ATTACHMENT A Page 1 of 5

November 9, 2010

Mayor Peter Fassbender Chair, Mayors' Council on Regional Transportation c/o City of Langley 20399 Douglas Crescent Langley, BC V3A 4B3

Dear Chair Fassbender,

Re: 2011 Supplemental Plans

On behalf of the Board of Directors of the South Coast Transportation Authority (TransLink), I am forwarding the two enclosed Transportation and Financial Supplemental Plans for 2011 to 2013, and Outlooks for 2014 to 2020, both approved by the Board, to the Mayors' Council on Regional Transportation.

The purpose of presenting these supplemental plans is to provide the region's mayors with an opportunity to exercise their authority under the South Coast British Columbia Transportation Authority Act to approve one of the options to expand Metro 's transportation network and confirm it as TransLink's 'base plan' for the next three years. Alternately, the Mayors Council may choose to not approve either of them and maintain the program in the current base plan.

Both options include funding for the Evergreen SkyTrain Line connecting the Lougheed and town centres and for an extension of United Boulevard in Coquitlam as the first phase of the North Fraser Perimeter Road goods movement corridor from the Queensborough Bridge in to Highway #1. One option, 'Delivering the Evergreen Line and the North Fraser Perimeter Road,' is confined to the two highest priority projects. The other, 'Moving Forward,' proposes additional road and transit improvements across Metro Vancouver, notably in the South of Fraser and North Shore sub-regions.

All of these projects have been long-standing priorities and offer enormous benefits to the people of Metro Vancouver. Over the past two years TransLink's financial position has stabilized due to the $130 million supplement approved in 2009 and new sources of debt financing negotiated. Significant operational improvements have permitted TransLink to operate well within its budget in 2009 and is once again better than budget to date in 2010 - hence reserves have not been depleted to the extent forecasted in the 2009 supplement. Nearly all key ATTACHMENT A Page 2 of 5 2011 Supplemental Plans November 9, 2010 2 of 5

performance indicators are trending in the right direction and customer satisfaction is at all time highs.

In view of these improvements, our Board is recommending that the Mayors' Council approve the Moving Forward plan. This recommendation is based on the strategic value of these additional network improvements in ongoing efforts to achieve Metro Vancouver's economic, environmental and livability objectives. 'Delivering the Evergreen Line and North Fraser Perimeter Road' makes good on time-sensitive regional commitments for the Northeast Sector but (Moving Forward' would fund outstanding commitments in many more communities, and in doing so address the needs of more people. While the Mayors' Council successfully addressed the challenge to sustain current levels road and transit services with the 2010 Supplemental Plan a year ago, our region continues to grow and the pressures to move forward with more network improvements is no less time-sensitive.

The projects included in the Moving Forward plan are more than a simple wish list. They represent time-sensitive needs with solid business cases that were prioritized based on a rigorous evidence-based professional analysis which balanced the region's long-term goals with its short-term needs. Daily, we hear demands for additional transit in under-served areas or where daily demand is overloading the system.

The recommended option would add over 425,000 hours of annual transit service to bus routes. Based on current usage, that represents the capacity to provide over 23 million more transit trips per year. The South of Fraser would receive half of the additional bus service hours, which would make over 11 million more rides per year available in that area.

There will be other important projects that will justify future supplements as the region continues to grow. Most notably they include three key rapid transit studies, as well as other major road and transit improvements. TransLink, the province and the municipalities are working in partnership to develop the business cases for these.

With respect to the options before the Mayors' Council, the public consultation process, required in the development of TransLink's supplemental plans, revealed strong support for the suite of projects in the Moving Forward plan. This had a significant influence on the Board's decision to recommend it.

The SCBCTA Act directs TransLink to identify the amount and source of the funding needed to pay for its supplemental plans. Plans submitted to the Mayors' Council must also be provided to the Regional Transportation Commissioner, who evaluates their contribution to Metro Vancouver's strategic growth management strategy, the soundness of the financial assumptions used to determine the budgets over the following three years and the efficacy of the funding mechanism that must generate the additional revenue. ATTACHMENT A Page 3 of 5 2011 Supplemental Plans November 9, 2010 3 of 5

In order to meet the Commissioner's test of the funding mechanism, TransLink must propose using only those revenue sources available to it when the Board approves a supplemental plan. As well, the public's views, gathered through the consultation process, must be used to inform the Board's decision.

Funding is a critical issue, and the Board respects the sensitivity of the Mayors' Council on this matter. For these supplemental plans, TransLink consulted the public on the only two mechanisms available to it that could produce sufficient revenue: property taxes, which were not relied upon for the 2010 supplement, and a Transportation Improvement Fee, a charge on motor vehicles registered in Metro Vancouver that would vary according to their environmental impacts that could be measured by engine size, kilometres travelled or other metrics.

The Transportation Improvement Fee is permitted in the Act and TransLink consulted on it, in part at the request of the Mayors' Council due to its strong objection to the use of property taxes. After carefully considering all of the issues raised by the fee, the Board believes it is not a practical option at this time. Opposition to it is particularly strong.

