GILLIES BAY IMPROVEMENT DISTRICT TRUSTEES PRESENTATION AGM - APRIL - - PowerPoint PPT Presentation
GILLIES BAY IMPROVEMENT DISTRICT TRUSTEES PRESENTATION AGM - APRIL 12, 2019 TABLE OF CONTENTS HISTORY OF GOVERNANCE AND SERVICES IN RURAL COMMUNITIES CHANGING ROLES FOR SERVICES IN RURAL COMMUNITIES BC PROVINCIAL POLICY CAPITAL
AGM - APRIL 12, 2019
IMPROVEMENT DISTRICTS ARE INCORPORATED PUBLIC BODIES MANAGED BY ELECTED TRUSTEES WHICH ARE ESTABLISHED TO OPERATE AND ADMINISTER SERVICES SUCH AS COMMUNITY WATER SYSTEMS AND FIRE DEPARTMENTS WITHIN A SPECIFIC GEOGRAPHIC AREA.
WITHIN THE REGIONAL DISTRICT.
REQUESTED AND PAY FOR THOSE SERVICES.
IMPROVEMENT DISTRICTS MAY ONLY PROVIDE THE SERVICES AUTHORIZED IN THEIR LETTERS PATENT.
TO SOME AS LARGE AS THOUSANDS OF LANDOWNERS.
LARGE IRRIGATION SYSTEMS IN THE OKANAGAN VALLEY THAT WERE IN DANGER OF GOING BANKRUPT.
SERVICES (MOSTLY WATER) IN AREAS OUTSIDE OF MUNICIPALITIES.
THAN WATER SUCH AS FIRE PROTECTION IN 1945.
https://www2.gov.bc.ca/gov/content/governments/local-governments/improvement-districts-governance-bodies/improvement-districts/history-powers
BACK IN THE 1960'S, REGIONAL DISTRICTS WERE CREATED AND PROVIDED ANOTHER MORE FLEXIBLE OPTION FOR SERVICE DELIVERY IN RURAL AREAS. BY THAT TIME THERE WERE MORE THAN 300 IMPROVEMENT DISTRICTS PROVIDING A VARIETY OF SERVICES (E.G. SIDEWALKS, STREETLIGHTS) TO LANDOWNERS ACROSS THE PROVINCE. LEGISLATION ENABLING THE CREATION OF REGIONAL DISTRICTS WAS INTRODUCED IN 1965 AND ORIGINALLY BASED ON SCHOOL DISTRICT BOUNDARIES.
REGIONAL DISTRICTS WERE ORIGINALLY CREATED FOR THREE PURPOSES: 1. TO PROVIDE SERVICES TO THE ENTIRE REGION; 2. TO PROVIDE A FRAMEWORK FOR INTER-MUNICIPAL SERVICE DELIVERY; AND 3. TO PROVIDE GENERAL LOCAL GOVERNANCE FOR AREAS OUTSIDE MUNICIPAL BOUNDARIES. IN THE LATTER ROLE, REGIONAL DISTRICTS WERE IN DIRECT COMPETITION WITH ALREADY EXISTING IMPROVEMENT DISTRICTS.
WHILE IMPROVEMENT DISTRICTS HAVE A LONG HISTORY AND BEFORE THE ADVENT OF REGIONAL DISTRICTS, THEY WERE THE PREDOMINANT FORM OF LOCAL GOVERNANCE AND SERVICE DELIVERY IN RURAL AREAS OF THE PROVINCE. HOWEVER, OVER TIME, IMPROVEMENT DISTRICTS BEGAN TO LOSE THEIR PREDOMINANT ROLE AS THE VEHICLE FOR THE DELIVERY OF LOCAL SERVICES IN RURAL AREAS. THE ROLE OF IMPROVEMENT DISTRICTS HAS RECEDED SINCE THE CREATION OF REGIONAL DISTRICTS AND THEIR BROAD ROLES IN PROVIDING: 1. GENERAL GOVERNMENT FOR ELECTORAL AREAS; 2. LAND USE PLANNING AND ASSOCIATED REGULATORY SERVICES; AND 3. LOCAL SERVICES LIKE WATER AND FIRE PROTECTION.
https://www2.gov.bc.ca/assets/gov/british-columbians-our-governments/local-governments/governance-powers/improvement_district_governance_policy.pdf
REGIONAL HOSPITAL CAPITAL FINANCING WAS TRANSFERRED FROM IMPROVEMENT DISTRICTS TO REGIONAL DISTRICTS.
REGIONAL DISTRICT DEVELOPMENT WAS IN 1979.
REWRITE OF THE REGIONAL DISTRICT PART OF THE MUNICIPAL ACT WAS ENACTED.
IN THAT THEY WOULD LIKE TO SEE ALL SERVICES UNDER IMPROVEMENT DISTRICTS VOLUNTARILY TRANSFER TO REGIONAL DISTRICTS AND DISSOLUTION OF IMPROVEMENT DISTRICTS.
BECAUSE OF THE B.C. GOVERNMENT POLICY, THE LAST IMPROVEMENT DISTRICT WAS INCORPORATED IN 1995 AND OVER THE YEARS, MANY IMPROVEMENT DISTRICTS HAVE EITHER INCORPORATED AS MUNICIPALITIES (THE LARGER DISTRICTS) OR HAVE TRANSFERRED PROVISION OF THEIR SERVICES TO MUNICIPALITIES OR REGIONAL DISTRICTS. THIS PROCESS IS CALLED "CONVERSION.”
6.1 OVERALL VISION FOR IMPROVEMENT DISTRICTS
THE MINISTRY RECOGNIZES THAT MUNICIPALITIES AND REGIONAL DISTRICTS ARE, AND WILL CONTINUE TO BE, THE PRIMARY COMPONENTS OF THE LOCAL GOVERNMENT SYSTEM IN THE PROVINCE. THE MINISTRY EXPECTS THAT IMPROVEMENT DISTRICTS WILL, OVER TIME, BE CONVERTED TO MUNICIPAL OR REGIONAL DISTRICT JURISDICTION AND AT SOME POINT IN TIME ALL IMPROVEMENT DISTRICTS WILL BE UNDER MUNICIPAL OR REGIONAL DISTRICT JURISDICTION. HOWEVER, IT IS RECOGNIZED THAT IMPROVEMENT DISTRICTS WILL HAVE AN IMPORTANT ROLE TO PLAY IN PROVIDING LOCAL SERVICES TO RURAL AREAS FOR SOME TIME AND THE PROCESS OF CHANGE WILL LARGELY BE VOLUNTARY.
