Metro Vancouver Board Moves Forward with Independent Performance Audit, Board Chair Addresses Corporate Spending | Metro Vancouver Board Moves Forward with Independent Performance Audit, Board Chair Addresses Corporate Spending | | <div class="ExternalClass74662B02E5CC4FDEBA77C382CE6751CC"><p><br></p><p>Today, Metro Vancouver's Board of Directors passed a resolution to confirm initiation of an independent performance audit of the North Shore Wastewater Treatment Plant Program. At the same meeting, Metro Vancouver's Board Chair, Mike Hurley, announced a pause on board and committee members' international travel and intent to proceed with a governance review.<br></p><p><strong>Statement from Chair Hurley:</strong></p><p>“Today, the Metro Vancouver Board of Directors made critical decisions aimed at restoring the trust of residents in this region and ensuring the public has confidence that Metro Vancouver is taking the right steps in expanding critical infrastructure to meet the needs of our rapidly growing population.</p><p>Legitimate questions have been raised about the North Shore Wastewater Treatment Plant Program, and we need to move quickly to review all of the facts, especially to ensure future projects do not experience similar problems. I am pleased that the Board unanimously approved my motion to initiate an independent performance audit of the project, and I look forward to receiving the audit team's report.</p><p>I have ordered a pause on all international travel by Metro Vancouver board directors and committee members while we review policies and spending limits related to travel, conferences, and hospitality. I also intend to proceed with a governance review to identify areas for improvement, to drive performance, and to be absolutely clear about roles and responsibilities within the organization.</p><p>We enjoy an exceptional quality of life in this region, and much of that can be attributed to the critical work of Metro Vancouver — whether that's clean drinking water, wastewater treatment, managing parks and natural spaces, air quality monitoring, delivering affordable rental housing, and other important priorities. I'm looking forward to working with the Board and Metro Vancouver staff to ensure we are in the best position to continue and enhance this important work on behalf of our residents."<br></p><p><strong>R</strong><strong>eviews Underway:</strong></p><p><strong>On the North Shore Wastewater Treatment Plant Program Independent Performance Audit:</strong> The performance audit will include retaining reputable, experienced external legal counsel to advise the Board on the performance audit. The external legal counsel will work with lawyers representing Metro Vancouver in ongoing litigation related to the North Shore project to develop and recommend a scope of work, terms of reference, and a process for selecting an independent and qualified reviewer.</p><p><strong>On international travel</strong>: Chair Hurley has paused international travel for Board and Committee members. Staff will review existing policies related to Board travel and report back, so that the Board can ensure responsible use of resources.</p><p><strong>On a governance review for Metro Vancouver:</strong> Chair Hurley intends to proceed with a governance review of Metro Vancouver.</p><p><br></p><br><p><strong>Background on the North Shore Wastewater Treatment Plant Program:</strong></p><p>The North Shore Wastewater Treatment Plant Program consists of three projects — the construction of a new treatment plant, the construction of related conveyance infrastructure, and the preliminary design for the decommissioning of the current Lions Gate Wastewater Treatment Plant.</p><p>The two components of the conveyance infrastructure were the pump station and the sewer pipes. Both projects were completed on time and on budget by North Shore Conveyance Partners, a joint partnership between Kenaidan Contracting Ltd. and Michels Canada.</p><p>In early 2022, Metro Vancouver terminated the contract for Acciona Wastewater Solutions LP to build the future North Shore Wastewater Treatment Plant. Acciona underperformed and consistently failed to meet its contractual obligations which include delivering the project on time and within budget, as required under the initial fixed-cost design-build-finance model. Choosing to initiate termination was a difficult but necessary decision after considering all other options.</p><p>Because the fixed-price contract was terminated, Metro Vancouver created a new cost estimate that would reflect the reality of delivering projects in a post-Covid world. In updating the cost estimate, Metro Vancouver took into consideration the many large infrastructure projects in the market today, which are all competing for resources; the cumulative effect of inflation of construction and labour costs; and the significant work that was needed to address design and construction deficiencies.</p><p>Over the coming months, Metro Vancouver is working with construction manager PCL to continue early work and AECOM will complete the plant design.</p><p>Metro Vancouver looks forward to delivering a high-quality wastewater treatment plant that will protect the health of residents and the environment for decades to come. <br></p><p><br></p><p style="margin-bottom:20px;"><strong>Related Board Reports and Documents</strong></p><ul><li>North Shore Wastewater Treatment Plant Program website, featuring FAQ: <a data-cke-saved-href="http://www.metrovancouver.org/nswwtp" href="http://www.metrovancouver.org/nswwtp">www.metrovancouver.org/nswwtp</a><br><br></li><li>North Shore Wastewater Treatment Plant Program Backgrounder: <a data-cke-saved-href="https://metrovancouver.org/services/liquid-waste/ConstructionDocuments/nswwtp-backgrounder-document-background-paper.pdf" href="/services/liquid-waste/ConstructionDocuments/nswwtp-backgrounder-document-background-paper.pdf">https://metrovancouver.org/services/liquid-waste/ConstructionDocuments/nswwtp-backgrounder-document-background-paper.pdf</a><br><br></li><li>June 2023 Presentation to Liquid Waste Committee on Program Background, including timelines: <a data-cke-saved-href="https://metrovancouver.org/boards/LiquidWasteCommittee/LWA_2023-Jun-14_AGE.pdf#page=8" href="/boards/LiquidWasteCommittee/LWA_2023-Jun-14_AGE.pdf#page=8">metrovancouver.org/boards/LiquidWasteCommittee/LWA_2023-Jun-14_AGE.pdf#page=8</a><br><br></li><li>Due Diligence and Process Improvements on Major Projects: <a data-cke-saved-href="http:// metrovancouver.org/boards/CaucusofCommitteeChairs/COF-SP_2023-Jul-25_AGE.pdf#page=66"> </a><a data-cke-saved-href="http://metrovancouver.org/boards/CaucusofCommitteeChairs/COF-SP_2023-Jul-25_AGE.pdf#page=66" href="http://metrovancouver.org/boards/CaucusofCommitteeChairs/COF-SP_2023-Jul-25_AGE.pdf#page=66">metrovancouver.org/boards/CaucusofCommitteeChairs/COF-SP_2023-Jul-25_AGE.pdf#page=66</a><br><br></li><li>Cost Estimating<br>Framework: <a data-cke-saved-href="http://metrovancouver.org/boards/IntergovernmentFinance/FIC_2020-Nov-18_AGE.pdf#page=27" href="http://metrovancouver.org/boards/IntergovernmentFinance/FIC_2020-Nov-18_AGE.pdf#page=27">metrovancouver.org/boards/IntergovernmentFinance/FIC_2020-Nov-18_AGE.pdf#page=27</a><br><br></li></ul></div> | 7/26/2024 7:00:00 AM | | Metro Vancouver Media Relations | media@metrovancouver.org | | |