likelihood (Probability Over Next Three Years) Event Code Event B6 Cost Overrun on Capital Project P1 Loss of Fair Share Funding P3 Provincial Moratorium on Hydraulic Fracturing P4 Failure to Make a Cost-Effective Decision with Respect to Water Supply Risk P5 Mayor Elected MLA C1 Loss of Records (permits, inspections, property details) Page 50 of 305 C9 Contamination at the Decommissioned 115 Avenue Landfill Site OR1 Failure of Succession Plan OP1 Flood (25 year) OP2 Flood (250 year) OP15 Inadequate Water Supply Item 6.6 11 Committee of the Whole Regular Council with Risk Risk Owner KEY 1. Flood Infrastructure/Finance 2. Inadequate Water Supply Infrastructure - 18 3. Loss of Fair Share Funding CAO/Finance 4. Provincial Moratorium on Hydraulic Fracturing CAO 5. Failure of Succession Plan CAO 6. Failure to Make a Cost-Effective Decision with Respect to CAO Water Supply Risk AMBER 7. Cost Overrun on Capital Project Infrastructure 8. Loss of Records at City Hall Infrastructure/Finance 9. Contamination at Decommissioned 115 Ave. Landfill Site Infrastructure Page 51 of 305 Item 6.6 12 Committee of the Whole Regular Council with reduce likelihood - 18 reduce impact reduce both best (but expensive): reduce both to zero Page 52 of 305 Item 6.6 13 Committee of the Whole Regular Council with 15% likelihood of $1 million overrun - 18 largest project: $5 million water/sewer project mitigation: 1. better engineering definition (less scope creep) 2. deferral of tender: better timing and costs 3. summer construction Page 53 of 305 Item 6.6 14 Committee of the Whole Regular Council with 3% likelihood of $2 million impact - 18 mitigation: digitize records if costs to eliminate the risk < $200,000: makes sense can do Page 54 of 305 Item 6.6 15 Committee of the Whole Regular Council with 1% likelihood of $5 million impact - 18 the only known “unknown” environmentally risk owner: risk needs better definition Phase 1 and 2 Environmental Site Assessment being considered Page 55 of 305 Item 6.6 16 Committee of the Whole Regular Council with 1% likelihood of $15 million impact (100 year - 18 flood) mitigation: insurance (a bit expensive) reduces impact by factor of 10 Page 56 of 305 Item 6.6 17 Committee of the Whole Regular Council with - 18 4% likelihood of $9 million impact impact estimate based upon trucking cost mitigation: many alternatives Page 57 of 305 Item 6.6 18 Committee of the Whole Regular Council with 2% likelihood of $45 million impact - 18 independent review just completed; no help mitigation: advocacy; prepare for the downside in 2020? Page 58 of 305 Item 6.6 19 Committee of the Whole Regular Council with - 18 10% likelihood of $10 million impact a challenge to mitigate mitigation: advocacy, lobbying and education Page 59 of 305 Item 6.6 20 Committee of the Whole Regular Council with 50% likelihood of $1.5 million impact - 18 again, tricky; conventional wisdom is not the solution Organizational Review to address mitigation strategies Page 60 of 305 Item 6.6 21 Committee of the Whole Regular Council with 15% likelihood of $40 million impact - 18 seemingly largest risk mitigation: 1. ensure proper decision frame 2. define the civic risk tolerance and preferences 3. provide good information on doable alternatives 4. inform (but don’t manipulate) the political decision process Page 61 of 305 Item 6.6 22 Committee of the Whole Regular Council with precipitation Watershed Kiskatinaw River River Water Pumphouse - 18 evaporation k 3 and seepage Hanson (400 m ) Booster Pump evaporation Hart (30k m3) and seepage evaporation Trail (300k m3) and seepage trucking Water Treatment Plant (as required) (13k m3/d) Booster Pump Pouce Coupe k 3 Parkhill (7.5 m ) Demand Page 62 of 305 Booster Pump Dawson Creek k 3 Demand (6 m /d) Item 6.6 23 Committee of the Whole Regular Council with 1. Complete a comprehensive risk identification as a baseline. 2. Assess current risk tolerance within the organization. - 18 3. Complete a risk analysis to examine the severity and likelihood of risk, and the interconnectedness of risks, resulting in a prioritization of risks, in order of highest to lowest exposure and potential consequence, to be addressed during strategic planning. 4. Preparation of a risk management plan and system framework. 5. Prepare a risk management policy. 6. Present findings to Council. Page 63 of 305 Item 6.6 24 Committee of the Whole Regular Council with Risk Risk Owner KEY 1. Flood Infrastructure/Finance - 18 2. Inadequate Water Supply Infrastructure 3. Loss of Fair Share Funding CAO/Finance 4. Provincial Moratorium on Hydraulic Fracturing CAO 5. Failure of Succession Plan CAO 6. Failure to Make a Cost-Effective Decision with Respect to CAO Water Supply Risk AMBER 7. Cost Overrun on Capital Project Infrastructure 8. Loss of Records at City Hall Infrastructure/Finance 9. Contamination at Decommissioned 115 Ave. Landfill Site Infrastructure Page 64 of 305 Item 6.6 25 Item 7.1 REPORT TO COUNCIL DATE: February 8, 2013 REPORT NO.: 13-034 SUBMITTED BY: Brenda Ginter FILE NO.: 1-1-10 Director of Corporate Administration SUBJECT: Core Values for the Practice of Public Participation PURPOSE To provide Council with a draft policy for consideration regarding Core Values for the Practice of Public Participation. SUMMARY/BACKGROUND Holding a Community Engagement Workshop is one of the 2013 Operational Strategies for the department of Corporate Administration. Prior to moving forward with this community engagement workshop, Council was requested to review a document that was adopted by the International Association for Public Participation (IAP2). The purpose of IAP2’s “Core Values for the Practice of Public Participation” is to “help make better decisions which reflect the interests and concerns of potentially affected people and entities.” Should Council choose to adopt a policy with a similar set of core values, then the policy would be used as the foundation for the City’s public communication efforts. The consultant that is hired to facilitate the upcoming community engagement workshop would need to ensure their session(s) align with the newly adopted policy. The responses received by Council regarding the IAP2’s Core Values are summarized as follows: 1. Mayor Bernier Something should be mentioned about "Public participation is designed to respect the opinions for those involved". Number 5, 6 and 7 seem repetitive "participant" – may need wordsmithing. 2. Councillor Parslow I believe adopting a set of core values re community engagement might bring Council to a solid platform for engaging the public. IAP2’s look fine to me. We need to cross reference these with the City’s guiding principles regarding governance. 3. Councillor McFadyen This set of core values seems very strong – it may give the wrong impression to the Regular Council with Page 65 of 305 Committee of the Whole - 18 Item 7.1 Report re: Core Values for the Practice of Public Participation Page 2 of 3 public, suggesting they have a right to be involved in every decision of Council. The IAP2’s “Core Values for the Practice of Public Participation” was used as a starting point for the City’s Core Values for the Practice of Public Participation Policy. The draft policy included with this report remains very similar to the IAP2’s version with the following considerations being made: A statement was added to ensure that public participation is designed to respect the opinions of all those involved. The two points included in the Governance Section of the City’s Guiding Principles were cross referenced with the IAP2 Core Values for the Practice of Public Participation, and they both follow the same vision; with the Core Values providing a more comprehensive version in a user-friendly point form. A statement was added to the policy indicating its purpose is to provide direction on how public participation will be implemented. The intention is not to increase public participation on every issue that comes to Council, just to provide guidance when additional public participation is directed by Council in regards to a specific issue. The public currently has opportunities to provide input such as responding to a 30 day review period, signing up for the Question and Answer period, attending as a delegation to Council, or by communicating directly with the Mayor. ALTERNATIVES 1. Council may adopt the policy as presented. 2. Council may choose to amend the policy. 3. Council may refer the policy back to staff for further research. IMPLICATIONS (1) Social Adopting a set of Core Values for the Practice of Public Participation will provide a framework for engaging members of the public on issues that directly affect them. (2) Environmental N/A (3) Personnel The amount of staff time required to meet the core values for public participation will vary. If increased public participation is requested by Council, the specific issue will be reviewed to assess the level and type of public participation required – i.e. workshop, community meeting, mailed or emailed survey, etc. (4) Financial It is expected that most public consultation costs can be accommodated within the City’s Public Relations budget. This budget of $34,000 is used mainly for the City’s promotional items (the majority of which is distributed through Tourism), and also includes funds for promotional advertising and Mayor/Council attendance at various community events. Last year’s budget to actual left approximately $5,000 that could accommodate some Regular Council with Page 66 of 305 Committee of the Whole - 18 Item 7.1 Report re: Core Values for the Practice of Public Participation Page 3 of 3 additional public consultation costs. Larger projects that require more involved public consultation or the assistance of an outside communication consultant will be budgeted separately. GUIDING PRINCIPLES Governance – We will strive to make decisions that reflect the needs and desires of our community by providing opportunities for engaged, active citizens to help create and participate in developing solutions for pressing issues. STRATEGIC PRIORITIES This new policy is part of the Corporate Administrations Operational Strategies – Community Engagement Workshop IMPLEMENTATION/COMMUNICATION Staff will proceed as directed by Council. Should the policy be approved, it will be posted on the City’s website for a 30 day review period. If no responses are received, it will be incorporated in the City’s Policy Manual. Should there be any responses received during the review period, they will be presented to Council for consideration. If no responses are received, and the policy is incorporated into the City’s Policy Manual, City staff will develop procedures to align with these core values. Each issue that requires public participation will be dealt with on an individual basis – taking into consideration the core values listed in the new policy. RECOMMENDATION That Report No. 13-034 from the Director of Corporate Administration re: Core Values for the Practice of Public Participation Policy be received; further, that the following policy be approved pending the required 30 day review period. Respectfully submitted, APPROVED FOR AGENDA BY CAO ORIGINAL SIGNED BY Brenda Ginter Director of Corporate Administration /abg Attachments - Policy Regular Council with Page 67 of 305 Committee of the Whole - 18 Item 7.1 Policy – Council CORE VALUES FOR THE PRACTICE OF PUBLIC PARTICIPATION The Council of the City of Dawson Creek directs that: Although Council is elected to make decisions on behalf of the citizens of Dawson Creek, some of those decisions will benefit from additional public participation. Approving the following set of core values will provide a solid platform for engaging the public, especially when additional public participation is requested for a specific issue. The purpose of adopting a statement of core values on public participation will assist Council to make better decisions that reflect the interests and concerns of the citizens, and will assist staff in the development and implementation of public participation processes. The following set of core values was based on those developed and adopted by the International Association for Public Participation (IAP2), and were slightly modified to better suit the needs of the citizens of the City of Dawson Creek. Core Values for the Practice of Public Participation 1. Public participation is based on the belief that those who are affected by a decision have a right to be involved in the decision-making process. 2. Public participation is designed to respect the opinions of all those involved. 3. Public participation includes the promise that the public's contribution will influence the decision. 4. Public participation promotes sustainable decisions by recognizing and communicating the needs and interests of all participants, including decision makers. 5. Public participation seeks out and facilitates the involvement of those potentially affected by or interested in a decision. 6. Public participation seeks input from participants on how they wish to participate. 7. Public participation provides the information that is necessary to participate in a meaningful way. 8. Public participation communicates to participants how their input has affected the decision. APPROVED BY COUNCIL: DATE: Regular Council with Page 68 of 305 Committee of the Whole - 18 Item 7.2 REPORT TO COUNCIL DATE: February 13, 2013 REPORT NO.: 13-040 SUBMITTED BY: Brenda Ginter FILE NO.: Agreement File Director of Corporate Administration SUBJECT: R. Moch Electric Ltd. Request to Sublease PURPOSE To provide Council with information regarding a request from R. Moch Electric Ltd to sublease two lots out of the eight lots they currently lease from the City. SUMMARY/BACKGROUND A request was received on February 6th from R. Moch Electric Ltd. to sublease two lots out of the eight that they are currently leasing from the City on 115th Avenue. (letter attached) The current lease is for the purposes of equipment storage only and the rent is $6,770 per year. It is a five year term beginning on July 5, 2012 and allows for the Tenant to sublease only if it is approved by Council. ALTERNATIVES 1. Council may approve or deny the request to sublease. 2. Council may choose to refer the bylaw back to staff for further review. GUIDING PRINCIPLES We will have a reputation for acting with integrity and will earn the trust of stakeholders by modeling competence and anchoring behaviour on enduring values. STRATEGIC PRIORITIES N/A IMPLEMENTATION/COMMUNICATION If the sublease is approved by Council, R. Moch Electric Ltd. will be required to provide the City with a copy of their sublease with Advantage Relocation. A consent letter would be prepared by the City to specify the proposed sublease terms such as the properties involved, the rent, and the term (which would be one day less than the five year term with R. Moch Electric). Administration will also ensure that any additional insurance requirements of the sublease are met. As the required notice of lease has already been advertised for these properties, no further notification regarding the sublease would be required. Regular Council with Page 69 of 305 Committee of the Whole - 18 Item 7.2 Report re: R. Moch Electric Ltd. Request to Sublease Page 2 of 2 RECOMMENDATION That Report No. 13-040 from the Director of Corporate Administration re: R. Moch Electric Ltd request to sublease be received; further, that the request to sublease #500 and #504 – 115th Avenue to Advantage Relocation be approved; further that the purpose of the sublease be only for storage and parking large vehicles, that the rate be set at $1692.50 per year and that the term of the sublease expire one day before the current lease with R. Moch Electric Ltd. Respectfully submitted, APPROVED FOR AGENDA BY CAO ORIGINAL SIGNED BY Brenda Ginter Director of Corporate Administration BG/cf Regular Council with Page 70 of 305 Committee of the Whole - 18 Item 7.2 ~ocJJ ~L~CTQ.IC PO Box 2116 IR1rg©[gn~rg[Q) Dawson Creek, BC V1 G 4K8 (P) 250-782-2618 (F) 250-782-2698 FEB - 0 20 13 CITY OF DAWSON CREEK The Corporation of the City of Dawson Creek PO Box 150 Dawson Creek, BC VI G 4G4 To Mayor and Council Members Re: Lease agreement made between R. Moch Electric Ltd. And the City of Dawson Creek on July 5, 2012 We, the tenant (R. Moch Electric Ltd.) would like to ask permission to sublease two lots #9 and #10 addressed as 500 & 504 - 115th Avenue. The lease would be to advantage Relocation and the purpose would be for storage and parking of large vehicles. Please refer to section 24 of the agreement which is attached for your convenience. We have also attached a map showing the property and the lots marked as sub-lease. The amount of the lease fee would be proportional to the number of lots divided into $6,770.00 as follows: $6,770.00 7 8 lots total = $846.25 per lot 2 lots x $846.25 = $1,692.50 per year. Thank you for taking the time to consider our proposal and we look forward to hearing from you in the near future. Regards, ~~ Ron Moch, President R. Moch Electric Ltd. o MAYOR f2J DCA Agenda Date F-eb. l~l 2013 o COUNCil Docs Closed Date ______CAD CFO All SR. STAFF ~ 0 0 Other ______o DCAD 0 DIS 0 FIRE CHIEF Regular Council with Page 71 of 305 Committee of the Whole - 18 Item 7.2 Lease Agreement –R. Moch Electric Ltd. Page 7 24. No Assignment or Sublease – The Tenant may not assign this Lease or the benefit of this Lease, or sublet the Premises or any part of the Premises, without the prior written consent of the Landlord, nor may the Tenant charge, mortgage or encumber or purport to charge, mortgage or encumber the Tenant’s interest in the Premises or this Lease without the prior written consent of the Landlord. The Landlord may withhold such consents at its sole discretion and without reason. 25. Termination Due to Default – If and whenever (a) the Tenant fails to pay any rent or other amount owing under this Lease when due, whether or not demanded by the Landlord; (b) the Tenant fails to observe or perform any of its obligations under this Lease and the Tenant has not, within seven days after notice from the Landlord specifying the default, cured the default, or if the cure reasonably requires a longer period, the Tenant has not commenced to cure the default within the seven day period and thereafter does not diligently pursue the cure of such default; (c) re-entry is permitted under other terms of this Lease; (d) the Term or any of the goods or chattels of the Tenant on the Premises are seized by a creditor or the Tenant receives a notice from a creditor that the creditor intends to realize on security located on the Premises; (e) a receiver is appointed to control the conduct of the business of the Tenant on or from the Premises; (f) the Tenant becomes bankrupt or insolvent or takes the benefit of any legislation in force for bankrupt or insolvent debtors; (g) proceedings are instituted for the winding-up or termination of the corporate existence of the Tenant; (h) without the consent of the Landlord, the Tenant abandons or attempts to abandon the Premises or disposes of the bulk of its goods and chattels on the Premises; (i) the Term or any of the goods or chattels on the Premises are at any time seized or taken in execution or attachment by any creditor of the Tenant or under bill of sale or chattel mortgage; (j) a writ of execution issues against the goods and chattels of the Tenant; (k) the Tenant makes any assignment for the benefit of creditors or becomes insolvent or bankrupt; or (l) the Tenant permits a builders lien to arise in respect of the Premises and to remain registered against title to the Premises for more than 60 days; then the Landlord may re-enter and take possession of the Premises as though the Tenant or other occupant was holding over after the expiration of the Term and this Lease may, at the Landlord’s option, be immediately terminated by notice left at the Premises. Regular Council with Page 72 of 305 Committee of the Whole - 18 Item 7.3 REPORT TO COUNCIL DATE: February 13, 2013 REPORT NO.: 13-044 SUBMITTED BY: Brenda Ginter FILE NO.: Agreement File Director of Corporate Administration SUBJECT: RCMP Lease Agreement – 70 Vic Turner Road PURPOSE To request Council consideration of a five year Lease Agreement between the City of Dawson Creek and the RCMP for storage space at 70 Vic Turner Road. SUMMARY/BACKGROUND The RCMP are currently using a portion of City land out at the Airport (70 Vic Turner Road) for storage purposes, and wish to enter into the attached agreement with the City. The RCMP previously rented space in the City’s garage located at City Hall, at a similar rate, and have since moved out to the airport location. The portion of space included in the rental agreement is a total of 62.2 square metres of storage bay space as well as 14.5 square metres for their sea container located outside of the storage bay. The Deputy Director of Community Services and the RCMP have agreed upon a rate of $3,600 per year, payable by monthly installments of $300. The agreement is attached for Council’s review. ALTERNATIVES Council can either approve or deny the attached lease agreement. IMPLICATIONS (1) Social N/A (2) Environmental N/A (3) Personnel N/A (4) Financial $3,600 per year, payable at $300 per month. Regular Council with Page 73 of 305 Committee of the Whole - 18 Item 7.3 Report re: RCMP Lease Agreement – 70 Vic Turner Road Page 2 of 2 GUIDING PRINCIPLES We will have a reputation for acting with integrity and will earn the trust of our stakeholders by working to develop positive relationships. STRATEGIC PRIORITIES N/A IMPLEMENTATION/COMMUNICATION If approved by Council, the City will publish the required “notice of intention to lease” in the local paper. Following the two week notification period, the Lease Agreement will be signed by Mayor and the Director of Corporate Administration and a completed copy will be provided to the RCMP. RECOMMENDATION That Report No. 13-042 from the Director of Corporate Administration re: RCMP Lease Agreement be received; further, that the lease agreement between the City and the RCMP regarding a defined portion of space at 70 Vic Turner Road be approved at a rate of $3,600 per year for a five year term beginning January 1, 2013. Respectfully submitted, APPROVED FOR AGENDA BY CAO ORIGINAL SIGNED BY Brenda Ginter Director of Corporate Administration /abg Attachment – Lease Agreement Regular Council with Page 74 of 305 Committee of the Whole - 18 Item 7.3 Royal Canadian Gendarmerie royale Mounted Police du Canada E1400-2698 Dawson Creek Storage THIS LEASE dated for reference the 20th day of November, 2012. BETWEEN THE CITY OF DAWSON CREEK (hereinafter referred to as the "Landlord") AND HER MAJESTY THE QUEEN in Right of Canada, As represented by the Minister responsible for The Royal Canadian Mounted Police (hereinafter referred to as the "Tenant") (hereinafter referred to jointly as the "Parties") WHEREAS: A. the Landlord is the owner of the land described as L1 PL PGP42279, Sec 12, TP 78, R 15 W6M, Peace River District, PID 024202291, and having a civic address of 70 Vic Turner Road, British Columbia; B. the Tenant wishes to occupy a portion of space at the said location; and C. the Parties have agreed to enter into this Lease; NOW THEREFORE in consideration of the rents, covenants and agreements reserved and contained, the Landlord and the Tenant hereby agree each with the other as follows: 1. Area, Ingress and Egress 1.1. The Landlord does hereby demise and lease unto the Tenant all that portion of space further described as a total of 62.2 square metres storage bay and space for the Tenant's 14.5 square metres sea container. (hereinafter referred to as the "Premises") 1.2. Together with the right of ingress and egress for the Tenant's employees, servants, agents, customers and invitees, and the use of entrances, lobbies, hallways, stairways, driveways, parking areas, sidewalks, common loading and stopping areas in and about the land and Premises as they may apply. (hereinafter referred to as the "Common Areas") Asset and Procurement Management, 657 West 37th Avenue, Vancouver British Columbia, V5Z lK6 Regular Council with Page 75 of 305 Committee of the Whole - 18 Item 7.3 Page 2 E1400-2698 2. Term st 2.1. The Lease shall be for a term of five years commencing on the First (1 ) day st of January, 2013 and terminating on the Thirty-First (31 ) day of December, 2017. 2.2. Prior to the commencement of this Lease, the Tenant occupied and used a portion of the Premises and paid rent up to the date of commencement of the Term of the Lease. The Parties agree that the terms and conditions of this Lease will apply to any issue that arose during the prior occupation by the Tenant and that remains outstanding at the commencement of the Term of the Lease. 2.3. The Landlord hereby grants to the Tenant the right to early termination of this Lease without penalty; HOWEVER, notice of termination shall be given in writing three (3) months prior to the date of said termination. 2.4. If upon the expiration of the term of this Lease, the Tenant continues to occupy the Premises without any express agreement as to a new term, the Tenant shall be a monthly occupant only at a monthly rent equal to the instalments of rent hereby reserved and otherwise on the same terms and conditions set forth in this Lease. 3. Rent 3.1. For the term hereby created, the Tenant agrees to pay to the Landlord an annual base rent of Three Thousand, Six Hundred dollars ($3,600) in monthly instalments of Three Hundred ($300), payable on or in advance of the first day of each and every month. 3.2. All reference to currency is in Canadian dollars and is exclusive of any applicable taxes unless indicated otherwise. The Landlord agrees to remit to the Canada Revenue Agency any amounts of tax paid or due. 4. Assignment 4.1. The Tenant may not assign this Lease nor sublet all or any part of the Premises without the written consent of the Landlord, which may not be arbitrarily or unreasonably withheld. 4.2. The Landlord shall not assign this Lease without the prior written consent of the Tenant, which may not be arbitrarily or unreasonably withheld. However, in the event that the Lease is assigned by the Landlord to a party unacceptable to the Tenant, and if a compromise acceptable to both Parties cannot be reached, the Tenant shall have the right to terminate this Lease, or any renewal thereof without penalty, effective the date of such assignment. 4.3. The assignee agrees to accept all terms and conditions specified in this Lease for the entire term and any renewal thereof. Asset and Procurement Management, 657 West 37th Avenue, Vancouver British Columbia, V5Z lK6 Regular Council with Page 76 of 305 Committee of the Whole - 18 Item 7.3 Page 3 E1400-2698 5. Security Requirements 5.1. All persons, employed by the Landlord or by any of its independent contractors, who have access to the Premises for any purpose in connection therewith, shall be acceptable to the Minister responsible for the Royal Canadian Mounted Police and, upon request of the Tenant, the Landlord will provide the Tenant with the name of each person so employed, his full address, his qualifications and duties, and ensure that all such persons are cleared for the purpose of, and comply with, the security requirements of the Tenant. 5.2. Any person not security cleared entering the Premises, shall be under RCMP escort at all times. 5.3. All persons, employed by the Landlord or by any of its independent contractors, who have access to the Premises for any purpose in connection thereWith, shall follow all signage and/or directions from Tenant employees on the Premises with regard to the use and/or possession of electronic equipment including, but not limited to, PDAs and cellular telephones. 5.4. The Landlord shall not release any building plans of the Premises, except to the Tenant, without the consent of the Tenant and will maintain the Premise building plans in a secure manner as directed by the Tenant. 5.5. If the Minister responsible for the Royal Canadian Mounted Police is of the opinion that National Security is involved, he may order the Landlord to proVide information concerning persons employed on the Premises by the Landlord or by an independent contractor of the Landlord and may order the Landlord to remove any such person from the Premises, and the Landlord covenants to comply with any such order. 6. Leasehold Improvements 6.1. The Premises are leased "as is". The Tenant shall, at Her own expense from time to time and after the date of this Lease or any renewal thereof, be entitled to make or to have made: (a) by the Landlord or its agents pursuant to any agreement which may be entered into by and between the Tenant and Landlord, or (b) by any independent contractor acceptable to the Landlord, pursuant to any agreement which may be entered into by and between the RCMP and such contractor, (c) any leasehold improvements, subject to the Tenant obtaining approvals, at Her expense, from the Landlord, in writing with plans and specifications for the proposed improvements to the Premises, which the Landlord shall not unreasonably deny to Tenant; Asset and Procurement Management, 657 West 37th Avenue, Vancouver British Columbia, V5Z lK6 Regular Council with Page 77 of 305 Committee of the Whole - 18 Item 7.3 Page 4 E1400-2698 6.2. The Tenant will obtain all necessary permits prior to commencing with the improvements and will provide the Landlord with access to the permits upon request; 6.3. The improvements shall be made at the expense of the Tenant, and thereafter maintained by the Landlord during the term of the Lease and any renewal thereof. 7. Tenant Covenants 7.1. The Tenant covenants with the Landlord as follows: (a) to pay the rent hereby reserved in the manner and on the days specified herein subject to any other provisions contained in this lease; (b) to permit the Landlord or its authorized agent at all reasonable times and by prior arrangement to enter for the purposes of examining the state of repair of the Premises and making repairs thereto; (c) to maintain and ensure that the interior of the Premises are kept in a clean and sanitary condition; (d) to arrange for annual inspections to ensure the facility meets all safety requirements and to prOVide a report to the Landlord; 8. Landlord Covenants 8.1. The Landlord hereby at its own expense, covenants with the Tenant, in respect of services and equipment as each item may apply: (a) to permit the Tenant, so long as the Tenant is not in default of the aforementioned covenants, to peacefully and quietly enjoy the Premises during the Term without molestation, hindrance or disturbance from or by the Landlord or any other person or persons claiming through or under it; (b) to pay all taxes, rates, duties, assessments and levies whatsoever now or hereafter levied upon the lands and the bUildings, or either of them, or any part thereof, or arising out of any use or occupation of the lands and the bUildings, payable by the Landlord including, without limiting the generality of the foregoing, all works assessed upon the property benefited thereby and all school business, local improvement taxes, rates, assessments and levies; (c) that the said Premises are now in good state of repair and in tenable condition, and at all times during the term, will keep the Premises in good state of repair which includes all structural repairs, exterior or interior, and infrastructures including, but not limited to as they may apply, water, sewer, electrical, gas, or any such repairs which may be associated with the bUilding structure or fixtures supplied by the Asset and Procurement Management, 657 West 37th Avenue, Vancouver British Columbia, V5Z lK6 Regular Council with Page 78 of 305 Committee of the Whole - 18 Item 7.3 Page 5 E1400-2698 Landlord, and to promptly, according to notice, make repairs as a prudent owner would and to not unreasonably withhold permission to allow the Tenant or Her agent to make the said repairs and the cost of such repairs will be paid by the Landlord; (d) to provide and pay for the operation and maintenance of heating, cooling and ventilation systems to provide a continuous clean air supply at a reasonable temperature and humidity; (e) to provide safety features for fire detection as required by Federal Safety Codes, Acts and Regulations; (f) to pay for the cost of any necessary upgrades to meet safety requirements; (g) to provide and pay for the prompt removal of ice and snow, at all times, from all outdoor parking spaces, roadways, walks, steps and fire exits, leading to and from the Premises; 8.2. The Landlord shall provide to the Tenant a complete current list of names, telephone numbers and addresses of the Landlord's employees, servants and agents who may be contacted at any time in the event of emergency or failure of any service provided by the Landlord, as herein specified, for the purpose of making repairs as may be reqUired to restore such services. 9. Joint Covenants 9.1. Both Parties agree to well and truly observe and fulfill the provisions and reqUirements of all Statutes, Regulations, By-laws, Rules, Orders and Instructions, Regulations or other requirements of any government authority having jurisdiction; 10. Insurance and Indemnification 10.1. The Landlord agrees to carry all such insurance to cover the terms of this Lease including fire and public liability. 10.2. Liability coverage for the Tenant is prOVided by the Government of Canada in accordance with the Crown Liability and Proceedings Act, R.S.C. 1985, c. C-50; 11. Environmental Representation and Warranties 11.1. The Landlord represents and warrants to the Tenant as follows: (a) The Premises and the lands on which the Premises is located, in their existing and prior uses comply with, and the Landlord is not in violation of and has not Violated, in relation to its ownership, use, maintenance or operation, any applicable federal, prOVincial, municipal or local laws, regulations, orders or approvals relating to environmental matters; Asset and Procurement Management, 657 West 37th Avenue, Vancouver British Columbia, V5Z lK6 Regular Council with Page 79 of 305 Committee of the Whole - 18 Item 7.3 Page 6 E1400-2698 (b) To the knowledge of the Landlord, no hazardous or toxic materials, substances, pollutants, contaminants or wastes have been discharged into the environment, or deposited, discharged, placed or disposed of at, on or near the Premises and the lands on which the Premises is located. 11.2. The Landlord shall indemnify and save harmless the Tenant, Her employees, agents, contractors, and all those for whom the Tenant may in law be responsible, from and against all claims, demands, losses, costs, damages, actions, suits or proceedings by whosoever made, brought or prosecuted in any manner based upon, arising out of, related to, occasioned by or attributable to the breach of any representation and warranty contained herein. 12. Environmental Compliance 12.1. The Tenant shall use and manage the Premises in compliance with all applicable laws, bylaws, rules and regulations of the appropriate jurisdiction pertaining to the environment, health and welfare, and occupational safety. 12.2. The Tenant shall not be held responsible for assessment, remediation, risk management and/or any other mitigating costs or liabilities associated with any potential or actual environmental impact, contamination, pollution or hazards associated with the Premises which were not caused by any act or omission of the Tenant, Her employees, agents, contractors, and all those for whom the Tenant may in law be responsible; 12.3. Should the Landlord believe that the Tenant is responsible for contamination or pollution where the polluting source is not obvious or eVident, the Landlord must conduct or have conducted, at its own expense, an environmental assessment in order to confirm the polluting source. In the event that the environmental assessment confirms that the Tenant is the source of the contamination or pollution, the Tenant shall reimburse the Landlord for the cost of the environmental assessment upon presentation of an invoice and supporting documentation. 12.4. In the event that the Premises are contaminated or polluted by any action or omission of the Tenant, Her employees, agents, contractors or invitees: (a) the Tenant shall immediately notify the Landlord and any governmental department or agency as may be reqUired by law, of such pollution or contamination; (b) the Tenant shall conduct or have conducted, as soon as is feasible, at Her own expense, an environmental inspection or assessment, as may be reqUired by law, to determine the potential extent of the environmental impact or damages and to determine the reqUired actions to mitigate, risk manage and/or remediate the contamination Asset and Procurement Management, 657 West 37th Avenue, Vancouver British Columbia, V5Z lK6 Regular Council with Page 80 of 305 Committee of the Whole - 18 Item 7.3 Page 7 E1400-2698 and/or pollution caused by the Tenant, Her employees, agents, contractors or invitees; (c) the mitigation or remedial work recommended in the environmental inspection or assessment shall not proceed without prior approval and consent of the Landlord. Upon receipt of said approval, the Tenant will undertake, at Her own expense, the necessary mitigation or remediation to the satisfaction of the Landlord and/or the appropriate government department or agency. 13. Yielding Up 13.1. Upon the termination of this Lease or any renewal thereof as the same may have been renewed, or whenever sooner terminated, the Tenant: (a) shall yield up the Premises together with such alterations and moveable effects, as paid for by the Landlord, in good repair, reasonable wear and tear excepted. The Tenant shall not be liable to pay compensation or to make any other payment to the Landlord in respect of restoration or repair of the Premises; (b) may remove all improvements, installed by the Tenant on the Premises, prior to vacating the Premises, all of which are hereby deemed to be the property of the Tenant, and if the Tenant does not remove the improvements, the Landlord may remove them and the Tenant shall pay the cost of doing so; (c) shall ensure the Premises are inspected by the Landlord or its agent upon vacating and further will ensure the cleanliness and standard of the said Premises is in the same condition as it was on the first date of occupancy under this Lease; reasonable wear and tear excepted. 13.2. In the event that any property belonging to the Landlord is damaged as a result of such removal, the Tenant shall either pay to the Landlord such compensation in respect hereto as represents the reasonable cost of repairing such damage or repair the same. 14. Destruction of Premises 14.1. If by reason of fire or other event, the Premises or any part thereof are, during the term hereof, damaged or destroyed, and by reason thereof, the Premises are, in the opinion of the Tenant, rendered untenable, then the Tenant may declare that the rent shall forthwith become payable up to the date of such damage or destruction and the Lease shall thereupon terminate, PROVIDED HOWEVER that if the Premises are so damaged, but not, in the opinion of the Tenant, rendered untenable then, at the option of the Tenant, the Lease shall not terminate if the Landlord forthwith repairs and makes the Premises fit for the use of the Tenant, but the rent shall forthwith become payable to the date of such damage or destruction and shall then abate until the Premises have been made so fit. Asset and Procurement Management, 657 West 37th Avenue, Vancouver British Columbia, V5Z lK6 Regular Council with Page 81 of 305 Committee of the Whole - 18 Item 7.3 Page 8 E1400-2698 15. Default 15.1. The Landlord and the Tenant mutually agree as follows: (a) If the Tenant shall make any default in payment of rent hereby reserved or in the performance of any other of the Tenant covenants hereunder, and such default continues for three (3) calendars months, the Landlord may give to the Tenant a notice in writing, requiring the Tenant to remedy such default within a period of thirty (30) days from and after the date of service of such notice, and if the Tenant shall fail to remedy such default within such period of thirty (30) days or such longer period as may reasonably be necessary in view of the nature of the default, the Landlord may enter upon and take possession of the Premises, save and except the contents, and security equipment or any part; and the term hereby granted shall thereupon cease. (b) In the event that the Tenant shall deliver to the Landlord written notice of default in any of the services to be provided by the Landlord hereunder, and the Landlord shall fail to remedy such default: (i) within thirty (30) days from and after delivery of such written notice, or (ii) within such period less than forty-eight (48) hours from and after delivery of such written notice as will ensure that the Tenant suffers no loss or damage. If, by reason of the nature of such default, the Tenant may reasonably be expected to suffer loss or damage if such default is not remedied within a period of less than forty-eight hours, then and in any and every such event, the Tenant may, without further notice to the Landlord take such steps as may, in the sole judgement of the Tenant, be necessary to remedy such default and, without limiting any of the Tenant's remedies at law, all costs incurred by the Tenant in remedying any such default of the Landlord shall be charged to and paid by the Landlord and, if the Landlord fails to pay such costs on demand, the Tenant shall be entitled to deduct the same from the rent or any other amounts payable hereunder by the Tenant to the Landlord; (c) If the Landlord makes any default in the payment of any instalment of principal or interest under hypothecs or in respect to taxes, or is in default in respect of any of its covenants and obligations under any hypothecs, privilege, charge or encumbrance affecting the Premises the Tenant may, but shall not be obliged to, make such payment in default or to remedy any such default, and any such payments and all costs and expenses incurred by the Tenant in remedying any such default shall be deducted against the rent payable under this Lease thereof, and the term hereby granted shall thereupon cease. Asset and Procurement Management, 657 West 37th Avenue, Vancouver British Columbia, V5Z lK6 Regular Council with Page 82 of 305 Committee of the Whole - 18 Item 7.3 Page 9 E1400-2698 16. Dispute Resolution 16.1. In the event of any dispute or difference shall arise between the Parties hereto in connection with the use of the Premises as to the interpretation of any part of this Lease or as to any matter not referred to in this Lease and requiring agreement or as to matters requiring further agreement by the Parties, such dispute or difference shall be determined by arbitration pursuant to the Commercial Arbitration Act, R.S.c. 1985, c. 17 (2nd Supp.). The costs and expenses of the arbitration shall be paid by the party requiring the arbitration. 16.2. Nothing herein shall preclude either party from recourse to the Courts where there is an excess of jurisdiction or error of law relating to or in the arbitration process. 11. Notice 17.1. Any notice required by this Lease must be giving in writing and shall be deemed to have been sufficiently given to: the Landlord, the Tenant, The City of Dawson Creek Royal Canadian Mounted Police PO Box 150 4949 Heather Street Dawson Creek, BC V1G 4G4 Vancouver, B.C. V5Z 3L7 Attn: Deputy Director of Attn: Assets Management Unit-North Community Services (a) if delivered in person, upon receipt; (b) if delivered by traceable mail, on the fifth business day next following the date it is mailed. 17.2. Either party may give written notice of any change of address in the manner specified above, and thereafter the new address shall be deemed to be the address of that party for the giving of notices. If the postal service is interrupted or is substantially delayed, any notice, demand, request, consent or other instrument shall be delivered in person. 18. General 18.1. The Parties acknowledge that the headings throughout this Lease form no part of the Lease itself, and are wholly without legal significance. 18.2. Whenever in this Lease the context so requires or permits, words in the singular shall include the plural, and words in the plural shall include the singular, and words imparting male persons shall include female persons and corporations. Asset and Procurement Management, 657 West 37th Avenue, Vancouver British Columbia, V5Z lK6 Regular Council with Page 83 of 305 Committee of the Whole - 18 Item 7.3 Page 10 E1400-2698 18.3. This Lease may only be amended by an agreement in writing executed by both Parties hereto and attached as an addendum to this Lease. 18.4. Any condoning, excusing or overlooking by a party of any default, breach or non-observance of any covenant, proviso or condition of this Lease does not operate as a waiver of that party's rights hereunder in respect of any subsequent default, breach or non-observance and does not defeat or affect in any way the rights of that party herein in respect of any subsequent default, breach or non-observance. 18.5. The invalidity or unenforceability of any provIsion of this Lease shall not affect the validity or enforceability of any other provision hereof and any such invalid or unenforceable provision shall be deemed to be severable. 18.6. The Parties agree that the execution of this Lease may be completed by the exchange of facsimile signature pages, with the exchange of originally executed copies to be completed as soon as reasonably possible thereafter. The Parties further agree that this Lease may be executed in counterparts with the same effect as if all Parties had signed the same document and all such counterparts taken together shall constitute one and the same instrument. 18.7. This Lease shall inure to the benefit of and be binding upon the Parties hereto, their heirs, executors, administrators, successors and assigns. 18.8. This Lease shall be governed and construed, and the relationship between the parties determined, in accordance with the laws of the Province of British Columbia. 18.9. Time shall in all respects be of the essence in each and every term, covenants and conditions in this Lease. The remainder of this page has been left blank intentionally in order to accommodate signatures on one page. Asset and Procurement Management, 657 West 37th Avenue, Vancouver British Columbia, V5Z lK6 Regular Council with Page 84 of 305 Committee of the Whole - 18 Item 7.3 Page 11 E1400-2698 WITNESS WHEREOF the Parties hereto has executed this Lease; SIGNED, SEALED and DELIVERED by SIGNED, SEALED and DELIVERED by the Tenant in the presence of: the Landlord in the presence of: Authorized Signatory Print Name Witness Signature Witness Signature Pascallina Chang, rocurement Officer RCMP Leasing - Pacific Region Print Name 4949 Heather Street, Vancouver, BC VSZ 1K6 Address Date Date Asset and Procurement Management, 657 West 37th Avenue, Vancouver British Columbia, V5Z lK6 Regular Council with Page 85 of 305 Committee of the Whole - 18 Item 7.4 REPORT TO COUNCIL DATE: February 13, 2013 REPORT NO.: 13-042 SUBMITTED BY: Tyra Henderson FILE NO.: 1-6-2 Deputy Director of Corporate Administration SUBJECT: Appointment of Bylaw Enforcement Officers PURPOSE To request a Council resolution to update the list of people authorized to write municipal tickets and enforce the City's bylaws. SUMMARY/BACKGROUND Pursuant to Bylaw Enforcement Bylaw No. 3137, Bylaw Enforcement Officers must be appointed by resolution of Council and swear an oath (administered by the Director of Corporate Administration) as regulated under the Police Act. The Oath is then filed with the RCMP Detachment. The Council resolution and subsequent oath are required to legally authorize Animal Control/Bylaw Enforcement Officers to write municipal tickets for bylaw infractions. This includes SPCA staff who enforce the provisions of the Animal Control Bylaw on behalf of the City. Currently there are no changes required by the SPCA. Sheri Bonnycastle has been hired by the City as a Bylaw Enforcement Officer. Though she was previously authorized to enforce animal control bylaws as an employee of the SPCA, this authorization did not extend to all municipal bylaws and therefore authorization from Council for Ms. Bonnycastle is requested to enable her to enforce the City’s bylaws. It is important that the authority to act as a bylaw enforcement officer be kept current as staff changes occur. It is also requested that Council rescind the appointment of Mr. Chad Kaiser as a Bylaw Enforcement Officer for the City of Dawson Creek as he is no longer a City employee. ALTERNATIVES Council may decline to appoint Ms. Bonnycastle, however, this would limit her ability to carry out the duties of a Bylaw Enforcement Officer for the City. GUIDING PRINCIPLES We will have a reputation for acting with integrity and will earn the trust of our stakeholders by: keeping promises; pledging to align our action with the guiding principles that support our vision; communicating with care and respect and; sharing information in timely and Regular Council with Page 86 of 305 Committee of the Whole - 18 Item 7.4 Report re: Appointment of Bylaw Enforcement Officers Page 2 of 2 comprehensive ways. IMPLEMENTATION/COMMUNICATION Once Council appoints Ms. Bonnycastle as a Bylaw Enforcement Officer, the oath can be administered by the Director of Corporate Administration. The RCMP will be advised of the changes for their records. RECOMMENDATION That Report No. 13-042 from the Deputy Director of Corporate Administration re: Appointment of Bylaw Enforcement Officers be received; further; that Sheri Bonnycastle be named as a Bylaw Enforcement Officer for the City of Dawson Creek;, and further, that the appointment of Chad Kaiser as a Bylaw Enforcement Officer be rescinded. Respectfully submitted, APPROVED FOR AGENDA BY CAO/DCAO ORIGINAL SIGNED BY Tyra Henderson Deputy Director of Corporate Administration /th Regular Council with Page 87 of 305 Committee of the Whole - 18 Item 7.5 REPORT TO COUNCIL DATE: February 12, 2013 REPORT NO.: 13-037 SUBMITTED BY: Shelly Woolf FILE NO.: 8-1-6 Chief Financial Officer SUBJECT: Dawson Creek Exhibition Association Partnering Request PURPOSE To request that Council consider entering into a partnering arrangement with the Dawson Creek Exhibition Association to receive $15,000 from Farm Credit Corporation (FCC) on behalf of the Association so that they can use the money to purchase seating for the Grandstand Project. SUMMARY/BACKGROUND On June 18, 2012 the Dawson Creek Exhibition Association applied for a Farm Credit Corporation (FCC) AgriSpirit Fund grant in the amount of $25,000 for the “Raise the Roof” Grandstand Project. On November 14, 2012 they received a letter from FCC notifying them that they were approved for $15,000 in funding through the FCC AgriSpirit Fund subject to certain conditions, one of them being that the organization partner with a municipal body in order to receive a charitable tax receipt for their contribution. (Refer to Attachment 1). In the profile section of the application Mrs. Patterson stated that the City of Dawson Creek would act as the municipal partner. (A municipal partner is required in the application in order to issue a charitable tax receipt because DCEA is not a registered charity.) Staff became aware of this application on February 1, 2013 when Mrs. Patterson dropped off the documents at City Hall. (Refer to Attachment 2). In order for FCC to process the funding, they require the following: a completed contract that outlines the requirements and obligations with respect to receiving AgriSpirit funding. if the organization is not a charitable organization than it must partner with a municipality who will receive funds on behalf of the organization. if the funding is to be used for a construction project, an FCC representative may need to complete an environmental assessment. Once the required information is received by FCC, the funds will be paid to the City on behalf of the Dawson Creek Exhibition Association. Regular Council with Page 88 of 305 Committee of the Whole - 18 Item 7.5 Report re: Dawson Creek Exhibition Association Partnering Request Page 2 of 3 Specific conditions relating to the municipal body included in the AgriSpirit funding agreement are as follows. The municipal body will: Receive contributions on behalf of the recipient (DCEA). Control expenditures and ensure funds are used only for the project (seating for the Grandstand). Issue an official receipt for the contribution in the name of the City of Dawson Creek In order for the City to meet the above conditions, City Council would need to approve the following: 1. Council will agree to receive and disburse the $15,000 in funds on behalf of DCEA and approve the transaction by including it in the 2013 Financial Plan. (Any transactions made on behalf of another organization should receive Council approval and be included in the Financial Plan – September 27, 2010 Audit letter - Auditor recommendation). 