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HomeMy WebLinkAbout2015-11-02 Workshop Meeting Agenda and Reports.pdfCity of Maple Ridge 1.ADOPTION OF THE AGENDA 2.MINUTES 2.1 Minutes of the October 19, 2015 Council Workshop Meeting 2.2 Minutes of Meetings of Committees and Commissions of Council •Maple Ridge Advisory Design Panel – July 14, 2015 •Maple Ridge Agricultural Advisory Committee – September 24, 2015 •Maple Ridge Community Heritage Commission – August 11, 2015 •Maple Ridge Municipal Advisory Committee on Accessibility Issues – September 17, 2015 •Maple Ridge Public Art Steering Committee – July 22, 2015 2.3 Discussion on issues arising out of Committee and Commission minutes 3.PRESENTATIONS AT THE REQUEST OF COUNCIL COUNCIL WORKSHOP AGENDA November 2, 2015 9:00 a.m. Blaney Room, 1st Floor, City Hall The purpose of the Council Workshop is to review and discuss policies and other items of interest to Council. Although resolutions may be passed at this meeting, the intent is to make a consensus decision to send an item to Council for debate and vote or refer the item back to staff for more information or clarification. The meeting is live streamed and recorded by the City of Maple Ridge. REMINDERS November 2, 2015 Closed Council cancelled Committee of the Whole Meeting 1:00 p.m. November 10, 2015 Council Meeting 7:00 p.m. Council Workshop November 2, 2015 Page 2 of 4 4. MAYOR AND COUNCILLORS’ REPORTS 9:15 – 9:30 a.m. 5. UNFINISHED AND NEW BUSINESS 5.1 Update on the Development Liaison Committee 9:30 – 9:50 a.m. Update by the General Manager of Public Works and Development 5.2 Business Licensing Process 9:50 – 10:10 a.m. Verbal presentation by the General Manager of Public Works and Development and the Coordinator of Licences and Permits 5.3 Transportation Plan 10:10 – 11:45 a.m. Presentation by the Municipal Engineer 5.4 Fire Apparatus Service Life Analysis 11:45 a.m. to noon Staff report dated November 2, 2015 providing an analysis of the impact of extending the service life of certain fire department vehicles. 6. CORRESPONDENCE The following correspondence has been received and requires a response. Staff is seeking direction from Council on each item. Options that Council may consider include: a) Acknowledge receipt of correspondence and advise that no further action will be taken. b) Direct staff to prepare a report and recommendation regarding the subject matter. c) Forward the correspondence to a regular Council meeting for further discussion. d) Other. Once direction is given the appropriate response will be sent. 6.1 Upcoming Events November 11, 2015 10:45 am Remembrance Day Service – Memorial Peace Park Organizer: November 24, 2015 5:00 pm Annual Dinner Fundraiser – Samuel Robertson Secondary Organizer: Golden Ears Gogos November 26, 2015 9:30 am Workshop – Ramada Plaza Organizer: Maple Ridge Regional Library Council Workshop November 2, 2015 Page 3 of 4 7. BRIEFING ON OTHER ITEMS OF INTEREST/QUESTIONS FROM COUNCIL 8. MATTERS DEEMED EXPEDIENT 9. ADJOURNMENT Checked by: ___________ Date: _________________ Council Workshop November 2, 2015 Page 4 of 4 Rules for Holding a Closed Meeting A part of a council meeting may be closed to the public if the subject matter being considered relates to one or more of the following: (a) personal information about an identifiable individual who holds or is being considered for a position as an officer, employee or agent of the municipality or another position appointed by the municipality; (b) personal information about an identifiable individual who is being considered for a municipal award or honour, or who has offered to provide a gift to the municipality on condition of anonymity; (c) labour relations or employee negotiations; (d) the security of property of the municipality; (e) the acquisition, disposition or expropriation of land or improvements, if the council considers that disclosure might reasonably be expected to harm the interests of the municipality; (f) law enforcement, if the council considers that disclosure might reasonably be expected to harm the conduct of an investigation under or enforcement of an enactment; (g) litigation or potential litigation affecting the municipality; (h) an administrative tribunal hearing or potential administrative tribunal hearing affecting the municipality, other than a hearing to be conducted by the council or a delegate of council (i) the receiving of advice that is subject to solicitor-client privilege, including communications necessary for that purpose; (j) information that is prohibited or information that if it were presented in a document would be prohibited from disclosure under section 21 of the Freedom of Information and Protection of Privacy Act; (k) negotiations and related discussions respecting the proposed provision of a municipal service that are at their preliminary stages and that, in the view of the council, could reasonably be expected to harm the interests of the municipality if they were held in public; (l) discussions with municipal officers and employees respecting municipal objectives, measures and progress reports for the purposes of preparing an annual report under section 98 [annual municipal report] (m) a matter that, under another enactment, is such that the public may be excluded from the meeting; (n) the consideration of whether a council meeting should be closed under a provision of this subsection of subsection (2) (o) the consideration of whether the authority under section 91 (other persons attending closed meetings) should be exercised in relation to a council meeting. (p) information relating to local government participation in provincial negotiations with First Nations, where an agreement provides that the information is to be kept confidential. 2.1 Council Workshop Meetings Minutes 2.1 City of Maple Ridge COUNCIL WORKSHOP MINUTES October 19, 2015 The Minutes of the City Council Workshop held on October 19, 2015 at 9:00 a.m. in the Blaney Room of City Hall, 11995 Haney Place, Maple Ridge, British Columbia for the purpose of transacting regular City business. PRESENT Elected Officials Appointed Staff Mayor N. Read F. Quinn, Acting Chief Administrative Officer/General Councillor C. Bell Manager Public Works and Development Services Councillor K. Duncan K. Swift, General Manager of Community Development, Councillor B. Masse Parks and Recreation Services Councillor G Robson P. Gill, General Manager Corporate and Financial Services Councillor T. Shymkiw C. Marlo, Manager of Legislative Services Councillor C. Speirs Other Staff as Required Superintendent D. Fleugel, Ridge Meadows RCMP C. Carter, Director of Planning J. Charlebois, Manager of Community Planning D. Pollock, Municipal Engineer C. Goddard, Manager of Development and Environmental Services D. Denton. Property and Risk Manager Note: These Minutes are posted on the City Web Site at www.mapleridge.ca Councillors Duncan, Masse and Robson were not in attendance at the start of the meeting. 1.ADOPTION OF THE AGENDA The agenda was adopted as circulated. 2.MINUTES 2.1 Minutes of the October 5, 2015 Council Workshop Meeting R/2015-443 It was moved and seconded That the minutes of the Council Workshop Meeting of October 5, 2015 be adopted as circulated. CARRIED Council Workshop Minutes October 19, 2015 Page 2 of 8 2.2 Minutes of Meetings of Committees and Commissions of Council •Maple Ridge Advisory Design Panel – June 14, 2015 •Maple Ridge Agricultural Advisory Committee – June 25, 2015 •Maple Ridge/Pitt Meadows Municipal Advisory Committee on Accessibility Issues – June 17, 2015 •Maple Ridge and Pitt Meadows Parks & Leisure Services Commission – July 9, 2015 •Maple Ridge Social Planning Advisory Committee – June 3 and September 9, 2015 R/2015-444 It was moved and seconded That the minutes of the Maple Ridge Advisory Design Panel of June 4, 2015, the Maple Ridge Agricultural Advisory Committee of June 25, 2015, the Maple Ridge/Pitt Meadows Municipal Advisory Committee on Accessibility Issues of June 17, 2015, the Maple Ridge and Pitt Meadows Parks & Leisure Services Commission of July 9, 2015 and the Maple Ridge Social Planning Advisory Committee of June 3 and September 9, 2015 be received. CARRIED 3.PRESENTATIONS AT THE REQUEST OF COUNCIL 3.1 RCMP Integrated Teams Presentation •Assistant Commissioner Dan Malo Superintendent Fluegel introduced Assistant Commissioner Dan Malo. Assistant Commissioner Malo gave a power point presentation providing an overview of the five Lower Mainland Detachment Integrated Teams; IHIT, ERT, IPDS, IFIS and ICARS. Note: Councillor Duncan joined the meeting at 9:07 a.m. and Councillor Robson joined the meeting at 9:15 a.m. 4.MAYOR AND COUNCILLORS’ REPORTS Councillor Duncan Councillor Duncan attended a Fire Department Open House and the Golden Harvest event. She provided an update on the Strong Kids Team meetings. Councillor Duncan will be attending conference on Public Art in Kelowna. Council Workshop Minutes October 19, 2015 Page 3 of 8 Councillor Speirs Councillor Speirs attended the Golden Harvest event, the Ridge Meadows Hospital Foundation Arabian Nights gala and a meeting of the UBC Research Forest Advisory Committee. Councillor Shymkiw Councillor Shymkiw attended the Ridge Meadows Hospital Foundation Arabian Nights gala. He provided an update on Open Government Task Force and a report submitted by a Citizens group. Mayor Read Mayor Read attended a Best Practices for Housing First forum, CM Facilitators meeting and met with the Canadian Alliance for Housing. She will be attending the 2015 National Conference on Ending Homelessness in Montreal. Mayor Read participated in UDI Fraser Valley Mayors’ Forum, attended the Ridge Meadows Hospital Foundation Arabian Nights Gala, and the Albion FC Gala. She also attended a variety of meetings including a meeting with the Ministry of Transportation and Infrastructure to discuss the Haney Bypass. 5.UNFINISHED AND NEW BUSINESS 5.1 Maple Ridge Community Amenity Program Staff report dated October 19, 2015 recommending that the Maple Ridge Community Amenity Program Decision Table be used as the method to determine the components of a community amenity program and that staff be directed to prepare the necessary policies and/or bylaws for approved once components are determined. The Director of Planning introduced the item. The Manager of Community Planning gave a power point presentation providing an overview of the staff report. 