DateJune 3, 1998

 To:Works and Utilities Committee

 From:Michael G. Thorne

Interim Functional Lead, Water & Wastewater Operations

 Subject:Region of York Long-Term Water Supply Strategy

 Purpose:

 To provide information with regards to the Region of York=s long-term water supply strategy and further opportunities for partnership with the City of Toronto.

 Recommendation:

 That this report be received for information.

 Funding Sources, Financial Implications and Impact Statement

 There are no funding implications resulting from this report.

 Council Reference/Background/History:

At the meeting of March 25, 1998, the Works and Utilities Committee had before it a memo (deputation Item 22) dated March 2, 1998, from Councillor Jack Layton with respect to the Region of York=s Long-Term Water Supply Project, Lake Ontario Water Supply via Durham West. The memo referred to an attached package from Consumers Utilities containing information in regards to the Environmental Assessment (EA) process for the aforementioned project, advising that an opportunity for partnership between the Region of York and City of Toronto could be missed and that York=s need for water could be met through water efficiency projects in the City of Toronto and suggesting the Committee may wish to address conservation issues in regards to the drafting of the terms of reference for York Region=s EA before the next round of public information centres planned for September of this year.

 The Committee also had before it a communication (deputation Item 22a dated March 25, 1998) from Ms. Karey Shinn, Chair, Public Committee for Safe Sewage Treatment in Toronto, requesting that this matter be a deputation item at the next Works and Utilities Committee meeting.

In summary, the following issues were raised in the aforementioned communications:

 (1)The opportunities for partnership between Toronto and Region of York regarding water supply are not addressed in an EA that the Region is currently undertaking.

 (2)York Region=s need for water could be met through water efficiency projects in Toronto.

 (3)Works & Utility Committee may wish to address conservation issues in regards to the EA.

 (4)A request that the Commissioner present the water supply request from York Region and any new terms of reference.

 (5)Concerns that additional water supply to York Region will threaten the integrity of the Toronto tax base.

 The Committee referred these communications to the Commissioner of Works and Emergency Services for a report thereon to the Committee.

 Comments and/or Discussion and/or Justification:

 The City of Toronto has been providing water to the Region of York since 1975. The provision of water to the Region of York has mutual benefits. This partnership has enabled the development of an integrated system with multiple production and distribution facilities providing enhanced security of supply to over 2.8 million residents. With the principle of cost-share based on proportional use, this is achieved fairly and in the most cost effective way possible.

 The former Council of Metropolitan Toronto at its meeting of July 2 and 3, 1997, adopted Clause No. 3 of Report No. 9 of the Environment and Public Space Committee headed AAgreement for Additional Water Supply to the Region of York@. The report dealt with the process for developing a new water supply agreement with the Region of York, given that the limit of 30 Million Imperial Gallons per day (MIGD) average day supply under the previous agreement has been exceeded since 1988. Council was advised that staff had reached an agreement on a supply limit of 57 MIGD with additional infrastructure requirements as identified in a joint water supply study undertaken by the consulting engineering firm of Fenco-MacLaren Inc. These infrastructure requirements were based on meeting City of Toronto projected water demands to the year 2011, less a 13 per cent. reduction as a result of water efficiency, and providing 57 MIGD average day demand to the Region of York. The cost of additional infrastructure will be shared between Toronto and the Region of York, based on proportional use. A report requesting authorization to execute a new agreement is included in the agenda of this Works and Utilities Committee meeting.

 At its meeting of September 24 and 25, 1997, the former Metropolitan Council received for information Clause No. 28 (l) of Report No. 12 from the Environment and Public Space Committee regarding the York Region Long-Term Water Project Master Plan. This report provided information on the Region=s Master Plan process. The plan identified water demands incorporating water efficiency within the Region of York for the years of 2001, 2011, 2021 and 2031. Alternative water supply sources to meet these demands were assessed, including use of ground water and supply from Lake Simcoe, Georgian Bay and Lake Ontario. The preferred solution involved four components: expansion of supply from Toronto to 57 MIGD, implementation of a regional water efficiency program, additional supply from Lake Simcoe and additional supply from Lake Ontario via a Durham west route.

 Staff from the former Metro Works, Planning, Legal and Finance Departments reviewed the Master Plan document and provided comments to the Region of York in a letter dated September 23, 1997. Key issues identified include:

 (a)Toronto=s ability to provide water beyond the planned 57 MIGD which appears to be the most effective and low cost option should be evaluated in detail;

 (b)The estimated demand reduction resulting from water efficiency measures appears to be modest; and

 (c)An integrated Greater Toronto Area (GTA) wide service coordination strategy should be considered in more detail.

 The Region of York responded in a letter dated December 18, 1997, providing the following information:

 (i)The Region is eager to explore the viability and effectiveness of additional supply fromToronto.

 (ii)The demand reductions due to water efficiency are considered reasonable, based on their analysis.

 (iii)The Region has fully supported the principle of optimization of water infrastructure on a GTA-wide basis.

 The Region of York has recently initiated an environmental assessment (EA) for their Long-Term Water Supply Project - Lake Ontario Water Supply via Durham West. This represents the preferred long-term alternative for supply of additional water to the Region. Toronto staff are monitoring this EA and will provide comments with regards to the draft terms of reference prior to the September public information session. These comments will address source of supply, water efficiency, and any other appropriate issues. Further, the EA process allows for agency input following public input. This agency input will take place after September and would allow Toronto to provide additional input into the Terms of Reference for the EA if required.