Further, it is not within TransLink's means to implement the Transportation Improvement Fee in a timely, effective or efficient manner without provincial assistance. Without it, the fee would be more difficult and costly to collect, which would mean either lower revenue for transportation improvements or the need to charge a higher amount. But there is more than the collection mechanism to consider.

There are unique synergies that can be created between the fee and TransLink's 'smart card' transit fare payment technology, due to be on-line in early 2013, which have great potential to build public support for a vehicle charge and amplify its overall benefits beyond revenue generation.

As such, the Board believes that the Transportation Improvement Fee deserves the time needed to be examined and discussed in more detail. Done correctly, it can help manage demand on the transportation network and contribute to greenhouse gas reduction while producing revenue to support a better transportation network.

In that respect, the fee is in the same class as other potential revenue sources that could emerge as the region and the province move forward on the Memorandum of Understanding (MOU) signed in late September. The MOU acknowledges the need for new sources of transportation funding and the parties committed to dedicating the time needed to develop viable options in a process that 'puts everything on the table.'

However, for purposes of the proposed supplemental plans, the MOU process will not deliver funding alternatives in time to satisfy the Regional Transportation Commissioner or a deadline ATTACHMENT A 2011 Supplemental Plans Page 4 of 5 November 9, 2010 4 of 5

that exists to fulfill the region's standing commitment to the Evergreen SkyTrain Line and Phase One of the North Fraser Perimeter Road.

In preparing the supplemental plans, the Board has operated under the assumption that funding agreements on these two projects must be signed before the end of 2010 in order for the procurement process to go forward. Unless, particularly in the case of the Evergreen Line, this deadline can be relaxed, the Board, the Commissioner and the Mayors' Council must all complete their work on the plans before the end of December. However, we must advise that the public's sentiment, very evident in our consultation, is that we all 'need to get on with it.'

It is the Board's understanding that the federal program contributing to the Evergreen Line stipulates that the funds must be applied to the project by 2016. The province, as lead on the project, has commenced procurement with the issuance of a request for qualifications earlier this year and will issue a Request for Proposals to build the line in early 2011. This can't happen without a signed funding agreement in place and consequently, if TransLink is to be an equal partner in the project, the Board is compelled to resolve the matter of the region's contribution now by submitting the supplemental plans.

However, the Board does not believe that this necessarily positions the Mayors' Council, against its wishes, to accept an increase in property taxes as the funding source. As a result of TransLink's ongoing efficiency measures, it expects to have managed down its 2010 budget deficit by close to $40 million and the Board is prepared to dedicate those funds to cover commitments in the first year of the proposed 2011 to 2013 Moving Forward supplemental plan.

We submit that this will provide the time required for the region and the province, acting in good faith under the terms of the Memorandum of Understanding, to develop a new revenue alternative by 2012 that can support the remainder of the plan and replenish the reserve funds TransLink will use over the first year. To be clear, I must advise that in order to meet the Commissioner's test that the supplemental plan has the sure source of funding it needs, it would be necessary for the Mayors' Council to approve a property tax bylaw for 2012 that would have to be used if no alternative revenue source emerges.

The Board is recommending this course of action to the Mayors' Council as the most practical way to meet the imminent deadline for preserving the federal contributions now available to help us build the Evergreen Line and Phase One of the North Fraser Perimeter road.

Our Board has a responsibility to advance strategies and plans to achieve the Transport 2040 goals that have the region's endorsement. The improvements proposed in either of the supplemental plan options will help us accomplish these long-range goals. The plan we ATTACHMENT A Page 5 of 5 2011 Supplemental Plans November 9, 2010 5 of 5

recommend, Moving Forward, will respond positively to the public's current needs more broadly across Metro Vancouver.

Beyond this, there is an opportunity now to make important progress toward securing new sources of revenue that can enable the region to move forward more strategically and effectively toward a transportation network that is better managed and funded.

Yours truly,

•

Dale Parker Board Chair

Enclosures ATTACHMENT B Page 1 of 2 Mayors' Council on Regional Transportation

November 25} 2010

Honourable Shirley Bond Minister of Transportation and Infrastructure P.O. Box 9055 Stn Prav Govt Victoria, British Columbia V8W 9E2

Dear Minister Bond:

As you are aware the Council of Mayors and the Commissioner are currently reviewing two supplements designed to provide the regional share of funding for improvements to the regional transportation system including the Evergreen Line. The supplements were scheduled to be voted upon on December 9, 2010. Today I am writing to you to advise that the supplement process will be suspended until early spring in an effort to seek consensus among the members of the Council of Mayors. This position is supported by both TransLink Board and Management.

I am encouraged that the Mayors continue to support the building of the Evergreen Line as the number one priority, improving other transportation priorities and creating liveable cities in our region. I am also encouraged by the opportunity for positive collaboration between the Mayors and the Provincial Government in exploring innovative ways of funding transit through the principles contained in our new livable cities MOU.