2. The municipal body must control expenditures and ensure funds are used for the project by disbursing the funds for the expenses listed in the application - seating. In order to be compliant with this condition, it is recommended that disbursement of the funds to DCEA only be made after City staff inspect the installed seating and the Association submits a paid invoice for the seating directly to the City. 3. Before the City can issue a charitable tax receipt to FCC, a written agreement with DCEA must be completed addressing the specific regulations included in “Canada Revenue Agency’s Charities - Policy and Guidance - Using an Intermediary to carry out a Charity’s Activities within Canada” must be met. If these conditions are not met, the City could be at risk in losing its ability to issue charitable receipts in the future. Criteria for issuing a charitable tax receipt on behalf of another organization are very complex and specific, and in most cases are not allowed. The charity (municipal body) must maintain direct control and use of the resources. ALTERNATIVES 1. Council may chose not to partner with the Dawson Creek Exhibition Association. IMPLICATIONS (1) Social City Council supports the Fall Fair Event and the Grandstand Seating Project. Partnering with the Dawson Creek Exhibition Association to receive additional funds for this project assists in improving the Fall Fair event for all residents of the Community. (2) Environmental N/A Regular Council with Page 89 of 305 Committee of the Whole - 18 Item 7.5 Report re: Dawson Creek Exhibition Association Partnering Request Page 3 of 3 (3) Personnel City staff will be required to draft a written agreement in accordance with Canada Revenue Agency regulation and will be required to inspect the seating after it is installed prior to disbursing the funds to DCEA. (4) Financial The City will receive the $15,000 in funding on behalf of DCEA; hold it in trust until such time that the seating is installed and disburse the funds after City staff inspect the installation and a paid invoice is received from the Association. The transaction will be recorded in the City’s 2013 Financial Plan. GUIDING PRINCIPLES Modern Economy – We will strengthen the community’s economic vitality by focusing on and promoting the opportunities for economic development that are inherent in our community and region. Trust and Integrity – We will have a reputation for acting with integrity and will earn the trust of our stakeholders by working to develop positive relationships. STRATEGIC PRIORITIES N/A IMPLEMENTATION/COMMUNICATION If approved by Council, an agreement with the Dawson Creek Exhibition Association will be completed first, outlining all the conditions required by the Canada Revenue Agency necessary to issue a charitable receipt on the Association’s behalf. A confirmation letter, as well as the signed agreement will be sent to the Farm Credit Corporation and the City will receive and disburse the funds on behalf of DCEA in accordance with the terms of the application. RECOMMENDATION That Report No. 13-037 from the Chief Financial Officer re: the Dawson Creek Exhibition Association Partnering Request be received; further, that the City agree to receive $15,000 from the Farm Credit Corporation AgriSpirit Fund on behalf of the Association and disburse the funds in accordance with the intermediary agreement recommended by Canada Revenue Agency. Respectfully submitted, APPROVED FOR AGENDA BY CAO ORIGINAL SIGNED BY Shelly Woolf Chief Financial Officer SW Regular Council with Page 90 of 305 Committee of the Whole - 18 Item 7.5 ~ft FarmCreditCanada November 14, 2012 Ms. Connie Patterson Dawson Creek Exhibition Society PO Box 18 Dawson Creek. British Columbia V1G4H8 Dear Ms. Patterson: On behalf of Farm Credit Canada 1would like to inform you that your project has been chosen to receive $15,000 in funding through the FCC AgriSpirit Fund. This year we received 1,079 applications and we are proud of our contribution of $1 million to more than 90 community enhancement projects in rural communities across the country. In order to process your application for funding we will need you to complete the following steps: • Attached to this letter is a contract that ouUines your requirements and obligations with respect to receiving AgriSpirit funding. Please review and sign the contract and send it back to my attention. • Ifyour organization has non-profit (versus charitable) status, you will need to partner with a municipality who will receive funds on your behalf. Attached to this e-mail is a template of this letter that your municipal partner will need to complete. Upon completion, please send it back to my attention. • Ifthe project you are receiving funding for is a construction project, an FCC representative may need to complete an environmental assessment with you. In this case, an FC~ AgriSpirit Fund representative will be in touch. Upon receipt of the above noted information, funds will be disbursed in support of your project and sent to your attention. To celebrate the projects we are funding, a public announcement will be made on December 13. 2012 with a neINS release that will be distributed to media in your area, and sent to you for your information. Please wait unt1l after this ~nnouncement to mention FCC's support of your project to the general public. This announcement will include the names of all projects we are funding, even ifthe contracts are not yet signed. If your project is not going ahead as planned, please notify us as soon as possible. Once your project is complete, and prior to the completion deadline of December 31, 2014, you are required to complete all remaining contractual items, as outlined in Section 10 of the attached contract. Along with some financial information about the completed project, we will require project photos and permanent signage recognizing FCC. Thank you again for the opportunity to be a part of your community. Your project exemplifies the volunteer spirit that is alive in rural Canada. We look forward to working with you. Ifyou have any questions, please call me at 306-780-7209 or email [email protected]. Sincerely, Treena Amyotte Community Investment Consultant Regular Council with Page 91 of 305 Committee of the Whole - 18 Item 7.5 The FCC AgriSpirit Fund You have four hours to complete your application. This form wlll time out after four hours of inactivity, so we recommend you begin by printing a copy. Click on Printable Form in the top right corner of your screen. Applications cannot be saved, so we recommend you print a copy before you click the Submtt button. Submission deadline is 11:S9 p.m. EDT on June 18, 2012. Oniy online applications wiil be accepted. Late or incomplete applications will not be accepted. Thank you for your commitment to rural Canada. Press Next to begin. Your project * Required Fields '" Project name '"' Organization * What is the purpose of your organization? 'To promote, support and develop agriculture in : ~a~~on Creek and the regi?~. Profile * Required Fields • Amount of funding request 25,000 *When did you start fundraislng? 01/08/2010 * Compietion date of your project 01/08/2013 • Will your project be completed by December 31, 2014? yes *Select the option that best describes your organization. :registered non-profit What is your chalitable organization or non-profit 'registration number? (OOOOOOOORR0001) Ifnot . 8C Society# 5-000-4562 OR CRA# 12975-8314 applicable, enter N/A. . R70001 Ifyou are a registered chartty applying using your parent or umbrella organization's registration number, provide the name, phone number and email address of the parent or umbrella organization and ensure you have permission to apply using that number. If you are a non-prom: organization partnering with a municipal body, enter the name, phone number and email address of your municipal partner and ensure you have their penmission to apply for funding with City of Dawson Creek, 250-784-3600, { [email protected] the municipal body as a partner. --,-.,,"" '""'" Regular Council with Page 92 of 305 Committee of the Whole - 18 Item 7.5 'Which category does your project fit best? capital Improvement - Irnprovlng, fixed assets *What focus area best describes your project? ,~~~munity and recreation Is it your organization's mission to directly support one or more of these groups? If so, which one(s)? *How did you hear about the FCC AgriSplrit Fund? Internet/FCC website *Will the requested funds be used for construction activities or expansions of a building? yes *Will the building or construction involve any of the following? construction of a new bUilding or structure Provide the square footage of the project, if applicable. *Will the finished building or structure use municipal water? no *Will the finiShed building or structure use municipal sewerservioes? "no General Questions * ReqUired Fields ,Describe the need or opportunity that exiSts for your project, Including how it will enhance the quality of life for people who live in rural communities. SV"Jr:,' y>;,;;lr, the [1a''':$o1", Cr~ei: E7.hlbir.ion ;'.ssvciation holds ntltn;;lr~.A.lS .'.lgl'icultur",l and rod",,, "'l~'erlt"", :",lch <1.$ chuc!': ~lil'Jcn r.:;cin,;) ,'inc 'J\.l!~ c·:;mfl,urdly's annuEl.l ra11 ~';:,j.I:. Pret~'!':ntly, tho::: \il"'"ndst. ,Explain your project, including a description of its current status and specifically how the money from the FCC AgriSpirit Fund will be used. i.)!.lr prC'j'~':'c. is 1:.0 (;OJl3truct a 1"':.,,f Qver C,'1l' ';lrandstan~J':; and 1:.0 install ind.i'Jidual seatin'~ in r:'.i;O!c~ {')f I;b<1 l~<1n·:h sn is sla:tefJ tc, bt;qir, JIJl:,: 4, 2(J12, \~ir.h the ~C..:)( J. 1.",,;'e in tim-,-) :0;; this ~.'';;'.;ll·'$ FaLL Fall' in August:. Th'" s",?t.i.ng wi1.1 be inst 'If FCC chooses to support your project, how will you promote our participation? Select all that apply. ~ media release ,, D press conference o promotional materials [j announcement at grand opening or event o banners D newsletter recognition in print ad Regular Council with Page 93 of 305 Committee of the Whole - 18 Item 7.5 *Describe the direct beneficiaries and how they wiii benefit. E'.:",r pe1'20f' vh.;'! 11v~2 in t~1!~' .;()nllnu"lty ar,d ""hi",r ~'egi,m has th~ p~l;~nr.i *What is the total cost of the project? 425000 *What is the total amount of funds confirmed to date? 365900 *What is the the breakdown of funds received to date? (Grants, fundraising activities, private donations and in-kind donations) ::-!(: E:,;rl b.lticn i *Financial commitment - what percentage of total funding has your project received to date? Omit the %. 86 Contact form * Required Fields • Salutation Ms. *First name Connie *Last name Patterson *' Organization -Dawson Creek Exhibition Society * Mailing address PO Box 18 * City or town . Dawson Creek '~""." .. •Province British Columbia * Postai code V1G4H8 *Email [email protected] • Confirm Email [email protected] *Telephone 250-782-6272 .._._--_... ,_."'~-'.. ..' '". Your Comments Th.o: L-HiS.)jl Ct~.;;k :<111 Fair h:~.,:; b·:;(·~r, .:=. p·:H:t; <·f ·:mllmurtity'& herita.~e fot" ~O ye;:,rl;. The ,~r.an~jsti'l1dS ,He an impOl·t=Jl1t pie1..~':: l~i' Ollr. ·::ultural Regular Council with Page 94 of 305 Committee of the Whole - 18 Committee of the Whole Regular Council with '::' ~; . .~ ~ ~ ::.''" ;~=- >1. r;; ~ ,-' f·· C' ~ " w if "<1> ,,,to'. ;,. r, ,':": ..... " ,- - .',. ;..-. 18 (, ,-r ". .gg-. ~ ." ,~ .' (') ~ ~ 8·3" ''-:""" c "g " '"t:, i'e- Page 95 of 305 Item 7.5 Item 7.6 REPORT TO COUNCIL DATE: February 12, 2013 REPORT NO.: 13-041 SUBMITTED BY: Shelly Woolf FILE NO.: Agreement File Chief Financial Officer SUBJECT: Pouce Coupe Water Supply Agreement PURPOSE To request that Council consider an amendment to the water supply agreement between the City of Dawson Creek and the Village of Pouce Coupe. The amendment relates only to changing the annual capital contribution the Village pays to the City and is proposed to better align the principles underlying the new rate model that the City implemented in 2011 to this specific stakeholder. SUMMARY/BACKGROUND The Village and the City entered into an agreement dated October 1978 that set out the arrangement where the City would provide treated water to the Village of Pouce Coupe water line. This agreement has been renewed in five year intervals since 2000 and is next due to be renewed in 2015. The revised agreement includes a revision to Capital Costs - Clause 4 and 5. In the previous agreement the capital cost contribution amount was determined by the following calculation: - Village of Pouce Coupe usage/City of Dawson Creek total annual filtered water x capital costs related to production for the previous year. Contributions by the Village over the last number of years are as follows and total $158,363 or an annual average of $22,623. 2006 - $31,823 2007 - $34,080 2008 - $56,297 2009 - $ 5,391 2010 - $ 7,213 2011 - $23,559 2012 - $ - Regular Council with Page 96 of 305 Committee of the Whole - 18 Item 7.6 Report re: Pouce Coupe Water Supply Agreement Page 2 of 3 The current formula is based on the premise that the Village will provide funding only on production costs. This is because they have their own distribution system to maintain and the Village residents pay frontage to fund those costs. City staff recommends that the current formula be eliminated and that a more equitable, stable formula be implemented. The new formula is based on the principle that the Village is a customer/user just like other City residents or City businesses and therefore subject to an infrastructure charge based on the meter/line size like other users. The Village has a 4 inch line connection and therefore would be subject to an annual infrastructure charge of $9,096. This fee would only change if the City increased its infrastructure charges in its water rates and regulations bylaw, which would apply to all users including Dawson Creek and Pouce Coupe residents. The recommendation results in lower annual revenue but provides stability to the Village for budgeting and taxation purposes and provides the City with a consistent annual revenue amount regardless of the type of capital investment (production or distribution) the City chooses to do in any one year. It also extends the original principles of the 2011 rate model to all stakeholders using water, including Village residents. The principles of the water pricing structure in summary are as follows: 1. equity – all customers pay a fair rate for water 2. conservation – to promote water conservation 3. revenue sufficiency – to yield sufficient revenue to sustain the utility over the long term The revised agreement also includes added collaboration with an added clause that recommends that City and Village Councils hold a joint meeting on an annual basis to discuss issues regarding water supply and distribution. ALTERNATIVES 1. Council may approve the amended agreement as presented or provide additional amendments. 2. Council may choose not to amend the agreement until it expires on December 31, 2014. IMPLICATIONS (1) Social Water is necessary for life and therefore affects the health and life style of every individual on a daily basis. Applying the same principles of equity, conservation and revenue sufficiency should apply to all users of the system, regardless of where one lives. (2) Environmental N/A (3) Personnel N/A (4) Financial Although, the revenue contribution from the Village of Pouce Coupe will be somewhat lower, the model provides for greater equity and fairness to all users and over the long term. Regular Council with Page 97 of 305 Committee of the Whole - 18 Item 7.6 Report re: Pouce Coupe Water Supply Agreement Page 3 of 3 GUIDING PRINCIPLES Modern Economy – We will strengthen the community’s economic vitality by focusing on and promoting the opportunities for economic development that are inherent in our community and region. Trust and Integrity – We will have a reputation for acting with integrity and will earn the trust of our stakeholders by working to develop positive relationships. STRATEGIC PRIORITIES Water Security Public Meetings is the number one priority for Council, the Department of Infrastructure and Sustainable Development and the Department of Finance. Amending the water supply agreement between the Village and the City regarding its capital contribution amount improves fairness and equity to all stakeholders using water, and will ensure that our communities continue to work together to address ongoing water issues in a collaborative manner. IMPLEMENTATION/COMMUNICATION If approved by Council, the revised agreement will be forwarded to the Village of Pouce Coupe for approval. RECOMMENDATION That Report No. 13-041 from the Chief Financial Officer re: Pouce Coupe Water Line Agreement be received; further, that the revised agreement between the City and the Village be approved for a 5 year term, commencing on January 1, 2013. Respectfully submitted, APPROVED FOR AGENDA BY CAO ORIGINAL SIGNED BY Shelly Woolf Chief Financial Officer Attachment: Pouce Coupe Water Agreement Regular Council with Page 98 of 305 Committee of the Whole - 18 Item 7.6 THIS AGREEMENT dated for reference this 12th day of February, 2013. BETWEEN: THE CORPORATION OF THE CITY OF DAWSON CREEK (Hereinafter referred to as the “City”) AND: THE CORPORATION OF THE VILLAGE OF POUCE COUPE (Hereinafter referred to as the “Village”) WHEREAS: 1. The City has a water utility that treats and supplies water (“the water utility”) which is metered (“the City water”); 2. The Village has a water line that connects with the City water utility at Highway #2 (South side) and Hudson Road (Road 211); 3. The Village and the City entered into an agreement dated October 1978, which has been in place since that time, and has been adjusted as necessary upon agreement by both parties. 4. Schedules A, B, C, D and E are a list of the connections made to the Village water line outside Village boundaries; 5. The Village and the City intend to replace the 2010 Renewal Agreement with this Agreement for a five (5) year term, with a commencement date retroactive to January 1, 2013. NOW THEREFORE THE CITY AND THE VILLAGE AGREE AS FOLLOWS: 1. Unless the parties otherwise agree, the water line from the south side of Highway #2 where Hudson Road begins to the Village boundary shall be used to provide treated water to the Village and for no other purpose. This line is the sole property of the Village and shall be maintained by the Village. Unless by mutual agreement the portion between Highway 2 & the Pouce Reservoir is transferred to the City of Dawson Creek due to future replacement of the Pouce Reservoir. There shall be no connections to the water line between the City and the Village, except those described in Schedules A, B, C, D and E and those hereafter added to Schedules A through E by written agreement between the City and the Village. Any service connections on the Highway 2 side of the reservoir shall have proper Regular Council with Page 99 of 305 Committee of the Whole - 18 Item 7.6 Village of Pouce Coupe Waterline Agreement Page 2 of 9 Backflow devices as stipulated by the City of Dawson Creek’s Cross Connection Control Coordinator. 2. It is agreed and understood that the Village has made repair and brought on-line its reservoir and it is maintained as part of the Village’s water system. 3. The City agrees to operate and perform routine maintenance and supply the chlorination chemical for the meter house facility at no cost to the Village. The Village shall be responsible for any replacement or capital upgrade of these facilities. 4. That the City and the Village shall meet on an annual basis to discuss issues regarding the supply and distribution of potable water. COSTS 5. The City and the Village agree that the Village shall pay to the City an annual infrastructure charge as stipulated by the City of Dawson Creek Water Rates and Regulations Bylaw. Such amount shall be assessed and payable by the Village on a monthly basis (by way of receipt of an invoice) on or before the last day of each month of each year of the term of this Agreement. 6. The Village shall pay the same rates as the residential users in the City as set in accordance to the City of Dawson Creek Water Rates and Regulations Bylaw. Any rate other than that stipulated in the bylaw must be mutually agreeable between the parties. 7. The City shall provide the Village with prompt notice of any proposed increase in the cost of water together with the justification for such increase. SUPPLY OF WATER 8. The City shall, from the effective date of this Agreement, provide an uninterrupted supply of water at a minimum flow rate of 10 litres per second and a minimum pressure of 10 psi at the Village Reservoir. If required to maintain this minimum pressure at the Village Reservoir a booster pump shall be installed and utilized at the existing metering stations. It is understood and agreed that this flow rate currently exceeds the amount the Village presently requires. The City has the responsibility of ensuring the pump is functional and a comprehensive, regular maintenance program be developed and implemented by the City. 9. The City agrees to supply the Village a maximum volume of 22,700 meters cubed per month for the next year and in each year thereafter. The Village is not obligated to purchase the volume of water which the City agrees to supply, but the Village may use and purchase such lesser volume as the Village in its own discretion shall decide. If the Village water needs increase beyond this amount, this Agreement may be varied by consent or through the Dispute Resolution Sections, having regard to the needs of the Village, the needs of the City, and the ability of the City to provide additional water. Regular Council with Page 100 of 305 Committee of the Whole - 18 Item 7.6 Village of Pouce Coupe Waterline Agreement Page 3 of 9 10. From the date of this Agreement, the City must not supply water to any other person if such supply will compromise the City’s ability to provide an uninterrupted supply of water to the Village at the minimum flow rate and pressure set out in Section 11. In the case of a drought or an emergency situation, see Section 14 for guideline. 11. The City shall indemnify and save harmless the Village from any and all costs, expenses, fees, fines, actions and other expenditures that the Village may sustain or incur as a result of the City’s negligent failure to provide an uninterrupted supply of water in accordance with Section 11 or the City’s provision of water to another person where such supply has compromised the City’s ability to provide an uninterrupted supply of water to the Village in contravention of Section 11. 12. The Village shall adopt the same conservation measures as laid out in the City of Dawson Creek Water Conservation Measures Bylaw. RESTRICTIONS ON USE 13. The Village agrees not to permit any connections to its domestic water line outside the Village limits, except those described in Schedules A, B, C, D and E and those hereafter added to the above Schedules by written agreement between the Village and the City. 14. The Village agrees not to sell water in bulk or to allow the sale of water in bulk. DURATION AND RENEWAL 15. This Agreement shall be in force for a term of 5 years commencing on January 1, 2013. DISPUTE AND OR RESOLUTION GUIDELINES 16. In the event of any dispute between the City and Village, either party may initiate mediation. If the parties cannot agree on a mediator, then either party may require that a mediation service provider arrange for a mediator and mediation. Both parties are required to send an informed representative to the mediation, and shall provide their representative(s) with authority to settle the dispute, or the representative must have at the earliest practicable opportunity, access to a person or persons who have the authority to settle. Unless otherwise agreed, mediation shall start within 30 days of the appointment of the mediator. The costs of mediation shall be equally shared. 17. In the event of a dispute between the City and the Village where neither party has requested mediation or mediation has failed, then the matter shall be submitted to an arbitrator as follows: a. The party desiring resolution should submit a notice in writing to the other party to commence arbitration and a single arbitrator shall be selected by agreement of the parties. If the parties cannot agree on a Regular Council with Page 101 of 305 Committee of the Whole - 18 Item 7.6 Village of Pouce Coupe Waterline Agreement Page 4 of 9 single arbitrator within fourteen (14) days of receipt of the notice, each party shall appoint one arbitrator to act on that party’s behalf and within seven (7) days thereafter the two arbitrators shall appoint a third person by mutual consent who shall be the chairperson. The chairperson shall provide notices forthwith to the parties stating a time and date not less than four (4) days or more than seven (7) days from the date the notice is delivered and the place where the parties shall appear to present their position. b. If a single arbitrator is appointed by the parties, the parties shall bear equally the cost of that single arbitrator. If both parties appoint an arbitrator, each party shall be responsible for the costs associated with the arbitrator appointed by that party and the balance of the cost of the arbitration, including the fees and expenses of the chairperson shall be paid equally by the parties. c. The decision of the arbitrator or arbitrators appointed hereunder shall be final and binding on the parties. 18. This Agreement shall not be assigned except to a successor of the Village or the City. 19. This Agreement may not be terminated by either party unless agreed to by both parties. IN WITNESS WHEREOF, the parties hereto have affixed their respective seals in the presence of their duly authorized officers on the day and year first written above. THE CORPORATION OF THE CITY OF DAWSON CREEK c/s Mike Bernier – Mayor Brenda Ginter - Director of Corporate Administration THE CORPORATION OF THE VILLAGE OF POUCE COUPE c/s Larry Fynn – Mayor Michael McPhail – Chief Administrative Officer Regular Council with Page 102 of 305 Committee of the Whole - 18 Item 7.6 Village of Pouce Coupe Waterline Agreement Page 5 of 9 SCHEDULE A Regular Council with Page 103 of 305 Committee of the Whole - 18 Item 7.6 Village of Pouce Coupe Waterline Agreement Page 6 of 9 SCHEDULE B Regular Council with Page 104 of 305 Committee of the Whole - 18 Item 7.6 Village of Pouce Coupe Waterline Agreement Page 7 of 9 SCHEDULE C Regular Council with Page 105 of 305 Committee of the Whole - 18 Item 7.6 Village of Pouce Coupe Waterline Agreement Page 8 of 9 SCHEDULE D Regular Council with Page 106 of 305 Committee of the Whole - 18 Item 7.6 Village of Pouce Coupe Waterline Agreement Page 9 of 9 SCHEDULE E Lot 1, Section 32, Township 77, Range 14, W6M, Plan 21413, Peace River District (Added by Council resolution June 7, 2010) Regular Council with Page 107 of 305 Committee of the Whole - 18 Item 7.7 REPORT TO COUNCIL DATE: February 8, 2013 REPORT NO.: 13-032 SUBMITTED BY: Barry Reynard FILE NO.: 1-1-10 Director of Community Services SUBJECT: Green Vehicle & Green Operating Practices for Municipal Buildings PURPOSE To present the revised Green Vehicle & Green Operating Practices for Municipal Buildings policies to Council for consideration. SUMMARY/BACKGROUND On November 5, 2012, Council directed staff to review the Green Vehicle Policy and the Green Operating Practices for Municipal Buildings Policy and propose revisions for Council consideration. Staff have identified opportunities to streamline these policies with a number of subtle revisions to ensure that they are implemented with increased operational feasibility. Specifically, the recommended revisions take into consideration the growing nature of the City’s building and vehicle fleet and therefore target performance indicators (as opposed to absolute indicators). The revisions also suggest ways to more effectively allocate resources and capital to vehicles and buildings depending on specific uses. ALTERNATIVES Council may approve the policy amendments as presented, make additional changes prior to approval, or refer the policy back to staff for further investigation. IMPLICATIONS (1) Social Improving the efficacy of these policies will result in more efficient civic buildings and vehicles, minimizing operational expenses and the associated financial burden on the City’s tax base. (2) Environmental The revision of these policies could further reduce the impacts of the City’s buildings and vehicles on the environment. (3) Personnel City staff will continue to coordinate efficiency upgrades. Regular Council with Page 108 of 305 Committee of the Whole - 18 Item 7.7 Report re: Green Vehicle & Green Operating Practices for Municipal Buildings Policies Page 2 of 2 (4) Financial These policy revisions will have no additional financial impact on the current budget. GUIDING PRINCIPLES Modern Economy: We will strengthen the community’s economic vitality by continuing to provide leadership in sustainability. Environment: We will demonstrate respect for the future of the earth by promoting, demonstrating, and using renewable energy. STRATEGIC PRIORITIES N/A IMPLEMENTATION/COMMUNICATION If approved by Council, the amended policies will be posted on the City’s website for a 30 day review period. If no comments are received, the revised policies will be incorporated into the City’s Policy Manual. If comments are received, a report will be provided to Council for further consideration. RECOMMENDATION That Report No. 13-032 from the Director of Community Services re: Green Vehicle & Green Operating Practices for Municipal Buildings Policies be received; further, that the revised policies be approved as presented subject to the 30 day review period. Respectfully submitted, APPROVED FOR AGENDA BY CAO ORIGINAL SIGNED BY Barry Reynard Director of Community Services MM/jl Enclosures: Revised Green Vehicle and Green Operating Practices for Municipal Buildings Policies Regular Council with Page 109 of 305 Committee of the Whole - 18 Item 7.7 Policy –Finance GREEN VEHICLE POLICY Background In 2004, Dawson Creek completed a baseline study on its municipal energy consumption. One of the study’s recommendations was the creation of a green vehicle policy that would guide vehicle purchasing decisions and operating practice in order to help reduce energy consumption. An overview of the different components and options for a green vehicle policy was prepared and presented to Dawson Creek in February, 2006. The policy that follows reflects the goals and direction that Dawson Creek chose from these options. For background information on each section, please see the Dawson Creek Green Vehicle Policy Working Paper. Rationale Gasoline and diesel fuels used for transportation produce greenhouse gas (GHG) emissions that contribute to climate change, and local air emissions (Criteria Air Contaminants – CACs) that degrade local air quality. This policy will help to reduce vehicle emissions. New vehicles will be an ongoing expense in Dawson Creek. This policy will ensure that life cycle costs are considered for new vehicle purchases and that vehicle efficiencies are maximized. Many of the policy options described here can be adapted and expanded to the community level. This policy provides a starting point to engage on other transportation issues throughout the municipality. Goals and Objectives The goals and objectives of this policy are: To reduce emissions intensity per kilometer driven from the municipal vehicle fleet to levels that are 20% below 2004 levels by 2016 by: . Reducing idling . Reducing single occupancy trips . Purchasing more efficient vehicles and fuels . Right-sizing vehicles To consider the life cycle costs of municipal vehicle operations when purchasing vehicles. . To maximize vehicle efficiency. . To provide a framework for lessening the environmental impact of vehicle operations that can be expanded to the larger community. Regular Council with Page 110 of 305 Committee of the Whole - 18 Item 7.7 Policy –Finance Guidelines 1. Purchasing 1.1. Right-sizing Vehicles should be purchased according to the average or usual anticipated use of the vehicle. Occasional vehicle needs that exceed the capacity of the vehicle purchased should be met through vehicle sharing or renting. The following use requirements should be considered when purchasing a vehicle: . engine size . vehicle weight . average carrying capacity . average passenger capacity . average terrain These use requirements should accompany and form part of any recommendation made to the Chief Administrative Officer and Chief Financial Officer under the Purchase of Capital Equipment Policy. 1.2. Life cycle cost Life cycle costs should be considered for all vehicle purchases where more than one type of vehicle make and/or model is suitable for the intended use. Life cycle costs should include: capital costs, maintenance costs, fuel costs, and resale costs. 2. Fuel Choice 2.1. Fuel choice The lowest GHG emission fuel possible should be purchased for all vehicles in the fleet. Consideration of fuels should include: purchasing low emission fuel for the whole fleet (i.e. low-sulphur gasoline or biodiesel) and; where applicable, purchasing vehicles that run on alternative fuel sources 3. Operating 3.1. Idling Idling should be reduced among all municipal vehicles where possible. The following guidelines should be followed by all municipal vehicle operators: Reduce warm-up idling (no more than 30 seconds as long as windows are clear) It takes more gas to idle for more than 10 seconds than it does to restart your vehicle. If stopped for more than 10 seconds, vehicles should be turned off, except in the following circumstances: Regular Council with Page 111 of 305 Committee of the Whole - 18 Item 7.7 Policy –Finance . In traffic . In the course of performing a specific duty that requires that the vehicle be left running . If the temperature is below -10C . If doing so would compromise human safety or the mechanical integrity of the vehicle 3.2. Vehicle sharing Single occupancy vehicle trips should be minimized. Vehicles should be shared between departments to ensure maximum efficiency for vehicle use. 3.3. Driver education Driving procedures to increase the efficiency of vehicle operations, including anti- idling, should be included in driver training programs that municipal staff are required to take. 4. Maintenance and monitoring 4.1. Maintenance Maintenance on municipal vehicles should continue to ensure that preventative maintenance continues to maximize the efficiency of all vehicle operations. 4.2. Monitoring All vehicles should be monitored to track fuel consumption, fuel costs, mileage, and maintenance costs. 5. Evaluation 5.1. Monitoring objectives The objectives in this policy should be measured at regular intervals to ensure that the policy is effectively moving Dawson Creek towards its goals. 5.2. Policy evaluation This policy should undergo regular evaluation to ensure that it is enabling Dawson Creek to move towards its goals. APPROVED BY COUNCIL: DATE: May 29, 2006 AMENDED BY COUNCIL: DATE: Regular Council with Page 112 of 305 Committee of the Whole - 18 Item 7.7 Policy – Council SUBJECT: GREEN OPERATING PRACTICES POLICY FOR MUNICIPAL BUILDINGS Council of the City of Dawson Creek directs that: Purpose The City of Dawson Creek endeavours to protect and enhance its surrounding environment through energy efficiency and demonstrating the use of renewable energy. This policy provides a system to continuously ensure that the City’s building stock is operating at peak efficiency; to minimize associated operating costs, reduce environmental impacts and where possible, take advantage of renewable energy technologies. Policy Objectives 1. Building Audits 1.1. To ensure that HVAC and all energy systems operate at optimum efficiency levels, each major municipal building requires an energy audit of adequate detail depending on its use, once every 5 years. Re-commissioning is required as deemed necessary by City staff or as per recommendation by the energy audit. 1.2. Ensure building operator training in energy management is included as part of the building audit. A building can have the most efficient energy systems, but if the operator doesn't know how to operate the systems, energy efficiency will not be realized. 1.3. For the purpose of benchmarking and tracking savings, energy consumption information for individual buildings will be monitored on an ongoing basis. Energy consumption patterns will be assessed in comparison to past years and normalized for weather (heating and cooling loads). This information will be made available to the primary building operator where possible. 2. Renewable Energy Energy self-sufficiency: Where operationally feasible, solar, wind, geothermal and or biomass systems will provide a portion of the buildings’ energy needs. 3. Water use by Buildings Meter, account for and monitor water consumption to identify large water consumers and excessive water use. Set targets for water use reductions in individual buildings and implement water conservation strategies where applicable. 4. Recycling In each building, provide adequate recycling containers. Enhance recycling systems and increase recycling rates with single-stream, desk-side recycling for paper, plastic, aluminum and cardboard. Regular Council with Page 113 of 305 Committee of the Whole - 18 Item 7.7 Policy – Council 5. Purchasing The City will purchase what provides the best value while meeting the following criteria: 5.1 Evaluation in start of purchasing procedure, similar to right-sizing in vehicles policy. 5.2 Energy consuming/demanding devices/appliances/products: Only high efficiency appliances/equipment/devices will be purchased. EnergyStar rated products receive priority consideration. 5.3 Water consuming/demanding devices/appliances/equipment/products: Only high efficiency devices/appliance/equipment/products will be purchased. EnergyStar rated products receive priority consideration. 5.4 Products and Materials: The most environmentally responsible products possible should be purchased for use/installation in buildings. The products purchased should be certified as environmentally responsible by a recognized third-party industry-standard environmental certification body. One example of such a certification is EcoLogo certification. 6. Operations The City will adopt environmental Best Management Policies for the following: . Energy Management . Recycling and Waste Management Plan . Building and Mechanical Maintenance . Stormwater Management Plan . Integrated Pest Control and Management Plan . Landscape Management Plan . Green Housekeeping Plan 7. Education The City will endeavour to educate building users to follow the best practices for energy management and environmental responsibility. 8. Measurement and Verification Overall consumption of energy from buildings should be monitored though utility tracking software to verify reductions. 9. Evaluation Monitoring objectives: The objectives in this policy should be measured at regular intervals to ensure that the policy is effectively moving Dawson Creek towards its goals. APPROVED BY COUNCIL: DATE: May 5, 2008 AMENDED BY COUNCIL: DATE: Regular Council with Page 114 of 305 Committee of the Whole - 18 Item 7.8 REPORT TO COUNCIL DATE: February 13, 2013 REPORT NO.: 13-038 SUBMITTED BY: Barry Reynard FILE NO.: 7-1-8.1 Director of Community Services SUBJECT: Geothermal/Geopower Feasibility Study PURPOSE To present Council with the report from Borealis Geopower regarding geothermal potential in the community. SUMMARY/BACKGROUND On August 20, 2012, Council approved an alternative energy study to investigate the feasibility of exploiting underground heat (geothermal) to develop a combined heat and electrical power project within the Dawson Creek area. This report is to inform Council that the City has received the study and to communicate the initial findings. Findings The study confirms that Dawson Creek is situated in a region of promising geothermal potential. Using historic oil and gas records from wells drilled in the area, the study determined it probable that the geothermal heat resource located beneath the City could provide adequate temperatures to economically generate baseload, emissions free electricity as well as enormous amounts of heat for space heating and other applications. The report suggests drilling four wells to an approximate depth of 3.5 km, to power a 13.3 MW equivalent steam driven binary power plant. The proposed project is estimated to generate roughly $9.3 million (gross)/ $7.2 million (net) dollars’ worth of electricity annually (when sold to BC Hydro through a long term Power Purchase Agreement) and cost approximately $70 million to build over roughly three years. According to the report, this translates into an annual Internal Rate of Return on investment of between 8.6% and 11.3%. Furthermore, utilizing as little as 3% of the waste heat would be enough to heat the majority of the City’s civic buildings including the South Peace Community Multiplex. Any additional heating loads such as greenhouses or industrial applications that were added to further take advantage of the significant available heat resource would only strengthen the economics of the potential project. In theory, the project appears to be economically feasible while generating enough heat to heat the City many times over. However, numerous challenges associated with such a project were also identified in the study. Regular Council with Page 115 of 305 Committee of the Whole - 18 Item 7.8 Report re: Geothermal Page 2 of 3 Challenges The capital costs are significant and would require an external source of financing. Additionally, there still remains considerable financial risk associated with substantiating the resource potential from “probable” to “proven” (as defined by the Canadian Geothermal Energy Association) through drilling an exploration well to verify the anticipated geothermal resource characteristics. There also remains the challenge of obtaining the necessary permitting required to access the geothermal rights in the vicinity of Dawson Creek. Many of these hurdles could be at least partially mitigated through forming a partnership with an oil and gas company with adequate financial resources, drilling expertise and access to the subsurface rights within the area. Potential Next Steps Given the scope of such a large potential project, Staff have identified a number of possible next steps: 1. The report be reviewed internally and weighted against the City’s strategic priorities and emissions reduction targets. 2. Further discussion with potential partners from the oil and gas industry as well as BC Hydro regarding a Power Purchase Agreement. 3. Explore the potential of external funding and grants. ALTERNATIVES Council may accept this report for information and direct staff at a later date pending further consideration. IMPLICATIONS (1) Social This project has the potential to significantly impact the surrounding area in terms of economic growth and promoting energy (and potentially food) security. (2) Environmental This project would significantly reduce the greenhouse gas emissions associated with space heating for Civic Buildings and local businesses in Dawson Creek. (3) Personnel Pending Council’s direction, City staff would be responsible for implementing potential next steps. (4) Financial This project could impact current and future budgets depending on Council’s direction. GUIDING PRINCIPLES Modern Economy: We will strengthen the community’s economic vitality by continuing to provide leadership in sustainability. STRATEGIC PRIORITIES N/A Regular Council with Page 116 of 305 Committee of the Whole - 18 Item 7.8 Report re: Geothermal Page 3 of 3 IMPLEMENTATION/COMMUNICATION N/A RECOMMENDATION That Report No. 13-038 from the Director of Community Services re: Geothermal/Geopower Feasibility Study be received; further, that staff be authorized to pursue discussions with potential partners regarding possible next steps towards realization of a Geothermal/Geopower energy project in the Community. Respectfully submitted, APPROVED FOR AGENDA BY CAO ORIGINAL SIGNED BY Barry Reynard Director of Community Services MM/cf Regular Council with Page 117 of 305 Committee of the Whole - 18 Item 7.8 Dawson Creek Geothermal Energy Resource Assessment September 2012 Submitted to: Matthew MacWilliam, City of Dawson Creek, British Columbia Primary Authors: Ashley Derry, BSc. Geophysics Craig Dunn, P.Geol. Tim Thompson, P.Eng, MBA Borealis Geopower Inc. July 3, 2012 Regular Council with Page 118 of 305 Committee of the Whole - 18 Item 7.8 Contents TABLE OF FIGURES ...... 2 LIST OF TABLES ...... 3 EXECUTIVE SUMMARY ...... 4 INTRODUCTION ...... 7 PURPOSE ...... 7 STATEMENT OF COMPETENCE ...... 7 INTRODUCTION TO GEOPOWER ...... 7 PROJECT SUMMARY ...... 8 EXPLORATION HISTORY ...... 9 BRITISH COLUMBIA OVERVIEW ...... 9 LOCAL EXPLORATION OVERVIEW ...... 10 SUBSURFACE GEOLOGY ...... 12 International Examples of HSA ...... 23 ENHANCED GEOTHERMAL ...... 24 FORMATION ANALYSIS ...... 26 TARGET ZONE FOR POWER PRODUCTION: WABAMUN (UPPER DEVONIAN) ...... 26 POTENTIAL ZONE FOR WATER INJECTION ...... 30 Boundary Lake Formation (Upper Triassic) ...... 31 Baldonnel Formation (Upper Triassic) ...... 32 TARGET ZONE FOR HEAT PRODUCTION ...... 33 Debolt Formation (Mississippian) ...... 33 STRATIGRAPHY ...... 34 GEOTHERMAL RESOURCE AND GEOTHERMAL RESERVES ESTIMATE ...... 38 INTRODUCTION TO CANADIAN GEOTHERMAL CODE FOR PUBLIC REPORTING ...... 38 GEOTHERMAL CODE – RESOURCE & RESERVES ...... 39 Geothermal Resource ...... 39 Geothermal Reserve ...... 40 Calculation of Thermal Energy Potential ...... 41 RESOURCE ASSESSMENT FOR CODE COMPLIANCE ...... 42 GEOPOWER PROJECT- DEVELOPMENT COSTS ...... 44 BUSINESS ENVIRONMENT ...... 44 PROJECT GUIDELINES ...... 44 ECONOMIC ANALYSIS: ‘WASTE’ HEAT ADD-ON ...... 54 DIRECT HEAT ANALYSIS & DEVELOPMENT COSTS ...... 59 HEAT REQUIREMENT ...... 59 PRODUCTION DRILLING ...... 60 PIPING AND INTEGRATION ...... 60 ECONOMIC ANALYSIS: DIRECT HEAT (ALONE) ...... 61 WELL RE-ENTRY OPPORTUNITY ...... 62 ACTIVE WELLS CO-PRODUCTION OPPORTUNITY ...... 63 Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 1 Regular Council with Page 119 of 305 Committee of the Whole - 18 Item 7.8 PROJECT DEVELOPMENT STEPS- STRATEGY & TIMELINE ...... 63 CANGEA PROJECT CHECKLIST ...... 63 RIGHTS SECURED & PERMITTING ...... 64 WELL RE-ENTRY OR SLIMHOLE PROGRAM ...... 66 PRODUCTION DRILLING AND RESOURCE MODEL ...... 66 ENGINEERING AND POWER PLANT CONSTRUCTION ...... 67 CO2 CREDITS AND INVESTMENT TAX CREDIT (ITC) ...... 68 CONCLUSIONS ...... 69 REFERENCES ...... 71 APPENDIX A: GEOLOGICAL FORMATION ANALYSIS FOR RELEVANT UNITS ...... 77 Precambrian Basement (Precambrian) ...... 77 Granite Wash (Middle to Upper Devonian) ...... 79 Winterburn Group (Upper Devonian) ...... 79 Exshaw Formation (Upper Devonian to Lower Carboniferous) ...... 81 Banff Formation (Upper Devonian to Lower Carboniferous) ...... 83 Pekisko Formation (Mississippian) ...... 85 Shunda Formation (Mississippian) ...... 86 Elkton Member (Mississippian) ...... 87 Debolt Formation (Mississippian) ...... 88 Golata Formation (Mississippian) ...... 89 Table of Figures FIGURE 1 - DAWSON CREEK GEOTHERMAL PROJECT RESEARCH AREA. 9 FIGURE 2 - PEACE RIVER ARCH STRATIGRAPHIC COLUMN (CANADIANOILSTOCKS.CA, 2012). 14 FIGURE 3 - HEAT GENERATION AT THE TOP OF THE PRECAMBRIAN (BACHU & BURWASH, 1994). 15 FIGURE 4 - TEMPERATURE AT THE TOP OF THE PRECAMBRIAN (BACHU & BURWASH, 1994). 16 FIGURE 5 - VARIATION IN TEMPERATURE AND GEOTHERMAL GRADIENT FOR A WELL IN THE PEACE RIVER ARCH AREA: A. TEMPERATURE WITH DEPTH PROFILE, B. GEOTHERMAL GRADIENT (SOLID LINE), AND INTEGRAL GEOTHERMAL GRADIENT (DOTTED LINE) (BACHU & BURWASH, 1994). 17 FIGURE 6 - OILFIELD WELLS IN DAWSON CREEK AREA. 19 FIGURE 7 - TEMPERATURE (°C) AT 3,500 M DEPTH IN WESTERN CANADA (MAJOROWICZ ET AL., 2009). 20 FIGURE 8 - WELLS OF INTEREST TO GEOTHERMAL DEVELOPMENT AT DAWSON CREEK. 22 FIGURE 9 - TEMPERATURE GRADIENT FOR WCSB (BACHU, 1992). 22 FIGURE 10 - GENERALIZED DIAGRAM OF A HOT SEDIMENTARY AQUIFER GEOTHERMAL PROJECT (HOT ROCK LTD., 2012). 23 FIGURE 11 - GENERALIZED DIAGRAM OF EGS PROGRAM (US DOE GEOTHERMAL TECHNOLOGIES PROGRAM, 2011). 26 FIGURE 12 - CROSS SECTION OF WABAMUN GROUP IN PEACE RIVER AREA (HALBERTSMA, 1994). 28 FIGURE 13 - ELEVATION OF THE WABAMUN FORMATION, BASED ON DEEP OILFIELD WELL DATABASE. 29 FIGURE 14 - WABAMUN FORMATION ELEVATION MODIFIEDFROM GLASS (1990) DATASET. 29 FIGURE 15 - WABAMUN ISOPACH MAP MODIFIED FROM GLASS (1990) DATASET. 30 FIGURE 16 - ELEVATION OF BOUNDARY LAKE FORMATION, FROM DEEP OILFIELD WELL DATABASE. 32 FIGURE 17 - ELEVATION OF THE BALDONNEL FORMATION, FROM DEEP OILFIELD DATABASE. 33 FIGURE 18 - ELEVATION OF THE DEBOLT FORMATION, FROM DEEP OILFIELD DATABASE. 34 FIGURE 19 - CANADIAN GEOTHERMAL CODE- RESOURCES AND RESERVES (CANGEA, 2010). 41 FIGURE 20 - COMPLETED WELL COSTS IN YEAR 2003 US$ AS A FUNCTION OF DEPTH (TESTER, 2006). 47 FIGURE 21 - SCHEMATIC DIAGRAM OF BINARY TURBINE TECHNOLOGY FOR POWER PRODUCTION (GEO, 2000). 50 Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 2 Regular Council with Page 120 of 305 Committee of the Whole - 18 Item 7.8 FIGURE 22 - BINARY PLANTS: THERMAL EFFICIENCY WITH GEOFLUID TEMPERATURE (TESTER, 2006). 51 FIGURE 23 - PERCENTAGE OF CAPITAL COSTS (POWER ONLY PROJECT). 57 FIGURE 24 - POTENTIAL LOCATION FOR DIRECT HEAT DRILLING PROGRAM. 61 FIGURE 25 - PRECAMBRIAN BASEMENT LITHOLOGY (GLASS, 1990). 77 FIGURE 26 - ELEVATION OF PRECAMBRIAN FORMATION, FROM DEEP OILFIELD WELL DATABASE. 78 FIGURE 27 - ELEVATION OF PRECAMBRIAN FORMATION (GLASS, 1990). 79 FIGURE 28 - WINTERBURN ISOPACH MAP (MODIFIED FROM GLASS, 1990). 80 FIGURE 29 - ELEVATION OF THE WINTERBURN FORMATION, FROM DEEP OILFIELD WELL DATABASE. 80 FIGURE 30 - ELEVATION OF THE WINTERBURN FORMATION (MODIFIED FROM GLASS, 1990). 81 FIGURE 31 - ELEVATION OF THE EXSHAW FORMATION, FROM DEEP OILFIELD WELL DATABASE. 82 FIGURE 32 - THICKNESS OF THE EXSHAW FORMATION, FROM DEEP OILFIELD WELL DATABASE. 83 FIGURE 33 - ELEVATION OF THE BANFF FORMATION, FROM DEEP OILFIELD WELL DATABASE. 84 FIGURE 34 - THICKNESS OF THE BANFF FORMATION, FROM DEEP OILFIELD WELL DATABASE. 85 FIGURE 35 - ELEVATION OF THE PEKISKO FORMATION, FROM DEEP OILFIELD WELL DATABASE. 86 FIGURE 36 - ELEVATION OF THE SHUNDA FORMATION, FROM DEEP OILFIELD WELL DATABASE. 87 FIGURE 37 - ELEVATION OF THE ELKTON FORMATION, FROM DEEP OILFIELD WELL DATABASE. 88 FIGURE 38 - ELEVATION OF THE DEBOLT FORMATION, FROM DEEP OILFIELD WELL DATABASE. 89 FIGURE 39 - ELEVATION OF THE GOLATA FORMATION, FROM DEEP OILFIELD WELL DATABASE. 90 List of Tables TABLE 1: DEEP WELLS USED FOR TEMPERATURE GRADIENT ANALYSIS IN DAWSON CREEK AREA ...... 21 TABLE 2: WORLDWIDE OPERATIONAL GEOTHERMAL SYSTEMS WITH COMPARABLE RESOURCE TEMPERATURES .. 24 TABLE 3: POROSITY AND PERMEABILITY FOR FORMATIONS IN CENTRAL ALBERTA BASIN (WEIDES ET AL, 2011) ..... 