5.1.1 Contribution Approach a) Percentage Value of Lift R/2015-445 It was moved and seconded a) THAT a percentage value of lift be applied as the contribution approach for the community amenity program. CARRIED Council Workshop Minutes October 19, 2015 Page 4 of 8 5.1.2 Geographic Area a) City-Wide R/2015-446 It was moved and seconded That the contribution approach identified in category 1 of the Maple Ridge Community Amenity Program Decision Table be applied city-wide. R/2015-447 It was moved and seconded That the motion be amended by removing the text “identified in category 1 of the Maple Ridge Community Amenity Program Decision Table. CARRIED MOTION AS AMENDED CARRED R/2015-448 It was moved and seconded That the Town Centre Area Plan area be excluded from the city-wide community amenity program. CARRIED 5.1.3 Albion Density Bonus Framework a) Keep Albion Density Bonus R/2015-449 It was moved and seconded That the Albion Density Bonus Framework be maintained in the Official Community Plan and Zoning Bylaw and the amenity contribution rate be set at $3,100 per lot. Note: Councillor Masse arrived at 11:21 a.m. CARRIED Councillor Bell, Councillor Duncan, Councillor Shymkiw - OPPOSED Note: The October 19, 2015 Council Workshop Meeting recessed at 11:30 a.m. and was reconvened at 3:00 p.m. on October 27, 2015. An additional item was added at the October 27, 2015 meeting as Item 5.4 - Pitt Meadows Airport Resolution Council Workshop Minutes October 19, 2015 Page 5 of 8 5.1.4 Application of Program a)Residential Building Forms R/2015-450 It was moved and seconded (i through vi in same motion) That single family dwellings be included in the community amenity program for development applications containing 3 or more new residential lots. That duplex dwellings be included in the community amenity program for development applications containing 2 or more new residential buildings. That triplex dwellings be included in the community amenity program for development applications containing more than 1 new residential building. That fourplex buildings are included in the community amenity program. That townhouses buildings of all forms are included in the community amenity program. That apartment buildings are included in the community amenity program. CARRIED R/2015-451 It was moved and seconded That all rental apartment units, secured through a housing agreement and all special needs and affordable housing be exempt from the community amenity program. CARRIED OPPOSED – Councillor Shymkiw b)Employment Lands i) Commercial R/2015-452 It was moved and seconded That commercial developments are exempt from the community amenity program, except where residential dwelling units are included in a mixed-use development. Where rental housing units are included in and are secured as rental housing by a housing agreement, and where special needs and affordable housing units within the development, those dwelling units will be exempt from the community amenity program CARRIED Council Workshop Minutes October 19, 2015 Page 6 of 8 ii) Industrial R/2015-453 It was moved and seconded That industrial land uses are exempt from the community amenity program. CARRIED 5.1.5 Tools to Establish the Program a) Official Community Plan Policy R/2015-454 It was moved and seconded That an Official Community Plan amending bylaw be prepared that includes the components of the community amenity program as established by the Maple Ridge Community Amenity Program Decision Table. CARRIED Councillor Masse, Councillor Robson - OPPOSED 5.1.6 In-stream Applications R/2015-455 It was moved and seconded That in-stream applications be subject to the community amenity program as established by the Maple Ridge Community Amenity Program Decision Table, except those that have received third reading of the Official Community Plan and/or zone amending bylaw(s). CARRIED 5.1.7 Reserve Fund R/2015-456 It was moved and seconded That a follow-up report of a Reserve Fund bylaw be prepared and presented to Council for consideration at a future meeting. CARRIED Council Workshop Minutes October 19, 2015 Page 7 of 8 Note: Item 5.2 was rescheduled to the November 2, 2015 Council Workshop Meeting 5.2 Transportation Plan Presentation by the Municipal Engineer 5.3 Sale of Municipal Property – 280 Street Roadway (28000 block of 96 Avenue) Staff report dated October 19, 2015 recommending that the process for the sale of the decommissioned portion of 280 Street (28000 block of 96 Avenue) roadway including the preparation of a Highway Closure and Dedication Removal Bylaw be commenced and upon approval of same, the subdivision and disposition process of the resulting land parcels. R/2015-457 It was moved and seconded That staff be directed to commence the process for the sale of the decommissioned portion of 280 Street (28000 block of 96 Avenue) roadway including the preparation of a Highway Closure and Dedication Removal Bylaw and upon approval of same, the subdivision and disposition process of the resulting land parcels. CARRIED 5.4 Pitt Meadows Airport Society – Resolution to postpone Annual General Meeting R/2015-458 It was moved and seconded That the Corporate Officer be authorized to sign the Pitt Meadows Airport Society members’ resolution to postpone the Annual General Meeting to November 26, 2015. CARRIED 6.CORRESPONDENCE 6.1 Maple Ridge Agricultural Advisory Committee - Maple Ridge Agricultural Plan Letter dated October 1, 2015 from Margaret Daskis, Chair, Maple Ridge Agricultural Advisory Committee providing information on work on the endorsed Agricultural Plan undertaken by the committee since December 2009. Council Workshop Minutes October 19, 2015 Page 8 of 8 The request put forward by the Maple Ridge Agricultural Advisory Committee will be considered once the Agricultural Plan questionnaire has been completed by all of Council. 7.BRIEFING ON OTHER ITEMS OF INTEREST/QUESTIONS FROM COUNCIL – Nil 8.MATTERS DEEMED EXPEDIENT – Nil 9.ADJOURNMENT – 4:41 p.m. _______________________________ N. Read, Mayor Certified Correct ___________________________________ C. Marlo, Corporate Officer 2.2 Committee and Commission Meetings Minutes 2.2 Advisory Design Panel Minutes Page 1 of 3 City of Maple Ridge ADVISORY DESIGN PANEL The Minutes of the Regular Meeting of the Maple Ridge Advisory Design Panel held in the Blaney Room at Maple Ridge Municipal Hall, 11995 Haney Place, Maple Ridge, British Columbia, on Tuesday, July 14, 2015 at 4:00 pm. COMMITTEE MEMBERS PRESENT Blair Arbuthnot Landscape Architect Roger Amenyogbe Architect Johnny Leung Architect Mark Lesack Architect STAFF MEMBERS PRESENT Sunny Schiller Committee Clerk Adrian Kopystynski Staff Liaison, Acting Manager of Development and Environmental Services REGRETS Kyoung Bae Park Landscape Architect 1.CALL TO ORDER The Chair called the meeting to order at 4:05 pm. 2.AGENDA ADOPTION R15-016 It was moved and seconded That the agenda be amended to postpone Item 5.1 to the September meeting and be adopted as amended. CARRIED 3.MINUTES APPROVAL R15-017 It was moved and seconded That the Minutes of June 9, 2015 be approved. CARRIED Maple Ridge Advisory Design Panel -Tuesday,July 14, 2015 Maple Ridge Advisory Design Panel Minutes Page 2 of 4 4.PROJECTS 4.1 Development Permit No:2015-043-DP Applicant:Curtis Gray/Cheryl Bijl, Krahn Engineering Project Architect:Larry Podhora Project Landscape Architect:KD Planning and Design Ltd. Owners:MDZ Holdings Ltd. Proposal:A single-storey multi-tenant industrial concrete tilt-up building. Location:20159 115A Avenue File Manager:Michelle Baski The project applicant, architect and landscape architect were introduced.The Staff Liaison provided an overview of the proposed project. The project team made a presentation of the project plans. R15-018 It was moved and seconded That the application be supported and the following concerns be addressed as the design develops and be submitted to Planning staff for follow-up: 1.Consider a corner massing element on the south west corner 2.Consider a stronger colour element on the building 3.Consider west façade entries with design elements that may include canopies and spaces for signage for each unit 4.Consider providing a continuous pedestrian corridor along the west façade, that matches hard scape surfacing of entry ways 5.Consider providing an outdoor amenity space 6.Portray an accurate image of the art work on the south façade 7.Consider additional architectural features on south façade (Consider modifying design of windows on south elevation 8.Provide additional detailing for rear and east fencing 9.Provide additional security for rear access path 10.Provide additional detail for standalone sign to ensure sign does not conflict with art work. In addition to confirming consistency of mate rials between building and sign 11.Provide further design refinement of outdoor storage area (screening, buffering of storage, fencing details) 12.Show bollards on elevations for overhead doors 13.Show further information on retaining wall details 14.Preference for providing accessible pathway connection between sidewalk and building 15.Consider providing exterior lighting on artwork CARRIED Maple Ridge Advisory Design Panel -Tuesday,July 14, 2015 Maple Ridge Advisory Design Panel Minutes Page 3 of 4 4.2 Development Permit:2015-081-DP Applicant:Harj Sekhon Project Architect:Heather Johnston Landscape Architect: Owners:931919 B.C. Ltd. Proposal:Restaurant (Freshii) Location:22464 Lougheed Highway File Manager:Adam Rieu The applicant and architect were introduced.The Staff Liaison reported that this was a returning application from the June 2015 meeting and gave an overview of the recommendations made at that time. The architect made a presentation of the revised plans. R15-019 It was moved and seconded That the application be supported and the following concerns be addressed as the design develops and be submitted to Planning staff for follow-up: 1.Confirm the cornice is within the property line on the east side 2.Provide further details on profile of canopy. Confirm canopy is within city bylaws for covering sidewalk.Confine the canopy within the concrete pilasters 3.Consider consistency between front and rear façade materials 4.Consider additional architectural feature on rear upper façade 5.Consider formalizing the mural on the east façade with context for art and provide further details on installation 6.Consider additional landscape details for planter boxes in front and rea r areas 7.Provide additional landscape in rear planter 8.Consider additional window features on frontage (for example awning on upper windows) 9.Provide additional details for frontage hardscape pavers 10.Provide additional detail of garbage area and ensure materi als are consistent with building façade CARRIED 4.3 Development Permit No:2015-194-DP Applicant:Stantec Project Architect:Stantec Project Landscape Architect:None Owners:Narland Properties (Haney) Ltd Proposal:Rebrand the west end of the existing shopping centre structure from Target to Walmart. Location:11900 Haney Place File Manager:Amelia Bowden Maple Ridge Advisory Design Panel -Tuesday,July 14, 2015 Maple Ridge Advisory Design Panel Minutes Page 4 of 4 The Staff Liaison provided an overview of the plan to update the façade of 11900 Haney Place. The colour scheme and logo elements will be updated. R15-020 It was moved and seconded That the application be supported and the following concerns be addressed as the design develops and be submitted to Planning staff for follow-up: 1.Consider alternate texture transition for the pedestrian zone in front of main entry in lieu of speed bumps. Should speed bumps be retained consider alternative texture at east west drive aisles entering onto pedestrian crossing 2.Consider vertically aligning the pharmacy signage with main Walmart sign 3.Consider installing landscaping islands were previous cart corals were located 4.Review and supplement all landscape areas with new plant material for full coverage in all existing landscape areas 5.Consider weather protection over west exit doors CARRIED 5.NEW BUSINESS & UNFINISHED BUSINESS 5.1 Village Commercial Development Permit Area Guidelines Postponed 5.2 ADP Applicant Checklist Feedback from panel members has been incorporated into the checklist. A printed updated checklist was reviewed by the panel and further suggestions were made to improve the form. Once these suggestions are included the form is ready for distribution. 