~ POLICY STATEMENT IN 2006
THE B.C. PROVINCIAL GOVERNMENT ENCOURAGES EXISTING IMPROVEMENT DISTRICTS TO BUILD POSITIVE RELATIONS WITH THE LOCAL GOVERNMENTS IN THEIR AREA AND TO CONSIDER WHETHER THEIR SERVICES COULD BE BETTER PROVIDED BY A LOCAL GOVERNMENT. *THE POLICIES OF THE B.C. GOVERNMENT REGARDING IMPROVEMENT DISTRICTS HAVE BEEN CHALLANGED BUT REMAIN UNCHANGED.
SINCE THE 1960S, REGIONAL DISTRICTS HAVE CONTINUED TO EVOLVE. AS LOCAL GOVERNMENTS, REGIONAL DISTRICTS ARE NOW THE MOST EFFECTIVE WAY OF PROVIDING BROAD EXPANDED RURAL AREA SERVICES. REGIONAL DISTRICTS ARE NOT LIMITED TO SPECIFIC SERVICES IN THEIR LETTERS PATENT; PROVIDE BOTH LAND USE AND SERVICE DECISION- MAKING UNDER ONE BODY; HAVE BROADER ADMINISTRATIVE AND FINANCIAL TOOLS FOR SERVICE MANAGEMENT; ARE GOVERNED BY OFFICIALS ELECTED DIRECTLY OR INDIRECTLY BY ELECTORS, NOT JUST LANDOWNERS; CAN BORROW AT LOWER INTEREST THROUGH THE MUNICIPAL FINANCE AUTHORITY; AND ARE ELIGIBLE FOR PROVINCIAL AND FEDERAL GRANTS.
https://www2.gov.bc.ca/gov/content/governments/local-governments/improvement-districts-governance-bodies/improvement-districts/history-powers
“WHEN AN IMPROVEMENT DISTRICT CEASES TO MEET THE NEEDS OF ITS LANDOWNERS FOR ANY REASON, IT MAY BE ELIMINATED IN ONE OF TWO WAYS -- BY CONVERSION OR BY DISSOLUTION.” 1. ‘CONVERSION’ IS WHEN THE SERVICES ARE STILL VIABLE BUT MAY BE PROVIDED BY THE LOCAL GOVERNMENT; OR 2. ‘DISSOLUTION’ IS WHEN THE SERVICES ARE NO LONGER VIABLE.
THERE ARE MANY REASONS WHY LANDOWNERS AND TRUSTEES OF AN IMPROVEMENT DISTRICT MAY WISH TO CONSIDER LOOKING AT CONVERSION. TYPICAL ISSUES INCLUDE THE FOLLOWING: 1. LONG STANDING GOVERNMENT POLICY REMAINS PRO-CONVERSION 2. LACK OF ACCESS TO LOCAL GOVERNMENT SERVICES & RESOURCES (IE LAND USE PLANNING, GRANTS, ETC) 3. LACK OF (OR RETENTION OF) VOLUNTEERS AND/OR LACK OF COMMUNITY SUPPORT 4. ACCOUNTABILITY, NON-COMPLIANCE AND/OR LIABILITY CONCERNS 5. AGING & SUBSTANDARD INFRASTRUCTURE
MANY IMPROVEMENT DISTRICTS FACE LACK OF CAPACITY AND RESOURCES TO MANAGE THE EVER INCREASING STANDARDS AND ACCOUNTABILITY REQUIREMENTS TO SUSTAINABLY OFFER SERVICES OVER THE LONG TERM. ADDING TO THIS STRUGGLE IS THE VERY LONG STANDING POLICY OF THE B.C. GOVERNMENT THAT IMPROVEMENT DISTRICTS SHOULD VOLUNTARILITY CONVERT. THE B.C. GOVERNMENT GENERALLY SUPPORTS IMPROVEMENT DISTRICT CONVERSIONS WHERE THERE IS EVIDENCE OF SUPPORT FROM THE LANDOWNERS, BOARD OF TRUSTEES, AND THE LOCAL GOVERNMENT THAT WILL TAKE ON THE SERVICES.
THE MINISTRY IS FIRM ON IT’S CONVERSION POLICY (RECENT LETTER FROM ASSISTANT DEPUTY MINISTER, LOCAL GOVERNMENT DIVISION) PROVISION OF DRINKING WATER TO CITIZENS, IN THIS SITUATION, IS THE RESPONSIBILITY OF THE IMPROVEMENT DISTRICT, AND CONSEQUENTLY DECISIONS AROUND THE PRIORITIZATION OF WORK AND THE DETAILS OF PUBLIC SYSTEMS UPGRADES ARE ALSO SOLIDLY IN THE IMPROVEMENT DISTRICT MANDATE. THE MINISTRY REMAINS COMMITTED TO ITS CONVERSION POLICY AND EXPECTS BOTH REGIONAL DISTRICTS AND IMPROVEMENT DISTRICTS TO ENGAGE IN DISCUSSIONS CONCERNING EFFICIENT AND EFFECTIVE GOVERNANCE FOR DELIVERY OF CRITICAL SERVICES, SUCH AS WATER, TO ITS CITIZENS. ONE OF THE BENEFITS OF A CONVERSION IS THE ABILITY TO REQUEST FUNDING UNDER CAPITAL INFRASTRUCTURE PROGRAMS. THE POLICY HAS RESULTED IN THE VOLUNTARY DISSOLUTION OF IMPROVEMENT DISTRICTS; FROM THE PEAK OF 327 IMPROVEMENT DISTRICTS TO THE CURRENT NUMBER OF 204.
