AMAZING AND APPALLING!  Hundreds of homeless are rotting in their own filth in the Fraser Valley, yet Kinder Morgan offers a classy club-house at the city-owned golf course for the rich to play in, with more style.

STAFF RECOMMENDS THIS SNEAKY BRIBE DESPITE THE SUSTAINED OPPOSITION TO KM’S EXPANSION OF THE EXISTING PIPELINE.

By the way, the Bible tells us that BRIBERY IS EFFECTIVE, though God warns severely against this method of achieving a proponents desired goals.

Of course, the name Abbotsford does not appear in Scripture, and I did not get a divine revelation from the Lord.  Bribery is often spoken of in the word of God, and it is always bad,…..  “You shall take no bribe, for a bribe blinds the officials, and subverts the cause of those who are in the right.”   

But bribes often succeed in accomplishing nefarious goals……“A bribe is like a magic stone in the eyes of him who gives it;  wherever he turns he prospers.”

While the whole question of pipeline expansion is complex, and I don’t have sufficient understanding to be adamantly for, or against,…….bribery is not complicated at all, it is just plain wrong.  – Gerda

Report No. PDS 028-2016

Date: February 11, 2016 File No: 3220-20/14

COUNCIL REPORT EXECUTIVE COMMITTEE

To: Mayor and Council
From: Phil Blaker, Director, Building and Development Engineering Subject: Kinder Morgan Offer of Community Amenity Contribution

RECOMMENDATIONS

  1. THAT Council accept the Kinder Morgan offer of a $1.3 million Community Amenity Contribution towards the construction of a new clubhouse at Ledgeview Golf Course;
  2. THAT should the Community Amenity Contribution offer be accepted, a Memorandum of Understanding be executed between the City of Abbotsford and Kinder Morgan; and
  3. THAT staff be given direction to review options and present a detailed business case to Council that would support a financially sustainable clubhouse operation at Ledgeview Golf Course.

SUMMARY OF ISSUE

Trans Mountain Pipeline implemented a Community Amenity Contribution Program
designed to offset, to some degree, the impact of construction activities within various municipal jurisdictions in Alberta and BC. A number of local governments have now accepted amenity contributions which resulted in the execution of a Memorandums of Understanding with Kinder Morgan.

Kinder Morgan has offered the City of Abbotsford $1.3 million as a Community Amenity Contribution.

BACKGROUND

Kinder Morgan, through its Canadian company, Trans Mountain Pipeline, submitted their December 2013 application to the National Energy Board (NEB) for approval to construct a second pipeline between Edmonton, Alberta and the Westridge Marine Terminal in Burnaby, BC. The scope of this project within the City of Abbotsford includes the construction of approximately thirty (30) kilometers of 914 mm diameter steel pipeline, additional tank terminal storage at their Sumas Mountain tank terminal and upgrading of the existing pumping facility on McDermott Road.

[Report No. PDS 028 -2016 Page 2 of 4]

The NEB hearing for this project recently concluded with the oral hearings in BC and Alberta. Notwithstanding the January 27, 2016 announcement by the Federal Government to extend their decision on the project to December 20, 2016, a recommendation with conditions from the NEB to the Federal Government is still to be submitted no later than May 20, 2016

DISCUSSION

Early on in the discussions with Kinder Morgan regarding the Community Amenity Contribution, the City of Abbotsford identified the construction of a new clubhouse and restaurant facility on city owned lands that are managed by the Ledgeveiw Golf and Country Club Society. A conceptual plan was prepared for a two story building that would take advantage of site topography and the view corridors to the north and north-west of the Fraser Valley. The proposed new facility would be an asset owned by the City of Abbotsford.

The proposed scope of work for the construction of a new clubhouse facility is as noted below:

  • 1st floor features a 200 seat restaurant with adjacent access to exterior deck area
  • Full commercial kitchen facilities
  • Pro shop on first floor
  • Golfers Lounge/Grill/Bar on lower floor
  • Inside storage of proposed electric golf carts
  • Expansion o f parking stalls
  • Removal of the existing building
  • Bath rooms on both floors including players change rooms on the lower floorA new clubhouse facility at Ledgeview would enhance Ledgeview’s ability to attract memberships and also allow for a unique and intimate country setting for special occasions and events. Ledgeview would be able to also attract bookings for business retreats, social gatherings and expand their golf tournament capacities, with updated amenities and multi- function rooms. The facility would accommodate up to 200 on the main floor, supported by a full commercial kitchen, including a walk in freezer and cooler. The initial design includes a generous patio/balcony area for visitors to enjoy an up close view of the natural beauty and view of the valley. The spacious lower floor can accommodate events ranging in size up to 100 guests to provide a more intimate space for smaller parties. This floor also provides for locker rooms and interior golf cart storage.If the funding offer is accepted, a Memorandum of Understanding between Kinder Morgan and the City of Abbotsford would be executed in the form as provided in Attachment “A”.Since 1953, Kinder Morgan has had an eighteen {18) meter) wide Statutory Right of Way (SROW) over the existing pipeline which is installed within the Ledgeview Golf Course. Kinder Morgan is proposing to re-acquire this permanent SROW as well as additional temporary SROW for the construction and restoration phase of the proposed project. Staff and Kinder Morgan have been engaged in the negotiations for compensation for these SROWs that will include business losses and other damages. The compensation that the city receives for these land interests would be directed to the construction of the new clubhouse facility.

[Report No. PDS 026 -2016 Page 3 of 4]

Scheduling

For the purposes of understanding when the Ledgeview Golf Course will be unavailable for play, it is projected that the proposed pipeline construction could take place during the window between December 2017 and March of 2018. This projection is based on a December 20, 2016 date for the Federal Government to make a decision on the Trans Mountain Pipeline Expansion project. The construction window falls in line with previous commitments made by Kinder Morgan to construct during the winter months. It must be noted that at this point in the regulatory and Federal Government decision process that the schedule is subject to change.

FINANCIAL PLAN IMPLICATION

Upon completion of the negotiations with Kinder Morgan, staff will prepare a comprehensive business plan which will be presented to Council outlining not only the framework of the arrangement but also a financial impact assessment. The plan will include an examination of the financial impacts related to Statutory right of Way, loss of revenue allowance caused by the temporary closure and site servicing to name a few.

[signature]

Reviewed and approved by the: Chief Financial Officer

IMPACTS ON COUNCIL POLICIES, STRATEGIC PLAN AND/OR COUNCIL DIRECTION

The four cornerstones of Council’s Strategic Plan and a supporting principle that are considered in this report and recommendations are:

1. Vibrant Economy: We understand the impact we have on others and invest in building relationships that facilitate alignment.

2. Complete Community: We value recreation and support facilities, amenities and activities that connect us.

3. Fiscal Discipline: We make financial decisions by looking not just at the long-term costs but also the value to our community.

4. Organizational Alignment: We make development decisions based on our long-term strategies and are not swayed from our community vision by short-terms goals.

 

[Report No. PDS 026 -2016 Page 4 of 4]

SUBSTANTIATION OF RECOMMENDATION

The Trans Mountain Pipeline Expansion project will have short and long term impacts on the City of Abbotsford. The decision on whether or not this project proceeds as proposed is not within the City of Abbotsford’s hands. Through the past two plus years, the City outlined numerous concerns, and through ongoing discussions, many of these issues have been resolved. Kinder Morgan has agreed to install the proposed pipeline under the Sandy Hill residential area by trenchless means and so there will be no surface disturbance in this area. In addition, Kinder Morgan committed to installing an Oil Spill Containment and Recovery (OSCAR) resource unit in Abbotsford. Staff can report that this unit is now in place at the McDermott Road pump station. At the oral hearings before the National Energy Board on January 29, 2016, the City of Abbotsford forcefully put forward key concerns over emergency planning, training and the need for resources to respond in a timely and effective manner. Other jurisdictions, including the Province, presented the same issues.

The Trans Mountain Expansion Project will, if approved by the Federal Government, have impacts to the City of Abbotsford. Offsetting some of the impacts include consideration of the Kinder Morgan Community Amenity Contribution offer for the construction of a new Ledgeveiw Golf Clubhouse and the realization of significant additional tax revenue derived from the construction of new utility infrastructure within Abbotsford’s jurisdiction.