6.PRESENTATIONS -Nil 7.C0RRESPONDENCE -Nil 8.NEXT MEETING Tuesday,September 8, 2015 Applicant deadline:Monday,August 17, 2015 9.ADJOURNMENT /ss City of Maple Ridge AGRICULTURAL ADVISORY COMMITTEE REGULAR MEETING The Minutes of the Regular Meeting of the Agricultural Advisory Committee, held in the Blaney Room, at Maple Ridge Municipal Hall on Thursday,September 24,2015 at 7:00 pm. ____________________________________________________________________________________ COMMITTEE MEMBERS PRESENT Bill Hardy Member at Large Jennifer Zickerman Agricultural Sector Margaret Daskis, Chair Community at Large Stephanie James Equestrian Agricultural Sector Al Kozak Agricultural Sector Councillor Duncan City of Maple Ridge Ian Brooks Member at Large Candace Gordon Haney Farmers Market STAFF MEMBERS PRESENT Siobhan Murphy Staff Liaison / Planner 2 Sunny Schiller Committee Clerk REGRETS/ABSENTS Councillor Speirs City of Maple Ridge Chris Zabek Regional Agrologist, Ministry of Agriculture & Lands Kimberley Lauzon, Vice Chair Member at Large Lorraine Bates Agricultural Fair Board 1.CALL TO ORDER There being a quorum present,the Chair called the meeting to order at 7:08 pm. 2.AGENDA ADOPTION R15-013 It was moved and seconded That the Agenda be amended to add Golden Harvest as Item 7.2, Water as Item 7.3, Agricultural Plan Review as Item 7.4 and KPU Update as Item 7.5 and be adopted as amended. CARRIED 3.MINUTE ADOPTION R15-014 It was moved and seconded That the Minutes of June 25, 2015 be amended to accurately reflect Mr. Bill Hardy’s Roundtable comment regarding concern with the cost of water and be adopted as amended. CARRIED AAC Minutes September 24, 2015 Page 2 of 3 4.DELEGATIONS -Nil 5.NEW BUSINESS 5.1 Business Planning 5.1.1 More Peas Please –Consideration of request for funding The process for evaluating requests for funding was discussed.The Staff Liaison will follow up with Planning staff to review what criteria may have been established in the past.The More Peas Please program will be gearing up in the Spring and it was noted that it would be good to have funding approval criteria in place for that time. 6.UNFINISHED BUSINESS 6.1 Backyard Chickens Stephanie James provided information on municipalities within Metro Vancouver that allow backyard chickens.Potential negative effects of allowing backyard chickens were discussed.The Staff Liaison will contact municipalities with existing backyard chicken bylaws to gather information and this item will be revisited at the next meeting. 6.2 Letter of Support –Christian Cowley The letter of support for the North Fraser Centre signed by Chair Margaret Daskis was reviewed. R15-015 It was moved and seconded That Mayor and Council be sent the letter regarding the Agricultural Advisory Committee support, in principle,for the proposed North Fraser Centre. CARRIED 7.SUB-COMMITTEE REPORTS 7.1 Food Garden Contest –Stephanie James Stephanie James reported she had visited and judged the entries received for the Food Garden contest.There were many great gardens entered this year and a good number of entries were received.Winners will be notified by the City. Ms. James and the Staff Liaison will make a short presentation and award certificates to the winners at an upcoming Council meeting.It was suggested that City Communications staff be engaged to publicize the event. This contest supports the goal of the AAC to promote food gardening. 7.2 Golden Harvest Kimberly Lauzon provided Golden Harvest tickets and a written update on event plans (although she was unable to attend the meeting).Plans to promote the event were discussed. AAC Minutes September 24, 2015 Page 3 of 3 7.3 Water The Chair reported that water was discussed at the recent Metro Agricultural Advisory meeting.An event is planned for next year on water and agriculture. 7.4 Agricultural Plan Review The Staff Liaison reported that an overview of the Agricultural Plan was given to Mayor and Council in July. Since then the Agricultural Review subcommittee has created a document to show the current status of the goals o f the Agricultural Plan. This document will be presented to Mayor and Council along with a questionnaire that will allow Council to prioritize outstanding goals and associated actions. Plans to communicate priorities to Mayor and Council were discussed.The “update document” will be circulated to committee members for input. 7.5 KPU Update The Chair reported that Kwantlen Polytechnic University (KPU)provided an update on their Southwest BC Bioregional Food System project at the Metro Agricultural Advisory Committee meeting.Research is ongoing.It was suggested that a request be made to KPU for quarterly updates on the project.It was suggested that a delegation from KPU be requested. 8.CORRESPONDENCE 9.ROUNDTABLE Al Kozak supports the stance of the pope on climate change. 10.QUESTION PERIOD 11.ADJOURNMENT It was moved and seconded That the meeting be adjourned at 9:02 pm. /ss Community Heritage Commission Minutes Page 1 The Minutes of the Regular Meeting of the Community Heritage Commission,held in the Blaney Room,at Maple Ridge Municipal Hall, 11995 Haney Place Road,Maple Ridge,British Columbia,on Tuesday, August 11,2015 at 7:00 p.m. COMMISSION MEMBERS PRESENT Len Pettit Community at Large Eric Phillips Community at Large Sandra Ayres Community at Large Brenda Smith, Chair Maple Ridge Historical Society Faye Isaac,Vice-chair Maple Ridge Historical Society Cyndy Johnson-McCormick Community at Large Steven Ranta Community at Large Councillor Speirs Council Liaison STAFF PRESENT Lisa Zosiak Staff Liaison, Community Planner Sunny Schiller Committee Clerk GUESTS Annette Fulford History of the Maple Ridge Heritage Awards Project Report REGRETS/ABSENT 1.CALL TO ORDER There being a quorum present, the Chair called the meeting to order at 7:02 pm and introductions were made. 2.AGENDA ADOPTION R15-023 It was moved and seconded That the Agenda be amended with the following additions:Item 7.4 Hammond Area Plan Update and Item 6.2 Volunteer Appreciation Invitation and be adopted as amended. CARRIED Community Heritage Commission Minutes Page 2 3.MINUTE ADOPTION R15-024 It was moved and seconded That the Minutes of June 2, 2015 be approved. Steven Ranta and Cyndy Johnson-McCormick entered the meeting at 7:08 pm. 4.DELEGATIONS CARRIED 4.1 Annette Fulford -History of the Maple Ridge Heritage Awards Project Report Annette Fulford presented the results of her Heritage Awards research project,which reviewed the history of the program since the inception of this Committee of Council (originally called the Heritage Advisory Committee).Ms.Fulford explained her research methods and related her experience viewing the archives of the local News and the Times newspapers.Ms.Fulford has created a binder which includes an overview of the project,copies of the newspaper articles and the list of winners.Ms. Fulford suggested some further steps to complete the records. The Chair expressed to Ms.Fulford the appreciation of the Commission for undertaking and completing this project. 5.FINANCE 5.1 2016 Business Plan The Staff Liaison reported that the draft 2016 CHC business plan will be due at the end of September, with the final report due in October.Updating the Heritage Inventory was the main project scheduled for 2015 in the Heritage Plan ,however it may need to be postponed as funding has not yet been secured.The existing Heritage Inventory was created in 1998.The Commission discussed options for obtaining funding,including investigating the option of fundraising,applying for grants and seeking advice from City staff. R15-025 It was moved and seconded That the Chair and Councillor Speirs speak to Paul Gill,G eneral Manager, Corporate and Financial Services,that the Staff Liaison contact the project consultant to discuss the project and contact the Real Estate Foundation of BC to discuss a possible grant,and then proceed or cancel the intended update starting in 2015,and (if cancelled)then renew the request for funds in 2016. 6.CORRESPONDENCE CARRIED 6.1 Maple Ridge Historical Society notification of revision to Haney House history Erica Williams,President of the Maple Ridge Historical Society was present and read her recent letter to the CHC regarding some inconsistencies in the history of Haney House. Community Heritage Commission Minutes Page 3 R15-026 It was moved and seconded That the Maple Ridge Historical Society be thanked for their research. CARRIED 6.2 Volunteer Appreciation Invitation An invitation for a Volunteer Appreciation event on September 12th has been received from Yvonne Chui,Arts and Community Connections Manager. 7.NEW &UNFINISHED BUSINESS 7.1 Membership 7.1.1 Calendar of Events –Brenda Smith The Chair reviewed upcoming events including the Volunteer Appreciation event on September 12th,Music on the Wharf on August 24th,Local Voices starting September 3rd and GETIFest on September 19th. 7.1.2 CHC Binder Updates The Committee Clerk gave a demonstration of the electronic CHC Binder including how to navigate the file and a review of the Calendars section. 7.2 St.Andrews Heritage Church The Staff Liaison reported that the property adjacent to the St. Andrews Heritage Church has been sold.The Staff Liaison will report when the property line issue is fully resolved. 7.3 Presentation to Council -October The Chair will make a presentation to Council on October 27,2015 with an update on the activities of the CHC. 7.4 Hammond Area Plan The Staff Liaison provided an update on the development of the Hammond Area Plan.Public input has been gathered and a conceptual plan is being developed.The draft Concept Plan will be presented to Council in the Fall,with a future open house to follow. 8.SUB-COMMITTEE REPORTS 8.1 Communications Subcommittee 8.1.1 Heritage Here Newsletter The Chair reported the latest issue was released in June.The next deadline for article submission is September 15th. 8.1.2 Proposal to re-brand CHC publications The Chair has received a quote to have the Commission logo updated or redesigned for use on business cards,the newsletter template,and letterhead. 8.1.3 GETIFest Volunteers needed to support the booth on September 19th, 2015. Community Heritage Commission Minutes Page 4 8.2 Recognitions Subcommittee 8.2.1 Heritage Marker Inventory Project The Chair reported that this project is moving forward and the database should be delivered in September. 8.2.2 Heritage Awards –Faye Isaac Faye Isaac announced that the next meeting of the Heritage Awards subcommittee will be held on October 6th at 6:00 pm (just prior to the next regular meeting). All CHC members are invited to the meeting and should bring nomination ideas.Ways to advertise the event were discussed.The Chair will update the Heritage Awards brochure. 8.2.3 10th Anniversary Plaque Book Project The Staff Liaison is working on this project. 