PROVINCE OF BRITISH COLUMBIA

ORDER OF THE LIEUTENANT GOVERNOR IN COUNCIL

Order in Council No. 1125 , Approved and Ordered JUL. 15.1987

Lieut nt Governor

Executive Council Chambers, Victoria JUL 151987

On the recommendation of the undersigned, the Lieutenant M-vernor, by and with the advice and

consent of the Executive Council, orders that the agreement entered into on May 14, 1987 by the

Minister of Transportation and Highways on behalf of the Province with Her Majesty in right of

Canada, a copy of which is attached to this order, is ratified and confirmed as having been approved

under section 10 of the Ministry of Transportation and Highways Act.

Presid g Mern. r of the Executive Council

(Thie part is for the records of the Office of Legislative Counsel, and is not part oft& Order )

Authority under which Order Is made:

Act and section:- Ministry. ofTransportation and Highways. Act,. section .10

Other i specify):-

Examined by: G.B.Macaulay 14. (At, rney General exa miner)

June 15, 1987 1292/87/jb

CANADA-BRITISH COLUMBIA

YELLOWHEAD HIGHWAY IMPROVEMENT PROGRAM

1987-88 / 1989-90

-2-

CANADA-BRITISH COLUMBIA YELLOWHEAD HIGHWAY IMPROVEMENT PROGRAM

THIS AGREEMENT made this 14th day of May 1987,

BETWEEN HER MAJESTY IN RIGHT OF CANADA (herein referred to as "Canada") represented by the Minister of Transport.

AND HER MAJESTY IN RIGHT OF THE PROVINCE OF BRITISH COLUMBIA (herein referred to as "British Columbia") represented by the Minister of Highways and Transportation.

WHEREAS transportation has been identified by Canada and British Columbia as an essential element in the development of the economy of the Province of British Columbia and it has been agreed that efforts must continue tb be made to ensure the creation of a more efficient and effective transportation system;

AND WHEREAS the improvement of transportation services and infrastructure are consistent with the joint long-term strategic planning relating to social and economic development that is now being undertaken by Canada and British Columbia;

AND WHEREAS the Governor in Council by Order in Council P.C. 1987-801 dated April 24, 1987, has authorized the Minister of Transport to execute this Agreement on behalf of Canada;

NOW THEREFORE THIS AGREEMENT WITNESSES that, in consideration of these premises, the parties covenant and agree as follows:

1. DEFINITIONS

1.1 In this Agreement:

(a) "Ministers" means the Federal Minister and the Provincial Minister;

(b) "Federal Minister" means the Minister of Transport for Canada and includes any person authorized to act on his behalf;

(c) "Provinbial Minister" means the Minister of Highways and Transportation of British Columbia or any person authorized to act on his behalf; and

(d) "Management Committee" means, the committee establislidd pursuant to clause 5.1;

- 3 -

(e) "fiscal year" means the period starting on April 1 of any year and ending on March 31 of the following year;

(f) "eligible costs" means those costs as defined in clause 6.5;

(g) "project" means a project listed in Schedule "B", subject to clause 5.5(c);

(h) "maintenance" means the upkeep of a highway in its entirety including both the travelled and the untravelled portions.

2. PURPOSE AND OBJECTIVES

2.1 The purpose of this Agreement is to enable Canada and British Columbia to jointly finance certain improvements of the Yellowhead Highway System in the Province of British Columbia, in accordance with strategy as outlined in Schedule "A".

3. SUBJECT MATTER

3.1 This Agreement shall apply to the construction and improvement on certain links of the Yellowhead Highway as described in Schedule "B", slY,dect to cl'tuse 5.5(c).

4. UNDERTAKINGS

4.1 Subject to clause 7, British Columbia shall undertake, or shall arrange for others to undertake, all projects approved under this Agreement to the standards agreed to by the Management Committee.

4.2 British Columbia shall arrange for the acquisition of land or such interest therein as may be necessary for the implementation of this Agreement.