31 TABLE 4: RECENT INJECTION WELLS IN DAWSON CREEK AREA...... 31 TABLE 5: STRATIGRAPHY/GEOLOGICAL FORMATIONS FOR DAWSON CREEK AREA (ZONES OF INTEREST IN BOLD) . 37 TABLE 6: ENCANA MULTIPLEX HEATING REQUIREMENTS & COSTS ...... 54 TABLE 7: CITY OF DAWSON CREEK HEATING REQUIREMENTS & COSTS ...... 54 TABLE 8: POWER GENERATION COST ANALYSIS ...... 58 TABLE 9: POWER GENERATION COST ANALYSIS (IMPROVED FLOW RATE) ...... 58 Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 3 Regular Council with Page 121 of 305 Committee of the Whole - 18 Item 7.8 Executive Summary Energy extracted from naturally occurring heat within Earth, known as geothermal energy, is a clean and renewable source of both power and heat. It is proven technology that provides baseload power, which by definition means that the supply is constant, stable and invariable 24 hours a day, 365 days a year, contrary to other types of popular renewable energy options. Borealis GeoPower Inc. (Borealis) has prepared this report to ascertain the geologic and economic possibility of developing geothermal resources for heat and electricity production for the City of Dawson Creek, British Columbia. The document has been prepared in accordance with the Canadian Geothermal Code for Public Reporting produced by the Canadian Geothermal Energy Association, 2009. In general, we find the geological environment in the Dawson Creek area encouraging for developing a geothermal project. The insulating nature of the sedimentary cover, the permeability and porosity of the target geological formation (the Wabamun Formation) and the heat from deep basement granitic rock are key variables supporting resource exploitation. The highly permeable subsurface rock environment, coupled with large subsurface aquifer systems, suggests potential flow rates that could support geothermal energy development. The proximity of an extensive array of oil and gas wells provides a strong database to ensure confidence in the subsurface geological environment. Key Findings 1. The inferred resource is sufficiently large to underpin the construction of geothermal heat production facilities. For the purposes of this analysis, geothermal power production facilities are assumed to have an effective life of ~30 years. Against this, our research suggests that the “indicated heat resource” in the Dawson Creek area has on the order of 7.36 x 1017 Joules of thermal energy in place, as classified according to the Canadian Geothermal Reporting Code, assuming conventional binary turbine technology and standard geothermal wells to depths of ~ 3.5 km. The converted energy is equivalent to approximately 13.3 MWe (gross) for 31.7 years, assuming 15% thermal energy recovery and 12% plant efficiency. Accordingly, assuming no recharge of heat, there is sufficient heat within the reservoir to support geothermal power production. 2. A ‘scale’ geopower plant, constructed to extract and productively exploit the geothermal resource in the Dawson Creek area, can be economically viable. Given the kind and quality of the Dawson Creek geothermal resource, we suggest that a 13.3 MWe (gross)/ 11.3 MWe (net) binary power plant, relying on four ~3.5 km wells, is the optimal design choice for exploiting the in situ heat. The entire facility should cost $70 million to construct and $22/MWh to operate. Geothermal power generated by the plant would be sold to BC Hydro under their existing Standing Offer Program, and we have assumed no revenue (or value) from either heat sales or sales of the ‘green’ attributes associated with the power. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 4 Regular Council with Page 122 of 305 Committee of the Whole - 18 Item 7.8 The entire geothermal exploration and drilling program for a 13.3 MWe facility could be completed in less than 3 years. Power facility construction could begin concurrently with completion of the production-drilling program and could be completed and ready for operation within 18 months. From the start of exploration, a facility could come online by mid-late 2015, assuming resource confirmation and reasonable timelines for required permitting, etc. Our economic analysis of a pure geopower project (power only) puts the unlevered Internal Rate of Return at 9.5% (mid-range case), and sensitivity analysis on the capital and operating costs suggests the reasonable boundaries are between 8.6% and 11.3%. The upshot of this discussion is that, in our view, it is too early to decide upon the viability of a geothermal power project in Dawson Creek. Our conservative analysis suggests that the IRR is marginal, but there are significant reservoir and facilities factors that could easily drive the project to economic viability. 3. Use of rejected heat from binary turbine offers a cost-effective direct heat option. Using the following assumptions, a cursory economic analysis of the heat opportunity at Dawson Creek was performed to determine the potential value of the direct heat option. Assuming productive use can be found for the rejected heat from the binary unit, ~1/3 of this heat corresponds to >2,850,000 GJ. To put this into perspective, the 2010 heating requirements for the Dawson Creek South Peace Community Multiplex and the entire community of Dawson Creek were 31,500 GJ and 55,115 GJ, respectively. Combined, they consume just less than 3% of the heat rejected by the proposed unit. In the direct heat option case, the analysis returns a Net Present Value (NPV) of $470,000 at an Internal Rate of Return (IRR) of 16.1%. However, it is analytically ‘unfair’ to burden only one option with operating costs. If we were to assume that the capital and maintenance charges were equal to 1/3 of the commodity cost, which is the kind of cost structure seen in other natural gas applications, then the analysis greatly improves, delivering a NPV of $1,209,000 and an IRR of 24.2%. It should be noted, however, that the preliminary analysis on a combined heat and power project suggests that the direct heat option is quite viable, but only when combined with a power project. 4. A stand-alone direct heat project is not economically viable. An initial economic review suggests that a stand-alone direct heat project of this nature would have an IRR of 3.6%, which is clearly not viable. In the event that all the contingencies are eliminated, the IRR only improves to 4.9%. As such, this project is not viable on a stand-alone basis as the capital costs associated with the well are too great to be feasible for Dawson Creek’s small heat market alone. 5. Re-entry and use of existing oilfield wells is currently not a viable option for development. The key well of interest for re-entry, known as GULF S DAWSON 16-04-078-15, was completed ~30 years ago under a previous regulatory environment. As such, it is highly probable that long sections of un-cemented casing exist within the well, having been left exposed to the formations. Without cement in place between the casing and the formation, it is believed that the wells would have likely experienced significant corrosion and that the re-entry and potential re-casing of the well would offer Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 5 Regular Council with Page 123 of 305 Committee of the Whole - 18 Item 7.8 significant environmental liability and unknown project cost. In conclusion, we would not advise well re-entry for the purposes of the geothermal development. Current well development in the area is focused on the dry gas Montney formation, which has been assessed and subsequently determined to not have the necessary water volume or temperature viable for a direct heat or power project. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 6 Regular Council with Page 124 of 305 Committee of the Whole - 18 Item 7.8 Introduction Purpose Borealis GeoPower Inc. (Borealis) has prepared this report to ascertain the geologic and economic possibility of developing the geothermal resource for heat and electricity production in and around the area of Dawson Creek Lake, British Columbia. The document has been prepared in accordance with the Canadian Geothermal Code for Public Reporting, “the Code” produced by the Canadian Geothermal Energy Association, 2009. The report is structured to identify relevant background data and then assess it, based on The Code and our internal view on geothermal development methodology and cost. We present a probabilistic stored heat estimate based on the available data and how it fits into the relevant resource and reserve categories. Using this heat estimate and given our internal development assumptions, we are able to calculate a generalized economic analysis of the potential power production and the overall economics of developing a geothermal resource near Dawson Creek. Statement of Competence This report has been prepared by Craig Dunn and Ashley Gross. Mr. Dunn is the Chief Geologist with Borealis, has an Honours Bachelor degree in Geology from the University of Manitoba and is a Member of the Association of Professional Engineers and Geoscientists of Alberta and BC (APEGA, APEGBC). Ms. Derry is a Geoscientist with Borealis and recently graduated with a Bachelor degree in Combined Earth & Ocean Sciences/Physics & Astronomy (Geophysics) from the University of Victoria and is also a Member of APEGA as a Geoscientist in Training (GIT). Borealis is a current corporate member of the Canadian Geothermal Energy Association. Mr. Dunn been assisted by other key employees within Borealis GeoPower, including Dr. Dan Yang and Tim Thompson. Dr. Yang, a global expert in geothermal heat flow, as an accredited Qualified Person under the Canadian Geothermal Code for Public Reporting takes responsibility and is accountable for the resource assessment of the report. Mr. Thompson has a MBA (Summa Cum Laudae) from Queens University and is responsible for the economic analysis within the report. Introduction to Geopower Energy extracted from naturally occurring heat within Earth, known as geothermal energy, is a clean and renewable source of both power and heat. It is proven technology that provides baseload power, which by definition means that the supply is constant, stable and invariable 24 hours a day, 365 days a year, contrary to other types of popular renewable energy options. In general, the production of energy from geothermal sources works like this: unpotable water present in underground reservoirs, known as formation water, is naturally heated to high temperatures by the Earth’s abundant heat resources. Production wells are drilled into the subsurface where the heat Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 7 Regular Council with Page 125 of 305 Committee of the Whole - 18 Item 7.8 resource exists to bring the hot formation water and steam to surface. The formation water is moved to surface via natural pressure as well as pump systems. At the surface, the formation water travels through the wellhead and into the power facility, which typically utilizes binary turbine technology. Here the hot formation fluids are used to heat a secondary fluid, or binary fluid, via a simple heat exchange system. The binary fluid has a lower boiling temperature than water and is capable of flashing to vapour at temperatures lower than 100°C. In the vapour state, the binary fluid spins the turbine blade (much like steam rising from a kettle would turn a pinwheel that is held over it), which turns the shaft to an electrical generator, thus generating electricity that is delivered to homes and businesses via the transmission grid system. The used binary fluid is then cooled back to a liquid state and used again in the same manner, being recycled within the system. The used, cooled formation water is re-injected back into the subsurface reservoir to be reheated. The available heat at surface is the product of fluid temperature and flow rate. This entire process is renewable as the Earth has a nearly infinity heat source in the mantle and core, and the upper crust constantly naturally produces heat. With proper resource management, geothermal projects offer a viable and stable energy resource for the future. In principle, there is geothermal heat everywhere, including Northeastern BC; however, one must drill down to depths of many kilometers in order to tap high enough temperatures to efficiently generate electric power using turbine technology. This geothermal potential can be utilized only after the costs and risks of its development have been effectively understood. Project Summary Borealis proposes to assess, in detail, the potential for developing geothermal heat and power in and around the Dawson Creek area. The project will help meet the increasing demand for clean, renewable electrical energy in British Columbia and help reduce reliance on fossil fuels and associated greenhouse gas emissions. In order to complete the assessment an extensive subsurface dataset derived from numerous drilled oil and gas wells that exist throughout the area, an array of research material covering all aspects of the subsurface geothermal resource and the consideration of relevant surface factors will be utilized to assess the potential of the resource and the feasibility of developing geothermal energy in the Dawson Creek area. The geothermal resource in the Dawson Creek area is found within and is surrounded by geological formations that have been historically and are presently targeted by oil and gas exploration and production. The extensive amount of regulated and reliable drilling data provided by the oil and gas activities enables a much better understanding of the subsurface environment, thus increasing the confidence in the results of this study. Numerous wells have reported high subsurface temperatures, indicating that this region holds high potential for geothermal energy development. Bottom hole temperatures greater than 100°C have been observed in wells in close proximity to Dawson Creek and yield geothermal temperature gradients well above the global average of ~25°C/km. The heat in the subsurface exists within a known oilfield that hosts a large amount of hot water, which is a common occurrence for conventional oil and gas reservoirs. However, contrary to oil and gas production, it is the abundant hot water that is the target for geothermal heat and power development. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 8 Regular Council with Page 126 of 305 Committee of the Whole - 18 Item 7.8 These factors are a good indication of a significant geothermal resource at depth, with the indicated temperature being more than sufficient to support geothermal heat and power production. Borealis reviewed the opportunities for both electricity generation and a standalone direct heat project. The city of Dawson Creek sits approximately 32 km west of the British Columbia-Alberta border. It is 72 km southeast of Fort St. John and 134 km northwest of Grand Prairie. The city is located on the Pouce Coupe Prairie in the southwestern part of Peace River Country in a large sedimentary basin where the land is relatively flat. Figure 1 - Dawson Creek Geothermal Project Research Area. Exploration History British Columbia Overview While British Columbia is currently the most progressive province with respect to having an actual regulatory environment regarding geothermal energy exploration and production, it does not currently have any producing geothermal power plants. It does, however, have vast potential for geothermal development due to its location on the tectonically active Pacific ‘Ring of Fire,’ the border of which is known to host numerous volcanoes and hot springs and have higher than usual subsurface temperature Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 9 Regular Council with Page 127 of 305 Committee of the Whole - 18 Item 7.8 gradients. A small number of properties on Crown land have been granted geothermal rights, including: Canoe Reach/Valemount, Mount Cayley, South Meager/Pebble Creek and Knight Inlet/Mount Silverthrone (Kimball, 2010). Each one of the properties just mentioned reside in the southwestern part of British Columbia, southwest of Dawson Creek, in faulted and volcanic terrain. Dawson Creek, alternatively, lies on the northeastern edge of the province away from the plate tectonic boundaries where the hydrothermal system sits within a large sedimentary basin known to hold large geothermal potential (Grasby et al., 2011, Majorowicz et al., 1985). The area surrounding Dawson Creek is also known to be very active for oil and gas (O&G) and to date, the BC government has an unofficial policy of not offering geothermal rights where current O&G rights have been issued. Local Exploration Overview The recorded history of the city of Dawson Creek began in 1879 when geologist Dr. George Mercer Dawson was mapping the area for CNR while en route from Fort Macleod to Edmonton. The town was subsequently named in his honour when it was founded and has grown to a population over 11,000 people, having been shaped by agriculture, the railway and the ambitious Alaska Highway built by American soldiers during World War II. Today the town comprises significant infrastructure including two arenas, a mall hosting ~25 stores, a concert/event centre equipped to seat 6,500 people, a multiplex recreational facility with a pool and diving facilities as well as agricultural facilities for equestrian, rodeo and livestock events. Dawson Creek sits within the massive Western Canadian Sedimentary Basin (WCSB), a large and extensive structure well known to contain significant reserves of coal, petroleum and natural gas resources. As a result, the Dawson Creek area has experienced significant local exploration of its natural resources. Coal is mined near Tumbler Ridge and Chetwynd, which are towns southwest and west of Dawson Creek, respectively. To add to this, extensive oil and gas drilling has been conducted near Dawson Creek. Hydrocarbon exploration assists geothermal exploration as it provides detailed subsurface datasets. Obtaining deep subsurface data from multiple wells in the area of interest facilitates gaining a better understanding of the local geological environment because it provides key information, such as temperature data. By acquiring temperature data we are able to determine how much heat can be expected and at what depth, which is something that factors significantly into project economics. The Montney Water Project (MWP), initiated in 2010, is a comprehensive inventory and report on the geological and hydrological surface and subsurface environment in the Montney Gas Play area of northeastern BC. The project was initiated and led by Geoscience BC, who received additional funding from industry partners and the BC government, as well as from the Science and Community Environmental Knowledge (SCEK) Fund. Because of the increased interest in the Montney shale gas play and the subsequent increased drilling into the MWP developed from the need to best understand and manage the water resources in the area. Both water sources and potential deep subsurface disposal sites were identified and a comprehensive database of surface water, groundwater and deep saline aquifers for the Montney area was created. Although the MWP dataset does not reach deep enough to include the water resource that Borealis has identified as the strongest potential geothermal reservoir for power production (the hydrothermal fluids contained within the Wabamun Group) or for direct heat use (the Debolt Formation), the dataset Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 10 Regular Council with Page 128 of 305 Committee of the Whole - 18 Item 7.8 is still considered to be significantly valuable for constraining the geological characteristics of the area surrounding Dawson Creek. Geoscience Surficial Geology Dawson Creek sits 32 km west of the Alberta-British Columbia border in the Alberta Plateau of the southern Peace River plains region. The Alberta Plateau is a till plain that is flat/gently rolling and interspersed with glacial lake basins (Lord & Green, 1986). Dawson Creek sits within the lowlands defined by Lord & Green (1986) that are “dominated by broad outwash plains and the nearly level floors of former glacial lake basins,” with glaciofluvial and glaciolacustrine materials covering the area. The city lies in a rolling hills landscape with the Kiskatinaw River forming a deep valley between Dawson Creek and the town of Fort St. John, which lies to the northwest. The area experiences a continental climate characterized by significant annual variation in temperature due to the lack of any large water bodies nearby. In Dawson Creek, the yearly average temperature is ~1.6°C, while in the summer average temperatures range from -3.5°C to 22°C and in the winter average temperatures range from -25°C to -2°C. The area boasts rich soils that support significant agricultural production of crops and livestock. Dawson Creek sits on the western edge of the Western Canadian Sedimentary Basin (WCSB), a vast sedimentary basin that covers roughly 1.4 million km2, extending from southwestern Manitoba and southern Saskatchewan and Alberta up to northeastern British Columbia and the southwest corner of the Northwest Territories. This basin is well known to host massive coal reserves and petroleum and natural gas resources; the exploration for these resources has provided valuable and extensive datasets. Laurentide (continental) glacial systems from the northeast and cordilleran glacial systems from the west are the main contributors to the composition of surface materials in the Dawson Creek area (Lord & Green, 1986). Laurentide till is relatively uniform in composition and it “may grade through an obscurely stratified material, otherwise indistinguishable from till, into lacustrine clay in which pebbles are scarce or absent. The obscurely stratified till is probably morainal debris dropped from the ice through the waters of a glacier-dammed lake,” which has been referred to as lacustrotill (M.H. Matthews in Farstad et al., 1965). The formation nearest to the surface in Dawson Creek is known as the Kaskapau: a cretaceous formation composed of dark grey shale and locally calcareous sandstone (Reimchen, 1980). Near the suggested project area site the soils are predominantly of Falher composition: clayey glaciolacustrine, weakly calcareous and saline, as well as Esher: clayey and loamy lacustrotill, weakly calcareous and saline, and Septimus Creek: variable, undifferentiated materials that may include colluivial, morainal, fluvial, lacustrine, Aeolian deposits and bedrock (Lord & Green, 1986). Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 11 Regular Council with Page 129 of 305 Committee of the Whole - 18 Item 7.8 Subsurface Geology The geology of the Dawson Creek region has been shaped by both intense tectonic activity (including plate movement, compression and extension) and by the associated erosion and deposition of sediment from the upraised mountain material into foreland basins on the eastward side of the Rocky Mountains. Compressional tectonism, caused by the westward drift of the North American continent and the collision with large oceanic terranes, resulted in the accretion of this oceanic terrane onto the western margin of the North American craton. From the impact, mountain building occurred and the Canadian Cordillera was created. The weight of this material sitting on top of the North American craton caused regional north-south trending subsidence to the east of and directly adjacent to the mountain belt, forming what is known as a foreland basin, and the consequential uplift of material east of this depression, known as a fore bulge. The uplift and erosion of Cordilleran material is the source of the sediment observed to have accumulated in the foreland basin area, where present-day Dawson Creek is now situated. An extensional tectonic regime followed the compressional system and with it the formation of the Western Canadian Sedimentary Basin (WCSB), a very large and significant feature that extends from the Northwest Territories to Western Manitoba, was initiated. The formation of the WCSB follows a rather simple geological model: a large depression, known as a basin, formed via tectonic activity. This basin was filled in slowly over time with sediments from various sources, including those that eroded from the surrounding features on the side of the basin that were positioned at higher altitudes, as well as from material that settled out of the water that rose as a result of global sea level change, forming inland seas and shorelines. With time, this material was deposited within the basin forming layer upon layer of differing types of sediments that produced the layered geological regime, or stratigraphy, that is observed today. This pattern of deposition is recognizable in the geology found in the Peace River Arch/Dawson Creek area (Figure 1). A full analysis of the stratigraphy of the different sedimentary formations in the Dawson Creek area from surface to Precambrian basement is provided in the Stratigraphy section of “Formation Analysis”. The Dawson Creek area is a well-known and extensively drilled and explored oilfield. The oil and gas resources that are pursued here are contained within sedimentary layers where there is much more water as compared to the oil and gas resources present. The heat within the sediments and this abundant water are the targets for geothermal heat and power development. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 12 Regular Council with Page 130 of 305 Committee of the Whole - 18 Item 7.8 Figure 2 - Peace River Arch Stratigraphic Column (CanadianOilStocks.ca, 2012). Geothermal Relevance A geothermal resource requires three key and necessary variables: a heat resource, a media to absorb the heat (such as water), and a permeable environment to allow the transfer of the media in order to bring the heat resource to surface. A geothermal reservoir operates like an underground heat exchanger, so understanding heat flow and temperature gradient is fundamental to analyzing any geothermal resource. In situ water circulates through the reservoir and is exposed to the surfaces of hot Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 13 Regular Council with Page 131 of 305 Committee of the Whole - 18 Item 7.8 rock allowing it to remove heat. The rate of heat transfer – and, consequently, the final temperature that the fluid achieves – is related to the mass flow rate of fluid, residence time and the surface area that the fluid/rock contacts. The three variables necessary to a geothermal resource have been observed at Dawson Creek: a significant portion of the heat within the subsurface originates from the deep granitic basement rock unit known as the Precambrian; large aquifers are known to be present in both of the key geological formations that have been determined in this assessment to be targets for direct heat use and power production: the Debolt and Wabamun formations. The porous and permeable nature of these sedimentary formations provides sufficient means of transport for the heated water to flow. It should be noted that the concept of using sedimentary formations that overlie hot basement rock for geothermal energy development is not a new approach and has been developed in other parts of the world. It is commonly referred to in the geothermal industry as ‘Hot Sedimentary Aquifers’, or HSA and will be detailed in the Hot Sedimentary Aquifer section. Precambrian Heat In the Western Canadian Sedimentary Basin (WCSB), the terrestrial heat is from two sources: the heat stored in the interior of Earth (core and mantle), and radiogenic heat production in the crust (sedimentary rocks and crystalline basement). The Precambrian is a granitic unit forming the base of the Canadian Shield, which is a vast geological shield that forms the nucleus of the North American craton. As the name of the unit suggests, it was generated in the Precambrian Age (~2200 Ma) and subsequently deformed and metamorphosed gaining structures such as faults and folds as well as regional alterations in composition over time. The depth of the unit varies widely over its extent and appears to deepen to the west; the depth of the Precambrian near Dawson Creek is estimated to lie at a depth of ~3,800 m. On the basis of heat generation and transfer, the basement rocks of the WCSB can be divided into the Lower and Upper Crust. The Lower Crust is of Archean and Proterozoic age and appears to underlie most of the WCSB (Theriault and Ross, 1991). It is present to the east in Canada’s Slave Province, which is one of seven geological provinces that make up the Canadian Shield. Archean tectonics involved extensive rifting, deformation and the intrusion of large volumes of granites. At the end of the Archean, when crustal heat production was significantly higher than present, surface heat flow varied over a range (~45-90 mW m−2), as wide as is presently observed in Paleozoic Provinces (Mareschal, 2000). Archean crustal metamorphism appears to be biased towards high temperature-low pressure conditions, in contrast to modern analogs. High temperature-low pressure metamorphism conditions require additional heat input, for example by emplacement of large volumes of basaltic melts, crustal thickening or larger concentrations of radioelements in the lower crust. Granitic Crust is typically a significant source of terrestrial heat because of high concentrations of the three sources of radioactive heat generation: Uranium, Thorium and Potassium. In the basaltic rocks, the radiogenic heat production leads to a power output of around 0.5 µW/m3 and in granites it is as much as 6 µW/m3 (Lewis, 1984). Since the formation of the Earth, this source of heat has released at least an estimated 7x1030 J of energy. According to modern estimates, these three elements lead to a total heat energy stored in the Earth in the range of 12 - 24 x1030 J (Jessop & Lewis, 1978). Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 14 Regular Council with Page 132 of 305 Committee of the Whole - 18 Item 7.8 Beneath the Dawson Creek area, heat generation at the Precambrian is estimated to be above average at 4-6 µW/m3 (Bachu & Burwash, 1994) (see Figure 2). The heat flow at the surface of the Precambrian related to heat production was estimated by Majorowicz & Grasby (2010a) to be in the range of 55 - 60 mW/m2, while Jessop (1978) estimated it to be 65 mW/m2. This source of heat from the Upper crust of the basement rocks is overlain by sedimentary rock features that may act as an insulator or cap for the heat reservoir. This heat resource is coupled with the hydrological movement of formation waters from sedimentary environments that are deeper than that found in the Dawson Creek area. Any heat flow based on heat production in the crust is added to the basal heat flow from the mantle into the crust to provide the observed surface heat flow. Based on the oilfield data within the sedimentary basin at the Dawson Creek location, Borealis has estimated that the geothermal temperature gradient in the Dawson Creek area is ~350C/km and that the depth to the top of the PreCambrian is ~3.8 km. Using these values, an estimated temperature at the top of the PreCambrian is calculated to be ~130°C, which is consistent with the values suggested by Bachu & Burwash (1994) to be within the range of 120-140°C (see Figures 3 & 4). Dawson Creek area Figure 3 - Heat Generation at the top of the Precambrian (Bachu & Burwash, 1994). Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 15 Regular Council with Page 133 of 305 Committee of the Whole - 18 Item 7.8 Dawson Creek area Figure 4 - Temperature at the top of the Precambrian (Bachu & Burwash, 1994). The following figure shows the variation of temperature, geothermal gradient and integral geothermal gradient for a well in the Peace River Arch area. The data ranges from the top to the base of the sedimentary succession in the WCSB. The integral geothermal gradient was calculated as the “ratio of the temperature difference between the bottom and the top (surface) of the sedimentary column, to the total depth (or thickness),” (Bachu & Burwash, 1994) and it represents the “average of the geothermal gradients in all the units in the sedimentary column weighted by lithological thickness,” (Bachu, 1985). Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 16 Regular Council with Page 134 of 305 Committee of the Whole - 18 Item 7.8 Figure 5 - Variation in temperature and geothermal gradient for a well in the Peace River Arch area: a. Temperature with Depth Profile, b. Geothermal Gradient (solid line), and Integral Geothermal Gradient (dotted line) (Bachu & Burwash, 1994). Fluid Flow Higher porosity zones increase the probability of permeability and fluid flow necessary for heat transfer. The porosity of the reservoir determines the amount of water available, while the permeability governs the rate at which water can approach the well through the rock matrix; both are determined from measurements on core samples and from analysis of the rates of flow during drill-stem tests. These properties combine to control the pressure draw-down (the differential pressure driving fluids from the reservoir into the well) when the well is pumped and the lifetime of a production well. Hydraulic potential is determined from "shut-in" pressures recorded during drill-stem tests. The pressure of the water in the aquifer determines the pumping requirements of the project. A high pressure means that the down-hole pump may be of lower power and thus less expensive, and, in the extreme, artesian flow may provide the flow needed. However, high aquifer pressure consequently requires a more powerful reinjection pump, but since a surface pump can be used for reinjection, this is much less expensive in both capital and maintenance costs. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 17 Regular Council with Page 135 of 305 Committee of the Whole - 18 Item 7.8 As shown in the Target Zone for Power Production section of Formation Analysis, the Wabamun formation appears to exhibit sufficient porosity and permeability to allow a large amount of water to both exist and flow through the unit. Oilfield Well Database Oil and gas wells provide a wealth of key data pertinent to constraining the subsurface environment. Because the Dawson Creek area is rich in O&G exploration and production, the abundance of wells allows the subsurface to be modeled and understood in much higher detail, thus raising the level of confidence in the resource characteristics. There are more than 45 oilfield wells within a 20 km radius of Dawson Creek providing a variety of information such as bottom hole temperatures, formation tops and drilling records (Figure 6). Only 16 of these wells near Dawson Creek have been drilled to depths near the Precambrian, as many of the deeper formations are not typical oil and gas reservoir targets because the shallower reservoirs are more accessible. A number of wells surrounding Dawson Creek have been producers; the majority of production associated with these wells has come from the Montney and Halfway formations, with lesser amounts having also been produced from the Gething, Belloy, Boundary Lake and Baldonnel formations. Well depths of oilfield production range from 1765 - 2900 mTVD (True Vertical Depth) for the Montney and 1415 - 3350 mTVD for the Halfway. Many of these producing formations sit significantly above the Wabamun (with >1,000 m difference), and thus their production has little to no influence on the geothermal energy potential at Dawson Creek. The wells that are deeper provide the data necessary for initial downhole temperature estimates for the resource, which are then refined through further analysis. The shallower wells, on the other hand, provide detailed information about the strata that could serve as injection formations, where water used for power production at the surface can be re-injected back down into the subsurface. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 18 Regular Council with Page 136 of 305 Committee of the Whole - 18 Item 7.8 Figure 6 - Oilfield wells in Dawson Creek area. Although oilfield well logging and well servicing provide large quantities of data, the quality of the dataset regarding subsurface or bottom hole temperature is often compromised. Temperatures on the headings of geophysical logs or in drill-stem tests often include a temperature recorded by maximum- reading glass thermometers: tools that are intended to reach their maximum temperature while near the bottom of the well before the upward logging run and are not intended as a measurement of equilibrium formation temperature. Because of this they are often referred to as “bottom-hole temperatures”, abbreviated to BHT. The large thermal mass and long thermal time constant of the valve assembly make single maximum readings potentially unreliable. Bottom-hole temperatures are also taken at the time of maximum disturbance of the well due to the previous circulation of drilling fluids (i.e. drilling mud) that can cool the reservoir. In many cases, BHT datasets are subject to significant and unpredictable instrumental and human error, and in many instances is not even recorded at all (Jessop, 1990). Despite individual inaccuracies, large numbers of bottom-hole temperatures may, by statistical treatment, give a general picture of temperature distribution and the major regional anomalies. Research by Lam et al. (1985) suggests that BHT numbers in the WCSB underestimate true reservoir temperature by as much as 15-20% when compared to formation temperatures that have re- equilibrated after drilling operations. This correlates well with research by Harrison et al. (1983), which used a correction that was developed from North American datasets; it relates the difference between the formation temperature and BHT to the depth (z) at which it is measured: -6 2 (1) Tcor= -16.51 + 0.018z - 2.34E10 Z where Z is the depth in meters. The Tcor values are added to the original BHT values. The equation is similar to ones originally proposed by Kehle et al. (1970) and was applied to produce geothermal maps for North America (Blackwell and Richards, 2004a,b; Blackwell et al., 2006; Tester et al, 2006). For a 3,000 m well, this calculates to ~17.00C to be added to recorded bottom hole temperatures. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 19 Regular Council with Page 137 of 305 Committee of the Whole - 18 Item 7.8 Modern equipment for temperature analysis includes a recorder that produces a temperature reading at intervals, typically of thirty seconds or one minute. This provides a means of judging the approach of the temperature recorder to the temperature of the formation water, which can give a more accurate assessment of the true reservoir temperature and geothermal gradient. The geothermal gradient is the rate at which the Earth's temperature increases with depth, indicating heat flowing from the Earth's hot interior to its cooler surface. Away from tectonic plate boundaries the global average for continental crust is 25-30°C/km. In the Dawson Creek area, estimates suggest that the temperature is ~100°C at a depth of 3.5 km (Majorowicz et al., 2009), resulting in a geothermal gradient of 290C/km (Figure 7). Figure 7 - Temperature (°C) at 3,500 m depth in western Canada (modified from Majorowicz et al., 2009). Because the maps produced by Majorowicz et al. (2009) are regional in nature with data being constrained to large 50 km blocks, it is desirable to calculate and obtain a higher resolution and more location-specific geothermal gradient. In order to do so, bottom hole temperatures from 6 deep wells (> 2200 m) near Dawson Creek were used; detailed information on the wells is provided in Table 1. To reduce the inaccuracies from the temperature data (as discussed above), wells that had temperature values only from logging/resistivity tools were not used in the assessment. Assuming an under- estimation of 15% for bottom hole temperature due to cooling by drilling fluids and formation disturbance, as well as a mean average temperature at surface of 10C, the average temperature gradient was calculated to be 370C/km. As an example, the GULF S DAWSON 16-04-078-15 well, which is the closest deep well to the EnCana Facility in Dawson Creek, was drilled to 3,240m and had recorded bottom hole temperatures of 1040C; using a 170C BHT correction for 3240 mTVD, this correlates to a 1210C heat resource and a 370C/km temperature gradient. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 20 Regular Council with Page 138 of 305 Committee of the Whole - 18 Item 7.8 The wells that have been deemed to be of significant interest to geothermal energy development at Dawson Creek are those that penetrate to significant depth, i.e. >2200m, and are within close proximity to the proposed project area (Figure 8). Well Name Location Depth Formation Year High BHT Status Drilled: Drilled Temp 0C mTVD ARCRES 06-19-078-14 2454 Montney 2007 84 Cased- Standing DAWSON GULF S 16-04-078-15 3240 Shunda 1980 104 Abandoned DAWSON ECAOG S Drilled & 03-02-078-15 2589 Belloy 1998 78 DAWSON Abandoned ECA Suspended 14-13-078-16 2580 Belloy 2007 77 SUNRISE Undefined ARCRES 15-26-078-15 2281 Montney 2006 68 Gas Well DAWSON FPC 12-31-078-14 3670 Precambrian 1955 138 Abandoned KILKERRAN Table 1: Deep Wells used for Temperature Gradient Analysis in Dawson Creek Area Figure 8 - Wells of interest to geothermal development at Dawson Creek. As these wells yield an average uncorrected temperature gradient of ~320C/km and corrected temperature gradient of ~370C/km at the estimated formation top depth of the Wabamun (~3,500m), both of which agree with data from Bachu (1992) (Figure 9), these gradients would yield a temperatures Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 21 Regular Council with Page 139 of 305 Committee of the Whole - 18 Item 7.8 of approximately 1120C uncorrected and 1300C (corrected) at the top of the resource. The corrected value is in close correlation to the temperatures estimated by Bachu (2002) for the Dawson Creek area. Calculations of downhole temperature gradient act as a helpful tool for understanding the heat resource potential; however, using strictly bottom hole temperature from oil and gas datasets may undervalue the true reservoir temperature. Without actual downhole data taken from the heat reservoir itself, a number of assumptions and estimates are required to calculate the geothermal resource in the Dawson Creek area. (These estimates and calculations will be discussed further in the “Geothermal Resource and Geothermal Reserves Estimate” section of the report.) Figure 9 - Temperature gradient for WCSB (Bachu, 1992). Hot Sedimentary Aquifers Geothermal reservoirs in sedimentary basins are often referred to as Hot Sedimentary Aquifers (“HSA”; Figure 10). In recent years, the geothermal industry has realized that some sedimentary basins contain attractive geothermal resources- zones that have medium temperatures (120 - 160oC) and are permeable, resulting in good fluid flow rates for geothermal energy production (80 kg/s to over 200 kg/s per well). Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 22 Regular Council with Page 140 of 305 Committee of the Whole - 18 Item 7.8 Figure 10 - Generalized diagram of a Hot Sedimentary Aquifer Geothermal Project (Hot Rock Ltd., 2012). International Examples of HSA The Great Artesian Basin in Australia is one of the world’s largest sedimentary basins and the source of Australia’s only geothermal power plant to date. The power facility at Birdsville, Australia is currently operating with gross generation capacity of 120 kWe. The plant uses water at 980C at 27 l/s that is produced from a 1,280 m deep borehole in an aquifer in the Eromanga Basin- one of the basins comprising the Great Artesian Basin. There are also a number of other HSA projects moving forward in Australia: areas within the Adelaide Geosyncline have been considered prospective by a number of companies including Torrens Energy Ltd, Planet Gas Ltd and Petratherm Ltd., and ongoing studies continue to suggest that deeper HSA targets are present and could be considered for development. Panax Geothermal Limited has also produced the first steam in early 2010 from their Salamander-1 well in the Otway Basin near Penola in South Australia; this is the first pure geothermal well in Australia to test a Hot Sedimentary Basin. A project with many similarities to development at Dawson Creek is the Unterhaching Geothermal power plant located south of Munich, Germany in the southern Molasse Basin. Two wells (3,446 m depth) were drilled beginning in 2004, and initial production commenced in 2007. These wells access hot water (123°C) from the Jurassic Malm limestone. Apart from providing district heating needs via a 28 km pipeline for a capacity load of 3,000 homes, the wells also feed hot water into a Kalina Cycle power Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 23 Regular Council with Page 141 of 305 Committee of the Whole - 18 Item 7.8 plant—the first such plant in the European Union—to produce 3.4 MWe. The success of the Unterhaching geothermal plant is largely based on the achievement of a sustainable flow rate of 135 kg/s from the production well, facilitated by large Baker Hughes pumps. Name Location Size Date Reserv Depth Fluid Temp Ambient Comments (MWe) Commenced oir (m) (°C) Temp (°C) Type Altheim Austria 0.85 2000 HSA 2,500 105 8 Electricity & District Heating Birdsville Australia 0.12 1992 HSA 1,028 98 31 Australia’s only operational plant Landau Germany 3.80 2007 HSA 3,400 160 10 Electricity & District Heating Neustadt- Germany 0.23 2003 HSA 2,250 97 10 Germany’s First Geothermal Giewe Plant Unterhaching Germany 3.36 2009 B&R 3,300 125 10 Uses Kalina Cycle Plant- High Flows ~135 kg/s Chena Hot Alaska, 0.25 2006 B&R 300 121 5 On the edge of a hot granite Springs USA body East Mesa California 72.00 1986 HSA 2,400 160 18 Funded by a $50M loan from , USA US Dept of Energy- paid back within first year of operation Table 2: Worldwide Operational Geothermal Systems with Comparable Resource Temperatures *All plants indicated are Organic Rankine Cycle (ORC) except Unterhaching, which utilizes a Kalina cycle (KC) plant Source: data was derived from Report: Low Temperature Geothermal Developments Worldwide- Overview of Low Temperature Geothermal Projects, SKM, September 2009. Enhanced Geothermal As fluid flow can be a major obstacle to overall heat extraction from geothermal reservoirs, one method to increase both in place water and the rock permeability is the hydraulic stimulation of the cleavages and fissures within the rock, which is a well-established procedure in the petroleum and natural-gas industry. Developed in the 1940's and continuously improved, it is employed to increase the productivity of oil and gas wells and is increasingly playing a key role in the exploitation of geothermal heat. Utilizing this method, the natural water throughput from the reservoir rock can be increased through active stimulation to the point that geothermal energy production becomes more economically viable. An example of this is the Landau geothermal plant in the Rhine Graben in Germany that has successfully pioneered developing geothermal projects in tight sedimentary formations. In 2007, the plant commissioned a 3 MW power plant using pumped water at 158°C from the production well at a depth of 3,300 m. In this case, the reinjection well was stimulated via hydraulic stimulation to achieve flow requirements. The production well has an estimated flow rate of ~65 kg/s, with a planned output of 80 kg/s. A key concern for geothermal project development in the Dawson Creek area is the lack of data relating to water flow within deep geothermal resources. Although the carbonate heat reservoir has favorable observed permeability, it may not have the necessary permeability to allow for effective heat transfer required for commercial extraction of geothermal resources. As with all geothermal energy projects, heat extraction from the reservoir is dependent upon output temperature and flow rate. If there is limited permeability within this hydrothermal system, a commercial geothermal project may require ‘enhancement’ of the geothermal system. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 24 Regular Council with Page 142 of 305 Committee of the Whole - 18 Item 7.8 The U.S. Department of Energy defines EGS (Enhanced Geothermal Systems) as engineered reservoirs that have been created to extract economical amounts of heat from low permeability and/or porosity geothermal resources (Tester et al., 2006; Blackwell, 2006), where produced heat is used for electrical generation. Majorowicz and Grasby (2010b) point out that EGS does not require in place water or initial high permeability of the reservoir, making application of this technology largely restricted by adequate heat supply at reasonable drilling depths. In areas with low porosity and permeability, it might also be the case that sufficient natural water may also be lacking within the formation and it would therefore be necessary to inject water into the formation. Water would be continually pumped to the surface and then re-injected back to depth to be circulated through the rock formation and, in essence, recycled. Once it has made its way through the natural subsurface heat exchanger, the water can once again be pumped back up to the surface to provide heat in and continue its cycle (Figure 11). Figure 11 - Generalized diagram of EGS program (US DOE Geothermal Technologies Program, 2011). Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 25 Regular Council with Page 143 of 305 Committee of the Whole - 18 Item 7.8 Hydraulic stimulation is increasingly playing a key role in the exploitation of geothermal heat. In this way, the natural water throughout the reservoir rock can be increased through active stimulation to the point that geothermal energy production becomes more economically viable. There have been a number of successful EGS projects worldwide including the Soultz project in France. It is important to recognize that ‘enhancing’ or ‘engineering’ the geothermal system is not in the initial plans for the Dawson Creek project, but it may offer a potential solution to a low permeability, under-producing hydrothermal system, should that be the case. Formation Analysis Following are the descriptions of the formations that have been identified as the most attractive and key zones to this project. Please note that Appendix A contains a more comprehensive list of the formations near these key zones, beginning with the deepest formation and moving vertically through younger strata. All of the formations described in this report were recognized and identified by their occurrence in the offset wells that surround Dawson Creek. Target Zone for Power Production: Wabamun (Upper Devonian) Borealis has identified the hot, porous, limestone/dolostone environment of the Wabamun formation as a potential source for geothermal power production at Dawson Creek. The Wabamun formation lies at significant depth (>3500 m; Figure 12) and therefore has the temperature required for viable heat and power production. The Wabamun is a carbonate geological unit that sits just above the PreCambrian basement rock, with only the Winterburn and Granite Wash formations separating them. The Wabamun Group is a group of predominantly carbonate formations that have been identified as having the highest geothermal potential and therefore holds the most interest to this report. The factors making the unit most attractive are its temperature, the permeable nature of the unit, as well as the known existence of an extensive source of hydrothermal fluids. All of the mentioned factors are key attributes for a high- performing geothermal reservoir. The group lithology is comprised of dolomitic limestones and calcareous dolomites, with appreciable interbedded anhydrite occurring in some places. The dolomites are more prevalent in the middle and lower sections of the group while the limestones predominate the upper part; in northwestern Alberta (close to Dawson Creek) the Wabamun is known to be composed entirely of limestone. Brecciation, secondary anhydrite and calcite veining are normal. (Glass, 1990). In the Dawson Creek area, the Wabamun Group is composed of the Tetcho and Kotcho formations, with the Tetcho formation being the older of the two. A study conducted on the Wabamun aquifer centering on the Pembina oil field in central-western Alberta (note: a more detailed description can be found in the Regional Fluid Flow section), divided the Wabamun group into 4 related, but distinct, units. The first unit, at the top, is described as being a tight argillaceous limestone, which progresses down into a section with anhydrite composition, on into a middle dolomite that was labeled as being of reservoir quality and finally into a lower anhydrite unit Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 26 Regular Council with Page 144 of 305 Committee of the Whole - 18 Item 7.8 (Bachu et al., 2008). The middle dolomite section (primarily dolomite with minor layers of limestone) is known as being the most porous with values recorded as high as 20% in some intervals. It is also known as being the thickest of the sections, containing 25-50m of reservoir quality strata (Bachu et al., 2008). Figure 12 - Cross section of Wabamun Group in Peace River area (Halbertsma, 1994). Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 27 Regular Council with Page 145 of 305 Committee of the Whole - 18 Item 7.8 Elevation data from wells near Dawson Creek were mapped and contoured (Figure 13), resulting in an estimated formation top elevation of -2,900 mASL (meters above sea level). There is, however, a map produced by the Glass (1990) of the top of the Wabamun (Figure 14) that suggests a shallower elevation of -2,800 mASL. Because many wells in this area do not extend as deep as the Wabamun, the dataset is consequently sparser than desired. Also, because Dawson Creek is on the outskirts of the data shown on the map produced by Glass and thus potentially less reliable due to extrapolation of data, an intermediate formation top elevation of -2,850 mASL has been selected as the best estimate. Based on an elevation of 665 mASL for community of Dawson Creek, this is equivalent to a true vertical depth (TVD) of 3,515 m (mTVD). With an uncorrected geothermal gradient of 32°C/km and a corrected gradient of 37°C/km estimated for the Dawson Creek area, this TVD value therefore suggests an uncorrected temperature of 112°C and a corrected temperature of ~130°C at the top of the formation. The corrected value is in close correlation to the temperatures estimated by Bachu (2002) for the Dawson Creek area. Figure 13 - Elevation of the Wabamun formation, based on deep oilfield well database. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 28 Regular Council with Page 146 of 305 Committee of the Whole - 18 Item 7.8 WABAMUN/PALLISER STRUCTURE Structure contours and subcrop paleogeology for the top Wabamun; and major oil and gas !elds Contour interval = 200 metres Wabamun/Palliser undi"erentiated Wabamun zero edge Three Forks undi"erentiated Tetcho-Kotcho outcrop Big Valley Oil !eld Stettler/Torquay Gas Field Kotcho Dawson Creek Tetch/Trout Rivero scale 1:5 000 000 0 100 200 300 kilometres 0 100 200 miles Figure 14 - Wabamun formation elevation modified from Glass (1990) dataset. The Wabamun formation is recorded to be up to 240m thick regionally (Glass, 1990; Figure 15), and according to the Bachu et. al (2008) the thickness of the formation in the Dawson Creek area is 200 m. Using these values and relevant nearby oilfield well data, an estimated thickness of 175 m is used for the Wabamun formation at the project area. WABAMUN/PALLISER ISOPACH AND LITHOFACIES Thickness contours for the interval from the top Wabamun to the base of the upper Graminia silt (top Blue Ridge and equivalents); and generalized lithology Contour interval = 50 metres Dawson Creek Control well Well with Cansrat coverage Limestone, bu!-brown, massive, micritic, pelloidal; with interbedded "nely crystalline dolomite at base Dolomite, brown, "nely crystalline, porous in part; with subsidiary interbeds of brown, micritic, pelloidal limestone scale 1: 5,000,000 0 100 200 300 kilometres 0 100 200 miles Figure 15 - Wabamun isopach map modified from Glass (1990) dataset. According to both Baniak & Gingras (2012) and Bachu et. al (2008), the Wabamun has rather variable porosity and permeability throughout the formation, changing from a fine-grained to a chaotically distributed, fabric-selective dolomite. The Pine Creek gas field, which is ~200 km southeast of Dawson Creek in west-central Alberta, exhibits two primary reservoir facies: 1) laminated/cross- laminated peloidal grainstones-packstones, and 2) Burrow-mottled wackestones-mudstones with preferentially dolomitized burrows (Baniak & Gingras, 2012). Recorded porosity values range from below 1% to as high as 6%, with permeability ranging from less than 1 mD to 500 mD (Baniak and Gingras, 2012). The following tables show data collected by the Helmholtz-Alberta Initiative from the Central Alberta Basin near Edmonton that demonstrate Wabamun formation porosity values range Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 29 Regular Council with Page 147 of 305 Committee of the Whole - 18 Item 7.8 between 0.4-28.3%, with an average of 10.4%, and permeability values from 0.1 - 406.0 mD, with an average of 21.4 mD (Table 3). The Pembina oil field study (Bachu et al., 2008) had sparse data for the Wabamun because the formation is not a typical target reservoir unit for the Pembina field. The well data that was used had measurements coming from the lower and tighter part of the formation, resulting in values that were not representative of the more permeable and porous section of the formation containing the regional scale aquifer. Values of 0.4-5% for porosity were reported, as well as a range from 0.01-6.3 mD for horizontal permeability with subsequent analyses of injectivity tests yielding permeability values in the 100mD range at the reservoir scale (Bachu et al., 2008). The data indicates a bi-modal distribution of porosity and permeability within the Wabamun formation; at the estimated depth it is very likely that the formation is naturally fractured. Table 3: Porosity and Permeability for Formations in Central Alberta Basin (Weides et al, 2011) Potential Zone for Water Injection There are two formations in the area immediately surrounding Dawson Creek that are presently, or have been historically, used for the injection and disposal of water down hole: the Boundary Lake and Baldonnel formations. The shallowest unit is the Baldonnel with a depth of ~1,750 mTVD; it is estimated to be just 15 m thick and is observed to be the injection formation in only one well of the dataset. The Boundary Lake formation, on the other hand, is slightly deeper at a depth of 1,885 mTVD, with an estimated thickness of 170 m and is utilized more often as an injection formation, with 6 wells having a history of water injection in the immediate area. These qualities suggest that the Boundary Lake formation is the more attractive unit for water injection. Well Name Location Depth Drilled: Formation Year Status TVD Drilled AVENEX ET AL 12-22-077-16 1354m Boundary Lake 2004 Water Injection SUNRISE HUSKY 08-10-079-16 2315m Boundary Lake 1997 Water Injection SUNRISE Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 30 Regular Council with Page 148 of 305 Committee of the Whole - 18 Item 7.8 ARCRES HZ 13-25-078-15 3677m Baldonnel 2007 Water Injection DAWSON ARCRES HZ A15-26-078-15 2220 Boundary Lake 2009 Water Disposal DAWSON AVENEX ET AL 16-10-079-16 889m Boundary Lake 2004 Water Injection SUNRISE MURPHY B- 043-E/093-P- 2957m Boundary Lake 2008 Water Injection HERITAGE 09 MURPHY HZ C- 043-E/093-P- Not Observation- Not specified Boundary Lake SUNDOWN 09 specified water Table 4: Recent Injection Wells in Dawson Creek Area. Boundary Lake Formation (Upper Triassic) The data from the wells surrounding Dawson Creek show that the bulk of subsurface re-injection occurs into the Boundary Lake formation, which is also known to host oil and gas reserves. The formation is estimated to be 170 m thick and sits at a depth of 1,885 mTVD. The base of the unit consists of anhydrite, with porous limestone and dolomitic limestone lying above. The limestone is light brownish to darker or greyish, and is generally micritic to finely microgranular to skeletal fragmental and has a coarse micro granular matrix (Glass, 1990). The siltstones and mudstones of the Charlie Lake formation unconformably overlie the Boundary Lake formation. The most porous and permeable portion of the zone resides at the top of the unit where most of the pore volume is contained. Porosity and permeability values are on average 15% and 22 mD, respectively, in up to 3 m of pay (Doerkson et al., 1995). Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 31 Regular Council with Page 149 of 305 Committee of the Whole - 18 Item 7.8 Figure 16 - Elevation of Boundary Lake formation, from deep oilfield well database. Baldonnel Formation (Upper Triassic) The Baldonnel formation is estimated to be 15 m thick and a top at 1,750 mTVD. Within the Peace River Plains the Baldonnel formation is comprised predominantly of dolostone, with well-developed porosity and permeability. Like the Boundary Lake formation, it is also a known producing gas reservoir. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 32 Regular Council with Page 150 of 305 Committee of the Whole - 18 Item 7.8 Figure 17 - Elevation of the Baldonnel formation, from deep oilfield database. Target Zone for Heat Production Debolt Formation (Mississippian) The Debolt formation is known to consist of two distinct members: a limestone lower unit and a dolomitic upper unit (Glass, 1990), and has fracture and vuggy porosity (Shell Canada Ltd, 2009). The lower unit is characterized as being a brown, cherty, massive bioclastic limestone that is partly crinoidal, with the majority of argillaceous rocks sitting near the base of the formation. The upper member is light brown, mainly microcrystalline to finely crystalline dolomite, containing some anhydrite and micritc limestone. (Glass, 1990). Well data in the area suggests that the top of the Debolt lies at an elevation of -2,150 mASL (2,815 mTVD) with an estimated thickness of ~250 m. With a geothermal gradient of 37°C/km estimated for the Dawson Creek area, the depth of the Debolt suggests a temperature of ~104°C at the top of the formation. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 33 Regular Council with Page 151 of 305 Committee of the Whole - 18 Item 7.8 Figure 18 - Elevation of the Debolt Formation, from deep oilfield database. Stratigraphy Within the Dawson Creek area, the Wabamun formation has been chosen as the most attractive and viable formation to function as a geothermal reservoir for power production as a result of its depth, temperature and geological composition. The formations that bound it are also key to the analysis as they act as insulators and fluid boundaries that are important in constraining reservoir qualities. Because drilling costs are dependent on the amount of time that it takes to drill to the required depth of the resource, the composition and thickness of every unit encountered in drilling plays a factor in the calculation of the drilling costs. Because of this, the data from the wells in the Dawson Creek area were used to determine which formations were likely to be encountered, at what depth they would be encountered, what thickness they would be present with as well as their geological composition. This information is summarized in Table 5 with more detailed descriptions of the most relevant units in Appendix A. Descriptions of all of the following formations can be provided upon request. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 34 Regular Council with Page 152 of 305 Committee of the Whole - 18 Item 7.8 Elevation (m) Composition Formation TVD (m) Thickness (m) a.m.s.l. Doe Creek +375 290 110 Fine-grained sandstone, argillaceous towards the base Dunvegan +265 400 200 Deltaic sandstone Shaftesbury +65 600 285 Friable dark marine shale Paddy -220 885 25 Poorly sorted, fine to very coarse sandstone; partly silty and carbonaceous, containing thin shale and some coal beds Cadotte -245 910 45 Fine to very fine grained, friable to firm, locally calcareous or sideritic, often glauconitic, salt and pepper sandstone with good porosity Harmon -290 955 30 Non-calcareous, firm, thin-bedded to fissile marine shale Notikewin -320 985 15 Clayey sandstone with interbedded shale Falher -335 1000 15 Lithic greywacke, shales and siltstones, thin coal beds- traces of glauconite common Spirit River -360 1015 325 *composed of Falher and Notikewin members Bluesky -675 1340 15 Fine to medium grained sandstone, usually glauconitic containing fair porosity Gething -690 1355 135 Heterogeneous unit composed of chert pebble conglom & conglomeratic to coarse grained sandstone, fine grained sandstone, siltstone and mudstone Cadomin -825 1490 35 Conglomerate; matrix of coarse grained sand and silica cement Nikanassin -860 1525 90 Fine grained Sandstones and shales Fernie -950 1615 85 Shales Nordegg -1035 1700 50 Cherty and phosphate limestones Baldonnel -1085 1750 15 Predominantly dolostone with well- developed porosity & permeability & in many areas forms a productive gas reservoir Charlie Lake -1100 1765 120 Fine to medium grained quartzose sandstone, occasionally cemented by anyhydrite and dolomite, grading to dolomitic quartzose siltstone Boundary -1220 1885 170 Limestone; micritic to finely Lake microgranular to skeletal fragmental, Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 35 Regular Council with Page 153 of 305 Committee of the Whole - 18 Item 7.8 with coarse microgranular matrix; usually anhydritic Halfway -1390 2055 20 Massive quartz sandstones, in part dolomitic & calcareous, minor amounts of chert, grey to buff, finely crystalline dolomite and dolomitic siltstones Doig -1410 2075 65 Fine-grained argillaceous siltstone & calcareous shale Toad -1475 2140 40 Very calcareous siltstone, silty limestone, silty shale, silty dolostone, calcareous sandstone Montney -1515 2180 295 Siltstones & dark grey shales Permo -1810 2475 15 Pennsylvanian Belloy -1825 2490 115 Sandy dolostones and sandstones with scattered low perm units like chert Taylor Flat -1940 2605 85 Limestone/dolomite with occasional sandstone Kiskatinaw -2025 2690 75 Quartzone sandstone with interbedded shale Golata -2100 2765 50 Fossiliferous limestone grading upwards to shales Debolt -2150 2815 250 Limestone and dolomitic rock with fracture and vuggy porosity; dominantly limestone in NE BC Elkton -2400 3065 50 Dolomite and lesser limestone, fine to coarse crystalline, some interbedded silty dolomites Shunda -2450 3115 75 Interbedded Limestone and dolomite, argillaceous limestone, silty and argillaceous dolomite, siltstone, sandstone, shales and breccias Pekisko -2525 3190 125 Coarsely crinoidal massive Limestone and shale Banff -2640 3305 205 Base of shale and marlstone grading upward into spiculite, bedded chert and carbonates passing into interbedded sandstone, siltstone and shale Exshaw -2845 3510 5 Base of shale, gradationally overlain by siltstone and silty limestone Wabamun -2850 3515 175 Dolomitic limestones and calcareous dolomites Winterburn -3025 3640 100 Carbonate dominated silty dolomite, capped by a bedded evapourite Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 36 Regular Council with Page 154 of 305 Committee of the Whole - 18 Item 7.8 sequence Granite Wash -3125 3790 25 Granite/conglomerate Precambrian -3150 3815 N/A Granite Table 5: Stratigraphy/Geological Formations for Dawson Creek Area (zones of interest in Bold) Regional Fluid Flow Within the Wabamun formation flows a known aquifer that extends regionally across the Western Canadian Sedimentary Basin. The aquifer is bounded below by the Precambrian basement and above by the shaly units of the Banff and Exshaw. Studies conducted in 2008 by the Bachu et al. in conjunction with the Alberta Geological Survey (AGS) and the Energy Resources Conservation Board (ERCB) near the Pembina oil field and in 2001 by Anfort, Bachu and Bentley in the south-central Alberta basin analyzed the characteristics of the Wabamun Formation aquifer near the Pembina oil field. The extent of the study area used in each case was located within western Alberta and did not include the area around Dawson Creek; however, the results are considered to be relevant to the hydrogeological analysis of this geothermal report since the aquifer is regional in nature and thus generalizations about the aquifer can be drawn from the observed trends within the data. The northwestern corner of the Pembina study area lies at 54°N, 117°W while the same corner of the Alberta basin study area is at 56°N, 115°W; the town of Dawson Creek sits at about 55°45”N, 120°14”W. The Pembina study found that the subsurface water within the aquifer was of Na-Ca-Cl type and yielded salinity values ranging from 100-180g/L throughout the area, with the portion nearest to Dawson Creek suggesting a value nearer to 180g/L. Conversely, the Alberta Basin study provides values that, if extrapolated beyond the bounds of the study area, are likely ≤100g/L. Convincing evidence showed that the Banff and Exshaw formations function effectively as an aquitard, preventing cross-formational flow between the Wabamun and the overlying Mississippian formations (Bachu et al., 2008). In both studies, the flow of water within the Wabamun aquifer (based on the distribution of calculated values of hydraulic head from different wells) revealed a generally northeastward flow of water within the aquifer. The hydraulic head values reveal a general decrease to the northwest (i.e. towards Dawson Creek). This trend is significant because a decrease in hydraulic head values can be associated with an increase in permeability within the unit, leading to an encouraging environment for Dawson Creek because high permeability is an attractive attribute for geothermal power development. A study conducted by Bachu (2002) detailed the distribution of pressure values at the top of the Wabamun formation in northeastern BC. The study indicated that the pressure at the top of the Wabamun formation in the Dawson Creek area is in the order of ~34 MPa, close to the hydraulic pressure expected at this depth. In summary, data pertinent to the analysis of the Wabamun aquifer is relatively sparse and only broad generalizations about the aquifer’s characteristics can be derived. The data does show that the aquifer is regional in nature and is under hydrostatic pressure, suggesting that there is a sufficient Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 37 Regular Council with Page 155 of 305 Committee of the Whole - 18 Item 7.8 amount of water present at high enough pressure to be suitable for geothermal development. Also, the flow of this water is generally to the northeast, with a potential increase in permeability of the Wabamun near Dawson Creek allowing the water to flow more easily. While all of the data together suggest an encouraging subsurface fluid flow environment, the assessment would be benefit from direct confirmation of all these values using wells in the Dawson Creek area. Geothermal Resource and Geothermal Reserves Estimate Introduction to Canadian Geothermal Code for Public Reporting To understand the risk associated with the subsurface energy programs (like oil and gas or geothermal energy), it is crucial to understand the assessment of recoverable resources. Unlike wind or solar, energy resources within our planet may not be recoverable to surface and drilling is required to fully understand the resource’s actual potential. To help the analysis of the risk and subsurface potential associated with geothermal energy resources, the Canadian Geothermal Energy Association (CanGEA) has developed a reporting code of resource potential similar to those in mining (43-101) and oil and gas reservoir analysis (51-101). The Canadian Geothermal Code for Public Reporting (the Code) was developed for public reporting of geothermal resources and reserves. CanGEA and AGEA (Australian Geothermal Energy Association) recently collaborated with the Australian Geothermal Energy Group to jointly produce a methodology for estimation, quantification of geothermal resources and reserves. The resulting document, The Code (2008 Edition) was the world’s first for the public reporting of geothermal data. Key elements of the Australian Code have been adopted and/or formed the basis of the Canadian Code (CanGEA, 2010). At its most basic interpretation, geothermal energy is the energy in the form of heat beneath the surface of the solid Earth. The Code is relevant to all end uses of Geothermal Energy including both electricity generation and direct use projects. The methodology is relevant to all forms of geothermal play including naturally convective systems, Hot Sedimentary Aquifers (HSA), Hot Rock and Engineered/Enhanced Geothermal Systems (EGS), volcanic and non-volcanic heat sources. The Code is a required minimum standard for Public Reporting. It outlines the requirements for the reporting of exploration results, geothermal resources and geothermal reserves and provides a minimum, mandatory set of requirements for the public reporting of geothermal resources and reserves. Companies are encouraged to provide information in their Public Reports that is as comprehensive as possible. The Code was designed as a basis for transparency, consistency and confidence in public reporting of geothermal information with the following primary objectives: 1. Provide a reporting basis that is satisfactory to investors, shareholders and capital markets, such as the Canadian Securities Exchanges, in a similar manner that existing Canadian Codes provide for reporting of mineral and petroleum resources (National Instruments 43-101 and 51-101, respectively). Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 38 Regular Council with Page 156 of 305 Committee of the Whole - 18 Item 7.8 2. Be applicable to geothermal plays in both Canada and internationally since the Canadian Securities Markets are utilized for the exploration and development of both local and international geothermal plays for companies based in Canada and other jurisdictions. This report references the Code as it pertains to project specific exploration results and geothermal resources or reserves, and was prepared for the purpose of informing investors or potential investors and their advisors. This report is designed to satisfy regulatory requirements of the Code. Geothermal Code – Resource & Reserves Based on other international geothermal codes, mining codes and oil and gas reserves reporting, the geothermal code uses categories to differentiate understanding of a geothermal energy potential: 1- Inferred, Indicated and Measured for Geothermal Resources 2- Probable and Proved for Geothermal Reserves Geothermal Resource A ‘Geothermal Resource’ is a geothermal form, quality and quantity that there are reasonable prospects for eventual economic extraction. If there is no prospect for eventual economic extraction then the body of heat should not be included in estimates of Geothermal Resources or Geothermal Reserves. The location, quantity, temperature, geological characteristics and extent of Geothermal Resource are known, estimated or interpreted from specific geological evidence and knowledge. “Inferred Geothermal Resource” is that part of a Geothermal Resource for which recoverable thermal energy (MWth-years) can be estimated only with a low level of confidence. The Inferred category is intended to cover situations where a Geothermal Play has been identified and limited measurements and sampling have been completed, but where the data are insufficient to allow the extent of the Geothermal Resource to be confidently interpreted. It is based mainly on indirect measurements, for example extrapolation of temperature profiles (to a reasonable degree and on a rational basis) and other associated measurements such as rock properties and heat flow, and requires a reasonably sound understanding of the subsurface geology in three dimensions derived, for example from geophysical surveys, to indicate temperature and dimensions. ‘Indicated Geothermal Resource’ is that part of a Geothermal Resource that has been demonstrated to exist through direct measurements that indicate temperature and dimensions so that recoverable thermal energy (MWth-years) can be estimated with a reasonable level of confidence. Thermal energy in place has been estimated through direct measurements and assessments of volumes of hot rock and fluid with sufficient indicators to characterize the temperature and chemistry. A Geothermal Play can be classified as an Indicated Geothermal Resource when there has been sufficient delineation drilling, testing and other survey information into the Play such that the nature, quality, amount and distribution of data allow confident interpretation of the geological framework, the assumption of continuity of the thermal energy distribution and a reasonable estimate of the extent of the Play. For an Indicated Geothermal Resource the well locations would be too widely or Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 39 Regular Council with Page 157 of 305 Committee of the Whole - 18 Item 7.8 inappropriately spaced to confirm reservoir continuity but would be spaced closely enough for continuity to be indicated. A ‘Measured Geothermal Resource’ is the part of a Geothermal Resource that has been demonstrated to exist through direct measurements that indicate at least reservoir temperature, reservoir volume and well deliverability, so that recoverable thermal energy (MWth-years) can be estimated with a high level of confidence. A Geothermal Play may be classified as a Measured Geothermal Resource when the nature, quality, amount and distribution of data are such as to provide reasonable certainty in the opinion of the Qualified Person determining the Geothermal Resource, that the thermal energy in place can be estimated to within close limits and that any variation from the estimate would be unlikely to significantly adversely affect potential economic viability. This category requires a high level of confidence in and understanding of the dynamics of the heat source. Geothermal Reserve A ‘Geothermal Reserve’ is that portion of an Indicated or Measured Geothermal Resource, which is deemed to be economically recoverable after the consideration of both the Geothermal Resources parameters and Modifying Factors. These assessments demonstrate at the time of reporting that energy extraction could reasonably be economically and technically justified. The term ‘economically recoverable’ implies that heat extraction of the Geothermal Reserve has been demonstrated to be viable under reasonable financial assumptions. A ‘Probable Geothermal Reserve’ is the economically recoverable part of an Indicated or Measured Geothermal Resource. It will differ from Proved Reserves because of greater uncertainty, usually in terms of factors that impact the recoverability of thermal energy such as well deliverability or longevity of the project. There will be sufficient geoscience and engineering indicators to characterize flow, temperature and chemistry but may be less direct measures indicating the extent of the Geothermal Resource, within economically feasible drilling depth. Appropriate technical evaluation, assessments and studies will have been carried out, and include consideration of and modification by appropriate assumption related to drilling, economic, legal, environmental, social, and governmental factors. A Probable Geothermal Reserve has a lower level of confidence than a Proved Geothermal Reserve but is of sufficient quality to serve as the basis for a decision on the development of the Geothermal Resource. It is ‘more likely than not’ that the Reserve estimate is correct, reflecting a greater than 50% chance of occurrence. A ‘Proved Geothermal Reserve’ is the economically recoverable part of a Measured Geothermal Resource. It includes a drilled and tested volume of rock within which well deliverability has been demonstrated and commercial production for the assumed lifetime of the project can be forecast with a high degree of confidence. Appropriate assessments and studies have been carried out, and include consideration of and modification by the assumed economic, market, legal, environmental, social and Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 40 Regular Council with Page 158 of 305 Committee of the Whole - 18 Item 7.8 governmental factors. While these assessments demonstrate at the time of reporting that heat extraction could reasonably be economically justified, it is not until production is achieved which satisfies all the technical and modifying factors that it is ‘Proved’. A Proved Geothermal Reserve represents the highest confidence category of Geothermal Reserve estimate. Once a Geothermal Reserve has entered production and some reservoir response can be observed, classification of remaining Geothermal Reserves should become better defined. Geothermal Reserves under production should be re-estimated with reservoir models recalibrated to produce new estimates that are more closely linked to observe temperature and pressure changes in the reservoir and related to the rate of energy recovery achieved. Figure 19 - Canadian Geothermal Code- Resources and Reserves (CanGEA, 2010). Calculation of Thermal Energy Potential In order to estimate the thermal energy or heat content of a rock mass (with zero porosity) a 5 km x 3 5 km unit, 175m thick (4.38 km total volume) was considered, at an initial temperature of To (112°C uncorrected and 130°C corrected). If this rock mass is cooled through a temperature difference of 130°C to a final temperature of 65°C, then the heat removed, Q in Joules (J), is given by Q = Cp * ρ * V * (T − To) (1) where reasonable average values are 2700 kg m−3 and 900 J kg−1 ◦C−1, for the density (ρ) and heat capacity (Cp) of the rock, respectively. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 41 Regular Council with Page 159 of 305 Committee of the Whole - 18 Item 7.8 Q = (2700 kg m−3) × (900 J kg−1 °C −1) × (4.38 km3) × (130 − 65°C) = 7.36 x 1017J. (2) Using this approach, the quantity of thermal energy that could potentially be released from a volume of deep-seated rock (termed here ‘in-place resource’) can be mapped to determine the long- term sustainability of heat exploitation. The size of the accessible resource is much smaller than implied by this simplistic approach and it can be as low as 2% of the total in-place resource (conservative), 20% (midrange) and 40% (upper limit) (Tester, 2006). For areas of potentially very low permeability and EGS applications like the rock formation, the value of is as low as 2% of the heat resource for heat available for production, (Tester, 2006). However, in sedimentary aquifer zones with higher porosity and permeability, values as high as 25% have been used (Williams et al., 2008). For the Wabamun formation, an expected recovery factor of 15% was used. Resource Assessment for Code Compliance As discussed in geology section above, the Dawson Creek area has the advantage of having a significant history of oil and gas exploration and development drilling in the area. The formation of interest, the Wabamun, has been accessed on multiple occasions in the surrounding area with sufficient delineation drilling, formation mapping and reservoir testing to better characterize the resource. The nature, quality, amount and distribution of data allow confident interpretation of the geological framework and there is an assumption of continuity of the thermal energy distribution and a reasonable estimate of the extent of the Play near Dawson Creek. The project therefore does have the necessary depth of drilling required for “direct measurements that indicate temperature and dimensions” as per the “Code”. However, also as per the “Code” neither temperature nor subsurface flow has been measured within the Wabamun, within the Dawson Creek area of interest. As such, the geothermal resource in the Dawson Creek area can only be classified as an ‘Indicated’ Geothermal Resource Play. To move to higher categories of confidence or “Measured Geothermal Resource” or potentially “Probable Reserves, a deep drilling program, with direct measurements indicating temperature and dimensions of the potential heat reservoir, would have to be undertaken. With conventional binary turbine technology and standard geothermal drilling into the necessary heat resource (to depths of approximately 3.5 km in this area), the “indicated heat resource” for this project is on the order of 7.36 x 1017 Joules of thermal energy in place as classified according to the Canadian Geothermal Reporting Code, relative to 650C. Using 4 production wells at flow rates of 100kg/sec (total of 400kg/sec), the recoverable and converted energy has the potential to be equivalent to an estimated 13.3MWe (gross) for 31.7 years (assuming thermal energy recovery of 15% and binary turbine efficiency of 12%). Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 42 Regular Council with Page 160 of 305 Committee of the Whole - 18 Item 7.8 Assumptions, Caveats The resource assessment for Dawson Creek is based on the Volumetric Method. From a broad range of surface and subsurface assumptions, this estimates the total converted energy that can be reasonably expected to be extracted from a specific volume of rock, underlying the area of interest. For Dawson Creek, the key parameters and assumptions used in the volumetric assessment are as follows: • Project Life: This was taken to be the number of years expected from an aggregate flow rate of 400 kg/sec and is calculated to be 31.7 years. Adopting a shorter project life would mean that a greater MWe output would be sustainable. Note: MWe refers to megawatts of electrical output while MWth refers to megawatts of thermal output. • Project Area: Geothermal field area is estimated at 25 km2 • Resource Temperature: The average reservoir temperature was assumed to be 130°C, corrected. • Cut-off Temperature: For optimum binary turbine power production a cut off temperature of 65°C is proposed. • Reservoir Volume: The reservoir volume is defined as the volume of rock from which the project will draw heat over its useful life. This is 25km2 and the reservoir is 175m thick for an volume of 4.38km3 [dimensions/strata] • Heat Capacity: The heat capacity of the reservoir rocks is estimated by multiplying the specific heat capacity by the specific gravity (density). The specific heat capacity was taken to be 0.9 kJ/(kg °C), which is an expected value for the reservoir rock in the Dawson Creek area. • Density: The average density of reservoir rocks was taken to be 2700 kg/m3, which is typical for the range of lithologies in the Dawson Creek area. • Porosity: The average porosity was assumed to be 10%, based on database analysis from surrounding oilfield wells. • Flow Rate: 400 kg/s (estimated for 4 production wells producing 100kg/sec) • Liquid saturation: It is assumed that this geothermal resource will be a liquid phase water resource with little to no vapor (steam) or hydrocarbons. • Conversion Efficiency (thermal to electric): The conversion efficiency depends on the reservoir temperature, climatic conditions and the specific design of the power plant and facilities. The development plan has considered a binary turbine, in which case the conversion efficiency will probably be approximately 12%. This is gross power production from the plant. The planned project design likely requires pumping for water production and reinjection wells and thus some parasitic load will be considered in net power production calculations. • Recovery Factor: Using the conservative numbers for volcanic and granitic fracture rock environments the recovery factor is 15%. • Capacity factor: This was assigned a value 95% based on a comparison with similar types of geothermal power plants operating in similar temperature and project conditions. • The geothermal system is a closed system with no energy exchange with surrounding rock from outside the permit area. It is recognized that this is potentially limiting the heat flow opportunity into the reservoir, but necessary for heat reservoir calculations. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 43 Regular Council with Page 161 of 305 Committee of the Whole - 18 Item 7.8 GeoPower Project- Development Costs With estimates of geothermal heat potential and depth to resource in hand, an initial geothermal project design can be developed, and costed, for power generation in the Dawson Creek area. Using the geothermal resource assessment values noted above it is possible to calculate the potential development costs of a geothermal energy project and, in conjunction with the BC Hydro Standing Offer Program [SOP], provide an initial view on putative rates of return. However, as the geothermal production costs are directly related to the site and resource characteristics, and as much of the subsurface variables are currently poorly quantified, the rates of return may range significantly. Accordingly, our design is intended as an initial estimate for budgeting purposes. Once the resource characteristics are confirmed, developers can relatively easily estimate the cost of bringing the project online and thus calculate the minimum power price needed to make the project economically viable. For Dawson Creek, given the BC Hydro SOP, we don’t need to estimate the minimum power price but can directly evaluate the projects Internal Rate of Return [IRR], as the mooted geothermal power generation meets all the preconditions of the SOP. Business Environment With the recent release of the GSC’s “Geothermal Potential of Canada” report, it becomes apparent that while the heat resource may be viable for development, other related issues may be the primary reasons why geothermal energy development had not already progressed in Western Canada. Issues with political environments, competing power generation options (hydro) and the exploration and drilling risk may have prevented prior geothermal project development. Upcoming demands on community power supply and new large-scale pipeline, liquefied natural gas, and mining projects continue to put pressure on the supply/demand imbalance for NW British Columbia. Smaller, renewable energy projects, like a potential 10-15 MW geothermal project at Dawson Creek, could be part of the solution for this imbalance. To determine overall project viability, it was necessary to gather as much information about the specific business opportunity at Dawson Creek and relate that information to the subsurface/geological data discussed above. Local infrastructure, heat and power requirements, levelized cost of power are crucial variables to establishing the best energy solution. By calculating the overall or levelized cost of geothermal energy development it could then be compared to other potential sources of electricity and heat for the Dawson Creek area. Project Guidelines For our Dawson Creek project analysis, we are using the following project assumptions, grounded in data extracted from previous local oil and gas exploration work and our own knowledge of geothermal heat reservoirs: (Further details of reservoir in “assumptions, caveats”) • 1300C heat reservoir and plant inlet temperature • 5 km X 5 km surface area with a 175m thick reservoir Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 44 Regular Council with Page 162 of 305 Committee of the Whole - 18 Item 7.8 • Hot Sedimentary Aquifer with fluid flow of 400kg/sec (4 production wells at 100kg/sec) • 6 wells; 4 production wells drilled to 3.5 km and two injection wells to 1.8 km • Close proximity to distribution infrastructure; “Plant gate” sale of power Exploration & Resource Confirmation While the exploration budget is overall a small percentage of overall or levelized cost, it can be a key variable to reducing these costs. Many projects that are investigated for geothermal potential may never move past the resource confirmation stage. There is also significant variation in terms of what a company or project will spend in exploration depending on the information available and the level of understanding of the geothermal reservoir itself. Exploration strategies may include re-logging existing wells for temperature gradients, water sampling for geochemistry, potential geophysical analysis (MT survey, seismic, infrared) and gradient and/or slimhole drilling. The lack of surface features distinguishing the area as a geothermal resource (hot springs, fumaroles, rock alteration patterns), suggests that the Dawson Creek area could be considered a “hidden” geothermal play. However, the resource has been recognized by the extensive oil and gas drilling that has taken place. In Austria and Germany’s Hot Sedimentary Aquifer geothermal plays, industry considered the local oil and gas wells to be “exploratory wells” for the purposes of geothermal project development. From a financial perspective, for a 100MW project, GEA estimates that the exploration costs would be $770,000 for regional reconnaissance, 1.5 to 3 million for district exploration, and about $7.7 million for prospect evaluation (Taylor, 2007). As the proposed Dawson Creek project would be much smaller, so would the associated exploration costs. Much of the exploration budget should be focused on analysis of previous oil and gas wells in the area, included acquiring accurate bottom hole temperatures, well logs and estimation of potential flow rates within the Wabamun formation. If possible, it would advantageous to access recently drilled wells in the area that reach the Wabamun formations, to run temperature gradient tools and attempt to flow the wells. This would help to verify potential flow rates and water temperature for power facility design. Re-entry of existing suspended or abandoned wells is difficult to price, due to the environmental liability associated with well access and re-entry. Pricing is also dependent on whether the well is acquired from an oil and gas company (i.e. purchased and environmental liability assumed) or just accessed as research and potential payment to oil and gas company for rental/access. A conservative estimate of exploration/confirmation budget is $500,000 - $700,000 for area research and analysis and the requisite well servicing for acquiring the temperature and flow rate data. We would further add $50,000 for acquiring the geothermal exploration/production rights through an auction process. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 45 Regular Council with Page 163 of 305 Committee of the Whole - 18 Item 7.8 Production Drilling Production drilling costs are highly dependent upon resource characteristics. The resource depth and rock formation (nature, structure and hardness) are the two major parameters influencing the cost of drilling a geothermal well. Rock formation determines the drilling speed and depth to resource determines the number of casing strings needed and together they determine the time required to drill and complete the well. A significant reason why many geothermal prospects go undeveloped is that they are too deep to be drilled economically. With the largest degree of risk to a project and up to ~70% of overall project costs, drilling costs are the key variable to understanding overall project viability. Drilling a geothermal well consists of a successive drilling and well casing steps until the top of the resource is reached. Once the well penetrates into the geothermal reservoir, the only additional casing that may be required would be an un-cemented slotted liner to prevent rocks and debris from falling into the wellbore. However if the formation rock is competent then no additional casing is required. Well productivity is influenced by its’ length in permeable rock, as well as the number of productive fractures it crosses. As these parameters vary, drilling a standard geothermal well may last from 25 to over 90 days, with a reasonable average of 45 days. Deeper wells also require larger and thus more expensive drilling rigs. Drilling costs are estimated for an approximate depth of 3.5 km using the following equation from WellCost lite (drilling cost estimate program) from Tester (2006). Using the cost equation: Cost = 3.23 (0.2359z) where unit cost is $million and z unit is km. Cost = 3.23 (0.2359 *3.5km) =~$2.63 million/well Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 46 Regular Council with Page 164 of 305 Committee of the Whole - 18 Item 7.8 Figure 20 - Completed well costs in year 2003 US$ as a function of depth (Tester, 2006). These estimates are based on 2003 drilling costs and a wide variety of rock environments that may involve slower rate of penetration for drilling. For well-known sedimentary environments like the area surround Dawson Creek Basin, the drilling cost can be estimated using cost data from surrounding wells. Industry drilling estimates for the oil and gas in the area, calculate drilling of 3,500m well designed for higher water production, e.g. geothermal operations, are ~65 days (Ed Furcho- Canadian Professional Engineers, 2012). This is a conservative estimate as a recent oil and gas well (12/11/2007) 3344m well, MURPHY SWAN D- 011-B/093-P-09, took only 37 days to drill. Current drilling costs for rig capable of drilling to 3,500m in the Western Canadian Sedimentary Basin are in the range of $18,000 to $25,000 per day, depending on availability and season. At ~$20,000/day and 65 days of drilling, an average oil field well would cost $1.3 in drilling costs for a 3,500m well. A larger well size may be necessary for geothermal energy production and would add, on average, 20% to the overall cost (Tester, 2006). There are also multiple other costs involved with drilling programs including mobilization, cement, mud, casing and site construction; these would need to be fully analyzed prior to the development of the well design and drilling program. Our estimate is ~$5.5 million for a completed 3.5km vertical geothermal production well in the Dawson Creek area. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 47 Regular Council with Page 165 of 305 Committee of the Whole - 18 Item 7.8 As discussed in the earlier geological section, there is the possibility of completing the injection well into a shallower formation and thus create significant cost savings for the injection well. For the completion of a 1,800 m geothermal injection well, our cost estimate is ~$3.5 million. As drilling activity continues, developers collect various kinds of data about the resource to better understand its size and behavior. Better knowledge and understanding of the resource allows significant savings by avoiding time and money associated with the drilling unnecessarily expensive wells. Additional savings appear from better well design (e.g. minimal well diameter at certain depth) or faster and less expensive drilling operation due to rock formation familiarity. Stefansson (2002) estimates that drilling costs associated with the development of a new project in a well-known field are expected to be 37% lower than drilling costs of a similar project located in an "unknown" geothermal field. The area around Dawson Creek has well understood subsurface environment and drilling costs. However, the larger well design and specific drilling concerns for a geothermal development may involve some delays and the need for a well-qualified drilling team. Flow Rate Although we assume 7.36 x 1017 joules/in place for the heat reservoir, the ability to access that heat for electrical and heating needs is dependent on the well flow rate, as this is the only mechanism for moving the heat to surface. This flow rate is a key variable that drives the economics of geothermal power production. The flow rate per well dictates the number of wells necessary to produce the total water necessary to supply the power generation facility. Improvement in flow rate per well allows for less production wells to be drilled, for a given amount of electrical power, and subsequently significantly reduces the overall capital cost of the project. To complete the economic analysis, the flow rate per well was estimated to be 125kg/sec. A flow rate of 120kg/sec is a reasonable estimate, as it corresponds to the industry experience from other HSA geothermal projects globally, with similar geological environments and temperatures. NREL’s (National Research Energy Laboratory) base case model for calculating binary geothermal production (at 1500C) is 2,000 GPM or 126 kg/sec. Landau Geothermal Power plant in Germany is currently operating at 80kg/sec and the Unterhaching geothermal plant has achieved a sustainable flow rate of 135-152 kg/s from the production well. From 4 production wells producing 100 kg/sec, there is a total project flow rate of 400 kg/sec. Well Electrical Production In order to calculate the cost of power production ($/MWeh), with an estimate of well cost in hand, it is necessary to calculate the power generated from the overall flow rate. The analysis is based on a correlation of the thermal efficiency derived from several actual binary plants. The thermal efficiency is defined as the ratio of the net power output to the rate of heat input, i.e., input thermal power (Moran and Shapiro, 2004). Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 48 Regular Council with Page 166 of 305 Committee of the Whole - 18 Item 7.8 Although the calculation of 7.36 x 1017J joules/in place for the heat reservoir is a set value, the ability to access that heat for electrical and heating needs is dependent on the flow rate or heat resource to surface. At a total of 400 kg/sec flow rate (100kg/sec *4 production wells), and an 12% binary turbine efficiency, the reservoir could produce gross power of 13.3 MWe from total heat production of 110 MWth. Further, at this rate of heat production, the reservoir would be sustainable for 31.7 years, assuming no reservoir recharge. It should be noted that of the 110 MWth removed from the reservoir, 13.3 MWth go to power generation, leaving 97 MWth, which are rejected in order to regenerate the binary fluid. If there is a viable heat host nearby, a good rule of thumb is that 1/3 of this low grade heat can be put to productive use, which in this case corresponds to ~32 MWth. The ‘Direct Heat Economics’ section of this report, discusses the economic model for making productive use of this heat. As mentioned earlier, whether from pumped or natural resource, flow rates vary greatly and they significantly affect the cost of producing the water to surface. Since our estimated resource temperature is approximately 1300C, large volumes of water are required to generate power, and as such, it is highly probable that the wells will require some pump technology to enhance natural flow rates and move the necessary hot water to surface. The electrical load necessary for pumping, and power facility operations or ‘parasitic load,’ for most binary turbine geothermal projects is approximately 10-15% of overall power production. Using the earlier estimate of 13.3 MWe of gross electricity (MWe) production, minus a ~15% parasitic load, results in a net power production of 11.3 MWe. With understanding of drilling cost/well, and the above calculation of MWe/Well, we are able to calculate the drilling cost/MWe. Should this project require four production wells, and two shallower injection wells, then the conservative drilling costs are estimated to be: ($5.5 million/production well *4 wells) + (2 injection well * $3.5 million) = $28.0 million for drilling Per well drilling cost to MWe = $28.0 million/ 11.3 MWe net power = ~$2.5 million/MWe In Canada, geothermal development is in its infancy. Drilling to deep into the sedimentary basin adds a significant element of risk to drilling rates, costs and potential completion. However there is greater certainty related to reservoir characteristics, and depth to specific formation tops in the shallow formations, due to the number of surrounding oil and gas wells. As a comparison to current conventional geothermal projects internationally, GEA (Geothermal Energy Association) interviews of geothermal developers revealed that total drilling costs in the US market (confirmation + site development drilling) range from $0.6 million/MW to over $1.2 million/MW with an average drilling costs figure close to $1.0 million/MW. Our average of $2.5 million/MWe is above this range, as the lower cost of drilling in a known sedimentary zone is more than offset by the lower temperature heat reservoir and depth to resource. Power Facilities Power plant design aims to consistently deliver power with high availability while minimizing both short-term construction and long term operation & maintenance costs. It consists of defining the optimal power plant equipment and choosing the best-suited technologies and construction materials Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 49 Regular Council with Page 167 of 305 Committee of the Whole - 18 Item 7.8 to deal with site and resource particularities (specific to resource temperature and flow) (Franco, 2009). While it is necessary to source qualified companies for the facilities development, there is a long history of geothermal development with significant background data to ensure a good fit between electrical facilities and heat resource (Chandrasekharam, 2008). For the temperature expected from the Wabamun formation (~1300C), binary turbine technology would be the expected source of power production. Hot geothermal fluid and a secondary or "binary" fluid with a much lower boiling point than water pass through a heat exchanger. Heat from the geothermal fluid causes the secondary fluid to flash to vapor, which then drives a turbine. Because this is a closed-loop system, virtually nothing is emitted to the atmosphere (Taylor, 2007). Figure 21 - Schematic diagram of Binary Turbine Technology for Power Production (GEO, 2000). The percentage of heat that can be converted to electricity is quantitatively represented by the thermal efficiency, i.e. the fraction of the total heat delivered to the power cycle by the circulating geofluid that is converted to electrical energy. Thermal efficiencies are based on Figure 19 for operating binary plants at resource temperatures under 180°C. Recent discussions with multiple binary turbine manufacturers dictate that overall efficiency of the power facilities has continued to improve in the last 10 years, and based on a plant inlet temperature of 1300C, a 13.3 MWe binary power facility would have an estimated 12% efficiency. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 50 Regular Council with Page 168 of 305 Committee of the Whole - 18 Item 7.8 Figure 22 - Binary Plants: Thermal efficiency with GeoFluid Temperature (Tester, 2006). The planned economic lifetime of geothermal operations is typically 30 years, though they usually operate much longer, with operations at Wairakei, New Zealand and The Geysers, California exceeding 50 years and the first geothermal plant, in Lardello, Italy, has now exceeded 100 years. Recent binary development in the US has estimated levelized generation costs of $72/MWh. New plant generation costs continue to drop for lower temperature resource (less than 180°C) with new estimates at $50- 70/MWh. Recent price experience for smaller MW turbine designs (less than 15MW) suggest that the $1.8 million is underestimated by at least 30%. Also, due to shipping and costs associated with integration of the turbine technology in Northern BC, it is recommended that the average cost of power generation for the binary technology is $2.2-2.5 million/MW. Binary Turbine Power Facility: 13.3MW/plant @ $2.5 million/MWe = ~$33.1 million Transmission, Distribution, and Interconnection Valuable geothermal resources are not always located in areas furnished with interconnections to the public grid. As a result, some projects need to include the cost of building a new transmission line to connect the power plant to the grid. Transmission lines are quite expensive and their cost may be a hurdle to a project's competitiveness. The construction cost of a new transmission line is linked to its length but is also affected by the voltage, topography, slope stability, and site accessibility. The GEA, and interviews with developers, provides cost estimates for new transmission lines at $220,000/km to $280,000/km (Taylor, 2007). The project will be located in the Dawson Creek area and in close proximity to power infrastructure. The proposed binary power plant (~15MW) is small enough and can be customized to integrate into Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 51 Regular Council with Page 169 of 305 Committee of the Whole - 18 Item 7.8 conventional electrical distribution systems, versus having to integrate into larger transmission lines. Overall, the cost of interconnection would be determined with the EPA (Electrical Purchase Agreement), as part of the SOP, to be negotiated with BC Hydro, who is responsible for transmission and distribution within the Dawson Creek area. Further discussions with BC Hydro would allow for greater understanding of the required interconnection costs related to project. Accordingly, we are quoting the relevant capital and operating costs assuming a sale ‘at the plant gate’. Water Piping System The water & steam gathering system is the network of pipes connecting the power plant with all production and injection wells. The cost for these facilities varies widely depending on the distance from the production and injection wells to the power plant, the flowing pressure and the chemistry of the produced fluids. Low and moderate temperature resources (T <180 °C) are usually pumped to enhance well productivity and brine flow. Production pump costs should be included in the cost of the gathering system. The use of pumps significantly enhances the brine flow and thus reduces the number of production wells needed, as well as the overall size of the gathering system. On the other hand, pumped resources have relatively moderate temperatures and, compared to high temperature resources, require a larger brine flow to provide the same amount of energy to the generating system. Carbon steel pipelines are used in the majority of geothermal resources, but for highly corrosive brine, alloy systems such as various duplex stainless, high nickel alloys or lined pipe can be two to over five times the cost of carbon steel. Recent cost estimates provided by geothermal power developers, for both steam and binary projects, however, average $250/kW and, in some cases, have exceeded $400/kW. For binary systems, only hot brine line and the cooler brine injection lines are required; the piping and controls can vary from $100 to $250+/kW. Valves, instrumentation, control and data acquisition must be included in the gathering and injection system, which can be significant. Generally speaking, Entingh & McVeigh (2003) noted that the cost of the steam gathering system corresponds to 5% of total capital cost. Piping & Fluid transport: 13.3MWe @ $0.2million/MWe = $2.7million Project Management & Design & Soft Costs We expect Project Management and Engineering to conservatively be ~5% of total budgeted costs, or ~$3.25 Million. While this is lower than industry experience in other sectors, where management overheads typically range between 9-12% of total project costs, we have a number of mitigating factors with regards to geothermal projects. The drilling costs, which comprise 40% of the proposed project, include their own management overheads. Further, the binary turbine packages are modular in nature and require little customization. As such, when we perform a ‘bottoms up’ budget for the Management and Engineering costs, we see a much lower requirement than that seen in other capital projects. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 52 Regular Council with Page 170 of 305 Committee of the Whole - 18 Item 7.8 Building The binary turbine and associated controls are quite compact. Further, the condenser and associated equipment needs to be exposed to air and is located outside. Accordingly, a small pre-fab structure is more than adequate to supply the necessary protection and storage for personnel and equipment. Our estimate of this, installed and modified to accept a binary power plant and meet requisite building codes for power stations is ~$0.5 million. Other Soft Costs In addition to the building, there are often a whole gamut of costs related to preparing a site for drilling (clearing, grading), constructing footings for a building, fencing, parking, access to water, power interconnect, phone, and sewage systems, et al. Our experience suggests that this is equal to the building cost itself, at ~$0.5 million. Land Costs Geothermal developers tend to lease land rather than buy land. Land costs should thus be considered as an operation and maintenance cost rather than a capital cost. In conventional geothermal energy development there is a clear distinction between surface and subsurface land rights and the costs associated with each. However, under the current energy regulatory environment in British Columbia, there is significant political uncertainty associated with an independent power producer to acquire land (surface or subsurface) for geothermal energy development. Accordingly, any geothermal project that moves ahead in the Northern BC would be taking on some uncertainty about future lease costs. The conventional geothermal tenuring program in BC normally requires that a potential project developer put a property ‘up for bid’ with BC Energy and Mines. The potential lease area is first deliberated by relevant stakeholders (community, first nations, etc.), and if deemed amenable for development then the property is put to a closed bid program. There are other nonconventional avenues for gaining geothermal tenure in BC, including an ‘order in council’ directly from government that are discussed in more detail in the ‘Project Development steps’ section of the report. Operation & Maintenance One of the major advantages to geothermal energy development is that operation and maintenance costs are a small percentage of total overall costs: the heat from the Earth is renewable and the water used in the heat transfer is recycled, and a geothermal energy project requires no fuel. Typical O&M costs depend on the location and size of the facility, the number of plants and the use of remote- control; however, an industry average for binary turbine technology is approximately $30/MWh, and for new units it is ~$20/MWh. Referencing verbal dialogue with operators and power facility manufacturers for facilities in the range of 1200C -1500C, Borealis has chosen to use $22/MWh as a reasonable value for O&M costs and baseload capacity of 95%. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 53 Regular Council with Page 171 of 305 Committee of the Whole - 18 Item 7.8 • At 347 days/year (95% uptime or ‘baseload capacity’), there are 8,320 MWh in a year • A 13.3MWe (gross) facility would produce ~110,00MWh in a year. • At $22/MWh, the annual O&M budget would be: $22/MWh * 110,000 MWh = ~$2.4 million/year Economic Analysis: ‘Waste’ Heat Add-on While the foregoing has focused on the opportunity to generate geothermal power, there is significant opportunity to use the geothermal resource for direct heating applications. As stated in the well electrical production section, “of the 110.0 MWth removed from the reservoir, 13.3 MWe go to power generation, leaving 97 MWth, which are ‘’rejected’ in order to regenerate the binary fluid”. If there is a viable heat host nearby, a good rule of thumb is that 1/3 of this medium to low grade heat can be put to productive use, which in this case corresponds to ~32.3 MWth. The actual figure depends on the temperature at which the heat is delivered to the host, the amount of heat that the host can absorb, and the rejection temperature of the transport cycle for heat delivery. Assuming productive use can be found for ~1/3 of the rejected heat from the binary unit, this corresponds to >2.85 million GJ of heat. To put this into perspective, the 2010 heating requirements for the multiplex were 31,500 GJ and 55,115 GJ for the entire community of Dawson Creek. Together, they consume just less than 3% of the heat rejected by the proposed unit. Multiplex Gj Total Cost $/Gj Carbon tax Total Cost Total Cost per Gj Consumption for NG incl. Carbon Tax 2010 31,500Gj $247,700 $7.86 $176,000 $424,500 $13.48/Gj 2007* 11,460Gj $104,400 $9.10 $64,320** $168,720** $14.72/Gj** Table 6: EnCana Multiplex Heating Requirements & Costs *Only open part of the year in 2007. ** No carbon tax in effect that year totals are only for comparison Entire City Consumption Cost Cost/Gj Carbon Tax (from Total cost/Gj Natural Gas Gj Nat gas) Incl.Carbon Tax 2010 55,113 Gj $438,100 $7.95 $309,000 $13.55/Gj 2007 44,400 Gj $403,874 $9.10 NA NA Table 7: City of Dawson Creek Heating Requirements & Costs The totals for the multiplex use combined tallies in the “cool tool” from: EnCana Centre +Lakota Centre +Pool. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 54 Regular Council with Page 172 of 305 Committee of the Whole - 18 Item 7.8 The combined economic value for cost of natural gas and carbon pricing is $424,000/year for the multiplex and $747,100 for entire city. A cursory economic analysis of the heat opportunity was performed, using the following assumptions, to determine the potential value of the direct heat option to Dawson Creek. Economic Assumptions • 30 year period of analysis • Geothermal wells drilled near multiplex, in town (within 500 meters) • Geothermal heat facilities: 30 year lifespan • Estimated interconnection and facility cost: $0.7 Million • Added Plant Contingency: $0,7 Million • Ongoing plant maintenance: 10% of installed capital cost/year • Gas price as per 2010, fixed for entire 30 years (no inflation) • Geothermal plant availability: 95% • Market is only the multiplex, 31,500 GJ/year The analysis simply offset the commodity cost savings against the installation cost and maintenance of the heat facilities, as an adjunct to an existing power operation. The analysis is quite conservative insofar as it assumes flat commodity pricing far into the future, it assumes that there are no capital or maintenance charges for the existing natural gas fired units (i.e. they are free to maintain and they never wear out), and uses a fairly conservative operating cost for the geothermal facilities. In this case, the analysis returns a Net Present Value (NPV) of $470,000 at an Internal Rate of Return (IRR) of 16.1%. However, it is analytically ‘unfair’ to burden only one option with operating costs. If we were to assume that the capital and maintenance charges were equal to 1/3 of the commodity cost, which is the kind of cost structure we see in other natural gas applications, then the analysis greatly improves, delivering an NPV of $1,209,000 and an IRR of 24.2% Expanding this analysis to the entire town also requires further assumptions. We are not currently in a position to estimate the costs associated with distributing heat to the town and replacing/upgrading all the current natural gas fired heating systems. However, we can run the analysis in reverse, and determine how much additional investment, i.e. what it would cost above and beyond that for adding the Multiplex onto the geothermal heat system, represents the upper limit, given an acceptable rate of return to the Town. Assuming an acceptable return (unlevered, i.e. no debt in the analysis) is ~11% per annum, then, just on the commodity cost, if the rest of the town could be converted to geothermal heat for $1.63 Million or less, there is a viable project. However, if we factor in the capital and maintenance charges associated with the equipment being replaced, then the available pool of investment could grow to $2.63 Million before the project would fail to meet required hurdle rates. Please note that this is a cursory review and the assumptions included in this analysis would require significant exploration and upgrade before any investment decision should be made. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 55 Regular Council with Page 173 of 305 Committee of the Whole - 18 Item 7.8 Economic Analysis: Power Generation (alone) An economic model for geothermal power generation was built for the purpose of analyzing the Dawson Creek opportunity. It is a detailed model that allows estimating the net cash produced by the plant over each year of its economic life. In turn, this permits both a Discounted Cash Flow (DCF) analysis, which arrives at a Net Present Value (NPV) and also an Internal Rate of Return, (IRR) on the assumed investment in the power generation plant. Classic economic theory states, that all other things being equal, an NPV > 0 or an IRR above the ‘hurdle rate’ are investments which should proceed and those which cannot meet these conditions should not. However, it needs to be understood that our analysis is, at this stage, quite preliminary, and the results should be interpreted as directionally indicative as to whether a viable or non-viable project exists in the Dawson Creek area. Economic Analysis: Base Case Key Assumptions 1. Period of Analysis: 30 Years 2. Capital Costs: the value calculated above are tabulated below Exploration and Research: $ 0.7 million Production and Injection Drilling Cost: (6 wells) = $28.0 million Binary Turbine Power Facility: 13.3MWe @ $2.5 million/MWe = $33.1million Piping & Fluid transport: 12.9 MWe @ $0.2 million/MWe = $ 2.7 million Subtotal: $64.5 Million Generic Costs: Project Management: ~5% of above total = $ 3.7 Million Power House/Building = $ 0.5 Million Other Soft Costs = $ 0.5 Million Total Capital Costs: $69.2 Million Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 56 Regular Council with Page 174 of 305 Committee of the Whole - 18 Item 7.8 Figure 23 - Percentage of Capital Costs (Power only project). 3. Time to construct: It is assumed that the project will take three years to build and construct. This assumes that rights acquisition and relevant permitting has been acquired. As these processes take highly variable periods of time to complete, we are not including them in the forecast. 4. Inflation Rate: 1.5%/year (Assumed). The inflation rate was applied to all costs after year 1, notably operating and maintenance costs. Further, it has been used as the benchmark increase, through Cost of Living Factors, for the power price, as per BC Hydro’s Standing Offer Program 5. Power Requirements: The plant is deemed able to sell ‘baseload’ power at its 95% availability. 6. Power Price: The plant is assumed to sell power to BC Hydro under its standing offer program and at the prices stipulated by this program for the Peace River region, with appropriate BC CPI adjustments. 7. O&M Costs: $22/MWh (restated $0.022/kWh) 8. Tax: Cash taxes are paid at the assumed rate of 31% of GAAP Net Income. Depreciation rates for geothermal plants have been set at 50% declining balance, as per recent Federal Government directives on the taxation of green energy power developments. 9. The analysis is unlevered, i.e. it includes no debt. As such, readers should understand that including debt in the analysis could very likely and significantly increase the potential equity returns. However, as each reader has a different ability to attract debt and pays different rates, we leave this further analysis to them. Given these inputs, the Base Case produces an IRR of 9.5% (unlevered), which is below the project hurdle rate of 11%. As such, it indicates that the project is marginal. However, sensitivity analysis shows that there is a low cost case, which does achieve the required hurdle rate. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 57 Regular Council with Page 175 of 305 Committee of the Whole - 18 Item 7.8 Dawson'Creek'Power'Generation'0'Only Input Low)Cost Base)Case High)Cost Capital'Cost'($MM) 62.3 69.2 72.7 Operating'Cost'($/MWh) 18 22 25 Project'IRR'(Unlevered) 11.3 9.5 8.6 Table 8: Power Generation Cost Analysis Given that the analysis doesn’t suggest a clear yes or no, further discussion of the assumptions is required. From a technical perspective, the key assumption driving this result is the flow/well – at 100 kg/sec/production well. This is a conservative value and we consider it unlikely to develop a lower value. However, exploration results could deliver higher values, and a 20% increase in this would not be atypical for formations of this nature. The impact of this on IRR is shown below Dawson'Creek'Power'Generation'0'Only Input Base Better High/Cost Production'Well'Flow'Rate'(kg/sec) 100 110 120 All'other'factors Base'Case Base'Case Base'Case Project'IRR'(Unlevered) 9.5 10.8 11.9 Table 9: Power Generation Cost Analysis (improved flow rate) What this suggests is that a mild increase in well throughput, 12% over forecast, would make the project economic. From an economic perspective, we have assumed conservative values for drilling, which might have potential upside. While the price of the completion is fixed, there is some flexibility in drilling time. Reduction in drill times of only 1 week/well would result in a 10% reduction in drilling costs. So we can see that there may be strong reasons to suppose that the low cost scenario could be realized. The upshot of this discussion is that, in our view, it’s too early to rule in or out a decision on the viability of a geothermal power project in Dawson Creek. Our conservative analysis suggests that it is marginal, but there are significant reservoir and facilities factors that could easily drive the project to economic viability. Risks It is worth recognizing that geothermal energy development does come with a higher level of risk than other renewable energy developments. These are specifically related to the extraction of heat from the Wabamun formation beneath Dawson Creek, collectively understood as the subsurface risk. It should be noted that there is no ‘technology risk’ associated with geothermal power, something often misunderstood, as it represents a commercial technology that has been in use for over a century. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 58 Regular Council with Page 176 of 305 Committee of the Whole - 18 Item 7.8 This subsurface risk can be broken down into two elements: Resource risk and Drilling risk. The Resource risk turns around the idea that what actually lies beneath Dawson Creek does not conform to the geologic models we have developed. The sedimentary basin environment and presence of multiple oil and gas wells in the area help to reduce this risk, however the confirmed temperature values at depth and flow rates are needed to eliminate the resource risk entirely. With this information in hand, better subsurface models will indicate whether, and with a much higher degree of certainty, economic heat extraction is viable. The Drilling risk refers to the likelihood that the reservoir can be accessed via boreholes at the specified cost. As drilling costs are inherently uncertain, we have tried to address this via our sensitivity analysis, where we have ranged the costs around a Base Case of $28.0 Million. In addition to the economic sensitivities, it is important to highlight that all drilling companies are not the same. Specific companies have greater levels of relevant experience, better equipment, and better operational practices and procedures. We believe that by selecting the right company, i.e. not necessarily the cheapest but the most qualified, significant issues related to drilling risk can be mitigated. Further, not all drilling contracts are created equal either. Understanding the contractual options whereby certain elements of drilling risk can be transferred to the contractor is very important in reducing the risk actually borne by the project sponsor. Direct Heat Analysis & Development Costs As the large scale of a geopower project may be unviable for the community of Dawson Creek, it is worth calculating the cost associated with a simplified direct heat project for the EnCana facility and surrounding buildings. As the entire community requires only 55,115 GJ (~15,300 MWthh), a direct heat program could fulfill the necessary heat requirements with significantly less infrastructure and capital cost than the geopower project. Heat Requirement As discussed in the geology section, the Debolt formation is estimated to be one of the best potential reservoirs with the necessary heat and flow capable for a direct heat production. The reservoir temperature, based on a geothermal gradient of 37°C/km in the area, would be ~104°C at the top of the formation. To model the heat resource potential, we conservatively estimated a 900C resource from the Debolt (some heat losses in piping and facilities) to a re-injection temperature of 400C (500C temperature extraction or ΔT) and a flow rate of only 10kg/sec. This flow rate is less than 1/10th of electrical flow rate. This temperature and flow rate would produce >18,000 MWthh /per year and more than fulfill the 15,300 MWthh /per year required for the community’s heating needs. The direct heat project should however be designed to ensure capability for future growth, and to develop the heat project at a flow rate of 20kg/sec would double heat production and not materially affect capital cost. Doubling the heat capacity also guards against low heat load factors and strong seasonal influences in demand, which we would expect for heat in Dawson Creek. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 59 Regular Council with Page 177 of 305 Committee of the Whole - 18 Item 7.8 With one production well into the Debolt formation, the “indicated heat resource” for a direct heat project t is on the order of 8.10 x 1017 Joules of thermal energy in place as classified according to the Canadian Geothermal Reporting Code, relative to 400C. Using only 1 production well at a flow rate of 20kg/sec, the recoverable and converted energy has the potential to be equivalent to an estimated 4.2 MWth (gross) or ~36,800 MWthh for greater than 1,000 years (assuming thermal energy recovery of 20%). Production Drilling The estimated depth of drilling is ~2800m for the Debolt formation and, based on recent wells drilled to similar depths in the local area, drilling should require 15-25 days. The well design for a well capable of a 20kg/sec flow rate is significantly less complicated than that for 120kg/sec flow rate, and the estimate is $3.0 million for a completed 2.8km vertical production geothermal well in the Dawson Creek area. As discussed in the earlier geological section, there is the possibility of completing the injection well into a shallower formation and thus significant cost savings for the injection well. For the completion of an injection well capable of 20kg/sec flow rate, the cost estimate is $2.0 million. Piping and Integration Although the drilling program is the primary cost, the direct heat program requires the necessary piping, pumps and integration into the existing heating system at the local facilities (i.e. Multiplex). Distance from the wellhead, pipe materials, and road and rail crossings were the major cost constraints for fluid movement, thus the proposed heat project was intended to be as close to the facilities as possible (a possible location in Figure 23). The cost analysis included pricing for lined steel and HDPE (high-density polyethylene) piping. The HDPE piping cannot be used for temperatures above 600C, so although it is a cost effective solution it could only be used in the disposal of the wastewater. At 500 m from the facility, the piping cost for steel piping (900C line) is approximately $200,000 and the disposal (HDPE) line is $50,000. Other project costs including engineering, right of way surveying, heat exchangers and other construction costs are estimated $250,000 for a total cost of $500,000. Integrating the heated water into the existing heating system is expected to be straightforward, especially if the Multiplex is using a water heating system with the natural gas program. One viable option is to install a heat exchanger prior to the existing boiler, and a water bypass across the boiler. The water bypass would be used if the production water heats the water within the building enough so the boiler isn’t required. Based on the 900C production water temperature estimated in the direct heat program, this would be the case. The main sets of equipment would be two heat exchangers, one at the production wellhead to remove the heat from the working fluid and one at the EnCana building, and a pump at the wellhead to Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 60 Regular Council with Page 178 of 305 Committee of the Whole - 18 Item 7.8 ensure necessary pressure/fluid movement. There may be a requirement of a return booster pump, but this would be determined based on the working pressure allowed within the EnCana Multiplex system. Figure 24 - Potential location for Direct Heat Drilling Program. Operation & Maintenance As mentioned earlier, one of the major advantages to geothermal energy development is that operation and maintenance costs are a small percentage of total overall costs and a direct heat project requires no fuel. Typical O&M costs for direct heat projects are primarily based on the electrical load associated with pumping and fluid movement and facility maintenance. The electrical requirements for moving 20kg/sec of heated water and pump and facility maintenance are ~$100,000/year. Economic Analysis: Direct Heat (alone) As per the previous analysis, an economic model was developed for the Direct Heat Option, on a stand alone basis, which would allow for computing an NPV and IRR for the project, while also allowing reasonable flexibility to deliver sensitivity analysis. Economic Analysis: Key Base Case Assumptions 1. Period of Analysis: 30 Years 2. Project Availability: 95% uptime. During the remaining period, the town would have to rely on existing heat generation facilities 3. Equivalent Price: Assume a fixed, no inflation, 30 year price at todays value for heat 4. Operating Costs: Town $100,00/year, Multiplex $140,000/year 5. Capital Costs: the value calculated above are tabulated below Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 61 Regular Council with Page 179 of 305 Committee of the Whole - 18 Item 7.8 Production and Injection Drilling: $ 5.0 million Piping & Integration: Multiplex $ 0.7 million Piping & Integration: Multiplex - Contingency $ 0.7 million Piping & Integration: Town $ 0.5 million Piping & Integration: Town - Contingency $ 0.5 million Subtotal: $7.4 Million Generic Costs: Project Management: ~5% of above total = $ 0.3 Million Total Capital Costs: $7.7 Million An initial review economic review suggests that a stand-alone direct heat project of this nature would have an IRR of 3.6%, clearly not viable. Even in the event that all the contingencies are eliminated, the IRR only improves to 4.9%. As such, this project is not viable on a stand-alone basis, as the capital costs associated with the well are too much to be borne by Dawson Creek’s small heat market. It should be noted that the preliminary analysis on a combined heat and power project suggests that the direct heat option is quite viable, when combined with a power project. Well Re-Entry Opportunity Borealis also reviewed the possibility of re-entering the closest deep well near Dawson Creek. GULF S DAWSON 16-04-078-15 was originally drilled to a depth of 3240m and abandoned with limited gas production. The neighboring well, AVENEX ET AL S DAWSON A16-04-078-15 was drilled to 560m back in 1956 and was a possible source of re-injection. Both wells were drilled over 30 years ago and our research shows that it is likely that the cementing of the casing string was completed under previous regulatory environment that left long sections of casing exposed to the formations. Without cementing in place between the casing and the formation, we believe that the wells would have undergone significant corrosion and that re-entry and potential re-casing of the well would offer significant environmental liability and unknown project cost. Another potential obstacle is the cost of moving the heat resource (piping and facility integration) to the local multiplex, which is estimated to be ~2.0 million using a combination of insulated steel and HDPE pipe. We would not advise re-entry of these wells for the purposes of the geothermal development. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 62 Regular Council with Page 180 of 305 Committee of the Whole - 18 Item 7.8 Active Wells Co-production Opportunity With current oilfield well development in close proximity to the EnCana facility, Borealis investigated the viability of using production waste fluids from a local well for the development of a direct heat project. As per discussions with Brian Ahearn (EnCana), the current horizontal drilling program in the Montney is in a dry gas play and results in limited water production. There is neither the water volume nor the temperature viable for a direct heat project. Project Development Steps- Strategy & Timeline CanGEA Project Checklist The Canadian Geothermal Energy Association (CanGEA) has put together a guideline for the development of standard geothermal energy projects worldwide. The list is a helpful tool to understand the necessary steps taken to move a geothermal project from initial exploration to production- a process that can take multiple years with many of the steps occurring concurrently. This project fits the majority of the ‘standard geothermal project’ development template with a developer acting as the exploration/development team and the recipient of the power involving the local Utility (in this case BC Hydro). There are a few key aspects of the project progress checklist that will not apply to the development of Dawson Creek’s geothermal resources. One key factor is that there is a current uncertainty in regulation for geothermal resource development in the British Columbia and securing rights and permits to geothermal development in oilfield basins, this will likely require discussion with government regulators in order to proceed in a timely fashion. The development of a ‘Hot Sedimentary Aquifer’ in a known oilfield basin, rather than a more conventional fractured rock environment, does significantly reduce the exploration requirements. Also, many conventional projects are significantly held up by power purchase agreement negotiations and financial constraints; the current project design is less than 15MW, fits under BC Hydro’s Standard Offer Program It is still helpful to address the steps necessary to move forward with a geothermal project in Dawson Creek. In the end, it is likely that the project would involve a tailored energy solution in a political and social environment that is new to geothermal energy development. (Courtesy of Canadian Geothermal Energy Association Member Projects Database) 1. Rights Secured 2. Permitted except environmental and construction 3. Non-drilling testing completed 4. Equity finance arranged 5. Gradient well program complete 6. Slim hole program completed 7. Production wells started Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 63 Regular Council with Page 181 of 305 Committee of the Whole - 18 Item 7.8 8. Feasibility study 9. Construction debt finance arranged 10. Area interpolated between the wells 11. Production well program completed 12. Injection well program completed 13. Power Purchase Agreement (PPA) signed 14. Engineering, Procurement, and Construction 15. Agreement (EPC) signed 16. Transmission access secured 17. Environmental permit obtained 18. Construction permit obtained 19. Permanent debt financing arranged 20. Production Online 21. Investment Tax Credit (ITC) grant or similar applied for (if project is in the US) 22. Investment Tax Credit (ITC) grant or similar received (if project is in the US) 23. Kyoto Protocol CO2 credits applied for (if project is in a Clean Development Mechanism (CDM) Country Rights Secured & Permitting British Columbia and the Northwest Territories are currently the only jurisdictions in Canada with a regulatory framework that deals with energy from geothermal resources. And as with other subsurface rights, the government “right, title and interest in all geothermal resources in British Columbia are vested in and reserved to the government”. BC Geothermal Resources Act: "geothermal resource" means the natural heat of the earth and all substances that derive an added value from it, including steam, water and water vapour heated by the natural heat of the earth and all substances dissolved in the steam, water or water vapour obtained from a well, but does not include (a) water that has a temperature less than 80oC at the point where it reaches the surface, or (b) hydrocarbons; It is possible to secure a permit and subsequent lease for geothermal energy development in BC; however, to date the process has been marred with delays and political uncertainty. The conventional model for obtaining property for geothermal development is to nominate a property or location for permit through BC Energy and Mines. The location is then vetted for viability as a potential project site. This includes community and first nations dialogue, investigation of surface concerns (parks, waterways, infrastructure) and overlapping permitting from other industries to name of the key obstacles. If the property is deemed viable and approved for potential exploration, the permit for exploration is put up for bid in a closed bid process. For the successful bidder, the exploration permit is an opportunity to explore the property and comes with the responsibility of work requirements. “Each year in accordance with the regulations, a permittee must (a) carry out in respect of the permittee's location geothermal exploration of a prescribed value, or (b) make payments instead of the work.” (BC Geothermal Act, 1996) Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 64 Regular Council with Page 182 of 305 Committee of the Whole - 18 Item 7.8 Upon the completion of a geothermal well on the location, the permittee may submit a development plan for the minister’s approval and issuance of a “lease”. The lease is required for development of future production drilling and power facility construction. In comparison to oil and gas or mining permits, very few geothermal properties have been permitted for exploration. Locations at Meager Creek, Pebble Creek, Knight Inlet and Canoe Reach have been permitted for exploration in the past, but many other properties including Dawson Creek have been nominated for geothermal exploration and have not been put up for permit bid. If a location is successfully nominated for geothermal exploration, vetted and deemed viable for permit, the entire process can take months, if not years, to move toward an actual bid. This is most notable at the Canoe Reach property near Valemount. It is noteworthy that no geothermal property nominated within a pre- existing oil or gas permit area has ever been put up for permit bid. There are other avenues of acquiring geothermal leases in BC, including an ‘Order in Council’ for geothermal permit which would be sourced directly from the Minister. This process is not clearly defined, and would involve significant discussion with and support from the local community, First Nations, and municipal and provincial government and overlapping permit owners (i.e. Oil and gas industry) in order to proceed. With an agreed permit area, a significant work plan offered by the developer, and community support; the ‘OIC’ process may be most efficient methodology to acquire the geothermal exploration permit in the Dawson Creek area. Based on our current understanding of the geological environment and costing for direct heat opportunities it would be advised to locate an exploration area in close and proximity to EnCana Events Centre at the south side of Dawson Creek. Exploration & Planning As discussed through this report, preliminary research accumulated from the multiple of oil and gas wells and other geological exploration in the area around Dawson Creek and research, like this report, helps to determine heat resource potential, project viability and overall project economics. However prior to significant funding and any production well drilling program, it is necessary to continue with resource analysis and detailed project costs. Actual fluid flow environment and definitive temperature confirmation near the top of the PreCambrian still require further analysis. Any exploration project should involve further accumulation and analysis of historic data including log analysis of Wabamun formation, for further calculation and analysis of porosity and permeability. Regional seismic data, water geochemistry, formation tops and cross sections, magnetics and gravity data are all useful tools to help develop a better understanding of the subsurface environment. Thermal modeling would also be advisable to understand the long-term ramifications of specific production and injection well drilling designs. It would be advisable for future exploration research to include a detailed assessment of all drilling and power production costs. The estimated drilling costs are only a rough guideline for overall project economics, so a detailed analysis of all costs associated with drilling is a necessary next step. This analysis should include such items as size and capabilities of drilling rig, site preparation, casing costs, geological and rig supervision, and this should be completed by third party with extensive Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 65 Regular Council with Page 183 of 305 Committee of the Whole - 18 Item 7.8 experience working in the Peace River Area. A similar analysis of costs for power production equipment would involve price quotes for binary turbine technology, electrical interconnection, downhole pump technology and surface pumping to name just a few. Well Re-entry or Slimhole Program Gradient and/or slim hole drilling involves drilling narrower wellbores to assess the geothermal temperature gradient at depth, however due to the abundance of oilfield wells in the area it may be advisable to attempt to acquire access to oilfield wells to complete geothermal gradient testing. Running pressure/temperature tools downhole would establish the change of temperature with depth, and potentially show changes of fluid flow between formations. It is crucial to be able to run temperature tools to the depths of resource temperatures, the Wabamun formation. Accurate temperature gradient data could confirm heat resource at depth and allow the development of geothermal reservoir models. The greater understanding of the geothermal resource potential that a reservoir model would provide would be a key input into any decisions as to whether to progress the opportunity past the exploration stage. Temperature gradient data at 2-3 locations/wells would be extremely helpful for the design of future well program including location of projection and injection wells, drilling program and specific well design. Access to abandoned wells, like GULF S DAWSON 16-04-078-15, would allow for crucial temperature gradient testing, however re-entry of abandoned wells involves significant technical and regulatory challenges. This specific well was originally drilled prior to existing drilling regulations and re- entry would involve dealing with the condition of aged casing, use of cement plugs and environmental liability associated with abandoned wells, just to name a few concerns. Well access to oilfield wells for geothermal exploratory work may involve support from the current hydrocarbon leaseholder, the provincial government regulatory body or both. The costs and potential risks associated with re-entry may actual make well re-entry infeasible, at which point it may be necessary to pursue gradient/slimhole drilling to prove out the heat resource potential. Production Drilling and Resource Model Production drilling is a large component of the project with over 30% of the costs and the majority of time dedicated toward project development. With efficient well design and necessary drilling budget and permitting in place, a production-drilling program could commence within months of completion of the exploration slimhole program. Upon completion of the initial production well, it would be necessary to re-evaluate drilling strategy and well design to ensure a carefully engineered solution for heat recovery. At ~30 days to drill a single well, the entire production and injection drilling program could be completed in less than 1 year, assuming a single rig is used. This would include completing and testing the wells to determine water flow characteristics (temperature, chemistry, flow rates) necessary for Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 66 Regular Council with Page 184 of 305 Committee of the Whole - 18 Item 7.8 subsequent power plant design. The testing would also determine MW generation potential/well and determine the true costs of power development from the geothermal resource. Although well design, gradient wells and final well location of production wells are all crucial to the success of a geothermal energy project, the initial production drilling is considered the “ground truth”. The first full-scale production well informs developers about true geothermal energy resource and power production capability. With standard geothermal projects it is necessary to continue to fund and drill a number of production and injection wells to achieve a project’s overall MW output. With an understanding of actual MW output, developers then work to secure an Electricity Purchase Agreement (EPA) for wholesale electricity sales & revenue. If the proposed power goals for Dawson Creek are <15WMe (net), as we expect it to be, then the anticipated electricity market is the BC Hydro grid, through their Standing Offer Program. This greatly simplifies the process relative to engaging in bilateral EPA process with BC Hydro. Engineering and Power Plant Construction Upon completion of the drilling program and confirmation of heat recovery (in the form of flow tests), the geothermal project would then move to the facility construction stage. An EPC contract (Engineering, Procurement and Construction agreement) determines all the terms and conditions associated with the design and construction of the surface power facilities. This process may be started prior to the completion of the drilling program, but it is necessary to know overall production capabilities (heat and volume from flow tests) and power requirements (facility MW output required to meet Location #4 requirements). The design and construction of a power facility will likely be similar to that of the standard binary geothermal power facility and some binary facilities can be partially constructed off site to improve overall lead time for equipment. Overall, the time from a signed EPC to an actual working binary facility can range from 6 months to over 2 years and depending on availability of equipment and onsite construction access (Taylor, 2007). As mentioned earlier, there will be construction of facilities for the residual heat associated with the electricity production that will be used for other direct heat opportunities (i.e. Multiplex). Due to the smaller size of potential facilities (<15MW), facility construction could initiate prior to the end of production drilling program and would likely take 1 year to 18 months to complete. As mentioned earlier there is a lack of clearly established regulations for geothermal energy development, therefore environmental permits or assessments and construction facility permitting may require discussion with government agencies about procedure and approval. As power production would need to interconnect into existing transmission infrastructure, analysis and construction of electrical infrastructure would be prior to any power sale. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 67 Regular Council with Page 185 of 305 Committee of the Whole - 18 Item 7.8 Permanent debt financing arranged & Production Online Although the method of financing a Dawson Creek geothermal project is not the focus of the report, it is worth noting that standard geothermal project development involves a number of financing steps each with different profiles based on the level of risk associated with the project development. Higher risk is associated with initial project drilling due to the unknowns associated with subsurface environment, while facility construction after resource confirmation is considered lower risk. Once there is confirmation of resource potential and facilities have been constructed it is common to reconfigure the debt financing for the long-term nature of the power production. A geothermal project at Dawson Creek may have a more simplified debt structure program if the long-term project partner becomes involved from the onset of the project (i.e. local government financial support). However, with multiple stage financing, it may be necessary to reconfigure or re-finance the project upon power production. To bring power production online, or “flip the switch”, the project will have moved past the final stage of development and is now an operating electrical power facility. The project then moves into the operation and maintenance stage to ensure the long-term success of the renewable energy project. CO2 credits and Investment Tax Credit (ITC) There is no current recognized market or regulatory framework for CO2 in the BC, and it is therefore difficult to speculate about whether CO2 has any economic value. However it is worth acknowledging the extremely low C02 emissions associated with a geothermal power facility. The development of a geothermal power project can be calculated in terms of offsetting CO2 emissions from competing electrical sources. Currently, the majority of British Columbia power is provided by clean (very low CO2) hydro power, but it should be noted that future supply would likely come from other resources including natural gas, as there are little to no large hydro assets left for development (Assuming Site C proceeds). Research and Innovation Drilling wells to the top of the Precambrian basement in a sedimentary basin for geothermal energy production has yet to be been attempted in British Columbia, and any project like this would have offer significant opportunities for geologic research. There is significant overlap of subsurface research with a geothermal energy project to surrounding oil and gas projects including CO2 sequestration opportunities, water flooding, downhole pump technology, and formation fluid analysis to name a few. Therefore, there may be interest in many existing organizations supporting a potential geothermal energy project including the BC Geological Survey, BC Ministry of Energy, Mines and Natural Gas and Natural Resources Canada. Geoscience BC, an industry-led, not-for-profit, applied geoscience organization, also works in partnership with and communities to fund applied geoscience projects in British Columbia. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 68 Regular Council with Page 186 of 305 Committee of the Whole - 18 Item 7.8 Conclusions After initial investigation, the Dawson Creek area remains a geothermal play of interest and a cost effective energy solution. The Wabamun formation has been identified as being of the highest geothermal potential in the Dawson Creek area. This is a result of its depth, associated proximity to a deep heat source, and the permeable nature of the unit, as well as the known existence of an extensive source of hydrothermal fluids- all of which are key attributes for a high-performing geothermal reservoir. With conventional binary turbine technology and a drilling program into the necessary heat resource, to a depth of ~3.5 km in the Dawson Creek area, the “indicated heat resource” in the area is on the order of 7.36 x 1017 Joules of thermal energy in place. For the expected permeability within sedimentary rock environments in the Dawson Creek area, drilling costs are expected to be $5.5 million for a ~3.5km well. The estimated flow rate is 400 kg/sec (4 production wells at 100 kg/sec), heat reservoir and plant inlet temperature are ~ 1300C. The recoverable and converted energy is equivalent to approximately 140 MWth (assuming 15% thermal recovery, and a 12% conversion factor), the geopower production would be ~13.3 MWe (gross) for 31.7 years. It is likely that the wells will require pump technology to enhance flow rate and move the necessary heated water to surface which results in a net power production of ~11.6 MWe (Net). Accordingly, there should be more than sufficient heat to substantiate commercial extraction from the resource. Using the estimates for all aspects of project development, including initial exploration costs, production drilling, power facilities, and other capital costs, the overall cost of project development for a Dawson Creek stand-alone power project is calculated to be $62.5 million. Including operations and maintenance costs of $22/MWh (mid-range case), the expected internal rate of return [IRR] (unlevered) from selling the produced power to BC Hydro under their standing offer program is 9.5%, and sensitivity analysis on the capital and operating costs suggests the reasonable boundaries are between 8.6% and 11.3%. The upshot of this discussion is that, in our view, it’s too early to rule in or out a decision on the viability of a geothermal power project in Dawson Creek. Our conservative analysis suggests that it is marginal, but there are significant reservoir and facilities factors that could easily drive the project to economic viability. The entire geothermal exploration and drilling program for a 12.3 MWe facility could be completed in less than 3 years. Power facility construction could begin concurrently with completion of the production-drilling program and could be completed and ready for operations within 18 months. From the start of exploration, a facility could come online by mid-late 2015, assuming resource confirmation and reasonable timelines for required permitting et al. A cursory economic analysis of the direct heat opportunity suggested that the use of rejected heat from binary turbine offers a cost-effective direct heat option, Assuming productive use can be found for ~1/3 of the rejected heat from the binary unit, this corresponds to >2.85 million GJ of heat. The 2010 heating requirements for the multiplex were 31,500 GJ and 55,115 GJ for the entire community of Dawson Creek; together, they consume just less than 3% of the heat rejected by the proposed unit. The direct/waste heat analysis returns a Net Present Value (NPV) of $470,000 at an Internal Rate of Return (IRR) of 16.1%. When compared to natural gas applications, the analysis greatly improves, Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 69 Regular Council with Page 187 of 305 Committee of the Whole - 18 Item 7.8 delivering an NPV of $1,209,000 and an IRR of 24.2%. It should be noted that the preliminary analysis on a combined heat and power project suggests that the direct heat option is quite viable, when combined with a power project. An initial review economic review of a stand-alone direct heat project would have an IRR of 3.6%. Even in the event that all the contingencies are eliminated, the IRR only improves to 4.9%. As such, this project is not viable on a stand-alone basis, as the capital costs associated with the well are too much to be borne by Dawson Creek’s small heat market. Re-entry and use of existing oilfield wells is also currently not a viable development option. 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(1978): Geothermal energy from sedimentary formations of western Canada. In - Geothermal Energy, a Novelty Becomes a Resource, Trans.Geothermal Resour. Coun., 2, 331-334 Jessop, A.M., (1990). Thermal Geophysics. Developments in Solid Earth Geophysics, 17, 306p. Jessop, A.M., and T.J. Lewis, (1978): Heat flow and heat generation in the Superior Province of the Canadian Shield. Tectonophys., 50, 55-77, 1978. Kehle, R.O., R.J. Schoppel, and R.K. DeFord, (1970): The AAPG geothermal survey of North America, U.N. Symposium on the Development and Utilization of Geothermal Resources, Pisa 1970, Geothermics Special Issue 2(1), 358-368. Lam, H., Jones, F., and Majorowicz, J. (1985). ”A statistical analysis of bottom-hole temperature data in southern Alberta.” GEOPHYSICS, 50(4), 677–684. doi: 10.1190/1.1441942 Lewis, T.J. (1984). Geothermal energy from Penticton Tertiary Outlier, British Columbia. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 73 Regular Council with Page 191 of 305 Committee of the Whole - 18 Item 7.8 Can.J.Earth Sci., 21, 181-188 Lord, T. M., & Green, A. J. (1986). Soils of the Fort St. John-Dawson Creek area, British Columbia. Ottawa: Research Branch, Agriculture Canada. Macdonald, D. E., & Alberta Research Council. (1987). Geology and resource potential of phosphates in Alberta. Edmonton, Alta: Alberta Geological Survey, Alberta Research Council. Majorowicz, J., and Grasby, S.E., (1986). Geothermics of the Williston Basin in Canada in relation to hydrodynamics and hydrocarbon occurrences. Geophysics (March 1986), 51(3): 767-779. Majorowicz, J. and Grasby, S.E. (2010a) Heat flow, depth-temperature variations and stored thermal energy for enhanced geothermal systems in Canada. Journal of Geophysics and Engineering, 7, 232-241. Majorowicz, J., and Grasby, S.E., (2010b). High Potential Regions for Enhanced Geothermal Systems in Canada. Natural Resources Research, Vol. 19, No. 3, September 2010. DOI: 10.1007/s11053-010-9119-8. Majorowicz, J., Grasby, S.E., and Ko, M., 2009. Geothermal Maps of Canada. Geological Survey of Canada, Open File 6167. Majorowicz, J. A. Jones, F. W. Lam, H. L. Jessop, A. M. (1985), Terrestrial heat flow and geothermal gradients in relation to hydrodynamics in the Alberta basin, Canada, Journal of Geodynamics, Volume 4, Issues 1-4, December 1985, Pages 265-283, ISSN 0264-3707, DOI: 10.1016/0264-3707(85)90064-X. Mareschal, J.C., Jaupart, C., Gariepy, L.Z. and four others. (2000). Heat flow and deep thermal structure near the southeastern edge of the Canadian Shield. Can.J.Earth Sci., 37, 399-414 MINFILE No 103I 114: SHAN SOUTH, LAS MARGARITAS, SAK, NICHOLSON CREEK, PHOENIX, KOKANEE, CAMP, TRIANGLE. BC Ministry of Energy. Online Source, accessed June 4, 2012 from: http://minfile.gov.bc.ca/Summary.aspx?minfilno=103I%20%20114 Moran, M.J., and Shapiro, H.N., (2004). Fundamentals of Engineering Thermodynamics, 5th Edition. John Wiley and Sons Inc., New York, NY. National Climate Data and Information Archive. (2012). Station Results | Canada's National Climate Archive. [online] Available at: http://www.climate.weatheroffice.gc.ca/climate_normals/results_e.html?stnID=441&lang=e&dCode=1 &StationName=DAWSON CREEK&SearchType=Contains&province=ALL&provBut=&month1=0&month2=12 [Accessed: 15 Jun 2012]. National Resources Canada. (2012). Search the Earthquake Database. [online] Available at: http://www.earthquakescanada.nrcan.gc.ca/stndon/NEDB-BNDS/bull-eng.php [Accessed: 13 Jun 2012]. Nelson, J. and Kennedy, R. (2006) Dawson Creek Regional Mapping Project Year 2: New Geological Insights and Exploration Targets (NTS 103I/16S, 10W), West-Central British Columbia. In Geological Fieldwork 2006, Paper 2007-1. BC Ministry of Energy, Mines and Petroleum Resources. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 74 Regular Council with Page 192 of 305 Committee of the Whole - 18 Item 7.8 Nevin Sadlier-Brown Goodbrand (NSBG) Ltd. (1985) Report on Dawson Creek Lake Seismic Reflection Survey, Dawson Creek, British Columbia. Prepared for the Geological Survey of Canada. DSS Contract No. 11SB.23254-5-0232. O'Connell, S.C. (1994). Geological history of the Peace River Arch; in Geological Atlas of the Western Canada Sedimentary Basin, G.D. Mossop and I. Shetsen (comp.), Canadian Society of Petroleum Geologists and Alberta Research Council, chpt. 28, URL Price, R.A. (1994). Cordilleran tectonics and the evolution of the Western Canada Sedimentary Basin; in: Geological Atlas of the Western Canada Sedimentary Basin. G.D. Mossop and I. Shetsen (comps.). Calgary, Canadian Society of Petroleum Geologists and Alberta Research Council, chpt. 2, URL Reimchen, T. H. F., Bouvier, G. C., & Geological Survey of Canada. (1980). Surficial geology, Dawson Creek west of sixth meridian, British Columbia. Ottawa, Ont: The Survey. R.J.W. Turner, J. Nelson, R. Franklin, G. Weary, T. Walker, and C. McRae. (2010). GeoTour guide for Dawson Creek, British Columbia. GEOLOGICAL SURVEY OF CANADA. OPEN FILE 5558 Rowe, J.S. (1959). Forest regions of Canada. Can. Dept. North. Aft. Nat. Resour., For. Br., Bull . 123 pp. Shell Canada Limited (2009). Peace River In Situ Expansion Carmon Creek Project, Volume II, Part B, Section 2: Hydrogeology, Appendix 2A: Geological Formations. Shore, G.A. (1984) Report on E-Scan Electrical Resistivity Survey, Dawson Creek Hot Springs, Dawson Creek, British Columbia. Geological Survey of Canada, Open File 1042. Stefansson, V., (2000) Competitive status of geothermal energy. Proc. World Geothermal Energy, Japan, 2000. “Stratigraphic Column and Production Zones.” Geologic diagram. CanadianOilStocks.ca- Junior Oil Stocks in the Peace River Arch Area. 20 Oct. 2012. Switzer, S.B., Holland, W.G., Christie, D.S., Graf, G.C., Hedinger, A.S., McAuley, R.J., Wierzbicki, R.A., & Packard, J.J. (1994). Devonian Woodbend-Winterburn strata of the Western Canadian Sedimentary Basin; in Geological Atlas of the Western Canadian Sedimentary Basin, G.D. Mossop, and I. Shetsen (comp.), Canadian Society of Petroleum Geologists and Alberta Research Council, chap. 12, URL Tester, J.W., Anderson, B.J., Batchelor, A.S., Blackwell, D.D., DiPippo, R., Drake, E.M., et al., (2006). The Future of Geothermal Energy: Impact of Enhanced Geothermal Systems (EGS) on the United States in the 21st Century. Massachusetts Institute of Technology, Cambridge. Thériault, R.J. and Ross, G.M. (1991). Nd isotopic evidence for crustal recycling in the ca. 2.0 Ga subsurface of Western Canada. Canadian Journal of Earth Sciences, v. 28, p.1140-1147. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 75 Regular Council with Page 193 of 305 Committee of the Whole - 18 Item 7.8 Truesdell, A.H., (1975). Summary of Section III; Geochemical Techniques in Exploration. Second UN Symposium, Dev. Use Geothermal Resources. US DOE (United States Department of Energy). “Generalized diagram of an EGS program.” Diagram. Geothermal Technologies Program: Enhanced Geothermal Systems. 2 May, 2011. Volcano.si.edu Global Volcanism Program | Tseax River Cone | Summary. [online] Available at: http://www.volcano.si.edu/world/volcano.cfm?vnum=1200-10- [Accessed: 15 Jun 2012]. Weides, S., Moeck, I., Huenges, E., & Geothermal Resources Council Annual Meeting 2011, Geothermal 2011. (December 01, 2011). Exploration of geothermal resources in the central Alberta Basin (Canada). Transactions - Geothermal Resources Council,1061-1063. Williams, C.F., Reed, M.J., and Mariner, R.H., (2008): A review of methods applied by the U.S. Geological Survey in the assessment of identified geothermal resources: U.S. Geological Survey Open-File Report 2008-1296, 27 p. [http://pubs.usgs.gov/of/2008/1296/] Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 76 Regular Council with Page 194 of 305 Committee of the Whole - 18 Item 7.8 Appendix A: Geological Formation Analysis for Relevant Units Potential Zones Underlying the Target Formation The following formations describe the formations below the Wabamun (the target formation), beginning with the oldest, deepest and thickest unit and moving vertically through the local stratigraphic column. Precambrian Basement (Precambrian) The Precambrian basement is the oldest, deepest and thickest unit composed of deep-seated igneous rocks and/or high-grade metamorphic assemblages; granitic rocks that form the core of the North American craton (Price, 1994). According to core data, the most abundant rock types are gneiss, granitoids and granulites, metasedimentary rocks, mylonites and amphibolites. The data directly within the Dawson Creek region indicates that the dominant rock types are mylonite, gneiss and, further to the north, diabase/gabbro. Mylonite itself is a major metamorphic rock type that is formed as a result of mechanical metamorphism typically experienced in deep, ductile shear zones and results in the recrystallization of a rock’s constituent materials and the reduction of grain size. From this it can be inferred that faults play a significant role in the structure of the deep basement in this area. PRECAMBRIAN BASEMENT LITHOLOGY Igneous Rocks Metamorphic Rocks Granite to Quartz Diorite Gneiss Diabase, Gabbro Granulite Rhyolite Amphibolite Sedimentary Rocks Metasedimentary (schist, marble, quartzite) Sandstone, Argillite Mylonite Others (BIF, metavolcanic) scale 1:5 000 000 0 100 200 300 kilometres 0 100 200 miles Figure 25 - Precambrian Basement lithology (modified from Glass, 1990). Although only a limited number of the wells found in the project area actually reach the Precambrian basement, mapping and contouring the data have approximated the elevation at which the formation sits. These correlated with the Precambrian formation top elevation map produced by the Alberta Geological Survey that covers the whole of the Western Canadian Sedimentary Basin, shows that if the general southwestward deepening trend is followed then it can be inferred that the Precambrian basement sits at an approximate elevation of -3,150m above mean sea level (a.m.s.l.). Dawson Creek itself sits at an elevation of 665 mASL, which translates to an approximate depth of 3,815 mTVD for the top of the Precambrian below the ground surface. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 77 Regular Council with Page 195 of 305 Committee of the Whole - 18 Item 7.8 Figure 26 - Elevation of Precambrian formation, from deep oilfield well database. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 78 Regular Council with Page 196 of 305 Committee of the Whole - 18 Item 7.8 Precambrian Basement Elevation (m) a.m.s.l. ± Fort St John Peace River 56°0'0"N Dawson Creek Grande Prairie 55°0'0"N 54°0'0"N 121°0'0"W 120°0'0"W 119°0'0"W 118°0'0"W 117°0'0"W Figure 27 - Elevation of Precambrian formation (modified from Glass, 1990). Granite Wash (Middle to Upper Devonian) Above the Precambrian basement sits a unit known as the Granite Wash that laterally varies in age and is composed of siliciclastic material. The material from which it is composed, predominantly granitic and metasedimentary rocks, is believed to have been derived from the erosion of the Peace River Arch- a structure resulting from deformational tectonism that caused uplift of the basement. The unit is also known to interfinger with Middle and Upper Devonian carbonate, shale and evaporite material. (O’Connell, 1994). Using well data in the area, the elevation of the Granite Wash formation top was estimated to be - 3,125 mASL with a corresponding depth of 3,790 mTVD and an estimated thickness of 25 m. Winterburn Group (Upper Devonian) At the outset of the deposition of the Winterburn group strata, the Peace River Arch was an emergent landmass and, with time, the arch diminished in size due to gradual subsidence and the peripheral build up of carbonate reef material. The Winterburn is composed mainly of shallow water and shelf carbonates as well as deeper water ramp to basinal marlstones and shales. Although the data suggests a general thickening trend for the unit from <20m in Saskatchewan to >380m in northeastern BC, locally in the Dawson Creek area the unit appears to thin to ~80m thick. (Switzer et al., 1994). Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 79 Regular Council with Page 197 of 305 Committee of the Whole - 18 Item 7.8 Correlating this data with the well data gives an approximate thickness of 100m for the Winterburn formation in the project area. WINTERBURN ISOPACH Generalized thickness contours for the combined Winterburn intervals; and major oil and gas !elds Contour interval = 20 metres Control well Peace River Arch scale 1:5 000 000 0 100 200 300 kilometres 0 100 200 miles Figure 28 - Winterburn isopach map (modified from Glass, 1990). By correlating the observed elevation of the top of the Winterburn according to well data to the estimated elevation from the map produced by the Alberta Geological Survey (Switzer et al., 1994), in the Dawson Creek area the top of the Winterburn is estimated to lie at approximately -3,025 mASL (~3,690 mTVD). Figure 29 - Elevation of the Winterburn formation, from deep oilfield well database. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 80 Regular Council with Page 198 of 305 Committee of the Whole - 18 Item 7.8 WINTERBURN STRUCTURE Structure contours for the top of Wabamun Contour interval = 200 metres Control well Peace River Arch scale 1:5 000 000 0 100 200 300 kilometres 0 100 200 miles Figure 30 - Elevation of the Winterburn formation (modified from Glass, 1990). Potential Zones Overlying the Target Formation Exshaw Formation (Upper Devonian to Lower Carboniferous) The Exshaw Formation has a relatively minor presence as a thin section that sits directly above the Wabamun and is comprised of two members: the lower and upper. According to the Lexicon of Canadian Stratigraphy: Volume 4 Western Canada, the lower member is generally only ~9m thick and is shale-dominated being comprised of anomalously radioactive, brownish-black sporadically fossiliferous shale and commonly exhibits bentonite and tuft beds (Macdonald, 1987). The upper member gradationally overlies the lower and is comprised of a siltstone/silty limestone that is ~37m thick. (Glass, 1990). As mentioned, the Exshaw sits above the Wabamun with well data in the project area suggesting that it is at -2,845 mASL (3,510 mTVD). There is a lack of wells south of Dawson Creek that reach the Exshaw, a fact due either to its depth or to the possibility that it thins out and does not exist south of the city. The wells to the north indicates that the formation is of variable thickness, but suggest that the Exshaw is likely to be less than 10m thick, if encountered at all. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 81 Regular Council with Page 199 of 305 Committee of the Whole - 18 Item 7.8 Figure 31 - Elevation of the Exshaw formation, from deep oilfield well database. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 82 Regular Council with Page 200 of 305 Committee of the Whole - 18 Item 7.8 Figure 32 - Thickness of the Exshaw formation, from deep oilfield well database. Banff Formation (Upper Devonian to Lower Carboniferous) The Banff formation is typically composed of 3 main members: a lower, middle and upper. The lower member consists of shale and marlstone, grading upward and eastward into the middle member composed of dolomitic limestone, spiculite and bedded chert, and passing into the upper member consisting of interbedded siltstone, shale and sandstone (Shell Canada Limited, 2009 and Glass, 1990). In the Peace River Embayment and northward the formation is observed to thin, with a corresponding decrease in the amount of chert and shale and associated increase in siltstone, limestone and sandstone (Glass, 1990). Well data in the area suggests that the Banff lies at an elevation of -2,640 mASL (3,305 mTVD) with an estimated thickness of ~205 m. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 83 Regular Council with Page 201 of 305 Committee of the Whole - 18 Item 7.8 Figure 33 - Elevation of the Banff formation, from deep oilfield well database. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 84 Regular Council with Page 202 of 305 Committee of the Whole - 18 Item 7.8 Figure 34 - Thickness of the Banff formation, from deep oilfield well database. Pekisko Formation (Mississippian) The Pekisko formation composes the lower part of the Rundle Group and is comprised of a sequence of limestone and shale with the shale becoming increasingly dominant west of Peace River, Alberta (Shell Canada Limited, 2009). It is characterized as having a coarsely crinoidal, massive limestone lower unit and a very fine crystalline to lithographic limestone upper unit with minor amount of coarsely crinoidal limestone (Glass, 1990). Well data in the area suggests that the Pekisko lies at an elevation of -2,525 mASL (3,190 mTVD) with an estimated thickness of ~125 m. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 85 Regular Council with Page 203 of 305 Committee of the Whole - 18 Item 7.8 Figure 35 - Elevation of the Pekisko formation, from deep oilfield well database. Shunda Formation (Mississippian) The Shunda formation is characterized by interbedded limestone and dolomite, argillaceous limestone, silty and argillaceous dolomite, siltstone, sandstone, shale and breccias with anhydrite and red beds having been observed in isolated locations (Glass, 1990). Well data in the area suggests that the Shunda lies at an elevation of -2,450 mASL (3,115 mTVD) with an estimated thickness of ~75 m. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 86 Regular Council with Page 204 of 305 Committee of the Whole - 18 Item 7.8 Figure 36 - Elevation of the Shunda formation, from deep oilfield well database. Elkton Member (Mississippian) The Elkton consists of fine to coarse crystalline dolomite and lesser limestone units. It contains some interbedded silty dolomite units and is cherty near the top of the formation. Much of the formation’s dolomite is known to replace lime mudstones with limited crinoidal (echinoderm) debris. According to CEC North Star Energy, observed porosity of the Elkton/Debolt formations in the Peace River area range up to 24%, and as high as 28% on the formations’ erosional edge. Well data in the area suggests that the Elkton lies at an elevation of -2,400 mASL (3,065 mTVD) with an estimated thickness of ~50 m. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 87 Regular Council with Page 205 of 305 Committee of the Whole - 18 Item 7.8 Figure 37 - Elevation of the Elkton formation, from deep oilfield well database. Debolt Formation (Mississippian) The Debolt formation is known to consist of two distinct members: a limestone lower unit and a dolomitic upper unit (Glass, 1990), and has fracture and vuggy porosity (Shell Canada Ltd, 2009). The lower unit is characterized as being a brown, cherty, massive bioclastic limestone that is partly crinoidal, with the majority of argillaceous rocks sitting near the base of the formation. The upper member is light brown, mainly microcrystalline to finely crystalline dolomite, containing some anhydrite and micritc limestone. (Glass, 1990). Well data in the area suggests that the Debolt lies at an elevation of -2,150 mASL (2,815 mTVD) with an estimated thickness of ~250 m. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 88 Regular Council with Page 206 of 305 Committee of the Whole - 18 Item 7.8 Figure 38 - Elevation of the Debolt formation, from deep oilfield well database. Golata Formation (Mississippian) The composition of the Golata formation is variable, but consists mainly of argillaceous limestone, dark shale and sandstone. The basal section of the unit is comprised generally of fossiliferous limestone and limy shale and locally in the Fort St John area it is sandy; this grade upwards into dark grey to black to greenish waxy shales, containing occasional siltstones. (Glass, 1990). Well data in the area suggests that the Golata lies at an elevation of -2,100 mASL (2,765 mTVD) with an estimated thickness of ~50 m. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 89 Regular Council with Page 207 of 305 Committee of the Whole - 18 Item 7.8 Figure 39 - Elevation of the Golata formation, from deep oilfield well database. Dawson Creek Geothermal Energy Resource Assessment September 2012 Page 90 Regular Council with Page 208 of 305 Committee of the Whole - 18 Item 7.9 REPORT TO COUNCIL DATE: February 6, 2013 REPORT NO.: 13-031 SUBMITTED BY: Kevin Henderson FILE NO.: 4-1-1 Director of Infrastructure & Sustainable Development SUBJECT: Road Construction and Paving Contract PURPOSE To inform Council of the expiration of the current five year road construction and paving contract with DGS Astro Paving, and seek direction for a new contract. SUMMARY/BACKGROUND The City of Dawson Creek had a five year (2008-2012) contract for road construction and paving with DGS Astro Paving (DGS) that expired on December 31, 2012. The City has received a letter from DGS seeking a 5 year extension to the expired contract (see attached). The City’s current purchasing policy would not allow an extension and requires that any capital purchase over $75,000 be solicited by a competitive bidding process and then be approved by Council. Therefore it requires that a tender be prepared and advertised for the City’s road construction and paving capital work. Staff have been made aware of at least one other contractor interested in the City’s road construction and paving work. DGS has suggested a five year contract term in their proposal and staff agree that a multiyear contract would bring efficiency and consistency to the capital works program. Tendering every year for that years capital work presents some issues. Currently the budget process is not finalized until mid-May, if borrowing is required for the capital works then Council must seek approval of the electorate, this approval takes an additional 6 weeks. The result is that tendering may not occur until first part of July at the earliest and work would not commence until sometime in August, this would leave a very condensed window to complete the works. Tendering in late summer would also likely result in higher prices as contractors may have their work schedule full for the year. A multi-year contract would allow for work to commence immediately following the electorate approval process and pricing would have been established at the initial time of tendering. DGS has worked with the City and in the area for 35 years; they have a good track record and are able to complete the work. Their knowledge of the area along with their local resources (gravel pits and asphalt plant) should provide them with a competitive advantage during bidding. Regular Council with Page 209 of 305 Committee of the Whole - 18 Item 7.9 Report re: Road Construction and Paving Contract Page 2 of 2 ALTERNATIVES Council could waive the purchasing policy and grant a five year extension to DGS as per the terms of proposal. Staff is aware of at least one other contractor being interested in bidding on the road construction and paving work for the City. Council could direct staff to prepare a tender and advertise for the road construction and paving work annually. This will delay the start of construction each year and may result in increased pricing due to contractors work schedules being full by late summer. IMPLICATIONS (1) Social N/A (2) Environmental N/A (3) Personnel Staff will prepare tender documents and advertise for the City’s road construction and paving program. (4) Financial DGS has proposed holding prices in 2013 to 2012 rates and 1.5% increases per year in the remaining years plus an escalator for variances in raw materials. A competitive bidding process should result in the same or better pricing for qualified contractors. GUIDING PRINCIPLES Trust and Integrity: We will have a reputation for acting with integrity and will earn the trust of our stakeholders by modeling competence and anchoring behavior on enduring values. STRATEGIC PRIORITIES N/A IMPLEMENTATION/COMMUNICATION Staff will inform DGS of Council’s decision and proceed accordingly. RECOMMENDATION That Report No. 13-031 from the Director of Infrastructure & Sustainable Development re: Road Construction and Paving Contract be received; further, that Council direct staff to prepare tender documents for the City’s road construction and paving for a five (5) year term 2013- 2017 inclusive. Respectfully submitted, APPROVED FOR AGENDA BY CAO ORIGINAL SIGNED BY Kevin Henderson, AscT Director of Infrastructure & Sustainable Development KH Regular Council with Page 210 of 305 Committee of the Whole - 18 Item 7.10 REPORT TO COUNCIL DATE: February 13, 2013 REPORT NO.: 13-043 SUBMITTED BY: Kevin Henderson FILE NO.: DP 13-08 Director of Infrastructure & Sustainable Development SUBJECT: Development Permit Application Western Canadian Properties Group (Harvest View) Ltd. 8600 & 8700 – 17th Street PURPOSE To respectively request that Council give approval in principle for Development Permit No. 13- 08 to allow for the development of Phase 1 of the new Harvest View neighbourhood. SUMMARY/BACKGROUND The applicants are seeking to develop this 4.6 ha (11 acre) block of land in accordance with the Harvest View - Sunset Ridge Sustainable Neighbourhood Plan. It is slated to consist of single family and duplex housing. Site plan illustrating the general concept of Phase 1 Regular Council with Page 211 of 305 Committee of the Whole - 18 Item 7.10 Development Permit No .13-08 (WCPG Phase I) Page 2 of 4 This subdivision is located within the Natural Environment Development Permit Area. As such, the applicants have created a landscape plan by Greenway Landscape Architecture who is registered with the BC Society of Landscape Architects. The Official Community Plan and the Neighbourhood Plan call for a trail to be built in this area, along the tree stand on 17 Street and along proposed Road 1. A survey of the tree stand along 17 Street found that much of it exists in the area dedicated for parcels (tree stand begins ~8 meters into the parcel). As such, much of it will be cleared though additional plantings will compensate for the loss of vegetation. The landscape plan includes provisions for the trail along 17 Street and along Road 1, street trees, and a bioswale for stormwater collection and ice melt along Road 1. Sunset Ridge – Harvest View Neighbourhood Plan illustrating trails (green) and Phase 1 (purple) Phase 1 has area zoned for RS-2 (Residential – Single Duplex Zone) and for RM-2 (Residential - Medium Density Multiple Family Zone). The proposed lots are consistent with these zones. Single family dwellings will have a minimum site area of 300 m2 and duplexes 525 m2. Phase 1 is also affected by the Dawson Creek Subdivision & Development Servicing Bylaw. The City has hired consultants to modernize the Servicing Bylaw which is expected to be completed in the next few months. City staff, the consultants, and the applicant are working together to accommodate this development within the new Servicing Bylaw. If there are any discrepancies between this permit and the Servicing Bylaw, the bylaw shall prevail. The proposed development is consistent with the development permit’s guidelines for natural environment. In accordance with the relevant guidelines, the following conditions are recommended: The property shall be developed in accordance with the attached Schedules; Landscaping and trail shall be completed in accordance with the attached Schedules; A minimum of one tree per parcel shall be planted along the western property line on those lots fronting 17 Street; For any discrepancies between this permit and the Servicing Bylaw, the bylaw shall prevail. Regular Council with Page 212 of 305 Committee of the Whole - 18 Item 7.10 Development Permit No .13-08 (WCPG Phase I) Page 3 of 4 ALTERNATIVES Council may approve the permit as proposed or request changes or request additional information. IMPLICATIONS (1) Social Advances long term plan for trail network to connect to Crescent Park Elementary School. (2) Environmental Professional landscape design uses bioswales and street trees. (3) Personnel City Planner processes application. Engineering Clerk issues notification and registers permit on title. (4) Financial Financial security in the amount of $75,000 is requested to ensure development in accordance with plans. IMPLEMENTATION/COMMUNICATION The applicant will be advised of Council’s decision; notification will be issued to neighbouring properties; if no comments are received, the Development Permit will be issued and registered on title at the BC Land Titles Office. RECOMMENDATION That Report No. 13-043 from the Director of Infrastructure & Sustainable Development re: Development Permit application from Western Canadian Properties Group Ltd. for 8600 & 8700 – 17th Street be received; further, that Development Permit No. 13-08 for the development of Phase 1 of the Sunset Ridge subdivision at 8600 & 8700 – 17th Street be authorized in principle and issued upon successful completion of the required 10 day notification period and receipt of the financial security. Respectfully submitted, APPROVED FOR AGENDA BY CAO ORIGINAL SIGNED BY Kevin Henderson Director of Infrastructure & Sustainable Development /jm Regular Council with Page 213 of 305 Committee of the Whole - 18 Item 7.10 SUBJECT PROPERTY Regular Council with Page 214 of 305 Committee of the Whole - 18 Item 7.10 DEVELOPMENT PERMIT NO. 13-08 1. This Development Permit No. 13-08 is issued to: Western Canadian Properties Group (Harvest View) Ltd. (the "Permittee") and shall apply to the following lands: LEGAL DESCRIPTION: PID: 012-456-225 LEGAL DESCRIPTION: Lot 2, Section 22, Township 78, Range 15, West of the 6th Meridian, Peace River District, Plan 12205. PID: 014-364-107 LEGAL DESCRIPTION: The North West ¼ of Section 22, Township 78, Range 15, West of the 6th Meridian, Peace River District except Plans B5077, B5078, B5891, 12205 and 12689. 2. This Development Permit is issued pursuant to the Local Government Act and subject to compliance with the bylaws of the City of Dawson Creek, except as specifically varied or supplemented by this Permit. 3. The following terms and conditions shall apply to the Lands: 3.1 The property shall be developed in accordance with the attached Schedules; 3.2 The landscaping and trail shall be completed in accordance with Schedules B & C; 3.3 A minimum of one tree per parcel shall be planted along the western property line on those lots fronting 17 Street; 3.4 Roadways shall be constructed in compliance with the applicable Servicing Bylaw. 4. As security for the due and proper completion of the construction, installation, and operation of the works and measures to be carried out to satisfy the objectives of the Development Permit Area as set forth in Section 3 of this Permit (the "Measures"), the Permittee shall deposit and maintain with the City of Dawson Creek financial security in the total amount of $75,000 until all the development and construction to be undertaken on the lands is completed in its entirety within 24 months from the date of issuance of this Permit. Notwithstanding the foregoing, the financial security may be reduced proportionately as phases of the building construction are completed and accepted by the Director of Infrastructure & Sustainable Development. It shall be a condition of the deposit of the security that if the "Measures" or any of them are not completed as hereinbefore provided and within 24 months from the date of issuance of this permit, the City of Dawson Creek may, at its option, enter upon, carry out, and complete the "Measures" in such a manner as to satisfy the development permit area objectives and recover the costs of so doing, including the costs of administration and supervision thereof, from the financial security. Regular Council with Page 215 of 305 Committee of the Whole - 18 Item 7.10 DP 13-08 WCPG Phase 1 Page 2 of 5 5. The aforementioned financial security is required prior to issuance of the Building Permit to secure the construction required by the Development Permit. 6. The Permittee shall obtain from any purchaser of the Permittee's interest in the Lands, or portion thereof an agreement to be bound by the terms of this development permit, and until such time as the purchaser agrees to be so bound, all obligations imposed on the Permittee under this development permit shall remain the sole obligation of the Permittee. 7. This Permit does not constitute subdivision approval or a building permit and does not entitle the Permittee to undertake any work without the necessary approvals or permits. All works must be constructed in accordance with engineering plans and specifications acceptable to the Director of Infrastructure & Sustainable Development; and buildings and structures can only be constructed in accordance with the B.C. Building Code and a building permit issued by the Building Inspector. THE TERMS AND CONDITIONS OF THIS PERMIT ARE HEREBY ACKNOWLEDGED: Permittee: Dwayne Stewart AUTHORIZING RESOLUTION PASSED by Council on the day of , 2013. Mike Bernier – Mayor Brenda Ginter - Corporate Administrator Regular Council with Page 216 of 305 Committee of the Whole - 18 Item 7.10 DP 13-08 WCPG Phase 1 Page 3 of 5 SCHEDULE ‘A’ Regular Council with Page 217 of 305 Committee of the Whole - 18 Item 7.10 DP 13-08 WCPG Phase 1 Page 4 of 5 SCHEDULE B Regular Council with Page 218 of 305 Committee of the Whole - 18 Item 7.10 DP 13-08 WCPG Phase 1 Page 5 of 5 SCHEDULE C Regular Council with Page 219 of 305 Committee of the Whole - 18 Item 7.10 Regular Council with Page 220 of 305 Committee of the Whole - 18 Item 7.10 Regular Council with Page 221 of 305 Committee of the Whole - 18 Item 7.10 Regular Council with Page 222 of 305 Committee of the Whole - 18 Item 7.10 Regular Council with Page 223 of 305 Committee of the Whole - 18 Item 7.10 Regular Council with Page 224 of 305 Committee of the Whole - 18 Item 7.11 REPORT TO COUNCIL DATE: February 12, 2013 REPORT NO.: 13-035 SUBMITTED BY: Gordon (Shorty) Smith FILE NO.: RFP 2012-31 Fire Chief SUBJECT: RFP 2012-31 – Pumper Truck PURPOSE: To review and make recommendations regarding RFP 2012-31 - Pumper Truck. SUMMARY/BACKGROUND In 2012 Council passed the budget which included the purchase of a new pumper truck for the City. The dollar amount when the budget was drafted was $500,000. A committee of seven fire fighters was created to specify the truck. An RFP was drafted in 2012 and in early 2013 the RFP closed with four vendors sending in proposals to build a truck for the City of Dawson Creek. The four proposals were: Hub Fire Engines $498,663 Safetec $497,100 Wholesale Fire & Rescue $541,000 Rocky Mountain Phoenix (Rosenbauer) $460,121 The committee then met in early February and analyzed each proposal for adherence to the specs in the RFP. Although most specifications were met or exceeded, some issues did need attention. The RFP required the truck to be no wider than 118” to allow the truck to back safely into the fire station. The proposal from Rocky Mountain Phoenix (Rosenbauer) quoted their truck at 125” wide and was therefore disqualified from the bid process as it did not meet specifications. The proposal from Wholesale Fire & Rescue came in over the allotted budget of $500,000 and was also disqualified from the process. The two remaining proponents - Safetec and Hub Fire Engines were then compared as the RFP allows for factors other than price to be used in the evaluation process. Hub Fire Engines is one of three truck manufacturers in Canada, located in Abbotsford BC. Hub could build the truck on a Sparton chassis very similar to the current truck used by the Regular Council with Page 225 of 305 Committee of the Whole - 18 Item 7.11 Report re: RFP 2012-31 – Pumper Truck Page 2 of 2 Dawson Creek Fire Department, and could also closely match the pump panel on our existing truck. This would reduce the training curve for our fire fighters and allow for one style of pump panel for all fire fighters. Although Safetec’s proposal was slightly lower ($1,563), the Hub proposal provided significantly more value than the small difference in price. The Evaluation Committee recommends to Council that the Hub Fire Engines proposal provides the best value for the City of Dawson Creek. ALTERNATIVES Council could decide to not purchase a pumper truck. IMPLICATIONS (1) Social N/A (2) Environmental N/A (3) Personnel N/A (4) Financial $500,000 from the 2012 budget and an additional $80,000 in 2013 to cover taxes, travel expenses, and additional changes that may be required for a total project budget of $580,000. GUIDING PRINCIPLES We will optimize opportunities for healthy living by developing an environment free from undue risk. STRATEGIC PRIORITIES This was a 2012 strategic priority for the Fire Department. IMPLEMENTATION/COMMUNICATION Two proposals met all the specifications contained in the RFP, Safetec and Hub Fire Engines. If approved, staff will order the recommended fleet vehicle from the listed dealer and advise the other bidders of Council’s decision. RECOMMENDATION That Report No. 13-035 from the Fire Chief re: RFP 2012-31 – Pumper Truck be received; further, that staff be authorized to purchase a pumper truck from Hub Fire Engines in Abbotsford BC at a cost of $498,663 plus taxes and further, that the project budget be set at $580,000. Respectfully submitted, APPROVED FOR AGENDA BY CAO ORIGINAL SIGNED BY Gordon (Shorty) Smith B.F.S., C.F.O. Fire Chief Regular Council with Page 226 of 305 Committee of the Whole - 18 Item 7.12 REPORT TO COUNCIL DATE: February 8, 2013 REPORT NO.: 13-036 SUBMITTED BY: Janet Loiselle FILE NO.: 2012-33 Deputy Chief Financial Officer SUBJECT: Corporate Risk Review – Final Report PURPOSE To request that Council receive and approve the final Risk Management report, framework and policy prepared by Sigma Risk Management Inc. SUMMARY/BACKGROUND At the February 7, 2011 Council meeting, Council received a management letter from the City’s auditors recommending the City develop a formal process for identifying, assessing, and mitigating business risk. In order to meet this audit requirement, Council approved a Terms of Reference for a Risk Management Plan and Policy at its October 22, 2012 Council meeting. The ToR outlined the scope of work to be completed by an independent risk management consultant. The Request for Proposal No. 2012-33 was awarded to Sigma Risk Management Inc., at a cost of $35,000. Phase I of the review was completed on December 13 & 14, 2012 and included the following: Introduction workshop for staff A Risk Tolerance Workshop (Directors & Deputies) Risk Identification Interviews with all departments Wrap up meeting with the CFO and Deputy CFO Phase II of the review was completed on January 10, 2013. A workshop with staff examined various risk events along with the likelihood and potential impact of each significant event to the corporation. Phase III of the review was completed by January 31, 2013. This included allocation of responsibility for risk management to various staff, development of a management and reporting framework for ongoing risk management and a draft risk management policy. The final report and recommended policy is attached for Council’s consideration. Regular Council with Page 227 of 305 Committee of the Whole - 18 Item 7.12 Report re: Corporate Risk Review – Final Report Page 2 of 2 ALTERNATIVES 1. Council could approve the attached policy as presented. 2. Council may choose to approve an amended version of the policy. 3. Council may refer the policy back to staff for further review. IMPLICATIONS (1) Social The Risk Management Framework and Policy will provide structured controls for City staff to use in managing risk related to City operations. (2) Environmental The Risk Management Framework and Policy will provide managers with a framework that focuses efforts to environmental areas that have the greatest risks. (3) Personnel Responsibility for Risk Management will be assigned in accordance with the Framework and Policy as presented. (4) Financial The project was completed as per the approved budget of $35,000. Ongoing management will be carried out within existing budget allocations. GUIDING PRINCIPLES We will have a reputation for acting with integrity and will earn the trust of our stakeholders by pledging to align our actions with the guiding principle that support our vision. STRATEGIC PRIORITIES Completing the Risk Management Plan and Policy is included in the Finance Department’s 2013 Strategic Priorities Chart. IMPLEMENTATION/COMMUNICATION Staff will proceed as directed by Council. Should the policy be approved, it will be posted on the City’s website for a 30 day review period. If no responses are received, it will be incorporated in the City’s Policy Manual. Should there be any responses received during the review period, they will be presented to Council for consideration. If Council approves the policy, staff will carry out the recommendations as outlined, including an annual review of the new policy. RECOMMENDATION That Report No. 13-036 from the Deputy Chief Financial Officer re: Corporate Risk Review Report and Policy be received; further that the Risk Management Policy be approved as presented. Respectfully submitted, APPROVED FOR AGENDA BY CAO ORIGINAL SIGNED BY Janet Loiselle Deputy Chief Financial Officer Regular Council with Page 228 of 305 Committee of the Whole - 18 Item 7.12 THE CITY OF DAWSON CREEK DEVELOPMENT OF CORPORATE RISK MANAGEMENT PROGRAM Final Report Sigma Risk Management Inc. February 8, 2013 Regular Council with Page 229 of 305 Committee of the Whole - 18 Item 7.12 THE CITY OF DAWSON CREEK Corporate Risk Management Program: Final Report TABLE OF CONTENTS PAGE 1.0 GENERAL 1 1.1 Background 1 1.2 Participants 2 1.3 Information 2 1.4 Acknowledgments 3 1.5 Structure of This Report 3 2.0 INTERNAL ENVIRONMENT 4 2.1 City Risk Profile 4 2.2 Loss Events 4 2.3 Organization 5 2.4 Risk Categories 6 2.5 Current Risk Management Practices 6 2.6 Risk Tolerance and Appetite 7 3.0 OBJECTIVE SETTING 10 3.1 Objectives 10 4.0 EVENT IDENTIFICATION 11 4.1 Process 11 4.2 Results 11 5.0 RISK ASSESSMENT 12 5.1 Process 12 5.2 Results 13 6.0 RISK RESPONSE 14 6.1 Process 14 6.2 Results 14 6.3 Risk Response 17 7.0 CONTROL ACTIVITIES 18 7.1 Process 18 7.2 Flood (OP1/OP2) 18 7.3 Inadequate Water Supply (OP15) 19 7.4 Loss of Fair Share Funding (P1) 20 7.5 Provincial Moratorium on Hydraulic Fracturing (P3) 21 7.6 Failure of Succession Plan (OR1) 21 Regular Council with Page 230 of 305 Committee of the Whole - 18 Item 7.12 TABLE OF CONTENTS (Page 2) 7.7 Failure to Make a Cost-Effective Decision with Respect to 22 Water Supply Risk 7.8 Amber Risk: Cost Overrun on Capital Project 23 7.9 Amber Risk: Loss of Records at City Hall 24 7.10 Amber Risk: Contamination at Decommissioned 115 Ave. 24 Landfill Site 7.11 Summary 25 8.0 INFORMATION & COMMUNICATION 25 9.0 MONITORING 26 LIST OF APPENDICES A. DRAFT RISK MANAGEMENT POLICY B. 2013 CITY OF DAWSON CREEK RISK REGISTER Regular Council with Page 231 of 305 Committee of the Whole - 18 Item 7.12 - 1 - 1.0 GENERAL This report will summarize the work and results of the City of Dawson Creek’s Risk Management Development Project. In this report, the Corporation of the City of Dawson Creek will be referred to as “the City”. 1.1 Background The City of Dawson Creek (the City) had as its objectives the development of a comprehensive Corporate Risk Management Plan and Policy with the following scope (excerpted from the City’s Terms of Reference): 1. Complete a comprehensive risk identification as a baseline. 2. Assess current risk tolerance within the organization. 3. Complete a risk analysis to examine the severity and likelihood of risk, and the interconnectedness of risks, resulting in a prioritization of risks, in order of highest to lowest exposure and potential consequence, to be addressed during strategic planning. 4. Preparation of a risk management plan and system framework. 5. Prepare a risk management policy. 6. Present findings to Council. As a guideline to accomplishing this, the City staff adopted the COSO1 Enterprise Risk Management Integrated Framework. The COSO ERM Framework is usually displayed graphically through the so-called “COSO Cube” (shown at right). The front facing side of the cube shows the eight steps in COSO ERM development, viz: Internal Environment Objective Setting Event Identification Risk Assessment ______ 1. COSO’s sponsoring organizations are the American Accounting Association, the American Institute of Certified Public Accountants, Financial Executives International, Institute of Management Accountants and the Institute of Internal Auditors. Regular Council with Page 232 of 305 Committee of the Whole - 18 Item 7.12 - 2 - Risk Response Control Activities Information & Communication Monitoring. The Corporate Risk Management Program for the City was built in three phases: Phase 1: Planning, Organization and Risk Identification Phase 2: Risk Assessment and Risk Response Phase 3: Control Activities, Information & Communication and Monitoring. 1.2 Participants Participants in the above activity were as follows: TABLE 1.1 PARTICIPANTS Staff Member Title Michelle Atkinson Accounts Receivable Clerk Jim Chute Chief Administrative Officer Shawn Dahlen Deputy Director, Infrastructure & Sustainable Development Ian Darling Airport Manager Bob Fulton Deputy Fire Chief Brenda Ginter Director, Corporate Administration Kevin Henderson Director, Infrastructure & Sustainable Development Tyra Henderson Deputy Director, Corporate Administration John Kalinczuk Manager, Water Resource Janet Loiselle Deputy Chief Financial Officer Richard Mathieson Equipment Operator II Dillon McNeely Public Works Foreman Chante Patterson-Elden Manager, Recreation Facilities Darcy Perrin Manager, Parks Duncan Redfearn Deputy Director, Community Services Barry Reynard Director, Community Services Gordon Smith Fire Chief Scott West Detachment Superintendent, RCMP Shelly Woolf Chief Financial Officer 1.3 Information Information used in the development included the following: Regular Council with Page 233 of 305 Committee of the Whole - 18 Item 7.12 - 3 - TABLE 1.2 CITY INFORMATION REVIEWED 1. Annual Financial Statements for year ended December 31, 2011 2. Terms of Reference - Risk Management Plan and Policy; Shelly Woolf 3. 2012 Liability Protection Agreement 4. Terms of Reference - City’s Use of Fair Share Funding; Shelly Woolf 5. Map of Dawson Creek 6. Insurance Claims History 7. Emergency Response Plan: Risk Matrix; Protective Services; undated 8. Memo Re: Explosion at Kin Arena; December 15, 2002; Janet Loiselle 9. Memo Re: Large Infrastructure Projects; December 17, 2012; Kevin Henderson 10. Copies of the City’s Insurance Policies 11. Staff and Responsibility Matrix 12. Strategic Priority Chart 2012 13. Strategic Priority Chart 2013 14. Water Strategy; 2009 15. Water Supply Equipment and Operation Detail 16. Risk Management: General Statement of Purpose; 2001 17. Disaster Recovery (IT) Plan 18. Statistics on Job Postings and Turnover; 2012 19. Statement of Insurance Values; 2012 1.4 Acknowledgments The consultant wishes to acknowledge the excellent cooperation and participation of the City staff, and in particular to Jim Chute and Shelly Woolf for their solid direction and support of the exercise and to Janet Loiselle, who gracefully and effectively organized the logistics and scheduling of the two workshops and various department meetings and discussions. 1.5 Structure of This Report The remainder of this report is structured around the adopted COSO risk management framework and processes, viz: Section 2: Section 3: Section 4: Section 5: Section 6: Section 7: Section 8: Section 9: Regular Council with Page 234 of 305 Committee of the Whole - 18 Item 7.12 - 4 - 2.0 INTERNAL ENVIRONMENT 2.1 City Risk Profile The City of Dawson Creek provides all of the municipal infrastructure and services expected by the citizens of a thriving, modern city of 11,000: roads; bridges; sewers; water; waste (outsourced); police (outsourced) and fire services; bylaw, permit and development regulation; parks and recreational facilities; social, sport, cultural, library and community facilities and services. The risks associated with the construction, maintenance and operation of this infrastructure and delivery of the services are common to nearly all municipalities: operational, regulatory, environmental and public safety. Dawson Creek’s risk profile is amplified somewhat in the areas of flood, water supply, human resource competition and recent economic growth pressures. To deliver the infrastructure and services requires a relatively large corporation: a $50 million operating budget for core infrastructure and services and a full and part time staff of nearly 200. Running an organization of this size and diversity of services presents organizational and political risks and, perhaps to a lesser extent financial and economic risks. 