May 4, 1998
To:Works and Utilities Committee
From:M. G. Thorne
Interim Functional Lead - Water & Wastewater
Subject:Wastewater Treatment Agreement - South Peel
Outstanding Claim
Purpose:
To obtain approval to settle an outstanding claim with the Region of Peel for wastewater treatment services rendered since
January, 1976, but without compensation by the City of Toronto, formerly Metro Toronto.
Funding Sources, Financial Implications and Impact Statement:
A liability was set up in the 1997 Current Operating Budget - Appropriation 210 - Treatment, to provide funding for this
expenditure. There is no material impact on the 1998 Current Operating Budget.
Recommendations:
That we be authorized to process payment to the Region of Peel, in the amount of $689,973.34 for the treatment of
wastewater for the period from January 1, 1976 to December 31, 1997. The calculation is based on the estimated flows and
applicable rates for each year.
Council Reference/Background/History:
On December 10, 1997, Metro Council, by adoption of Clause No. 4 of Report No. 13 of The Environment and Public
Space Committee, granted authorization to commence negotiations for the settlement of treatment costs relating to a draft
agreement prepared in December, 1974.
On May 13, 1969, Metro Council, by adoption of Clause No. 10 of Report No. 6 of The Works Committee, authorized
entering into a reciprocal agreement with the Ontario Water Resources (now Region of Peel) for the treatment of sewage. In
this agreement, flow from a portion of the City of Toronto, is directed to the Lakeview Treatment Plant in Peel Region. The
City of Toronto also accepts flow from portions of the Region of Peel, which is treated at our Humber Treatment Plant.
Both flows are metered, billed and reconciled on a monthly basis. The current rate is 24.40 cents per cubic metre. The same
rate is applied to both streams.
The Region of Peel=s claim relates to an additional connection, servicing a parcel of land in Etobicoke. The connection was
commissioned in 1976, but billing was not instituted as the agreement was never executed. We have reviewed the opinions
from both the City of Toronto=s Legal Department and the Region of Peel=s Legal Counsel. Based on this information, it
was concluded that the City of Toronto was in fact liable for services rendered by the Lakeview Treatment Plant.
Comments and/or Discussion and/or Justification:
Not applicable.
Conclusions:
The aforementioned connection still exists and will continue to operate permanently. The City of Toronto Legal
Department, based on the Metro Council report adopted on December 10, 1997, and the settlement of this claim will
consolidate the existing service agreements. Payment of the claim will release the City of Toronto of all liabilities relating
to this connection.
Contact Name:
Mr. R. M. Pickett
Director
Water Pollution Control Division
Telephone (416) 392-8230
Fax (416) 397-0908
E-Mail bob_pickett@metrodesk.metrotor.on.ca.
M. G. Thorne, P.Eng.
Interim Functional Lead
Water & Wastewater
B.H. Gutteridge
Commissioner of Works and Emergency Services
rmp:mmFile No. 1064.08