2004-03-29_Minutes--Procès-verbal
2004-62
Public Committee of the Whole
March 29, 2004
Public Committee of the Whole meeting of Common Council, held at the City Hall in The
City of Saint John, on Monday, the 29th day of March A.D. 2004, at 5:10 o'clock p.m.
Present:
Mayor McAlary,
Deputy Mayor White and Councillors Ball, Chase, Court,
Desmond, Fitzgerald, Fitzpatrick, Teed and Titus
- and -
1. Totten, City Manager; J. Nugent, City Solicitor; A. Beckett,
Commissioner of Finance and Commissioner of Corporate
Services; P. Groody, Commissioner of Municipal Operations; J.
Baird, Commissioner of Planning and Development; G.
Yeomans, Comptroller; P. Hanlon, Manager of Water and
Sewerage Services; S. Galbraith, Director of Works; P. Woods,
Common Clerk and Deputy City Manager and E. Gormley,
Assistant Common Clerk
1. Meeting Called To Order
The Mayor called the meeting to order and offered the opening prayer.
2. Water and Sewerage Report
The City Manager introduced the subject of Water and Wastewater commenting on the
importance of this matter to the City, and Mr. Groody who proceeded to present his
submitted report on Water and Wastewater - Saint John in the 2151 Century.
Mr. Groody proposed a plan of action to bring the City's water and wastewater services
to high quality standards for the 2151 Century, setting out a time line of 9 years beyond
2004 during which the City would:
1. achieve 100% treatment of its wastewater effluents for areas currently serviced;
2. establish necessary treatment/filtration of its drinking water; and
3. begin the transition to adequate levels of investment in infrastructure renewal.
Referring to his report, Mr. Groody explained that the plan contemplates investments of
over $230 Million for the period 2005 to 2013 with about $84 Million in assistance to be
sought from others for cost-shared upgrade programs totaling more than twice that
amount: over $175 Million. He added that the Water and Sewerage Utility would invest a
further $55 Million in infrastructure renewal and watershed management, bringing the
total Saint John commitment to more than $146 Million in the nine years. Mr. Groody
expanded on the following categories, which were detailed in the submitted report:
Essential community outcomes, Wastewater - environmental stewardship, Water quality,
safety and service, Sustainable municipal infrastructure, Financing progress,
Communicating the future, and Getting the job done. He noted that a pivotal issue is
how we pay for the project, and critical to the plan's success is communication with the
public and industry.
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Mr. Groody offered some history of Saint John's water and wastewater systems, and
summarized the outcomes of studies completed on the issue leading to his conclusion
that Model "D" as described in the report is proposed as the preferred framework,
explaining that the model contemplates almost $84 million in assistance from others for
cost-shared upgrade programs totaling more than twice that much: over 175 million over
the period 2005 to 2013. He added that the City would also invest a further $55 million
in infrastructure renewal and watershed management, bringing its total commitment in
the 9 years to over $146 million, with utility customers paying for water, the rate
depending on the amount of financial contribution from others. He continued his
presentation by explaining the strategic direction for Water and Wastewater summarized
as follows:
one integrated treated potable water system to serve the entire community;
a single water treatment plant East (from Loch Lomond/Latimore Lake);
all untreated industrial water from West (Spruce Lake/Musquash);
changes would significantly improve system hydraulic efficiency;
most customers would be served by less expensive gravity flow;
some minor low and high pressure areas on the system would remain;
reduced flexibility to the largest industrial customer, Irving Pulp and Paper - no
redundancy.
Mr. Groody offered the following 25 recommendations for Council's consideration as
outlined in the report:
Wastewater Treatment
1. That Common Council endorse the proposed implementation strategy for wastewater
(treatment) system upgrades, as outlined in the submitted report.
2. That Common Council adopt the wastewater treatment concept recommended in the
CBCL Limited report Eastern Wastewater System - Evaluation of Wastewater
Treatment Options for a new conventional activated sludge (secondary) treatment
plant at the Hazen Creek site, as presented to Council on May 12, 2003.
3. That the City proceed with a public call for proposals for engineering consultant
services to provide detailed design and construction management for a new 35,000
m3/day wastewater treatment facility at Hazen Creek.
Water Qualitv
4. That Common Council endorse the proposed implementation strategy for water
service needs (treatment) upgrades, as outlined in the submitted report.
