tuesday, september 15, 2015 - collingwood envservicesagendapkg.pdf · a meeting of the...

September 15, 2015 Environmental Services Standing Committee Agenda - of 2

TOWN OF COLLINGWOOD

ENVIRONMENTAL SERVICES

STANDING COMMITTEE AGENDA

Tuesday, September 15, 2015

A meeting of the Environmental Services Standing Committee will be held Tuesday September 15, 2015. in Council Chambers, 97 Hurontario Street, Collingwood commencing at 3:00 p.m. Members: Deputy Mayor Brian Saunderson, Councillor Tim Fryer, Councillor Cam Ecclestone, Councillor Kathy

Jeffery, and Councillor Deb Doherty Departments: Water and Wastewater Services

ORDER OF BUSINESS

1. CALL OF STANDING COMMITTEE TO ORDER

2. ADOPTION OF AGENDA THAT the content of the Environmental Services Standing Committee Agenda for

September 15, 2015 be adopted as presented.

3. BUSINESS ARISING FROM THE PREVIOUS MEETING (August 11th, 2015)

4. DECLARATIONS OF PECUNIARY INTEREST AND/OR RECEIPT OF GIFT (over $200)

5. DEPUTATIONS

6. STAFF REPORTS ES2015-06 National Water and Wastewater Benchmarking Initiative: 2013 Data Results (p.3)

RECOMMENDING THAT the Environmental Services Standing Committee support and refer the following Staff Report to the next regular meeting of Council:

Recommendation: THAT Council receive Staff Report ES2015-06 entitled “National Water and Wastewater Benchmarking Initiative: 2013 Data Results” for information.

ES2015-07 ISO 14001 Accreditation & DWQMS Training (p.8)

RECOMMENDING THAT the Environmental Services Standing Committee receive the DWQMS training and support and refer the following Staff Report to the next regular meeting of Council:

Recommendation: THAT Council support staff to continue operations at the R.A.B Filtration Plant under ISO 14001 principals;

AND THAT Council authorize staff to not pursue ISO 14001 reaccreditation.

ES2015-08 Environmental Services: Wastewater Treatment Operations (p.39)

RECOMMENDING THAT the Environmental Services Standing Committee support and refer the following Staff Report to the next regular meeting of Council:

Recommendation: THAT Council receive Staff Report ES2015-08 entitled “Environmental Services: Wastewater Treatment Operations.”

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September 15, 2015 Environmental Services Standing Committee Agenda - of 2

7. DEPARTMENTAL UPDATES/DISCUSSION

Financial Plan / Licensing

MOECC Inspection Review (http://www.collingwood.ca/node/12654)

Rate Structure Presentation

2nd

Quarter Financial Update (p.63)

8. OLD / DEFERRED BUSINESS

Staff Report ES2015-04 Rate Increase - Retroactive to May 1, 2015 (p.73)

(Motion deferred August 11, 2015)

THAT Council receive Staff Report ES2015-04 entitled “Rate Increase- Retroactive to May 1, 2015”; THAT Council accept the rate increase of 3.3% retroactive to May 1, 2015;

*Staff no longer recommend a 3.3% rate increase

Staff Report ES2015-09 Business Plan Revised (p.79) (Motion deferred August 11, 2015)

THAT Council receive Staff Report ES2015-05 entitled “Environmental Services: 2015-2017 Business Plan” deferred on August 11, 2015 and receive the revised Staff Report ES2015-09; AND THAT Council accept the Environmental Services: 2015-2017 Business Plan, as presented herein.

9. OTHER BUSINESS

Infrastructure funding opportunities

10. PUBLIC DELEGATION(S) (maximum 5 minutes per delegation)

11. ADJOURNMENT

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http://www.collingwood.ca/node/12654

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STAFF REPORT

Report #ES2015-06 Reviewed by Department Heads on

September 1, 2015

Recommendation: Forward this report to Environmental Services Standing Committee

Date: September 15, 2015

Submitted to: Environmental Services Standing Committee

Submitted by: Peggy Slama, Chief Operating Officer (Acting) and Manager of Water Services

Subject: National Water and Wastewater Benchmarking Initiative: 2013 Data Results

1. BACKGROUND

Without measuring you cannot improve. With this in mind, Collingwood has been a participant in the National Water and Wastewater Benchmarking Initiative (NWWBI) facilitated by AECOM since 2011. While fundamentally a high level metric benchmarking process, NWWBI is also a networking and information base for 53 of the most progressive municipal utilities in Canada (Collingwood is the smallest). The NWWBI aims to gauge performance in relation to the seven Key Performance Indicators (KPIs) or Utility Goals which are the core of water and wastewater services:

PURPOSE The purpose of this report is to provide the results from the 2013 data iteration of the National Water and Wastewater Benchmarking Initiative (NWWBI).

RECOMMENDATION: THAT Council receive Staff Report ES2015-06 entitled “National Water and Wastewater Benchmarking Initiative: 2013 Data Results” for information.