However, the current situation is that the Mayors have divergent views on the two supplements and have expressed a desire to have more time to sit down and seriously discuss other options for funding not only for the Evergreen Line but a~so the other priorities in the Region that are critical to the objectives in the MOU.

I recognize that this decision creates uncertainty regarding the mechanism to provide the regional share of funding for the Evergreen Line; but I feel it will ensure we move ahead on the objectives of the MOU even at a time of transition. Honourable Shirley Bond ATTACHMENT B Page 2 of 2

I want to assure you that the Council of Mayors is prepared to work immediately with you and your staff to begin discussions under the MOU and work toward sustainable funding for not just the Evergreen Line, but also the transit needs of our growing region.

Yours Sincerely,

Peter Fassbender Mayors' Council Chair Mayor Peter Fassbender Office (604)514-2801 Cell (778) 549-2473

c. Peter Milburn, Deputy Minister, Ministry of Transportation and Infrastructure Mayors' Council Members Dale Parker, TransLink Board Chair Ian Jarvis, Chief Executive Officer, TransUnk ATTACHMENT C Page 1 of 5

The Best Place on Earth NEWS RELEASE For Immediate Release Office of the Premier 201 OPREMO 169-00 1129 Mayors' Council on Regional Transportation Sept. 23, 2010

PROVINCE, MAYORS SIGN REGIONAL TRANSPORTATION AGREEMENT

COQUITLAM The Province of British Columbia and the Mayors' Council on Regional Transportation have signed a livable cities agreement that will provide a long-term strategy to create a sustainable transportation network in Metro Vancouver.

"Today we are reaffirming our commitment to the people of Metro Vancouver that their mayors and the provincial govermnent will collaborate closely to keep people, goods and services moving quickly and efficiently, with minimal impact on our environment," said Premier Gordon Campbell. "We've done a great job working together on key infrastructure priorities in the region, such as the and other transportation expansions. This agreement builds on that success and will help us move forward with other projects like the Evergreen Line."

The Livable Cities Memorandum of Understanding (MOU) formalizes and builds on the existing collaborative relationship between the Province and the Mayors' Council on transportation matters and recognizes the importance of creating a sustainable and affordable network in the region.

The Province and Mayors' Council commit to the development of a long term, sustainable funding strategy that makes the most ofTransLink's available revenue sources as well as finding innovative ways to generate revenue, such as using the increase in property values along rapid transit corridors to support future projects.

"Together we're creating a transportation system that encourages people to take transit, rather than drive their cars, leading to less traffic congestion and fewer greenhouse gas emissions," said Transportation and Infrastructure Minister Shirley Bond. "An efficient, affordable and reliable public transportation system is an essential component of a livable region."

The MOU also supports Metro Vancouver's Livable Region Strategic Plan, helping to maintain regional livability and protect the environment as the region grows. In 2001, the population of the Vancouver region reached two million and, at current growth rates, is expected to reach 2.7 million by 2021.

"This agreement forms the foundation of a new dialogue to sustainably plan, fund, and deliver a world-class transportation system in the region," said Peter Fassbender, mayor of the City of Langley and chair of the Mayors' Council on Regional Transportation. "A strong working relationship between the Province and all the municipalities in the region is critical to achieving the transportation system we need in order to grow and prosper sustainably."

-more- ATTACHMENT C - 2 - Page 2 of 5

The MOU will also help support the region and TransLink to expand services and infrastructure to meet Provincial Transit Plan goals, a strategy to double transit ridership and reduce greenhouse gas emissions from transportation sources by 4.7 million tonnes, all by 2020.

Through the Provincial Transit Plan, the Province has committed more than $700 million to transit in Metro Vancouver since 2008 and will invest $4.2 billion by 2020.

One of the projects funded through the Provincial Transit Plan is the Evergreen Line - a major transit project currently underway in Metro Vancouver. The $1.4-billion rapid transit line will seamlessly connect commuters to the current SkyTrain network, as well as integrate with regional bus service and . Construction on the Evergreen Line is on track to begin in early 2011 and finish by the end of2014.

The Mayors' Council on Regional Transportation appoints the Board of Directors for TransLink and the Commissioner. It approves plans prepared by TransLink, including the transportation plan, regional funding and borrowing limits. The council represents 21 municipalities and the Tsawwassen First Nation.

-30-

A backgrounder follows.

