C1-8 Re: Sustainable Services Ltd. Geothermal Energy System Status as a Public Utility under the Utilities Commission Act ~ Project No. 3698884 RESPONSE TO THE BRITISH COLUMBIA UTILITIES COMMISSION S REQUEST FOR RESPONSE DATED MAY 11, 2017 From: The City of Langford May 30, 2017 Submitted by: Jim Bowden, Administrator City of Langford c/o Cox Taylor 26 Bastion Square 3 rd Floor Burnes House Victoria, British Columbia V8W 1H9 Phone: 250-388-4457 Fax: 250-382-4236 Reply: L. John Alexander alexander@coxtaylor.ca
2 1.0 Reference: Please describe the nature of the equipment and facilities owned by the City of Langford and the significance of the equipment and facilities in relation to the total infrastructure used to provide the Energy Service. Response: The City of Langford (the City ) in its earlier submissions, indicated ownership of some of the equipment and facilities. To provide more particulars we refer to three specific legal interests in land. The following points demonstrate that major portions of the utility company s overall infrastructure exist on and in City property. The lack of specific plans, locations, and inventory of the infrastructure arises precisely because to a large degree, both the City and SSL operate on the basis that the energy systems are part of a municipal service. For the Commission s reference we have attached title searches to Lot 2 (as described below) and Lot D (as described below) as well as Plan VIP87398 and Plan VIP78546. Lot 2 The City is the registered owner of the property legally described as Lot 2, Section 87, Esquimalt District, Plan VIP87398 ( Lot 2 ). Lot 2 contains the facilities of a geoexchange borefield and appurtenant works (collectively, the Facilities ). The Facilities are a major part of the total infrastructure of the district energy system. Registered against Lot 2 in favour of SSL-Sustainable Services Ltd. ( SSL ) is Statutory Right of Way FB29836 (the Right of Way ) and Undersurface Rights FB344657. Without attempting to dissect the various legal interests that arise out of SSL s ownership interest in the Right of Way and some undersurface rights, should SSL cease to provide the energy services the City will continue to own or have some interest in the Facilities. They are under City land. Lot D The property legally described as Lot D, Sections 80, 86 and 87 Esquimalt District Plan VIP78546 ( Lot D ) comprises 3.34 hectares and functions as a major trunk road of the Westhills development. Lot D is owned in fee simple by the City. SSL has no registered charges against Lot D. As the fee simple owner of Lot D, any and all components of the district energy system on or in Lot D are owned by the City. Dedicated Roads The unregistered title to all the roads in the Westhills Energy Service Area are owned by the City (Land Title Act, Sec. 107, Community Charter, s. 35). Any equipment or works contained on or in dedicated roads within the City s municipal boundaries is owned by the City. No charges of any kind can be registered against dedicated roads.
3 On the basis of the above information, the City considers that it has an ownership interest in parts of the equipment and facilities, consisting of the geo-exchange borefield that is part of the equipment central to the system, and it owns parts of the distribution infrastructure, and provides the City s titled and untitled roads to facilitate the distribution of the district energy for the citizens of Langford within the Westhills Energy Service Area. The April 14, 2010 Services Agreement between the City and SSL (the Services Agreement ), s. 8 indicates that SSL shall construct, own, operate and maintain AS A MUNICIPAL SERVICE an energy distribution system. Section 35 of the Services Agreement grants a licence to use the highways. It should be noted that the Services Agreement does not attempt to define ownership of the infrastructure in any specific fashion. The Services Agreement does however contemplate that on termination of the agreement, with respect to the works comprising the Energy Service, SSL retains what it owns and has a right to operate as a City service ONLY UNTIL SSL obtains authorization (CPCN) for operation as a utility (s. 37).
