he

ee Cees

Martin Millerchip

Contributing Writer
miller@nsnews.com

EVEN the critics agree that municipal
control of transit and road networks is
a good idea.

Rut the proposal for a new Greater Vancouver
Transportation Authority (GVTA) presently
being debated by the Greater Vancouver Regional
District (GVRD) has member municipalities
sharply divided over the cost implications for local
taxpayers.

! The deal that has been negotiated between the
province, presently responsible for BC Transit,
and the GVRD was first made public in October
last year.

Back-up data for the financial projections and
debt assumptions contained in the agreement
were conspicuously absent.

“That absence, coupled with a very short time-

line for public consultation and political decision
has some municipal councillors convinced that it
is the province that will benefit most from the

“> new deal.
’ >. According to West Vancouver Councillor Allan

Williams, the GVTA will be “a billion-dollar cor-
ration — a bigger budget than the whole
GVRD. It (the province) created the debt. Why
should it be able to unload that on the region?”
An assessment of che financial implications of
the deal was finally released Wednesday, the very
day that a short consultation process of eight pub-

* fic meetings began.

But even the long-awaited document kas not
resolved the debate.

GVRD chief administrative officer Johnny
Carline says the latest examinations have involved
independent consultants, municipal staff and the
GVRD’s own internal audiror.

Carline reported that they conclude:

Mi The initial data can be tied into audited figures
with only minor exceptions and can, therefore, be
relied upon.

From page ¥

cer Dave Burgess. “We do not have a cause (of the fire) at this time and we have

not ruled out anything.”

Paine Hardware co-owner Tim Holt has been involved in the crews* efforts
since the fire and continues to be amazed at the number of people who have

cailed or visited the store’s charred shell.

“People have been so nice it’s unbelievable. You forget how many people

have been through here,” said Holt.

While the cause of the blaze is still unknown, Holt is starting to get an idea
af how much he has lost, though he is more impressed by the items that sur-
vived the fames. The original 1906 cash register that added up every customer’s
purchase with the resonating clatter of moving metal parts always had been and

GVRD residents facing
up to $300 million in
additional transit taxes

@ The condition of the road system declassified
by the province as part of the proposal is gencral-
lv good and the cost implications are somewhat
less than those provided for in the negotiator’s
model.

& The condition of the transit fleet and an appro-
priate replacement schedule has been used in the
financial modeling.

@ The projected costs/revenues in the future are
sound, based on the best available evidence;
changes in certain key parameters, such as infla-
tion and productivity can significandy affect the
amount of revenue to be obtained from the new
sources. If the worst case scenario came about, the
transit system would fikely have to be expanded
less than envisaged in the scenario used by the
negotiators.

@ The proposed funding arrangements involve
what could be described as downloading on aver-
age of about $15 million per year. This conclusion
and its interpretation are very dependent on
assumptions made about the reliability of revenue
sources. In any event, the provinee’s contribution
would remain well above the proportion con-
tributed by other provinces.

@ The tong-term capital plan is financeable, the
authority should receive a sound credit rating, and
the preferred strategy of borrowing through the
Municipal Finance Authority of British Columbia
should not impact the credit rating of that body.

Critics of the agreement contend that the
financial revue confirms fears that revenue and
debt projections could end up costing the new
GVTA far more than estimated,

Supporters argue the review shows the agree-
ment with the province is reasonable and point to
the province paying 45% of the costs of the system
(in the first year only) compared with Ontario’s

Friday, Janua

: NEWS photo Paul McGrath
BUS driver Susan Falls told Wednesday's GVAD transportation meeting that fare evaders cost BC Transit millions of dollars. She
listed 53 different ripoffs she has caught. When Mississauga, Ontario, instalied electronic fareboxes revenues jumped 15%.

Transit plan costs unclear

34.9% share of Toronto's transit system and
Quebee’s 3.5% of Montreal's.

North Vancouver City Mayor Jack Loucks is
one who believes the citizens will get a better
transit system with the municipalities in control —
“providing the price is right.”

Loucks told the News Wednesday that he had
read the latest financial review and “felt much
happier after going through it.

“It gave a lot of answers to questions that were
in our minds.”

But Eva Hage, a senior consultant with Marvin
Shaffer and Associates, conducted sensitivity tests
to varying assumptions made by the negotiators.

Increase in the inflation rate of 1% over that
assumed in the agreement could increase costs by
$40 million 2 year, while every 1% shortfall in rid-
ership projections would cost an additional $3
million.

The negotiated agreement projects that the
aggressive transit expansion plan (a doubling of
buses; the Broadway-Lougheed-Coquitlam-New
Westminster LRT; more SkyTrain cars) will, in the
tenth year, require $180 million ir additional
funds beyond those provided by current revenuc
sources.