Media Contacts: Dale Steeves Shafiq Jamal Director of Communications Mayors' Council on Regional Office of the Premier Transportation 250 361-7783 Hoggan & Associates 604 742-4269 Jeff Knight Ministry of Transportation and Infrastructure 250 356-7707

-more- - 3 - ATTACHMENT C Page 3 of 5 BACKGROUNDER For Immediate Release Office of the Premier 2010PFlE~0169-001129 ~ayors' Council on Regional Transportation Sept. 23, 2010

MEMORANDUM OF UNDERSTANDING BEWEEN THE PROVINCE AND THE MAYORS' COUNCIL ON REGIONAL TRANSPORTATION

A. The Province of British Columbia and municipal governments in the ~etro Vancouver area are committed to developing a long term strategy for promoting "Livable Cities" in the region that are designed for sustainable growth and British Columbians' needs in the 21 st Century; And B. "Livable Cities" will require new and innovative policies that integrate a wide variety of federal, provincial, regional and local initiatives and policies that ensure the achievement of this overall goal; And C. Efficient, affordable, carbon smart transportation infrastructure and services are an integral part of a "livable city" strategy that aspires to help plan for as well as shape population growth in new ways that create cleaner, safer, healthier communities and the efficient movement of people, goods and services; And D. The corhbined resources of senior governments together with that of~etro Vancouver's 21 municipalities are required to sustain and support the development of a transportation system that efficiently integrates the movement of people and goods across the entire region. This will be done at the lowest cost possible for taxpayers within a comprehensive network that will:

• Support environmentally sustainable cities with healthy populations and growing economies. • Provide a gateway for international commerce for Canada. • Foster lower carbon emissions, better air quality, reduced traffic congestion, and more convenient travel options. • Encourage relatively lower housing costs, more affordable housing, and new municipal infrastructure and servic.es; And E. The Province, the ~ayors' Council, and TransLink wish to work together to achieve the following goals represented in the transportation plans of the Province and TransLink, and the goals of the proposed ~etro Vancouver "Livable Region Strategy" all of which have been broadly embraced by the public, stakeholders, and governments: • Provide efficient, reliable, carbon reduced transit that contributes to the majority of trips made by public transit, walking, and biking; all allowing and encouraging people to reduce dependence on their vehicles, especially single occupancy trips, and offering healthy lifestyle choices. • Aggressively reduce GHG emissions and air contaminants from transportation to assist the province and municipalities in meeting their GHG and clean air targets.

-more- ATTACHMENT C - 4 - Page 4 of 5

• Support population and employment density near transit hubs and along transit corridors, so the majority of jobs and housing are located along a frequent transit network, a network that needs to expand to accommodate existing needs/priorities and to shape sustainable future growth. • Promote vibrant neighbourhoods and communities that are more responsive to modern needs, including new demands for affordable housing, appropriate health services, as well as "green" residential and commercial development. • Provide safe, secure, accessible and affordable travel for the region's population; • Facilitate economic growth, productivity gains, and international trade through the efficient and effective management of the transportation network. • Ensure that operating costs will be controlled by making use of existing administration and/or infrastructure systems in support of new revenue sources whenever possible rather than developing new ones; And F. TransLink requires access to sufficient and stable long-term funding, for both capital and operating requirements, to help achieve these goals and change behaviours which will help shape transportation choices in the future.

NOW THEREFORE, the parties set out in this memorandum agree:

1. To work together in a cooperative and collaborative way to address the goals of "Livable Cities", including the development of a long term, sustainable funding strategy that maximizes TransLink's available revenue sources and invites open and ongoing dialogue between the parties on potential new funding solutions.

2. That transportation planning is a key component of successful livable cities and should include principles as listed below:

a. Investments in transit should be appropriate to support higher population densities that are designed to best utilize land at the lowest cost possible for taxpayers and the environment. b. Transportation planning should be an integral component of community planning. c. Communities should be developed to encourage alternatives to vehicle traffic, with direct emphasis on pedestrian, cycling and transit. d. Transit investments must be justified through a comprehensive business case which considers all factors including; ridership, expenses and revenue sources to name a few. e. Transportation Demand Management principles should be developed that will assist in the achievement of the overall transportation goals. f. Transit and road and bridge improvements need to be coordinated and implemented in a timely and expedited fashion to support the success ofTransLink's 2040, the Provincial Transit Pacific Gateway and other Provincial plans that will help stimulate growth and job creation.

3. To recognize that any strategy for livable cities with a viable long-term transportation plan will anticipate open dialogue on transportation funding sources that may include, but not be limited to, the items listed below:

-more- ATTACHMENT C - 5 - Page 5 of 5

a. Funding sources included in current and future legislative authority. b. Reallocation of existing revenue sources. c. Potential new and innovative revenue sources that will shape transportation choices in favour of transit, cycling and walking, as well as greenhouse gas emission reductions. d. A means of capturing some of the increase in land value created by the provision of rapid transit along the region's strategic corridors. e. Other revenue generating activities that take advantage of the market created by transit users. f Efficient and effective use of "Smart Card" technology to increase ridership beyond peak periods, improve efficiencies (reduce operating costs and increase the productivity of the transit fleets), reduce fare evasion and in generai, generate greater fare revenue (user pay).

4. To recognize that BC has a significant comparative advantage in generating clean and green renewable electricity that could be used to reduce the carbon footprint of the transportation sector in the region.