4.3 Canada and British Columbia bhall cooperate to ensure that all environmental concerns are addressed early in the planning stages for all capital projects or group of projects jointly funded under this agreement. All projects or groups of projects shall be coordinated through the Provincial Minister for review and approval by appropriate Federal and Provincial agencies. If review indicates possible adverse environmental effects procedures followed through the Provincial referral process shall be followed to ensure all adverse effects are minimized.

5• IMPLEMENTATION

5.1 A Management Committee shall be established as of the date of the execution of this Agreement.

5.2 The Management Committee shall consist of two members as follows:

- 4 -

(a) one member to be appointed by the Federal Minister;

(b) one member to be appointed by the Provincial Minister.

5.3 Each member of the Management Committee may, in writing, authorize a person to attend and to vote at any meeting of that Committee on his behalf.

5.4 The Management Committee shall be responsible for the general administration and management of this Agreement.

5.5 Without limiting the generality of clause 5.4, the Management Committee shall be responsible for the following:

(a) the review and approval of planning activities necessary for the implementation of this Agreement;

(b) the review and approval of all projects necessary for the implementation of this Agreement;

(c) the amendment, the modification and the substitution of projects from among those listed in Schedule "B", when such changes are judged likely to permit more effective achievement of Agreement objectives;

(d) the submission of annual reports to the Ministers on the progress achieved under this Agreement;

(e) determining the extent to which a contract between British Columbia and third parties with respect to any project may be varied without the approval of the Management Committee.

5.6 If at any stage in the implementation of a project approved under this Agreement it appears to British Columbia that the costs thereof wi ll exceed the estimated costs agreed to by the Management Committee, British Columbia shall promptly so infor9 the Management Committee and state the reasons for such increase.

5.7 The quorum for all meetings of the Management Committee shall be two members or their representatives duly authorized pursuant to clause 5.3.

5.8 Decisions of the Management Committee shall be in writing and shall be acted on only if taken unanimously by its members.

5.9 Any matter with respect to which the Management Committee is not unanimous shall be referred to the Ministers who upon resolution shall jointly direct the Management Committee in writing on the appropriate course of action.

5.10 The Management Committee shall continue to exist and to operate for a period of twelve calendar months following the date of termination or expiry of this Agreement.

- 5 -

6. FINANCIAL

6.1 Canada's obligation with respect to the financing of any project approved under this Agreement for the fiscal years 1987-88 to 1989-90 subject to clause 6.4 shall be 50% of the total eligible costs provided for herein and be subject to the provisions in clause 6.2 below. If the Ministers jointly decide to share eligible costs during any of the fiscal years provided herein at a ratio other than that noted above, it is understood that compensating adjustments will be made to ensure that the overall total financial contributions of Canada and British Columbia will be maintained at the 50% Federal/50% Provincial ratio over the term of this Agreement.

6.2 Canada's contribution to this Agreement is conditional on funds being appropriated annually therefor by the Parliament of Canada, it being clearly understood that Canada's obligation to provide financing for the projects approved under this Agreement shall not exceed $18.0 million over the term of the Agreement.

6.3 British Columbia's contribution to this Agreement is conditional on funds being appropriated annually therefor by the Legislature of the Province of British Columbia.

6.4 No new projects can be approved under this Agreement after the date of termination or expiry of this Agreement and no new works will be tendered after that date. No claim may be submitted after twelve months following the date of termination or expiry of this Agreement.

6.5 Subject to clause 6.6, eligible costs to be shared under this Agreement in respect of a project approved under this Agreement shall be

(a) all direct costs incurred in connection herewith after the project has been approved under this Agreement, includ&ng those related to public information, signing, lighting, highway markings, utility adjustments and costs related to crop dar3ge on land either acquired for construction or land adjacent to construction, that in the opinion of the Management Committee, have been reasonably and properly incurred by British Columbia for the implementation of the project, excluding those costs listed in clause 6.6.

(b) ten percent (10%) of the costs determined, pursuant to section (a) above as an allowance towards administrative, survey, engineering, and architectural costs.

6.6 Eligible costs under this Agreement shall exclude:

(a) actual administrative, survey, engineering or architectural costs;

(b) costs which have been shared under other ' federal statutes or programs; and

- 6 -

(c) costs for the acquisition of land or any irttrest therein, which may be required for the implementation of this Agreement.

