June 15, 2009 - District of Mission

M iD
DIS TRICT
S TsiOnO F
ON THE FRASER
FILE: FIN.BUD.DOM
Regional Utilities
Finance Department
Memorandum
61
To: Chief Administrative Officer
From: Director of Finance
Date: June 4, 2009
Subject: Joint Water Capital Cost Sharing Formula
Recommendation
THAT District of Mission council approve the new regional water cost sharing formula as set out
in attached UMC report 32-2009 (Joint Water Capital Cost Sharing Formula); and
THAT District of Mission council approve amending accordingly, the Joint Water Supply and
Distribution and Sewage Treatment Systems "Ownership & Governance Agreement" and
"Operation and Maintenance Agreement".
Background
The attached report entitled "Joint Water Capital Cost Sharing Formula" was presented at the
May 14, 2009, Abbotsford/Mission Water & Sewer Commission (WSC) meeting and the
following recommendations were approved:
"THAT Report No. UMC 32-2009, dated April 30, 2009, from the Wastewater Planning/Process
Engineer (Abbotsford), regarding the Joint Water Capital Cost Sharing Formula, be received;
THAT the proposed cost sharing strategy for Joint Water Capital projects be approved in
principle by the WSC; and
THAT the WSC recommend the proposed cost sharing strategy be forwarded to Abbotsford and
Mission councils for approval and that the Joint Water Supply and Distribution and Sewage
Treatment Systems "Ownership & Governance Agreement" and the "Operation and
Maintenance Agreement" be amended accordingly."
As a result of the proposed funding increase for regional water capital projects, staff were
requested to discuss with Abbotsford staff ways of defraying escalating project costs and/or
deferring projects. From these discussions, a new joint water capital cost sharing formula was
created and presented to the WSC (see attached report UMC 32-2009 — Joint Water Capital
Cost Sharing Formula) for growth related projects. The highlights of the new formula are as
follows:
• Initial sharing of project costs based on the projected growth in each community that
would be serviceable by each asset;
• Growth projections used in the master planning process would be used as the growth
numbers in the formula with projections being updated every five years in conjunction
with master plan updates;
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