State of Ontario Public Utilities Commission - CK PUC
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1 M I N U T E S PUBLIC UTILITIES COMMISSION PUC BOARDROOM FEBRUARY 12, GRAND AVE E 2:30 PM PRESENT: Chairman Randy Hope, Commissioners Bryon Fluker, Jeff Wesley, David VanDamme, Brock McGregor, Trevor Thompson, CAO Don Shropshire, Tom Kissner, Facility and Systems Manager Rob Bernardi, Manager (Central) Tim Sunderland, and Supervisor of Compliance & Monitoring Lilly Snobelen. ABSENT: Commissioner Leon Leclair and Manager (North) Robin Dudley. 1. CALL TO ORDER Chairman Randy Hope called the meeting to order at 2:35 PM. 2. DECLARATION OF PECUNIARY INTEREST NONE 3. APPROVAL OF MINUTES a) January 15, 2015 Moved by Commissioner Thompson and seconded by Commissioner McGregor. That the Regular minutes of January 15, 2015 be approved. 4. REPORTS a) 2014 Summary Reports for Chatham-Kent Drinking Water & Wastewater Systems MUNICIPALITY OF CHATHAM-KENT PUBLIC UTILITIES COMMISSION TO: FROM: PUC Chairperson and Commissioners Lilly Snobelen Supervisor, Compliance & Quality Standards Public Utilities Commission DATE: February 5, 2015 SUBJECT: 2014 Summary Reports for Drinking Water and Wastewater Systems RECOMMENDATION It is recommended that: 1. The Chatham-Kent Public Utilities Commission (CK PUC) review the attached summary reports on the drinking water and wastewater systems and address any concerns with the of CK PUC.
2 PUC Minutes: February 12, BACKGROUND Under Schedule 22 Summary Reports for Municipalities Regulation 170/03, Safe Drinking Water Act, 2002, Administration is required to present a yearly summary report to the members of Commission and to the members of Council. Commission has also asked that Administration prepare a summary of the wastewater treatment systems for information. COMMENTS Attached are the Annual Summary Reports for each water and wastewater system under CK PUC. The following list of items is included in the annual summary reports: Water Systems: A summary list of issues for all of the water systems A list of requirements of the Act, the regulations, the system approval and any order that the system failed to meet at any time during the period covered by the report and the duration of the failure For each failure, a description of the measures that were taken to correct the system A summary of the quantities and flow rates of the water supplied during the period covered by the report, including monthly average and maximum daily flows and daily instantaneous peak flow rates A comparison of the summary to the rated capacity and flow rates approved in the system approval Wastewater Systems: A brief description of the wastewater treatment system A list of effluent requirements as set out in the various Certificates of Approval for the systems A comparison of the summary to the rated capacity and flow rates approved in the system approval A table of the effluent analysis and any compliance issues identified COUNCIL DIRECTIONS The recommendations in this report support the following Council Directions: CONSULTATION JOBS: Everyone in Chatham-Kent who wants to work is able to work in meaningful employment PEOPLE: Chatham-Kent is a welcoming community where people choose to live, learn, work, and play HEALTH: Chatham-Kent is a healthy, active, safe, accessible community within a healthy natural and built environment FINANCIAL SUSTAINABILITY: The Corporation of the Municipality of Chatham-Kent is financially Sustainable Has the potential to support all Council Directions Neutral issues (does not support negatively or positively) The PUC Environmental Compliance Technicians assisted with the preparation of the facility reports. FINANCIAL IMPLICATIONS There are no financial implications resulting from the recommendation contained in this report. Prepared by: Lilly Snobelen Supervisor, Compliance & Quality Standards Reviewed by: Tom Kissner
3 PUC Minutes: February 12, Moved by Commissioner Wesley and seconded by Commissioner VanDamme. That the Chatham-Kent Public Utilities Commission (CK PUC) review the attached summary reports on the drinking water and wastewater systems and address any concerns with the of CK PUC. b) Financial Plan Regulatory Requirements MUNICIPALITY OF CHATHAM-KENT Public Utilities Commission TO: FROM: PUC Chairperson and Commissioners Tom Kissner Chatham-Kent Public Utilities Commission DATE: January 25, 2015 SUBJECT: Financial Plan Regulatory Requirements RECOMMENDATIONS It is recommended that Commission approve: 1. The Chatham-Kent Public Utilities Commission (CK PUC) Water and Wastewater Ontario Regulation 453/07 Financial Plan The submission of the CK PUC Water and Wastewater Financial Plan to the Ministry of Municipal Affairs and Housing as part of the process for renewing the CK PUC Municipal Drinking Water Licence for the operation of the Chatham-Kent drinking water systems. 3. The submission of a copy of the Commission Resolution approving the CK PUC Water and Wastewater Financial Plan to the Ministry of Environment and Climate Change as part of the process for renewing the CK PUC Municipal Drinking Water Licence for the operation of the Chatham-Kent drinking water systems. 