2.2 Loss Events From workshop discussion, a partial list of adverse events affecting the City over the past twenty years was developed, and is summarized in Table 2.1. Regular Council with Page 235 of 305 Committee of the Whole - 18 Item 7.12 - 5 - TABLE 2.1 REPORTED HISTORICAL LOSS EVENTS (1990-2012) Minimal: < $100,000 Year Event Estimated Loss to City 1990 Flood (incl. Sanitary Sewer Backup) undetermined 1992 Water Shortage minimal 1996 Arena Roof Collapse $4 million (insured) 2000 PNG Gas Plant Outage (48 Hours) minimal 2001 Flood minimal 2002 Water Shortage minimal 2003 Attempted Fraud $100,000 (recovered) 2005 Kin Arena Natural Gas Explosion $100,000 (est.) 2007 Heavy Rainfall (Flash Flood) minimal 2008 Cost Overrun on Multiplex (Net of Agreed Scope Change) $10 million (est.) 2009 Snow/Windstorm minimal 2010 Stubble Field Fire minimal 2011 Flood (Lagoon Berm Damage) $1.1 million 2012 Cost Overrun on Calvin Kruk $2.5 million (est.) This is by no means a complete or even accurate list but is included to show that an adverse event of some sort or the other occurs almost every year. Note that over the twenty-three year period, an average of about .6 loss events per year occurred. 2.3 Organization The COSO ERM Framework requires that roles and responsibilities for risk management be established. As we understand it, the City’s risk management function is organized as follows: Regular Council with Page 236 of 305 Committee of the Whole - 18 Item 7.12 - 6 - FIGURE 2.1 RISK MANAGEMENT ORGANIZATION City External Council Audit Chief Administrative Officer Key Risk Finance Owners A draft Risk Management Policy (including procedures and roles) was developed and is set forth in Appendix A. 2.4 Risk Categories The Risk Categories selected for use in the Event Identification were as follows: 1. Business Risk 2. Political Risk 3. Organizational Risk 4. Compliance Risk 5. Operational Risk. Note that Reputational Risk was not included as a category, inasmuch as loss of reputation follows an original event in one of the above risk categories, i.e. a “knock on” effect or consequence of the original event. That said, these reputational risk effects were considered when the impact of the original loss event is considered. 2.5 Current Risk Management Practices Table 2.2 sets forth a partial inventory of risk management practices at the City as assembled from discussion. Regular Council with Page 237 of 305 Committee of the Whole - 18 Item 7.12 - 7 - TABLE 2.2 CITY OF DAWSON CREEK RISK MANAGEMENT INVENTORY Risk Category Risk Management Practice All Categories Reporting Requirements All Categories Legal Advice All Categories Public Communication and Education Programs Business Credit Risk Assessments Business/Operational/Market Contract Review and Approval Procedures Operational Public Safety Operational Financial Authorities Operational Maintenance and Inspection Policies and Procedures Operational Operating Procedures Operational IT Security Operational Physical Security Operational Emergency Response Plans Operational Internal Controls (Accounting, Treasury, Procurement) Operational Disaster Relief from Province Operational Vehicle Maintenance and Inspection Operational Auxiliary Power Systems Operational Hazardous Materials Handling and Transportation Procedures Operational Insurance Operational/Market Project Management and Project Risk Controls Operational/Market Sustainable Asset Management Organizational Workers’ Compensation Claims Management Organizational HR Quality Management Organizational Clear Organizational Structure, Roles and Responsibilities Organizational/Operational Training Organizational/Operational Employee Safety 2.6 Risk Tolerance and Appetite Whilst the City’s risk appetite has been expressed in qualitative terms, COSO suggests that the City’s risk appetite be expressed for application to the risk matrix. Regular Council with Page 238 of 305 Committee of the Whole - 18 Item 7.12 - 8 - FIGURE 2.2 COSO RISK APPETITE CURVE During Phase 1, a risk tolerance workshop was conducted with the Directors and Deputy Directors and a separate discussion on the issue was held with the Chief Administrative Officer. Answers to hypothetical decision choices involving risk and uncertainty were used to derive the City’s corporate risk tolerance. For additional perspective, the risk tolerances of other municipalities were adjusted for the City’s size and then used as benchmarks. Based upon the above, a risk tolerance of $3 million was selected for the City, with a $1.5 million value retained as an amber indicator. Figure 2.3 sets forth (on a logarithmic impact scale) the risk appetite curve as derived for the City. Regular Council with Page 239 of 305 Committee of the Whole - 18 Item 7.12 - 9 - FIGURE 2.3 CITY’S RISK APPETITE CURVE (τ = risk tolerance) $100 Tau = $1.5 million Tau = $3 million $10 $1 SizeLoss of ($millions) amber zone $0 0% 5% 10% 15% 20% 25% 30% 35% 40% Event Likelihood (Probability Over Next Three Years) This is the risk appetite curve used to apply to the City’s risk matrix and thus identify risk events that are outside of the City’s risk appetite. Note that the risk appetite curve uses three year likelihoods (i.e. the likelihood that an event will occur in the next three years). Three years was used in the Phase 2 risk assessment as a planning period for risk management. Regular Council with Page 240 of 305 Committee of the Whole - 18 Item 7.12 - 10 - 3.0 OBJECTIVE SETTING 3.1 Objectives The COSO Enterprise Risk Management Integrated Framework standard requires a set of strategic objectives, supported by divisional and business unit subobjectives. Risk to achievement to these objectives (i.e. adverse deviation, either financial or operational) is measured. Setting the strategic objectives of the enterprise is the job of City Council, whilst operational and financial objectives are established by the City’s management. The City’s 2013 strategic priorities include water security, a transportation plan and an analysis and effective advocacy of the Fair Share Funding Agreement. Operational objectives include a wide array of financial, asset management, planning, public safety and construction objectives. The City’s financial objectives over the next three years are contained in its Financial Plan Bylaw No. 4136 (Schedule A), briefly summarized as follows. TABLE 3.1 FINANCIAL OBJECTIVES (2012) Item Current (2012; $ Millions) 2014 ($ Millions) Revenues $56.6 $53.9 Operating Expenditures $32.9 $34.6 Capital Expenditures $22.7 $7.9 Taxes $13.0 $14.4 Surplus $10.7 $18.7 Regular Council with Page 241 of 305 Committee of the Whole - 18 Item 7.12 - 11 - 4.0 EVENT IDENTIFICATION 4.1 Process The event identification process included an instruction to Participants during the Introductory Workshop to consider all foreseeable events or developments (sudden or gradual) that, if they occurred, would have an adverse impact (big or small) on the Participants’ business unit or on the City as a corporation. We then had meetings with the Director, Deputy Director and Managers of each business unit to collect their identified events, discuss past loss events and discuss risk management issues within the unit. 4.2 Results We then compiled the loss events and risk management results, previously presented in Tables 2.1 and 2.2 respectively. The results of the event identification collection is summarized in Table 4.1. TABLE 4.1 RISK REGISTER EVENTS Risk Category Number of Events Business 7 Political 4 Organizational 9 Compliance 9 Operational 42 TOTAL: 71 Set forth in Appendix B is the City’s Risk Register. Regular Council with Page 242 of 305 Committee of the Whole - 18 Item 7.12 - 12 - 5.0 RISK ASSESSMENT 5.1 Process The Risk Register’s operational and compliance risk events were discussed with business units. Using these discussions, historical failure rates, the scope of the City’s insurance coverage, the City’s loss experience and considered judgment, estimates of the likelihood, impact range and insurability of most of these events were made and agreed with the business units. The remaining unassessed risks (see Table 5.1 below) were assessed by the Risk Assessment Workshop group using facilitated, anonymous estimates from each participant of the likelihood and impact for each of the events. TABLE 5.1 RISK ASSESSED IN THE RISK ASSESSMENT WORKSHOP Risk Category Event Code Event Business B3 Loss of CMA Service B5 Liability to Developer Over Development Permits B6 Cost Overrun on Capital Project B7 Default of Developer Political P1 Loss of Fair Share Funding P2 Alleged or Actual Conflict of Interest by City Councillor (City Indemnity) P3 Provincial Moratorium on Hydraulic Fracturing P4 Failure to Make an Cost-Effective Decision with Respect to Water Supply Risk Organizational OR1 Failure of Succession Plan in Replacing Key People (retirement or otherwise) OR2 Liability for Employee Abuse OR3 Pandemic OR4 Failure to Recruit/Train/Retain Airport Personnel OR5 Failure to Recruit/Train/Retain Qualified Power Engineers for Arenas OR6 Strike OR7 Failure to Recruit/Train/Retain Qualified Water Treatment Operators OR8 Failure to Recruit/Train/Retain Qualified Building Inspectors OR9 Loss of One or More Firefighters Compliance C2 Contaminated Potable Water C5 Failure to Receive Grant Monies Due to Inadequate Documentation C9 Contamination at the Decommissioned 115 Avenue Landfill Site Regular Council with Page 243 of 305 Committee of the Whole - 18 Item 7.12 - 13 - TABLE 5.1 RISK ASSESSED IN THE RISK ASSESSMENT WORKSHOP (Continued) Risk Category Event Code Event Operational OP1 Flood OP2 Flood (Loss of 8th Street Culvert/Other Culvert(s)/Bridge(s)) OP6 Fraud OP10 Complex Murder Case Requiring Prolonged Investigation OP12 Outage of PNG Gas Supply OP13 Major Electrical Power Outage OP15 Inadequate Water Supply OP16 Severe Storm (Hail, Ice, Wind, Tornado) OP40 Liability to Third Parties from Capital Projects or Zoning 5.2 Results The results (likelihoods and impacts) of the above process were recorded on the Phase 2 Risk Register, as set forth in Appendix B. It should be noted that if low impact events (events < $50,000) are ignored, the expected number of events2 from the Risk Register over the next three years is about 1.75, i.e. roughly .6 events per year. This expectation corresponds nicely with the City’s past adverse event history of roughly .6 events per year (1990 - 2012), as observed earlier in Section 2.2. ______ 2. the expected number of events is the sum of the likelihoods of all Risk Register events, except those with impacts of less than $50,000. Regular Council with Page 244 of 305 Committee of the Whole - 18 Item 7.12 - 14 - 6.0 RISK RESPONSE 6.1 Process Each of the Risk Register events’ likelihood and impact were plotted on a Risk Matrix, along with the City’s Risk Appetite Curve. Events at or above the City’s Risk Appetite Curve (as well as at or above the “Amber” Curve) were identified as Key Risk candidates and subsequently discussed with the applicable business unit and the Chief Administrative Officer. 6.2 Results Figure 6.1 sets forth the City’s Risk Matrix. Regular Council with Page 245 of 305 Committee of the Whole - 18 Item 7.12 - 15 - FIGURE 6.1 CITY OF DAWSON CREEK RISK MATRIX (2013) $100.00 Tau = $1.5 million P1 P4 Tau = $3 million Risk Register Events Error Bound (Tau = $3 mm, Ex = 50%, Ey = 50%) OP2 P3 $10.00 OP15 C9 OP1 C1 OR1 $1.00 B6 P5 amber zone SizeLoss of ($millions) $0.10 $0.01 0% 10% 20% 30% 40% 50% 60% Event Likelihood (Probability Over Next Three Years) Event Code Event B6 Cost Overrun on Capital Project P1 Loss of Fair Share Funding P3 Provincial Moratorium on Hydraulic Fracturing P4 Failure to Make a Cost-Effective Decision with Respect to Water Supply Risk P5 Mayor Elected MLA C1 Loss of Records (permits, inspections, property details) C9 Contamination at the Decommissioned 115 Avenue Landfill Site OR1 Failure of Succession Plan OP1 Flood (25 year) OP2 Flood (250 year) OP15 Inadequate Water Supply From examination of the Risk Matrix, the following list of Key Risk Candidates emerged. Regular Council with Page 246 of 305 Committee of the Whole - 18 Item 7.12 - 16 - TABLE 6.1 KEY RISK CANDIDATES (OUTSIDE RISK APPETITE) Impact (Median; Risk Event Net of Insurance Category Code Event Likelihood or Recovery) Political P1 Loss of Fair Share Funding 2% $45 million P3 Provincial Moratorium on Hydraulic Fracturing 10% $10 million P4 Failure to Make a Cost-Effective Decision with Respect 11% $40 million to Water Supply Risk Organizational OR1 Failure of Succession Plan 50% $1.5 million Operational OP1 Flood (25 year) (see Note 1) 10% $2.5 million OP2 Flood (250 year) (see Note 1) 1% $15 million OP15 Inadequate Water Supply 4% $9 million Note 1: Flood impacts (OP1 and OP2) are recorded before insurance or disaster relief, pending further estimates of these recoveries by one of the Risk Owners (Finance). Table 6.2 shows the four events that are within the City’s Risk Appetite but at or above the Amber Appetite. TABLE 6.2 AMBER RISKS (APPROACHING RISK APPETITE) Risk Event Impact (Median; Category Code Event Likelihood Net of Insurance) Business B6 Cost Overrun on Capital Project 15% $1 million Political P5 Mayor Elected MLA > 40% $250,000 Compliance C1 Loss of Records (permits, inspections, property details) 3% $2 million C9 Contamination at the Decommissioned 115 Avenue 1% $5 million Landfill Site Note that Political Event P5 (Mayor Elected MLA) is not and should not be controllable by the City and, given its amber status and moderate impact, is not discussed further. Regular Council with Page 247 of 305 Committee of the Whole - 18 Item 7.12 - 17 - 6.3 Risk Response Following discussions with the Chief Administrative Officer, the following were selected as risk owners for the Key and Amber Risks. The risk owners are responsible for mitigating the risk to within the City’s risk appetite, where such mitigation is cost-effectively possible. TABLE 6.3 SELECTED KEY RISKS Event Risk Owner Key 1. Flood Infrastructure/Finance 2. Inadequate Water Supply Infrastructure 3. Loss of Fair Share Funding CAO/Finance 4. Provincial Moratorium on Hydraulic Fracturing CAO 5. Failure of Succession Plan CAO 6. Failure to Make a Cost-Effective Decision with Respect to Water Supply Risk CAO Amber 7. Cost Overrun on Capital Project Infrastructure 8. Loss of Records Infrastructure/Finance 9. Contamination at Decommissioned 115 Avenue Landfill Site Infrastructure Regular Council with Page 248 of 305 Committee of the Whole - 18 Item 7.12 - 18 - 7.0 CONTROL ACTIVITIES 7.1 Process Discussions on risk mitigation of the key and amber risks were held with risk owners (the responsible City staff). Elements of a risk control and mitigation strategy for each risk were planned. 7.2 Flood (OP1/OP2) As evidenced in the Risk Register, both 25 year and 250 year return period floods (with three year likelihoods of about 10% and 1% respectively) are events whose estimated impact (before mitigation) are at or above the City’s risk tolerance. The risk owners - Finance and Infrastructure - determined that most flood damage from a severe flood would be to the City’s bridges, culverts (including roadways) and associated water and sewer pipes). Pathways and the associated lighting in proximity to the creek would also be damaged. The estimated replacement cost value of the above property is $10.5 million. With the exception of the 10 Street bridge, none of the property is presently insured. Annual insurance premiums to insure the flood-exposed property are being investigated. This insurance could also cover the extra expense associated with temporary bridges while the damaged property is repaired, which could be as much as the repairs. There would still be some uninsured loss associated with a flood - cleanup, trees, landscaping, etc. - but purchase of insurance on the bridges, culverts and other property would decrease the impact of a 100-year flood from $15 million presently to an estimated $2 million. This would bring the risk to within the City’s risk appetite. A quotation on insurance of the above property was obtained…to be completed. Regular Council with Page 249 of 305 Committee of the Whole - 18 Item 7.12 - 19 - 7.3 Inadequate Water Supply (OP15) Firstly, it should be noted that inadequate water supply because of an oil pipeline leak upstream of the City’s water intake is a separately considered event (namely OP42)3. Thus, the Inadequate Water Supply Risk (OP15) is related to only a low level of the Kiskatinaw River due to less than expected precipitation, resulting in depletion of the City’s water reservoir storage and the possible need to truck water at extra expense. It should also be noted that during the lowest river level (and related water supply difficulties) in recent City history (1992), no trucked makeup water was necessary, although demand was significantly curtailed. As mentioned, the current risk mitigation for water shortfall from the current supply system would be trucking of water, at an estimated cost of about $20/m3. This cost assisted the Risk Assessment Workshop group for assessing the impact of sustained drought. At the median impact of $9 million and a curtailed demand of 4,000 m3/day, the forecast event (4% likelihood) would imply trucking the equivalent of about 4 months of demand, in addition to the existing reservoir storage of about 4 months supply at curtailed demand. From the Risk Assessment Workshop, the remote likelihood but major impact (4%; $9 million) of an inadequate water supply make it a key risk beyond the City’s risk appetite. Indeed, further analysis and mitigation of the water supply risk is one of the City’s 2013 strategic priorities. Two alternative large capital projects have been proposed to mitigate inadequate water supply beyond the present back-up strategy of trucking and demand curtailment, viz: 1. a $20 million raw water reservoir (representing about 12 months of water supply at 6,000 m3/day) 2. a $60 million water pipeline connecting the City with the Peace River. ______ 3. This event occurred in the District of Chetwynd in 2000, following which Chetwynd’s potable water source from the Pine River was interrupted for almost two years. Chetwynd trucked water for a year and eventually drilled three water wells from which water was supplied for the second year. The financial impact on Chetwynd was reportedly zero, inasmuch as the responsible party (Pembina Pipeline) paid all of the trucking, drilling and related expense, serendipitously left Chetwynd with three back-up water wells. Regular Council with Page 250 of 305 Committee of the Whole - 18 Item 7.12 - 20 - Whether either of these alternatives (or some other alternative or combination of alternatives) represents the best valued risk mitigation to bring the risk within the City’s risk tolerance for water storage is a complex question. The question was considered briefly by the Risk Assessment Workshop group. A decision on the optimal water supply risk mitigation would importantly depend on how the City defines inadequate water supply (i.e. what risk tolerance is applied to water supply risk, what supply confidence level is required and what are other supply side preferences). Also, its cost notwithstanding, trucking water for an extended period (as Chetwynd did in 2000) involves other costs and issues (traffic, safety, reliability, City staff overtime and general civic stress) and these will need to be considered. The water supply risk mitigation decision will also depend upon understanding a number of exogenous variables: precipitation and resulting river level; realistic demand control and curtailment; trucking cost and logistical feasibility at various volume levels; feasibility and cost of other conservation methods (e.g. chemicals, beads and tarps); water permit restrictions at various river flows; and possible use of Shell plant water for non-potable use. As mentioned above, the City’s water security corporate priority plan includes Water Security Public Meetings in April 2013. The risk owner (Infrastructure) plans to analyze the water supply system, its risk and the available risk management alternatives before these meetings. Indeed, this analysis will be necessary in order to mitigate another key risk (P4; discussed shortly in Section 7.7). 7.4 Loss of Fair Share Funding (P1) The Fair Share Agreement is a Memorandum of Understanding as between the Province, the Peace River Regional District and, inter alia, the City. It was originally created in 1998 and was renewed in 2005, expiring in 2020. Presently (2012), the City’s annual share of the Fair Share Agreement is about $10.8 million (about 27% of the City’s operating revenues). The risk of either partial or total loss of the City’s Fair Share funding over the next three years was assessed by the Risk Assessment Workshop group as being remote (2%) but with a very high impact: a range of $20 million - $70 million, with a median impact of $45 million. Review of the Loss of Fair Share Funding risk was identified as a 2012 strategic priority, viz: “an independent review…to examine the risks associated with this funding source declining and/or ending and outlining the various mitigation strategies…”. This independent review was presented to Council on February 4, 2013 but unfortunately did not provide any risk mitigation alternatives to decrease either the likelihood or impact of the event in question, i.e. loss of the funding in the next three years. Regular Council with Page 251 of 305 Committee of the Whole - 18 Item 7.12 - 21 - A serious decrease in Fair Share funding from economic factors is unlikely, inasmuch as the Fair Share formula is based upon relatively stable (one would expect) industrial tax assessment values. A serious decrease would most likely come from a political decision made at the Provincial level. The risk owners (the CAO and Finance) recognize the remote nature of any decrease in the Fair Share funding before 2020 and expect any such change would likely be phased in, allowing time for adjustments to operating and capital budgets, expenditures, tax rates, services and staffing levels. Likelihood control will continue to be applied through advocacy, intergovernmental relations and lobbying. 7.5 Provincial Moratorium on Hydraulic Fracturing (P3) The risk of a Provincial moratorium (or partial moratorium) on hydraulic fracturing was identified in Phase 1 and then assessed by the Phase 2 Risk Assessment Workshop group as having a likelihood of 10% over the next three years. The impact of such a moratorium on the City would include loss of water sales to hydraulic fracturers, decrease in Fair Share revenues, significant loss of economic activity (and decreased tax revenue), general loss of corporate support and various other indirect effects. The sum of these impacts was estimated by the Risk Assessment Workshop group, on a net present value basis, at roughly $10 million. The risk owner - the Chief Administrative Officer - recognizes the political uncertainty around hydraulic fracturing and intends to continue the City’s advocacy role. This role includes inter- governmental relations and lobbying, as well as an educational component to inform both the Provincial government and the general public on the safety, environmental and economic realities. The risk owner recognizes that the regional nature of the risk within a larger realm of considerable environmental and safety misconception makes mitigation of the risk a challenge. 7.6 Failure of Succession Plan (OR1) The City is experiencing significant stress in recruiting, training and retaining management and technical personnel. Some of the staff positions at issue include water treatment plant operators, airport management and staff, power engineers for arenas, building inspectors and trained lifeguards. As well, approaching retirements of some of the Directors and Deputy Directors also put effective succession of these positions at risk. Elements of the risk include the following: 1. there is notable competition with industry and other municipalities for human resources Regular Council with Page 252 of 305 Committee of the Whole - 18 Item 7.12 - 22 - 2. the City’s pay grid is, for many positions, less than the market salary and benefits that are paid by industry with whom the City competes for human resources (the City also competes for human resources with other municipalities) 3. the union salary grid has compacted the salary range within which the City may operate in recruiting 4. the City faces increased recruiting costs (recruitment often needs to be conducted non-locally) 5. the rising cost of living in Dawson Creek 6. the consequence of this is a risk of decrease in quality of services and an increase in errors and omissions risk arising out of technical services. The City’s succession plan is presently relatively informal and was considered by the Risk Assessment Workshop group to be at significant risk of failure in dealing with the above human resource stress, i.e. a likelihood of failure of 50%, the highest likelihood of any event on the risk register. The impact, measured in part on the basis of the estimated cost to resolve the human resource risk through higher salaries and benefits, was $1.5 million. Whilst this is not a catastrophic impact, the high likelihood of failure makes the succession plan risk a key risk. The City’s 2013 strategic priorities include an Organizational Review for which the Chief Administrative Officer is responsible. Accordingly, the Chief Administrative Officer accepted ownership of the Succession Plan Failure risk. The risk owner initially has observed that this risk is complex and has no straightforward mitigation strategies (“no magic bullet”), i.e. traditional approaches have not been particularly successful to date. The 2013 Organizational Review will, inter alia, develop alternatives and plans to mitigate the human resource risk. 7.7 Failure to Make a Cost-Effective Decision with Respect to Water Supply Risk (P4) As discussed above in Section 4.5, water supply risk (OP15) is one of the City’s key risks and, as set forth in the City’s 2013 operational strategies, will be the subject of public meetings on water security in April 2013. Thus, it can be expected that within the next three years a decision on water supply risk management (either by referendum or from Council) will be made. Regular Council with Page 253 of 305 Committee of the Whole - 18 Item 7.12 - 23 - This Risk Register event (P4) records the possibility of a poor decision by stakeholders (the City, City Council and Dawson Creek citizens) in determining the most cost-effective means of mitigating the water supply risk (OP15) to within the requisite water security tolerance. It is a somewhat complex and technical risk management decision, one which the Risk Assessment Workshop group clearly felt might be waylaid for a number of reasons. The Risk Assessment Workshop group assessed the likelihood of such a poor decision at 15%. The impact of such a failure was estimated by 75% of the Risk Assessment Workshop group as being at least $40 million. The event thus is registered as the event furthest outside the City’s risk appetite, i.e. it is arguably the City’s largest risk, larger than the water supply risk itself. Given the political nature of the risk, the risk owners - the Chief Administrative Officer and the Director of Infrastructure - consider the best and only mitigation strategy is properly and practically informing the stakeholders on all of the elements necessary for a quality decision. This importantly includes the cost, benefit and risk of doable mitigation alternatives. Developing this information is an important and immediate priority of the risk owners, given the impending public meetings in April 2013. 7.8 Amber Risk: Cost Overrun on Capital Project With a likelihood of 15% and a median impact of $1 million, the risk was judged by the Risk Assessment Workshop Group to be within the City’s risk appetite. However, the event fell in the “amber zone” and hence risk ownership was assigned to Infrastructure. The most significant City project that is planned to be executed in the next three years is an extensive $5 million water and sewer upgrade and expansion project. A 20% cost overrun on this project would produce the $1 million impact estimated by the Risk Assessment Workshop Group. The risk owner acknowledged and accepted the dimensions of the present project risk, at least as regards the current project plan. The current plan has the following weaknesses: 1. the design (engineering drawings and specifications) are not fully complete to the point required to fully manage cost overruns from scope creep or contractor work extras 2. construction would commence during the winter 3. tenders would be let in September; this timing typically produces higher cost than earlier in the year. Regular Council with Page 254 of 305 Committee of the Whole - 18 Item 7.12 - 24 - Accordingly, the risk owners’ revised plan is to postpone tendering until engineering is complete, thus avoiding both winter construction and sub-optimal tender timing. This strategy should reduce project cost overrun risk to below even amber levels. 7.9 Amber Risk: Loss of Records at City Hall Another amber risk (likelihood 3%; impact $2 million) involved damage to or destruction of the considerable volume of paper records being stored at City Hall. These records go back several generations and include important documents: maps; building permits; development permits; safety and building code inspections; financial and legal records. Their loss would have a serious operational and reputational impact on the City. The risk owners - Infrastructure and Finance - has considered the cost and risk reduction benefit of eliminating the risk altogether by scanning and storing the records digitally. The risk has an “expected annual cost” (i.e. annual likelihood (1%) times impact ($2 million)) of $20,000. On a net present cost basis at a discount rate of 8%, an annual cost stream of $20,000 over the next 25 years equates to a total of about $200,000. In risk terms, the City should be indifferent between the risk (@ $20,0004 expected cost per year) and a one-time payment of $200,000 to eliminate the risk altogether through a digital backup filing system. The risk owners (Finance and Infrastructure) are relatively confident that the digital backup can be accomplished over the next 2 - 3 years for a total investment in the order of $100,000, including hardware, software and labour. 7.10 Amber Risk: Contamination at Decommissioned 115 Ave. Landfill Site The costs associated with the potential liability for and cleanup of the 115 Ave. former landfill site were assessed by the Risk Assessment Workshop Group as $5 million. Likelihood of any environmental problems arising in the next three years at the site was judged to be very remote (1%). This event is within the City’s risk appetite, but high enough to gain amber status. The risk owner - Infrastructure - recognizes the landfill site as a “major unknown”, with uncertainty as to the exact nature of materials disposed of at the site and whether pollutants could enter the adjacent creek or the groundwater. (The risk owner also points out that this site is the only known “unknown” environmental risk; the City is aware of no other potential environmental problems.) ______ 4. The $20,000 “expected value” of the risk ignores risk. If the City’s risk aversion is considered, the risk- adjusted annual expected cost is higher (e.g. $30,000). Regular Council with Page 255 of 305 Committee of the Whole - 18 Item 7.12 - 25 - Before any serious risk mitigation is planned, the risk owner is of the view that the risk needs better definition. Accordingly, a Phase 1 and 2 Environmental Site Assessment is being considered (estimated cost: $50,000). Such an assessment would include sampling of creek and groundwater plus soil sampling, and then an interpretation of the test results. It should determine, to a high level of confidence, whether (and to what extent) any environmental concerns actually exist. Once the ESA on the 115 Ave. site is complete, the need and urgency for any remediation can be better assessed. 7.11 Summary Table 7.1 sets forth a summary of the planned Control Activities. TABLE 7.1 SUMMARY OF CONTROL ACTIVITIES (Key and Amber Risks) Event Proposed Risk Mitigation Key 1. Flood Insurance 2. Inadequate Water Supply Best Solution Under Study 3. Loss of Fair Share Funding Advocacy and Intergovernmental Relations 4. Moratorium on Hydraulic Fracturing Advocacy and Intergovernmental Relations 5. Failure of Succession Plan Organizational Review to Be Completed 6. Poor Decision of Water Risk Management Fully Informing Stakeholders of the Risk Amber 7. Cost Overrun on Capital Project Revised Project Risk Management Plan 8. Loss of Records Electronic Data Conversion and Storage 9. 115 Avenue Site Contamination Phase 1 and 2 Environmental Site Assessment Regular Council with Page 256 of 305 Committee of the Whole - 18 Item 7.12 - 26 - 8.0 INFORMATION & COMMUNICATION The Project and its documentation will be communicated as follows: 1. to the City’s external auditor 2. to City Council (February 18, 2013) 3. to Directors, Deputy Directors and Senior Managers 4. as otherwise directed by Council or the Chief Administrative Officer. Regular Council with Page 257 of 305 Committee of the Whole - 18 Item 7.12 - 27 - 9.0 MONITORING As set forth in the City’s Risk Management Policy, the City’s Risk Management Framework and Processes will be maintained as follows: TABLE 9.1 MONITORING PLAN (as per Risk Management Policy and Procedures) PROCEDURES: 1. The Finance Department will: (a) administer, document and update the City’s risk management framework and processes (b) periodically consult with key risk owners on risk response, control and insurance (c) administer insurance (d) prepare a report on the above to the Chief Administrative Officer (e) annually liaise with and report to the External Auditor on all of the above. 2. A Key Risk Owner (Department) will: (a) prepare a risk response and control plan for the key risk (b) periodically consult with and report to the Finance Department on its key risk response and control plan (c) periodically report to the Chief Administrative Officer on all of the above. 3. The Chief Administrative Officer will: (a) receive and approve the reports on the risk management framework and processes from the Finance Department (b) report (or arrange for reporting) on the above to Council. Regular Council with Page 258 of 305 Committee of the Whole - 18 Item 7.12 APPENDIX A DRAFT RISK MANAGEMENT POLICY Regular Council with Page 259 of 305 Committee of the Whole - 18 Item 7.12 Policy – Finance SUBJECT: RISK MANAGEMENT POLICY STATEMENT: The City of Dawson Creek shall employ a risk management framework and risk assessment and mitigation processes to identify and manage key risks beyond our risk appetite that may threaten achievement of our policy objectives. PURPOSE: The purpose of this policy is to ensure that the management of the City’s risks is done with considered judgment and discipline, that all material exposures to adverse events across all of the City’s services, infrastructure and activities are considered and that risks are managed to within the City’s risk appetite. DEFINITIONS: 1. Compliance - Used with “objectives”: having to do with conforming with laws, regulations, policies and standards applicable to the City. 2. Component - There are eight risk management components: the entity’s internal environment, objective setting, event identification, risk assessment, risk response, control activities, information and communication, and monitoring. 3. Control Activity - A policy, procedure, program or internal control that is designed to decrease the likelihood or impact of an adverse event. A control can exist within any of the eight components. 4. Event - An incident or occurrence, from sources internal or external to an entity, that affects achievement of the City’s objectives. 5. Impact - Result or effect of an event. There may be a range of possible impacts associated with an event. The impact of an event can be positive or negative relative to the City’s related objectives. 6. Internal Control - A process, effected by the City, designed to provide reasonable assurance regarding the achievement of objectives in the effectiveness and efficiency of operations, reliability of financial reporting and compliance. Regular Council with Page 260 of 305 Committee of the Whole - 18 Item 7.12 Policy – Finance 7. Key Risk - A condition or potential event whose likelihood or impact is outside of the City’s risk appetite. 8. Likelihood - The possibility that a given event will occur. The City will express likelihoods during the next three years (i.e. its planning period). 9. Policy Objectives - The City’s strategic and business objectives. 10. Risk - The potential that an event, action or inaction will threaten the City’s ability to achieve its policy objectives. Risk is described in terms of its likelihood of occurrence and potential impact or magnitude. Broad categories of risk in the City include: (a) Business Risk (b) Political Risk (c) Organizational Risk (d) Compliance Risk (e) Operational Risk. 11. Risk Appetite - an expression (either qualitative or quantitative) of the amount of risk (in terms of an event’s likelihood and impact) that the City is willing to accept in pursuit of its mission and objectives. 12. Risk Assessment - The systematic identification and measurement of the likelihood or impact of identified adverse events. 13. Risk Mitigation (see Control Activity) - Actions or decisions by the City that will change the likelihood or impact of an adverse event. 14. Risk Tolerance - A metric that describes the City’s relative risk aversion, one which permits quantification of the City’s risk appetite. RISK APPETITE: Risk Appetite is defined in both quantitative and qualitative terms and is articulated and applied consistently across the City’s organization. Among other things, our risk appetite requires: 1. that everything we do is guided by principles of honesty, integrity and respect, 2. that we only take risks that are understood, measured, monitored and managed; 3. that a strong financial position is maintained 4. that new capital projects and initiatives are subjected to a rigorous review and approval process to ensure all key risks and returns are understood and can be managed with appropriate controls; Regular Council with Page 261 of 305 Committee of the Whole - 18 Item 7.12 Policy – Finance 5. that we maintain a robust emergency planning and business continuity framework 6. that we limit and control exposure to any low-probability but high impact event that could jeopardize the City’s financial, operational or reputational integrity 7. that appropriate compliance standards, practices and controls are in place 8. that we protect the City, its assets and its citizens by maintaining a system of strong operational standards, practices and internal controls. RESPONSIBILITIES: 1. City Council (a) adopts, by resolution, the City of Dawson Creek’s Risk Management Policy. (b) ensures that the Policy is reviewed on an annual basis. (c) ensures that, as part of the annual audit performed by the External Auditor, that compliance with this policy has been achieved. 2. Chief Administrative Officer (a) approves the procedures related to risk management. (b) ensures that the risk management framework and processes are monitored, communicated and updated as required. (c) provides management oversight on the City’s risk portfolio and risk management processes. (d) provides direction on the evolution of these processes and identifies priority areas of focus in risk assessment and risk mitigation. 3. Finance Department (a) conducts day-to-day risk management as identified in this policy. (b) establishes, conducts, documents and maintains the City’s risk management framework and processes. (c) assists key risk owners to monitor and report on key risk mitigation plans and status. 4. Departments (as Key Risk Owners) (a) implements the mitigation and control of key risks assigned to it (b) reports on the risk mitigation and control efforts and results to the Chief Administrative Officer. Regular Council with Page 262 of 305 Committee of the Whole - 18 Item 7.12 Policy – Finance PROCEDURES: 1. The Finance Department will: (a) administer, document and update the City’s risk management framework and processes (b) periodically consult with key risk owners on risk response, control and insurance (c) administer insurance (d) prepare a report on the above to the Chief Administrative Officer (e) annually liaise with and report to the External Auditor on all of the above. 2. A Key Risk Owner (Department) will: (a) prepare a risk response and control plan for the key risk (b) periodically consult with and report to the Finance Department on its key risk response and control plan (c) periodically report to the Chief Administrative Officer on all of the above. 3. The Chief Administrative Officer will: (a) receive and approve the reports on the risk management framework and processes from the Finance Department (b) report (or arrange for reporting) on the above to Council. Regular Council with Page 263 of 305 Committee of the Whole - 18 Item 7.12 APPENDIX B 2013 CITY OF DAWSON CREEK RISK REGISTER (as at January 17, 2013) Regular Council with Page 264 of 305 Committee of the Whole - 18 Committee of the Whole Regular Council with B - 1 APPENDIX B 2013 CITY OF DAWSON CREEK RISK REGISTER (as at January 17, 2013) Insured - Event Likelihood Impact Range or Other Impact (Median) 18 Risk Category Code Event (Next 3 Years) (Before Insurance) Relief? (Net of Insurance) Business B1 Increase in Interest Rates 33% $50,000 - $100,000 N $75,000 B2 Foreign Exchange Loss 10% $50,000 N $50,000 B3 Loss of CMA Service 15% $200,000 - $1 million N $500,000 B4 Loss of Regional District Fire Protection Contract 3% $1 million N $1 million B5 Liability to Developer Over Development Permits 10% $100,000 - $1 million N $500,000 B6 Cost Overrun on Capital Project 15% $100,000 - $2 million N $1 million B7 Default of Developer 14% $100,000 - $1 million N $400,000 Political P1 Loss of Fair Share Funding 2% $20 million - $70 million N $45 million P2 Alleged or Actual Conflict of Interest by City Councillor (City Indemnity) 12% $100,000 - $500,000 Y $400,000 P3 Provincial Moratorium on Hydraulic Fracturing 10% $5 million - $20 million N $10 million P4 Failure to Make a Cost-Effective Decision with Respect to Water Supply Risk 11% $30 million - $50 million N $40 million P5 Mayor Elected MLA > 40% $300,000 $300,000 Organizational OR1 Failure of Succession Plan in Replacing Key People (retirement or otherwise) 50% $500,000 - $5 million N $1.5 million OR2 Liability for Employee Abuse 15% $100,000 - $500,000 P $350,000 OR3 Pandemic 1% $100,000 - $1 million N $500,000 OR4 Failure to Recruit/Train/Retain Airport Personnel see OR1 -- N -- OR5 Failure to Recruit/Train/Retain Qualified Power Engineers for Arenas see OR1 -- N -- OR6 Strike 2% $100,000 - $1 million N $400,000 OR7 Failure to Recruit/Train/Retain Qualified Water Treatment Operators see OR1 -- N -- OR8 Failure to Recruit/Train/Retain Qualified Building Inspectors see OR1 -- N -- Page 265 of 305 OR9 Loss of One or More Firefighters 1% $100,000 - $500,000 N $250,000 Compliance C1 Loss of Records (permits, inspections, property details) 3% $1 million - $5 million P $2 million C2 Contaminated Potable Water 5% $500,000 - $5 million N $1 million C3 Failure to Meet Water Quality Regulations 10% $100,000 N $100,000 C4 Failure to Meet Sanitary Sewer Discharge Regulations 10% $100,000 N $100,000 Item 7.12 C5 Failure to Receive Grant Monies Due to Inadequate Documentation 5% $100,000 - $500,000 N $200,000 C6 Failure to Meet Public Sector Accounting Standards 10% $100,000 - $500,000 N $150,000 C7 Failure to Collect or Pay GST/HST 25% $25,000 N $25,000 C8 Failure to Comply with Partnership, Funding or Other Agreement 5% $100,000 - $500,000 N $200,000 C9 Contamination at the Decommissioned 115 Avenue Landfill Site 1% $1 million - $10 million N $5 million Committee of the Whole Regular Council with B - 2 APPENDIX B 2013 CITY OF DAWSON CREEK RISK REGISTER (as at January 17, 2013) (Continued) - Insured 18 Event Likelihood Impact Range or Other Impact (Median) Risk Category Code Event (Next 3 Years) (Before Insurance) Relief? (Net of Insurance) Operational OP1 Flood (25 yr. return period) 8% $100,000 - $5 million P $2.5 million OP2 Flood (Loss of 8th Street Culvert/Other Culvert(s)/Bridge(s)) (100 yr. return prd.) 3% $5 million - $25 million P $15 million OP3 Urban Interface Fire 10%/1% $25,000/$500,000 N $25,000/$500,000 OP4 Fire or Explosion at City Hall 1% $250,000 - $5 million Y $1 million OP5 Fire or Explosion at the Multiplex 1% $250,000 - $5 million Y $1 million OP6 Fraud 2% $25,000 - $250,000 N $125,000 OP7 Transportation of Dangerous Goods Incident on Alaska Avenue 10%/1% $10,000/$100,000 N $10,000/$100,000 OP8 Earthquake 1% $50,000 - $1 million P $250,000 OP9 Failure to Provide Adequate Fire Protection/Inspection 5% $100,000 - $5 million Y $500,000 OP10 Complex Murder Case Requiring Prolonged Investigation 25% $100,000 - $500,000 N $150,000 OP11 Windstorm 10% $100,000/$2 million Y $500,000 OP12 Outage of PNG Gas Supply 2% $200,000 - $2 million P $1 million OP13 Major Electrical Power Outage 5% $100,000 - $1 million N $350,000 OP14 Failure of I.T. System 10%/1% $50,000/$5 million P $25,000/$500,000 OP15 Inadequate Water Supply 4% $1 million - $15 million N $9 million OP16 Severe Storm (Hail, Ice, Tornado, etc.) 5% $500,000 - $10 million P $1 million OP17 Falling Tree Causing Damage/Injury 10%/1% $50,000/$1 million Y $50,000/$1 million OP18 Arena Roof Collapse .5% $5 million Y $1 million OP19 Fire at Kin Arena 10%/1% $100,000/$2.5 million Y $100,000/$2.5 million OP20 Fire at Art Gallery 10%/1% $100,000/$1.5 million Y $100,000/$1.5 million Page 266 of 305 OP21 Liability for Airport Aviation Accident (inadqute rnwy. mntnce., bird strike, etc..) 5% $100,000 - $25 million Y $1 million OP22 Breach of Airside Security 5% $10,000 - $1 million P $250,000 OP23 Failure of Water Line 100% $10,000 - $50,000 N $25,000 OP24 Failure of Sewer Line 100% $10,000 - $50,000 N $25,000 Item 7.12 OP25 Liability for Sanitary/Storm Sewer Backup 5% $100,000 - $2 million P $500,000 OP26 Lagoon Berm Failure 2% $100,000 - $1 million N $250,000 OP27 Heavy Snow Year - Increased Removal Expense 25% $200,000 N $200,000 OP28 Slip and Fall on City Property 10%/1% $10,000/$500,000 Y $10,000/$500,000 OP29 Drowning at Multiplex 3% $10,000 - $2 million Y $100,000 Committee of the Whole Regular Council with B - 3 APPENDIX B 2013 CITY OF DAWSON CREEK RISK REGISTER (as at January 17, 2013) (Continued) Insured - 18 Event Likelihood Impact Range or Other Impact (Median) Risk Category Code Event (Next 3 Years) (Before Insurance) Relief? (Net of Insurance) OP30 Shower Burn at Aquatic Centre 10% $1,000 - $100,000 Y $50,000 OP31 Injury or Death to Participants or Spectators at Multiplex or Arena 5% $10,000 - $2 million Y $1 million OP32 Natural Gas Explosion at City Facility 3% $50,000 - $5 million Y $2 million OP33 Ammonia or Carbon Monoxide Release at Arena 5% $1,000 - $1 million N $500,000 OP34 Pedestrian Injury from Car in Ballpark Parking 5% $1,000 - $1 million Y $100,000 OP35 Swimming Pool Contamination 5% $1,000 - $1 million N $25,000 OP36 Drowning at Rotary Lake 10% $1,000 - $1 million Y $500,000 OP37 Serious Security Incident at City Hall or Other Facility 5% $1,000 - $1 million N $100,000 OP38 Breach of I.T. Security 10% $1,000 - $1 million P $250,000 OP39 Liability for Error in Building or Safety Code Inspection 20% $1,000 - $3 million Y $500,000 OP40 Liability to Third Parties from Capital Projects or Zoning 3% $500,000 - $1 million N $750,000 OP41 Theft or Vandalism 50% $10,000 - $1 million Y $25,000 OP42 Loss of River Water Supply from Oil Spill 1% $1 million - $20 million Y $500,000 Page 267 of 305 Item 7.12 Item 8.2 REPORT TO COUNCIL DATE: February 12, 2013 REPORT NO.: 13-039 SUBMITTED BY: Kevin Henderson FILE NO.: Bylaw 4161 Director of Infrastructure & Sustainable Development SUBJECT: Zoning Amendment Bylaw No. 4161, 2013 1405 - 100 Ave – Ronald & Marion Crowe PURPOSE To initiate the rezoning from C-4 (Commercial - Service Zone) to RS-2 (Residential – Single Duplex Zone) at 1405 - 100 Avenue so it can be used and sold as a residential property in the future. SUMMARY/BACKGROUND This 656 m² (0.16 acres) property is located along 100 Avenue, behind the No Frills grocery store. The neighbouring property recently applied to similarly change their zone (Zoning Amendment Bylaw No. 4159). This landowner was notified of that rezoning and would like to do the same. The building permit records indicate the house has been on this property since at least 1961. However, the City has zoned this property (and other properties in the area along 14 Street and 15 Street) for commercial use. The proposed RS-2 (Residential – Single Duplex Zone) allows for a single family dwelling or a duplex. The proposed rezoning is consistent with the Official Community Plan which designates the property “Residential”. The OCP also places this property within an area intended for infill or redevelopment. ALTERNATIVES Council may approve or refuse 1st and 2nd Readings of Zoning Amendment Bylaw No. 4161, 2013 or ask for additional information. IMPLICATIONS (1) Social Enables redevelopment of housing. (2) Environmental N/A Regular Council with Page 268 of 305 Committee of the Whole - 18 Item 8.2 Report re: Zoning Amendment Bylaw 4161 Page 2 of 3 (3) Personnel City Planner processes application; Engineering Clerk issues notification. (4) Financial N/A IMPLEMENTATION/COMMUNICATION The applicant will be advised of Council’s decision; if approved, notification will be issued to neighbouring properties and published in the newspaper and a public hearing held at the next regular Council meeting. RECOMMENDATION That Report No. 13-039 from the Director of Infrastructure & Sustainable Development re: Zoning Amendment (13-02) Bylaw No. 4161, 2013 be received; further, that Zoning Amendment (13-02) Bylaw No. 4161, 2013, rezoning 1405 - 100 Avenue from C-2 (Commercial - General Zone) to RS- 2 (Residential – Single Duplex Zone), be given first and second readings; and further, that staff be directed to publish the required notice for a formal public hearing. Respectfully submitted, APPROVED FOR AGENDA BY CAO ORIGINAL SIGNED BY Kevin Henderson Director of Infrastructure & Sustainable Development /jm Regular Council with Page 269 of 305 Committee of the Whole - 18 Item 8.2 Report re: Zoning Amendment Bylaw 4161 Page 3 of 3 SUBJECT PROPERTY Regular Council with Page 270 of 305 Committee of the Whole - 18 Item 8.2 THE CORPORATION OF THE CITY OF DAWSON CREEK ZONING AMENDMENT (13-02) BYLAW NO. 4161 A Bylaw to amend "Zoning Bylaw No. 4115, 2011" WHEREAS, the Council may, under the authority of Section 903 of the Local Government Act, create different zones and regulate uses, density, and siting within each zone; NOW THEREFORE, the Council of the City of Dawson Creek enacts as follows: SECTION 1 – ADMINISTRATIVE PROVISIONS 1.1 This bylaw may be cited as the "ZONING AMENDMENT (13-02) BYLAW NO. 4161, 2013" and takes effect as of the date of adoption. 