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HomeMy WebLinkAboutINS-15-018 - City of Kitchener and Township of Wilmot Cross Border Agreement Staff Rport I r rc'.�► t .R Infrastructure Services Department wmkitchener.ca REPORT TO: Community & Infrastructure Services DATE OF MEETING: May 25, 2015 SUBMITTED BY: Wally Malcolm, Director Utilities, 519-741-2600 x4538 PREPARED BY: Angela Mick, Utilities Water Engineer, 519-741-2600 x4646 WARD(S) INVOLVED: All DATE OF REPORT: May 4, 2015 REPORT NO.: INS-15-018 SUBJECT: City of Kitchener and Township of Wilmot Cross Border Agreement RECOMMENDATION: THAT the Mayor and Clerk be authorized to execute a Cross Border Agreement with the Township of Wilmot to address operational, maintenance and other requirements, as outlined in Community and Infrastructure Services report INS-15-018; said agreement to be to the satisfaction of the City Solicitor. BACKGROUND: The City of Kitchener (Kitchener) operates and maintains the Mannheim/Shingletown water distribution and sanitary system relating to Mannheim Estates on behalf of the Township of Wilmot (Wilmot). Kitchener completes the meter reading, billing, pays all related expenses and keeps the revenue associated with both systems. The historic reason for this relationship are unclear however it is suspected that Kitchener may have installed the watermain to service Kitchener and when the Region became involved, the system changed ownership. It is believed that the relationship goes back to the 1950s/1 960s. Prior to Walkerton (2000) and subsequent regulations, ownership wasn't discussed since the system required very little maintenance and it wasn't heavily regulated. Post Walkerton, there are many more water related regulations which makes operating a system that you do not own, more difficult. In 2001 a Cross Border Servicing Agreement for Sewage Collection and Water was developed to service the 77 units in Mannheim Village Estates. An add on to the document was a sentence regarding the existing water service to the entire Mannheim Settlement Area "The parties hereto agree that Wilmot will own the watermain and the ***This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. 13 - 1 sanitary systems within Wilmot and Kitchener will own the watermain and sanitary sewer systems within Kitchener. All of the above-noted systems will be maintained and operated by Kitchener in accordance with Kitchener's Standards." The document does not reference how replacement costs/infrastructure is to be handled. There is no known agreement regarding the older area of Mannheim and Shingletown. Current Issues with the Operating Relationship • Regulatory requirements under the Safe Drinking Water Act for the Owner/Operator are becoming increasingly stringent on the water system. • The Drinking Water Quality Management Standard states that "The Operational Plan shall document a procedure for the annual review of the adequacy of the infrastructure necessary to operate and maintain the subject system." An external auditor flagged that this was an issue since neither Wilmot nor Kitchener includes these watermains in their replacement plans. The system is currently in very good condition but future replacement will be an issue. Although, this is a non-compliance, the auditor didn't formalize it because Kitchener was in discussions with Wilmot to try and resolve the issue. • Wilmot has indicated that they do not have the means to financially fund replacement since they do not collect any revenues. • The Drinking Water Quality Management Standard outlines specific reporting for the Operator to the Owner— Kitchener must report to Wilmot's council • Since the original arrangement, Wilmot has amalgamated Mannheim and Shingletown with their other systems, which means that Kitchener is operating a portion (2/5ths) of a water system which further complicates reporting and operations • Ontario Regulation 188/07 Financial Plans would also be impacted as related to replacement • MOE inspectors and Compliance officers need to visit both Kitchener and Wilmot (duplication of efforts for both municipalities and financial resources) • Kitchener needs to have and maintain an Operational Plan as does Wilmot for Mannheim and Shingletown (duplication of efforts) • Geographically, Kitchener Utilities is much farther away and it costs more to travel to Mannheim/Shingletown for operational/maintenance activities The intent to sever was communicated as part of INS-15-011 Drinking Water Quality Management Standard (DWQMS) — Management Review Summary for 2014, "severing of the operational relationship between Wilmot and Kitchener. A revised Cross Border Servicing Agreement to be brought forward in May 2015." It was highlighted under the Work Program for 2015 with additional information included under the Results of Infrastructure Review section. REPORT: 8 - 2 The Cross Border Agreement with the Township of Wilmot includes the following highlighted provisions: • WHEREAS Wilmot and Kitchener wish to enter into this Agreement pursuant to Section 20 of the Municipal Act, R.S.O. 2001, Chapter 25; • AND WHEREAS Kitchener has permitted certain lands within Wilmot to be drained by gravity sewers and be pumped via forcemain to sewers and a sanitary treatment plant within Kitchener; • AND WHEREAS an agreement exists between Kitchener and Wilmot entitled Cross Border Servicing Agreement for Sewage Collection and Water, June 13, 2001; • AND WHEREAS in order to accommodate wastewater from Wilmot, Wilmot desires to maintain various sewerage plant within Kitchener; and, • AND WHEREAS such plant is within the City of Kitchener, on rights of way owned by the Regional Municipality of Waterloo (Ottawa Street South and Trussler Road), ALIGNMENT WITH CITY OF KITCHENER STRATEGIC PLAN: The Operational Plan relates to the Foundation Plan — Efficient and Effective Government — Asset Management, Dependable Services by permitting Wilmot to operate the infrastructure that they own. FINANCIAL IMPLICATIONS: An analysis was completed to determine the amount of revenue received by Kitchener that should be attributed to replacement costs. Budget approved the following transfer from the City of Kitchener to the Township of Wilmot: Sanitary - $0 Water- $2337154 COMMUNITY ENGAGEMENT: INFORM — This report has been posted to the City's website with the agenda in advance of the council / committee meeting. Affected residents will receive a joint Kitchener/Wilmot communication informing them of the change and the impact. ACKNOWLEDGED BY: Dev Tyagi, Deputy CAO, Infrastructure Services 8 - 3