5. To continue to engage the Federal Government in ongoing discussions on funding support, including future capital contributions for new transit and transportation infrastructure and/or the potential reallocation of existing funding (i.e. federal fuel tax).

6. To review existing regulatory and policy frameworks to enhance the achievement of provincial, regional or local transportation goals as listed below:

a. Joint review of planning and engineering of municipal and provincial arterial roads to ensure safety and efficiency in operations. b. Review of procurement practices related to transit and road and bridge projects to ensure transparency, value and appropriate structure. c. Review of contracting process to ensure innovation in contracting methods including components of financing, design and standardized contract language. d. Efficient methods of obtaining appropriate zoning on publicly owned holdings to maximize benefits and minimize taxpayer or user costs.

7. To review best practices from other jurisdictions and seek expert advice to help develop a "Made in BC" solution.

8. To leverage existing processes including the Steering Committee, Joint Technical Committee and any other appropriate new mechanisms to ensure follow-up to this MOU.

9. To consult with a wide and diverse list of public and private stakeholders in order to ensure maximum acceptance of the outcome of the deliberations undertaken by the parties under this MOU. -30-

For more information on government services or to subscribe to the Province's news feeds using RSS, visit the Province's website at ...:...:....:..~~:....:.....:...;o.:...:::...:..=. ATTACHMENT 0 Page 1 of 5

Moving Forward: Improving Metro Vancouver's Transportation Network

2011 Supplement Backgrounder

November, 2010

The 2011 {(Moving Forward" Supplement proposes the following improvements and enhancements in our region's transportation network, moving our region significantly towards our long-term goals of: • aggressively reducing greenhouse gas emissions .. increasing the number of trips made on transit, by cycling and by walking • encouraging the development of transit where people work and live • reducing road congestion and supporting the efficient movement of people and goods

RAPIE> TRANSIT SERVICE IMPRC>VEMENTS RC>AE>S &. CVCLING

Evergreen Line Program • B­ • North Fraser Perimeter • Connects Coquitlam & Line Road: Phase I (United Vancouver via & • Highway 1 Bus Rapid Boulevard Extension) : 11 km line,S stations, Transit • Retain Funding for Major & 28 new SkyTrain vehicles • White Rock to Langley Road Network improvement • Construction begins in 2011, Bus Service projects ( Minor Capital completion in 2014 • Additional bus service Program) at $20M/year • Community and network hours to increase .. Preserve funding for Bike integration and wayfinding frequency (e.g. on Capital Program at upgrades SeaBus) and address $6M/year • Commercial-Broadway Station overcrowding • More bus service hours Station Upgrade Projects to accommodate • Main Street Station population growth • • Increased bus service • hours for U-Pass B.C. • routes .. SeaBus Terminal

The projects included represent time-sensitive needs with strong business cases. They have been prioritized based on a rigorous evidence-based professional analysis, balancing the region's long-term goals with its short-term needs. The priorities contained in this plan have garnered strong support: more than 80 per cent of public respondents indicated that these investments are important for the region.

Regional and sub-regional improvements There are substantial improvements here for all major sub-regions of Metro Vancouver, including the Northeast Sector, South of Fraser, North Shore, Richmond, Vancouver, Burnaby and New Westminster. ATTACHMENT 0 Page 2 of 5 Moving Forward: Supplement Plan Backgrounder / 2

The region-wide improvements and upgrades outlined in this plan will translate into: • A nine per cent or 425,OOO-hour annual bus service increase by 2013, with approximately half of those hours bound for South of Fraser • An eight per cent increase in total transit service hours by 2015 resulting from 138,000 of new annual rapid transit hours • An eight per cent increase in transit boardings by 2015, equal to 30 million rides per year • A drop in vehicle kilometres travelled per capita by 2015; a reversal of historic trends

Project-specific information Evergreen Line Rapid Transit Project The Evergreen Line rapid transit line will include: • Construction of 11 kilometres of new SkyTrain guideway and supporting systems from Burnaby to Coquitlam via Port Moody • Five new rapid transit stations and modification of the existing Lougheed Station • Twenty-eight additional SkyTrain vehicles • Rail vehicle storage facility, bus integration facilities • 13 minute travel time from Coquitlam Centre to Lougheed Town Centre • 40 minute travel time from Coquitlam to Vancouver Downtown - more than 20 minutes faster than average driving times • Approximately 9 million annual boardings in 2015, growing to 18 million by 2020 ATTACHMENT 0 Page 3 of 5 Moving Forward: Supplement Plan Backgrounder /3

King George Boulevard B-Line th Beginning in 2012, a new limited stop B-Line service along 104 Avenue and King George Boulevard between Guildford and via Surrey Central Station will bring an additional 65,000 annual service hours to the region. The line will feature service every 7 to 8 minutes between Guildford Exc~ange and with service every 15 minutes between Newton Exchange and White Rock Centre. Customers can connect from Langley to White Rock in 48 minutes -14 minutes faster than the current travel times - and boardings in the corridor are expected to grow by 5 million annually by 2013.