SOURCE: LETTER DATED MARCH 20, 2019 FROM TARA FAGANELLO, ASSISTANT DEPUTY MINISTER, LOCAL GOVERNMENT DIVISION
“…IDS ARE NOT ELIGIBLE TO APPLY DIRECTLY FOR CAPITAL GRANTS TO FUND THEIR PROJECTS. THIS POLICY IDENTIFIES AND SUPPORTS THE LONG-TERM BENEFITS OF PROVIDING CONSOLIDATED LOCAL PUBLIC SERVICES UNDER A MUNICIPAL OR REGIONAL DISTRICT FRAMEWORK, BOTH OF WHICH HAVE ROBUST SERVICE PROVISION POWERS INCLUDING ACCESS TO GRANTS AND PREFERRED BORROWING RATES FROM THE MUNICIPAL FINANCE
REPORTING AND FINANCIAL REQUIREMENTS OF A SUCCESSFUL CAPITAL GRANT APPLICATION, AND ADDING IDS TO THE CAPITAL GRANTS PROGRAMS WOULD DOUBLE AN ALREADY OVER-SUBSCRIBED ELIGIBLE APPLICANT LIST. ALTERNATIVELY, AN APPLICATION CAN BE SUBMITTED BY A LOCAL GOVERNMENT ON BEHALF OF THE ID. THE APPROVAL OF THE CAPITAL GRANT IS CONDITIONAL ON THE SUBSEQUENT DISSOLUTION OF THE ID AND CONVERSION TO MUNICIPAL OR REGIONAL DISTRICT SERVICE. THIS LONG-STANDING MINISTRY POLICY ENCOURAGES IMPROVEMENT DISTRICTS TO CONVERT TO RECEIVE INFRASTRUCTURE FUNDING.”
SOURCE: LETTER DATED MARCH 20, 2019 FROM TARA FAGANELLO, ASSISTANT DEPUTY MINISTER, LOCAL GOVERNMENT DIVISION
AS AN IMPROVEMENT DISTRICT, WE DO NOT HAVE ACCESS TO THE SAME SERVICES THAT A LOCAL GOVERNMENT DOES.
ADMINISTRATIVE AND FINANCE TOOLS SUCH AS MORE FAVOURABLE INSURANCE RATES, RESOURCES AND EXPERTISE, COST RECOVERY METHODS, BORROWING RATES OR GRANTS FROM SENIOR GOVERNMENTS
SO SOME QUESTIONS WE NEED TO ASK AS A COMMUNITY
FOR EXAMPLE, DIFFICULTY IN GETTING VOLUNTEERS TO COMMIT TO SERVING AS A TRUSTEE, BECAUSE OF THE TIME COMMITMENT AND THE INCREASING COMPLEXITIES / LIABILTIES OF THE OPERATION AND ADMINISTRATION OF IMPROVEMENT DISTRICT SERVICES
TO RESOURCES FOR PROJECT MANAGEMENT OF MAJOR CAPITAL PROJECT(S) NECESSARY TO UPGRADE THE WATER SYSTEM?
GOVERNING BODY ELECTED BY ELECTORS, NOT JUST LAND OWNERS
ACCOUNTABILITY
SUPPLY AND QUALITY ISSUES
STANDARDS PARTICULARLY IN TERMS OF THE DRINKING WATER PROTECTION ACT
JIM MASON: THEN & NOW
AGING OR SUBSTANDARD INFRASTRUCTURE (IMPROVEMENT DISTRICTS ARE RESTRICTED FROM PARTICIPATING DIRECTLY IN GOVERNMENT GRANT PROGRAMS)
MANAGEMENT OR IMPLENTATION OF ENGINEERING PLANS & MEETING REGULATORY STANDARDS (E.G. IMPLEMENTATION OF LARGE CAPITAL PROJECTS LIKE THE MASTER WATER PLAN).
(HOW TO ADDRESS THE AGING & SUBSTANDARD INFRASTRUCTURE)
ON OCCASION, A BOARD OF TRUSTEES WILL NEED TO EXPEND A LARGE AMOUNT OF MONEY FOR A CAPITAL PROJECT OR CAPITAL ASSET. THIS COULD INVOLVE THE ACQUISITION, CONSTRUCTION, RECONSTRUCTION, REPLACEMENT, IMPROVEMENT OR EXTENSION OF WORKS, EQUIPMENT, OR BUILDINGS. WHEN ANTICIPATING A MAJOR CAPITAL PROJECT OR ASSET ACQUISITION, THE BOARD OF TRUSTEES SHOULD CONSIDER THE FOLLOWING STEPS:
PROJECT APPROVALS REQUIRE THE FOLLOWING BE ADDRESSED:
BYLAWS & LANDOWNERS
THESE ARE THE RECOMMENDATIONS FROM ENGINEERING CONSULTANT (KWL) THAT THE GBID SHOULD DO TO CONTINUE TO PROVIDE WATER & FIRE PROTECTION SERVICES TO THE COMMUNITY 1. ENSURE PROPER TREATMENT AND OPTIMIZED DISINFECTION; 2. ENSURE SUFFICIENT STORAGE FOR FIRE FLOWS, BALANCING, AND EMERGENCY STORAGE; 3. INCREASE SYSTEM CAPACITY AND PRESSURE; 4. REDUCE WATER WASTAGE AND OPERATING COSTS; AND 5. FOLLOW THE PROVIDED “ROAD MAP” THAT WILL ASSIST IN SETTING BUDGETS FOR PRIORITY IMPROVEMENT PROJECTS, AND TO GET THE BEST VALUE FOR MONEY DURING EMERGENCY EXPENDITURES THROUGH REFERENCE TO THE MASTER PLAN
HIGH PRIORITY (5 YEARS) ESTIMATE STORAGE & SUPPLY MAINS $ 1,712,000.00 TREATMENT PLANT $ 4,108,000.00 DISTRIBUTION SYSTEM UPGRADES (5-YEAR) $ 459,000.00
TOTAL HIGH PRIORITY $ 6,279,000.00
MEDIUM PRIORITY (10 YEARS) ESTIMATE DISTRIBUTION SYSTEM UPGRADES (10-YEAR) $ 1,727,000.00 TOTAL MEDIUM PRIORITY $ 1,727,000.00 LOW PRIORITY (20 YEARS) ESTIMATE DISTRIBUTION SYSTEM UPGRADES (20-YEAR) $ 1,987,000.00 TOTAL LOW PRIORITY $ 1,987,000.00 TOTAL 20 YEAR ESTIMATE $ 9,993,000.00
2016 Master Water Plan (KWL) Cost Estimates
THE COMMUNITY NEEDS TO COME TOGETHER TO WORK ON HOW WE CAN ACHIEVE CONTINUED DELIVERY OF THE SERVICES TO THE COMMUNITY. HOW ARE WE GOING TO GET THIS MAJOR CAPITAL PROJECT MOVING FORWARD BEFORE WE ARE IN PANIC MODE? KEEPING THINGS ‘AS IS’ IS NOT AN OPTION AS OUR SERVICES ARE NOT MEETING COMPLIANCE STANDARDS. DO YOU THINK THE CURRENT MODEL FOR GOVERNANCE WORKING? DOES THE COMMUNITY WANT TO KEEP DOING THINGS THE SAME OR CONSIDER MAYBE TRYING A DIFFERENT WAY?
