Wastewater Treatment Agreement with

Region of Peel - Outstanding Claim

The Works and Utilities Committee recommends the adoption of the following report (May 4, 1998) from the Interim Functional Lead for Water and Wastewater:

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.

Recommendation:

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, Metropolitan 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, Metropolitan 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 the 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 Metropolitan 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,

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