Highway 1 Bus Rapid Transit TransLink will invest 71,000 annual service hours commencing in 2013 (in coordination with the Port Mann Bridge project) for Bus Rapid Transit (BRT) on the Highway 1 corridor connecting the South of Fraser region with the Evergreen Line in the Northeast Sector. This service will establish a high-quality commuter service with highway coaches and peak period frequencies of 10 minutes following dedicated lanes with bus queue jumpers. Customers will be able to travel from Langley to Lougheed Station in 20 minutes (current travel times are 62 minutes).

White Rock to Langley Bus Service 24,000 annual service hours to support the introduction of local stop service every 30 minutes on 24th Avenue and 200th Street between White Rock Centre and Langley/Willowbrook via Campbell Heights, starting in 2012. This new service optimizes the use of the existing fleet and creates a much-needed connection between two regional nodes.

Examples of Additional Transit Service Improvements While detailed analysis needs to be conducted, below are examples of additional transit service improvements that could be implemented if the supplement is passed. • North Shore: SeaBus upgraded to 15 minute frequency all day every day Increased service from Marine Drive to Downtown Increased service along Lonsdale Avenue • South of Fraser (in addition to the projects outlined above) Increased service along Fraser Highway th Increased service along 104 Avenue • Richmond: Improved service on key corridors including Cambie Avenue, in Queensborough and possibly other areas • Vancouver Improved service on key corridors including 4th Avenue, 41st Avenue and 49th Avenue and possibly others • Burnaby, Port Moody and Coquitlam Increased capacity and frequency from Evergreen Line New direct, high capacity route from to SFU Improved service on core routes including 160 and along Willingdon Avenue Improved service in other corridors including Pinetree Way • Maple Ridge and Pitt Meadows Increased capacity and frequency on core routes including 701 to approximately 10 minute service ATTACHMENT 0 Page 4 of 5 Moving Forward: Supplement Plan Backgrounder /4

North Fraser Perimeter Road The North Fraser Perimeter Road Phase I (United Boulevard Extension) Project will connect Brunette Avenue with United Boulevard and relieve congestion, benefitting the area by: • improving connectivity, efficiency, reliability and safety of the regional trucking network • relocating trucks and regional vehicular traffic from residential areas in New Westminster to industrial areas • promoting cycling by connecting two previously disconnected bikeways with new bikeway segments

Major Road Network Minor Capital Program The $20 million in annual funding will help TransLink: • improve road capacity, encourage economic growth and efficient goods movement and reduce emissions caused by congestion • enhance intersections, improving the safety of vehicles, bicycles and pedestrians • introduce bicycle lanes to roadways to encourage cycling • create new pedestrian facilities to encourage more trips by walking • improve transit facilities to encourage transit use • rehabilitate structures (such as bridges and retaining walls) to restore state of good repair

Bike Capital Program Through the program, TransLink will double its investment to $6 million annually to improve the integration of transit and cycling by: • investing in new bike route construction and upgrades • introducing bicycle traffic signals • improving bicycle access to bridges • investing in bicycle parking at transit stations, park-and-ride lots and transit nodes • improving other infrastructure that promotes integrating transit and bicycles

Funding The 2011 Supplement Plan leverages funds already committed to regional transportation improvements by the provincial and federal government, and from an anticipated increase in fare revenue due to increased ridership.

regional source 32%

senior government fare revenue 53% from increased ridership 15%

The funding source of TransLink's 32 per cent commitment will be determined through discussions between the municipalities of Metro Vancouver and the provincial government as agreed to in the September 2010 Memorandum of Understanding. In the interim, TransLink has committed to finance the supplemental plan until 2012, which will allow the parties to determine an agreeable source of funding for the supplemental plan. ATTACHMENT 0 Page 5 of 5 Moving Forward: Supplement Plan Backgrounder Is

If an alternative funding source cannot be confirmed before 2012, this plan would be funded through an increase in property tax starting in 2012. Tax on residential properties would increase $8.91 per $100,000 of assessed value for an average household total of approximately $61.65 per year, while tax on commercial properties would increase between $43.2 and $59.5 per $100,000 of assessed value, depending on building classification. Together, residential and commercial property tax increases will generate $75.8 million annually.

For more information, please visit www.bepartoftheplan.ca. Section E 5.2 ATTACHMENT E metrovancouver Page 1 of 4

4330 Kingsway, Burnaby, BC, Canada V5H 4G8 604-432-6200 www.metrovancouver.org

GVRD Board Meeting Date: November 26, 2010

To: Board of Directors

From: Jim Rusnak, Chief Financial Officer, Metro Vancouver

Date: November 19, 2010

Subject: Comments on TransLink's 2011 Supplemental Plans

Recommendation:

That the Board advise the Mayors' Council on Regional Transportation to:

a) Reject the "Moving Forward" Supplemental Plan and "Delivering Evergreen Line and North Fraser Perimeter Road" Supplemental Plan on the basis that both plans are dependent on new property tax increases only; and,

b) Direct the TransLink Board to prepare a new Supplemental Plan that will be funded appropriately by motor vehicle fees or other feasible transportation user and transportation emissions-based sources.