TITLE SEARCH PRINT 2017-05-30, 16:25:55 Declared Value $ 540000 **CURRENT INFORMATION ONLY - NO CANCELLED INFORMATION SHOWN** Land Title District Land Title Office VICTORIA VICTORIA Title Number From Title Number EX30520 EX30515 Application Received 2005-03-22 Application Entered 2005-04-01 Registered Owner in Fee Simple Registered Owner/Mailing Address: CITY OF LANGFORD 877 GOLDSTREAM AVENUE VICTORIA, BC V9B 2X8 Taxation Authority Langford, City of Description of Land Parcel Identifier: 026-234-947 Legal Description: LOT D SECTIONS 80, 86 AND 87 ESQUIMALT DISTRICT PLAN VIP78546 Legal Notations THIS TITLE MAY BE AFFECTED BY A PERMIT UNDER PART 29 OF THE MUNICIPAL ACT SEE DF ED25428 GOVERNMENT ACT, SEE ET96228 NOTICE OF INTEREST, BUILDERS LIEN ACT (S.3(2)), SEE EV58939 FILED 2003-06-05 Charges, Liens and Interests RIGHT OF WAY C75691 Registration Date and Time: 1974-06-20 BRITISH COLUMBIA HYDRO AND POWER AUTHORITY THAT PART OF SECTION 80 SHOWN OUTLINED IN RED ON PLAN 2022 RW Title Number: EX30520 TITLE SEARCH PRINT Page 1 of 3
TITLE SEARCH PRINT 2017-05-30, 16:25:55 Declared Value $ 540000 EE124857 Registration Date and Time: 1991-11-06 13:34 TERASEN GAS (VANCOUVER ISLAND) INC. Transfer Number: EV93868 PART IN PLAN VIP53260 EE139417 Registration Date and Time: 1991-12-12 11:44 TERASEN GAS (VANCOUVER ISLAND) INC. Transfer Number: EV72560 PART IN PLAN VIP53489 COVENANT EW155725 Registration Date and Time: 2004-11-22 10:09 CITY OF LANGFORD EX13156 Registration Date and Time: 2005-02-04 13:28 BRITISH COLUMBIA HYDRO AND POWER AUTHORITY EX13157 Registration Date and Time: 2005-02-04 13:28 TELUS COMMUNICATIONS INC. EX17766 Registration Date and Time: 2005-02-18 09:46 SHAW CABLESYSTEMS LIMITED INCORPORATION NO. A-60221 EX23584 Registration Date and Time: 2005-03-04 14:51 TERASEN GAS (VANCOUVER ISLAND) INC. Title Number: EX30520 TITLE SEARCH PRINT Page 2 of 3
TITLE SEARCH PRINT 2017-05-30, 16:25:55 Declared Value $ 540000 EASEMENT EX30534 Registration Date and Time: 2005-03-22 14:24 APPURTENANT TO LOTS A, B, F AND G, PLAN VIP78546 FB68317 Registration Date and Time: 2007-07-04 14:22 CAPITAL REGIONAL DISTRICT EASEMENT FB109144 Registration Date and Time: 2007-10-15 14:02 APPURTENANT TO LOT A, PLAN VIP83893 FB472326 Registration Date and Time: 2013-08-29 11:39 FORTISBC ENERGY (VANCOUVER ISLAND) INC. INCORPORATION NO. BC0236352 CANCELLED AS TO ALL EXCEPT PART IN PLAN EPP45250, BY CA4145287 Duplicate Indefeasible Title NONE OUTSTANDING Transfers NONE Pending Applications NONE Title Number: EX30520 TITLE SEARCH PRINT Page 3 of 3
Status: Filed Plan #: VIP78546 App #: N/A Ctrl #: RCVD: 2005-03-22 RQST: 2017-05-12 15.36.43 Page 1 of 1
TITLE SEARCH PRINT 2017-05-30, 16:25:56 Declared Value $ 1300000 **CURRENT INFORMATION ONLY - NO CANCELLED INFORMATION SHOWN** Land Title District Land Title Office VICTORIA VICTORIA Title Number From Title Number FB364903 FB312824 Application Received 2010-08-05 Application Entered 2010-08-16 Registered Owner in Fee Simple Registered Owner/Mailing Address: CITY OF LANGFORD 2ND FLOOR, 877 GOLDSTREAM AVENUE VICTORIA, BC V9B 2X8 Taxation Authority Langford, City of Description of Land Parcel Identifier: 028-087-879 Legal Description: LOT 2 SECTION 87 ESQUIMALT DISTRICT PLAN VIP87398 Legal Notations THIS TITLE MAY BE AFFECTED BY A PERMIT UNDER PART 26 OF THE MUNICIPAL ACT, SEE EP59190 GOVERNMENT ACT, SEE ET44678 GOVERNMENT ACT, SEE FA125541 GOVERNMENT ACT, SEE FB154429 GOVERNMENT ACT, SEE FB154433 Title Number: FB364903 TITLE SEARCH PRINT Page 1 of 3
TITLE SEARCH PRINT 2017-05-30, 16:25:56 Declared Value $ 1300000 GOVERNMENT ACT, SEE FB179837 GOVERNMENT ACT, SEE FB179838 GOVERNMENT ACT, SEE FB210431 NOTICE OF INTEREST, BUILDERS LIEN ACT (S.3(2)), SEE FB298327 FILED 2009-09-14 GOVERNMENT ACT, SEE FB309688 GOVERNMENT ACT, SEE FB309689 GOVERNMENT ACT, SEE FB369151 GOVERNMENT ACT, SEE FB63090 Charges, Liens and Interests RIGHT OF WAY 305909G Registration Date and Time: 1965-03-18 10:00 CAPITAL REGIONAL DISTRICT Transfer Number: EL107650 PART ASSIGNMENT OF 29555G REC'D 15.06.1914 @ 10:40 MODIFIED BY CA2549014 RIGHT OF WAY B52210 Registration Date and Time: 1973-05-23 BRITISH COLUMBIA HYDRO AND POWER AUTHORITY PART SHOWN OUTLINED IN RED ON PLAN 2022 RW Title Number: FB364903 TITLE SEARCH PRINT Page 2 of 3
TITLE SEARCH PRINT 2017-05-30, 16:25:56 Declared Value $ 1300000 COVENANT FB94474 Registration Date and Time: 2007-09-05 10:04 CITY OF LANGFORD FB298326 Registration Date and Time: 2009-09-14 13:35 SSL-SUSTAINABLE SERVICES LTD. INCORPORATION NO. 0822775 FB324182 Registration Date and Time: 2010-01-14 10:37 BRITISH COLUMBIA HYDRO AND POWER AUTHORITY FB324183 Registration Date and Time: 2010-01-14 10:37 TELUS COMMUNICATIONS INC. INCORPORATION NO. A55547 UNDERSURFACE RIGHTS FB344657 Registration Date and Time: 2010-04-30 12:12 SSL - SUSTAINABLE SERVICES LTD. INCORPORATION NO. 0822775 Transfer Number: FB344658 EXCEPT GOLD AND SILVER Duplicate Indefeasible Title NONE OUTSTANDING Transfers NONE Pending Applications NONE Title Number: FB364903 TITLE SEARCH PRINT Page 3 of 3
Status: Filed Plan #: VIP87398 App #: N/A Ctrl #: RCVD: 2009-11-13 RQST: 2017-05-12 15.36.43 Page 1 of 1