Glengarry Regional Water Supply Project

Public Meeting

June 26, 2013

Presenters Jeff Beaty: CH2M HILL - Consultant Team Project Manager Michael Paul: MHPM - Owner’s Representative

Presentation Overview General Project Status Update Maxville Servicing Forms Review of Questions from Previous Public Meeting Overview of update cost estimates Funding Update Next Steps Questions

Current Project Status Environmental Assessment (EA) complete Approximately 80% Design Stage Design to be completed in Fall 2013 Supplemental surveying and utility locates completed in

June Decided on a split tender to provide better value and

interest from local contractors

Overview Map

Maxville Distribution System

Individual service water connections into residences and businesses Street watermain = large,

house connection = small

Typically, these are 15 – 25 mm pipe connections Usually PVC or HDPE

Maxville Servicing Connections

Maxville Servicing Connections

The connection include water stops, water meters, and backflow preventers

We need to know where to make this connection in your house

Maxville Servicing Forms Mail-out provided to

allow you to show routing for connection

Address information Roll number Service pipe routing

90o, straight connections Try to avoid major

obstacles Avoid back and forth

routing CR20 & CR43 have an extra

section (Yes/No)

Preliminary O&M Costs Estimated Annual Operation and Maintenance (O&M)

Costs: Cost to purchase water from Cornwall: $350K Martintown BPS: $200K Transmission Main: $357K Maxville & Alexandria distr. Systems: $500K Long-Term Debt: $346K (until 2022) TOTAL: $1,753,000

Current: $1,488,000 (Alexandria and small system in Glen Robertson) – incl. long-term debt & deficit repayment

If I keep my well for non-potable water, and disconnect it from the house, will it affect my property taxes by having two sources of water? A: No. You will only be charge for 1 source of water. The systems must be completely separate.

Who would own and maintain the infrastructure? A: The Ownership will be split based on consumption of water between North Glengarry and South Glengarry. A water utility corporation may be set up to simplify this relationship.

What about vacant land within Maxville boundaries, does it need to be connected? A: Vacant land will not be required to connect to the system. If the owner decides to connect now or in the future, the owner will be required to pay the applicable connection costs based on type of usage.

Questions from November 2012 Public Meeting

Can a person decide not to hook into system? A: Everyone in Maxville within the noted boundaries will have to connect. All current connections in Alexandria will be transferred to the new system.

If I am located along the transmission main, but not in Maxville, can I still connect? A: There is a possibility of connecting outside of Maxville, however that decision will be made on a case-by-case basis, and the property owner will be responsible for the costs associated with the connection.

What communities will connect to the system? A: Maxville and Alexandria will connect immediately upon completion of construction. The system is designed for capacity of Dominionville, Apple Hill, Green Valley, Glendale, Glendale Industrial Park, and connections along the transmission main on CR 42 and 20. The date for the future connections has not yet been determined and will depend on funding arrangements.

Questions from November 2012 Public Meeting

How will the Township accommodate fixed and/or low income homeowners to be able to afford the water costs? A: The Township will review on a case-by-case basis opportunities to assist residents to plan for the annual costs.

You have shown that Alexandrians would pay a smaller portion of the capital costs, but Maxville will help to pay some of Alexandria’s long term debt; does this make sense? A: North Glengarry’s water and sewer rates are already blended and have been for years. So while Maxville will be helping to pay Alexandria’s debt, Alexandria users (who outnumber Maxville 3 to 1) also helped to pay for Maxville’s lagoon and sewage system.

What are the capital / annual costs? A: This will be addressed later in the presentation.

Questions from November 2012 Public Meeting

Capital Costs Capital costs approximately $61M based on 60% design

cost estimates All costs use 90% funding assistance on capital from

upper levels of government (provincial or federal) 9% North Glengarry contribution 1% South Glengarry contribution Average per connection, actual costs may vary depending

on usage and type of connection (ie residential, commercial, etc)

30 year financing term

Preliminary O&M Costs Annual Operation and Maintenance (O&M) Costs:

Cost to purchase water from Cornwall: $350K Martintown BPS: $200K Transmission Main: $345K Maxville & Alexandria distr. Systems: $550K Long-Term Debt: $346K (until 2022) TOTAL: $1,791,000

Current: $1,488,000 (Alexandria and small system in Glen Robertson) – incl. long-term debt & deficit repayment

Preliminary Design - Costs Annual cost per household breakdown:

Maxville (2015-2022): 30% toward capital & 70% toward O&M Maxville (beyond 2022): 35% toward capital & 65% toward O&M Alexandria (2015-2022): 13% toward capital & 87% toward O&M Alexandria(beyond 2022): 15% toward capital & 85% toward O&M

Average Annual Cost Per Connection Alexandria

Based on cost per connection of $2,059

Current Costs per year

Projected Costs per year (capital financed)

Current Water costs $700 $1,000

Bottled Water (some residents) $360 $0

Total 2015-2022

$1,060 $1,000

Water costs $800 $ 826

Potential Financing for water plant upgrades required in the future

$400 N/A

Total Beyond 2022 $1,260 $ 826

Average Annual Cost Per Connection Maxville

Based on cost per connection of $5,692 Current Costs per year

Projected Costs per year

Water costs $0 $1,184

Bottled Water (some residents) $360 $0

Well maintenance (softener, electricity, replacement of pump) Does not include new well

$720 $0

Total 2015-2022

$1,080 $1,184

Water costs $0 $1,015

Bottled Water (some residents) $360 $0

Well maintenance $720 $0

Total Beyond 2022 $1,080 $1,015

Other Costs associated with Hard Water in Maxville

Reduced Lifespan of appliances Reduced lifespan of fixtures and piping Inability to sell homes or suppressed real estate values Impact on clothing and linens Declining population resulting in increased tax burden per

taxpayer.

Preliminary Connection Costs Alexandria

House connection in place – no cost Maxville

One time cost only to bring in services on private property Will vary depending on distance from property line to house

and type of reinstatement (ie grass, asphalt, interlock brick etc) Item Cost

Exterior Service from property line to building $1,200

Well Decommissioning $800

Interior Plumbing $400

Water Meter $0 (by Township)

Total (Approximate Cost) $2,400

Preliminary Connection Costs Option to have Township fund connection costs over 5 or

10 years or longer At 4% interest over 5 years

Monthly Cost $44 Annual Cost $528

At 4% interest over 10 years Monthly Cost $24 Annual Cost $288

Funding Update Met with Minister Murray, Minister of Infrastructure

of Ontario Received support for the project from Grant Crack

MPP, Jim McDonnell, MPP, Pierre Lemieux MP, and Guy Lauzon MP

City of Cornwall and Township of South Glengarry are also in support of the project

Next Steps for Overall Project Continue to pursue federal and provincial funding Refine cost details Finalized operating agreements Design completed and tender ready package – early

Fall 2013

Questions?

Glengarry Regional Water Supply Project