August 16, 1999

To:Works Committee

From:Commissioner of Works and Emergency Services

Subject:Wastewater Treatment Agreement - South Peel

Purpose:

To approve the 1998 and 1999 rates from the Region of Peel for the treatment of wastewater flow from a portion of the City of Toronto to the Lakeview Plant, and from a portion of the Region of Peel to the Humber Treatment Plant.

Funding Sources, Financial Implications and Impact Statement:

The treatment rate, as set by the Region of Peel, is used in the calculation of the Water Rate and the preparation of the Water Pollution Control Operating Budget. The affect 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 Region of Peel (formerly Ontario Clean Water Agency) the wastewater treatment rate as follows:

a final 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; and

a final rate of 112.0 cents per thousand gallons (24.62 cents per cubic metre), for the period from January 1, 1999, to December 31, 1999.

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 1998, a total flow of 2,098.4 million gallons (9.54 million cubic metres) was treated at this plant. Using the 1998 final rate indicated above, the total cost was $2,327,120.00. 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 1998 was 2,036.3 million gallons (9.26 million cubic metres), generating a gross revenue of $2,258,230.00 . The net effect of this agreement resulted in a payment of $68,890.00 to the Region of Peel.

Previously, at the end of each year, the Ontario Clean Water Agency the would set the final rate for the current year and a preliminary rate for the following year based on their estimated costs. In June, 1999, we received a letter from the Region of Peel, stating that the final rate for the South Peel Sewage Agreement for 1998 was 110.9 cents per thousand gallons, the same as the 1998 Preliminary Rate set in December, 1997.

For 1999, they advised that the preliminary and final rate method would not be used. The Region of Peel has set a fixed sewage treatment rate of 112.0 cents per thousand gallons (24.64 cents per cubic meter). This rate will not be adjusted at year end. This represents a one percent increase over the 1998 Final Rate.

Comments and/or Discussion and/or Justification:

The sewage treatment facilities (including Lakeview Treatment Plant) in the Region of Peel, owned and operated by the Ontario Clean Water Agency (OCWA), were transferred back to the Region of Peel under Provincial Bill No. 107, which passed Royal Ascent on May 27, 1997.

In 1998, the Region of Peel, in turn, hired OCWA to be their contract operator to operate their sewage treatment facilities.

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 calculation of the sewage treatment agreement rate is based on the principle of cost recovery and revenue neutrality.

The Region of Peel requests a certified copy of City of Toronto's resolution accepting the wastewater service rate each year.

 Contact Name:

R.M. Pickett, P.Eng.Wayne Green

DirectorDirector

Water Pollution ControlQuality Control & System Planning

Telephone: 392-8230Telephone: 392-8242

Fax: 397-0908Fax: 392-2974

    Michael A. Price, P.Eng., FICEBarry H. Gutteridge

General ManagerCommissioner

Water and Wastewater ServicesWorks and Emergency Services

 (peelagr1999)