June 15, 2009 - District of Mission

67
UMC Report No. 32 -2009
Page 5 of 5
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F ild Logistics
A preliminary discussion has been initiated with the City of Abbotsford's auditor on the proposed
strategy with respect to the new Public Sector Accounting Board 3150 regulations (PSAB). No
major concern has been raised by the City's auditor at this point, except some changes to the
present administrative procedures.
Peak Day Demands usually happen during summer time when the weather is hot and water
consumption is high. The calculation of "over-usage" fee and the cashflow between the two
municipalities regarding the Joint Water Capital Projects based on Peak Day Demands is
expected to be completed before year end.
FINANCIAL PLAN IMPLICATIONS
Initial contributions to the Joint Water Capital Projects by Abbotsford and Mission will be based
on the projected "growth" (Peak Day Demand Flow Split). Annual rebalancing of revenues will
occur for each asset every year based on the actual "growth" by each municipality until the end
of the additional system capacity the asset brings forth.
COMMUNICATION PLAN
Not applicable.
SUMMARY
The proposed cost sharing formula discussed in this report incorporates the concept of "growth"
and "Peak Day Demands". The formula accommodates deviations from the projected "growth"
by each municipality and provides a more accurate method of distributing costs. It is
recommended that the proposed strategy be approved by the WSC for determining the cost
sharing of Joint Water Capital projects from 2010 onwards.
Upon acceptance of this strategy, Staff will expand the spreadsheet framework to all Joint Water
Capital Projects; and will start developing a cost sharing formula for the Joint Sewer Capital
Projects y gi1ilar concepts discussed in this report.
Jim Gdon, P.Eng.
General Manager, Engineering and
Regional Utilities
Stella Chiu;\P„.E, M.Eng., LEED AP
Wastewater Pining/Process Engineer
Rob I ac,
Wastewater and Asset Engineering Manager