June 15, 2009 - District of Mission

11111111/111111111111111111110,
Abbotsford
eftlika,./ Mission
Water & Sewer Services
REPORT
63
To: Abbotsford/Mission Water & Sewer Commission (WSC)
From: Stella Chiu, P.Eng., Wastewater Planning/Process Engineer
Date: April 30, 2009
Subject: Joint Water Capital Cost Sharing Formula
File: 5710-50
Report No.: UMC 32-2009
UTILITY MANAGEMENT COMMITTEE (UMC) RECOMMENDATION
1. THAT Report No. UMC 32 -2009, dated April 30, 2009, from Stella Chiu, P.Eng.,
Wastewater Planning/Process Engineer, regarding the Joint Water Capital Cost Sharing
Formula, be received;
2. THAT the proposed cost sharing strategy for Joint Water Capital projects be approved in
principle by the WSC, and
3. 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.
BACKGROUND
The City of Abbotsford and the District of Mission share the same water supply system which
includes the water source, the treatment system, and the transmission mains. At present, water
is supplied to Abbotsford and Mission from three sources: Norrish Creek, Cannel! Lake and
wells. Treatment is provided at individual source before water is conveyed through the
transmission mains to the distribution systems of Abbotsford and Mission.
The cost to upgrade the Joint Water Supply System (to increase capacity due to growth) is
shared between the two municipalities. In the past, the cost sharing of the capital projects was
undertaken on the basis of Average Day Demand (ADD; average water consumption over
365 days) split between Abbotsford and Mission of the previous year. For example, the ADD split
of Abbotsford and Mission in 2007 was 76.01% and 23.99%, respectively. As a result,
Abbotsford was responsible for 76.01% of the total Joint Water Capital Project cost in 2008 and
Mission was responsible for 23,99%.