SOME OF THE RECENT WORK HAS BOUGHT US A LITTLE TIME BUT THE COMMUNITY NEEDS
CRITICAL SERVICES FOR FIRE & WATER CAN BE UPGRADED AND BROUGHT INTO COMPLIANCE AS PER THE HEALTH AUTHORITY AS WELL AS TO PROVIDE PROPER MAINTENANCE OVER THE LONG TERM. THERE HAS BEEN DISCUSSION IN THE PAST (SEE 2012 FAQS) REGARDING HAVING THE LOCAL GOVERNMENT PROVIDE THESE CRITICAL SERVICES GOING FORWARD. THE RECOMMENDATION FROM THE 2019 CAPITAL PLANNING COMMITTEE IS THAT THE COMMUNITY NEEDS TO ‘FOLLOW THE MONEY’ & WORK WITH THE LOCAL GOVERNMENT TO HELP MAKE CHANGE HAPPEN.
TO A LOCAL GOVERNMENT (A MUNICIPALITY OR A REGIONAL DISTRICT).
INCLUDING ALL OF THE ASSETS, LIABILITIES, OBLIGATIONS AND BYLAWS OF THE IMPROVEMENT DISTRICT ARE TRANSFERRED TO THE LOCAL GOVERNMENT TAKING OVER THE SERVICE.
ASSETS, LIABILITIES AND OBLIGATIONS REMAINING WITH THE PROPERTIES THAT WERE WITHIN THE IMPROVEMENT DISTRICT BOUNDARY.
CONVERSION IS A PROCESS NOT A SINGLE EVENT.
1. SUPPORT 2. FEASIBILITY STUDY 3. LANDOWNER CONSULTATION 4. AUTHORIZATION
THE RELEVANT REGIONAL DISTRICT BOARD, ALONG WITH THE IMPROVEMENT DISTRICT BOARD OF TRUSTEES (*WITH LANDOWNER SUPPORT), NOTIFIES THE MINISTRY OF MUNICIPAL AFFAIRS AND HOUSING OF ITS SUPPORT BY ALL PARTIES FOR CONVERSION. * LANDOWNERS NEED TO TELL THEIR TRUSTEES WHAT THEY WANT. IT IS NOT UP TO THE TRUSTEES, IT IS UP TO YOU.
THE LOCAL GOVERNMENT STUDIES THE FEASIBILITY OF CONVERSION TO FULLY UNDERSTAND THE COSTS AND GOVERNANCE CONSIDERATIONS IN MAINTAINING THE SERVICE FOR THE LONG-TERM BENEFIT OF LOCAL RESIDENTS.
LANDOWNERS HAVE AN OPPORTUNITY TO REVIEW THE CONCLUSIONS OF THE STUDY AND PROVIDE INPUT ON A RECOMMENDED COURSE OF ACTION, IF ANY.
ONCE ALL PARTIES HAVE UNDERSTOOD THE IMPLICATIONS OF CONVERSION, THE PROVINCIAL CABINET MAY CHOOSE TO AUTHORIZE THE CONVERSION OF THE IMPROVEMENT DISTRICT, AND TRANSFER ALL ASSETS AND LIABILITIES TO THE LOCAL GOVERNMENT THAT WILL TAKE ON AND MAINTAIN THE ADDITIONAL SERVICES.
THE OUTGOING TRUSTEES ARE NOT ASKING FOR A VOTE ON CONVERSION BUT PUTTING FORWARD THE RECOMMENDATION TO THE COMMUINTY TO START TALKING ABOUT SOME OPTIONS - WHILE KEEPING IN MIND THAT HOW THINGS WERE DONE IN THE 1960S IS NOT HOW THINGS ARE DONE TODAY. THE GBID HAS BEEN GIVEN GRANT MONIES FOR STUDIES AND ENGINEERED PLANS BUT IT DOES NOT HAVE THE MONIES OR ACCESS TO FUNDING TO IMPLEMENT THE REQUIRED CAPITAL PROJECT FOR IMPROVEMENTS & LONG TERM MAINTENANCE FOR GILLIES BAY WATER.
SO HOW ARE WE GOING TO PAY FOR IT?
