Wastewater Treatment Agreement - South Peel

The Works and Utilities Committee recommends the adoption of the following report (March 17, 1998) from the Commissioner of Works and Emergency Services:

Purpose:

To adjust the annual charge for wastewater flow from a portion of the City of Toronto to the Lakeview Plant, and from a portion of Peel Region to the Humber Treatment Plant.

Funding Sources, Financial Implications and Impact Statement:

The treatment rate, as set by the Ontario Clean Water Agency, has been used in the preparation of the 1998 Water Rate and the Water Pollution Control Operating Budget. The effect of this rate will be to reduce the 1998 expenditures by $106,500.00 and to reduce the 1998 revenues by $101,400.00.

Recommendations:

That we be authorized to accept from the Ontario Clean Water Agency, a wastewater treatment rate as follows:

(1)a final rate of 112.2 cents per thousand gallons (24.68 cents per cubic metre), for the period from January 1, 1997 to December 31, 1997; and

(2)a preliminary rate of 110.9 cents per thousand gallons (24.40 cents per cubic metre), for the period from January 1, 1998 to December 31, 1998.

Council Reference/Background/History:

Flow from a portion of the City of Toronto is directed to the Lakeview Treatment Plant in Peel Region operated by the Ontario Clean Water Agency (OCWA), on behalf of the Region of Peel. During 1997, a total flow of 2,450 million gallons (11.137 million cubic metres) was treated at this plant. Using the 1997 final rate indicated above, the total cost was $2,748,800.00. The City of Toronto, by agreement, also accepts flow from portions of the Region of Peel which is treated at our Humber Treatment Plant. The total flow accepted from Peel Region in 1997 was 2,342.0 million gallons (10.646 million cubic metres), generating a gross revenue of $2,627,500.00. The net effect of this agreement resulted in a payment of $121,300.00 to the Ontario Clean Water Agency.

At the end of each year, the Ontario Clean Water Agency sets the final rate for the current year and a preliminary rate for the following year based on their estimated costs. In December 1997, we received a letter from the OCWA stating that the final rate for the South Peel Sewage Agreement for 1997 was 112.2 cents per thousand gallons, a decrease of 0.8 cents from the 1997 Preliminary Rate of 113.0. This represents a decrease of 0.7 percent.

Similarly, the Ontario Clean Water Agency has set the Preliminary Rate for the fiscal year commencing January 1, 1998, at 110.9 cents per thousand gallons (24.40 cents per cubic metre). The actual rate, as indicated above, will be set in December 1998, and will be retroactive to January 1, 1998. The same rate is used for both incoming and outgoing flows.

Comments and/or Discussion and/or Justification:

Not applicable.

Conclusions:

This exchange of flow between parts of the City of Toronto and the South Peel systems is to achieve drainage by gravity within the existing natural drainage area, and minimizes pumping and related costs for each system and region concerned.

The Ontario Clean Water Agency requests a certified copy of the City of Toronto=s resolution accepting the wastewater service rate each year.

Contact Name:

Mr. R. M. Pickett, Director, Water Pollution Control Division

Phone: (416) 392-8230; Fax: (416) 397-0908

E-Mail: bob_pickett@metrodesk.metrotor.on.ca.