GREATER VANCOUVER REGIONAL DISTRICT UTILITIES … · 2017. 7. 7. · $11,108,137 (exclusive of taxes) to the Phase A project consultant, Hatch Corporation, for the Annacis Water Supply

July 7, 2017

GREATER VANCOUVER REGIONAL DISTRICT

UTILITIES COMMITTEE

REGULAR MEETING

Thursday, July 13, 2017 9:00 am

2nd Floor Boardroom, 4330 Kingsway, Burnaby, British Columbia

A G E N D A1 1. ADOPTION OF THE AGENDA

1.1 July 13, 2017 Regular Meeting Agenda That the Utilities Committee adopt the agenda for its regular meeting scheduled for July 13, 2017 as circulated.

2. ADOPTION OF THE MINUTES

2.1 June 15, 2017 Regular Meeting Minutes

That the Utilities Committee adopt the minutes of its regular meeting held June 15, 2017 as circulated.

3. DELEGATIONS

4. INVITED PRESENTATIONS

5. REPORTS FROM COMMITTEE OR STAFF

5.1 Award of Contract Resulting from RFP No. 17-100: Construction Management

Services for the Second Narrows Water Supply Tunnel Project Designated Speakers: Roy Moulder and Frank Huber That the GVWD Board authorize: a) award of a contract in the amount up to $454,231 (exclusive of taxes) to Mott

MacDonald Canada Ltd. resulting from RFP No. 17-100 for Construction Management Services for the Second Narrows Water Supply Tunnel Project Phase 1 - Pre-Construction; and

b) the Commissioner and the Corporate Officer to execute the contract.

1 Note: Recommendation is shown under each item, where applicable.

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Utilities Committee Regular Agenda July 13, 2017

Agenda Page 2 of 3

5.2 Award of Contract Resulting from RFP No. 16-101: Supply and Delivery of Coagulant Aid Polymer to Seymour Capilano Filtration Plant Designated Speakers: Roy Moulder and Marilyn Towill That the GVWD Board authorize: a) award of a contract in the amount up to $5,040,000 (exclusive of taxes) to BASF

Canada Inc. resulting from RFP No. 16-101 for Supply and Delivery of Coagulant Aid Polymer to Seymour Capilano Filtration Plant; and


5.3 Effluent Heat Recovery at North Shore Wastewater Treatment Plant Designated Speaker: Jeff Carmichael That the GVS&DD Board: a) direct staff to enter into contract negotiations with Lonsdale Energy Corporation

for the sale of effluent heat; and b) authorize ADApT Consortium to proceed with the effluent heat recovery portion

of the NSWWTP project, subject to award of a contract with Lonsdale Energy Corporation for effluent heat sale.

5.4 2016 GVS&DD Environmental Management & Quality Control Annual Report

Designated Speaker: Andjela Knezevic-Stevanovic That the GVS&DD Board receive for information the report dated June 7, 2017, titled “2016 GVS&DD Environmental Management & Quality Control Annual Report”.

5.5 Staff Appointments as Board-designated Sewage Control Managers and Municipal Sewage Control Officers Designated Speaker: Ray Robb That the GVS&DD Board: a) appoint the following persons as municipal sewage control officers:

i. Donna Hargreaves, Permitting and Enforcement Officer, Metro Vancouver; ii. Maari Hirvi Mayne, Senior Project Engineer, Metro Vancouver; and

iii. Thomas Gallos, Environmental Protection Technician, City of Vancouver. b) rescind the appointments of the following persons as deputy sewage control

managers: i. Toivo Allas, Metro Vancouver; and

ii. David Robertson, Metro Vancouver. c) rescind the appointments of the following persons as municipal sewage control

officers: i. Terry Sunar, Metro Vancouver;

ii. Don Miller, Metro Vancouver; and iii. Francis Yuen, Metro Vancouver.

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Utilities Committee Regular Agenda July 13, 2017

Agenda Page 3 of 3

5.6 Managers’ Report Designated Speakers: Tim Jervis and Fred Nenninger That the Utilities Committee receive for information the “Managers’ Report” dated June 20, 2017.

6. INFORMATION ITEMS 7. OTHER BUSINESS

8. BUSINESS ARISING FROM DELEGATIONS

9. RESOLUTION TO CLOSE MEETING

10. ADJOURNMENT/CONCLUSION

That the Utilities Committee adjourn/conclude its regular meeting of July 13, 2017.

Membership: Mussatto, Darrell (C) – North Vancouver City Jordan, Colleen (VC) - Burnaby Becker, John – Pitt Meadows Clay, Mike – Port Moody Fox, Charlie – Langley Township

Gambioli, Nora –West Vancouver Hicks, Robin – North Vancouver District Johnstone, Patrick – New Westminster McDonald, Bruce – Delta

Speirs, Craig – Maple Ridge Stevenson, Tim – Vancouver Steves, Harold - Richmond Woods, Dave – Surrey

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METRO VANCOUVER REGIONAL DISTRICT UTILITIES COMMITTEE

Minutes of the Regular Meeting of the Metro Vancouver Regional District (MVRD) Utilities Committee held at 9:01 a.m. on Thursday, June 15, 2017 in the 2nd Floor Boardroom, 4330 Kingsway, Burnaby, British Columbia. MEMBERS PRESENT: Chair, Mayor Darrell Mussatto, North Vancouver City Vice Chair, Councillor Colleen Jordan, Burnaby Mayor John Becker, Pitt Meadows (arrived at 9:21 a.m.) Mayor Mike Clay, Port Moody Councillor Charlie Fox, Langley Township (departed at 11:10 a.m.) Councillor Nora Gambioli, West Vancouver Councillor Robin Hicks, North Vancouver District Councillor Patrick Johnstone, New Westminster Councillor Bruce McDonald, Delta Councillor Craig Speirs, Maple Ridge Councillor Tim Stevenson, Vancouver (arrived at 9:07 a.m.) Councillor Harold Steves, Richmond MEMBERS ABSENT: Councillor Dave Woods, Surrey STAFF PRESENT: Tim Jervis, General Manager, Water Services Fred Nenninger, Acting General Manager, Liquid Waste Services Carol Mason, Chief Administrative Officer Janis Knaupp, Assistant to Regional Committees, Board and Information Services 1. ADOPTION OF THE AGENDA

1.1 June 15, 2017 Regular Meeting Agenda It was MOVED and SECONDED That the Utilities Committee adopt the revised agenda for its regular meeting scheduled for June 15, 2017 as circulated.

CARRIED

Minutes of the Regular Meeting of the MVRD Utilities Committee held on Thursday, June 15, 2017 Page 1 of 7

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2. ADOPTION OF THE MINUTES 2.1 May 18, 2017 Regular Meeting Minutes

It was MOVED and SECONDED That the Utilities Committee adopt the minutes of its regular meeting held May 18, 2017 as circulated.

CARRIED 3. DELEGATIONS

No items presented.

4. INVITED PRESENTATIONS No items presented.

5. REPORTS FROM COMMITTEE OR STAFF

5.1 Regional Water Conservation Campaign – Phase 3 Update Report dated June 6, 2017 from Larina Lopez, Corporate Communications Division Manager, External Relations, providing an update on the third phase of Metro Vancouver’s regional water conservation campaign, We Love Water. Members were provided with a presentation on an update to the 2017 Regional Water Conservation Campaign.

9:07 a.m. Councillor Stevenson arrived at the meeting.

Presentation material titled “Regional Water Conservation 2017 Campaign Update” is retained with the June 15, 2017 Utilities Committee agenda. It was MOVED and SECONDED That the GVWD Board receive for information the report dated June 6, 2017, titled “Regional Water Conservation Campaign – Phase 3 Update.”

CARRIED 9:21 a.m. Mayor Becker arrived at the meeting.

5.2 Water Shortage Response Plan Review Report dated June 7, 2017 from Inder Singh, Policy, Planning and Analysis Director, and Nermine Tawfik, Public Involvement Policy Coordinator, Water Services, providing a summary of the consultation on the proposed amendments to the Water Shortage Response Plan, the final proposed amendments to the Plan, the revised Plan, and a supporting Board policy. Members were provided with a presentation on the review of the Water Shortage Response Plan.


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It was MOVED and SECONDED That the GVWD Board: a) approve the revised Drinking Water Conservation Plan (formerly titled the

Water Shortage Response Plan), to take effect on November 1, 2017, as presented in the report dated June 7, 2017, titled “Water Shortage Response Plan Review”; and

b) approve the Drinking Water Conservation Plan Policy, as presented in the report.

CARRIED

5.3 Award of Contract Resulting from Tender No. 17-011: Installation of Braid Street Main No. 2 Report dated May 15, 2017 from Roy Moulder, Purchasing and Risk Management Division Manager, Financial Services, and Goran Oljaca, Engineering and Construction Director, Water Services, advising of the results of Tender No. 17-011, Installation of Braid Street Main No. 2 and seeking GVWD Board authorization to award the contract, in the amount up to $6,146,290 (exclusive of taxes), to Sandpiper Contracting LLP. It was MOVED and SECONDED That the GVWD Board authorize: a) award of a contract in the amount up to $6,146,290 (exclusive of taxes) to

Sandpiper Contracting LLP resulting from Tender No. 17-011 for the installation of Braid Street Main No. 2; and

b) the Commissioner and the Corporate Officer to execute the contract. CARRIED

Councillor Gambioli absent at the vote.