Gillies Bay Improvement District – AGM April 12, 2019 Board Presentation Handout GBID OUTGOING CHAIRS REPORT The Chairs Report provides a summary regarding the water infrastructure needs as identified by the engineering report provided in 2016 by KWL. This is report is long so has not been printed
PRESENTATION NOTES As landowners within the Gillies Bay Improvement District, it is important that the community fully participate in decisions on the future governance of the community. Governance is important because it is what gives a community the authority, powers and capacity for long- term sustainability of critical infrastructure. The information presented by your outgoing board of trustees is a starting point for community engagement and discussion as one option that is in our opinion something to consider. It is not a single event but a process and would require the following steps:
List of Local Government services taken from the 2018 Taxation Brochure Local Government (qRD) Local Authority (GBID)
Regional Services (services paid for by taxpayers throughout the entire region) Electoral Area Services (shared) Area D Specific Services (taxes paid by Area D only) Gillies Bay Improvement District Services
Preparedness
Shelter
Development
D)
Anda Dock)
Centre
Commission
residents only)
(Gillies Bay and extended boundary area)
Bay residents only)
Below are some links to the provincial government information presented in the PowerPoint. Improvement District History & Powers https://www2.gov.bc.ca/gov/content/governments/local-governments/improvement-districts- governance-bodies/improvement-districts/history-powers Improvement Districts https://www2.gov.bc.ca/gov/content/governments/local-governments/improvement-districts- governance-bodies/improvement-districts Regional Districts in B.C. https://www2.gov.bc.ca/gov/content/governments/local-governments/facts- framework/systems/regional-districts Improvement District Governance Policy https://www2.gov.bc.ca/assets/gov/british-columbians-our-governments/local- governments/governance-powers/improvement_district_governance_policy.pdf Improvement Districts Boundary Changes & Dissolutions https://www2.gov.bc.ca/gov/content/governments/local-governments/improvement-districts- governance-bodies/improvement-districts/boundaries Improvement District Conversion Guide https://www2.gov.bc.ca/assets/gov/british-columbians-our-governments/local- governments/governance-powers/improvement_district_conversion_guide.pdf Infrastructure & Planning Grants Regional districts and municipalities can apply on behalf of improvement districts for infrastructure planning and capital grants. Source: https://www2.gov.bc.ca/gov/content/governments/local-governments/improvement- districts-governance-bodies/improvement-districts Outside Resource to help with Access to Funding (for plans & studies) https://waterbc.ca/community/programs/access-to-funding/
GBID AGM – Chairs Report Page 1 GBID AGM April 2019 – Chairs Report EXECUTIVE SUMMARY Over half a century ago (1963), the Gillies Bay Improvement District (GBID) was formed by means of letters patent to be able to assume the management of the existing water services within the community. Prior to an improvement district forming, Texada Mines
In an agreement dated June 1965 with Texada Mines (By-Law No. 1), the GBID agreed to take over the management of the water system that was originally built by Texada Mines with an agreement to not only operate the system but to maintain the system in proper repair and condition and shall be responsible for the costs of maintenance, repair and operation of the system. At some point following (the agreement stated in 20 years from the date of the agreement), the water system was fully transferred to the improvement district. Over time, additional services were added and presently the GBID now has three areas of service responsibility: 1) Community Water Service 2) Fire Protection Service 3) Street Lighting Service on behalf of BC Hydro The improvement district was managed by a very dedicated group of community volunteers and taxes and tolls for the water services were kept very low for decades. This worked well for a rural community for many years and they were able to keep costs low as the regulatory standards at the time were far less than they are today. Operating costs were also much less than they are now needing more staff and technical expertise to deal with these issues. Add to that the best-before-date of the aged and non- compliant infrastructure and you have a system that is in need of some serious financial and technical help. This report will go into some details on the following topics that the community needs to be aware of:
Conversion
GBID AGM – Chairs Report Page 2 It is important to note that the we have urgent and high priority needs as identified in the Water Master Plan. Those needs listed as urgent and high priority were published in 2016 and we are now well into 2019. We have a plan! We know what the needs are to fix our system. What we do NOT have are resources. We need financial resources as well as technical & staffing
SAFETY Our community is not as safe as it should be. The largest and most concerning matter we have in the community of Gillies Bay/Shelter Point is water. Major upgrades are required to adequately provide sufficient water pressure for fire protection and some kind of treatment system is required to offer quality water safe for consumption. The levels of pressure are grossly inadequate for fire suppression and although we are not constantly on a boil water advisory, we are always close to it. THE MASTER WATER PLAN The GBID received funding for engineering study and in 2016 Master Water Plan was finalized and presented to the board. If you would like to review this, it can be found on the GBID website. http://gillies- bay.ca/wp-content/uploads/2018/02/Master-Water-Plan-Report.pdf To summarize, this engineering report recommended the following:
storage
The Master Water Plan is based on a 20-year design horizon and is structured as follows:
(urgent or high-priority tasks)
(medium-priority tasks)
(low-priority tasks) During the modelling of the plan, potential future connection of Shelter Point was assumed to occur at the 10-year (and beyond) planning horizon "after the main supply line along Gillies Bay road has been upgraded. The plan however is sufficiently flexible
GBID AGM – Chairs Report Page 3 to allow for connection to Shelter Point at any time after completion of the new reservoir and water treatment system". THE COSTS TO UPGRADE THE SYSTEM TO SAFETY AND REGULATORY STANDARDS The overall cost estimate provide by the engineering firm was $9,993,000.00 in 2016
$6,279,000.00 – again in 2016 dollars. If we were to do a rough breakdown per rate payer, the math is as follows: $6,279,000 / 240 = $26,162.50 per household If we were to spread that cost out over 20 years say, then that would mean an additional tax of $1,308.13 per household each year for the next 20 years. And this is just to pay for the principal (no interest) on the high priority items! To do the math for the whole estimate would look like this: $41,637.50 per household, spread out of 20 years = $2,081.88 annually per
These costs are estimates and do not include the cost of acquiring lands, legal costs (if any) nor the cost of project management. The regulations will not permit the community to upgrade or construct without engineering and ministry of health oversight. Gone are the days were a community can just roll up its sleeves to save costs. TAXES AND TOLLS Taxation and water tolls are insufficient to pay for the costs mentioned above. GBID’s water service has two revenue components:
pay/consumption fee that pays for the day-to-day operations of the water system that is only charged to rate payers within the community that are actually hooked up and consuming water. This is for things like electricity, chlorine, staff, etc. These consumption fees did not increase in 2019 and remained at $400.00/yr which is the same rate as nearly the past decade. The last time water tolls increased was in 2010. In the 1960s the tolls were $60.00/yr increasing five dollars in 1975. In 1984 they went up another ten dollars and so on up until 2001, these were as low as $150.00/yr.
