Order in Council 904/1994

IMUVINCt UI• UHI IISH CC/LUMINA

ORDER OF THE LIEUTENANT GOVERNOR IN COUNCIL Order in Council No. 0904 , Approved and Ordered JUN 301994

Lieutenant Governor

Executive Council Chambers, Victoria

On the recommendation of the undersigned, the Lieutenant Governor, by and with the advice and consent of the Executive Council, orders that, pursuant to the report of the Minister of Transportation and Highways on the result of a public competition held under section 5 of the Ferry Act, the ferry licence granted to Western Pacific Marine Ltd. by order in council 578/84 is hereby renewed for a period ending March 31, 1997, subject to the attached terms and conditions, and that this licence is renewable to the holder for a further period of 3 years subject to the approval of the Lieutenant Governor in Council.

of Transportation and Highways Presiding Member of the Executive Council

part a for adnuntaraine purpote t only and it not part o/ the Order) Authority under which Order is made: Act and section Ferry Act R.S.B.C. 1979, c. 127, s. 3 Other (specify).- C 5-7z F

May 2, 1994 /94/13/pg Lieutenant-Governor

Minis r of Transportation and Highways

PROVINCE OF BRITISH COLUMBIA

ELIZABETH the SECOND, by the Grace of God, of the United Kingdom Canada and Her other Realms and Territories, Queen, Head of the Commonwealth, Defender of the Faith

To all whom these presents shall come, Greeting:

KNOW YE that WE, under and by virtue of the authority contained in the "Ferry Act" (R.S.B.C. 1979, chapter 127), and all other powers Us thereunto enabling, and so far as We lawfully can, but not further or otherwise, DO GIVE AND GRANT unto Western Pacific Marine Limited, Vancouver, British Columbia, the exclusive right to operate a ferry service on the Fraser River to service Barnston Island, as designated by Order-in-Council No. 904 approved June 30, 1994. TO HAVE AND TO HOLD the premises unto Western Pacific Marine Limited for and during the period ending on March 31, 1997, with the proviso that renewal of the same for a further period of three (3) years may be granted, subject to the provisions of the "Ferry Act" and regulations as made and amended from time to time pursuant thereto, and upon such conditions of satisfactory service and otherwise as Our Lieutenant-Governor in Council may from time to time prescribe. IN TESTIMONY WHEREOF, We have caused these, Our letters to be made Patent, and the Great Seal of OUR PROVINCE OF BRITISH COLUMBIA to be hereunto affixed: WITNESS, the Honourable David C. Lam, Lieutenant-Governor of Our Said Province, in Our City of Victoria this 30 h day of ruIJE , 1994, and in the FORTY-THIRD YEAR OF OUR REIGN.

By Command.

orney General GOVERNMENT OF THE PROVINCE OF BRITISH COLUMBIA

MINISTRY OF TRANSPORTATION AND HIGHWAYS

MARINE BRANCH

TERMS AND CONDITIONS BARNSTON ISLAND FERRY SERVICE

INTENT;

The intent is for the Licencee to supply a suitable tug with sufficient crew and auxiliary equipment, and provide a prompt and efficient ferry service to serve the needs of Barnston Island.

1. INTERPRETATION

In these Terms and Conditions:

"Barge" shall mean the barge "Barnston Island No. 3" supplied by the Ministry and operated and maintained by the Licencee.

"Emergency Trip" shall mean a round trip to transport passengers or vehicles for the purposes of life, health and safety, and authorized by a law enforcement authority or the Ministry.

"Ferry Area" shall mean the areas within the limits, described herein, in which the ferry service, known as "Barnston Island Ferry Service", shall operate.

"Government" shall mean the Government of British Columbia.

"Licence" shall mean the Licence granted under the Great Seal, and by order of the Lieutenant-Governor-in-Council in accordance with Section 5 of the Ferry Act.

"Licencee" shall mean the person or corporation to whom the Licence is awarded for the operation and maintenance of this ferry service.

"Marine Manager" shall mean the Marine Manager, Albion Operations, Ministry of Transportation and Highways, 23888 River Road, Albion, British Columbia, VOM 180.

1 "Minister" shall mean the Minister of Transportation and Highways for the Province of British Columbia or authorized representative.

"Ministry" shall mean the Ministry of Transportation and Highways for the Province of British Columbia.

"Vessel" shall mean the tug to be supplied, operated and maintained by the Licencee in accordance with these Terms and Conditions.

2. LOCATION OF THE FERRY AREA

The Ferry Area is the north and south shoreline of the Fraser River for one kilometre north of Barnston Island.