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5. That consulting services be retained to carry out a detailed engineering evaluation of
a Modified Option 2B water treatment/system configuration, as outlined, including a
thorough assessment of source supply considerations, as a possible future water
servicing configuration for Saint John and to advise appropriately.
6. That the City continue its work towards improved water quality, in a manner
consistent with both Option 4 and Modified Option 2B, as outlined.
7. That Common Council set 2012 as the goal for a fully treated water service, with
years 2010 and 2011 designated for construction of water treatment facilities.
8. That Common Council prepare to address the very complex and serious question of
Musquash water rights - either legally or through negotiation with the Province of
New Brunswick.
9. That Common Council reiterate its position that an East industrial transmission
system would be considered only if and when principle industrial clients clearly want
it and are prepared to fully fund its capital and operating costs.
Sustainable Infrastructure
10. That Common Council endorse a comprehensive and ongoing program of
Sustainable Utility Infrastructure, based on the principles of the FCM-NRC National
Guide to Sustainable Municipal Infrastructure and the recommendations of the 2002
Water & Sewerage Business Plan Review.
11. That Common Council, in its financial management plan for the utility, put in place
over time direct financing (from revenues) for capital infrastructure renewal projects,
and further that it review the adequacy of such investments on a regular, 3-year
basis in conjunction with a triennial review of the utility business plan.
FinancinQ ProQress
12. That Common Council acknowledge the need for adequate water and sewerage
rates to support essential service upgrades and substantial infrastructure renewal
and, further, that the rate structure reflect fairness and user pay principles, with utility
costs fully and fairly allocated across the classes of utility customers.
13. That the principles of equity, optimality, efficiency and validity, as outlined, be
established as the basis for service effectiveness and sustainability.
14. That the current 4-block rate structure (number of blocks and consumption levels
only) for metered customers be maintained until fully treated (filtered) water comes
on line and, at that time, change to a 3-block system by dropping the 41h block.
15. That the 41h block rate be set to ensure it reflects the production costs of raw water
and that it become the rate for raw water when fully treated water comes on line.
16. That Common Council adopt Model "D", funding support from others for major
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upgrade programs, as outlined, as its desired financial model for the utility.
17. That Common Council formally request the required funding support of $83.55
million from others (for cost shared programs totaling at least $175 Million).
18. That Common Council adopt a policy to set rates for 3-year periods beginning in the
2005 budget year, that is for the period 2005 to 2007.
19. That the utility business plan be reviewed on a triennial basis, in the mid year of each
3-year rate period, with recommendations considered for the subsequent rate period.
20. That Common Council acknowledge that it will strive to provide a reasonable level of
rate predictability, recognizing that circumstances could result in need for changes.
21. That meter installations for existing residential customers be phased in over a 6-year
period commencing in 2006 and, further, that such households be charged for
services through the block structure effective January 151 of the year following
installation.
22. That a review of section 55 of the Water & Sewerage By-Law be undertaken, its
provisions updated, and guidelines established for its application.
Communications Plan
23. That Common Council entertain proposals from experienced, industry-recognized
communications firms or professionals, to be engaged to assist The City of Saint
John develop a comprehensive communications and public information program for
water and wastewater services in the 2151 Century.
Priorities of the City
24. That Common Council reaffirm its commitment to high quality, safe drinking water
and to an environment free of raw municipal sewage, and, further, that these
objectives remain foremost priorities of The City of Saint John.
25. That Common Council endorse the overall strategies outlined and commit to: (1)
achieve 100% treatment of its wastewater effluents for areas currently serviced; (2)
establish necessary treatment/filtration of its drinking water; and (3) begin the
transition to adequate levels of investment in infrastructure renewal.
Discussion followed with Councillors commending Mr. Groody and staff for the
comprehensive report, noting that a concerted effort is necessary on behalf of Council to
lobby government for the financial support for the project. It was noted that the Medical
Officer of Health for Saint John is quoted in the report as saying: "Saint John is in urgent
need of drinking water treatment...1 wish to state that this is also seen as a public health
priority. Please move ahead as rapidly as possible on both projects." Councillors also
expressed concern for the ability of seniors on fixed incomes to handle a water rate
increase as well as indicating that more than $84 million should be provided from others.
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The City Manager concluded by recommending that the number one priority initiative for
Saint John be the implementation of this Water and Wastewater plan.
The report will appear on the agenda of April 5, 2004 open session of Council.
The meeting adjourned at 7:30 o'clock p.m.
Common Clerk