5.4 Award of Contract Resulting from RFP No. 17-034: Engineering Services for the Kennedy Newton Main and Annacis Main No. 5 South Report dated May 25, 2017 from Roy Moulder, Purchasing and Risk Management Division Manager, Financial Services, and Goran Oljaca, Engineering and Construction Director, Water Services, advising of the results of RFP No. 17-034, Engineering Services for the Kennedy Newton Main and Annacis Main No. 5 South and seeking GVWD Board authorization to award the contract for Phase A, Preliminary Design in the amount up to $997,281 (exclusive of taxes) to CH2M Hill Canada Limited. Board approval to award subsequent phases of work will be sought at a later date. It was MOVED and SECONDED That the GVWD Board authorize: a) award of a contract in the amount up to $997,281 (exclusive of taxes) to CH2M

Hill Canada Limited for Phase A, Preliminary Design, resulting from RFP No. 17-034, Engineering Services for the Kennedy Newton Main and Annacis Main No. 5 South; and


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b) the Commissioner and the Corporate Officer to execute the contract. CARRIED

Councillor Gambioli absent at the vote.

5.5 Award of Phase B, Detailed Design Engineering Services for the Annacis Water Supply Tunnel Project Report dated May 19, 2017 from Roy Moulder, Purchasing and Risk Management Division Manager, Financial Services, and Murray Gant, Major Projects Program Manager, Water Services, seeking GVWD Board authorization to award Phase B – Detailed Design Engineering Services to the Phase A project consultant, Hatch Corporation, for the Annacis Water Supply Tunnel Project, in an amount up to $11,108,137 (exclusive of taxes). Members were provided with a presentation on the Annacis Water Supply Tunnel Project. Presentation material titled “Annacis Water Supply Tunnel” is retained with the June 15, 2017 Utilities Committee agenda. It was MOVED and SECONDED That the GVWD Board authorize: a) award of Phase B, Detailed Design Engineering Services, in the amount up to

$11,108,137 (exclusive of taxes) to the Phase A project consultant, Hatch Corporation, for the Annacis Water Supply Tunnel Project; and

b) the Commissioner and the Corporate Officer to execute the required documentation.

CARRIED Councillor Speirs absent at the vote.

5.6 Status of Utilities Capital Expenditures to April 30, 2017

Report dated May 19, 2017 from Frank Huber, Management Systems and Utility Services Major Projects Director, Water Services, and Mark Ferguson, Project Delivery Director, Liquid Waste Services, reporting on the status of utilities capital expenditures to April 30, 2017. Members were provided with a presentation on an update to capital expenditures to April 30, 2017. In response to questions, members were informed about the short and long term financial planning process for utilities capital projects. Presentation material titled “Capital Expenditure Summary” is retained with the June 15, 2017 Utilities Committee agenda.


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It was MOVED and SECONDED That the Utilities Committee receive for information the report dated May 19, 2017 titled “Status of Utilities Capital Expenditures to April 30, 2017”.

CARRIED

5.7 Liquid Waste Heat Recovery Policy Report dated June 1, 2017 from Jeff Carmichael, Utility Research and Innovation Division Manager, Liquid Waste Services, seeking GVS&DD Board approval of the Liquid Waste Heat Recovery Policy, to replace the existing Sewer Heat Policy. It was MOVED and SECONDED That the GVS&DD Board approve the Liquid Waste Heat Recovery Policy, which replaces the Sewer Heat Policy, as presented in the report dated June 1, 2017 and titled “Liquid Waste Heat Recovery Policy”.

CARRIED

5.8 Fraser Sewerage Area Amendment – Nordel Way Business Park and 5224 88th Street, Corporation of Delta Report dated May 11, 2017 from Ed von Euw, Senior Engineer, Policy Planning and Analysis, Liquid Waste Services, in response to a request from the Corporation of Delta, seeking GVS&DD Board approval to amend the Fraser Sewerage Area to include the properties in the Nordel Way Business Park and at 5224 88th Street in Delta as shown on DWG SA-2376 Sheets 91 and 92. It was MOVED and SECONDED That the GVS&DD Board approve an amendment of the Fraser Sewerage Area to include properties located at the Nordel Way Business Park and 5224 88th Street, Delta as shown on District Drawings SA-2376 Sheets 91 and 92.

CARRIED

5.9 Fraser Sewerage Area Amendment – 2919 and 2967 188th Street, Surrey Report dated May 11, 2017 from Mark Wellman, Senior Project Engineer, Policy Planning and Analysis, Liquid Waste Services, in response to a request from the City of Surrey, seeking GVS&DD Board approval to amend the Fraser Sewerage Area to include additional portions of the properties at 2919 and 2967 188th Street in Surrey. It was MOVED and SECONDED That the GVS&DD Board approve an amendment of the Fraser Sewerage Area to include the portions of the properties located at 2919 and 2967 188th Street, Surrey as shown on District Drawing SA-2376 Sheet 93.

CARRIED

5.10 Biennial Report - Integrated Liquid Waste and Resource Management Plan Report dated June 5, 2017 from Robert Hicks, Senior Engineer, Liquid Waste Services, seeking GVS&DD Board approval of the Biennial Report 2015-2016:


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Integrated Liquid Waste and Resource Management: A Liquid Waste Management Plan for the Greater Vancouver Sewerage & Drainage District and Member Municipalities, May 2017, for submission to the Province in accordance with the requirements of the Metro Vancouver’s Integrated Liquid Waste and Resource Management Plan (ILWRMP). Members were provided with a presentation on the ILWRMP Biennial Report highlighting 2015 and 2016 activities.

Presentation material titled “Biennial Report Integrated Liquid Waste and Resource Management Plan” is retained with the June 15, 2017 Utilities Committee agenda. It was MOVED and SECONDED That the GVS&DD Board direct staff to: a) submit the Biennial Report 2015-2016, dated May 2017, to the Ministry of

Environment in accordance with the requirements of the Integrated Liquid Waste and Resource Management Plan; and

b) post the Biennial Report on the Metro Vancouver website and arrange for the Utilities Committee to receive comments and submissions on the Integrated Liquid Waste and Resource Management Plan progress, as described in the Biennial Report, at the September 14, 2017 meeting.

CARRIED Mayor Clay absent at the vote.

11:10 a.m. Councillor Fox departed the meeting.

5.11 Managers’ Report

Report dated June 6, 2017 from Tim Jervis, General Manager, Water Services, and Fred Nenninger, Acting General Manager, Liquid Waste Services, updating the Utilities Committee on the Committee’s 2017 Work Plan.

It was MOVED and SECONDED That the Utilities Committee receive for information the “Managers’ Report” dated June 6, 2017.

CARRIED

6. INFORMATION ITEMS No items presented. 7. OTHER BUSINESS

No items presented.

8. BUSINESS ARISING FROM DELEGATIONS No items presented.


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9. RESOLUTION TO CLOSE MEETING

It was MOVED and SECONDED That the Utilities Committee close its regular meeting scheduled for June 15, 2017 pursuant to Community Charter provisions, Section 90 (1) (e) and 90 (2) (b) as follows: “90 (1) A part of the meeting may be closed to the public if the subject matter being

considered relates to or is one or more of the following: (e) the acquisition, disposition or expropriation of land or improvements, if

the board or committee considers that disclosure could reasonably be expected to harm the interests of the regional district”; and

90 (2) A part of the meeting must be closed to the public if the subject matter being considered relates to or is one or more of the following: (b) the consideration of information received and held in confidence relating

to negotiations between the regional district and a provincial government or the federal government or both and a third party.”

CARRIED 10. ADJOURNMENT/CONCLUSION

It was MOVED and SECONDED That the Utilities Committee adjourn its regular meeting of June 15, 2017.

CARRIED (Time: 11:14 a.m.)

____________________________ ____________________________ Janis Knaupp, Darrell Mussatto, Chair Assistant to Regional Committees 21963281 FINAL


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5.1

To: Utilities Committee From: Roy Moulder, Division Manager, Purchasing and Risk Management, Financial Services

Frank Huber, Director, Major Projects, Management Systems and Utility Services, Water Services

Date: June 12, 2017 Meeting Date: July 13, 2017 Subject: Award of Contract Resulting from RFP No. 17-100: Construction Management

Services for the Second Narrows Water Supply Tunnel Project RECOMMENDATION That the GVWD Board authorize: a) award of a contract in the amount up to $454,231 (exclusive of taxes) to Mott MacDonald Canada

Ltd. resulting from RFP No. 17-100 for Construction Management Services for the Second Narrows Water Supply Tunnel Project Phase 1 - Pre-Construction; and

b) the Commissioner and the Corporate Officer to execute the contract. PURPOSE This report is to advise the GVWD Board of the results of RFP No. 17-100: Construction Management Services for the Second Narrows Water Supply Tunnel Project and to recommend award of a contract for Phase 1 – Pre-Construction in the amount up to $454,231 (exclusive of taxes) to Mott MacDonald Canada Ltd. (Mott MacDonald). BACKGROUND Pursuant to the GVWD Officers and Delegation Bylaw No. 247, 2014 (Bylaw) and the Procurement and Real Property Contracting Authority Policy (Policy), procurement contracts which exceed a value of $5 million require the approval of the GVWD Board of Directors. For multi-phase consultancy contracts, the Policy provides that the value of the contract is the anticipated total value of the services to be provided over all phases, excluding taxes. This report is being brought forward to consider a recommendation to award a contract for construction management services to be undertaken for the Second Narrows Water Supply Tunnel (SNWST) project. PROJECT DESCRIPTION The SNWST will replace three existing marine crossings of Burrard Inlet and provide improved seismic resiliency for the GVWD’s water transmission system, increased capacity to meet future demand, and long term scour protection. The existing Second Narrows Crossings No. 1, 2, and 3, constructed in 1948, 1954, and 1978, respectively, cross under Burrard Inlet between North Vancouver and Burnaby and are buried in relatively shallow trenches, covered with riprap scour protection. Previous seismic vulnerability studies found that the existing crossings are vulnerable to failure during a moderate earthquake.