1. PURPOSE

This report provides comments and recommendations on TransLink's 2011 Supplemental Plans. The report was prepared in response to a letter dated November 12, 2010 sent to the Chair of Metro Vancouver from the Chair of the Mayors' Council on Regional Transportation formally requesting Metro Vancouver for further comments on the Supplemental Plans prior to December 9, 2010.

2. CONTEXT

The 2011 Supplemental Plans On November 8, 2010, the TransLink Board approved two Supplemental Plans covering the 2011-2013 period, with an outlook to 2020. Both plans are to be funded with new property tax increases only. The Regional Transportation Commissioner has within 30 days upon receipt of the plans to provide comments to the TransLink Board and Mayors' Council. The Mayors' Council has 90 days from receipt of the plans to pass a resolution to approve or reject them.

It is the desire of TransLink to have a Supplemental Plan accepted by the Mayors' Council in December because TransLink is operating under the key assumption that a funding agreement must be signed with the Province and Federal Government on the Evergreen Line program by the end of 2010, and similarly with the Federal Government on the North Fraser Perimeter Road Phase 1 (United Boulevard Extension) project in order for procurement to proceed.

RD-147 ATTACHMENT E

Comments on TransLink's 2011 Supplemental Plans Page 2 of 4 GVRD Board Meeting Date: November 26, 2010

Plan Elements On a project basis, both Supplemental Plans generally demonstrate support for the goals and strategies of the new Regional Growth Strategy and regional greenhouse gas reduction targets. The new Regional Growth Strategy identifies the Evergreen Line as the first priority for rapid transit expansion in the region. The NFPR Phase 1 project is consistent with the goal to support the safe and efficient movement of vehicles for passenger, goods, and services, and the project will improve traffic flow on United Boulevard to Brunette Avenue, which may lead to reductions in emissions.

The "Moving Forward" Supplemental Plan contains additional projects/programs, which are largely consistent with the goal to encourage more transit, cycling, and walking trips. It includes proposals to upgrade select rapid transit stations to be able to accommodate new riders (e.g., passengers from the Evergreen Line) and to upgrade facilities to accessibility standards. The most critical elements are the introduction of B-Line service on King George Boulevard connecting Surrey Metro Centre and Semiahmoo Municipal Town Centre, a local bus connecting Semiahmoo Municipal Town Centre to Langley City, and Bus Rapid Transit on Highway 1 connecting Langley Township to Surrey Metro Centre and to Lougheed Municipal Town Centre. These three bus-based projects are the building blocks for a more robust transit system serving the rapidly growing communities south of the Fraser. The Supplemental Plan also contains broad-based funding envelopes for bus service enhancements on other corridors in the region, including those expecting to experience increased ridership demand as the U-Pass BC program gets adopted by post-secondary institutions around the region.

Consultation with Metro Vancouver On October 8, 2010, the Regional Planning Committee received a presentation from TransLink staff outlining the analysis and options being considered in a Supplemental Plan. Metro Vancouver staff submitted an on-table report dated October 7, 2010, and titled "Initial Comments on TransLink's Potential 2011 Supplemental Plan Elements". The report was deferred to the November 5, 2010 committee meeting, when it was subsequently received for information. On October 14, 2010, the Finance Committee considered the same on­ table staff report. The committee passed the following resolution:

That the Board recommend that: a) the Mayors' Council on Regional Transportation reject any supplement that relies on property taxes as a source of additional revenue as it may jeopardize Metro Vancouver's ability to support other necessary regional projects in the future; b) and that the Mayors' Council and Municipal Finance Authority reject any future TransLink borrowing that serves to increase the joint and several liability of Metro Vancouver, or its members.

On October 29, 2010, the Metro Vancouver Board received a presentation from TransLink and approved the recommendation noted above.

Because the two Supplemental Plans contain provisions to increase TransLink's debt cap from the current $2.8 billion to $3.8 billion, the Mayors' Council must consult with the Metro Vancouver Board prior to approving a Supplemental Plan pursuant to Section 31 (1.1) of the SCBCTA Act. On November 12, 2010, the chair of the Mayors' Council submitted a letter to the chair of the Metro Vancouver Board seeking any further comments from Metro Vancouver on this matter (Attachment 1).

RD-148 ATTACHMENT E Page 3 of 4 Comments on TransLink's 2011 Supplemental Plans GVRD Board Meeting Date: November 26,2010

Established Funding Sources TransLink has a number of taxation and user-based revenue sources to fund the development and management of the regional transportation system. The following taxation sources are at their legislative maximums: fuel tax, parking sales tax, hydro levy, and replacement tax. TransLink is enabled under its legislation to assess a "benefiting area tax", and has committed to evaluating it as part of the preparation of a Sustainable Funding Strategy. The remaining taxation source is the property tax, which grows at 3 percent annually as allowed under the legislation. TransLink is seeking to fund the Supplemental Plans with new property tax increases beyond the current rates. The last significant increase was approved in 2004 by Metro Vancouver.