8.3 Education Subcommittee 8.3.1 Fall CHC Field Trip Sandra Ayres reported the CHC and invited guests will take a field trip on October 24th at 10:00 or 10:30 am for a private tour of the North Vancouver archives and planned museum.The Staff Liaison will book the City bus for this field trip. 8.4 Digitization Project Subcommittee The Digitization Project subcommittee has met with Stephanie Riley, Records Management Coordinator,to discuss steps to begin the digitization project.The Records Management Coordinator has the First Council book available for viewing electronically. 8.5 Heritage Inventory Project Update Previously discussed during Item 5.1.One additional item is the need to ensure all past issues of both local newspapers are properly archived.It was suggested that these old newspapers could be digitized to preserve them. 8.6 Robertson Family Cemetery Project Subcommittee The Staff Liaison reported that the City has received advice on how to resolve ownership and obtain a ‘Place of Interment’designation for this property.This project is underway and a future update will be provided. 9.LIAISON UPDATES 9.1 BC Historical Federation 9.2 Heritage BC The issue with the 2013 Networking Conference fees and membership fees has been resolved.The Chair will correspond with Heritage BC. 9.3 Maple Ridge Historical Society The three Music on the Wharf events held so far have been well attended.The final Music on the Wharf is on August 24th.Volunteers recently carried out a cemetery clean up. Community Heritage Commission Minutes Page 5 9.4 Council Liaison Councillor Speirs suggested holding a draw to include a couple of members of the public in the upcoming North Vancouver museum field trip. 10.COMMUNITY FORUM –Nil 11.ROUNDTABLE -Nil It was moved and seconded that the meeting be adjourned at 9:00 pm. /ss MAPLE RIDGE/PITT MEADOWS MUNICIPAL ADVISORY COMMITTEE ON ACCESSIBILITY ISSUES The Minutes of the Regular Meeting of the Maple Ridge/Pitt Meadows Municipal Advisory Committee on Accessibility Issues, held in the Meadows Room at the Pitt Meadows Municipal Hall on Thursday,September 17, 2015 at 5:00 p.m. COMMITTEE MEMBERS PRESENT Cydney Peacock, Vice-Chair Community at Large, Maple Ridge Bernice Rolls Community at Large, Maple Ridge Maria Kovacs Community At Large, Maple Ridge Councillor Craig Speirs Council Liaison, City of Maple Ridge Kevin Priebe, Chair Community At Large, Maple Ridge Councillor Bruce Bell Council Liaison, City of Pitt Meadows STAFF PRESENT Petra Frederick Staff Liaison /Recreation Coordinator Sunny Schiller Committee Clerk REGRETS/ABSENT Julie Lewis Fraser Health Authority Gillian Small Ridge Meadows Association for Community Living Greg Turnbull Community At Large, Maple Ridge Mike Murray School District #42 Trustee 1.CALL TO ORDER There being a quorum present,the Chair called the meeting to order at 5:07 pm. 2.AGENDA ADOPTION R15-022 It was moved and seconded That the agenda be amended to include Item 7.2 “Work BC event invitation”and be adopted as amended. CARRIED 3.MINUTES ADOPTION R15-023 It was moved and seconded That the Minutes of June 17, 2015 be adopted. CARRIED 4.DELEGATIONS & PRESENTATIONS -Nil MACAI Minutes September 17, 2015 Page 2 of 3 5.COMMUNITY FORUM -Nil Councillor Bell entered the meeting at 5:10 pm. 6.NEW & UNFINISHED BUSINESS 6.1 Survey Roll Out The Staff Liaison presented a printed copy of the survey and outlined the process for sharing the survey with the public. The survey will be available in electronic and paper formats and will be open until November 30, 2015. 6.1.1 Communication The Staff Liaison proposed engaging City Communications staff to work to increase the profile of MACAI.Committee membership was discussed. 6.1.2 GETIFest Opportunity Bernice Rolls outlined the plans for MACAI’s attendance at GETIFest. Feedback from citizens on accessibility (what cities are doing well and what areas need improvement)will be gathered.The Accessibility Survey will be available. 6.2 MACAI Awards 2015 Wrap Up Feedback on the 2015 awards was provided. The event was very successful. 7.NEW BUSINESS 7.1 Adoption of 2016 Business Plan The deliverables for the 2016 Business Plan were reviewed.After discussion R15-024 It was moved and seconded That the 2016 Business Plan be adopted. CARRIED 7.2 Work BC Event MACAI has been invited to attend a Douglas College / Work BC event coming up on September 24th to recognize businesses who successfully employ people with disabilities. Members were asked to RSVP to the Staff Liaison. MACAI Minutes September 17, 2015 Page 3 of 3 7.CORRESPONDENCE -Nil 8.ROUNDTABLE 9.AJOURNMENT 7:00 PM It was moved and seconded that the meeting be adjourned at 6:40 pm. Chairperson /ss Public Art Steering Committee Minutes Page 1 of 3 City of Maple Ridge PUBLIC ART STEERING COMMITTEE REGULAR MEETING The Minutes of the Regular Meeting of the Public Art Steering Committee, held in the Coho Room,at Maple Ridge Municipal Hall on Wednesday,July 22,2015 at 3:00 pm. ____________________________________________________________________________________ COMMITTEE MEMBERS PRESENT Susan Hayes, Chair Artist Barbara Duncan Curator, Maple Ridge Art Gallery Councillor Duncan City of Maple Ridge Leanne Koehn Community at Large Member STAFF MEMBERS PRESENT Yvonne Chui Manager, Arts and Community Connections Sunny Schiller Committee Clerk REGRETS/ABSENTS Wayne Bissky Architect Kristin Krimmel Artist 1.CALL TO ORDER There being a quorum present,the Chair called the meeting to order at 3:02 pm.As guest Sylvia Pendl was not yet present it was decided to proceed with Item 2. 2.AGENDA ADOPTION R15-017 It was moved and seconded That the agenda be amended to include Item 6.8 Meeting Schedule and to remove Item 6.2 Artist in Residence and be adopted as amended. CARRIED 3.MINUTE ADOPTION R15-018 It was moved and seconded That the Minutes June 24, 2015 of be amended to replace the last sentence of Item 6.2 Artist in Residence with “Ms. Duncan will update the committee at a future date”and be adopted as amended. CARRIED 4.COMMUNITY FORUM -Nil Regular Meeting –July 22, 2015 Public Art Steering Committee Minutes Page 2 of 3 5.UNFINISHED BUSINESS 5.1 Creative Cities Network Conference The Staff Liaison updated the committee that she has contacted Creative Cities and has arranged for three committee members to attend the conference within the budget already approved. Susan Hayes, Wayne Bissky and Leanne Koehn to attend. 5.2 Whonnock Public Art The Staff Liaison reported that Collabor8 is planning a soft launch for their Whonnock Lake Public Art Installation at the Farmers Market this week. A press release will be done soon and will be provided to Council for information later this week. 6.NEW BUSINESS 6.1 Hammond Public Art The Staff Liaison updated the committee that a new call for the Hammond Public Art installation will go out in late August / early September, with 4 to 6 weeks allowed for submissions. The committee will receive a draft of the call for submissions for review. Potential installation locations at the stadium have been identified in conjunction with the Parks Department. A web page will be dedicated to the call. This project will be awarded in 2015 and installed in 2016 (installation needs to be scheduled around baseball season).A subcommittee will be struck to evaluate submissions. 6.3 Community Public Art Program The Chair reported the call for this project needs to go out in early September with a deadline at the end of October. $4,500 remains in this allocation.The Staff Liaison will issue a press release in August for distribution. 6.4 Public Art Cataloguing The Chair reported that she and the Staff Liaison have been meeting with the Community Heritage Commission subcommittee responsible for cataloging all heritage plaques in the City. This subcommittee has hired a contractor to create a database to hold the plaque records (including images and maintenance logs). After viewing the database the Chair and Staff Liaison feel that a slightly modified version could be used to inventory the City public art installations. The database would allow maintenance timing and costs to be tracked efficiently. Funding for this project exists within the already approved Committee budget. The committee discussed required and planned maintenance for existing installations. 6.5 Business Plan 2016 The Staff Liaison asked that all members review the existing business plan over the summer. The plan will be discussed in September. Cultural Mapping (long term cultural planning) project will be a main item for the 2016 plan. 6.6 Collection Maintenance Previously discussed under Item 6.4. Regular Meeting –July 22, 2015 Public Art Steering Committee Minutes Page 3 of 3 6.7 Member Terms and Renewal The Staff Liaison reported she had met with the Committee Clerk to discuss member terms and recruitment plans. An artist and a developer will be recruited for the 2016- 2017 term.The Committee Clerk will circulate the recruitment ad to the committee for distribution. Expiration dates for committee members were reviewed by the Staff Liaison. 6.8 Meeting Schedule After discussion it was agreed that the regular schedule of the meeting would be moved to either the third or fourth Tuesday of the month at 3:00 pm.The Committee Clerk will send an email to all committee members asking their preference. 7.ROUNDTABLE The Committee discussed acknowledgement guidelines for the community public art grant program. The Staff Liaison will remind applicants to follow the guidelines noted in the application in future when projects are unveiled/opened and completed. 8.ADJOURNMENT It was moved and seconded That the meeting be adjourned at 4:18 pm. CARRIED 9.NEXT MEETING –To be determined _____________________________________ Chairperson /ss City of Maple Ridge TO: Her Worship Mayor Nicole Read MEETING DATE: November 2, 2015 and Members of Council FROM: Chief Administrative Officer MEETING: Council Workshop SUBJECT: Fire Apparatus Service Life Analysis EXECUTIVE SUMMARY: As part of the City’s commitment to serving the community efficiently and effectively, process reviews are undertaken throughout the year. This report looks at the truck replacement practice of the Fire Department, and identifies what a departure from that practice would mean for the City and its citizens and businesses. RECOMMENDATION: No resolution required. For information only. DISCUSSION: a)Purpose: When Council last considered the replacement of a fire truck, they requested a review of our fire truck replacement practice. This report responds to that request. The Maple Ridge Fire Department has a vehicle fleet with a replacement value of approximately $9 million. The fire-fighting trucks with pumping ability are referred to as “apparatus” and therefore that term is used throughout this report. The focus of this report is the apparatus. The purpose of this analysis is to see whether extending the service life of these vehicles would result in cost savings that could be passed on to taxpayers, while also identifying other impacts, such as service levels and safety. Our analysis is summarized in this cover report; the detailed analysis is also attached. b)Results: There are two financial elements that require analysis. Extending the service life of the fire apparatus has the potential to save the City money. However, this may result in higher insurance premiums for Maple Ridge citizens and businesses, and increased operating and maintenance costs for the City. Potential Savings On the City cost-saving side, we looked at the 20-year replacement cycle used for fire apparatus and calculated the financial savings of keeping the vehicles in service beyond 20 years. On the surface, each additional extension year results in more cost savings. 