Metro Vancouver approves new wastewater plant cost-sharing plan

Metro Vancouver's board of directors has decided on a plan to share the costs of building a new wastewater plant in North Vancouver across the region — a facility with a budget that has ballooned from an original $700 million to $3.86 billion.

The plan saves households in the North Shore Sewerage Area — one of four areas in Metro Vancouver — from shouldering an extra $725 annual levy to its sewer rates for 30 years, starting in 2025, to build the new treatment plant.

After around half a dozen unsuccessful votes at a special Metro Vancouver meeting Friday, a majority of directors finally agreed to have the North Shore Sewerage Area assume 37 per cent of the extra costs, which works out to $590 per year for 30 years per household.

In order to make up the difference, for 15 years starting next year, the three other sewerage areas in Metro Vancouver will have to pay more, meaning that:

• Households in the Vancouver Sewage Area will pay an extra $150 per year.
• Households in the Fraser Sewerage Area will pay an extra $90 per year.
• Households in the Lulu Island Sewerage Area will pay an extra $80 per year.

Finding common ground on a funding formula proved divisive for directors, who agreed they wanted to help residents on the North Shore, but disagreed over what was a reasonable amount they could ask their own residents to pay.

"We respect all of you immensely and understand you too have your challenges," said District of North Vancouver Coun. Lisa Muri in an appeal for help from the region's municipalities.

"We are respectfully asking that you help us weather this storm fairly, like we will be there when those clouds head your way."

North Shore residents represent seven per cent of the region's population. The new treatment plant will serve more than 300,000 residents and businesses in the area.

Staff had recommended directors approve a funding model that would have had the three other sewerage areas assume 88 per cent of the additional costs, while the North Shore assumed 12 per cent. It was soundly defeated.

Township of Langley Mayor Eric Woodward said the option was "equally inequitable," toward municipalities outside of the North Shore.

Port Coquitlam Mayor Brad West agreed that other Metro Vancouver municipalities needed to be "neighbourly" toward the North Shore, but bearing 88 per cent of the new costs was too much.

Directors also supported a plan to allow the increased sewerage costs North Shore residents will face to be phased in over five years, with a 25 per cent increase in the first year and then smaller increases after that.

The pricey but necessary new wastewater treatment plant for the North Shore is an example of how municipalities are struggling to finance infrastructure projects during a time of high costs and, seemingly, unpredictable obstacles.

The project was supposed to have been operational in late 2020, after construction was started in 2018, but the project hit major roadblocks when Metro Vancouver terminated its contract with the company responsible for designing and building it.

Many directors have expressed frustration over transparency and accountability surrounding the project.

When it was first announced the provincial and federal government provided $405 million in joint funding for it.

In late March, North Vancouver MP Jonathan Wilkinson said no more federal money for the project would be forthcoming.