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In addition to measuring the KPI’s, the Benchmarking Initiative is valuable in supporting member municipalities in many ways: Research/Surveys At any time AECOM can be asked to create and facilitate a survey on behalf of a member municipality. We participate in all surveys that are circulated and have asked AECOM to conduct surveys on our behalf to research how others are dealing with frozen services and backflow prevention. We have used the benchmarking network to conduct some of our own research on cross training of operators and the impact of locates as a result of ON1Call membership. We are also utilizing this network as we begin discussions for the procurement of Computerized Maintenance Management Software (CMMS). Task Force Working Groups These groups collaborate to better understand complex issues. They initiate performance improvement by identifying and developing better practice initiatives, and establishing metrics to monitor their success. Collingwood is currently a member of the Membrane Task Force whose purpose is to review the issues surrounding the cost-effective operation and maintenance of membrane systems and identify a series of

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basic performance and maintenance measures to report on and monitor long term system performance. We are also a part of the Frozen Services Task Force which has been valuable in preparing our Frozen Services Plan for 2016 which will be presented at the October Committee meeting. Annual Workshop An annual workshop is held where delegates can discuss emerging issues and glean from each other’s experience. This workshop is also an opportunity to review the deliverables of the NWWBI and determine what data is beneficial to report on. Staff has found this workshop to be tremendously useful and plan to attend again in 2016. Annual Data Graphs At the core of NWWBI is the annual data graphs. In the Fall of each year Collingwood submits over 2,100 pieces of data which AECOM uses to produce 413 graphs and dashboards which measure and rank us against other participants. These also trend our results so that we can monitor improvement over five years. Data is collected in the Fall for the previous year. The results are then analyzed and several drafts are presented, allowing for a municipality’s review and revision. Final graphs are produced in the Spring. As a result, 2013 final graphs were made available in June 2015. Graphs can also be customized as needed which we have done in the past for presentations to Council and the public. To ensure proper data collection, AECOM places significant effort on the creation of definitions for each performance measure and the data item collected. Definitions are reviewed during site visits and the annual workshop to verify that all participants are collecting the same data. Unlike benchmarking initiatives such as the BMA, NWWBI aims to normalize data and account for economies of scale. In this way we are confident that the effort of Collingwood can be accurately compared to those of large municipalities such as Peel, Halton, Calgary and Vancouver. 2. INPUT FROM OTHER SOURCES

Department Heads reviewed this report at their regular meeting on Tuesday September 1, 2015 and the report was recommended to proceed to the Environmental Services Standing Committee. 3. APPLICABLE POLICY OR LEGISLATION

Information gathered from the NWWBI is used as a resource to prove compliance with Element 21 of DWQMS “Continual Improvement” and Section 4.3.3 of ISO 14001 “Objective, Targets and Programs.”

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4. ANALYSIS The Min-Max Graphs from 2013 data submission have been attached as Appendix B for your review. These graphs show how Collingwood has trended since 2009. In general, we can see that Collingwood often ranks around the median, in all facets (treatment and distribution operations, cost of production, labour force). We are close to the minimum within water quality measures. There are no categories where Collingwood is a maximum. We have included staff comments on the results where applicable (anomalies, changes in operation, etc). 288 Group Graphs were also prepared which shows how Collingwood compares to other member municipalities. As these graphs show each individual municipality’s data they are considered confidential. These results however, are used extensively by staff in the pursuit of greater efficiencies and best practices. We would like to note that data has been submitted for Wastewater Treatment and Collection since 2013 (2012 data). Since completing two iterations, Wastewater Treatment has refined how and what data is collected for the Wastewater KPIs so that future information will be more reflective of comparisons. While Treatment has been able to complete their data submission and has found the results to be beneficial, Wastewater Collection has not. Due to the nature of sewer work being split amongst other Public Works functions, the tracking of wastewater collection data is difficult to obtain. Management has decided to continue with Wastewater Treatment in 2016 and leave Wastewater Collection until such a time that more accurate data can be submitted. 5. EFFECT ON TOWN FINANCES

The cost for a municipality to participate in NWWBI is $36,000 annually. Collingwood however is given a 50% discount on the total cost as we conduct our own data collection. Our decision to eliminate Wastewater Collection data will result in the total cost in 2016 being $11,340. This cost will be split proportionately between the Water and Wastewater Treatment 2016 operating budgets.

Resource 1 2013 Min-Max Graphs

• Water Utility • Water Distribution • Water Treatment • Wastewater Treatment


6. APPENDICES & OTHER RESOURCES

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SIGNATURES

Submitted by: Department head: Peggy Slama Brian MacDonald Chief Operating Officer (Acting) Manager of Water Services

Director of Engineering

Town of Collingwood Town of Collingwood

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STAFF REPORT


September 1, 2015





Subject: ISO 14001 Accreditation & Committee DWQMS Training

1. BACKGROUND

In 1999, a local industry was charged for violating the municipal sewer bylaw. During this time it was also anticipated that the Ministry of the Environment would be releasing a regulation mandating a Management System for water systems. While the details on what that regulation would look like were not clear it was suspected that there would be a strong environmental aspect. With this in mind Town Staff and Council opted to be proactive and use the fines collected to develop an Environmental Management System

PURPOSE The purpose of this report is to provide the Environmental Services Standing Committee with information on ISO 14001 in order that it may recommend to Council to not pursue accreditation effective immediately.