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Award of Contract Resulting from RFP No. 17-100: Construction Management Services for the Second Narrows Water Supply Tunnel Project

Utilities Committee Meeting Date: July 13, 2017 Page 2 of 4

Construction management services are required by the Corporation to oversee the project team with the goal of effectively managing the schedule, budget and technical requirements. The construction management consultant is to apply and integrate comprehensive project controls to manage schedule, cost, scope, quality, risk, and safety. Some of the key construction management services include: performing contract administration duties, monitoring and documenting daily construction progress, managing and tracking submittals and RFI’s, and assisting in dispute resolution. The required scope of work of construction management services has been divided into three phases as follows:

Phase 1: Pre-Construction • Prepare a Construction Management Manual • Review all design and contract documents • Conduct a constructability review • Review the construction schedule • Assist in risk allocation • Assist in contractor RFQ and RFP processes • Develop a health and safety plan.

Phase 2: Construction Activities/Contract Administration • Provide full-time on-site construction management and contract administration duties • Document management • Cost control • Document construction progress and activities and provide regular progress reports • Facilitate regular site meetings • Liaise with permitting agencies and monitor compliance with permit conditions • Assist with claims and dispute resolution.

Phase 3: Post-Construction Activities • Prepare contract completion report • Coordinate compilation of record drawings • Resolve outstanding claims • Conduct and document a formal Lessons Learned task.

Request for Proposal RFP No. 17-100 was issued on March 21, 2017 and was publicly advertised on Metro Vancouver and BC Bid websites. The RFP closed on April 27, 2017 and proposals were received from four firms as summarized in Table 1:

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Table 1: Proposal Submission Summary

Proponent Phase 1: Pre-Construction Phase 2:

Construction Phase 3:

Post Construction Total Cost

(excluding taxes) Mott MacDonald Canada Ltd. $500,907 $10,146,478 $514,442 $11,161,827

Hatch Corporation $570,085 $8,865,021 $409,097 $9,844,203

McMillen Jacobs Associates $594,112 $11,264,587 $589,294 $12,447,993

Ausenco Engineering $884,477 $12,057,934 $604,692 $13,547,103

Evaluation of the proposals was based on the selection criteria identified in the RFP. The technical component of the proposals was evaluated by staff from Water Services and the financial component was evaluated by staff from the Purchasing and Risk Management Division. Mott MacDonald was identified as the highest ranked proponent. Their proposal demonstrated a thorough understanding of the key issues, a well thought-out and detailed methodology along with an appropriate, experienced team. The Mott MacDonald team has expertise in geotechnical engineering, shaft construction, and pressurized-face tunnel boring under high pressure conditions, which is relevant to provide effective construction management services for the project. In addition, Mott MacDonald are already familiar with the challenges associated with the SNWST, having completed the preliminary design. Following identification of the highest ranked proposal, negotiations ensued with Mott MacDonald as allowed for in the RFP. As a result of the negotiations, the cost of the services to be provided during Phase 1 was reduced by $46,676 to $454,231 resulting in a final proposal price of $11,115,151. It is intended that Phase 1 be awarded at this time and Phases 2 and 3 be awarded subject to satisfactory performance of work under Phase 1, and after further authorization from the Board. ALTERNATIVES 1. That the GVWD Board authorize:

a) award of a contract in the amount up to $454,231 (exclusive of taxes) to Mott MacDonald Canada Ltd. resulting from RFP No. 17-100 for Construction Management Services for the Second Narrows Water Supply Tunnel Project Phase 1 - Pre-Construction; and


2. That the GVWD Board terminate RFP No. 17-100: Construction Management Services for the Second Narrows Water Supply Tunnel Project, and direct staff to report back to the GVWD Board with options for an alternate course of action.

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FINANCIAL IMPLICATIONS If the GVWD Board approves Alternative 1, a contract will be awarded to Mott MacDonald Canada Ltd. in the amount up to $454,231 (exclusive of taxes) for Phase 1 - Pre-Construction. This amount is within the budget allocated for the project. The RFP contemplates additional phases of the work and the overall estimated value of the contract is $11,115,151 (exclusive of taxes). It is expected that subsequent phases of the work will be awarded to Mott MacDonald subject to satisfactory completion of Phase 1 at which time the total cost and details of the subsequent phases of the work will be finalized. Award of subsequent phases will require GVWD Board approval pursuant to the provisions of the Procurement and Real Property Contracting Authority Policy. The GVWD Board has the choice not to proceed with Alternative 1 but staff would need further direction in relation to the project. Alternative 2 will result in a delay to the project schedule and is anticipated to add additional costs to the overall project. SUMMARY / CONCLUSION A construction management consultant is required for the Second Narrows Water Supply Tunnel Project to oversee and ensure the successful execution of this technically challenging and complex project that involves tunnelling deep under Burrard Inlet. A Request for Proposal was issued for construction management services for the SNWST Project. Mott MacDonald Canada Ltd. was identified as the highest ranked proponent and the cost is within the budget allocated for the project. Based on the evaluation of the proposals in response to RFP No. 17-100: Construction Management Services for the Second Narrows Water Supply Tunnel Project, it is recommended that the GVWD Board authorize the award of a contract to Mott MacDonald in the amount up to $454,231 (exclusive of taxes) for Phase 1 - Pre-Construction and the Commissioner and Corporate Officer to execute the contract. 21733028

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To: Utilities Committee From: Roy Moulder, Division Manager, Purchasing & Risk Management, Financial Services

Marilyn Towill, Director - Operations & Maintenance, Water Services Date: June 12, 2017 Meeting Date: July 13, 2017 Subject: Award of Contract Resulting from RFP No. 16-101: Supply and Delivery of Coagulant

Aid Polymer to Seymour Capilano Filtration Plant RECOMMENDATION That the GVWD Board authorize: a) award of a contract in the amount up to $5,040,000 (exclusive of taxes) to BASF Canada Inc.

resulting from RFP No. 16-101 for Supply and Delivery of Coagulant Aid Polymer to Seymour Capilano Filtration Plant; and

b) the Commissioner and the Corporate Officer to execute the contract. PURPOSE This report is to advise the GVWD Board of the results of the Request for Proposal RFP No. 16-101 for the Supply and Delivery of Coagulant Aid Polymer to the Seymour Capilano Filtration Plant (SCFP) and to recommend the award in the amount up to $5,040,000 (exclusive of taxes) to BASF Canada Inc. BACKGROUND Pursuant to the Officers and Delegation Bylaw No. 247, 2014 (Bylaw) and the Procurement and Real Property Contracting Authority Policy (Policy), procurement contracts which exceed a value of $5 million require the approval of the Board of Directors. For contracts with multi-year extensions, the value of the contract is the anticipated total value over all years, excluding taxes. This report is being brought forward to consider a recommendation to award a contract for the Supply and Delivery of Coagulant Aid Polymer to SCFP. PROJECT DESCRIPTION Coagulant Aid Polymer is a water treatment chemical used prior to the filters to enhance filtration performance at the SCFP. RFP No. 16-101 for the Supply and Delivery of Coagulant Aid Polymer to SCFP was publicly advertised on the Metro Vancouver and BC Bid websites on May 9, 2016. The RFP closed on June 16, 2016 with submissions from three proponents: BASF Canada Inc., Brenntag and SNF Canada. The RFP was issued as a three (3) year supply and delivery contract with an option to extend for an additional two (2) one (1) year periods. A technical and financial evaluation was undertaken for all proponents, including bench, pilot plant and full scale testing of the polymers at SCFP over a nine month period to encompass seasonal variations in raw water quality and temperature. The polymer proposed by SNF Canada did not pass

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Award of Contract Resulting from RFP No. 16-101: Supply and Delivery of Coagulant Aid Polymer to Seymour Capilano Filtration Plant


the full scale testing and was not considered further. The polymer proposed by BASF Canada Inc. is the highest ranked and had the lowest cost. A summary of the costs of the compliant proposals (exclusive of taxes) is as follows:

Company Total Proposed Cost for 5 years of Supply (exclusive of taxes)

BASF Canada Inc.

$ 5,040,000

Brenntag

$ 6,057,780

The unit cost per tonne for Coagulant Aid Polymer proposed by BASF Canada Inc. for the first year is approximately 7% less than previous Coagulant Aid Polymer contract. ALTERNATIVES 1. That the GVWD Board authorize:

a) award of a contract in the amount up to $5,040,000 (exclusive of taxes) to BASF Canada Inc. resulting from RFP No. 16-101 for Supply and Delivery of Coagulant Aid Polymer to Seymour Capilano Filtration Plant; and


2. That the GVWD Board terminate RFP No. 16-101 for the Supply and Delivery of Coagulant Aid Polymer to Seymour Capilano Filtration Plant, and direct staff to report back to the GVWD Board with options for an alternate course of action.