That new money will be raised through a vari-
ety of levies — all paid for by the taxpayer.

They could include vehicle taxcs based on
engine size; bridge and highway tolls; parking
fees; and special taxes on residents of benefitting
municipalities.

But Hage’s analysis concludes that the forecast
$180 million shortfall could vary dramatically:
setting the range from as low as $60 million to as
high as close ro $300 million.

Carline concludes:

“In those circumstances, the Authority would
not run a deficit but would have to provide a {evel
of service improvement somewhat, perhaps even
significantly, lower than that projected in the
negotiator’s report and in Transport 2021,
although still, in all jikelihood, better than could
be achieved under the present governance and
funding arzangemenis.”

New Paine store to rise from ashes

continues to be a survivor. So did the majority of the bulk nails and screws

housed in their metal trays. ; _
“There’s a lot of not personal things, but old catalogues and scuff that are

irreplaceable,” said Holt. “But believe it or not candles stored at waist level were
untouched.” Holt doesn’t have to show up every moming, bur like most work-
ing people, he is a slave to his schedule — ar least for a while. The insurance
company that will end up footing the bill for the damages has taken over the
day-to-day operation of the site.

“We basically have no say in anything that goes on here anymore,” said Holt.

Instead he busies himself with odd jobs and making plans for the future.

“We are going to try to keep it all original again ... we'll obviously nor be
able to keep the floors with the grooves worn in over the years,” said Holt. “But
we're going to be open for another 90 years.”

ry 9, 1998 -- North Shore News — 3

Speakers
raise host
of concerns

From piace 1

West: Vancouver councillors, bus dii-
Sers, COMTTY UNITY association members
and taxpayers faced with shouldening
a billion-dollar toad if the proposed
agreement is approved by the GYRD
at the end of February,

While several speakers: questioned
the financial bostem line of the agree-
ment, others took issue with the short
timelines adached to the proposal and
the accour tability of the new author:
ity.

On financing:

“This is an agreement re: down-
loading 4 provineid debt, prior liabil-
ities, and prior costs, A deal that is
backed up with little or no facts.

“Any normal — Gusinessman
wouldn't be enterin; «> agreement
worth over a billion dollars with a 14-
page brief”

— WH Conn. Victor Durman
On debt assumption:

“You're buying a railway system
tor a dollzr. Anybody who went to a
garage sale and bought a railway set
and took it home to his wife fora dol-
lar for his kids would be told ‘You
idiot, it won't work.” *

— WY Coun. Victor Durman
On how the new Transit Authority
will be run:

“It will be a small group of 15
people who are going to run transit
and who don’t know anything about
it.”

— WY. Coun. Alan Williams

“Ther: has to be a more arms-
length relationship between the
GVTA board and the GVRD board
— the political wing.

“It needs to have a different mem-
bership comprised of the real stake-
halders: that’s some GVRD directors;
some very senior, experienced busi-
ness experts — some tn transit, some
not in transit; representatives of the
customers; representatives of the
emplovees.

“If that issue (of governance) is
not addressed correctly we are wast-
ing our tme.”

~~ Lyan Valley resident Dan Ellis
On the short timeline:

“If we don’t do it now, we cant
get started in 1999. The (provincial)
devolution of the roads takes place in
April of this year without any com-
pensation to any of the municipalities
for the maintenance and upkeep of
those roads.

“It’s going to happen anyway. |
maintain you are berter off working
with people.”

—GVRD chairman Gromge Puil

“If we believe thar what has been
proposed has too many pitfalls 1 think
that we should reject it. But we have
to be aware of the danger that we may
or may not be able to negotiate some-
thing better ona later date at a differ-
ent window of opportunity.”

—Delta Mayor Beth Jolmson
On duplication of services (and
best laugh):

“It’s not as if we are going to
build a bureaucracy like I’ve heard the
mayor of Surrey say we're going to
have three different snowplows out
on the same road. We’re not going to
have any snowplows out. (Laughter)
“It’s time tor my milk and cook-
ies.” :

—GVRD chairman George Puil
On the fear that, as a cesignated
low-growth area of the GVRD, the
North Shore will pay more for new
transit than it receives:

“I would like to see a North Shore
Transit Commission, that’s if the peo-
ple on the North Shore can get along
with each other long enough to form
one.”

-— Bus driver Fred McCormack
On ‘fare evaders costing transit mil-
lions of dollars a year:

“The most disheartening thing
about my job is that all through my
shift people are trying to rip me off.
It’s like a cancer.”

— Bus driver Susan Falls