   Both the City of Toronto and Region of York have incorporated water efficiency programs into their respective water supply strategies. At its meeting of August 14, 1996, the former Council of Metropolitan Toronto approved Clause No. 14 of Report No. 13 of the Environment and Public Space Committee. This report headed, AEngineering Studies - Water Efficiency Plan@, authorized the expenditure of funds to engage a consultant to develop a water efficiency plan. REIC Consultants has since been engaged to complete this plan. The goal of this plan is to develop a City of Toronto wide water efficiency plan containing a set of acceptable water efficiency measures and an implementation plan that will enable reduction in water use in the most cost efficient way. The target is to reduce Toronto=s overall projected average day water demand by a least 15 per cent. by the year 2011. Work on the study is ongoing and has included input from each of the former cities within the new City of Toronto and members of the public through a Public Advisory Committee. Results to date indicate a 15 per cent. reduction is achievable, subject to completion of the cost benefit analysis. The study is expected to be complete by October, 1998.

 On May 7, 1998, the Region of York Council approved a report recommending that staff proceed with implementation of a Water Efficiency Program. The report indicates an anticipated reduction in water demand of about 4 MIGD, representing eight per cent. of the 1995 average day demand.

 With regards to assessing the ability for Toronto to meet the Region of York=s requirements through the use of water efficiency projects within the City of Toronto, it should be noted that demand reductions due to water efficiency have been considered in all recent infrastructure planning. In the 1995 Water Supply Joint Study, the supply to Toronto was based on projected population and employment growth and allowed for a reduction of 13 per cent. in demand due to water efficiency. Recent census information indicates population growth is on target but employment population is below target. A preliminary assessment of 2011 demands considering reduced employment growth and 15 per cent. demand reduction due to water efficiency indicates that expansion of the water supply system will still be required to meet 2011 demands within Toronto and 57 MIGD to York. The analysis also suggests that additional supply could be provided to York, however, the exact volumes and costs would need to be determined.

 Given the reductions in Toronto=s employment projections and York=s reduction in long-term (2031) demand projections, staff from the Region and City of Toronto are developing the terms of reference for a Joint Optimization Study that would identify infrastructure requirements to meet long-term needs for the City of Toronto and York. This study continues the ongoing partnership between Toronto and York with respect to water supply.

 The main objectives of the study include:

 (1)A high level assessment of GTA wide services and identification of opportunities to meet growth and security needs.

 (2)Determination of projected water demands within City of Toronto for the year 2011 and 2031 and incorporating existing water demand projections for York Region to the same planning horizons.

 (3)To identify and incorporate the effects of ongoing water efficiency programs in Toronto and York Region.

 (4)Determination of optimal infrastructure required to meet the above demands. This includes assessment of options for additional supply to York including the Durham west route and additional supply from Toronto.

 Following completion of the Terms of Reference, an engineering consultant will be selected and engaged to carry out the work. The cost of this comprehensive study will be equally shared between Toronto and York Region. At its meeting of February 4, 5 and 6, 1998, City of Toronto Council adopted Clause No. 12 of Report No. 2 of the Strategic Policies and Priorities Committee authorizing Capital funding for the City of Toronto=s share of the Joint Optimization Study.

 Concerns in regards to the integrity of Toronto=s tax base as a result of providing additional water supply to York were identified in Deputation Item 22a. Issues raised include the anticipated ability for Toronto to provide additional supply to York at a lower cost than any of the alternatives, the rate of growth in York, and associated sprawl and having the tax base migrate from Toronto to the 905 area. Given Toronto=s long-standing partnership with York Region with respect to water supply, we should consider any requests from York for additional supply. York Region pays their share of all Capital and Operating costs for water they receive from Toronto and there are mutual benefits that support the development of cost-shared infrastructure. Issues with regards to urban sprawl would be best addressed through the planning process.

 York Region clearly would prefer to obtain its short-term water supply from Toronto and is willing to consider its long-term supply from Toronto. Based on analysis to date, there appears to be mutual benefits for York=s long-term supply to be provided through the Toronto system. The planning processes being used will identify the best alternative from both an environmental and cost perspective.

 Conclusion:

 To mutual benefit since 1975, Toronto has been providing water to York Region, and a new agreement has been developed to meet York=s short-term needs to 2004. Additional infrastructure is required to meet Water Supply demands as a result of planned growth while incorporating water efficiency measures within the City of Toronto and York Region. In partnership with the Region

    of York, a Joint Optimization Study will be undertaken to establish the most effective manner of meeting York Region=s long-term water demands. Toronto staff will be providing input during the EA process for York=s Durham West long-term supply alternative.

  Contact Name and Telephone Number:

 Mr. H.A. Taniguchi, P. Eng.

Director of Water Supply Division

Phone: (416) 392-8220

Fax: (416) 392-3639

E-mail: htaniguchi@metrodesk.metrotor.on.ca

 M.G. Thorne, P. Eng.

Interim Functional Lead, Water & Wastewater

 Barry H. Gutteridge

Commissioner of Works and Emergency Services