RECOMMENDATION: THAT the Committee receive the Drinking Water Quality Management System training; AND THAT Council support staff to continue operations at the R.A.B Filtration Plant under ISO 14001 principals; AND THAT Council authorize staff to not pursue ISO 14001 reaccreditation.

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(EMS) with a goal of minimizing the impact water and wastewater production has on the environment. ISO 14001 was selected as the EMS guideline and water began the accreditation process of the R.A.B Filtration Plant in 2001. The Wastewater Treatment Plant did not follow through on accreditation. The recent BMA Operational review of the Water Wastewater departments noted “ISO certification is also discretionary whereas DWQMS is mandatory. Satisfying both sets of requirements is not necessarily required (i.e. there is over compliance resulting in additional staff time that could be utilized for other more critical functions)”. 2. INPUT FROM OTHER SOURCES

Department Heads reviewed this report at their regular meeting on Tuesday September 1, 2015 and the report was recommended to proceed to the Environmental Services Standing Committee. The National Water and Wastewater Benchmarking Initiative (NWWBI) has completed a brief survey to determine which members follow an ISO model. Of the forty municipalities surveyed, only eight follow an ISO model. All of those that do follow a model, with the exception of Collingwood, are large municipalities and the standard applies to the entire community not just water or wastewater treatment. 3. APPLICABLE POLICY OR LEGISLATION

Quality Management System (QMS) There is not a legal requirement to be ISO 14001 certified

4. ANALYSIS

We began to follow an EMS prior to the mandated implementation of a Drinking Water Quality Management System (DWQMS). DWQMS follows many of the same principals as ISO 14001 and in many cases is a direct duplication. Staff would like to continue operating under ISO 14001 principals as these are entrenched in our overall Quality Management System and provide guidelines to ensure that our operations continue to have minimal environmental impact. It is staff’s recommendation however, to cease the accreditation process effective immediately to eliminate the need for the annual external audit, the next of which is scheduled for November 2015. In order to maintain ISO 14001 accreditation an external audit is conducted annually. Every three years this audit serves as a reaccreditation or reassessment process; our most recent reaccreditation was 2015. There is both a direct cost to have these audit complete as well as indirect costs in the form of staff resources.

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One of the requirements of ISO 14001 accreditation is to prove continual improvement in the form of reducing the impact your product has on the environment. Energy use is the greatest environmental impact of water production. The R.A.B is as energy efficient as can be without drastically changing processes and equipment which, at this time, is not be financially viable. ISO has announced that changes to 14001 will be released in September 2015. It is not clear what these changes will be, nor how they may affect the R.A.B, however we expect that they will require greater proof of continual improvement. Again, without a significant investment in process changes or equipment we may not be able to meet the requirements. 5. EFFECT ON TOWN FINANCES

By eliminating the accreditation process the Town will see a savings of approximately $5,000 a year which is the cost of third-party internal and external audits. We will also see indirect savings in the form of staff time to manage the audits and accreditation.

Resource Water Management System Awareness Training – Slide deck

SIGNATURES Submitted by: Department head: Peggy Slama Brian MacDonald

Chief Operating Officer (Acting) Manager of Water Services




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Environmental Services Standing Committee Awareness Training

September 15, 2015

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What is a MS? A Management System (MS) is a plan or manual that encompasses all operational planning and activities by giving due attention to product quality and the environment.

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Collingwood’s MS

MS

ISO 14001 DWQMS

Quality focused Environment focused

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ISO 14001 R.A.B Water Filtration Plant has been ISO 14001 certified since 2002

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Policy ISO 14001 Model

•Environmental Policy

Planning

•Environmental Aspects •Legal & Other Requirements •Objectives & Targets •Environmental Management Programs

Implementation & Operation •Structure & Responsibility •Training, Awareness & Competence •Communication •EMS Documentation •Document Control •Operational Control •Emergency Preparedness & Response

Checking/Corrective Action

•Monitoring & Measurement •Non-conformance & Corrective and Preventative Action •Records •EMS Audit

Management Review

Continual Improvement

•Management Review

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DWQMS Drinking Water Quality Management System (DWQMS) is mandated through the Safe Drinking Water Act (2002)

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DWQMS Model

Plan/Do

Check Improve

•General Requirements •Quality Management System Policy •Commitment & Endorsement •QMS Representative •Document & Record Control •Drinking Water System Description •Risk Assessment •Risk Assessment Outcomes •Organizational Structure, Roles, Responsibilities & Authorities •Competencies •Personnel Coverage •Communications •Essential Supplies & Services •Review & Provision of Infrastructure •Infrastructure Maintenance, Rehabilitation & Renewal •Sampling, Testing & Monitoring •Measurement & Recording Equipment Calibration & Maintenance •Emergency Management

•Internal Audits •Management Review

•Continual Improvement

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Intelex

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Management System Policy Statement Acts as the driver of the QMS Demonstrates the Operating Authority’s assurance

that quality management and environmental performance is important in their management and operation of the drinking water system.