1 5.4 These savings may be offset by higher operating, maintenance and testing costs. In addition, although this is a financial analysis, non-financial community impacts must be considered. For example, older apparatus may not be as mechanically reliable. This could have dire consequences, depending on the timing of a breakdown. Also, older apparatus are not outfitted with the latest safety equipment, such as air bags and pre-tensioning seatbelts. These are safety items we have come to expect in our society, and employees driving in emergency mode should also have that equipment. • We determined that if all apparatus was kept one additional year each, the bottom line savings could be $327,000. These savings wouldn’t occur in the first year because the trucks are in varying stages of their respective life cycles. For example, extending the life of the first truck due for replacement would save $39,000 in 2016. It wouldn’t be until 2035 that all trucks were beyond 20 years. • We also looked at extending one vehicle for multiple years. For example, the aerial unit could be kept in service additional years, providing the appropriate application, testing and documentation were undertaken. The annual contribution to the replacement reserve could stop after 20 years (in 2016) thus saving $69,000 per year beginning in 2017, or $345,000 in total if it is kept in service for 5 more years. • Next, we polled other municipalities to see what their replacement practices were. We found that most of them use the 20-year cycle, or replace earlier than that. Where they keep the vehicles in service beyond 20 years, this is done primarily where the apparatus become reserve units, to fill in while other vehicles are out of service, or to respond to major incidents. In one case financial capacity was cited as a reason for extending the service life. Community Insurance Premiums While extending the service life of our apparatus could save some money, we also have to look at what this would mean in terms of additional costs, both to the city and to its citizens. That is why we looked at insurance premiums. In determining insurance rates for both residential and commercial property owners, the insurance industry considers a number of factors, including market conditions. Fire risk is one element that is taken into account in setting insurance rates. This is one reason why the Superior Tender Shuttle Service was researched and implemented in the eastern portion of the city a few months ago. As far as fire risk is concerned, each community in Canada is “graded” by the Fire Underwriters Survey (FUS), and insurance industry subscribers to this information can use these grades to inform their insurance rate calculations. This is why we looked at what a potential change in this fire rating would do to insurance premiums. Using extremely conservative assumptions, multiple methods and various scenarios, we calculated that the community would pay about $2 million more in insurance premiums if our fire rating is changed. Given that extending the fire apparatus service life would save about $330,000, taxpayers would be financial disadvantaged by the service life extension of fire apparatus. Our calculated cost to the community, regardless of how conservative our assumptions, suggests there will be an impact on insurance premiums. This is by no means clear. As stated above, FUS grading is just one among a number of factors the insurance industry may use to calculate premiums. Not all insurers use the grades in their premium calculations. 2 Sensitivity Analysis Given the difficulty in quantifying the impact on insurance premiums, we also looked at how much the insurance premiums would have to increase, to offset the savings that would result from extending the service life. We found that a cost increase to Maple Ridge homeowners and businesses of only 2% is enough to eliminate any financial savings of extending each fire apparatus by one year. Additionally, this doesn’t consider the non-financial benefits of renewing the apparatus on a 20-year cycle, such as mechanical reliability of the truck and equipment, and the newer safety features that protect employees and citizens. c) Additional Comments: It warrants comment that all fire trucks come from the United States. Even if they are assembled in Canada, all the parts originate from the United States. For this reason, the U.S. exchange rate has a substantial impact on the final cost of these units. Through the majority of 2011, we could buy US dollars for as low as 95 cents, but the rate presently sits at around $1.33. On an $800,000 truck, this translates into an additional cost of $300,000. On an aerial unit, this would mean over $500,000. Holding foreign currencies is not without its complexities for municipalities, but it, along with timing purchases when exchange rates are favourable, both warrant consideration. Currency fluctuations have a significant impact on our replacement costs. d) Strategic Alignment: The City of Maple Ridge strives for best value for its citizens and taxpayers. The City adheres to a formal Business Planning framework to align operations with the direction of Council. An important component of that framework is that formal Process Reviews are undertake throughout the organization to ensure we are continually seeking out efficiencies and that resources are allocated effectively and achieving intended outcomes. This Fire Apparatus Service Life Analysis is in alignment with our continuous improvement culture. In alignment with Council’s goal of Open and Transparent Government, a technical compendium accompanies this report, so those wishing to review the data supporting the results of the analysis can do so. e) Citizen/Customer Implications: Based on the analysis, extending the service life of fire apparatus could cost commercial property owners $620,000 annually, and residential homeowners $1.5 million annually, for a total of over $2.1 million. Offsetting this could be savings of about $330,000 in the City budget, which would be passed on through reduced property taxes. The net cost to the community would be $1.8 million as a very conservative estimate. Safety of both citizens and our fire fighters also warrants consideration. As trucks age, they become more susceptible to breakdowns. Newer standards and safety equipment are not present with older apparatus. The human safety aspect is not a part of this analysis but should be a qualitative consideration. 3 f) Business Plan/Financial Implications: If trucks are kept in service beyond their planned service life expectancy, and the money is not required for other replacements, there is a bottom line savings that could flow to taxpayers. It may be offset by higher operating, maintenance and testing costs. This must be considered in conjunction with the potential impact of insurance rates for property owners in the City. g) Policy Implications: As mentioned previously, the relationship between community FUS grading and insurance premiums is unclear. FUS has given a strong message that their temporary allowance for one apparatus to be extended an additional five years is not intended to be used as a policy change justification. It was meant to give municipalities additional time in cases where the cost of a replacement was financially onerous. Our current policy is to replace apparatus at 20 years, in alignment with recognized standards. In reality, due to the lengthy design and delivery times, replacements have periodically occurred beyond the 20 year timeline. This is evidenced by our current inventory, where one vehicle is almost 22 and the other is almost 20, and neither have been ordered yet. CONCLUSIONS: The Fire Department has a practice of timing truck replacements to meet recognized standards. Over the next several years, three apparatus need replacing at a cost exceeding $3 million. While extending the service life of these vehicles will save the City money, the potential cost implications on insurance premiums paid by property owners throughout the City could outweigh these savings by a large margin. An increase of only 2% is enough to eliminate any financial savings of extending each fire apparatus by one year. Further, non-financial implications such as mechanical reliability and up- to-date safety features for the protection of our employees warrant consideration. “Original signed by Laura Benson” “Original signed by Howard Exner” Prepared by: Laura Benson, CPA, CMA Manager of Sustainability and Corporate Planning Prepared by: Howard Exner Deputy Fire Chief “Original signed by Dane Spence” “Original signed by Paul Gill” Approved by: Dane Spence Fire Chief Approved by: Paul Gill, B.B.A, C.G.A, F.R.M General Manager: Corporate & Financial Services “Original signed by Frank Quinn” Concurrence: Frank Quinn, MBA, P.Eng Acting Chief Administrative Officer Appendix 1: Technical Compendium – Fire Apparatus Service Life Analysis (October) 4 Appendix 1 Technical Compendium Fire Apparatus Service Life Analysis October 2015 Table of Contents: Schedule A: Maple Ridge Vehicle Replacement Cycle ........................................................................... 2 Table 1 – Fire Department Vehicle Inventory ............................................................................................... 2 Table 2 – Annualized Cost Savings of Service Life Extension ..................................................................... 3 Table 3 – Timelines for Annualized Cost Savings ........................................................................................ 3 Schedule B: Apparatus Replacement Practices at other municipalities ................................................ 4 Schedule C: Insurance Industry Fire Risk Analysis ................................................................................. 5 Calculating Insurance Rate Impacts is Challenging ....................................................................... 6 Schedule D: City of Maple Ridge Residential FUS grades ...................................................................... 7 Table 4 - Maple Ridge Average Home by FUS Grade ................................................................................... 7 Schedule E: Insurance Grading Map – Residential (based on FUS criteria) .......................................... 8 Schedule F: Insurance Rate Impact - Residential .................................................................................. 9 Figure 1 - FUS Example Insurance Premiums - Residential ........................................................................ 9 Table 5 - Maple Ridge Residential Insurance Rate Assumptions ............................................................. 10 Table 6 - Cost Increase Scenarios based on Figure 1 ................................................................................ 