REPORT TO CRD BOARD MEETING OF NOVEMBER 9, 2016 - Supplementary Information

REPORT TO CAPITAL REGIONAL DISTRICT BOARD MEETING OF WEDNESDAY, NOVEMBER 9, 2016

SUBJECT

Supplementary Information – Funding for the Completion of the E&N Rail Trail

ISSUE

To consider funding options for the completion of phases 3 and 4 of the E&N Rail Trail.

BACKGROUND

At its meeting of October 19, 2016, the Regional Parks Committee recommended that the Capital Regional District (CRD) Board borrow up to $6.1 million under a new loan authorization bylaw to complete construction of phases 3 and 4 of the E&N Rail Trail – Humpback Connector by 2019 (Attachments 1 and 2).

At that meeting, staff were directed to provide additional information regarding the estimated annual costs per household of borrowing the $6.1 million, and regarding the number of roads in each municipality that the E&N Rail Trail would cross once completed.

ECONOMIC IMPLICATIONS

Completion of phases 3 and 4 of the E&N Rail Trail is estimated to cost $6.1 million. Phase 3 is estimated to cost $3.63 million. Phase 4 is estimated to cost $2.49 million. If $6.1 million were borrowed for this initiative, the total payment over a 15-year period is estimated to be $7,609,742 based on the current Municipal Finance Authority indicative market interest rate of 2.94 per cent. The annual debt servicing cost for such a loan would be approximately $507,316.

The annual cost per average household to repay the loan is estimated to be $2.72, based on the above interest rate and term, and current assessment roll data. Staff would continue to seek grant funding to support the construction of the trail and reduce the need for borrowing.

SOCIAL IMPLICATIONS

The table below and Attachment 3 show the municipal roads crossed by the E&N Rail Trail corridor in each municipality where upgrades to the crossing are required due to the trail project, and the number of upgrades remaining to be constructed. When trail or road improvements are within 30 m of a railway track at a level crossing, Transport Canada’s Canada Wide Grade Crossing regulation requires that certain safety upgrades are made. Typically, warning signs and signal equipment, and in some cases barrier gates, are required to ensure user safety. Phase 3 includes one rail crossing at Atkins Road, for which required improvements are estimated to cost $450,000. Phase 4 includes 5 rail crossings, which are estimated to cost a total of $1 million. The type of safety improvements needed at individual crossings and the associated actual costs of the crossings in Phase 4 will depend on future decisions about the speed at which the train will travel on each portion of the rail line and where the train will stop.

CONCLUSION

Completing phases 3 and 4 of the E&N Rail Trail is estimated to cost approximately $6.1 million. Completing these phases would provide residents and visitors with an active transportation option connecting the rapidly-growing Westshore communities to Victoria and enhance the quality of life of CRD residents.

RECOMMENDATION

That the Capital Regional District Board receive this report for information.

BH:km

Attachments:

• Attachment 1 – October 19 Staff Report on Funding for Completion the E&N Rail Trail
• Attachment 2 – E&N Development Plan Map
• Attachment 3 – Level Grade Crossings