Aquatera 2015/16 Business Plan Highlights

Transcription

1 Who We Are Aquatera 2015/16 Business Plan Highlights Aquatera is a full-service utility corporation the provider of choice for governments, businesses, and communities. Our business is to provide high-quality utility services and optimize value to consumers, the environment, and shareholders. What We Do We provide safe drinking water for community health. We provide utility services that foster regional prosperity. We are stewards of air, land, and water. Vision To be the most innovative municipal company in Canada by In realizing our vision we will: Generate $25 million in cash flow from operations Be below the median Alberta utility rate Double the dividends to shareholders Enhance public trust by prudently managing company risks Strategic Priorities Expand and Enhance Services Lean Aquatera Continuous Improvement Grow Our Business Engage with Stakeholders Capital Investments The proposed 2015/16 capital budget totals almost $86 million and the projection for five years is $144 million. The capital plan includes investments to accommodate a growing region, upgrades to accommodate more stringent regulations, and achieve business goals. Major capital investments are summarized below. Water System Wapiti River Upgrades: River bank protection is required to prevent ongoing erosion and protect storage cells and the pump station from flooding. This includes a new water intake to accommodate growth, regulatory requirements and a shifting river course, and increased raw water storage, which are estimated to cost $20 million. This is the top priority for funding under the new federal / provincial Building Canada Fund and benefits all Aquatera customers. Second Transmission Line: The entire regional water system is fed by a single transmission line from the treatment plant across the South Bear Creek pipe bridge to 68 Avenue. A second water transmission line from the plant along 108 Street will provide improved flows and reliability of supply at an estimated cost of $4.4 million. 1

2 Aquatera 2015/16 Business Plan Highlights West End / Airport Transmission Line: The City west-end industrial commercial growth requires a water transmission line feeding the airport reservoir and provides needed storage and fire flows at an estimated cost of $3.2 million. Wastewater System Wastewater Treatment Plant Upgrade and Expansion: Upgrades to plant address increasingly stringent regulatory requirements and expanded capacity accommodating 25 years of projected regional growth, is on schedule, and estimated at a cost of $60 million through Street Trunk Sewer O Brien Lake to Centre West: This trunk sewer will provide much needed wastewater capacity for the northwest quadrant of the City and provide relief to accommodate development within the 108 Street trunk sewer basin. The City s investment of $4 million will see this project proceed in The estimated cost to construct is up to $13.8 million. Building Canada Fund support for this project, and the connected Clairmont forcemain, will be sought as having regional benefit. Clairmont Forcemain to 116 Street Trunk Sewer: The Clairmont lagoon is at capacity from a quantity and quality perspective. The ultimate solution is to pump effluent to the 116 Street trunk sewer for treatment at the plant at an estimated cost of $13.8 million. Clairmont Regional Lift Station: All sewage in Clairmont must be pumped to the Clairmont lagoon. Growth areas drain through older areas with little remaining capacity. The ultimate solution to sewage collection in Clairmont is a regional lift station at an estimated cost of $12 million. County investment of $4 million advances helps advance construction and avoid costly interim / temporary upgrades. Sexsmith Lagoon Rehabilitation: Rehabilitation of the sewage lagoon is needed in the short term at an estimated cost of $1.4 million to repair damaged berm slopes and apply a liner prevent further erosion. Solid Waste The Bioreactor Landfill Gas-to-Energy will power and heat adjacent treatment plants (at reduced costs over the long term) while significantly reducing Green House Gas emissions beginning in The initial capital cost is over $8.5 million. Customer Satisfaction Residential and commercial customer satisfaction surveys were conducted in July The overall level of satisfaction with water, wastewater, and solid waste services has increased with the highest number of very satisfied customers (57%) since Aquatera was formed.

3 Aquatera 2015/16 Business Plan Highlights Shareholder Dividends Aquatera declared $3.5 million in 2014 including $1.3 million in discretionary dividends. Dividends are planned to increase to $3.7 million in 2015/16. Utility Rate Comparison Aquatera is committed to achieving utility rates below the provincial median among comparable Alberta cities. Grande Prairie monthly charges were $110, earlier this year the median of nine Alberta cities. $ Utility Rate Comparisons $ $ $80.00 $60.00 $40.00 $20.00 $- $110 Median Monthly Curbside Organics Landfill Charge Waste Program Fee Curbside Recycling Recycle Refuse Wastewater Support for Advocacy Efforts Shareholders assist in advocacy efforts with the Province. These include advocacy with Municipal Affairs for favourable changes to the Municipal Government Act, Control of Corporations Act, Aquatera Regulations, and Environment and Sustainable Development in updates to the Specified Gas Emitter Regulation affecting the value of carbon credits from the Bioreactor Landfill Gas-to-Energy project. It also includes updates and meetings with our MLA s and MP regarding legislative changes and funding opportunities like the New Building Canada Fund. New Shareholders and USA Changes Extending water to Wembley and communities further west is being considered that could create an opportunity for new Shareholders. An update of the Unanimous Shareholder Agreement will be needed to accommodate this and other changes. Customer Growth Short term growth is expected to continue at its current brisk pace. Water * Combined water/wastewater rates **Optional curbside services

4 *2015 *2016 Aquatera 2015/16 Business Plan Highlights New Meter Installations Sexsmith County Installs Clairmont Grande Prairie *estimated

5 Aquatera 2015/16 Utility Bylaw and Rate Change Summary 1 Water System Residential: General increase in rates due to constant rise in cost of utilities, supplies, maintenance, and capital upgrades. The typical increase is $1.39 per month in 2015 and $1.43 per month in Non-Residential Water rates increase an additional 10% recognizing the additional costs associated with higher water supply standards for fire protection. Irrigation meter water will see a 50% premium rate as a peak demand use, recognizing additional capital costs to accommodate a summer peak demand over 50% greater than normal. Bylaw definition changes will allow more consistent application of bulk water rates for large volume water hauling to industry. Grande Prairie Wastewater City of Grande Prairie and wastewater treatment plant connected areas in the County of Grande Prairie A major upgrade to the wastewater treatment plant is underway at a cost of $60 million through This upgrade will meet both capacity and provincial regulatory requirements longer term. The typical increases in rates are $2.23 per month in 2015 and $2.34 per month in Grande Prairie Solid Waste Landfill Collection General increase to cover cost of providing service. The typical increase of $0.68 per month in 2015 and $0.71 per month in Landfill cart collection service will be expanded to multi-family residences where possible. Means for disposal of more multi-family waste at the Aquatera landfill will be pursued. Recycling The typical increase of $0.36 per month in 2015 and $0.37 per month in 2016 to cover the increased cost of providing service. Tipping Fees Effective July 1, 2015, Tipping Fees at the Aquatera Waste Management facility (Landfill) will increase $6 to $95 per Tonne for regular waste with proportionate increases for other materials. Tipping fees last increased in Town of Sexsmith Wastewater The typical increase for the Town of Sexsmith wastewater charges will be $3.32 per month in 2015 and $3.65 per month in Clairmont System Wastewater The Clairmont lagoon s capacity is overcommitted with developments already approved. A forcemain along 116 St for treatment at the plant provides the best solution. Continued growth in developing areas, warrants upgrading to downstream sewage collection components. The typical monthly increases are $3.53 per month in 2015 and $3.89 per month in Amounts shown are for a typical residential customer monthly water consumption of 20 m 3.