3. NAVIGATION

The Licencee will make full enquiry as to all conditions, in all seasons of the year, of navigation of the waters on which the vessel will ply and as to landings available as no claim on account of lack of knowledge, insufficient detail, or on any grounds whatsoever on the part of the Licencee, will be considered after the granting of the Licence.

4. VESSEL

(a) To be supplied by Licencee. The Vessel will be of a tug configuration and supplied, operated and maintained by the Licencee at their expense (except as provided in Clause 11 herein under "Subsidy").

(b) To conform with Canada Shipping Act and Regulations. The Vessel, together with all additional equipment used in connection with the ferry service and the operation of the said ferry service, shall in every respect comply with the provisions of the Canada Shipping Act and Regulations, and any amending Acts and Regulations.

(c) Equipment. The Vessel shall be of a suitable configuration and have sufficient horsepower to safely manoeuvre the Barge under all conditions.

2 (d) Maintenance. The Licencee, at their expense, shall maintain the Vessel in a clean, sanitary and seaworthy condition to the entire satisfaction of the Ministry and any authorized Steamship Inspector, strictly in accordance with the requirements of the Canada Shipping Act and Regulations, and any amending Acts and Regulations, and will otherwise maintain and promptly carry out all necessary renewals of and repairs to the Vessel to the entire satisfaction of the Ministry or authorized Steamship Inspector.

5. BARGE

The Ministry will provide to the Licencee the sole use of the Barge which is presently in service on the ferry route for the duration of the Licence. The Barge will be supplied by the Ministry in good condition and in accordance with standards of the Canada Shipping Act and Regulations.

On or before April 1, 1995, the Barge shall be drydocked by the Ministry for survey, cleaning and painting. At this time a joint survey shall be conducted by the Ministry and the Licencee to determine the condition of the Barge.

The Licencee will maintain and repair the Barge, including an annual painting of all presently painted areas above the waterline and of the same colours. All repairs are to be promptly carried out to the satisfaction of the Ministry.

The Barge will be supplied bare of all life saving devices and fire fighting equipment. The Licencee will be responsible to provide and maintain these items per requirements of the Canada Shipping Act and Regulations.

The lifesaving equipment shall be of the inflatable raft type and shall be capable of evacuating all passengers.

Any modifications to the Barge required by the Licencee to accommodate the connection of the Vessel to the Barge will be done by the Licencee at their expense and to the satisfaction of the Ministry.

6. VESSEL - SERVICE

(a) Commencement of Operation. The Licencee shall commence to supply and maintain the ferry service on the 1st day of April, 1994.

3 (b) Operating Schedule. The Licencee shall supply and maintain a vehicle and passenger ferry service within the limits of the Ferry Area operating daily, on a continuous demand basis, between the hours of 6:15 am and 11:55 pm on Mondays, Tuesdays, Wednesdays and Thursdays, and between the hours of 6:15 am and 12:55 pm on Fridays, Saturdays and Sundays.

(c) Special Trips. Special trips include ice clearing and positioning the Vessel for maintenance. The Licencee may voluntarily run such trips outside the hours of operation, provided that these trips shall be subject in every respect to the Terms and Conditions herein, and without any additional expense to the Government.

The Licencee will at the written or verbal request of the Ministry provide assistance to maintain an ice free channel and maintain the landings free of ice. Such are considered special trips.

A monthly invoice will be accepted by the Marine Manager for the number of special trip hours performed each month, at the rate of $120.00 per hour. A description of the service provided and the name of authorizing person and the times involved will be required.

(d) Emergency Trips. The Licencee will, upon the request of the Surrey Police, provincial ambulance service, or the Ministry, provide an emergency service outside normal daily operating hours of the ferry service. Such emergency trips will be provided within thirty minutes of request and shall be for the duration of the emergency. A monthly invoice will be accepted by the Marine Manager for emergency trips performed each month, at the rate of $50.00 per emergency round trip or $25 per one-way emergency trip. A description of the emergency service provided and the name of authorizing person and the times involved will be required by the Marine Manager.

(e) Interpretation of Satisfactory Ferry Service. The Ministry shall be sole judge as to what constitutes satisfactory ferry service and maintenance of the Vessel.

If the operation or maintenance or repair of the Vessel is not to the Ministry's satisfaction, or the Licencee does not comply with these Terms and Conditions, then after thirty days notice in writing to the Licencee from the Ministry, the Licence shall become null and void, and the Licencee shall have no claim of any kind whatsoever against the Government by reason of the cancellation of the Licence.

4 (f) Vessel not to be used for Other Purposes. The Licencee shall at no time use the Vessel and Barge or alternate method of transportation for any purpose whatsoever, except for the ferry service and that only between points situated within the Ferry Area, or except as may be warranted by emergency, such as the saving of life or relieving distress, or except with the prior approval of the Ministry.