11 Figure 2 - Excerpt from FUS Town of Sidney 2014 Report ........................................................................ 12 Table 7 - Cost Increase Scenarios based on Figure 2 ................................................................................ 12 Schedule G: Conservative Residential Estimates ............................................................................... 13 Table 8 - Residential Premium Increase Scenario ..................................................................................... 13 Schedule H: City of Maple Ridge Commercial FUS grades .................................................................. 14 Schedule I: Insurance Grading Map – Commercial (based on FUS criteria) ....................................... 15 Schedule J: Insurance Rate Impact – Commercial ............................................................................. 16 Table 9 - Commercial Insurance Premium Scenarios ................................................................................ 16 Schedule K: Sensitivity Analysis .......................................................................................................... 17 Table 10 - Combined Community Cost Increase ........................................................................................ 17 Schedule L: City of Maple Ridge FUS requirements ............................................................................ 18 Figure 3 - FUS Service Schedule for Fire Apparatus .................................................................................. 18 FUS Response to City of Maple Ridge Service Life Extension Enquiry ...................................... 19 Schedule M: Letter from Fire Underwriters Survey, 2015-06-23........................................................ 20 Throughout this report: • Tables created by the City of Maple Ridge are referred to as “Table 1, Table 2….” whereas • Materials taken from other sources are referred to as “Figure 1, Figure 2…” Schedule A: Maple Ridge Vehicle Replacement Cycle Maple Ridge has a fleet of cars, trucks and heavy equipment. The service life of each vehicle is determined by its ability to serve the organization in a safe and cost-effective manner. The exception to this principle is the Fire Department’s aerial and pumper apparatus. We have 8 such apparatus, the replacement value of which is about $7 million, highlighted below. Table 1 – Fire Department Vehicle Inventory Vehicle Description Year Acquired Age at End of 2015 Replacement Value Aerial and Pumper Apparatus: (considered in the Service Life Analysis) Tower 1 1996 20 yrs $ 1,377,099 Engine 1 2009 7 yrs 762,783 Engine 1-2 2009 7 yrs 752,387 Engine 2 2008 8 yrs 770,623 Engine 3 2008 8 yrs 771,867 Engine 3-2 1994 22 yrs 770,837 Tender 1 1998 18 yrs 810,392 Tender 2 2014 2 yrs 762,783 Subtotal…… $ 6,778,771 Other Vehicles/Support Equipment: Operational Support Unit 2014 2 yrs 867,124 Public Education Vehicle 2011 5 yrs 14,087 Rescue 1 2009 7 yrs 796,165 Rescue 2 2003 13 yrs 190,251 Initial Attack Unit 2008 8 yrs 14,996 Investigation Trailer 2005 11 yrs 12,035 Sprinkler Protection Unit 2008 8 yrs 14,996 Engine 7 – Training Apparatus 1989 27 yrs 489,864 Total $ 8,908,950 The City of Maple Ridge establishes the service life according to those accepted by Fire Underwriters Survey (FUS), a third party organization that assesses and grades the fire risks and defenses of all communities across Canada according to a standardized measuring system, as a service to the insurance industry. FUS standards are based on two national firefighting apparatus standard-setting organizations: the Underwriters’ Laboratories of Canada (ULC); and the National Fire Protection Association (NFPA). Extending the service life of fire apparatus may save the City money, by delaying the purchase of replacement vehicles. These savings potentially could be passed onto taxpayers. We calculated the financial savings of keeping the vehicles in service beyond 20 years. After the initial purchase, each year’s budget includes one-twentieth of the estimated cost as a cost item so that the money can be transferred to a replacement reserve fund. In year 21 this transfer is no longer needed. This reduction would flow to taxpayers if the vehicle wasn’t replaced and the dollars were not required for the next replacement. Each additional extension year results in more cost savings. 2 As Table 2 shows, keeping each apparatus for 21 years could save the City $327,000. Table 2 – Annualized Cost Savings of Service Life Extension ID Description Acquisition Year Age at Dec’2015 Replacement Cost Service Life Annual ERR* FD1 Engine 3 2008 8 771,867 20 39,000 FD2 Engine 2 2008 8 770,623 20 39,000 FD4 Tower 1 1996 20 1,377,099 20 69,000 FD5 Tender 1 1998 18 810,392 20 41,000 FD19 Tender 2 2014 2 485,592 20 24,000 FD10 Engine 3-2 1994 22 770,837 20 39,000 FD14 Engine 1 2009 7 762,783 20 38,000 FD15 Engine 1-2 2009 7 752,387 20 38,000 327,000 *Annual ERR is the amount of general revenue funding transferred to the Equipment Replacement Reserve on an annual basis to pay for the eventual replacement of each vehicle. The savings above assumes that all apparatus is the same age, although in reality they will all reach 20 years at different times. Year 21 will fall in a different year for each vehicle, depending on when each was purchased. As Table 3 shows, the full amount of annual savings wouldn’t occur until 2035. Table 3 – Timelines for Annualized Cost Savings ID Description 2016 2017 2019 2029 2030 2035 FD1 Engine 3 - - - 39,000 39,000 39,000 FD2 Engine 2 - - - 39,000 39,000 39,000 FD4 Tower 1 - 69,000 69,000 69,000 69,000 69,000 FD5 Tender 1 - - 41,000 41,000 41,000 41,000 FD19 Tender 2 - - - - - 24,000 FD10 Engine 3-2 39,000 39,000 39,000 39,000 39,000 39,000 FD14 Engine 1 - - - - 38,000 38,000 FD15 Engine 1-2 - - - - 38,000 38,000 39,000 108,000 149,000 227,000 303,000 327,000 Alternatively, apparatus could be kept in service longer than 21 years. The possible savings resulting from this are shown in Table 3. For example, Tower 1 could potentially stay in service for 25 years, with the 5 additional years saving 5 x $69,000 = $345,000. The two scenarios presented above result in savings ranging from $327,000 to $345,000. These savings must be weighed against increased operating and maintenance costs. Replacement parts become more expensive and difficult to acquire. Furthermore, apparatus downtime represents increased risk for the community in terms of life safety and property damage. The risks associated with a potential failure during a response incident is not quantified in this analysis but should be considered. 3 Schedule B: Apparatus Replacement Practices at other municipalities We also took a look at the replacement practices of surrounding municipalities. It is important to note FUS applies different standards according to population and population density. Maple Ridge is considered a “medium-sized city.” Replacement practices of other “medium-sized cities”: • Abbotsford has two fire halls in rural areas, where apparatus are replaced at 20 years, while at their six halls in more urbanized areas, the replacement schedule is 15 years. Their three reserve engines are all under 20 years old. • City of Langley aims for a 15-year replacement cycle for all first line duty apparatus, then shifts them to second line duty status. Maintenance costs do start to add up with their older apparatus. They will try to extend the life of their tower truck to 30 years, because it is in excellent shape and they were allocated $300,000 to upgrade it. An engine came up for 20-year replacement two years ago; Council deferred the funding for two years but at the same time allocated $60,000 to keep it going as a reserve. • Township of Langley normally replaces apparatus every 20 years. They kept two pumpers beyond this cycle because they were using them for a purpose outside of the FUS apparatus requirements, so there was no impact to their rating. In 2018 they will be purchasing five pumpers/tankers to bring themselves back under the 20-year timeline. • Port Coquitlam replaces their trucks at between 15 and 17 years. The timeline had been reduced due to escalating maintenance costs and some were not going to make the 20- year lifecycle mark. • Pitt Meadows replaces apparatus on a 20-year cycle. They fairly regularly apply for extensions through FUS, as the trucks are usually still in very good condition. • White Rock replaces engines at 20 years and aerial units at 22. Replacement practices of “major cities”: • Coquitlam replaces apparatus on a 20-year cycle; however, they are only considered used for frontline for the first 10 years. After that, they are only used as backfill during the breakdown or servicing of frontline apparatus, and for call-out to major incidents. Replacement practices of “small communities and rural centres”: • Hope generally replaces apparatus on a 20-year cycle. In more recent years, it has become challenging and a deviation from the practice occurs at times. 4 Schedule C: Insurance Industry Fire Risk Analysis The insurance industry calculates premiums for fire and other risks based upon many different factors. For this analysis, we are considering fire insurance premiums. Those paid by the City of Maple Ridge, and also by residents and businesses in the community. Fire insurance premiums are influenced in part by the risk of fire to businesses and homes that is both general in nature, and risk that is specific to Maple Ridge. The insurance industry uses the services of Fire Underwriters Survey (FUS), an independent private company to assess the risk specific to each community. In their documentation, they quote: “Subscribers of Fire Underwriters Survey municipal grading data represent approximately 90 percent of the private sector property and casualty insurers in Canada. Utilizing the staff of Opta Information Intelligence, the organization provides data on public fire protection for fire insurance statistical work and underwriting by most of the member companies of the Insurance Bureau of Canada. It also advises municipalities of its deficiencies in their fire defences and recommends improvements to enable them to better deal with fire protection problems.” They conduct detailed field surveys of the fire risks and fire defenses maintained in communities across Canada and then give them a grade. The intent of the grading system is to provide a standardized measure of the ability of the protective facilities of a community to prevent and control the major fires that may be expected to occur by evaluating in detail the adequacy, reliability, strength and efficiency of the protective facilities and comparing the level of protection against the level of fire risk in the built environment. The grading system gives insurers credible data to help them develop premiums that fairly reflect the risk of loss in a particular location. This analysis answers the following two questions: 1. If the extended service life of fire apparatus translates into a downgrade by FUS, will this cost the community in terms of increased insurance premiums? 