FINANCIAL IMPLICATIONS If the GVWD Board approves Alternative 1, a contract will be awarded to BASF Canada Inc. in the amount up to $2,940,000 (exclusive of taxes) for the initial three (3) year term with an amount up to $2,100,000 for the optional two (2) one (1) year extensions. This total amount is within the approved budget. The proposal submitted by BASF Canada Inc. is the highest ranked and has the lowest cost. The GVWD Board has the choice not to proceed with Alternative 1 but staff will need further direction in relation to the procurement process. Continuous uninterrupted supply of Coagulant Aid Polymer is critical for the water treatment process at SCFP. SUMMARY / CONCLUSION RFP No. 16-101 was issued for the Supply and Delivery of Coagulant Aid Polymer to the Seymour Capilano Filtration Plant (SCFP). The Proposal from BASF Canada Inc. is the highest ranked, has the lowest cost and met all the requirements of the RFP. It is recommended that in response to RFP No. 16-101, the GVWD Board authorize the Commissioner and the Corporate Officer to award and execute a contract to BASF Canada Inc. for the Supply and Delivery of Coagulant Aid Polymer to SCFP in the amount up to $5,040,000 (exclusive of taxes). 21609902

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To: Utilities Committee From: Jeff Carmichael, Division Manager, Utility Research and Innovation, Liquid Waste

Services Date: July 6, 2017 Meeting Date: July 13, 2017 Subject: Effluent Heat Recovery at North Shore Wastewater Treatment Plant RECOMMENDATION That the GVS&DD Board: a) direct staff to enter into contract negotiations with Lonsdale Energy Corporation for the sale of

effluent heat; and b) authorize ADApT Consortium to proceed with the effluent heat recovery portion of the NSWWTP

project, subject to award of a contract with Lonsdale Energy Corporation for effluent heat sale. PURPOSE The purpose of this report is to seek GVS&DD Board authorization to proceed with effluent heat recovery as part of the North Shore Wastewater Treatment Plant (NSWWTP) project and to seek authorization to negotiate a contract with Lonsdale Energy Corporation for the sale of effluent heat from the NSWWTP that acquires enough greenhouse gas (GHG) reduction credits to make the Liquid Waste utility carbon neutral. BACKGROUND In April 2017, the Design-Build-Finance contract for the NSWWTP was awarded to ADApT Consortium for $525 million. Effluent heat recovery was included in the Design-Build-Finance contract as an optional item. GVS&DD has until October 5, 2017 to exercise the optional item and direct ADApT Consortium to design and construct the effluent heat recovery system. The NSWWTP has the potential to be a net producer of energy by implementing effluent heat recovery. The GVS&DD’s Liquid Waste utility has the opportunity to reduce its carbon footprint to zero if GVS&DD commits to effluent heat recovery at NSWWTP. This report brings forward for Board consideration approval of the NSWWTP optional project to design and build an effluent heat recovery system, which would proceed once a contract with the Lonsdale Energy Corporation has been approved by the Board. BUSINESS CASE Effluent heat recovery has the potential to contribute to the goals of the Integrated Liquid Waste and Resource Management Plan, which directs Metro Vancouver to use liquid waste as a resource and to evaluate opportunities for energy recovery from major wastewater treatment plant projects. Effluent heat recovery contributes to the goals of the NSWWTP project and has been highlighted in the descriptions of the plant that resulted in the federal and provincial governments committing significant funding towards the NSWWTP.

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Effluent Heat Recovery at North Shore Wastewater Treatment Plant Utilities Committee Meeting Date: July 13, 2017

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For effluent heat recovery to be financially viable, a nearby customer must be willing to purchase the energy. Lonsdale Energy Corporation (LEC), a district energy provider wholly owned by the City of North Vancouver, was the only respondent to a Request for Qualifications and Interest in 2014. Metro Vancouver staff and LEC staff have subsequently been investigating technical and commercial considerations of providing effluent heat from the NSWWTP to LEC’s district energy system. Cost Estimates ADApT Consortium provided a guaranteed cost of $13,245,668 to build the effluent heat recovery system within the NSWWTP and a monthly cost of $223,320 for up to 12 months during the performance period, for a total rounded cost of $15,926,000. If the project proceeds, an additional $2,000,000 will be required for BC Hydro infrastructure, for a total GVS&DD investment of $17,926,000. LEC would be required to spend an estimated $3,543,000 to install distribution piping from the NSWWTP to the LEC district energy system to be able to receive the effluent heat. In total, the cost for the project is $21,469,000. Operating costs over the project life would be recovered from LEC. Greenhouse Gas Emission Reductions It is projected that the effluent heat recovery project will reduce GHG emissions by over 7,000 tonnes per year on average over the 25-year project life. These reductions will be achieved by displacing the use of natural gas in LEC’s district energy system. Following the guidelines in the Liquid Waste Heat Recovery Policy (Attachment 1), GHG reductions are proposed to be allocated in proportion to respective contributions to project costs, as indicated in Table 1. An estimated 16 per cent of GHG reductions will be allocated to LEC based on their capital expenditure. BC Hydro has indicated intent to contribute up to $1,000,000 to the effluent heat project in return for GHG emission reduction credits, which amounts to 5 per cent of the GHG reductions. Confirmation of BC Hydro funding is expected by September 2017. The remaining 79 per cent of GHG reductions, approximately 5,700 tonnes per year, will be allocated to GVS&DD based on its net capital contribution of $16,926,000.

Table 1. Estimated GHG allocation based on contributions to project cost Capital commitment GHG allocation Average annual GHG

reduction credits GVS&DD $16,926,000 79% 5,700 tonnes CO2e/yr LEC $3,543,000 16% 1,200 tonnes CO2e/yr BC Hydro $1,000,000 5% 300 tonnes CO2e/yr

Carbon Neutral Commitments In the 2010 Corporate Climate Action Plan, Metro Vancouver committed to becoming carbon neutral by reducing corporate emissions, providing renewable energy to other parties to avoid emissions in the region, sequestering carbon, and as a last resort, purchasing or creating offset credits. The anticipated reduction in GHG emissions from Metro Vancouver’s existing portfolio of projects is not sufficient to achieve corporate carbon neutrality. New sources of GHG reductions are required. Effluent heat recovery at NSWWTP is the first major GHG reduction project within Metro Vancouver’s operations that is ready to be implemented and is cost-effective due to efficiencies of coordination with the construction of the NSWWTP and its proximity to LEC’s district energy system.

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Metro Vancouver’s corporate carbon footprint for all energy and transportation related emissions is approximately 20,000 tonnes CO2e per year, of which 5,000 tonnes are from the Liquid Waste utility. These emissions are projected to increase after the secondary upgrades of the North Shore and Iona Island Wastewater Treatment Plants. GVS&DD would receive GHG reductions of over 5,000 tonnes per year as soon as the NSWWTP is commissioned by investing in the effluent heat project. This would make the Liquid Waste utility carbon neutral starting in 2021. The cost of investing in these GHG reductions is $120/tonne. This cost is lower than the price of $150/tonne established in the Carbon Price Policy (Attachment 2), showing that this is a cost-effective GHG reduction project. Based on the business case analysis, including opportunities to reduce overall GHG emissions in the region, the following alternatives are presented for consideration. ALTERNATIVES 1. That the GVS&DD Board:

a) direct staff to enter into contract negotiations with Lonsdale Energy Corporation for the sale of effluent heat; and

b) authorize ADApT Consortium to proceed with the effluent heat recovery portion of the NSWWTP project, subject to award of a contract with Lonsdale Energy Corporation for effluent heat sale.

2. That the GVS&DD Board authorize ADApT Consortium to proceed with the effluent heat recovery

portion of the NSWWTP project.

3. That the GVS&DD Board receive for information the report dated July 6, 2017, titled “Effluent Heat Recovery at North Shore Wastewater Treatment Plant” and provide alternate direction.

FINANCIAL IMPLICATIONS If the Board approves Alternative 1, GVS&DD would commit $17,926,000 for the effluent heat recovery project. Of that, $15,926,000 would be to the ADApT Consortium to build and commission the effluent heat recovery facility, and $2,000,000 for associated BC Hydro infrastructure. These costs would be partially offset by grant contributions from BC Hydro of up to $1,000,000 toward the project. GVS&DD would also acquire associated GHG reduction credits. All operating costs for effluent heat recovery over the life of the project would be recovered from LEC. The NSWWTP project has a total budget of $700 million including contingency and committed funding from the federal and provincial governments of $405 million. The effluent heat recovery project is an optional item that will be added to the NSWWTP project, in addition to the $700 million. However, it is possible that some or all of the cost of the optional effluent heat recovery project may be accommodated within the $700 million NSWWTP budget depending on final outcome on expenditures from the project contingency. If required to support the project, additional funds of up to $17,926,000 will be included within the 2018-2022 Financial Plan. The capital expenditure will be contingent on successful negotiation of a contract with Lonsdale Energy Corporation for the sale of effluent heat. The contract would allocate the GHG reduction credits based on respective contributions to project costs. If the recommendation is supported by the Board, the proposed contract with LEC will be presented to the Board for approval at the September Board meeting. The contract must be executed before the October 5, 2017 deadline to exercise the UC-19