4. That copies of the CK PUC Financial Plan for Water and Wastewater be made available to the public at no charge and that the plan be available on the Chatham-Kent Municipal website. BACKGROUND As part of its commitment to ensuring Ontarians have safe, clean drinking water now and in the future, the Province of Ontario required the mandatory licensing of municipal water providers in In order to become licensed, a municipality had to satisfy five key requirements. The requirements were as follows: 1. Obtain a drinking water works permit 2. Acceptance of the operational plan for the system based on the Drinking Water Quality Management Standard 3. Accreditation of the Operating Authority 4. Preparation and submission of a financial plan 5. Obtain a Permit to Take Water The preparation of a financial plan was a key requirement for licensing and the long-term financial sustainability for municipal residential drinking water systems. Planning to ensure that adequate finances are available to cover both day-to-day operational costs as well as the costs of maintaining and upgrading municipal water systems is important to ensuring the safety of the drinking water that is provided now and in the future. Regulatory requirements for the Financial Plans were, and remain as follows: For existing municipal residential drinking water systems, financial plans must be developed for a minimum six-year period and must contain details of the system s financial position, financial operations and cash flow. Upon approval, the financial plans must be submitted to the Ministry of Municipal Affairs and Housing (MMAH). The first financial plans for existing systems are required as a condition of the system s drinking water licence. The financial plans must be updated in conjunction with every application to renew a water system s drinking water licence (every 5 years) and current financial plans must be made available to the users of the system upon request and at no charge. If a municipal website is maintained, the financial plan must be made available to the public through publication on the internet.
4 PUC Minutes: February 12, The Regulation requires municipalities to undertake financial planning for drinking water systems but encourages joint planning for water and wastewater systems given the inherent relationships among those services. CK PUC satisfied the five key requirements of a Municipal Drinking Water Licence and was successful in obtaining a Municipal Drinking Water Licence in COMMENTS The current CK PUC Municipal Drinking Water Licence expires in September 2015 with an application submission deadline of March 2015.The only outstanding requirement that must be fulfilled in order to move forward with the submission of the application is the submission of an approved Financial Plan to the MMAH. Information contained in the initial CK PUC Financial Plan was based on the CK PUC Water and Wastewater Rate Study that was completed by Watson and Associates Economists Ltd. in June The Rate Study was based on information that was current at the time, as well as information contained in the CK PUC Water and Wastewater Master Plan. Information from the Rate Study and the Master Plan was converted into the prescribed reporting requirements for a financial plan as defined by Ontario Regulation 453/07. Administration has reviewed these documents on an annual basis to determine recommended annual rate increases for water and wastewater. For 2014, a CK PUC Business Plan was developed, outlining strategic goals for 2014 as well as a budget and the rates associated with the support of the proposed budget. The Business Plan contained a projection of budgets and rates for a period of 4 years. An updated and revised Business Plan has been developed for CK PUC for 2015, including projected budgets and rates to In order to meet the requirement of a 6 year period for the Financial Plan, Administration has included budgets and rates for the Financial Plan spanning the years of 2015 to Watson and Associates Economists Ltd. was retained in November of 2014 by CK PUC to update the initial CK PUC Financial Plan to include current information as well as the information that is contained in the CK PUC 2015 Business Plan. Once approved by Commission, a copy of the Financial Plan will be provided to MMAH and be made available to the public, free of charge, on the Municipal website. As well, the resolution approved by Commission will be submitted to the Ministry of the Environment and Climate Change with the Municipal Drinking Water Licence renewal application. CONSULTATIONS Area Managers, CK PUC Manager, Facilities and Systems, CK PUC Supervisor of Compliance and Quality Standards, CK PUC Gary Scandlan, Associate Director, Watson and Associates Economists Ltd. FINANCIAL IMPLICATIONS The approved water and wastewater rates provide for the long-term financial sustainability of the CK PUC drinking water and wastewater systems. Prepared by: Tom Kissner, Moved by Commissioner Fluker and seconded by Commissioner VanDamme. That the Chatham-Kent Public Utilities Commission (CK PUC) Water and Wastewater Ontario Regulation 453/07 Financial Plan The submission of the CK PUC Water and Wastewater Financial Plan to the Ministry of Municipal Affairs and Housing as part of the process for renewing the CK PUC Municipal Drinking Water Licence for the operation of the Chatham-Kent drinking water systems. The submission of a copy of the Commission Resolution approving the CK PUC Water and Wastewater Financial Plan to the Ministry of Environment and Climate Change as part of the process for renewing the CK PUC Municipal Drinking Water Licence for the operation of the Chatham-Kent drinking water systems.