GBID AGM – Chairs Report Page 4
the water infrastructure maintenance and improvements. This is Category A under our taxation bylaw. The meeting held in October 23, 2012 presented the community with a bylaw proposal to announce an increase of $445.00 per year per parcel as recommended by the Infrastructure Funding Report compiled by AquaVic Water Solutions Inc. to help fund asset replacement and upgrades to
citizens in attendance, the board amended the proposal and passed a bylaw to increase parcels taxes by $225.00 for 2013. In 2014, rates would further increase an additional $220.00 per parcel to bring the total increase up to $445.00 per year per parcel which did not occur. Year Rate Comment 2012 $150.00 rate since 2005 2013 $375.00 (150 + 225 as proposed) 2014 $390.00 4% increase 2015 $405.60 4% increase 2016 $421.60 4% increase 2017 $446.90 6% increase 2018 $473.71 6% increase 2019 $473.71 no increase For the 2019 tax year, the board voted for no increase to this category for a couple of reasons. The first being that rate payers were already being impacted by the added cost of the water meters and secondly, until we have an action plan for the waterworks upgrades, we could not make an educated decision to carry
needed more time to review the assets and present financial needs. Bylaw 231 is the Taxation Bylaw 2019 and a summary of the parcel taxes are as follows: For the year 2019 there is hereby levied the following taxes:
GROUP A: Shall comprise each and every parcel of land to which water is or can be supplied from the existing works of the district. GROUP B: Shall comprise each and every parcel of land not classified into Group A. GROUP C: Shall comprise each and every parcel of land which was within the surveyed boundaries of the improvement district of Gillies Bay.
GBID AGM – Chairs Report Page 5 Group C was increased in 2019 as this is a cost-recovery tax and the rate are set to recover the costs of what is paid back to BC Hydro for the street lighting within the boundaries of Gillies Bay. The street lighting is a taxation service only as the street lights are owned and maintained by BC Hydro. GBID recovers the operating costs in the form of a parcel tax. Fire protection taxation is covered under your provincial taxes and our department is in good shape both operationally and financially. We will need to look at succession planning for the position of Fire Chief in the near future when Rob retires. IDENTIFIED DEFICIENCIES According to the engineering report (see section 2.4 in the Master Water Plan), it was evident that we were exceeding the allowances under our water licences:
“From previous flow records, it appears that the GBID is using more water than allowed by their licence (113.6 m /d) and, on occasion, up to 925 m³/d.”
As a result, GBID applied for a new water licence that allows for greater allowances, but we have yet to receive this to date. It was applied for back in November of 2016 and approval is still pending as per our regular status requests to the Ministry. The Master Water Plan notes that we should complete a watershed analysis when applying for water diversion licence volumes. As the application was submitted before my tenure, I’m unsure if we did that or not. If not, another may be required. The dam and spill way at Cranby Lake is also in need of repairs/upgrades as our last dam audit indicates we have deficiencies there and the spill way is far beyond the acceptable lifespan and should be replaced/upgraded. CONSERVATION: REDUCE WASTE & OPERATING COSTS Evidence demonstrates that metered users conserve more water. When water service rates based on consumption are implemented, there is a correlated drop in overall consumption/waste throughout the system. The service itself can also further conserve with the upgrades done we will not need as much flushing to maintain overall chlorine residuals again hopefully lowering the required volumes. Providing treated water is a costly endeavor. There is the cost of the chlorine (the more water we use the more chlorine is required). There are also the energy costs required to run the pump(s) more often and this further lessens the life span of this equipment as
though rate payers are presently paying a flat rate for their water, the annual operating costs increase with the more water flowing through the system. We as a community need to conserve water for both the environmental/ climate change reasons but for the cost of providing this as well. This is a finite resource and should not be taken for granted.
GBID AGM – Chairs Report Page 6 More education around water conservation is still needed here on Texada. There are still users that don’t see water as having a cost, but it does. It is no different than the costs of providing electricity. The attitude of leaving on a tap open or a leak unrepaired is equivalent to leaving all of your lights and heat on when you are not home. WATER STORAGE GBID’s primary focus presently is to work on storage (water tower). The GBID is of the
fully but better than now) the following:
contact time of the chlorine prior to delivery.
be required as the optimal location is on private lands and owners are unwilling to
power which will elevate the costs substantially.
flow/pressure requirements. We are currently waiting on a revision from our engineers regarding location of water
GBID has not been successful in getting infrastructure grants so we are trying to implement components of the plan that are within our reach. Some of these may be listed as moderate to lower priority items but, they are the low hanging fruit but given
Conservation is our main focus presently. This buys a little time by repairing leaks and identifying where we can do ‘small’ fixes. This also reduces water loss due to neglect or disregard by some users in the system that will help with the pressure issues for all. The continuing work that you are seeing within the community is the inspection of existing works, installation of new shut-off valves (replacing the decaying and non- functional ones) as well as installation of regulated back flow preventers for safety along with meters to show average use and overages. CAPACITY The system needs a lot of upgrading to get the fire protection into compliance. We need several new fire hydrants, bigger pipes and better reservoir for flow and pressures. This chart shows the available fire flow rate in red which is <30 L/s. The desired pressure would be green or > 60 L/s.
GBID AGM – Chairs Report Page 7 WATER TREATMENT We are also simultaneously working on some treatment models utilizing some free services thru a student program UBC and Res’EAU Reports should be available in the next few months. A pilot slow-sand filtration study done prior was inconclusive. The report from Capstone Group Project at UBC should hopefully help identify next steps. MORE VOLUNTEERS This project is a monumental undertaking. To help support the staff and volunteer trustees, two committees were struck as follows: STANDING COMMITTEE – WATERWORKS OPERATIONS The improvement district has established a standing committee for the daily
asked to participate. This committee meets monthly and meetings are open to the public. SELECT COMMITTEE – WATERWORKS PLANNING The improvement district has established a short term select committee to assist the board of trustees and waterworks committee to review the mountain of engineering reports, studies and cost estimates to make recommendations on where best to focus the ID’s resources in the short-term.