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optional item for ADApT Consortium to proceed with design and construction of the effluent heat recovery system. If the Board approves Alternative 2, GVS&DD would make a commitment of $17,926,000, less any grant contributions from BC Hydro, to build and commission the effluent heat recovery project without requiring a contract for sale of effluent heat to be in place. The risk exists that no effluent heat contract would be awarded, and consequently that the equipment would never be beneficially used and is not recommended. SUMMARY / CONCLUSION In April 2017, the Design-Build-Finance contract for the NSWWTP was awarded to ADApT Consortium for $525 million. Effluent heat recovery was included in the Design-Build-Finance contract as an optional item. GVS&DD has until October 5, 2017 to exercise the optional item and direct ADApT Consortium to design and construct the effluent heat recovery system. The NSWWTP has the potential to be a net producer of energy by implementing effluent heat recovery. The GVS&DD’s Liquid Waste utility has the opportunity to reduce its carbon footprint to zero if the GVS&DD invests in effluent heat recovery at NSWWTP. Metro Vancouver’s corporate carbon footprint is approximately 20,000 tonnes per year, of which 5,000 tonnes are from the Liquid Waste utility. Metro Vancouver has committed to becoming carbon neutral and needs new sources of GHG reductions to achieve this commitment. Implementing effluent heat recovery at NSWWTP would result in GHG emission reductions of more than 7,000 tonnes annually. GHG reduction credits from the project will be allocated in proportion to respective contributions to project costs. GVS&DD can achieve carbon neutrality for the Liquid Waste utility starting in 2021 by investing in the NSWWTP effluent heat recovery project. The investment would acquire an annual average of 5,700 tonnes of GHG reductions. The cost of achieving the GHG reductions is $120/tonne which is considered cost-effective. Staff recommend Alternative 1. Attachments 1. Liquid Waste Heat Recovery Policy 2. Carbon Price Policy

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21510594 (version 1) Liquid Waste Heat Recovery Page 1 of 2

LIQUID WASTE HEAT RECOVERY Effective Date: June 23, 2017 Approved By: GVS&DD Board

PURPOSE

To enable beneficial use of waste heat and associated greenhouse gas emission reductions from Metro Vancouver’s liquid waste system by external parties.

DEFINITIONS

“Waste heat” is excess heat that is available from GVS&DD operations, including but not limited to heat from untreated sewage, treated effluent, equipment or processes.

“Heat user” is a third party interested in accessing excess heat from GVS&DD’s liquid waste system. A heat user may be a member municipality or other entity.

POLICY

Metro Vancouver is committed to pursuing strategies and actions that mitigate climate change. Waste heat recovery projects that displace the use of fossil fuels result in a reduction in regional greenhouse gas emissions. Recovering waste heat from the liquid waste system contributes to GVS&DD’s Integrated Liquid Waste and Resource Management Plan goal of using waste as a resource.

This policy enables expedient access to waste heat where technically and financially feasible while ensuring that GVS&DD is able to convey and treat wastewater and meet all service objectives. This policy applies to situations where external parties request waste heat from GVS&DD’s liquid waste system and to situations where GVS&DD offers waste heat to interested external parties.

COLLECTION SYSTEM PROJECTS

Allocation of Waste Heat GVS&DD will allocate access to untreated sewage for heat recovery on a first-come first-served basis in response to requests by interested heat users, provided the proposed heat recovery project will not adversely impact GVS&DD services or other established heat recovery projects, as determined by GVS&DD review. If an established heat recovery project that is already in place or approved for development by GVS&DD could be impacted by a proposed new heat recovery project, the established project’s heating and/or cooling requirements will have priority. Private entities requesting access to waste heat must provide a letter of support from the host municipality demonstrating support and cooperation including allowance for works within municipal rights of way. Projects that access heat from municipal sewers do not require GVS&DD approval.

Ownership and Responsibilities GVS&DD owns a sewerage system and is responsible for sewage in its liquid waste system, including any associated resources such as heat. The boundaries of responsibility for heat recovery equipment and infrastructure are primarily tied to property ownership and will be defined in a contract between

BOARD POLICYATTACHMENT 1

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BOARD POLICY

21510594 Liquid Waste Heat Recovery Page 2 of 2

GVS&DD and the heat user. GVS&DD will own and be responsible for the portion of the tie-in up to and including a shut-off valve on both the diversion and return lines. GVS&DD will consider an in-line heat recovery system built directly in a GVS&DD sewer if the system will not impair GVS&DD operations.

Cost Recovery GVS&DD will charge the heat user for all costs incurred to establish and maintain access to sewage. The value of sewage will be assessed using business case processes, including consideration of nominal value of sewage, and incorporated into sewage access contracts.

Environmental Attributes Benefits associated with greenhouse gas reductions (such as carbon offset credits) and the costs of administering those benefits will be allocated on a case-by-case basis, in accordance with the costs and risks incurred by the parties involved in developing the heat recovery project. TREATMENT PLANT AND OUTFALL PROJECTS

Allocation of Waste Heat When GVS&DD identifies waste heat opportunities in wastewater treatment plants and effluent outfalls, GVS&DD will follow competitive processes in offering available waste heat to potential heat users, to ensure fairness and transparency. Ownership and Responsibilities The boundaries of responsibility for heat recovery equipment and infrastructure are primarily tied to property ownership and will be defined in a contract between GVS&DD and the heat user. GVS&DD will own and be responsible for waste heat recovery equipment and related infrastructure installed within its wastewater treatment plants and effluent outfalls, except in cases where ownership by an external party is deemed preferable to the GVS&DD. Cost Recovery Heat recovery projects within wastewater treatment plants and effluent outfalls will require capital investment by GVS&DD and will require ongoing operations and maintenance by GVS&DD. GVS&DD will recover the costs incurred in providing waste heat to external parties over the life of the project. GVS&DD does not seek to profit from the provision of heat. GVS&DD staff will evaluate heat recovery projects using established life cycle cost analysis and options analysis frameworks and will consider each project on a case by case basis. Benefits will include the value of avoided greenhouse gas emissions. A contract with the heat user will be established for each project that assigns the costs and benefits between GVS&DD, the heat user and other funding sources. Environmental Attributes Benefits associated with greenhouse gas reductions (such as carbon offset credits) and the costs of administering those benefits will be allocated on a case-by-case basis, in accordance with the costs and risks incurred by the parties involved in developing the heat recovery project.

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18741222 (version 1) Carbon Price Policy Page 1 of 2

CARBON PRICE Effective Date: June 23, 2017 Approved By: MVRD Board

PURPOSE

To establish a price on Applicable Greenhouse Gas (GHG) Emissions, and to enable the value of those GHG emissions to be incorporated into Life Cycle Cost Analyses for Metro Vancouver projects or initiatives.

The objectives of the Carbon Price Policy are to:

Incorporate consideration of climate change mitigation (i.e., GHG emissions reduction) intooptions analyses for all Metro Vancouver projects or initiatives; and

Provide a mechanism to reduce financial risk of increased operating costs associated withrising external carbon taxes over the lifetime of a Metro Vancouver project or initiative.

DEFINITIONS

“Applicable Greenhouse Gas (GHG) Emissions” are GHG emissions associated with Metro Vancouver projects or initiatives, in particular GHG emissions related to energy use and utility processes, and GHG emissions reductions (or avoided GHG emissions) related to ecological carbon storage/sequestration.

“Carbon dioxide equivalent (CO2e)” is the common metric used to quantify and compare different types of GHG emissions, and is expressed in tonnes.

“Carbon Price” is the total dollar value (including any provincial and federal carbon taxes) assigned by Metro Vancouver to one tonne of CO2e.

“Life Cycle Cost Analysis” is the process to establish the net present value of all costs and revenues associated with a Metro Vancouver project or initiative over its expected life.

POLICY

When undertaking options analysis for a Metro Vancouver project or initiative, the Carbon Price will be used to calculate the value (expressed as a cost) of Applicable GHG Emissions associated with each option. This value will be included in the Life Cycle Cost Analysis for each option.

Carbon Price

Metro Vancouver will use a total Carbon Price (inclusive of any applicable external carbon taxes) of $150 per tonne of CO2e in Life Cycle Cost Analyses.

Financial Services, in coordination with the Air Quality and Climate Change Division, will develop and annually review a Carbon Price Schedule. This Carbon Price Schedule will provide the incremental cost per unit of purchased energy (e.g., litres of gasoline, GJ of natural gas), as well as the cost per unit of other Applicable GHGs (e.g., tonne of fugitive methane). The carbon price will be adjusted to account for any changes to provincial and federal carbon taxes, to ensure that the total carbon price per tonne of Applicable GHGs is constant at $150 per tonne of CO2e.

BOARD POLICY

ATTACHMENT 2

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BOARD POLICY

18741222 Carbon Price Policy Page 2 of 2

Application

This policy applies to all options analyses that use Life Cycle Cost Analysis for Metro Vancouver projects or initiatives, including (but not limited to):

Planning, design, procurement, construction, operation, maintenance, and decommissioning (where applicable) of facilities, vehicles, and equipment owned or operated by Metro Vancouver or by third parties on Metro Vancouver’s behalf;

Acquisition of park land, where protection of the land by Metro Vancouver results in quantifiable GHG emissions reductions compared to business as usual; and

Management of process emissions from Metro Vancouver facilities.

The Carbon Price will be used to calculate the value of Applicable GHG Emissions associated with:

Energy purchased by Metro Vancouver or by third parties on Metro Vancouver’s behalf for the operation of utilities, fleet, and facilities (including natural gas, liquid petroleum products, propane, and electricity);

Fugitive methane and nitrous oxide emissions released from wastewater treatment processes and municipal solid waste management processes;

Avoided GHG emissions due to the displacement of fossil fuels with energy recovered from Metro Vancouver facilities;

Avoided GHG emissions attributable to the protection and/or restoration of park land such as forests and bogs; and

Other sources related to Metro Vancouver’s activities.