5 PUC Minutes: February 12, That copies of the CK PUC Financial Plan for Water and Wastewater be made available to the public at no charge and that the plan be available on the Chatham-Kent Municipal website. c) Chatham-Kent Public Utilities Commission 2015 Business Plan MUNICIPALITY OF CHATHAM-KENT Public Utilities Commission TO: FROM: PUC Chairperson and Commission Members Tom Kissner Chatham-Kent Public Utilities Commission DATE: January 28, 2015 SUBJECT: Chatham-Kent Public Utilities Commission 2015 Business Plan RECOMMENDATIONS It is recommended that Commission approve: 1. The Chatham-Kent Public Utilities Commission (CK PUC) Business Plan, 2. The water and wastewater budgets, as outlined in the income statements included in the CK PUC Business Plan, 3. The water and wastewater rates for as recommended in the CK PUC Business Plan, 4. The inclusion of the 2015 water and wastewater rates into the Water and Sewer Rates By-Law No , 5. The Water and Sewer Rates By-Law No be approved and that By-Law No be repealed, effective February 1, BACKGROUND The Municipal Act 2001, Ontario Regulation 244/02, came into force on January 1, Part XII of the Act provides the power for the municipality or a local board to impose fees or charges for the use of a sewage system or the consumption of water. The Municipal Act, 2001, Part XII states that A by-law, if not repealed earlier, expires on December 31 of the year following the year in which the by-law was passed. (O.Reg. 244/02, s.12(3). The definition of by-law includes a resolution for the purpose of a local board. Before passing a by-law under Part XII of the Act, the Chatham-Kent Public Utilities Commission (CK PUC) is required to: Hold at least one public meeting, at which any person who attends, has an opportunity to make representation with respect to the matter, Ensure that a minimum of 21 days notice of the public meeting is given, Prior to adoption, make available information regarding service description, cost of service, amount of the charge and rationale for imposing the charge. The required Public Notice of the CK PUC meeting to consider the water and wastewater rates appeared on the Municipality of Chatham-Kent s website the week of January 16, COMMENTS In the past, CK PUC budgets and rates were presented to Commission through two separate reports. The information that was contained in those reports was consolidated by Administration into one document in 2014 the Chatham-Kent Public Utilities Commission Business Plan. The primary purpose of the Business Plan is to define what we do as a water and wastewater service provider, as well as to outline the direction of our business in the future. The CK PUC Business Plan formalizes a number goals as well as strategies and plans for reaching those goals. Also included as part of the Business Plan are income statements based on recommended water and wastewater budgets and rates.