GBID AGM – Chairs Report Page 8 However, even with these additional committees tasked specifically to deal with the water issues, we are gravely and insufficiently resourced. Attempts to draw in support from the Regional Districts Planning department were unsuccessful. PROVINCIAL FUNDING – WATER INFRASTRUCTURE The provincial policy regarding access to infrastructure funding for improvement districts remains the same as always. Some major players pushed to get this changed but the province has held fast to their policy. Please see letter attached in response from the Assistant Deputy Minister that was sent to one of our community members recent inquiries. GROWTH: Improvement Districts Boundary Changes & Dissolutions A further issue is that although our Master Water Plan took into consideration future growth by including Shelter Point, any growth would require a boundary change under the current structure of GBID. The boundary change is not likely to be approved given the governments stand on this matter (see below). Improvement district restructure is the process for making governance, function, and boundary changes to improvement districts. The B.C. government does not generally create new improvement districts, add new service responsibilities or consider major boundary extensions where there is a local government willing and able to provide the service. SOURCE: https://www2.gov.bc.ca/gov/content/governments/local- governments/improvement-districts-governance-bodies/improvement- districts/boundaries THE FUTURE OF IMPROVEMENT DISTRICTS The future of Improvement Districts within the province is unclear. What is clear that is although there is no forced mandate to push ID’s to extinction, there is not much in the way of support either financially or administratively. What that leaves us with besides aging infrastructure is a modest budget that supports a very small staff count, a volunteer board of trustees. Along with the difficulty in staff/volunteer retention, recruiting trustees to stand for office, there is still the limited funding options on any horizon for IDs and lack of resources in fields of expertise such as finance, planning, engineering, etc. This all makes for a very uncertain future and is hardly sustainable
CONCLUSION The community of Gillies Bay has aging water infrastructure that has been under resourced financially since it was gifted to the community by Texada Mines over half a century ago. Taxes and rates were kept very low for many years and upgrades were deferred as they are very costly endeavors and lack of human resources with the
GBID AGM – Chairs Report Page 9 required professional skillsets. As a community, we can no longer put things off and deal with them later. The current regulatory requirements are putting on more pressure to upgrade our system along with all of the studies and engineering reports we are confirming things in the field that it is time to act. The solutions are to keep up the good fight and see how far we can get on our own without access to grant monies (this would mostly likely mean borrowing) and deal with staff/trustee turnover as best we can or look at a different framework regarding the GBID services. Below is an excerpt from the Improvement District Conversion Guide provided by the provincial government for the community to consider as it is our opinion that the status quo is no longer a viable option for the future needs of this community.
Reasons for Conversion
There are many reasons why residents and trustees of an improvement district may wish to consider looking at conversion. Typical Issues include the following:
the increasing complexities of the operation and administration of improvement district services;
districts are restricted from participating directly in government grant programs);
the Drinking Water Protection Act (and since this publication, the Fire Services Act along with the proposed Fire Safety Act*);
There are two ways of changing the way residents of improvement districts receive services. The legislative provisions governing these are contained in Appendix D. Municipal Restructuring In the event of the incorporation of a new municipality or a boundary extension for an existing municipality, improvement districts providing services in the area that becomes a part of the municipality are automatically converted. Regional District Restructuring Outside of municipal boundaries, an improvement district can be converted to a regional district service area. Since most improvement districts are located outside municipal boundaries, the majority of improvement district conversions have been to regional district service areas. Therefore, the focus of this Guide is on converting improvement districts to regional districts. However, the process and principles laid out are also applicable for conversion to municipalities.
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Appendix B compares the main features of an improvement district and a regional district service area. A regional district service area is an administrative boundary within which a service is provided to residents for which they pay. A regional board creates a service area by passing a bylaw.
Participants in the Conversion Process
Im Improvement D Dis istric ict Improvement districts and the owners/residents they serve, have the most at stake in any conversion. Generally, those served by the improvement district will be a part of the decision for change. Their elected representatives, the improvement district trustees, will also play a major role. In addition, a committee may be created to guide and manage the review process by researching, analyzing and discussing possible changes to the improvement district structure. Regi Region
al District As the local government for unincorporated areas, the regional district is the only option for owners/residents considering an improvement district conversion. Consequently, the regional district board has a pivotal role in considering the impact of conversion on its other services and resources. Generally, the regional district also provides administrative support and critical information about its policies and operations, which are required for the review process. Mi Ministry (Local Government Department) The ministry’s role includes:
Source: Improvement District Conversion Guide February 2004 *Fire Safety Act https://capricmw.ca/blog/government-bc-introduces-new-fire-safety-act
Audrey Atkins GBID Trustee & Board Chair April 2019
GBID AGM – Chairs Report Page 11 ATTACHMENT TO CHAIR’S REPORT – 2019 LETTER OF RESPONSE TO PETER SKIPPER’S LETTER TO THE MINISTRY REGARDING FUNDING Reproduced with permission from Peter Skipper March 20, 2019 Ref: 244353
Gillis Bay, BC pskipper@telus.net Dear Peter G. Skipper: Thank you for your email of February 11, 2019 regarding the question of infrastructure funding for Improvement Districts (IDs). As the Assistant Deputy Minister, Local Government Division, I am pleased to respond. As you are aware, IDs are not eligible to apply directly for capital grants to fund their
local public services under a municipal or regional district framework, both of which have robust service provision powers including access to grants and preferred borrowing rates from the Municipal Finance Authority. Many IDs would be severely overburdened with the staffing, implementation, reporting and financial requirements of a successful capital grant application, and adding IDs to the capital grants programs would double an already over-subscribed eligible applicant list. Alternatively, an application can be submitted by a local government on behalf of the ID. The approval of the capital grant is conditional on the subsequent dissolution of the ID and conversion to municipal or regional district service. This long-standing Ministry policy encourages improvement districts to convert to receive infrastructure funding. Provision of drinking water to citizens, in this situation, is the responsibility of the improvement district, and consequently decisions around the prioritization of work and the details of public systems upgrades are also solidly in the improvement district mandate. The Ministry remains committed to its conversion policy and expects both regional districts and improvement districts to engage in discussions concerning efficient and effective governance for delivery of critical services, such as water, to its citizens. One of the benefits of a conversion is the ability to request funding under capital infrastructure programs. The policy has resulted in the voluntary dissolution of Improvement Districts; from the peak of 327 Improvement Districts to the current number of 204. With respect to the Gas Tax Fund, which is administered by the Union of British Columbia (UBCM), IDs are not eligible to apply directly. Local governments, outside of Metro Vancouver, are the eligible applicants to the Gas Tax Strategic Priorities Fund.