7. CONTRACT PROCEDURES

7.1 Subject to the applicable laws and regulations, all contracts relevant to this Agreement shall be awarded in accordance with procedures to be approved by the Management Committee, and shall be awarded to the qualified and responsible tenderer submitting the lowest evaluated bid unless the Management Committee is of the opinion that it would be undesirable to do so.

7.2 Opening of all tenders shall be public and the Management Committee shall be supplied with copies of each advertisement for tender, together with notice of the time and place for tender opening, in sufficient time to enable any member of the Management Committee or his representative to be present at all tender openings ana to participate in the evaluation of the tenders.

7.3 For any project approved under this Agreement, Canadian suppliers of labour, goods and services shall be afforded a full and fair opportunity to compete for any contract that is let pursuant to this Agreement.

7.4 With regard to the applicability of labour standards, the parties agree that the laws and regulations of the Province of British Columbia which relate to labour matters and to conditions of work will apply to all construction work.

7.5 In accordance with Human Rights legislation of Canada and British Columbia, there shall be no discrimination by reason of race, sex, age, marital status, national origin, colour, religion, or political affiliation in the employment of persons on a project, except as justified by a lawful affirmative action program.

7.6 Recruitment of labour shall be conducted through Canada Manpower Centres wherever practical with the object of encouraging local employment.

7.7 British Columbia shall indemnify and save harmless Canada, its officers, servants and agents, against all actions, claims and demands of third parties in any way arising out of the implementation of projects approved under this Agreement, hereunder, except to the extent to which such actions, claims or demands relate to the act or negligence of any officer, employee, or agent of Canada in the execution of his functions.

8. PAYMENT PROCEDURES

8.1 Payments by Canada for projects under this Agreement shall be made promptly to British Columbia on the basis of progress claims

- 7

submitted by British Columbia setting out expenditures actually incurred and paid. Claims shall be submitted in a form satisfactory to the Ministers and certified by a senior officer of British Columbia.

8.2 In order to assist with the interim financing of part of the eligible costs of a jointly funded project, the Government of Canada may, if the Government of British Columbia so requests and, notwithstanding the provisions of section 8.1, make an initial quarterly interim payment and thereafter, monthly interim payments based on a forecast of its share of the eligible coats in respect of such project. An accounting for any preceding advance will be required before any further advances can be made.

8.3 British Columbia shall account for each interim payment by submitting to Canada, within 120 days after such payment by Canada, a detailed statement of the actual eligible costs incurred and paid, verified in a manner satisfactory to the Federal Minister. Any discrepancy between the amounts paid by Canada by way of interim payments and the amounts actually incurred and paid by British Columbia shall be promptly adjusted between Canada and British Columbia.

8.4 No interim payment shall be made in a subsequent fiscal year until the interim payments made in the previous fiscal year have been liquidated by claims for expenditures actually incurred and paid, verified in a manner satisfactory to the Federal Minister.

9. RECORDS AND AUDIT

9.1 British Columbia shall conduct an annual audit of claims submitted and for three years following the date of termination or expiry of this Agreement, adequate records of all transactions made pursuant to this Agreement, supported by the proper documents and vouchers, and these records shall upon reasonable notice be made available to the Federal Minister upon request for audit.

9.2 Any discrepancy between amounts paid by either party, and the amounts payable by either party as disclosed by audit, shall be promptly adjusted between the parties.

10. EVALUATION

10.1 As soon as possible after the end of each fiscal year, the Management Committee shall submit to the Ministers a progress report on the implementation of the projects approved under this Agreement.

10.2 During the term of this Agreement, Canada and British Columbia shall effect a summary assessment of the projects approved under this Agreement to measure the cost-effectiveness and

-8-

the social and economic benefits. Each party shall provide the other with such information as may reasonably be required in order to undertake such assessment.

11. COMMUNICATIONS

11.1 Canada and British Columbia agree that information regarding past performance, the purpose and objectives, progress and future directions, of all initiatives under this Agreement, may be made available publicly through the term of this Agreement, on a regular basis.