6 PUC Minutes: February 12, Administration is seeking Commission s approval of the 4 year budgets and associated rates that are outlined in the CK PUC Business Plan. The approval of the multi-year budgets and rates allows for a more long-term and strategic planning process to occur rather than based on annual planning. It is anticipated that if there is a significant variance in budget requirements and/ or revenues, a report would be brought back to Commission with consideration to the variance and the impact on budgets and/or rates. It is also anticipated that Administration would be providing updates to Commission with regards to strategic direction and goals on an annual basis. If Commission does support the concept of multi-year rate approvals, a report will be required to be presented to Commission at the beginning of each year seeking approval of a new Water and Sewer Rates By-law (with the inclusion of the approved rates) and repeal of the existing Water and Sewer Rates By-law. CONSULTATIONS Area Managers, CK PUC Facilities and Systems Manager, CK PUC Supervisor, Compliance and Quality Standards, CK PUC FINANCIAL IMPLICATIONS It is anticipated that the proposed water and wastewater rates, as included in the CK PUC Business Plan, will provide sufficient funding for the operations, maintenance and lifecycle activities during that period. Prepared by: Tom Kissner, Moved by Commissioner VanDamme and seconded by Commissioner Fluker. That the Chatham-Kent Public Utilities Commission (CK PUC) Business Plan, The water and wastewater budgets, as outlined in the income statements included in the CK PUC Business Plan, The water and wastewater rates for as recommended in the CK PUC Business Plan, The inclusion of the 2015 water and wastewater rates into the Water and Sewer Rates By- Law No , The Water and Sewer Rates By-Law No be approved and that By-Law No be repealed, effective February 1, unanimously d) Eighth Line Waterline Tender TO: FROM: MUNICIPALITY OF CHATHAM-KENT INFRASTRUCTURE AND ENGINEERING SERVICES PUBLIC UTILITIES COMMISSION PUC Chairperson and Commissioners Nelson Cavacas, C.E.T. Manager, Infrastructure and Development Engineering DATE: February 9, 2015 Subject: Tender Award: Contract T14-261, Eighth Line East Water Main Extension, Community of Raleigh RECOMMENDATIONS It is recommended that:
7 PUC Minutes: February 12, The tender in the amount of $37, including HST for the Eighth Line Water Main Extension in the Community of Raleigh be awarded to Drill-It Utility Services Incorporated. 2. The Eighth Line Water Main Extension project be approved with PUC over sizing water main costs at the total amount of $73, to be funded from the PUC Part XII Development Charges Reserve for the identified $30, project over sizing costs and through Part XII Charges assessed upon project completion for the $42, project costs for the 50mm watermain. BACKGROUND The water main extension on Eighth Line in community of Raleigh was submitted to the Chatham-Kent Public Utilities Commission (PUC) in May 2014 and was approved by PUC to proceed to construction. The engineering, contract administration, and inspection on this project are being carried out by the Engineering and Transportation Division. The Purchasing Officer received and opened tenders for the work on Thursday, December 18, There was a total of 9 bids received but one bid was a non-compliant bid because not all of the required documentation was submitted. The results are as follows for the eight complaint bids received: CONTRACT T EIGHTH LINE WATER MAIN EXTENSION COMMUNITY OF RALEIGH Rank Tenderer Tender Amount (incl. HST) 1 Drill-IT Utility Services Incorporated Kent Bridge, Ontario. $ 37,055.63* 2 H. E. Construction Limited Cedar Springs, Ontario. $ 58, Delway Contractors Limited Chatham, Ontario. $ 75, Clarke Construction Limited Blenheim, Ontario. $ 81, Greenfield Contracting Limited Sarnia, Ontario. $ 96, Henry Heyink Construction Limited Chatham, Ontario. $ 104, Nevan Construction Incorporated Kingsville, Ontario $ 146, Mark G. Contracting Incorporated Tilbury, Ontario $ 160, * Note: A mathematical error was corrected but it did not impact the tender outcome. Engineering and Transportation Division has reviewed the tenders and found them to be complete in all respects except for the bid received from Drill-IT Utility Services Incorporated where an arithmetic error was corrected. This correction did not impact the tender rankings. COMMENTS The project consists of the installation of a new water main extension on Eighth Line that will be connected to the existing 150mm waterline on Merlin Road. The new water main will be over sized from a minimum 50mm minimum diameter size to a 100mm diameter size to address future area servicing needs. The new 100mm water main will extend from Merlin Road east to approximately 775m. A total of 4 occupied residential properties and 2 vacant agricultural properties exist within this proposed water main project limits that was successfully petitioned and previously approved by the PUC. These affected property owners shall be responsible for the minimum 50mm diameter sized water main project costs identified in the Financial Implications section of the report. A site map of the water main replacement has been attached for reference (see Appendix A).