Related Document:

Carbon Price Schedule (22496514)

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5.4

To: Utilities Committee From: Andjela Knezevic-Stevanovic, Director, Environmental Management & Quality

Control, Liquid Waste Services Date: June 7, 2017 Meeting Date: July 13, 2017 Subject: 2016 GVS&DD Environmental Management & Quality Control Annual Report RECOMMENDATION That the GVS&DD Board receive for information the report dated June 7, 2017, titled “2016 GVS&DD Environmental Management & Quality Control Annual Report”. PURPOSE To provide the Board with a summary of the 2016 GVS&DD Environmental Management & Quality Control Annual Report. BACKGROUND Annual reporting of GVS&DD Environmental Management & Quality Control is a requirement under the Ministerial conditions of provincial approval of Metro Vancouver’s Integrated Liquid Waste and Resource Management Plan (ILWRMP). The Executive Summary of the 2016 GVS&DD Environmental Management & Quality Control Annual Report (Attachment 1) summarizes the regulatory and process control information gathered through the various monitoring and risk assessment programs that are in place to meet GVS&DD’s commitments under the ILWRMP, including those for: wastewater treatment plant influent, effluent and process streams; operation of the collection system; effluent toxicity testing; receiving and ambient environment quality; and biosolids quality as required by the Organic Matter Recycling Regulation. The 2016 GVS&DD Environmental Management & Quality Control Annual Report will be submitted to the Ministry of Environment. Additionally, it will be made available to the public through Metro Vancouver’s web site and through the Metro Vancouver Library. SUMMARY OF RESULTS In order to assess wastewater treatment system performance and reliability, its impact on human health and the environment, and to perform biosolids and environmental quality monitoring, the Environmental Management & Quality Control Division collected about 51,400 samples and performed over 195,000 analyses in 2016. Major conclusions are as follows: a) The five wastewater treatment plants (WWTPs) treated over 438 billion litres of wastewater in

2016. The quantities of biochemical oxygen demand (BOD) and total suspended solids (TSS) removed were 51,418 tonnes and 54,200 tonnes, respectively.

b) The WWTPs consistently complied with Operational Certificate requirements except in four

instances as detailed in the Executive Summary.

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2016 GVS&DD Environmental Management & Quality Control Annual Report Utilities Committee Meeting Date: July 13, 2017

Page 2 of 3

c) About 17,000 tests were performed on biosolids in 2016. Metal concentrations in weekly composite samples and fecal coliform counts in biosolids were generally well below the regulatory limits outlined in the Organic Matter Recycling Regulation.

d) Ammonia effluent concentrations for all WWTP discharges were below the federal guideline for

acute effluent toxicity as defined by the Canadian Environmental Protection Act. e) All wastewater treatment plants passed the required monthly acute toxicity test using

Environment Canada test protocols except for four Lions Gate and six Iona Island effluent samples. The observed toxicity in two Lions Gate effluent samples was inconclusive, and the observed toxicity in the other two Lions Gate effluent samples was likely related to low dissolved oxygen and detergents. The six Iona Island samples required oxygen in excess of that specified by the Environment Canada method.

f) As part of the characterization of wastewater from all five WWTPs for contaminants of emerging

concern, analysis of trace organic and endocrine disrupting substances was initiated in 2014 and continued throughout 2016. Analyzed substances include: organochlorine pesticides (OCPs), polychlorinated biphenyls (PCBs), polycyclic aromatic hydrocarbons (PAHs), volatile organic compounds, phenolic compounds, surfactants, polybrominated diphenyl ethers (PBDEs), hormones and sterols, pharmaceuticals and personal care products (PPCPs). Results are used to inform decisions regarding management of these substances, including source control initiatives.

g) The bacteriological water quality for primary-contact recreation was met for most bathing

beaches during the bathing beach season from May 1st to September 30th. The one exception was Wreck Beach - Trail 7 (also known as the Oasis). Swimming advisories were issued by the Health Authorities for seven days in June. For non-bathing beach areas, the monitoring data indicated that False Creek met the working guideline limit for secondary or incidental-contact activities throughout the entire season.

h) Site specific water quality objectives and guidelines were met at the boundary of the initial

dilution zones (IDZ) for all Metro Vancouver wastewater treatment plants, except for dissolved oxygen and boron. Water dissolved oxygen concentrations were slightly below the guideline at the IDZ boundary and reference area for both the Lions Gate and Iona Island outfalls and these concentrations may be related to regional changes. As well, water boron concentrations were above the corresponding guideline, but lower in the effluent than in the receiving environment where concentrations were consistent with those in Canadian coastal waters.

i) Monitoring results of the marine receiving environment for sediments effects around the two

primary wastewater treatment plant outfalls were similar to prior years and indicated some changes. Further assessment is expected to clarify whether these changes may be outfall related, are due to regional long-term fluctuations in oceanographic conditions, or are due to a combination of these and other confounding factors.

j) Fraser River ambient monitoring program results indicated that the applicable environmental

quality objectives and guidelines for water were met. Sediment results mostly met the applicable sediment quality objectives and guidelines, with the exception of several metals and organic parameters. The Burrard Inlet program review concluded that the objectives of the program are being met.

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2016 GVS&DD Environmental Management & Quality Control Annual Report Utilities Committee Meeting Date: July 13, 2017

Page 3 of 3

ALTERNATIVES This is an information report. No alternatives are presented. FINANCIAL IMPLICATIONS Preparation of the GVS&DD’s Liquid Waste Services Environmental Management & Quality Control Annual Report is included in the GVS&DD annual operating budget. SUMMARY / CONCLUSION Annual reporting of GVS&DD Environmental Management & Quality Control is a regulatory requirement under the Integrated Liquid Waste and Resource Management Plan. This report summarizes the compliance, process control and regional environmental quality information gathered through various monitoring and risk assessment programs that are in place to meet GVS&DD’s commitments under the ILWRMP. As illustrated by the 2016 GVS&DD Environmental Management & Quality Control Annual Report, Metro Vancouver’s wastewater treatment plants continue to meet performance expectations with respect to reduction of contaminant loadings to the receiving environment and are consistently providing ongoing benefits to the region. Various monitoring programs continue to fulfill their role of confirming that the wastewater treatment plants are operating efficiently and with no adverse effects on human health and the environment. Findings of the environmental monitoring programs indicate that regional liquid waste discharges continue to be effectively managed in a manner that is protective of aquatic life. Attachments 1. 2016 GVS&DD EM&QC Annual Report Executive Summary, April 1, 2017 (21633069) 21646552

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http://orbit.gvrd.bc.ca/orbit/llisapi.dll/properties/21633069

EXECUTIVE SUMMARY

The Greater Vancouver Sewerage and Drainage District (GVS&DD or the District) operates five wastewater treatment plants (WWTPs) in the region. Three of the five plants provide secondary treatment (Annacis Island, Lulu Island and Northwest Langley) and discharge treated effluent into the lower Fraser River. The remaining two wastewater treatment plants (Iona Island and Lions Gate) provide primary treatment and discharge treated effluent to Georgia Strait and First Narrows of Burrard Inlet, respectively.

Under the provisions of the Environmental Management Act, the Minister of Environment approved Metro Vancouver’s Integrated Liquid Waste and Resource Management Plan (ILWRMP, or the Plan) in May 2011. The Plan has three goals: protect public health and the environment; use liquid waste as a resource; and effective, affordable and collaborative management. Metro Vancouver manages its liquid waste in accordance with the ILWRMP and WWTP specific operational certificates, issued by the Ministry of Environment in 2004. These certificates allow the GVS&DD to discharge treated effluent from its WWTPs to the receiving waters. The District’s objective is to maintain ongoing compliance with the operational certificates and by doing so to continue to protect human health and the environment.

The federal Wastewater Systems Effluent Regulations (WSER) under the Fisheries Act came into effect on July 18, 2012. GVS&DD is required to monitor and report effluent monitoring data quarterly. The effluent quality standards as specified in WSER were in force throughout the year.

The purpose of this report is to document the performance of the WWTPs in 2016 with respect to effluent quality and protection of human health and the environment, and to demonstrate meeting the regulatory requirements as specified by the operational certificates and WSER.

Most of the monitoring, laboratory analytical services and data analyses upon which this report is based were provided by the Environmental Management & Quality Control Division of Liquid Waste Services.

Outlined below is an overview of the information collected as a result of Environmental Management & Quality Control’s monitoring programs for the wastewater treatment plants, including monitoring for effluent and biosolids quality, and receiving and ambient environment quality. Other programs and projects discussed in this report are in support of ongoing commitments under the ILWRMP or compliance with conditions of the plan approval by the Minister of Environment.

Attachment

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WASTEWATER TREATMENT PLANTS

Operational Certificates

The Operational Certificates (OCs) issued on April 23, 2004 by the Ministry of Environment under the provisions of the Environmental Management Act include daily compliance levels for flow and daily loadings for Biochemical Oxygen Demand (BOD) (or Carbonaceous Biochemical Oxygen Demand (cBOD), where applicable) and Total Suspended Solids (TSS). The loading parameters listed as “maximum daily discharge loadings” are used to calculate the annual discharge authorization fees as required by the Permit Fees Regulation and are based on a calendar year.

Additional requirements were listed for disinfection of the effluent at all WWTPs except Iona Island, so that fecal coliform water quality objectives for the receiving water body are met at the edge of the initial dilution zone as defined by the Municipal Wastewater Regulation. When chlorine is used for disinfection during bathing season, it must be removed from the effluent before discharge to the receiving waters.