(g) Ferry Service Interruptions. The Licencee must provide a replacement or substitute ferry service for all delays of interruptions of four hours or longer in the ferry service due to unforeseen circumstances involving the Vessel, Barge, landings or crew.

Delays or interruptions due to adverse weather, ice conditions or "Act of God", shall be kept to the minimum possible duration.

The Licencee must immediately notify the Ministry at the Burnaby Regional Office (660-9770) and Albion Operations (660-8770) of any ferry service interruptions in excess of thirty minutes and give an estimated time of ferry service resumption.

On notification by the Licencee, the Ministry will provide an alternate uni-float Barge on a temporary basis only.

7. BUSINESS CONTACTS

The Licencee will advise the Marine Manager of the normal business address and telephone number of the Licencee. In addition, the Licencee will supply the telephone number of at least two persons employed by the Licencee who can be reached at all times.

The Licencee will also provide the Surrey Police with a current telephone number and an alternate telephone number that can be used to initiate an "Emergency Trip". The Surrey Police will be advised by the Licencee in the event that these telephone numbers are changed.

8. TARIFF OF TOLLS OR RATES

No tolls or charges will be made to any passenger or vehicle or commodity except as may be directed by the Ministry.

5 9. VEHICLE WEIGHTS AND SIZES

The Licencee will ensure that the following signs are posted in a manner visible to ferry service users:

Port Kells posted sign: "Maximum ferry load 40,000 kgs. Loaded trucks with a GVW in excess of 30,000 kgs may be transported separately. Loaded trucks licenced with a GVW in excess of limit must produce a weight certificate showing the actual GVW which must be less than 40,000 kgs."

Barnston Island posted sign: "Maximum ferry load 40,000 kgs. Loaded trucks licenced with a GVW in excess of 30,000 kgs may be transported separately."

The Licencee will ensure that vehicles that do not conform to these signs are refused passage.

The Ministry reserves the right to change this vehicle loading regulation from time to time with notice to the Licencee.

10. VESSEL LANDINGS

The Ministry shall provide suitable vessel landings for the safe and efficient loading and discharging of passengers and vehicles on and off the Barge. On or before April 1, 1994, the Ministry and the Licencee shall conduct a survey of the docks and landings.

All deficiencies shall be noted at this time and it shall be thereafter the responsibility of the Licencec to ensure that the vessel landings are maintained in a safe manner. The Licencee shall perform all repairs to the satisfaction of the Ministry. Alternatively, the Licencee may, at their expense, make arrangements for the loading and unloading of the Barge at landings owned by other parties subject at all times to such arrangements allowing safe and efficient loading and unloading of the vessel to the satisfaction of the Ministry.

6 11. SUBSIDY

(a) The amount of subsidy the Government will pay to the Licencee, on condition that the Licencee supply, install, equip, operate and maintain the ferry service in accordance with these Terms and Conditions, is as follows: April 1, 1994 to March 31st, 1995 $42,333 per month. April 1, 1995 to March 31st, 1996 $43,666 per month. April 1, 1996 to March 31st, 1997 $45,250 per month.

(b) The subsidy will be payable monthly upon completion of each month of satisfactory service. Payment will be made on the 30th day of each month by electronic transfer of funds directly to the Licencee's bank account.

(c) If less than a full month of satisfactory ferry service is provided, then the applicable monthly subsidy in (a) above will be prorated accordingly.

12. LICENCE

(a) Duration of Licence. The Licence will be for a period of three years commencing the 1st of April, 1994 with the proviso that renewal of the Licence for a further period of not more than three years will be at the discretion of the Ministry.

At any time prior to the expiration of the aforesaid periods, the Licence may be terminated by the Ministry, by notice to Western Pacific Marine, #1 North Foot of Denman Street, Vancouver, British Columbia, V6G 2W9, not less than thirty days prior to the date on which the Ministry wishes, without cause, the service to cease.

(b) No Additional Licence. The operation, by the Federal or Provincial Governments or their agents, of vessels within the Ferry Area, whether or not a Tariff of Rates is charged, shall not be deemed to interfere with the Licence.

7 13. I NSURANCF

(a) The Licencee shall, during the term of the Licence, maintain a policy of comprehensive general liability insurance (or Protection and Indemnity insurance) with inclusive limits of not less than $5,000,000.00, providing indemnity for bodily injury and property damage arising from any one accident or occurrence. The insurance coverage shall apply to persons while being transported on, embarking on or debarking from the vessel, and to property of every kind and description while being transported on, loaded on or unloaded from the vessels. A deductible not exceeding $1,000.00 for all claims arising from a single event, will be allowed. Deductibles are payable by the Licencee.