8 PUC Minutes: February 12, The project construction is to start in the spring once climate conditions permit and will be substantially completed by May 15, The Engineering and Transportation Division s most recent estimate for construction was $95,000 including over sizing and HST. Eight compliant competitive bids were received on the project. The low tender received is below the construction estimate and 34.8% below the average of the eight tenders received. In addition, the project tendered cost is 23.5% below the estimated total Part XII Charges to be assessed that was approved by petition ballot sent to the six properties being specially assessed for the water main extension as a Local Improvement. A summary of the breakdown and comparison of the individual property Part XII Assessment Charges are shown below in the Financial Implications section of this report. It is the recommendation herein that the contract be awarded to Drill-IT Utility Services Incorporated who submitted the lowest tender bid. The project breakdown is summarized in the Financial Implications section of this report. COUNCIL DIRECTIONS The recommendations in this report support the following Council Directions: JOBS: Everyone in Chatham-Kent who wants to work is able to work in meaningful employment PEOPLE: Chatham-Kent is a welcoming community where people choose to live, learn, work, and play HEALTH: Chatham-Kent is a healthy, active, safe, accessible community within a healthy natural and built environment FINANCIAL SUSTAINABILITY: The Corporation of the Municipality of Chatham-Kent is financially Sustainable CONSULTATION Has the potential to support all Council Directions Neutral issues (does not support negatively or positively) The Purchasing Officer and Legal Officer were consulted on tendering policy to confirm the non-compliant bid that was rejected because they did not submit all of the required documentation in accordance with the Municipality of Chatham-Kent tendering policy. The, was consulted in the preparation of this report and supports the recommendations. FINANCIAL IMPLICATIONS The project is being funded through Part XII Charges to be assessed upon project completion and from the PUC Part XII Development Charges Reserves for the identified $30, project over sizing costs. The project summary is set out in the following table. (A) Project Costs EIGHTH LINE WATERMAIN EXTENSION CONTRACT T COMMUNITY OF RALEIGH DESCRIPTION TOTAL Low Tender, incl. HST $ 37, Engineering $ 9, Approvals $ 1, Less HST Rebate 11.24% -$ 4, Add - PUC Over sizing ( PUC Cost ) $ 30, Total $ 73, (B) Project Part XII Charge Assessment Summary Watermain Project Total $ 73, Less PUC Over sizing ( PUC Cost ) -$ 30, Project Balance to be Assessed $ 42, Total Property Assessments 4.5 Individual Connection $ 9,553.91
9 PUC Minutes: February 12, Individual Part XII DC Connection Charge $ 1, Total Individual Part XII Charge $ 11, (C) Estimated Part XII Charge Comparison Summary Estimated Part XII Charge Current Tendered Project Part XII Charge Difference (-)Over / (+) Under $ 14, $ 11, $ 3, Percentage Comparison 23.3% Prepared by: Nelson Cavacas, C.E.T. Manager, Infrastructure and Development Engineering Engineering and Transportation Division Reviewed by: Tom Kissner,, Moved by Commissioner Fluker and seconded by Commissioner Thompson. That the tender in the amount of $37, including HST for the Eighth Line Water Main Extension in the Community of Raleigh be awarded to Drill-It Utility Services Incorporated. The Eighth Line Water Main Extension project be approved with PUC over sizing water main costs at the total amount of $73, to be funded from the PUC Part XII Development Charges Reserve for the identified $30, project over sizing costs and through Part XII Charges assessed upon project completion for the $42, project costs for the 50mm watermain. 5. INFORMATION NONE 6. NEW BUSINESS NONE 7. NEXT MEETING The next regular PUC Commission meeting is scheduled for Thursday, March 12, 2015 at 3:00 PM in the PUC Boardroom. 8. ADJOURNMENT Moved by Commissioner McGregor and seconded by Commissioner Wesley. That the Regular meeting be adjourned at 4:15 PM and to move in-camera.
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