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Operational Plan/Manual A requirement of Safe Drinking Water Act, DWQMS

and ISO 14001 Outlines the direction of each element Directs the reader to more detailed Standard

Operating Procedures (SOP) or Management System Forms (MSF)

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Document Control All documents are electronically controlled via Intelex Only current versions accessible to all staff

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System Description Detailed description of processes and components Annual review Includes common event-driven fluctuations Includes operational challenges and threats Includes a process flow chart

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Risk Assessment & Environmental Aspects •Identify potential hazardous events and the environmental impacts

Identify

•Assess the risk associated with a hazardous event •The team ranks the event to the associated risk and environmental impact •Verify at least once a year the validity of the assumptions used in the risk assessment

Assess

•Identify control measures to address the potential hazards •Identify Critical Control Points (CCP) and Critical Control Limits (CCL) •Identify environmental objectives and targets •Consider reliability and redundancy of equipment and new or modified activities, products or services.

Control Measures

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Roles & Responsibilities Defines who does what, when and how Owner

Operating Authority

Top Management

HR MS System Coordinator

CFO

MS Representative

OROs

Operators Admin. Staff Customer Service/Stores

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Competence Awareness and Training All staff must be trained on the Management System Operators must complete mandatory training

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Personnel Coverage Sufficient personnel meeting identified competencies

are available for duties that directly affect drinking water quality

Competent and qualified!

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Communication Describes how relevant aspects of the QMS are

communicated between Top Management and: a) the Owner, b) Operating Authority personnel, c) Suppliers, and d) The public

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Essential Supplies and Services Procedure in place to ensure that supplies and

services for the drinking water system are effectively managed to avoid risk that may affect quality or the environment.

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Review & Provision of Infrastructure Annual review of the adequacy of the infrastructure

necessary to operate and maintain the system Done through review of: Financial Plan Asset Management Plan Master Servicing Plan Distribution Hydraulic Model

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Infrastructure Maintenance, Rehabilitation & Renewal Outlines the process of managing the maintenance,

rehabilitation and renewal of the system infrastructure Annual review of the Water and Wastewater Rate

Study & Budgets Annual review of GIS data

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Sampling, Testing and Monitoring Ensures compliance with requirements for a Large

Municipal Residential System Samples tested on site and sent to accredited

laboratory

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Monitoring & Measurement Equipment Calibration Ensure equipment is maintained and calibrated to

deliver accurate measurement Completed by a Third party

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Emergency Response & Preparedness Schedule Through Risk Assessment, identify potential

emergency situations or service interruptions that may result in the inability to maintain a supply of safe drinking water or could have detrimental affects on the environment and,

Detail the responses to these emergencies

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Audits Performed to verify conformance of the Management

System and to identify discrepancies Internal Audit External Audit Non-Conformance, Corrective & Preventative Actions

Procedure

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Management Review Conducted annually by the Management Review

Committee Used to evaluate the continuing suitability, adequacy

and effectiveness of the Management System Results from the Management Review used in the

budget process

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Continual Improvement Always room for improvement… From all levels: Audits Management Review Staff Suggestions

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Standing Committee Responsibilities of Committee: a) Ensure the municipal residential drinking water

system is operated by an accredited Operating Authority,

b) Endorse the Operational Plan, c) Provide direction and guidance to the MS

Coordinator

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Final thoughts… QMS training as compliment to Standard of Care

training Increased knowledge = due diligence Staff in place to ensure compliance

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STAFF REPORT


September 8, 2015





Subject: Environmental Services: Wastewater Treatment Operations

1. BACKGROUND

As an introduction to Environmental Services, we have provided the committee with an overview of operations within the Wastewater Treatment Department. This report is not meant to be an inclusive listing of all wastewater treatment operations but rather a summary of key areas. It is hoped that this will assist the Standing Committee, as the Operating Authority and Owner, in making decisions regarding Collingwood’s Wastewater Treatment system. 2. INPUT FROM OTHER SOURCES

Department Heads reviewed this report at their regular meeting on Tuesday September 8, 2015 and the report was recommended to proceed to the Environmental Services Standing Committee.

PURPOSE The purpose of this report is to provide the Standing Committee with background on the Environmental Services: Wastewater Treatment Operations.

RECOMMENDATION: THAT Council receive Staff Report ES2015-08 entitled “Environmental Services: Wastewater Treatment Operations.”

