June 15, 2009 - District of Mission

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• Annual adjustments to project cost sharing based on actual growth in each community
as measured by peak day water demand over an average of the top 10 peak days each
year; and,
• The new formula would be implemented effective January 1 st, 2010.
Staff believe that the proposed cost sharing formula for growth related (DCC) regional water
capital projects is an improvement in terms of equity over our current cost sharing formula.
However, it should be noted that annual adjustments will be made based on average actual
peak day water demand (over 10 maximum days), which places greater emphasis on water
conservation and related control of demand to lower one's capital costs, and as Mission is
largely unmetered in comparison to Abbotsford which is largely metered, Abbotsford has greater
ability to influence water demand/usage. Strategies should therefore be put in place to lower
peak day demand in Mission.
Summar
Based on a staff recommendation, the WSC is now recommending a revised cost sharing
formula for regional growth related water capital projects. The new formula offers greater equity;
however, it does place great emphasis on controlling water demand to lower one's capital costs.
As per the joint utility agreement between Mission and Abbotsford, each council is to approve
new cost sharing strategies and changes to the "Ownership & Governance Agreement" and the
"Operation and Maintenance Agreement". Therefore, it is recommended that District of Mission
council approve this new Joint Water Capital Cost Sharing Formula, and subsequent
amendments to the Joint Water Supply and Distribution and Sewage Treatment Systems
"Ownership & Governance Agreement" and the "Operation and Maintenance Agreement".
Ken Bjorgaard
GAFINANCEUTILITY TRANSFER \Budget Amendment Reports\Joint Water Capital Cost Sharing Formula 090601.doc
FILE: FIN.BUD.DOM PAGE 2 OF 2
Regional Utilities