TAMRMS#: B06
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Water Supply Agreement with EPCOR
Presented by: Brian Brost, Acting Director, Utilities and Environment Department
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RECOMMENDATION(S)
recommendation
That the Chief Administrative Officer be authorized to execute a Water Supply Agreement between the City of St. Albert and EPCOR Water Services Inc. for a term of twenty years with an effective date of May 12, 2018, on terms and conditions satisfactory to the CAO.
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PURPOSE OF REPORT
To seek Council approval for execution by the CAO of a twenty-year agreement for supply of bulk potable water from EPCOR, for subsequent distribution to the customers of the City of St. Albert Water Utility.
ALIGNMENT TO LEVELS OF SERVICE DELIVERY
Service Name - Water Supply and Distribution Management
Service Definition - Supply, operation and maintenance of the distribution of drinking water to all properties within the City of St. Albert that are connected to the municipal water system and facilities.
Service Component - Regional Water treatment and supply
Current Service Level - Attain 24/7 uninterrupted supply of safe drinking water supply from EPCOR for distribution to all properties connected to the municipal water system.
BACKGROUND AND DISCUSSION
St. Albert is a member of the Regional Water Customer Group (RWCG), an association of urban and rural municipalities, water service commissions and other water utility systems operating in the Edmonton region, who purchase wholesale water from EPCOR Water Services Inc. (EPCOR)
Over the past approximately 5 years, representatives of the RWCG and EPCOR have developed jointly accepted principles and methodology to establish a price for bulk water based on cost of service and a defined return on investment (ROI) for EPCOR, and to allocate the costs and ROI equitably between the various customer groups. The principles and methodology are reflected in an Agreement that is substantially the same in this respect as the former 20-year water supply agreement that expired last year. The new Agreement is being recommended for execution by legal counsel for RWCG, and by the City Solicitor for St. Albert.
STAKEHOLDER COMMUNICATIONS OR ENGAGEMENT
N/A
IMPLICATIONS OF RECOMMENDATION(S)
Financial:
Cost of bulk water, currently approximately $6 million per year, is not anticipated to materially change under the new Agreement
Legal / Risk:
None at this time.
Program or Service:
None at this time.
Organizational:
None at this time.
ALTERNATIVES AND IMPLICATIONS CONSIDERED
Since EPCOR is the only practically available source of the quantity of potable water required to serve the needs of the water customers of St. Albert, and since this Agreement is subject to the regulatory oversight of the Energy and Utilities Commission, no alternatives were considered.
Report Date: March 4, 2019
Author(s): Brian Brost
Committee/Department: Utilities & Environment Department
Chief Administrative Officer: Kevin Scoble