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3. APPLICABLE POLICY OR LEGISLATION

N/A

4. ANALYSIS

N/A 5. EFFECT ON TOWN FINANCES

N/A

Appendix A Environmental Services: Wastewater Treatment Operations

SIGNATURES

Submitted by: Department Head: Peggy Slama Brian MacDonald Chief Operating Officer (Acting) Manager of Water Services




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Environmental Services Wastewater Treatment Operations

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Wastewater Operations

Page 1 of 10

Table of Contents Introduction .................................................................................................................................................. 2 Regulatory/Legislative Requirements ..................................................................................................... 2 Events & Dates of Importance ................................................................................................................. 3 Structure ...................................................................................................................................................... 3 The Facility .................................................................................................................................................. 4 Wastewater Treatment .............................................................................................................................. 4

Operations ........................................................................................................................................... 5 Human Resources ............................................................................................................................. 6

Management/Compliance/Administrative ............................................................................................... 7 Operations ........................................................................................................................................... 7 Human Resources ............................................................................................................................. 7

Contracts ..................................................................................................................................................... 8 Clearview ................................................................................................................................................. 8

Human Resources ............................................................................................................................. 8 Meaford .................................................................................................................................................... 8

Human Resources ............................................................................................................................. 8 Conservation ............................................................................................................................................... 9

Energy Conservation & Demand Management Plan ........................................................................ 9 Cogeneration........................................................................................................................................... 9 PyroBioMethane Demonstration Site .................................................................................................. 9

Other .......................................................................................................................................................... 10 National Water and Wastewater Benchmarking Initiative .............................................................. 10

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Introduction The purpose of this document is to provide the Environmental Services Standing Committee with an overview of the Wastewater Treatment Department. This report is not meant to be an inclusive listing of all wastewater treatment operations but rather a summary of key areas. It is hoped that this will assist the Standing Committee, as the Operating Authority and Owner, in their responsibility to make decisions regarding Collingwood’s Wastewater Treatment System.

Regulatory/Legislative Requirements Wastewater treatment must follow legislative requirements set by such parties as the Ministry of the Environment and Climate Change (MOECC), Ministry of Energy, the Ministry of Transportation and the Ontario Water and Wastewater Certification Office. Some of these requirements are outlined below:

Environmental Compliance Approval The Wastewater Treatment Plant (WWTP) operates under an Environmental Compliance Approval (ECA), formerly known as a Certificate of Approval (CofA). The latest ECA was issued from the MOECC on December 17, 2003. The ECA is renewed with a major change in process or equipment. We are currently waiting on a new ECA that incorporates the cogeneration project; it is expected we will have this by the end of 2015 at which time we will advise the Committee.

Sewer Use By-law Sewer Use By-law 2009-118 was passed on November 30, 2009. The by-law outlines the Town’s responsibilities and those of the customer, as well as general information on the system for the public. Section 16 addresses Extra Strength Surcharge and Sanitary Discharge Agreements. An Extra Strength Surcharge Agreement is currently in place with one industry, which requires them to pay the Town based on the amount of Carbonaceous Biochemical Oxygen Demand (CBOD5) found in weekly samples. In 2014, $102,326.64 was generated from this Agreement.

Energy Conservation & Demand Management Plan Ontario Regulation 397/11 of the Green Energy Act requires that all Water and Wastewater facilities submit an Energy Conservation and Demand Management Plan with a goal of reducing energy consumption by 5% by 2017. We have already reached this goal but expect to see further drastic reductions through the cogeneration project. We are also required to submit our energy consumption annually to monitor compliance.

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Anticipated Regulation While the MOECC has guidelines for the treatment of wastewater, there is not a requirement for a Management System. With the provincial success of the Drinking Water Quality Management System (DWQMS), it is anticipated that the Ministry will develop a wastewater regulation in the near future. As a proactive measure we have been working to create a Quality Management System at the WWTP that will follow elements of DWQMS and ISO 14001. In this way, when a regulation is passed, the WWTP will already have processes in place to apply for accreditation.

Events & Dates of Importance The ECA and Ministry guidelines do require some reporting which must adhere to specific timelines. Some of the dates below will need to be considered during the creation of the Standing Committee’s meeting schedule.

Event Date Frequency Municipal Utility Monitoring Program Reports

Various Monthly

Wastewater Systems Effluent Regulation Reports

Various Quarterly

MOECC Inspection Various Annually Compliance Reports Spring Annually Operator License Renewals Various Every three years Energy Conservation & Demand Management Plan

Summer Every five years (updated data must be submitted annually)

National Pollutant Release Inventory Spring Annually Structure

In 2012, By-law 2012-096 transferred the governance of Wastewater Treatment to the former Collingwood Public Utilities Services Board (CPUSB). The Manager of Wastewater Treatment began reporting through the Chief Operating Officer (COO) to CPUSB. Wastewater Treatment operators remained employees of the Town and continued to deal with Town staff and follow Town policies. The dissolution of the CPUSB in 2015 has resulted in all Wastewater Treatment operations being directed to the Environmental Services Standing Committee. As a division of Public Works, Wastewater Collection has always remained a part of the Town and currently reports through the Development and Operations Services Standing Committee. Although Wastewater Treatment and Collection deal with the same product, the processes and operations of Water and Wastewater Treatment are more similar and both departments have mutually benefitted from sharing resources under the same structure.