In 2016, about 438 billion litres of wastewater were treated at the GVS&DD’s five wastewater treatment plants. Of this total, over 227 billion litres received primary treatment (Iona Island and Lions Gate) with the remaining 210 billion litres treated at the three secondary wastewater plants (Annacis Island, Lulu Island and Northwest Langley). Individual treated effluent flows for each wastewater treatment plant and quantities of BOD and suspended solids removed in 2016 are summarized below:

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Total for 2016 ANNACIS ISLAND

IONA ISLAND

LIONS GATE

LULU ISLAND

NW LANGLEY

TOTAL

Effluent Flow, ML 180,044 197,002 30,336 25,617 4,522 437,520

BOD,

Tonnes Removed

30,495 11,251 1,726 6,690 1,257 51,418

Suspended Solids, Tonnes Removed

29,574 14,804 3,256 5,394 1,172 54,200

Treatment Plant Performance and Compliance Review

The overall performance of the GVRD’s five wastewater treatment plants was good. BOD and total suspended solids operational certificate equirements were generally met throughout 2016. The following table summarizes the average reduction in BOD and total suspended solids loadings during 2016 for all the plants.

Wastewater Treatment Plant % BOD Reduction % TSS Reduction

Iona Island * 44 58

Lions Gate* 46 67

Annacis Island ** 95 94

Lulu Island ** 98 98

Northwest Langley** 95 93

* Reduction for primary plants expected to be about 30% for BOD and 60% for TSS.

** Reduction for secondary plants expected to be about 90% for both TSS and BOD.

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In 2016, GVS&DD’s WWTPs met operational certificate requirements throughout the year except for 4 cases that can be grouped into 2 categories.

Category 1 (1 case) includes results of TSS and BOD concentrations above limits, and disinfection interruption. Probable causes and potential environmental effects were discussed in the table below.

Description Plant Date Quantity

Discharged

Duration Probable Cause*

Mitigation Measures*

Potential Environmental Effects

Disinfection Interruption

Annacis June 5 8.9 ML 26 minutes BC Hydro power interruption

Not Applicable

Based on dilution dispersion modelling of downstream concentrations: o The applicable Health Canada Recreational Water

Quality Guidelines were predicted to have been met at designated recreation areas.

o The applicable BC MOE Water Quality Guidelines were predicted to have been met at known registered water license diversion points.

Disinfection Interruption

Lions Gate

September 17

0.708 ML 8.03 minutes BC Hydro power interruption

Not Applicable

Based on dilution dispersion modelling of downstream concentrations: o The applicable Health Canada Recreational Water

Quality Guidelines were predicted to have been met at designated recreation areas.

Category 2 (2 cases) were the results of daily discharge loadings for suspended solids or BOD above the maximum load limits. These exceptions typically have no significant environmental effect.

Description Plant Date Quantity

Discharged

Duration Probable Cause* Mitigation Measures*

Potential Environmental Effects

TSS Loading Northwest Langley

January 27

0.517 tonnes/day

Not Applicable

High flow conditions and elevated Total Suspended Solids (TSS) concentration.

No remedial action required

o Impacts to water quality for recreation and irrigation were not expected. Impacts to aquatic life were not expected. The applicable BC Ministry of Environment TSS Water Quality Objectives for aquatic life protection were expected to have been met in the Fraser River.

TSS Loading Annacis November 2

28.9 tonnes/day

Not Applicable

High flow conditions and elevated Total Suspended Solids (TSS) concentration.

No remedial action required

o Based on dilution dispersion modelling of downstream concentrations the applicable BC MOE Water Quality Objective for TSS was expected to have been met in the Fraser River.

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A summary of events when the parameters specified by the Operational Certificates for the District’s wastewater treatment plants were not met in the last six years is shown in the tables below. The number of non-compliance events is shown against total number of tests or data collected during the period.

Iona Island WWTP Operational Certificate ME 00023 - April 23, 2004

Number of Events OC Requirements Not Met

OC Parameter 2011 2012 2013 2014 2015 2016

Max. Daily Discharge (Exceeded) 0 0 0 0 0 0

Biochemical Oxygen Demand (BOD) 3 (of 103) 0 0 0 2 (of 105) 0

Suspended Solids 0 0 0 0 0 0

BOD Daily Loading 1 (of 103) 0 0 0 0 0

Suspended Solids Daily Loading 2 (of 364) 0 0 0 0 0

Plant Bypass 1 (of 365) 0 0 1 (of 365) 0 0

Lions Gate WWTP Operational Certificate ME 00030 – April 23, 2004


OC Parameter 2011 2012 2013 2014 2015 2016


Biochemical Oxygen Demand (BOD) 0 2 (of 102) 1 (of 112) 0 0 0


BOD Daily Loading 0 0 0 0 0 0

Suspended Solids Daily Loading 0 0 0 0 1 (of 360) 0

Chlorine Residual* 0 0 0 0 0 0

Disinfection Interruption 0 1 (of 159) 0 0 0 1 (of 157)

Fecal Coliform 0 0 0 0 0 0

* measured during disinfection season only – after dechlorination.

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Northwest Langley WWTP Operational Certificate ME 04339– April 23, 2004


OC Parameter 2011 2012 2013 2014 2015 2016

Max. Discharge Rate (Exceeded) 0 0 0 0 0 0

Carbonaceous Biochemical Oxygen Demand (cBOD)

0 0 0 0 0 0

Suspended Solids 0 0 0 0 1 (of 361) 0

cBOD Daily Loading 0 0 0 0 0 0

Suspended Solids Daily Loading 3 (of 364) 1 (of 362) 1 (of 365) 3 (of 364) 4 (of 361) 1 (of 366)

Chlorine Residual * 0 0 1 (of 154) n/a n/a 0

Disinfection Interruption 0 0 0 0 0 0


* measured during disinfection season only - after dechlorination.

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Annacis Island WWTP Operational Certificate ME 00387 – April 23, 2004


OC Parameter 2011 2012 2013 2014 2015 2016



0 0 0 0 0 0


cBOD Daily Loading 0 0 0 1 (of 166) 0 0

Suspended Solids Daily Loading 0 0 0 1 (of 365) 0 1 (of 366)

Chlorine Residual* 1 (of 234) 0 0 0 0 0

Disinfection Interruption 0 1 (of 224) 0 0 0 1 (of 216)


Plant Bypass 0 0 0 0 0 0

Secondary Bypass 1 (of 365) 0 0 0 0 0

Primary Effluent During Secondary Bypass

Biochemical Oxygen Demand (BOD) 0 0 0 0 0 0


* measured during disinfection season only – after dechlorination.

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Lulu Island WWTP Operational Certificate ME 00233– April 23, 2004


OC Parameter 2011 2012 2013 2014 2015 2016



0 0 0 0 0 0


cBOD Daily Loading 0 0 0 0 0 0

Suspended Solids Daily Loading 0 0 0 0 0 0

Chlorine Residual * 0 0 0 0 0 0

Disinfection Interruption 0 0 1 (of 215) 1 (of 220) 1 (of 221) 0


Plant Bypass 3 (of 365) 1 (of 366) 0 0 0 0

Secondary Bypass 1 (of 365) 0 0 0 0 0

Primary Effluent During Secondary Bypass

Biochemical Oxygen Demand (BOD) 0 0 0 0 0 0


* measured during disinfection season only - after dechlorination.

Integrated Liquid Waste and Resource Management Plan (ILWRMP)

The ILWRMP also commits GVS&DD to operate the secondary wastewater treatment plants to meet the National Performance Standards for effluent specified by the Canada-wide Strategy for the Management of Municipal Wastewater Effluent (CWS-MMWE):

Carbonaceous Biochemical Oxygen

Demand (cBOD)

Total Suspended Solids (TSS)

Average Average

≤ 25 mg/L ≤ 25 mg/L

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A summary of average cBOD and TSS concentrations with the averaging period of monthly for Annacis Island and Lulu Island WWTPs and quarterly for Northwest Langley WWTP is shown in the table below.

Secondary Plants ANNACIS ISLAND LULU ISLAND NORTHWEST LANGLEY

Parameters TSS cBOD TSS cBOD TSS cBOD

January 9 8 5 5

February 12 10 5 6

March 9 8 5 7 24 19

April 7 6 4 5

May 9 7 4 5

June 10 7 4 6 17 15

July 9 7 5 5

August 9 7 5 5

September 10 7 5 6 15 13

October 12 8 5 7

November 13 9 6 6

December 14 11 6 7 16 16

Wastewater Systems Effluent Regulation (WSER)

Quarterly monitoring reports were submitted through Environment and Climate Change Canada’s Effluent Regulatory Reporting Information System (ERRIS) in 2016. As required by WSER, the effluent monitoring data reported were: number of days that effluent was deposited; total volume of effluent deposited in m3; average cBOD in mg/L and the average concentration of suspended solids in mg/L. In addition, secondary treatment plants Annacis Island and Lulu Island were required to report Acute Lethality on a monthly basis and Northwest Langley was required to report Acute Lethality on a quarterly basis.

On April 14, 2016 Metro Vancouver received notification from Environment and Climate Change Canada that the treatment plants were eligible to reduce the acute lethality sampling frequency as follows:

Annacis Island and Lulu Island WWTPs: Quarterly

Northwest Langley WWTP: Annually

A summary of events when the WSER specified performance standards for the District’s secondary wastewater treatment plants were not met in 2016 is shown the next table.