(b) The Licencee shall maintain hull insurance in the amount of $100,000.00 covering the Barge. A deductible of $1,000.00 will be allowed. Deductibles are payable by the Licencee.

(c) The named Insured on the above insurance policies shall include "Her Majesty the Queen in right of the Province of British Columbia as represented by the Minister of Transportation and Highways and any employees, servants or agents of the Minister.

(d) Such insurance shall be carried in respect of the Vessel, the Barge, and any vessel which may be used in connection with the ferry service, and is to be in a form satisfactory to the Ministry. Certified copies of the policies are to be forwarded to the Manager, Insurance and Bonds, Ministry of Transportation and Highways, 940 Blanshard Street, Victoria, British Columbia, V8W 3E6, prior to commencement of the service.

(e) All insurance coverage shall be issued by an insurance carrier or agent licenced to do business in the Province of British Columbia.

14. NOTICES AND INSTRUCTIONS TO LICENCEE

Any notice, order, direction or other communication given to the Licencee under the provisions of the Licence, shall be sufficiently given if delivered to the Licencee personally, or to the Officer in charge of the Vessel at the time, or sent by registered mail to the Licencee, addressed to the Licencee's last known address or place of business. Any such notice or order, direction or communication shall be sufficient which expresses in general language and without detail the matters required or communicated, and no objection shall be taken to the form thereof.

8 15. TRAFFIC RECORDS. PAYROLLS, ACCOUNTS. ETC,

(a) The Licencee shall submit monthly, a report to the Ministry showing the number of trips made and passengers, vehicles and other traffic carried on the vessel. This report shall be completed in the manner directed by the Ministry.

(b) The Licencee shall submit to the Ministry, quarterly and annually, statements of profit and loss which shall show, in a manner satisfactory to the Ministry, the various elements of revenue and expense in the operation of the ferry service. If required, an appropriate form for this purpose will be supplied by the Ministry.

(c) All of the Licencee's relevant records of traffic, log, payrolls, books of accounts, invoices, receipts, statements, etc., shall, at all times, be open for inspection and extract by Ministry staff.

16. EMPLOYEES

(a) Conditions of Employment. The Licencee shall give preference to the employment of Canadian subjects in connection with the operating and maintenance of the Vessel and ferry service and shall pay such employees not less than the standard wage prevailing in the district for the type of service rendered, as determined by the Board of Industrial Relations of the Province of British Columbia.

(b) Oualifications. Members of the crew employed in the operation of the Vessel shall hold the requisite certificates for the duties to be performed by them.

(c) Conduct. The Licencee and employees shall, in the operation of the ferry service, treat the public with proper courtesy and consideration; and if any person employed in the operation of the ferry service be, in the opinion of the Ministry, intemperate, disorderly, incompetent, discourteous or otherwise undesirable, that employee shall, at the discretion of the Ministry, be forthwith discharged and the Licencee shall not employ any person who has been so discharged for any or all the said causes.

17. SPIRITUOUS LIQUORS

The Licencee shall not bring, nor permit to be brought, anywhere on the Vessel, landings or approaches thereto, so far as the Licencee can prevent the same, any spirituous or intoxicating liquor, save only when packed and secured in cases for shipment, nor shall the Licencee permit such liquor to be consumed on the Vessel or landings as far as the Licencee can prevent same.

9 18. SUITS OR LEGAL ACTIONS

The Licencee shall not bring any suit or action and shall not have any cause of action against the Minister or Ministry in respect of any matter arising under this Licence, but this shall not be construed to mean that the Licencee shall be deprived of his right to petition Her Majesty, under the provisions of the Statute in that behalf, for such redress as he may consider he is entitled to.

19. PAYMENT FOR ALL WAGES AND MATERIALS

The Licencee shall promptly pay for all wages and material used in connection with the operation, maintenance or repair of the Vessel and Barge or alternate method of transportation and, in the event of the failure by the person holding the Licence at any time so to do, the Ministry may, at his option, retain out of any moneys due or to become due under the Licence, such amount as the Ministry may deem sufficient to satisfy same, or pay the person holding the Licence the moneys due to him in instalments, giving him from time to time such sums as the Ministry may deem sufficient to meet such payments, or claims, and withholding the balance until same are satisfied, or may make all or any such payments, or satisfy such claim, rendering to the Licencee the payment due him after deducting the payments so made.

MINISTRY OF TRANSPORTATION AND HIGHWAYS MARINE BRANCH APRIL 1, 1994

10 APPENDIX I

A ferryman's shed situated on Barnston Island is available for the use of the Licencee.

This shed is available on lease from the British Columbia Buildings Corporation. The cost is to be negotiated directly by the Licencee with the British Columbia Buildings Corporation.