2. Is this burden enough to offset the cost savings of extending the vehicle service life? FUS grades are calculated by Certified Fire Protection Specialists, Engineering Technologists and Professional Engineers. There are two grading indices: one for residential dwellings, and another for businesses and apartment buildings. The grading calculation involves looking at about 50 factors in various categories. Each carries a different weight in the grade calculation: • Fire Department Strengths (40% of grade) - Factors under this category would include our firefighting force relating to career/on-duty and training; firefighting apparatus quantity, accreditation, design specifications, flow and pressure, maintenance history, test records, and age. • City Water Supply (30%) - Factors under this category would include capacity relating to flow, pressure and availability. • Fire Prevention Activities (20%) – Factors would include inspections, among other factors. • Communications and Dispatch (10%) – Factors include standards relating to alarms, dispatch, pagers, etc. 5 The age of apparatus would affect the fire department strengths component of the grade. Where standards exist from the Underwriters Laboratories of Canada (ULC) and the National Fire Protection Association (NFPA), FUS generally aligns with their standards. For example, the ULC’s S515 “Automotive Fire Fighting Apparatus” and the NFPA’s 1901 “Standard for Automotive Fire Apparatus” are similar to the FUS “Service Schedule for Fire Apparatus for Fire Insurance Grading Purposes.” Historically FUS would review community grades every 25 years or so. In an effort to meet insurance industry demand for more current information, they are moving toward shortening this review cycle. They are also developing an online portal for fire chiefs, allowing them to log in and perform scenario analysis that would assist in the type of analysis included in this staff report. Calculating Insurance Rate Impacts is Challenging Unfortunately but not unexpectedly, the insurance industry is not eager to share their methodology for rate setting. Insurance underwriting is a complex and competitive business, and their proprietary risk-premium analysis models are critical intellectual property. We spoke to a number of senior people who work in Maple Ridge and Tri Cities, insurance agencies as well as one who works in the Insurance Bureau of Canada. We were unable to get a definitive number or range that would suggest that if our grade went down by “x”, premiums would go up by “y”. We were told there are a number of variables that influence premiums, and fire is just one risk factor that makes up insurance coverage. Furthermore, we were told that premiums are heavily influenced by market conditions. Every insurance company has its own formula for calculating their underwriting capacities and insurance rates, and despite the efforts of staff, we were unable to determine the extent to which any of them utilize the grades in their calculations. We were, however, able to get some general ballpark numbers through a local insurance agent who has many years of industry experience in Maple Ridge. Having said this, if the majority of insurers use this index to inform their rate setting, along with other factors, it stands to reason that a community that is less able to prevent and control fires will eventually have to pay more for fire insurance coverage. 6 Schedule D: City of Maple Ridge Residential FUS grades FUS has two different grading scales: one for residential and the other for commercial properties. This section deals with residential properties, and the scale is referred to as the Dwelling Protection Grade (DPG) scale. It ranges from 1 (properties with the best fire protection) to 5 (properties with essentially no fire protection). Grade 3 is split into 3a and 3b, resulting in 6 potential grades. FUS Dwelling Protection Grade Scale Best Worst 1 2 3 a 3b 4 5 Most Maple Ridge residential properties fall into the 3a category, as shown in Table 4. The line showing 3a (STSS area) on the table is not a separate FUS category, but shows formerly 3b properties, until the recent Fire Department initiative successfully gained accreditation from FUS for Superior Tender Shuttle Service (STSS); With the accreditation, these properties were upgraded to 3a, resulting in potentially lower insurance premiums, and improved fire protection. Table 4 - Maple Ridge Average Home by FUS Grade Grade Description of Grade: Property Improvement Values* Number of properties Average value of improvements 3a Within 304m of a fire hydrant and within 8km of a fire hall 4,493,243,483 24,988 179,816 3a (STSS area) More than 304m of a fire hydrant and within 8km of a fire hall and within 5km of an approved water source 147,804,700 773 191,209 3b More than 304m from a fire hydrant and within 8km of a fire hall 78,427,100 438 179,057 5 More than 8km from a fire hall 14,350,200 93 154,303 4,733,825,483 26,292 180,048 *Does not take into account (1) replacement value, and (2) the value of household contents that residents may insure, and as a result, subsequent insurance premium estimates will be understated. The following map, developed in-house, illustrates the distribution of grades throughout Maple Ridge using Dwelling Protection Grade criteria, which relates the location of homes to distance from fire halls and hydrants. 7 Schedule E: Insurance Grading Map – Residential (based on FUS criteria) 8 Schedule F: Insurance Rate Impact - Residential The Dwelling Protection Grade (DPG) is the grading scale used by FUS. Many insurers have simplified the FUS scale into a 3-tiered system, with DPG grades 1, 2 and 3a considered Fully Protected, 3b and 4 considered Semi-Protected, and 5 considered Unprotected. 3-tiered scale used by some insurers Protected Semi-protected Unprotected 1 2 3 a 3b 4 5 Figure 1 comes from a Fire Underwriters Survey publication, and uses data from a number of insurance quote calculations. It shows examples of insurance premiums at difference replacement values, depending on the tiered protection level. For example, in an unprotected area, the premium for a $175,000 home would be $2,040. In a semi-protected area, the premiums would be $815, a reduction of 60%. In a fully protected area, the premium drops a further 32% to $555. This table demonstrates the financial benefit to the community of having a higher degree of fire service. Figure 1 - FUS Example Insurance Premiums - Residential The vast majority (98%) of the residential property value in Maple Ridge is considered protected. FUS grade 5 FUS grades 3b, 4 FUS grades 1, 2, 3a 9 Using the premium examples from Figure 1, we can convert these premiums to rates. So using the $175,000 example from the previous page, dividing the $555 premium for a fully protected area by the replacement value, and converting to a per-thousand-dollar amount, we get a rate of 3.171. We can see the conversion of premiums to rates in the last three columns of Table 5; looking across the $175,000 row, a premium of $555 generates a rate per thousand of 3.171. Our average assessed in the protected category (3a, including the STSS area) is just over $180,000. This is calculated by looking back at Table 4, taking the property improvement values for those two lines, and dividing them by the number of properties. ($4,493,243,483 + $147,804,700) ÷ (24,988 + 773). Looking at Table 5, the closest replacement value amount we have rates for is $175,000. So looking across that line to the protected column, the rate we will use for the analysis for 3a properties is 3.171. A similar average home value is represented by the semi-protected properties in Maple Ridge (3b values $78,427,100 ÷ 438). The $175,000 line below under the semi-protected column shows a rate of 4.657. And for unprotected properties, the average home is closest to the $150,000 row below, for a rate of 11.667. The final row on Table 5 shows these rates, which we will use for the analysis. Table 5 - Maple Ridge Residential Insurance Rate Assumptions Replacement Value $ Example Premiums Rate per $1,000 Protected Semi- Protected Unprotected Protected Semi- Protected Unprotected 1, 2, 3a 3b, 4 5 100,000 $ 315 $ 465 $ 1,165 3.150 4.650 11.650 125,000 400 505 1,470 3.200 4.680 11.760 150,000 475 700 1,750 3.167 4.667 11.667 175,000 555 815 2,040 3.171 4.657 11.657 200,000 625 915 2,300 3.125 4.575 11.500 250,000 755 1,110 2,790 3.020 4.440 11.160 300,000 890 1,310 3,290 2.967 4.367 10.967 350,000 1,015 1,495 3,750 2.900 4.271 10.714 400,000 1,140 1,675 4,200 2.850 4.188 10.500 450,000 1,260 1,855 4,655 2.800 4.122 10.344 Rate to use=> 3.171 4.657 11.667 10 With rate estimates now established on the bottom row of Table 5, we applied those rates to the Maple Ridge assessment data from Table 4. For example, the protected rate of 3.171 per $1000 from Table 5, applied to the 3a category assessed value of $4.5 billion shown in Table 4 drives an insurance premium estimate of $14.3 million, and another $0.5 million for the 3a STSS properties, shown below in Table 6. For the 3b semi-protected category, we applied the rate of 4.657 to the Table 4 value of $78,427,100 for $400,000 in premiums. Another $200,000 for the unprotected properties gives a total residential insurance cost of $15.3 million, based on our current grades. The next column below shows what a drop of one grade level would do. Premiums would increase 45% to $22.1 million. The remaining three columns provide other scenarios. Table 6 - Cost Increase Scenarios based on Figure 1 Residential FUS Grade Homeowner cost at current grade Homeowner cost at one- level downgrade Homeowner cost at 30% premium increase Homeowner cost at 20% premium increase Homeowner cost at 10% premium increase 3a $ 14.3 M $ 20.9 M $ 18.5 M $ 17.1 M $ 15.7 M 3a-STSS $ .5 M $ .7 M $ .6 M $ .6 M $ .5 M 3b $ .4 M $ .4 M $ .5 M $ .4 M $ .4 M 5 $ .2 M $ .2 M $ .2 M $ .2 M $ .2 M Total homeowner cost $ 15.3 M $ 22.1 M $ 19.8 M $ 18.3 M $ 16.8 M Difference in relation to current grade homeowner cost $ 6.9 M 45% $ 4.6 M 30% $ 3.1 M 20% $ 1.5 M 10% 11 While the premium examples in Figure 1 represent “typical Canadian communities,” FUS completed studies in other BC communities over the past few years, and we looked to those reports for further insurance premium data. The following table shows numbers that FUS used in a 2014 Town of Sidney study. These same examples were also used in a 2009 City of Campbell River study. Figure 2 - Excerpt from FUS Town of Sidney 2014 Report We repeated our calculations based on the insurance premium estimates from the Campbell River and Sidney reports, converting them first to rates per thousand, then applying them to the Maple Ridge average home assessments by FUS grade. Those results are shown below. Table 7 - Cost Increase Scenarios based on Figure 2 Residential FUS Grade Homeowner cost at current grade Homeowner cost at one- level downgrade Homeowner cost at 30% premium increase Homeowner cost at 20% premium increase Homeowner cost at 10% premium increase 3a $ 16.6 M $ 27.3 M $ 21.6 M $ 19.9 M $ 18.3 M 3a-STSS $ .5 M $ .9 M $ .7 M $ .7 M $ .6 M 3b $ .5 M $ .5 M $ .6 M $ .6 M $ .5 M 5 $ .2 M $ .2 M $ .3 M $ .2 M $ .2 M Total homeowner cost $ 17.8 M $ 28.9 M $ 23.2 M $ 21.4 M $ 19.6 M Difference in relation to current grade homeowner cost $ 11. M 62% $ 5.3 M 30% $ 3.6 M 20% $ 1.8 M 10% Using data from the Sidney report, the existing cost would be $17.8 million at the current grading, increasing 62% to $28.9 million if the City was downgraded one level. Another option for insurance premium data would be to survey homeowners in the Superior Tender Shuttle Service area. However, since the accreditation from 3b to 3a occurred just this spring, a good portion of homeowners will not have renewed their insurance yet. Furthermore, this data would only provide the change between a grade of 3a and 3b, not the other grades. And finally, homeowners may change coverage when they renew, perhaps considering earthquake insurance, and this may obscure the differences. 