[signatures]

Phil Blaker P. Eng……./…..Siri Bertelsen
Director, Building and Development   /   General Manager, Planning and Development Engineering Services

ATTACHMENTS

Attachment “A: Community Amenity Contribution Memorandum of Understanding

MEMORANDUM OF UNDERSTANDING

THIS MEMORANDUM OF UNDERSTANDING (“MOU”) is made this _ by and between:

day of _

_ _ , 2015

TRANS MOUNTAIN PIPELINE L.P.,
a partnership organized under the laws of Alberta
and having an office at Calgary, Alberta (“Trans Mountain”) and
the City of Abbotsford,
having an office in Abbotsford, British Columbia (“Community”)

Whereas Trans Mountain operates the Trans Mountain Pipeline m and around Community (the “Pipeline”); and

Whereas Trans Mountain is seeking to expand the Pipeline and in doing so expects to construct the expanded line and to operate the expanded line in and around the Community (the “Expansion Project”); and

Whereas the Community has identified certain projects that Trans Mountain could participate in (where such participation may include funding or partial funding, construction services and/or provisions of labour services) and which projects could provide a legacy for the Community intended to offset impacts the Expansion Project may have on the Community, including community programs/infrastructure improvements, environmental stewardship/ecological offsets and education (the “Project(s)”); and

Whereas Trans Mountain seeks to align the Project(s) with the Expansion Project schedule;

Now therefore this MOU sets forth the mutual understanding and intention of Trans Mountain and the Community (each a “Party” and collectively the “Parties”) with respect to the Project in accordance with the terms hereof and as is more particularly described in Schedule “A” Scope ofProject attached hereto:

A. PROJECT FUNDING

  1. Trans Mountain is responsible for funding of the Project in accordance with Schedule “A” attached hereto.
  2. The City of Abbotsford will be responsible for all aspects of project delivery including timing, public consultation, design, tendering or issuing Request for Proposals, award of contract(s) and construction phases of the project.

B. MISCELLANEOUS

Draft

ATTACHMENT A

I. The laws applicable in the province of British Columbia and ofCanada will be the governing law.

  1. This MOU, when executed and delivered by the Parties, will set forth only the Parties mutual non- binding understanding and intention with respect to the Project.
  2. This execution of the Project is at Trans Mountain’s sole discretion and will not occur before all regulatory, government and corporate approvals are obtained and/or until Trans Mountain has completed all due diligence it deems necessary.
  3. Any formal agreements regarding the completion of the Project will include provisions which provide Trans Mountain with an indemnity for liabilities arising in relation to the Project that can be reasonably determined to have resulted from the actions ofthe Community.
  4. The Community agrees that prior to making any public announcements regarding this MOU, other than a public announcement solely regarding the existence of this MOU, that it will provide a copy of said public announcement to Trans Mountain for approval.IN WITNESS WHEREOF the Parties have executed this MOU as on the day and year ftrst written above.TRANS MOUNTAIN PIPELINE L.P., by its General Partner Trans Mountain Pipeline ULCPer: ————————

Name: Ian Anderson

Title: President

The City of Abbotsford

Per: ———————— Name: Henry Braun

Title: Mayor

Per: ———————— Name: Bill Flitton

Title: City Clerk

Draft

The City of Abbotsford Schedule “A” Scope of Project

Ledgeview Golf Club
Contribution to rebuilding of clubhouse

Value: $1.3 Million

Draft

LYNN PERRIN – email to mayor Henry Braun:

 I think it is not an appropriate time to be debating this offer as the hearing is ongoing and in fact a transition phase has been added by the federal government.
I cannot think of a worse “community benefit”. This goes against what was just argued by legal counsel on behalf of Abbotsford before the NEB on January 29, 2016. https://docs.neb-one.gc.ca/ll-eng/llisapi.dll?func=ll&objId=2922571&objAction=browse&viewType=1
As far as what I have been able to find there was no reference to Ledgeview in the final written argument, the recommended changes to the conditions  or the oral summary argument. https://docs.neb-one.gc.ca/ll-eng/llisapi.dll/2905010/C68-21-3_-_Appendix_B_-_Proposed_Amendments_to_NEB_Draft_Conditions_-_A4X5F6.pdf?func=doc.Fetch&nodeid=2905010
In addition, Ledgeview Golf Course is not mentioned in the list of conditions made by KM  and missing in NEB  documents. https://docs.neb-one.gc.ca/ll-eng/llisapi.dll/2905009/C68-21-2_-_Appendix_A_-_List_of_Commitments_Missing_from_Trans_Mountains_Table_-_A4X5F5.pdf?func=doc.Fetch&nodeid=2905009
Please postpone this agenda item until after Trans Mountain has submitted their response to the Intervenors’  Oral  Summary Arguments and May 20, 2016when the panel is scheduled to give their decision on the application.
Lynn Perrin
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