T a bl e 1 F mancla. Ieompanson 0 f th e 2011 S upp.emen t aI PI ans "Moving Forward" "Delivering Evergreen Line and Supplemental Plan North Fraser Perimeter Road" Supplemental Plan New Property Tax Revenues +$75.8 million/year +$44.7 million/year Beginning in 2012 Property Tax Residential: 54% Residential: 54% Revenue Split Business: 39% Business: 39% Other Property Types: 7% Other Property Types: 7% Average increase in residential +$61.65/year +$36.36/year household property tax

In terms of user-based revenue sources, TransLink has access to transit fares, transit advertising, new facility tolls, and motor vehicle fees. Transit fares were increased as part of the 2010 Funding Stabilization Supplemental Plan. Additional increases beyond the Base Plan, according to TransLink, would begin to seriously erode ridership. Transit advertising revenues are maximized. Tolls on new facilities are currently permitted for cost recovery only. The remaining source is the motor vehicle fee, which has been proposed by TransLink to be implemented as an annual vehicle registration fee in the future.

Section 29(3) Subject to section 195, the authority may, by bylaw, assess motor vehicle charges on any owner or operator of a motor vehicle that is principally used in the transportation service region or that uses any designated part of the regional transportation system.

According to TransLink, a vehicle registration fee would require additional legislative and regulatory amendments, which, in the short-term, would pose considerable implementation and enforcement challenges, and would likely not satisfy the Regional Transportation Commissioner's test of reasonableness in relation to an actual revenue source.

According to TransLink, the ongoing organizational efficiency measures that the authority has undertaken in the past few years has yielded sufficient savings which could be applied as an interim revenue backstop to fund the first year of either of the 2011-2013 Supplemental Plans. This would allow TransLink and the Province to establish an implementation mechanism for the vehicle registration fee or other new revenue sources by

RD-149 ATTACHMENT E Comments on TransLink's 2011 Supplemental Plans Page 4 of 4 GVRD Board Meeting Date: November 26,2010 Page 4 of 4

2012. However, in order to proceed with the funding agreements on the Evergreen Line and NFPR Phase 1 and to meet the test set out in legislation and to be evaluated by the Regional Transportation Commissioner, assurance must be obtained that in the absence of a replacement revenue source, the property tax would be increased beginning in 2012. Therefore, TransLink has requested the Mayors' Council to accept either one of the Supplemental Plans (Attachments 2 and 3).

Advice to the Mayors' Council on Regional Transportation Continued increases in the property tax is neither sustainable in the long-run, given the wide range of local and regional infrastructure and services that are beholden to the property tax, nor do they have a nexus with shaping and managing transportation demand. The way forward is to fund future improvements to the regional transportation system using primarily transportation user and transportation emissions-based fees. A vehicle registration fee would be a first step. Ultimately, a motor vehicle charge that is tied to the actual amount of usage and by the amount of emissions produced would provide the highest degree of linkage with regional objectives and assurance of equity amongst users of the regional transportation system.

It is recommended that the Supplemental Plans be rejected on the basis that both plans are dependent on new property tax increases only. Instead, the Mayors' Council is advised to direct the TransLink Board to prepare a new Supplemental Plan that will be funded appropriately by motor vehicle fees or other feasible transportation user and transportation emissions-based sources. As appropriate, the Province should establish the necessary legislation or enforcement mechanisms to enable the collection of motor vehicle fees.

3. ALTERNATIVES

The Board has the following options: a) That the Board advise the Mayors' Council on Regional Transportation to: (i) Reject the "Moving Forward" Supplemental Plan and "Delivering Evergreen Line and North Fraser Perimeter Road" Supplemental Plan on the basis that both plans are dependent on new property tax increases only; and,

(ii) Direct the TransLink Board to prepare a new Supplemental Plan that will be funded appropriately by motor vehicle fees or other feasible transportation user and transportation emissions-based sources. or To receive this report for information.

4. CONCLUSION

TransLink's 2011 Supplemental Plans are not acceptable on the basis that both plans are dependent on new property tax increases only. It is advisable that TransLink submit a new Supplemental Plan to the Mayors' Council that is funded appropriately from transportation­ based revenue sources.

ATTACHMENTS 1. Letter dated November 12, 2010 from Chair of Mayors' Council on Regional Transportation sent to Chair Lois Jackson, Metro Vancouver (Doc. # 4583697). 2. Letter dated November 9, 2010 from Chair of TransLink Board sent to Chair of Mayors' Council (Doc. # 4583794). 3. TransLink "Moving Forward" 2011 Supplemental Plan Backgrounder (Doc. # 4584173).

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