12 Schedule G: Conservative Estimates Given the level of uncertainty surrounding the insurance rate estimates, we wanted to ensure the analysis was on the conservative side. The following points demonstrate that assurance: • We used two sets of insurance premium examples published by FUS: one representing “typical Canadian communities” and the other used in studies completed for the Sidney and Campbell River. We used the former in the final analysis, because the rates generate the lowest community impact. • Whereas the “one-level downgrade” has some basis in information provided through FUS, and the “30% premium increase” has some basis with anecdotal remarks by homeowners recently upgraded as a result of the Superior Tender Shuttle Service, and also through a local insurance broker, we could have chosen the “20% premium increase” scenario as representing about half of a downgrade, if there was such a thing. However, we selected the “10% premium increase” scenario for analysis, to further remain on the conservative side. • Our calculations use assessed value, whereas property owners would generally insure their properties for replacement value. Therefore, these figures are on the low side. If replacement values had been used, the cost differences in relation to current grade cost would be higher. • A portion of property owners would also insure contents, whereas we have no data on this value. Had these values been included, the cost differences in relation to current grade cost would be higher. Based on the assumptions outlined above, the cost to residential homeowners of a FUS downgrade would be $1.5 million annually. Table 8 - Residential Premium Increase Scenario Residential FUS Grade Homeowner cost at current grade Homeowner cost at 10% premium increase 3a $ 14.3 M $ 15.7 M 3a-STSS $ .5 M $ .5 M 3b $ .4 M $ .4 M 5 $ .2 M $ .2 M Total homeowner cost $ 15.3 M $ 16.8 M Difference in relation to current grade homeowner cost $ 1.5 M 10% The next step in the analysis is to consider the impact to commercial property owners. 13 Schedule H: City of Maple Ridge Commercial FUS grades The grading scale FUS uses to assess commercial properties is called the Public Fire Protection Classification (PFPC) scale. It ranges from 1 (properties with the best fire protection) to 10 (properties with essentially no fire protection). Public Fire Protection Classification Page 18 shows the FUS commercial property grading criterion applied to commercial and industrial properties and apartment buildings. • Grade PFPC-6 (shown in green) are within 150 metres of an acceptable fire hydrant and within 5 kilometres of a fire hall. The City has just over $1 billion in assessed value in this category; • Grade PFPC-9 & 10 (shown in yellow) are all other commercial properties, valued at $165 million. The following map, developed in-house, illustrates the distribution of grades throughout Maple Ridge using Public Fire Protection Classification criteria, which relates the location of businesses to distance from fire halls and hydrants. 14 Schedule I: Insurance Grading Map – Commercial (based on FUS criteria) 15 Schedule J: Insurance Rate Impact – Commercial Methodology A – Rate per $100 The insurance industry quotes commercial rates in cost per $100 of insured (replacement) value. The rates vary according to risk. For example, an office building might pay 20 cents per $100, while a restaurant might pay between 50 and 70 cents per $100, given the higher risk of fire. The assessed value on commercial property improvements is just over $1 billion for areas in Maple Ridge considered by FUS to be “protected”. In evaluating the results of a downgrade, we have ignored properties already classed as “unprotected.” At various rates per $100 of value, the table shows what the fire insurance premiums would be: Table 9 - Commercial Insurance Premium Scenarios Fire Insurance per $100 $ 0.10 $ 0.20 $ 0.30 $ 0.40 $ 0.50 $ 0.60 $ 0.70 $ 0.80 Rate applied to assessed value of commercial improvements of $1,034,038,509 $ 1.0 M $ 2.1 M $ 3.1 M $ 4.1 M $ 5.2 M $ 6.2 M $ 7.2 M $ 8.3 M *Note that in the $0.20 scenario, the actual number is $2,068,077 The following points demonstrate the conservative elements of the estimate: • We have used the 20 cents per $100 rate, and city-wide, this would be on the low side • We have used assessed value, whereas usually property owners would insure for replacement value (higher than assessed value) • A percentage of property owners would also insure contents, whereas we have no data on this value. Acknowledging this number is on the low side, the fire insurance premiums paid by commercial property owners across the City is assumed to be $2.1 million. In talking with an experienced local broker, we selected a 30% increase assumption if FUS was to downgrade the City to PFPC-8. A 30% increase on $2.1 million in premiums is $620,000 (rounded). Methodology B – Average Premium We were also told by our local advisor that the average commercial fire premium in Maple Ridge was about $2,000. There are 1,052 commercial properties in the City, some who pay more, and some who pay less. This number also comes to $2.1 million, matching the value under Methodology A from applying 20 cents per $100 to the assessed value. Based on both methodologies above, the cost to commercial property owners of a FUS downgrade would be $620,000 annually. 16 Schedule K: Sensitivity Analysis An alternative methodology to looking at the impact of extending the service life of fire apparatus is determining how much of an insurance rate increase it would take to offset the savings to the City in keeping the trucks in service beyond the FUS standards. The conservative estimate for homeowner insurance cost increases is $1.5 million on an assessed value of $4.7 billion, from a base of $15.1 million (Table 6 and Table 8). On the commercial side, the cost increase is estimated at $620,000 on an assessed value of $1 billion, from a base of $2.1 million (Schedule J). Table 10 - Combined Community Cost Increase Assessed Value Current Cost Cost Increase Residential 4,733,825,483 15,143,679 1,514,368 Commercial 1,034,038,509 2,068,077 620,423 5,767,863,992 17,211,756 2,134,791 The base we have used for current insurance premiums for the community, acknowledging this figure is low (see Schedule G: Conservative Estimates), is $17.2 million. As illustrated in Table 2, the maximum annualized savings of extending the life of all apparatus for one year each is $327,000. What increase in insurance premiums would it take to eliminate the savings on the service life extension? To answer this, we can divide the annualized savings by the annual community insurance premium estimate (current cost) from Table 10: $327,000 / $17.2 million = Less than 2% In other words, if premiums rise by about 2% as a result of extending the trucks one year each, the savings are entirely offset by the premiums. The savings of $345,000 from extending the life of Tower 1 for five years is also eliminated by a 2% increase in insurance premiums for home and business owners. We can conclude that if the extended service life of fire apparatus has the potential to raise insurance rates by 2% or more, we should continue to operate under the current FUS Service Schedule for Fire Apparatus, Schedule L. And further, the 2% limit doesn’t take into consideration the non-financial benefits of renewing the apparatus on a 20-year cycle, such as mechanical reliability of the truck and equipment, and the newer safety features that protect our employees and citizens. This concludes the analysis. The following appendices provide additional information on Fire Underwriters Survey. 17 Schedule L: City of Maple Ridge FUS requirements The “Service Schedule for Fire Apparatus for Fire Insurance Grading Purposes” (see Figure 3) shows a summary of fire apparatus requirements. Figure 3 - FUS Service Schedule for Fire Apparatus FUS last surveyed Maple Ridge in 1989. The requirements at the time, resulting in the current grades shown on Schedules A and B (with the exception of the STSS upgrade in 2015) were as follows: • Six pumper apparatus and 1 reserve - full credit under pumper apparatus was received. • One aerial apparatus was required - full credit under aerial apparatus was received. • Total pump capacity needed was 3000IGPM with Max Required Fire Flow at 3500IGPM. The District had 5377IGPM at that time and received full credit under pump capacity apparatus. As this survey is now 26 years old, the grading information is outdated. In 1989, Fire Hall No. 3 was still under construction, and the department was served by volunteer fire fighters. Significant change has happened since to reduce the risk of fire damage to homes and businesses here, including the completion of the third fire hall, the addition of career fire fighters, and 24/7 service capacity. On the flip side, the community has grown, becoming more dense and more spread out geographically, and a detailed FUS study could potentially identify shortfalls relating to growth. In recent years FUS has recognized municipal budgetary constraints, and has modified its apparatus age requirements. These modified requirements are shown on Schedule B, specifically in notes 1 and 2. Maple Ridge is considered a “medium-sized city”, and therefore the 18 modified requirements can be assumed for apparatus to be used as a Reserve after the 20 year mark. Further, there is a detailed process where an extension of up to five years may be arranged if the Fire Department can demonstrate an acceptable replacement schedule and three years of maintenance records for the apparatus in question. The final piece is that the apparatus has to pass annual performance inspections to maintain the extension. FUS Response to City of Maple Ridge Service Life Extension Enquiry The following pages include a letter received back from FUS in response to our inquiry about extending the service life of fire apparatus. The response depended on the 1989 FUS study, as they have not yet undertaken any subsequent detailed analysis on our fire protection capacity. In short, an extension would only be granted for one apparatus, providing this is a temporary situation and not a policy shift. Anything more would result in a downgrade for Maple Ridge. If the extension was for the aerial unit, only the commercial grade would decrease. For an extension to be granted, we would need to apply to FUS, submit extensive testing documentation from past years, and undertaken more significant and costly annual testing on the vehicle in question. 19 Schedule M: Letter from Fire Underwriters Survey, 2015-06-23 20 21 22