11.2 Canada and British Columbia agree that all arrangements covering public information in this Agreement, shall be consistent with any federal and provincial objectives and policy guidelines in respect of shared-cost programming between the parties.

11.3 British Columbia further agrees to supply, erect and maintain, on the direction of the Management Committees

(a) during the course of construction of any project approved under this Agreement, a project sign or signs consistent with Federal-Provincial identity graphics guidelines, and in both official languages, specifying that the relevant project is financed by contributions from the Government of Canada and the Government of British Columbia or such other wording as may have been or may be agreed upon by the Ministers; and

(b) where relevant, a permanent sign or plaque to the effect set forth in (a).

11.4 The Provincial department or agency implementing the projects approved under this Agreement, shall be responsible for erecting and maintaining the sign or signs to the effect set forth in clause 11.3. The cost of erecting said sign or signs shall be an eligible cost.

lt.5 Any public announcement of the measures covered, and of the products generated by the program and the projects approved under this Agreement, and any officiatl opening ceremony for any project approved under this Agreement where such ceremony is indicated and appropriate, shall be arranged jointly by the Ministers.

12. GENERAL

12.1 This Agtaement shall take effect on the date of execution of this Agreement and, subject to clause 12.2, shall expire on March 31, 1990, subject to clause 6.4.

12.2 This Agreement and attached Schedule "B" may be amended from time to time as mutually agreed in

- 9 -

writing by the Ministers. Any amendment to Section 3.1 which would involve projects other than on the Yellowhead Highway as well as to 6.1 and 6.2 shall require prior approval of the Governor in Council.

12.3 The laws in effect in British Columbia shall apply to this Agreement.

12.4 Any contribution paid by Canada shall be exempt from the application of section 5 of the Fair Wages and Hours of Labour Act, R.S.C. 1970,

12.5 Nothing in this Agreement is to be construed as authorizing British Columbia to contract for or to incur any obligation on behalf of Canada or to act as agent for Canada.

12.6 Nothing in this Agreement is intended to alter the respective jurisdiction over highways, over transportation facilities, or over regulatory or other matters related thereto, or to be construed so as to vest in Canada any proprietary interest in highways, identified in Schedule "B", and amendments thereto the maintenance of which shall remain a responsibility of British Columbia.

12.7 Unless otherwise provided by law, British Columbia shall maintain the designated highways described in Schedule "B" hereto to an acceptable highway system standard following completion of the construction and strengthening provided for by this Agreement.

12.8 British Columbia shal. be responsible for such arrangements as are necessary where a project approved under this Agreement affects a municipality or other institution or agency under provincial jurisdiction.

12.9 Notwithstanding any other provision in this Agreement, all obligations of Canada incurred by virtue of this Agreement shall he subject to the Financial Administration Act.

12.10 Any dispute between the parties hereto on any question of law or fact arising out of this Agreement, shall be submitted to and determined by the Federal Court of Canada pursuant to the Federal Court Act of Canada.

12.11 No member of the Senate, the House of Commons of Canada, or of the Legislative Assembly of British Columbia, shall be admitted to any share or part of any contract, agreement or commission, made pursuant to this Agreement or to any benefit to arise therefrom.

12.12 This document and Schedules "A" and "B" form the entire Agreement.

• 4,-

Witness Date Minister of Highways and Transportation

May 14/87

- 10 -

IN WITNESS THEREOF this Agreement has been executed on behalf of Canada by the Minister of Transport and on behalf of British Columbia by the Minister of Highways andTransportation.

In the Presence of HER MAJESTY IN RIGHT OF CANADA

May 14/87

itness Date Mini ter of Transport

HER MAJESTY IN RIGHT OF BRITISH COLUMBIA

CANADA-BRITISH COLUMBIA YELLOWHEAD HIGHWAY IMPROVEMENT PROGRAM

1987/88 - 1989/90

SCHEDULE "A"

STRATEGIC IMPORTANCE OF THE YELLOWHEAD HIGHWAY

1.0 Description and Role

1.1 The Yellowhead Highway is an important arterial route with a total length of 1,529 km in British Columbia. It has two separate branches. One of these, Hwy. 16, 1,189 km long, traverses the Province from east to west from Tate Jaune Cache near the Alberta border to the Port of Prince Rupert on the Pacific Ocean, and this branch continues on the Queen Charlotte Islands from Skidegate to Masset. A second branch (Hwy. 5) runs for 340 km in a north-south direction from Tate Jaune Cache to Kamloops on the Trans-Canada Highway.