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Number of Events WSER Requirements Not Met

WSER Parameter Annacis Island WWTP

Lulu Island WWTP

Northwest Langley WWTP

Suspended Solids 0 0 0

Carbonaceous Biochemical Oxygen Demand (cBOD) 0 0 0

Total Residual Chlorine 0 0 0*

Acute Lethality 0 0 0

*Peracetic acid (PAA) was used as primary disinfectant during disinfection season for Northwest Langley WWTP

GVS&DD’s primary plants, Iona Island and Lions Gate WWTPs were issued transitional authorizations under WSER on September 5, 2014. A summary of events when the parameters specified by the transitional authorizations for the District’s primary wastewater treatment plants were not met in 2016 is shown the next table.

Transitional Authorization – September 05, 2014

Number of Events

WSER Requirements Not Met

WSER Parameter Iona

Island WWTP

Lions Gate

WWTP

Suspended Solids 0 0

Carbonaceous Biochemical Oxygen Demand (cBOD) 0 0

BIOSOLIDS MONITORING PROGRAM

Process Requirements and Biosolids Management

The Organic Matter Recycling Regulation (OMRR) governs the management of biosolids and compost as soil amendments in the Province of British Columbia. Under this regulation, sampling frequencies and criteria values for fecal coliforms and metals as specified for Class A and Class B biosolids are based on several parameters including: type of treatment process (pathogen reduction requirements, vector attraction reduction), the amount of dry solids produced on a monthly basis and the intended use of the

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material. The GVS&DD’s biosolids management program ensures that any biosolids not meeting class specifications are identified, tracked and managed appropriately.

Thermophilic digesters at the Annacis Island WWTP consistently meet requirements for pathogen reduction and vector attraction reduction to produce Class A biosolids. The Lulu Island WWTP mesophilic digesters and Lions Gate WWTP thermophilic digesters are operated to produce Class B biosolids.

The Iona Island WWTP operates mesophilic digesters which produce digested sludge complying with Class B pathogen levels. At Iona Island WWTP discharges from the digesters are further processed via lagoon stabilization and land-drying to produce a Class B biosolids product with soil-like consistency. These biosolids are currently stockpiled on site with anticipated use in future recycling projects. The Northwest Langley WWTP continues to haul thickened wasted secondary sludge to Annacis Island WWTP.

Biosolids Quality

About 17,000 tests were performed on biosolids in 2016. The results showed that metals concentrations were generally well below the criteria value limits specified by OMRR.

Data values produced during 2016 for fecal coliforms in biosolids were within the Class A or Class B criteria for the Annacis Island, Lulu Island and Lions Gate WWTPs.

ENVIRONMENTAL PROGRAMS

Environmental monitoring programs form a major part of the Metro Vancouver’s integrated approach to managing liquid waste. The purpose of monitoring is to characterize the receiving and ambient environmental conditions of relevant water bodies in the region in order to understand the relative contribution and significance of discharges from our regional and municipal systems, determine if the applicable regulatory requirements are being met, and to warn of possible environmental issues.

Overflow Quality Monitoring and Risk Assessments

Combined Sewer Overflows

In 2016, the Combined Sewer Overflow (CSO) Monitoring Program characterized the overflow water quality for five selected CSO locations: Chilco-Brockton, Macdonald, Manitoba, Heather, and Clark Drive. In addition, the field work for human health and ecological risk assessment with the Clark Drive CSO was completed.

Sanitary Sewer Overflows

Metro Vancouver maintained automated sampling stations at seven sanitary sewer overflow (SSO) locations in 2016: Cloverdale, Katzie, 225th Street, Braid Street, Lynn, MacKay and Bellevue. SSOs occurred at two of these stations: Braid, and 225th St. Samples were collected in order to characterize SSOs during wet weather events, with the goal to inform decisions on potential management options, including collection of data required for design of mitigation infrastructure, if required.

Based on monitoring data collected between October 2012 and November 2015, a screening level human health and ecological risk assessment for Braid Street, MacKay and Bellevue SSOs has been completed.

In addition, a program review to identify improvement opportunities to the sanitary sewer overflow and associated receiving environment monitoring programs was completed.

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Whole Effluent Toxicity Monitoring

In 2016, all effluent samples from all wastewater treatment plants passed the OC required monthly acute toxicity test using Environment and Climate Change Canada test protocols except for four samples of Lions Gate effluent and six Iona Island effluent samples.

For the four samples from the Lions Gate plant, the observed toxicity in two samples was related to detergents. The remaining two Lions Gate samples and the six Iona Island samples required oxygen in excess of that specified by the Environment and Climate Change Canada method.

Periodically some chronic toxicity of effluent, as well as some background toxicity in the Fraser River away from the influence of the WWTP discharges was observed. Determining if there is a pattern to the observed variability, and subsequently identifying potential sources of apparent chronic toxicity will require further testing.

Ammonia in the effluent is also monitored to determine the potential for an acutely lethal concentration. Effluent ammonia concentrations in all wastewater treatment plants remained below the criteria of the Canadian Environmental Protection Act (CEPA) Threshold Curve and as a result are not expected to cause acute toxicity.

WWTP Receiving Environment Quality

Metro Vancouver conducted comprehensive monitoring of the receiving environment for its wastewater treatment plant outfalls. In 2016, the monitoring programs included monitoring the boundary of the initial dilution zone (IDZ), and sediment effects surveys.

Site specific water quality objectives and guidelines were met at the boundary of the initial dilution zone for all Metro Vancouver wastewater treatment plants, except for dissolved oxygen and boron. Water dissolved oxygen concentrations were slightly below the guideline at the IDZ boundary and reference area for both the Lions Gate and Iona Island outfalls and these concentrations may be related to regional changes. As well, water boron concentrations in the vicinity of these outfalls were above the corresponding guideline, but lower in the effluent than in the receiving environment where concentrations were consistent with those in Canadian coastal waters.

Monitoring results of the marine receiving environment for sediments effects around the two primary wastewater treatment plant outfalls were similar to prior years and indicated some changes. Further assessment is expected to clarify whether these changes may be outfall related, are due to regional long-term fluctuations in oceanographic conditions, or are due to a combination of these and other confounding factors.

Recreational Water Quality

Metro Vancouver monitored the bacteriological quality of recreational waters in the region at 115 sampling sites from 41 locations. Both bathing and non-bathing beaches were monitored. In 2016, the bacteriological water quality for primary-contact recreation was met at bathing beaches during the bathing beach season from May through September, except for Wreck Beach Trail #7 (Oasis). A swimming advisory was issued by the Health Authority for this beach in June. False Creek met the working guideline limit for secondary or incidental-contact activities throughout the 2016 season.

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Ambient Environment Quality

Metro Vancouver conducted ambient monitoring for all of the major water bodies that receive discharges from point and non-point sources in the Metro Vancouver region. In 2016, ambient monitoring programs included assessment of the water quality for the Fraser River, Burrard Inlet, Strait of Georgia and Boundary Bay, assessment of sediments in the Fraser River and Boundary Bay. Work continued on a multiple year program to better understand the dispersal and removal of contaminants in the Strait of Georgia. In addition, a comprehensive review of all components of the ambient monitoring program for Burrard Inlet was completed.

In 2016, a long-term plan to monitor water column persistent organic substances in the Strait of Georgia was developed and field work to quantify their bioaccumulation across the food web was initiated.

Fraser River ambient monitoring program water quality results indicated that the applicable water quality objectives and guidelines were met. Sediment results mostly met the applicable sediment quality objectives and guidelines, with the exception of several total metals and several organic parameters.

The Burrard Inlet program review concluded that the objectives of the program are being met.

The findings of the remaining monitoring programs are not yet available.

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1.0 WASTEWATER TREATMENT MONITORING PROGRAM 1.1 LABORATORY PROGRAMS

In 2016, the Environmental Management & Quality Control Division carried out all routine monitoring programs as required by the Ministry of Environment (MOE) and Environment and Climate Change Canada relating to the discharge of primary and secondary treated effluent from the Greater Vancouver Sewerage and Drainage District’s wastewater treatment plants.

As specified in the Operational Certificates issued by the MOE in April, 2004 for each treatment plant, the GVS&DD is required to monitor and report data monthly for effluent quality, treated sludge, and receiving waters.

The federal Wastewater Systems Effluent Regulations (WSER) under the Fisheries Act came into effect on July 18, 2012. GVS&DD is required to monitor and report effluent monitoring data quarterly. The effluent quality standards and limits as specified in WSER for the three secondary plants and in the transitional authorizations for the two primary plants were in force throughout the year.

Environmental Management & Quality Control (EMQC) Laboratory staff conducted analyses of samples collected on various stages of treatment for process control at each wastewater treatment plant; they also provided analytical services for Residuals Management and Regulation & Enforcement purposes. EMQC laboratory maintained a high level of analytical and technical support for special projects at all wastewater treatment plants.

The total number of analyses completed by the laboratory sections for all GVS&DD programs was over 195,000 analyses in 2016.

Monitoring programs carried out in 2016 provided a comprehensive set of influent and effluent characteristics for each wastewater treatment plant and included all the monitoring requirements specified in the Wastewater Treatment Plant Operational Certificates and WSER. The full set

Documents

GREATER VANCOUVER REGIONAL DISTRICT UTILITIES … · 2017. 7. 7. · $11,108,137 (exclusive of taxes) to the Phase A project consultant, Hatch Corporation, for the Annacis Water Supply