GBID AGM – Chairs Report Page 12 Improvement Districts can access funding for feasibility studies through the Infrastructure Planning Grant (IPG) Program. It does require the application to be submitted by the area regional district applying on the improvement district’s behalf. There are no further requirements for the regional district to be involved in the scope or results of the feasibility
grant is not dependent on conversion. The Ministry recognizes that conversion to either regional or municipal government may not be immediate and acknowledges that improvement districts can make independent decisions on whether they wish to convert, and that not every conversion is the same, requiring unique approaches to address the complexities of transferring assets, liabilities, governance, human resources and more. I trust you will find this information helpful. Thank you again for your email. Sincerely, Tara Faganello Assistant Deputy Minister
GBID AGM – Chairs Report Page 13 ATTACHMENT TO CHAIR’S REPORT – 2019 2012 FAQ SHEET Provided to GBID rate payers in 2012
On October 23, 2012, the Gillies Bay Improvement District held a meeting where bylaws where the initial intention was to pass bylaws for the 2013 taxation year and announce an increase of $445 per year, per parcel as recommended by Infrastructure Funding Report compiled by AquaVic Water Solutions Inc. At the special meeting, about 40 rate payers attended and their concerns were heard by the GBID Board of Trustees. The GBID Board of Trustees then amended their plan and passed a bylaw to increase parcel taxes by $225 for 2013 (billed by the GBID). In 2014, rates will further increase by an additional $220 per parcel, to bring the total increase up to $445 per year per parcel. Frequently Asked Questions: Q - Why is the GBID raising rates? A – To adequately fund replacement of existing infrastructure (pipes, fittings, equipment, etc). Currently, almost every pipe and fitting in the ground is over 40 years old. They have reached the end of their service life, and over the next decade or more, will require replacement. If we do not replace this existing infrastructure, we will undoubtedly face pipe failures and an inability to provide water to customers. Q - Why can’t the Government help us? A – Currently, Improvement Districts (like the GBID) are not able to apply for matching grants from the Provincial Government, due to an unfair piece of legislature which does not define Improvement Districts as having the same access to funding as other small local governments (like Regional Districts or Municipalities). Q – Why don’t we join the Powell River Regional District, then? A – According to our Financial Officer with the Ministry of Community, Sports and Cultural Development; In order to fall under the auspices of the PRRD, the PRRD would have to agree to that arrangement. Given the large scale of upgrades that are required on our water system, they are not currently interested in taking us on. The Provincial Government could compel them to take us, if we reached a crisis point with our water system. However, we are not currently at a crisis point. Even if the PRRD agreed to such an arrangement, the same work would still have to be done and Gillies Bay rate payers would have to pay for those upgrades. The difference would be access to grants and economies of scale. Q – If we’re not going to join the PRRD, then what can we do? A – The GBID has composed a letter for Gillies Bay residents to sign and mail to the Premier asking for the unfair legislature to be reworded to include Improvement Districts and put them on the same footing as Regional Districts and Municipalities. We have provided three possible solutions which would negate the benefits of joining the Regional District, while maintaining our autonomy and a more hands-on relationship with our tax dollars. In October, the Provincial Government gave the community of Sicamous $50,000 to help them with their water quality
are over 250 Improvement Districts in BC, and we need to join together to lobby for funding. The GBID will be sharing this letter with other Improvement Districts over the next few months. We can make a difference if we all join together in the hopes of making change! A copy of this letter is available in this month’s Express Lines. Please sign it and mail it to the Premier’s address (provided on the letter itself). Digital copies of the AquaVic Infrastructure Funding Report can be obtained on our website: www.gillies-bay.ca. Hard copies of the report can be obtained by attending our next meeting: December 11, 2012. If you cannot attend the meeting, please call our office to find out how to get a hard copy of the report. Due to the cost of mailing this large document, we would prefer to use email, our website, or distribution at meetings as much as possible.
GBID AGM – Chairs Report Page 14
Additional copies of the Letter to the Premier can be found on our website – we encourage Powell River residents to sign and mail this letter as well, as this is not just a Gillies Bay problem. Almost every water system in Canada is antiquated and in need of repairs that are beyond the capabilities of their budgets. Water is our most precious resource, and the Government of British Columbia needs to take this enormous problem seriously. We need more than simple access to grants – we need access to stronger purchasing power, better and more affordable insurance and debt financing options. This is all included in the letter. In order for this letter, we MUST rally together and turn a small voice from a small community, into a booming voice stretching province wide! At the October 23 2012 Special Meeting, the GBID presented the Infrastructure Funding Report by AquaVic Water Solutions Inc, where it was recommended that the GBID increase parcel taxes by $445/year per parcel plus 2% per year following, to adequately fund the repair and replacement of existing assets (pipes, fitting, equipment, etc) in
Questions and concerns were heard from rate payers at the meeting. Based on ratepayer input, the Board of Trustees decided to raise rates for 2013 by $225/year per parcel. Rates will increase again in 2014 by an additional $220/year per parcel. This will be a total increase of $445/year per parcel with 2% annual increases after that. The GBID has composed a letter to the Premier of BC asking for access to grants/funding. The letter can be found as a separate insert in this issue of the Express Lines. We are asking all residents of Texada (not just Gillies Bay) to please sign and send this letter to the address provided on the letter itself. This problem is not just isolated to Gillies Bay - all Improvement Districts are suffering the same neglect from our Provincial Government. The only hope we have, is to come together with one collective voice which our Government cannot ignore. For more information visit www.gillies-bay.ca or attend our next regular meeting on December 11, 2012 @ 7pm at the Gillies Bay Firehall. Digital copies of the AquaVic report can be found on our website; hard copies can be