1.2 If any section, subsection, sentence, clause or phrase in this bylaw is for any reason held to be invalid by a decision of any Court of competent jurisdiction, the decision shall not affect the validity of the remaining portion of this bylaw. SECTION 2 – MAP AMENDMENT 2.1 The Zoning Map of the City of Dawson Creek, attached as Schedule B to the City of Dawson Creek "Zoning Bylaw No. 4115, 2011" is hereby amended by changing the zoning of the lands shown on Schedule A attached hereto and forming part of this Bylaw from C-4 (Commercial – Service Zone) to RS-2 (Residential – Single and Duplex Zone). PID: 013-818-236 Civic Address: 1405 – 100 Avenue Legal Description: Lot 23, Block 8, Section 15, Township 78, Range 15, West of the 6th Meridian, Peace River District, Plan 2986. READ a first time this day of ,2013. READ a second time this day of ,2013. ADVERTISED this and day of ,2013. PUBLIC HEARING was held this day of ,2013. READ a third time this day of ,2013. ADOPTED this day of ,2013. CERTIFIED A TRUE AND CORRECT COPY of The Corporate Seal of THE CORPORATION OF THE CITY Bylaw No. 4161 cited as “ZONING AMENDMENT (13-02) BYLAW NO. 4161, OF DAWSON CREEK was affixed in the presence of: 2013.” Brenda Ginter Mike Bernier – Mayor Director of Corporate Administration Brenda Ginter –Director of Corporate Administration ATTACHMENT: Schedule A (map) Regular Council with Page 271 of 305 Committee of the Whole - 18 Item 8.2 SCHEDULE "A" Regular Council with Page 272 of 305 Committee of the Whole - 18 Item 8.2 THE CORPORATION OF THE CITY OF DAWSON CREEK PO Box 150, Dawson Creek, DC V1G 4G4 . . tel 250784 3600 fax 250.782.3203 Devel 0 pm ent Appll cation www.dawsollcreek ca An application o Development Pennit ~nlng Amendment is submitted for o Development Variance Penn It o Combined OCPlZoning Amendment one or more of the following: o OffIcial Community Plan Amendment o Temporary Use Pennit Description of Property Civic Address HI" S- ~ ~ Iftlb PID ______ Legal Lot _____ Block _____ Sectlon ____ Range ______Plan __----. ______ Contacts Please print clearly. Applicant Name ceu The undersigned owner/authorized agent of the owner makes an application as specified heIBin, and dec/alBs that the Infomlation submitted in support of the application is true and correct in a/l respects. A"'~"'S_N''''':-) ~~~ I "'" I. /J1~ ~ .3d1! j013 Owner Name I Company If the applicant Is NOT the Address owner, please I CHy complete Email IPostal Code Phone I Cel I Fax 10. Any personal information prrMcIed in this application is collected for the purpose of administering the Lpca/ GovemmentAct and the bylaws of the municipality under the Lpca/ Govemment Act, and under the authority of those enactments. Questions about the collection of the information may be dirBcted to the Freedom of Information Offlcer. Development Application December ?, 2011 1 Regular Council with Page 273 of 305 Committee of the Whole - 18 Item 8.2 D~OIICmk THE CORPORATION OF THE CITY OF DAWSON CREEK • • Tt._ CO'- .,, '" PO Box 150, Dawson Creek, BC V1G 4G4 . . tel 250.784.3600 fax 250.782.3203 Development Application WWW cfawsollcreek ca Development Details Properly Size (,a, de ""z". Existing Use t't!.~ i;tJ (m" or hal -z:;J /I ~<-I Current Zoning ___'-_-.....:¥~ ______Proposed Zoning _.L~~-!J~~ ______CurrentOCPDesignation ______ Proposed OCP Designation ______DescribeProposal ______ Justification and Support -1 aor'! 1AUt.dini; -:;t.,. pow6i (attach additiona/information to clarify) Requested Variances Bylaw Section & Requirement Permitted Proposed Difference E)(ample (Section 204. 7 - Building Height) (9.0rn) (9.5rn) (0.5m) .. (attach additlOna/ mformation to clarify) Oeve/opnoentAppficaUon December 7, 2011 2 Regular Council with Page 274 of 305 Committee of the Whole - 18 Item 8.2 THE CORPORATION OF THE CITY OF DAWSON CREEK PO Box 150, Dawson Creek, BC V1G 4G4 . . tel 250 784.3600 fax 250.782.3203 Development Application www (laW50Ilcreek.ca Services and Services shall be provided in a manner acceptable to the Municipality. Proposals shall be reviewed and Covenants additional information may be required. Please complete the following: YBj- nOD On/a III preliminary investigation has been completed to determine possible site servicing options (storm, sewer, water and access); yea no nla o 0 o servicing details are indicated on the submitted plans and/or attached brief, with reference to applicable land use and subdivision bylaws; and, yea no nla o 0 o registered covenants have been reviewed and plans reflect requirements. Site Profile for Pursuant to the Waste Management Act, an applicant is required to submit a completed ·Site Profile" on Contaminated properties that are/were used for purposes indicated in Schedule 2 of the Contaminated Sites Regulations. Sites Please indicate it yea no o }if.. the property has been used for commercial or industrial purposes; and, yes ~ o po- soil removal is required as part of this proposed permit. If both of these are applicable (yes), consult with Schedule 2 to determine if a Site Profile is necessary. Additional information regarding contaminated sites is available from the Province of Be website at http://www.env.gov.bc.ca/epd Information Required for Submission (Requirements are for Development PermIts. All other applications require Site Plan only.) Consult with staff to determine non-applicable (N/A) items. Additional information may be requested during application review. Req'd Rec'd Plans Detail. Seta of metric plans Reduced seta of mebie plans North arrow and scale DlmensiD/18 of property lines, righllHlkYay, easements Dimensions & setbacks of proposed & existing buildings & structures location of existing & proposed access, sidewalks, curbs, boulevards, edge of pavement & transit stops location, numbering & dimensions of all vehlde and bicycle parking, disabled p8l5ons' parking, vehide stops & loading Site Plan Natural & finished grades of sile, at buildings & retailing walls mebic scale only Locate all existing & proposed water nnes, wells, septic fields, sanitary sewer & stonn drain facilities, Induding sizes Locate high water malk, top of bank, nallral boundaries, watercourses & riparian area on or within 30 m of property Above ground services, equipment and exterior lighting details location & dimensions of frae.standing signs Stonn water management and surface penneablrlty Include reference to BelS site plan Floor Plans Uses of spaces & building dimensions min. scale 1:100 Adaplab~ housing requirements flf applicable) Building finishes, materials & colours Natural, finished grade & ftoor(s), roof & buDding height elevations Elevations Locations & sizes of roof mechanical equipment, stairwells, and elevator shafts that probude above the roof line min. scale 1:100 Examples of exterior finish colours Building signage details Location, quantity, size & species of existing & proposed plants, traes & turf Contour information (2.0 m intervals) Landscape Plan Major topographical features (water course, rocks, etc.) scale as site plan AB saeening (gaJbagelrafuse collection), paving, retaining walls & other details Landscape Architect's landscape estimate Development Application December 7, 2011 3 Regular Council with Page 275 of 305 Committee of the Whole - 18 Item 8.2 THE CORPORATION OF THE CITY OF DAWSON CREEK PO Box lS0, Dawson Creek. Be V1G 4G4 tel 250.784 3600 fax 250.782.3203 F ee S cellh d I e www. cl aw s o llcree k c a Please make cheque or money order payable to The City of Dawson Creek o Development Permit $400.00 o Development Variance Permit $300.00 o Official Community Plan Amendment $1,300.00* I){ Zoning Amendment $1,300.00* o Combined OCPlZoning Amendment $2,000.00* o Temporary Commercial & Industrial Permit $400.00 -Fee Includes advertising costs Dale AleNa. g Fe! Q.ol$ Office fs- ()). '20",,' ,1 ,~ Use Received Reoetved By \/ Required Documents '1/11\ Only Required Plans ReoeIpI No Fees ( \ I S"lh ql " Fees s $ i]Otl Devefop ment Appfics/ion December 7, 2011 4 Regular Council with Page 276 of 305 Committee of the Whole - 18 Item 8.3 REPORT TO COUNCIL DATE: February 12, 2013 REPORT NO.: 13-028 SUBMITTED BY: Brenda Ginter FILE NO.: Bylaw 4160 Director of Corporate Administration SUBJECT: Council Procedure Amendment Bylaw No. 4160 PURPOSE To introduce Council Procedure Amendment Bylaw No. 4160 for Council’s consideration. SUMMARY/BACKGROUND At the Regular Meeting held on February 4, 2013, Council approved several amendments to Council Procedure Bylaw No. 3696, including the following: 1. Remove the reference to the Edition of the Roberts Rules of Order. 2. Remove the reference to ending the meeting at 12 noon unless a 2/3 majority vote resolves to continue the meeting, and the reference to ending the meeting at 12:30 pm unless a unanimous vote resolves to continue the meeting. 3. Remove the reference that allows the Chair to reserve a decision until the following meeting. Administration would like to take this opportunity to propose the following amendments for housekeeping purposes. In all cases below, there will be no change in the current practice of Council and Administration. 1. The definition of “Public Notice Posting Place” should be clarified as follows: “Public Notice Posting Place” means: a) the notice board located on the main floor at City Hall; and b) the City’s web site. 2. The reference to adjourning a meeting after a period of time has passed with no quorum is currently listed twice in the bylaw, with the time to adjourn listed as 30 minutes in Section 5, and 15 minutes in Section 13. Administration is suggesting the first reference in Section 5(2)(a) be removed from the bylaw. This would leave Section 13 as the only reference to adjourning the meeting due to no quorum after a period of 15 minutes of the scheduled start time. Regular Council with Page 277 of 305 Committee of the Whole - 18 Item 8.3 Report re: Council Procedure Amendment Bylaw No. 4160 Page 2 of 3 3. Section 6(1) and (2) regarding the Notice of Council Meetings could be clarified and combined into one subsection as follows: a) The Corporate Administrator must prepare and give notice annually on or before December 31st, of a schedule of the dates, times, and places of Regular Council meetings for the next calendar year and must make the schedule available to the public by posting it at the Public Notice Posting Place and publishing it in the newspaper in accordance with the Community Charter. 4. Section 30(4) refers to Section 882 of the Local Government Act which deals with adoption procedures for the City’s Official Community Plan. The legislation states that “each reading of an Official Community Plan bylaw must receive an affirmative vote of the majority of all council members”, not just those present at the meeting - as is the case with other bylaws. Administration suggests the following revision: “Section 30(4) Unless otherwise specified by statute, each reading of a proposed bylaw must receive the affirmative vote of a majority of the Council members present.” 5. Best practices suggest that all statutory requirements required prior to the adoption of a bylaw be included at the end of any bylaw, including statutory requirements as well as the dates of required advertising, and the dates of public hearings. Section 31 of our bylaw currently requires: (a) City’s corporate seal, (b) the dates of its readings and adoption, and (c) the dates of Ministerial approval or approval of the electorate if applicable. Administration currently follows the best practices model and is suggesting the that subsection (c) be replaced with the following: “Section 31(c) the dates any applicable statutory requirements were fulfilled.” 6. According to the bylaw, the Committee of the Whole portion of the meeting is currently scheduled to begin at 11:00 am. This was originally included in the bylaw to provide a certain time where Senior Staff would attend the meeting to present their reports. The current practice is to call upon Senior Staff to attend Council after the Media Question Period and before Council moves into an In-Camera Session of the Agenda, no matter what time of day it is. Staff is therefore suggesting the reference to the time of 11:00 am be removed. ALTERNATIVES 1. Council may approve first three readings as presented or as amended. 2. Council may choose to refer the bylaw back to staff for further review. GUIDING PRINCIPLES We will have a reputation for acting with integrity and will earn the trust of stakeholders by modeling competence and anchoring behaviour on enduring values. STRATEGIC PRIORITIES N/A Regular Council with Page 278 of 305 Committee of the Whole - 18 Item 8.3 Report re: Council Procedure Amendment Bylaw No. 4160 Page 3 of 3 IMPLEMENTATION/COMMUNICATION Before a procedure bylaw can be amended, Council must first give notice in accordance with Sections 94 and 124 of the Community Charter. This means that a notice will be published in the local paper (once each week for two weeks) that describes the proposed changes in general terms. Administration will also include this notice on the City’s webpage. Following this notification requirement, the bylaw will be included on the next agenda for consideration of adoption. RECOMMENDATION That Report No. 13-028 from the Director of Corporate Administration re: Council Procedure Amendment Bylaw No. 4160 be received; further, that Council Procedure Amendment Bylaw No. 4160, 2013 be given first three readings. Respectfully submitted, APPROVED FOR AGENDA BY CAO ORIGINAL SIGNED BY Brenda Ginter Director of Corporate Administration BG/cf Regular Council with Page 279 of 305 Committee of the Whole - 18 Item 8.3 THE CORPORATION OF THE CITY OF DAWSON CREEK BYLAW NO. 4160 A Bylaw of The Corporation of the City of Dawson Creek (hereinafter called "the City") to amend Council Procedure Bylaw No. 3696, 2003. (previously amended by Bylaw No.’s 3839, 3880, 3901 and 4009) WHEREAS, the Community Charter requires that each Municipal Council enact a Procedure Bylaw to establish the general procedures to be followed by Council and Council Committees in conducting their business; NOW THEREFORE, the Council of the City of Dawson Creek enacts as follows: SECTION 1 – AMENDMENTS That COUNCIL PROCEDURE BYLAW NO. 3696, 2003 be amended as follows: 1.1 That “PART 1 - INTRODUCTION, Definitions, Section 2” be amended by replacing the definition of “Public Notice Posting Place” with the following: “Public Notice Posting Place” means: a) The notice board located on the main floor at City Hall; and b) The City’s web site.” 1.2 That “PART 1- INTRODUCTION, Application of Rules of Procedure, Section 3 (2), be amended to remove the reference to the edition of the Roberts Rules of Order by deleting “The New” before Robert’s Rules of Order and by deleting “2nd Edition, 1998” after Robert’s Rules of Order. 1.3 That PART 2 – COUNCIL MEETINGS, Time and Location of Meetings, Section 5, be amended by: 1.3.1 deleting the first bullet under Subsection (2)(a) regarding quorum; and 1.3.2 deleting Subsection (2)(c). 1.4 That PART 2 – COUNCIL MEETINGS, Notice of Council Meetings, Section 6 (1) and (2) be removed and replaced with the following, and that Section 6 (3) be renumbered accordingly: “6 (1) The Corporate Administrator must prepare and give notice annually on or before December 31st, of a schedule of the dates, times, and places of Regular Council meetings for the next calendar year and must make the schedule available to the public by posting it at the Public Notice Posting Place and publishing it in the newspaper in accordance with the Community Charter. 1.5 That PART 4 – COUNCIL PROCEEDINGS, Order of Proceedings and Business, Section 15(1) be amended by: 1.5.1 deleting the following at the end of subsection (o) “* Note: If Committee of the Whole is to be held it will commence at 11:00 am. and prior to reconvening for the purposes of public excluded items;” and 1.5.2 inserting the following item after the Media Question Period and renumbering Subsections (o) and (p) accordingly: “(o) Committee of the Whole (to occur only in the second meeting of the month)” Regular Council with Page 280 of 305 Committee of the Whole - 18 Item 8.3 Council Procedure Amendment Bylaw No. 4160, 2013 Page 2 of 2 1.6 That PART 4 - COUNCIL PROCEEDINGS, Points of Order, Section 19 be amended by: 1.6.1 deleting Subsection 2(c), and 1.6.2 deleting “; and” from the end of Subsection 2(b). 1.7 That PART 4 COUNCIL PROCEEDINGS, Adjournment, Section 27 be amended by deleting Subsections 1 and 2 and renumbering Subsections (3) and (4) accordingly. 1.8 That PART 5 – BYLAWS, Reading and Adopting Bylaws, Section 30, Subsection (4) be replaced with the following: “Unless otherwise specified by statute, each reading of a proposed bylaw must receive the affirmative vote of a majority of the Council members present.” 1.9 That PART 5 – BYLAWS, Bylaws must be Signed, Section 31, Subsection (c) be replaced with the following: “(c) the dates any applicable statutory requirements were fulfilled.” SECTION 2 – ADMINISTRATIVE PROVISIONS 2.1 If any section, subsection or clause of this Bylaw is for any reason held to be invalid by the decision of a court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this Bylaw. 2.2 This bylaw may not be amended or repealed and substituted unless Council first gives notice in accordance with Section 94 of the Community Charter. 2.3 This Bylaw may be cited as "COUNCIL PROCEDURE AMENDMENT BYLAW NO. 4160, 2013". READ a first time this day of , 2013. READ a second time this day of , 2013. READ a third time this day of , 2013. ADVERTISED this and day of , 2013. ADOPTED this day of , 2013. CERTIFIED A TRUE AND CORRECT COPY of Bylaw No. 4160 cited as "COUNCIL The Corporate Seal of THE CORPORATION OF THE PROCEDURE AMENDMENT BYLAW NO. 4160, CITY OF DAWSON CREEK was affixed in the 2013”. presence of: Brenda Ginter Mike Bernier - Mayor Director of Corporate Administration Brenda Ginter - Director of Corporate Administration Regular Council with Page 281 of 305 Committee of the Whole - 18 Item 9.1 Home> Exhibitions> Current Exhibition> Works on Paper 2013> "This Way!" by Mary Parslow Next Item Previous Item "This Way!" Item 40 of 67 in Works on Paper 2013 Title: This Way! Artist: Mary Parslow Size: 6.5" x 9" Price: CAN$350.00 Framed Awards: The FCA First Prize Award Regular Council with Page 282 of 305 Committee of the Whole - 18 Item 11.1 REPORT TO COUNCIL DATE: January 29, 2013 REPORT NO.: 13-018 SUBMITTED BY: Brenda Ginter FILE NO.:1-4-0 Director of Corporate Administration SUBJECT: Items to be Released from Previous In-Camera Minutes PURPOSE To recommend items for release to the public from previous In-Camera Council Meetings. ALTERNATIVES Council has the following alternatives: 1. Approve the items as recommended. 2. Approve only certain items or recommend other items. 3. Not approve any of the recommended items for release. RECOMMENDATION That Report No. 13-018 from the Director of Corporate Administration re: Items to be Released from Previous In-Camera Minutes be received; further, that Council approve the following item for release to the public: January 21, 2013 6.1 “MOVED/SECONDED, AND CARRIED, That the Letter from the South Peace Community Resources Society (January 10, 2013) re: Request for donation of former Windsor Hotel lots be received; further, that staff be directed to respond indicating the information that Council will require to be able to consider the request.” Respectfully submitted, APPROVED FOR AGENDA BY CAO ORIGINAL SIGNED BY Brenda Ginter Director of Corporate Administration Regular Council with Page 283 of 305 Committee of the Whole - 18 Item 12.1 CITY OF DAWSON CREEK STRATEGIC PRIORITIES CHART January 21, 2013 CORPORATE PRIORITIES (Council/CAO) 1. WATER SECURITY PUBLIC MEETINGS April Kevin/Shelly 2. FAIR SHARE FUNDING REPORT February Shelly 3. KPAC FUTURE EXPRESSIONS OF INTEREST June Brenda 4. CURBSIDE RECYCLING PUBLIC MEETINGS September Jim 5. TRANSPORTATION PLAN December Kevin OPERATIONAL STRATEGIES FINANCE SERVICES (Shelly) CAO (Jim ) 1. WATER SECURITY PUBLIC MEETINGS April 1. CURBSIDE RECYCLING PUBLIC MEETINGS September 2. FAIR SHARE FUNDING REPORT February 2. CKCA Completion August 3. Dev Cost Charges Implementation Plan September 3. Organizational Review September Capital Project Register Air Quality Risk Management Report Chamber of Commerce Meeting CORPORATE ADMIN (Brenda) INFRASTRUCTURE & DEVELOPMENT (Kevin) 1. KPAC EXPRESSIONS OF INTEREST June 1. WATER SECURITY PUBLIC MEETINGS April 2. Community Engagement Workshop June 2. TRANSPORTATION PLAN December 3. Maintenance Bylaw Review April 3. Sewer Development Cost Charges September By-Election Sewer System - Trunkline Policy Manual Retrofit Subdivision Bylaw Review FIRE DEPT (Shorty) COMMUNITY SERVICES (Barry) 1. Fire Hall Feasibility (ToR) October 1. Union Contract Negotiations May 2. Captain In Service Training June 2. Crescentview Park Plan September 3. Apparatus Replacement Program August 3. Cemetery Expansion November Mutual Aid Agreements Hockey Canada Special Events Residential Smoke Alarm Program Tree Removal Policy RCMP 1. Organized Crime - Drug Trafficking/Serious Crime 2. Traffic – Safety 3. Police Community Relations – Crime Reduction Regular Council with Page 284 of 305 Committee of the Whole - 18 Item 15.1 Security Classification/Designation Classification/désignation sécuritaire Royal Canadian Gendarmerie royale Mounted Police du Canada NCO i/c Dawson Creek Detachment Your File - Votre référence 1230 102 Ave. Dawson Creek, BC V1G 4V3 Our File - Notre référence 100-2 Mayor Mike Bernier City Of Dawson Creek Date P.O. Box. 150 Dawson Creek, BC February 14, 2013 V1G 4G4 RE: Dawson Creek RCMP Detachment Monthly Policing Report- January, 2013 Dear Mayor and Council, The following information is provided as an update on crime statistics and new developments within the detachment. Detachment News The detachment has recently taken some new staff on board and is in the process of hiring another full time Municipal employee following the departure of a longtime RCMP Municipal employee to pursue other opportunities within the city of Dawson Creek. The transfer season is approaching quickly and usually the RCMP posts transfers in and out of the detachment on April 1st every year. This year we are expecting fewer departures than usual from our seasoned members and may only be losing two or three as opposed to seven like last year. The members, who departed last year, have now been replaced by recruits who have for the most part completed their training and are fully fledged police officers. This is a nice position to be in since we have more stability, continuity and experience on board and a crew of great young members. As spring approaches, the Dawson Creek Detachment would like to take the opportunity to remind people that ATV theft season is just around the corner and to remind citizens in the area of the benefits of making sure that these expensive items are well secured. This is particularly true in rural areas, but also in the city. The benefits of a chain and lock cannot be understated. It is also important to keep these toys out of sight and if possible inside a locked building for maximum security. As of the writing of this document, the Dawson Creek RCMP is in the process of processing three suspects who were apprehended following a robbery with a firearm which took place at a local store. With the assistance of the Peace Region Police Dog Service, General Duty and the Serious Crime Section the suspects were in custody about twenty minutes after committing the RCMP GRC 2823 (2002-11) WPT 1 2 Regular Council with Page 285 of 305 Committee of the Whole - 18 Item 15.1 crime. A member of the public was instrumental in making an eyewitness identification of one suspect. Over the preceding year, we have had a number of robberies. In nearly all of these situations the offenders have been apprehended and charged. This is likely a reflection of the fact that controlled substances (drugs) continue to be a problem in the community. As our staffing situation with clerical staff returns to normal, we are again in a position to supply some of the statistics for the area in order to speak to crime trends. Assaults-14 reported with four unfounded and six resulting in charge Other crimes against persons:- 53 reported with 6 unfounded and 20 resulting in a charge. Break and enters - 7 reported with 3 cleared by charge Disturbances - 21 reported Mental Health Act incidents - 11 reported Motor Vehicle Accidents - 30 reported (thankfully none fatal) Unspecified assistance - 44 reported False Alarms - 33 reported Animal calls, suspicious occurrences, abandoned 911 – 59 reported Impaired Driving and 0ver .08 - 18 reported, 17 cleared by charge The above stats represent a fairly reasonable pace. It is for this reason that members were able to focus on impaired driving enforcement. The efforts of members of this detachment to apprehend impaired drivers have resulted in many of our members getting special recognition from “Alexa’s Team” for their successes in this area. The Dawson Creek RCMP will again be supporting Cops for Cancer with a formal dinner at the Events Center this year. This is an instrumental fund raiser for this important charity which culminates in a bicycle ride across the North of the Province by volunteer fundraisers. Please consider supporting this event later on in the summer. This Fiscal Year the Dawson Creek Detachment has committed to making an attempt to reduce property crime in the detachment area by 5%. This will be a challenge in a rapidly growing community and one of the ways in which this will be accomplished will be with some media releases aimed at educating the public in how to avoid becoming the victim of crime. There will be several other operational initiatives which will be undertaken in terms of enforcement. Prepared by, Milo Macdonald, S/Sgt. Detachment Commander Dawson Creek RCMP November 14th, 2012 RCMP GRC 2823 (2002-11) WPT 2 2 Regular Council with Page 286 of 305 Committee of the Whole - 18 Item 15.2 REPORT TO COMMITTEE OF THE WHOLE DATE: February 4, 2013 REPORT NO.: FD 13-01 SUBMITTED BY: Gordon (Shorty) Smith FILE NO.: 7-1-3 Fire Chief SUBJECT: Month end report for month of January, 2013 INSPECTIONS: Quarterly Total Year To Date In Service 62 62 Business License 10 10 TOTAL 72 72 INCIDENT REPORT: Current Month Total Year To Date Incidents 32 32 See appendix for types TRAINING REPORT: Current Month Total Hours Year To Date Career 318 318 Auxiliary 30 30 Total 348 348 Prevention & Education: 4 Station tours 1 Child car seat installation education Equipment: All equipment performed as expected Regular Council with Page 287 of 305 Committee of the Whole - 18 Item 15.2 Fire Department Committee of the Whole Page 2 of 2 Meetings: Senior staff meeting Performance reviews Officer meeting Cow meeting Strategic planning Grey Hill Consulting Re: Emergency plans Tembec pulp plant tour Labour/Management meeting Risk assessment meeting Other duties: . 21 Burn Permits/questions . 18 City building alarms were received and processed. . 36 Business building alarms were received and processed. . 3 Fire alarm systems were tested. . 4 General inquiries were dealt with. . 31 Pager and radio tests conducted with other departments. . 8 Public Works/Public Assist issues. . 31 Emergency dispatches of other fire departments. STRATEGIC PRIORITIES / OPERATIONAL STRATEGIES 1. Fire Hall Feasibility 2. Captain In Service Training 3. Apparatus Replacement Program 4. Mutual Aid Agreements 5. Residential Smoke Alarm Program Respectfully submitted, APPROVED FOR AGENDA BY CAO ORIGINAL SIGNED BY Gordon (Shorty) Smith B.F.S., C.F.O. Fire Chief Regular Council with Page 288 of 305 Committee of the Whole - 18 Item 15.2 Dawson Creek Fire Department 10101-12A Street BC V1G 3V7 PH : (250)782-9898 FAX : (250)784-3638 Totals by Type From Jan 1 13 to Jan 31 13 # of % of Staff Average Response Type Incidents total Hours Response Time Ambulance Assist 2 6.25 2 h 23 m 6.00 Alarms Ringing ( System 10 31.25 12 h 34 m 6.33 Fault or Maintenance Trip) False Alarm ( Criminal Intent) 1 3.13 0 h 3 m 0.17 False Alarm (Good Intent) 3 9.38 2 h 49 m 4.29 First Responder 1 3.13 4 h 12 m 4.00 Chimney Fire 1 3.13 5 h 0 m 4.50 Investigation (no fire) 3 9.38 9 h 12 m 5.00 Motor Vehicle Incident 9 28.13 21 h 12 m 7.29 Rescue & Safety 2 6.25 1 h 15 m 4.49 Total Number of Responses 32 58 h 40 m 5.62 Regular Council with Page 289 of 305 Committee of the Whole - 18 Item 15.3 REPORT TO COMMITTEE OF THE WHOLE DATE: February 13, 2013 FILE NO.: 1-4-0 SUBMITTED BY: Brenda Ginter Director of Corporate Administration FOR THE MONTH OF: January/February DEPARTMENTAL FOCUS The Department of Corporate Administration is responsible for preparation and preservation of the minutes, bylaws and other City records and ensures that all City actions such as Council proceedings, elections and land development are conducted in accordance with government legislation. The department is also responsible for community economic development and communication. REGULAR MONTHLY/SEASONAL ACTIVITIES COMPLETED THIS MONTH Annual Report Annual Report templates have been distributed to Department Heads with a request to complete their information - reporting on 2012 accomplishments and as well as goals set for 2013. Purchasing: Administration staff prepares, reviews, or advertises all public procurement documents issued by the City. The purchasing policy dictates which purchases are presented for Council approval or authorized at a staff level. Current tenders include: RFP 2013-00 – Transportation Master Plan – The request for proposals for this project has been issued with a deadline of March 1, 2013. RFP 2012-31 Triple Combination Pumper Fire Truck – The Fire Chief has examined the proposals received and provided Council with a recommendation for the preferred option earlier in today’s agenda. RFQ 2013-01 – Hanging Baskets. The annual hanging basket materials tender was awarded by staff according to the purchasing policy and was reported out in the Community Services Department Committee of the Whole Report. Travel The Executive Assistant coordinated travel arrangements for the Mayor, Council and staff for upcoming 2013 conferences including the Local Government Leadership Academy Forum, Liquefied Natural Gas International Conference, Chief Administrative Officer Forum, North Regular Council with Page 290 of 305 Committee of the Whole - 18 Item 15.3 Report re: Corporate Administration COW Report Page 2 of 3 Central Local Government Management Association Spring Conference, Federation of Canadian Municipalities Annual Convention, North Central Local Government Association Convention, Local Government Management Association Annual Meeting, Union of BC Municipalities Convention, Clerks & Corporate Officers Forum. Job Postings Corporate Admin staff assists with the human resource function of the organization, including support of recruitment and retention. Recent/current job postings, internal and external include: The City is pleased to welcome Sheri Bonnycastle to the organization as a Bylaw Enforcement Officer. Ms. Bonnycastle previously worked for the SPCA and started with the City February 12th. The Public Works Clerk has notified the City of her retirement, after twenty one years of service. A new clerk has been hired to allow sufficient training time for the new person prior to Elaine’s departure. Currently, the City is recruiting for Water & Waste Water Treatment staff, lifeguarding staff, casual clerical staff at the Aquatic Centre, Recreation Program Instructors, and an RCMP Clerical position. Students have started to inquire about summer work as well. Typically the summer labourer posting is advertised in late February or early March, once it is known how many staff plan to return under the automatic recall provision of the collective agreement. SPECIAL EVENTS/ACTIVITIES Recognition Awards Recognition ceremonies are still to be held to honour Mr. Bob Trail (Bob Trail Pilots Lounge) and Ms. Rosella Borek (Rosella Borek Road). The Pilots Lounge is nearing completion and the signage is still to be ordered. The Road dedication is postponed until the warmer weather arrives to clear up the icy road conditions. Training The Director and Deputy Director of Corporate Administration attended Incident Command System training (ICS 100) at the Fire Hall to learn the basics of Emergency Management as part of the City wide emergency response plan. BUDGET IMPLICATIONS N/A STRATEGIC PRIORITIES / OPERATIONAL STRATEGIES 1. KPAC Expressions of Interest The basic information regarding this strategic priority will be included in the City’s “Our Community” newsletter that is scheduled to be distributed during the last week of February. 2. Community Engagement Workshop A policy was presented to Council at today’s meeting regarding the Core Values for the Practice of Public Participation. If the policy is approved by Council, and the required 30 day review is completed, staff will make sure that the consultant that is hired to run the community engagement training aligns with the City’s new policy. Regular Council with Page 291 of 305 Committee of the Whole - 18 Item 15.3 Report re: Corporate Administration COW Report Page 3 of 3 3. Maintenance Bylaw Review Administration staff met with the Chief Bylaw Enforcement Officer to begin the review of the City’s Property Maintenance Bylaw. Biweekly meetings will continue until a draft is ready for legal review. 4. By-Election This strategic priority is on hold until the provincial election which is scheduled for May 14th. 5. Policy Manual Retrofit Staff is currently compiling background information for each policy and creating a database that details the history of each policy. The online policy manual will continue to be updated with amendments made by Council and as new policies are created. 6. Economic Development Task Force The Economic Development Task Force was informed of Council’s decision to deny funds for the purpose of hiring a consultant to develop an Economic Development Strategy. The Task Force will be meeting next on February 19th to discuss the future role of the committee. Respectfully submitted, APPROVED FOR AGENDA BY CAO ORIGINAL SIGNED BY Brenda Ginter Director of Corporate Administration Regular Council with Page 292 of 305 Committee of the Whole - 18 Item 15.4 REPORT TO COMMITTEE OF THE WHOLE DATE: February 8 2013 SUBMITTED BY: Janet Loiselle Deputy Chief Financial Officer FOR THE MONTH OF: January, 2012 DEPARTMENTAL FOCUS The Finance Department manages the financial transactions for the City of Dawson Creek. The Community Charter assigns statutory responsibility to the Chief Financial Officer for this function. We ensure that all monies are received, bills are paid and reporting requirements fulfilled. Our goal is to provide accurate and timely information so that Council can make informed decisions. REGULAR MONTHLY/SEASONAL ACTIVITIES COMPLETED THIS MONTH Highlights for the Month are as follows: Calvin Kruk Centre for the Arts* Total project expenditures to January 31, 2013 are $12,410,336 The project has been funded to January 31, 2013 as follows: o Provincial funding $6,399,442 o Donations $716,500 o Gaming $1,203,154 o Reserves/Taxation $1,518,199 o Borrowing $2,573,041 *Note: Amounts reported are as per the general ledger at January 31, 2013. Audit Yearend work in the Finance department continues with the audit scheduled for the first week in March. Budget The first budget meeting took place on February 4, 2013 with the second to follow on Monday, February 18, 2013 in the Council Chambers at 1:00 pm. The first Public Consultation meeting is scheduled for Tuesday, March 5, 2013 at KPAC at 7:00 pm. Regular Council with Page 293 of 305 Committee of the Whole - 18 Item 15.4 Report re: COW to January 31, 2013 Page 2 of 3 Carbon Tax Reporting The 2012 CARIP is in progress and will be sent to the Ministry by March 15, 2013. SPECIAL EVENTS/ACTIVITIES N/A PUBLIC SERVED Tax payers, water haulers, contractors and utility accounts. BUDGET IMPLICATIONS Budget to actual variance reports are provided to managers on a monthly basis for review. STRATEGIC PRIORITIES The 2012 Strategic Priorities for the Department of Financial Services are as follows: Long Term Financial Plan-Fair Share o Gagnon Consultation Strategic Consulting Inc., presented their independent analysis and review for Fair Share funding at the February 4, 2013 Council meeting. Council will receive and discuss the report at the February 18, 2013 Council meeting. Risk Management Policy o Sigma Risk Inc. will present their findings and recommendations in the final report on the City’s Risk Management Policy and Plan to Council on February 18, 2013. Purchasing Policy o Updating the purchasing manual is ongoing as time permits. User Fee Philosophy o Council received and approved the User Fee Philosophy Policy for recreation fees at the last Council meeting. Finance will be reviewing how this may apply to other City services at a later date. The 2013 Strategic Priorities for the Department of Financial Services are as follows: Water Security Public Meetings o The Director of Infrastructure and Sustainable Development will be reporting out on this initiative. Development Cost Charges Implementation Plan o Staff will meet to discuss an implementation plan after the yearend audit is complete. Regular Council with Page 294 of 305 Committee of the Whole - 18 Item 15.4 Report re: COW to January 31, 2013 Page 3 of 3 Capital Project Register o Work has not yet started. Respectfully submitted, APPROVED FOR AGENDA BY CAO ORIGINAL SIGNED BY Janet Loiselle Deputy Chief Financial Officer JL/cf Regular Council with Page 295 of 305 Committee of the Whole - 18 Item 15.5 REPORT TO COMMITTEE OF THE WHOLE DATE: February 5, 2013 SUBMITTED BY: Kevin Henderson Director of Infrastructure and Sustainable Development FOR THE MONTH OF: January 2013 DEPARTMENTAL FOCUS To support and monitor community development and regulatory services by providing the best possible service to our internal and external customers. REGULAR MONTHLY/SEASONAL ACTIVITIES COMPLETED THIS MONTH Business Licenses: NEW BUSINESS LICENSES ISSUED NEW OILFIELD RELATED TOTAL BUSINESS BUSINESSES LICENSES ISSUED MONTH NUMBER REVENUE MONTH 2012 2013 YEAR NUMBER JANUARY 12 $ 1,437.50 JANUARY 2 0 2012 1,245 FEBRUARY FEBRUARY 0 2011 1,239 MARCH MARCH 1 2010 1,205 APRIL APRIL 1 2009 1,101 MAY MAY 1 2008 1,067 JUNE JUNE 0 2007 1,050 JULY JULY 0 2006 1,001 AUGUST AUGUST 1 SEPTEMBER SEPTEMBER 0 OCTOBER OCTOBER 0 NOVEMBER NOVEMBER 1 DECEMBER DECEMBER 0 TOTAL 12 $ 1,437.50 TOTAL 7 0 Regular Council with Page 296 of 305 Committee of the Whole - 18 Item 15.5 Report re: Corporate Planning Committee of the Whole - January 2013 Building Department: BUILDING PERMITS ISSUED TO ADDRESS TYPE OF TOTAL PERMIT BUILDING VALUE Air Liquide Canada 2608 92 Ave manufacturing plant $2,425,000.00 $14,780.00 City of DC 10101 12A St firehall renovation $92,000.00 $782.00 DNA Properties Inc. 11608 8 St restaurant reno. $450,000.00 $2,930.00 Industrial Surplus Supplies 617 112 Ave cold storage/coverall $30,000.00 $880.00 TOTAL $ 2,997,000.00 $ 19,372.00 Permits: Total # 2013 2012 Tax Exempt JANUARY '13 1 $ 92,000.00 $ - Tax Exempt to date 1 $ 92,000.00 $ - Taxable JANUARY '13 3 $ 2,905,000.00 $ 1,546,051.00 Taxable to date 3 $ 2,905,000.00 $ 1,546,051.00 Total Issued JANUARY '13 4 $ 2,997,000.00 $ 1,546,051.00 Total Issued to date 4 $ 2,997,000.00 $ 1,546,051.00 PERMIT FEES FOR JANUARY ‘13 - $ 19,372.00 FEES TO DATE - $ 19,372.00 TOTAL NEW DWELLING UNITS - 0 SFD Duplex Triplex 4-plex Secondary Suites Corporate Planning/Development Services: Year to Date 2012 Totals 2011 Totals 2010 Totals Development Permits 7 31 25 22 Variance Permits 0 8 9 2 Temporary Industrial Use Permits 1 0 0 2 OCP/Zoning Amendments 1 12 6 21 Regular Council with Page 297 of 305 Committee of the Whole - 18 Item 15.5 Report re: Corporate Planning Committee of the Whole - January 2013 BYLAW COMPLIANCE NOTICES PARKING TICKETS ISSUED MONTH NUMBER MONTH NUMBER REVENUE JANUARY 19 JANUARY 3 $135.00 FEBRUARY FEBRUARY MARCH MARCH APRIL APRIL MAY MAY JUNE JUNE JULY JULY AUGUST AUGUST SEPTEMBER SEPTEMBER OCTOBER OCTOBER NOVEMBER NOVEMBER DECEMBER DECEMBER TOTAL 19 TOTAL 3 $135.00 TOTAL NOTICES ISSUED TOTAL PARKING TICKETS 2012 - 831 2012 - 211 $ 2,648.04 2011 - 803 2011 - 253 $ 2,925.00 2010 - 1,072 2010 - 241 $ 3,570.00 2009 - 1,023 2009 - 493 $ 6,365.00 MUNICIPAL TICKETS ISSUED YEAR TO DATE: 0 COMPLAINTS RECEIVED YEAR TO DATE: 0 Respectfully submitted, APPROVED FOR AGENDA BY CAO ORIGINAL SIGNED BY Kevin Henderson Director of Infrastructure & Sustainable Development KH/lh Regular Council with Page 298 of 305 Committee of the Whole - 18 Item 15.5 REPORT TO COMMITTEE OF THE WHOLE DATE: February 5, 2013 SUBMITTED BY: Shawn Dahlen Deputy Director of Infrastructure & Sustainable Development FOR THE MONTH OF: January 2013 DEPARTMENTAL FOCUS The Operations Department provides efficient and effective maintenance of all aspects of the City’s infrastructure by focusing resources where they are most needed. The department also plans new capital infrastructure improvements as required. REGULAR MONTHLY/SEASONAL ACTIVITIES COMPLETED THIS MONTH Engineering Monthly activities: - Performed BC One calls - Monitored air quality and maintained the air samplers (Partisols) - Created new service connection records - Updated GIS base mapping - Printed the annual map sets for distribution (11x17 and 24x36) - Completed 5 Year Capital Plan estimates - Began design for the 2013 Capital projects (108 Ave from 17 St to 13 St) - Completed water meter reader’s route books for Utility Dept. - Reviewed and worked with Urban Systems on developing a new Subdivision and Development Servicing Bylaw Regular Council with Page 299 of 305 Committee of the Whole - 18 Item 15.5 Report re: January 2013 Page 2 of 4 Public Works Public Works Maintenance Man Hours and Water Usage for January: G/L Description Man hours Water Used for: U.S. Gals Building/Yards/Grounds 4 Oval 22,428.56 Drainage 70 Steaming 6,808.15 Frozen services/Bleeder Valves 4 TOTAL 29,236.71 Hydrants 71 Safety 11 Sanding 445 Signs 42 Snow Plowing 1054 Snow Removal 300 Steaming 171 Storm Sewer/Manholes 47 Traffic Lights 8 Unscheduled Inspection 6 SCR Water 190 Water and Environmental Monthly activities: - Continued optimization of Water Treatment Plant – focused on chemical reduction - Performed maintenance at Hansen Reservoir – rebuilt air blower #1 and #2, now on line - Warmer temperature created substantial runoff, Jan 11-15, monitored lift station regularly for increased pumping - Performed regular pump maintenance on all raw water pumps (oil change, greasing, tighten packing) - Thawed, corrected water main freeze at Pouce Coupe control shed (conditions created by phase power loss) - Performed maintenance on Reclaim Water Re-use Facility wet well to reduce leakage - Water Treatment Plant system booster bearing replacement, off line 30 hours, WTP gravity bypass was opened to accommodate flow for these hours - Re-organized Main Lift station building interior Flows for January: Water Treatment Plant 214,125 m3 Water Sales Residential #1 1,642 m3 Water Sales Commercial #1 8,205 m3 Water Sales Residential #2 1,061 m3 Water Sales Commercial #2 5,795 m3 Water Sales Residential #3 1,531 m3 Regular Council with Page 300 of 305 Committee of the Whole - 18 Item 15.5 Report re: January 2013 Page 3 of 4 Water Sales Commercial #3 4,837 m3 Enermax – Rock Water 26,038 m3 All Clean 268 m3 Curtis York 14,023 m3 Shane Carlson – Raw Water 633 m3 Waste Water Outfall for January 176,302 m3 – Average Daily = 5,687 m3 Main Lift Station 178,584 m3 – Average Daily = 5,761 m3 Pouce Coupe 5,714 m3 Water use stats for January: Bulk water sales residential 4,234 m3 Bulk water sales commercial 59,802 m3 Waste Water Outfall 5,687 m3/day Reclaim Use 2,242 m3 Reclaim Truck Fill Pumps 4,276 m3 Watershed Steward 1. Monthly activities: Office research, reports and analysis: - Developed a work plan to enable transition of UNBC study data/results. - Developing Upper Kiskatinaw groundwater research plan for water security, and identifying new funding opportunities and partnerships with UNBC, BC_FLRNO and U of A. - Finalized study report to examine water quality issues in the South Brassey. - Undertook review of Watershed water quality (industrial waste sites) and mapping in the lower Kiskatinaw sub-basins above Arras - Provided updates and advisory support concerning current watershed flow conditions - Facilitated consultations between G. Wendling and Geological Survey of Canada to support research on aquifers. 2. Watershed Field Work and Community Outreach: - Preparing for Bearhole Lake maintenance/monitoring and coordination of supplementary hydrology research; - Continued support to UNBC Eco-Health and Watershed project. - Supported community awareness (in Hudson’s Hope). - Received information on the proposed OGC Cumulative Effects study. - Developed public water-awareness events for 2013 (with Melanie Turcotte and John Kalinczuk) - Provided support for the WSP nomination to Council of the Federation Water Excellence award - Developed a working relationship with Alberta Water and Waste Water Association. Regular Council with Page 301 of 305 Committee of the Whole - 18 Item 15.5 Report re: January 2013 Page 4 of 4 STRATEGIC PRIORITIES Water Security Public Meetings Staff has begun to organize a Water Security Public Meeting for the second week of April 24, 2013. The upper lobby of the Encana Events Center has been obtained for the venue. Transportation Plan The RFP for the Transportation Plan is currently being advertised. Sewer Development Cost Charges Consulting services to develop Sewer Development Cost Charges will be obtained upon budget approval. Sewer System – Trunkline Design of the Sewer Trunkline has been awarded to Kerrwood Leidal. Conceptual design is anticipated in the late spring of 2013. Subdivision Bylaw Review We are currently working with Urban Systems ltd. on an updated subdivision and development servicing bylaw document and hope to have a rough draft completed by the end of February. Respectfully submitted, APPROVED FOR AGENDA BY CAO ORIGINAL SIGNED BY Shawn Dahlen AScT. Deputy Director of Infrastructure & Sustainable Development SD/lh Regular Council with Page 302 of 305 Committee of the Whole - 18 Item 15.6 REPORT TO COMMITTEE OF THE WHOLE DATE: February 18, 2013 SUBMITTED BY: Barry Reynard Director of Community Services FOR THE MONTH OF: January 2013 DEPARTMENTAL FOCUS The aim of the Community Services Department is to contribute to the personal well being and quality of life for the citizens of Dawson Creek. REGULAR MONTHLY/SEASONAL ACTIVITIES COMPLETED THIS MONTH Memorial and Kin Arena Arena staff is starting to prepare for dry floor activities as well as impending Summer maintenance. Upcoming Events will be the Archery Shoot on March 30 & 31 in the Kin Arena and the Kiwanis Trade Show on April 19, 20 & 21 in the Memorial Arena. We are also currently working with a group to host their grad reunion at the Memorial Arena in July. New Spring Programs at the arenas will include lacrosse, inline hockey and, back by popular demand, a session for beginner and new participants to try roller derby. The Annual Ice User Meeting is scheduled for April 24th at 7:00 pm at the Kin Arena. The main topic of discussion will be a review of ice allocation for all groups and look at a potential new policy to address ice cancellations. Management will also use this meeting as an opportunity to introduce the new fees and charges policy. Kenn Borek Aquatic Centre January has been a busy month with pool strategic planning and preparation for Spring programming. During our Winter 2013 Programming, we have introduced ten week swim lessons, rather than the previous five week sessions. These ten week sessions will qualify for the Child Fitness Tax Credit, and have been well received by the patrons. In February we will have our Pool User Meeting for Spring and Summer water requests. Encana Event Centre Walking Track: It is that time of year when the weather is cold and icy and many participants want to walk inside. Our clientele varies from seniors to teenagers. Everybody usually has the same goal; to stay active and keep fit. The track is open Monday to Friday from 9:00am – 8:30pm. We recommend that customers call the pool to get the most updated schedule. Regular Council with Page 303 of 305 Committee of the Whole - 18 Item 15.6 Report re Community Services Report to Committee of the Whole Page 2 of 3 Recreation Department: For the weeks of January 28 to February 8, the department completed the graphic design, layout and production of the Spring 2013 Community Leisure Guide. The quarterly guide is expected to be distributed during the first week of March. Registration for all Spring Programs will begin on Friday, March 8. Regular Winter 2013 programs continued such as: Adult Co-ed and Ladies Volleyball leagues Zumbatomic® Recreational gymnastics Minor Volleyball Drop-in ladies hockey, co-ed soccer, and volleyball. Licensed Childcare was offered for the Non-Instructional Day. Eleven families accessed the program on January 18, 2013. Parks Department: The planning for 2013 annual beds and containers has been completed. Parks crews cleared snow from over 25 km of sidewalks and 4.5 km of trail. Regular pickup and disposal of waste from baskets in the downtown core. Bus shelters and benches were maintained and kept clear of snow and ice. Regular pickup of recyclable materials from six City facilities. Seven City facility parking lots and three downtown parking lots were plowed. City facility sidewalks were shovelled. Flooding of the outdoor rink at Canalta was started and is now useable. Staff performed 2 interments in January. The Tender for the supply and delivery of 195 hanging flower baskets was awarded to Willow Valley Landscape Centre Ltd. for the amount of $19,353.75. Willow Valley Landscape Centre Ltd. was awarded the contract for the previous year (2012) as well and met all expectations. We received the following three quotations; the total bid price includes all taxes, permits and fees: Grower/Supplier Quotation Dawson Recreation & Landscaping Ltd. $24,013.08 Dawn Leer Dawson Creek, B.C., Peace River Greenhouses Ltd. $21,621.60 Les N. Shurtliff Taylor, B.C., Willow Valley Landscape Centre Ltd. $19,353.75 Bev Rogerson Grande Prairie, AB., Regular Council with Page 304 of 305 Committee of the Whole - 18 Item 15.6 Report re Community Services Report to Committee of the Whole Page 3 of 3 SPECIAL EVENTS/ACTIVITIES On February 11, we had 822 citizens join us in celebrating the first BC Family Day at the Kenn Borek Aquatic Centre. Swimming and Climbing were FREE thanks to the Sponsorship of the Masonic Lodge, Success by Six, Children First and the City of Dawson Creek. The Annual Community Clean Up Campaign will continue to be a key focus for recreation staff in the coming months. Pitch In Week is April 18 - 25, 2013 and Clean Up day is tentatively scheduled for Saturday, May 11, 2013 with an alternate date of May 25, 2013. Planning meetings for the group committee will continue regularly over the next few months. Upcoming Events: Disco Theme Public Skate at the Memorial Arena on February 24th, 5:00 - 6:30 pm. The Dawson Creek Minor Hockey Association will be hosting the 2013 Bantam Rep Provincials at the Memorial Arena, March 17 – 21st. Special Skates at the Kin Arena during Spring Break: St. Patrick’s Day Themed Public Skate: Sunday, March 17, 5:00 – 6:30pm Race Car Derby & Public Skate: Monday, March 18, 11:45 – 1:00pm (kids), 1:15 – 2:30pm (teen) Drop-in Hockey: Tuesday, March 19, 11:45 – 1:00pm (kids), 1:15 – 2:30pm (teen) Family Fun Skate: Wednesday, March 20, 4:00 – 5:30pm Human Shuffle Board & Public Skate: Thursday, March 21, 11:45 – 1:00pm (kids) 1:15 – 2:30pm (teen) Family Fun Skate: Friday, March 22, 2:30 – 4:00pm PUBLIC SERVED FOR THE MONTH OF JANUARY: Kenn Borek Aquatic Centre – 8,584 participants. Walking track – 2,125 participants. Climbing Wall – 222 participants. STRATEGIC PRIORITIES/OPERATIONAL STRATEGIES 1. Union Contract Negotiations - May 2013 2. Crescent View Park Plan – September 2013 3. Cemetery Expansion – November 2013 Hockey Canada Special Events Tree Removal Policy Respectfully submitted, APPROVED FOR AGENDA BY CAO ORIGINAL SIGNED BY Barry Reynard Director of Community Services Regular Council with Page 305 of 305 Committee of the Whole - 18