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The Facility The WWTP utilizes a conventional activated sludge treatment process. The plant was first constructed in 1958 to provide primary treatment of the Town's domestic and industrial wastewater. The primary plant was first expanded in 1968 and secondary treatment was added in 1981. The rated flow capacity is 25,548 m3 /day with a peak flow rate of 60,900 m3/day. Over 5,905,000m3 of sanitary waste was treated in 2014.

Wastewater Treatment Headworks Sewage from the collection system and septic haulage trucks meet in a combined wet well. A bar screen removes all paper products and large debris. Sewage is then fed to three (3) influent pumps where is it high lifted to two (2) grit separators where any heavy readily settable material is removed. Sewage enters three (3) primary clarifiers, consisting of two (2) main collectors and one (1) end collector. The primary clarifier allows for gravity to settle out any more debris or solids that will settle to the bottom sending it to the primary digester. Sewage then enters two (2) aerator tanks, each of which contain three (3) cells responsible for removing nitrogen and activating bugs. Sewage then enters two (2) secondary clarifiers each containing two (2) sets of collectors. Mixed liquor removed from the aeration tank is fed into the secondary clarifiers and alum is added to help settle sludge. From this point two distinct paths are followed:

Final Effluent Final effluent follows over weirs and is channelled to the ultraviolet (UV) train for disinfection. The UV system consists of two (2) banks of five (5) modules with each module have six (6) UV bulbs. UV disinfection distorts the genetic makeup of pathogens making them inactive and unable to reproduce. Water flows to the effluent channel where it is monitored for Dissolved Oxygen (DO), Total Suspended Solids (TSS) and pH levels before being and measured for flow. The final effluent flows to Georgian Bay through an outfall pipe that discharges into the harbour at the foot of the wastewater plant property. Sludge The Return Activated Sludge (RAS) from the aeration tank is pumped by two (2) Archemedes screw pumps. These pumps can move up to 12,000 m3 of RAS per day. The screw pumps return most of the RAS to the start of the process at the aeration tanks which feds the treatment process, allowing bugs to stay active and in sufficient numbers to treat the wastewater. A small portion of the RAS, approximately 300m3/day, is moved from the screw pumps to Dissolved Air Flotation (DAF) unit which thickens (dewaters) the sludge. Polymer is added to help the sludge float to the surface and approximately 35m3 of thickened sludge (TWAS) is skimmed and pumped to the primary digester, while the remaining 265m3/day supernate water is pumped back to the primary clarifier.

Sludge Digestion

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The sludge from both the primary clarifiers and the TWAS from the DAF unit are pumped to two (2) primary digesters each with a capacity of 1,200m3. A boiler keeps the sludge heated to 35oC to produce a colony of “bugs” that are anaerobic (no oxygen) to further stabilize the sludge. This produces methane gas which is burned through the flare. Overflow from the primary digesters (which is designed to be relatively constant) follows to digester #3 where it undergoes further anaerobic digestion and is then manually pumped to digester #4 which is an aerobic digester. At this stage the sludge is stabilized and ready for land application. A contracted haulage company removes approximately 25,000 m3 of sludge from the plant annually and deposits it to the Town’s owned or rented lagoons. The haulage company empties the lagoons in the early summer and fall by spreading sludge to agricultural lands. Operations

Testing, Sampling, Monitoring Wastewater Treatment monitoring requirements are specified under condition #9 (3) of the ECA. 24 hour composite samples of raw sewage and final effluent are collected and analyzed by the Lab Technician/Operator ensuring all samples remain within the guidelines. The results of these samples indicate the effectiveness of the treatment process and help identify problems quickly. Weekly samples are also sent to an accredited laboratory and the results are reported through the Municipal Utility Monitoring Program forms which are used in generating the annual plant performance report.

Maintenance Extensive daily and monthly preventative maintenance is performed on all equipment and appurtenances used to ensure proper operation. Some examples of planned maintenance would include the cleaning and inspection of primary and secondary clarifiers, generator testing and cleaning digesters. A preventive maintenance program has been implemented using software designed by Beach 1 Electric that indicates for the Operators tasks that need to be completed. Some maintenance is contracted to a third party, including electrical inspections, diesel generator maintenance and the calibration of all flow, pressure and level transmitters.

Rounds Although classified as part of the Wastewater Collection system, Treatment Operators conduct rounds at all seven (7) of the wastewater pumping stations; Minnesota Street, St. Clair St., Paterson Street, Cranberry Trail and Black Ash Creek, Pretty River Estates and Silver Glen. Each site is visited every three (3) times per week. Operators check and record information from all monitoring devices and conduct preventative maintenance duties. Operators possess collection licenses to do this work.

