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2025.05.23 9996 [MV] Governance_Review_Deloitte ⋆ selfology.co

A System Outgrown: The Urgent Need for Governance Reform

The May 20, 2025, "Board Governance Review" by Deloitte for Metro Vancouver delivers a stark assessment: the regional district has "outgrown its Board governance structure." This finding underscores systemic deficiencies impacting effectiveness, accountability, and public trust. This infographic explores the core challenges and Deloitte's proposed pathways to a more robust governance framework for our region.

MVRD BOARD

Directors

GVWD BOARD

Directors

GVS&DD BOARD

Directors

LEGAL ENTITIES

Corporations

These large board sizes contribute to an unwieldy structure, with Deloitte noting projections for the MVRD Board to exceed 50 directors within a decade if unaddressed.

The Greater Vancouver Water District (GVWD) and Greater Vancouver Sewerage and Drainage District (GVS&DD) account for the vast majority of financial expenditure and associated risk, yet board attention is often disproportionately focused elsewhere.

Critical Governance Deficiencies Uncovered

Deloitte's review identified multifaceted challenges across Metro Vancouver's governance pillars, hindering its ability to effectively serve the region.

1. Structural Fault Lines

Boards are "too large and unwieldy," with 13 Standing Committees and a notable absence of a dedicated Governance Committee.

Current MVRD board size is a key concern, with projections showing further unsustainable growth.

2. Roles, Competencies & Conflicts

Directors face a "nearly impossible" fiduciary conflict between local and regional duties. High turnover (29 of 41 MVRD directors new post-last election) leads to significant loss of institutional knowledge.

Director Turnover (MVRD):

●●●●●●● ●●●

(Illustrative: approx. 29 out of 41 new directors shown as yellow)

3. Strategic & Risk Oversight Failures

Lack of strategic alignment, no overarching Enterprise Risk Management (ERM), and an inadequate, non-independent internal audit function. Failures in capital project oversight are stark.

North Shore Wastewater Treatment Plant (NSWWTP)

A critical example: $2.8 BILLION cost overrun, severely eroding trust.

4. Policy, Process & Information Gaps

Directors struggle with understanding complex policies and are often overwhelmed by information volume. Confidentiality rules can hinder necessary consultation.

Board materials averaging 800-1400 pages per cycle contribute to "information overload."

5. Cultural Erosion: A Strained Environment

The internal culture is marked by strained Board-staff relations, a divisive and sometimes hostile Board atmosphere, and significantly eroded trust.

Contributing Factors:

NSWWTP project issues
Perceptions of staff "controlling" or filtering information
High information volume
Political divisiveness & local vs. regional advocacy
Lack of informal peer connection

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Key Outcomes:

Eroded Trust

Strained Board-Staff Relations

Ineffective Collaboration

This cultural dynamic impedes open dialogue and effective decision-making.

Deloitte's Blueprint for Reform: Key Recommendations

Deloitte proposes a comprehensive suite of recommendations to rebuild Metro Vancouver's governance framework, focusing on structure, roles, strategy, processes, information, and culture.

Current Board Structure (Simplified)

MVRD: 41 Directors
13 Standing Committees
No dedicated Governance Committee
Complex, unwieldy

Proposed Structural Changes (Key Ideas)

Consider Hybrid Board for Utilities (10-14 members, incl. independents)
Overall Board size reduction
Optimize/reduce Standing Committees
Establish a Governance Committee

Enhancing Roles & Strategic Oversight

Consider independent/longer-term Chair.
Robust director education & skills matrix.
Implement Enterprise Risk Management (ERM).
Strengthen Internal Audit (independent, reports to Board).
Ensure multiple options presented for major projects.

Improving Processes & Transparency

Simplify policies & bylaws, enhance training.
Investigate electronic voting.
Develop formal dispute resolution mechanism.
Streamline Board materials, reintroduce staff presentations for complex issues.
Transparent capital project financial reporting.

Rebuilding Culture & Trust

Revisit Code of Conduct (respectful behaviours).
Foster Board-staff dialogue (formal & informal).
Chair to reinforce regional perspective.
Implement Board performance assessments.
Invest in Board management training for Chairs.

Recommendations span across all critical areas of governance, aiming for holistic improvement.

Reforming Remuneration: Towards Fairness & Value

Board remuneration, approximately \$1.5 million annually (0.1% of operating budget), has become a "lightning rod for public dissatisfaction" amidst governance concerns. Deloitte recommends changes to enhance transparency, fairness, and efficiency.

Remuneration Aspect	Current Practice (Concerns)	Deloitte's Key Recommendation
Meeting Stipend (>4hrs)	Double stipend (\$1,094)	Eliminate double stipend
Travel/Conference Days	Double stipend	Eliminate double stipend
Committee Chair Retainer	Monthly retainer (\$547)	Replace with double meeting fee for meetings held
Annual Stipend Cap (Directors)	No overall cap (except Chair/Vice-Chair for meeting fees)	Introduce maximums (e.g., 50 stipends/yr ~\$27,000)
Remuneration Disclosure	Consolidated SOFI reports; perceived opacity	Proactively publish simple, transparent disclosure

The Chair (\$109,337) and Vice-Chair (\$54,668) retainer levels were deemed reasonable, with no change recommended unless a new Board structure is adopted.

The Path Forward: Accountability and Sustained Action

The Deloitte report is a blueprint for transformative change. Success hinges on sustained political will, management commitment, transparent action, and ongoing public scrutiny. Metro Vancouver faces a critical juncture to rebuild trust and enhance its governance effectiveness for the future of the region.

Current State:
Governance Deficiencies, Eroded Trust

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Deloitte Review:
Findings & Recommendations

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Key Actions Required:
Structural, Policy, Cultural & Process Reforms

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Legislative Changes, Policy Revisions, Cultural Initiatives

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Desired Future State:
Effective, Transparent, Accountable & Trusted Regional Governance

Implementing these reforms is essential for Metro Vancouver to effectively meet the complex challenges of a growing region and restore public confidence.