1.2 The Highway has three main functions: 1) Hwy. 16 carries the interprovincial truck and passenger traffic from the rest of Canada to Tidewater at Prince Rupert, while Hwy. 5 forms the approach route to the part of the Trans-Canada Highway which leads to the City and Port of Vancouver; 2) it acts as a transportation corridor for cities and numerous minor communities which iticonnects, and carries local traffic within and near the built-up areas which it traverses; and 3) both branches constitute a transportation spine from which secondary roads lead to small communities and to forestry and mining resource areas.

2.0 Traffic

2.1 Average Summer Daily Traffic on the Hwy. 16 link varies from 1,000 vehicles on the open road west of McBride to 15,700 within the City of Prince George. Terrace shows 14,000, Smithers 8,200 and Vanderhoof 5,800 vehicles per day, to site a few examples of urban Yellowhead traffic. On the Hwy. 5 link traffic varies from 2,400 a day on the open road south of Tate Jaune Cache to 4,200 on the road north of Kamloops, and within Kamloops itself, this branch of the Yellowhead Highway carries an average of 11,000 vehicles per day during the summer months.

2.2 Because gradients on the Yellowhead Highway are gentler than on sections of the Trans-Canada Highway in British Columbia, many truckers choose to use the former route on trips to and from the west coast even though the Trans-Canada Highway route is shorter'. The highest point of the Yellowhead Highway is 478 m lower than the highest point of the Trans-Canada Highway.

3.0 Improvement Strategy

3.1 All the prbjects to be undertaken under this Agreement Meet one or more of the stipulated program objectives: to enhance overall efficiency; to promote safety; to support industrial development and enhance producer access to international and regional markets; and to encourage tourism.

3.2 The Ridley Island terminal and port facility near Prince Rupert, constructed in recent years by the federal government, is the most important industrial installation along the Yellowhead Highway and is the destination for a considerable amount of provincial and interprovincial vehicle traffic.

COLOME.iIE-BRITANNIQUE

0 25 50 75 100 km

U.S.A. E.U.

A

Prince George

BRITISH COLUMBIA

I E

I

L A

Schedule "A", Exhibit 1 British Columbia Yellowhead Highway (Hwy. 16, Hwy. 5)

Annexe "A", Planche 1 Colombie-Britannique Route Yellowhead (Route N° 16, Route N°5)

CANADA - BRITISH COLUMBIA YELLOWHEAD HIGHWAY IMPROVEMENT PROGRAM

1987/88 - 1989/90

SCHEDULE '8"

PROJECTS TO BE UNDERTAKEN DURING THIS AGREEMENT

PROJECT f DESCRIPTION OF SECTION PROGRAM

ESTIMATED EXPENDITURES CASH FLOW

1987/88 1988/89 1989/90

1.0 Safety related projects: realignment & Overpass

1.1 Highway 16: From Khyex to Tye* - realignment of 10 km $17,000,000 6,000,000 $8,000,000 13,000,000

1.2 Highway 16: Carnaby to Kiteequecla - realignment of 10 km 5,000,000 5,000,000

1.3 Highway 16: Pleasant Valley overhead - 2 Mm 3,800,000 1,000,000 2,800,000 Sub-Total S25,900,000 $7,000,000 $10.800,000 18,000,000

2.0 Capacity Related Prop.ct:

2.1 Highway 5: From Paul Lake to Heffley Creek Partial - 16 km $10 200 000 S 3,000,000 $ 4,400,000, S 2,800,000

Program Total: $36,000,000 $10,000,000 515,200,000 110,800,000 21 .===22=21r.= r=2323222=..