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Human Resources There are seven (7) Operators employed at the Wastewater Treatment Plant:

Operator (x6) Operators are responsible for the effective maintenance and repair of the WWTP ensuring that all operations are in compliance with legislation, guidelines and policies. Operators are responsible for monitoring the treatment process and making minor or major adjustments to operations to ensure each step in the process is working properly. Two (2) operators hold a Level 4 license, two (2) hold a Level 3 license and two (2) hold Level 2. Five of the operators also hold a wastewater collection license to maintain the pump stations which are part of the collection system.

An Operator is all on-call 24/7 and these shifts are rotated by the operators. During an on-call rotation, the on-call operator responds to emergency calls or system alarms, and must attend the plant on Saturdays and Sundays to conduct the daily rounds. During this weekend shift, the Operator is paid straight time for eight hours per day. If an emergency occurs in Collingwood during this 8 hour time, the Operator is not granted overtime pay.

Lab Technician/Operator (x1) The Lab Technician/Operator is responsible to collect, test and record sample results of in-plant and industry samples, complete and maintain lab records, order laboratory supplies and equipment, conduct calibration of lab equipment, and perform lab maintenance. The Lab Technician/Operator holds a Level 3 license. It should be noted that although one Operator is primarily responsible for lab tasks, several Operators are qualified to perform lab duties as required. Wastewater Treatment Operators are not members of a union.

Overtime There were 103.5 overtime hours accumulated in 2014. As per employment contacts, overtime is paid at time and half with the option of banking earned overtime up to a maximum of forty (40) hours in each calendar year in lieu of payment.

Succession Forecasting In 2015, two long standing employess retired, and two junior operators were hired to address further succession planning. Impending possible retirements are not an issue at this time.

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Management/Compliance/Administrative Operations Compliance and Administrative support for the Wastewater Treatment department also provide these duties for the Water Department. All Management, Compliance and Administrative roles function directly under the Chief Operating Officer.

Human Resources

Chief Operating Officer The Chief Operating Officer (COO) is responsible for the administration and management of the Town’s Wastewater Treatment department and contracted facilities. This position is the direct liaison with the Ministry of the Environment and Climate Change, Director of Public Works, Committee and Council. The COO is responsible for establishing and following the budgets of the Wastewater Treatment department and ensuring the rates established through the Water and Wastewater Rate Study result in financial stability. The COO develops operational policies with the Manager of Wastewater, ensuring all planned and unplanned maintenance and operational duties are completed within the requirements. The COO position includes overseeing the Water department as well.

Manager of Wastewater The Manager of Wastewater, as Overall Responsible Operator (ORO), is responsible for the day to day operation and maintenance of the Wastewater Treatment Plant, pumping stations, sludge transfer facilities (owned and leased) and contracted operations. While the majority of the plant’s process train, equipment status and outputs are monitored by computer, the Manager of Wastewater will monitor the daily operation to verify plant performance. The Manager of Wastewater will liaise with the Compliance Officer in the development and implementation of Standard Operating Procedures and other policies and procedures as deemed necessary for the overall function and safety of the Treatment Plant. The Manager of Wastewater holds a Level 3 Treatment and Level 2 Collection license.

Compliance Officer The Compliance Officer is currently working with the Manager of Wastewater Treatment to develop a Quality Management System (QMS) that mirrors that of the water department. Once created, the Compliance Officer will be responsible for implementing and maintaining the QMS as well as providing training to all Operators.

Executive Assistant The Executive Assistant to the Chief Operating Officer is also responsible for many administrative duties for the Wastewater Treatment department. Some of these duties include

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preparation of procurement documents, sourcing training for Operators, assisting the Compliance Officer with documentation, researching and annual reporting, as well as preparing content for Standing Committees and Council.

Succession Forecasting There will be a possible retirement within Compliance in the next two years.

Contracts

Clearview The Town has been operating wastewater facilities for the Township of Clearview since 2000. The most recent Agreement expired on December 31, 2014 and over the past six months staff has been working with Clearview representatives to revise the contract. In June 2015, Collingwood Council enacted a by-law to authorize the execution of the revised Agreement. The agreement is signed by both parties and is retroactive to the beginning of 2015 ending on December 31, 2018. This contract is expected to generate $310,000 in revenue this year.

Human Resources The contract includes one Operator to operate the Creemore Sewage Treatment Plant (STP) full time (40 hours/week) and one operator to work 20 hours/week and conduct routine rounds at the Stayner STP and Clearview pump stations.

Meaford Collingwood is in the ninth (9) year of a fifteen (15) year contract to operate the wastewater treatment facilities and water supply and distribution facilities at the 4th Cdn Div TC Meaford.

Human Resources

Operator - Contract The Town has one contracted Operator who is responsible for the operation and maintenance of Canadian Forces Base Meaford. This Operator holds licenses in water treatment, water distribution, wastewater treatment and wastewater collection. The operator works full time at the Meaford facilities, splitting his time between water and wastewater as needed to meet all regulations of both systems. This Operator is considered a Water Department employee.

Water Treatment Operators are also required under the contract to attend the facility at least once per week as well as provide back up support during an emergency or when the Contract Operator is unavailable to work.

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Conservation

Energy Conservation & Demand Management Plan Adhering to the requirements of Ontario Regulation 397/11 of the Green Energy Act, we are aiming to exceed the Ministry’s expectations by successfully implementing energy saving initiatives and continuing to look for ways to reduce our greenhouse gas emissions. As a requirement of the Green Energy Act, in July 2014 we reported our 2012 energy consumption information and presented our Energy Conservation & Demand Management Plan 2014-2019. We spent $1,216,868.86 in 2014 on 9,313,811.35 kWh of energy at 12 building and facilities, related to the treatment or pumping of water or sewage. Our target reduction of energy consumption in all water and wastewater facilities is 5% by 2017.

Cogeneration In 2013 a Cogeneration Plant Feasibility study was conducted. The study identified the potential for a 65 kilowatt (kW) gas turbine cogeneration plant. The conversion will provide both electricity and heating capability to the Wastewater Treatment Plant. The new cogeneration plant will generate electricity, using what was previously a waste by-product, reducing the amount of energy purchased while the waste heat created from the electricity generation will be used to supplement heating the facility. In addition to the cogeneration facility contributing to lower operating costs, a positive side effect is the reduction of the plant’s carbon emissions as a result of using the greenhouse gases created by the plants digester to fuel the generator as opposed to those gases being exhausted to the environment. The design work for this project has been completed however we are currently waiting on a new ECA, expected later this year, before work can begin.

PyroBioMethane Demonstration Site PyroBioMethane (PBM) technology converts biosolids into increased renewable energy generation and a valuable fertilizer product. The premise of the PBM technology developed by Anaergia Inc. is to treat the liquid biosolids through an added process train, in which the biosolids will be initially dewatered into a biosolids cake, and then moisture reduced further by evaporation in a thermal dryer. Following, the final step of the PBM process utilizes “Pyrolysis”, where the biosolids is treated thermally to further reduce its mass and separate organic rich pyrolysis condensate. The resultant solid is called “Biochar” and this product contains all of the nutrients which were present in the biosolids, as well as a large fraction of the carbon. As such, the Biochar has a high potential value as an organic fertilizer. The Pyrolysis condensate carries a high energy value, and is in fact digestable in the wastewater treatment plant digesters. By returning this oil, the biogas production in the wastewater treatment plant can be increased by up to 25%. In 2014, the Town submitted a letter of support for a funding application to complete a pilot project which would see Collingwood as the first demonstration site in Canada. The Town committed to $935,066 or 15% of the total project costs, in addition to $300,206 in-kind. As this project would significantly reduce our haulage expenses which cost approximately $600,000 per year, the return on investment is favorable. Staff have asked Anaergia to attend a future

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Committee meeting and provide an update on the project as well as work with staff to make a recommendation on how to move forward.

Other

National Water and Wastewater Benchmarking Initiative Since 2011 Collingwood has been a participant in the National Water and Wastewater Benchmarking Initiative (NWWBI) facilitated by Aecom. This project uses Key Performance Indicators relevant to water and wastewater industries to compare and rank how a municipality is performing. Unlike benchmarking initiatives such as the BMA, NWWBI aims to normalize data and account for economies of scale, in this way the effort of Collingwood can be compared to those of large municipalities such as Peel, Halton, Calgary and Vancouver. Currently over 53 of Canada’s most progressive municipalities are taking part in the project and Collingwood is the smallest system represented. Wastewater Treatment began submitting data two years ago. The results, as shown in Staff Report ES2015-06, indicate Wastewater Treatment operations to be below or at the median in most categories. Wastewater Treatment is also beginning to utilize the data available through task forces and surveys. It is hoped that the Manager of Wastewater Treatment will also be able to attend the annual workshop to discuss emerging issues and glean from each other’s experience.

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Environmental Services Wastewater Treatment Operations

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Table of Contents Introduction .................................................................................................................................................. 2 Regulatory/Legislative Requirements ..................................................................................................... 2 Events & Dates of Importance ................................................................................................................. 3 Structure ...................................................................................................................................................... 3 The Facility .................................................................................................................................................. 4 Wastewater Treatment .............................................................................................................................. 4

Operations ........................................................................................................................................... 5 Human Resources ............................................................................................................................. 6

Management/Compliance/Administrative ............................................................................................... 7 Operations ........................................................................................................................................... 7 Human Resources ............................................................................................................................. 7

Contracts ..................................................................................................................................................... 8 Clearview ................................................................................................................................................. 8

Human Resources ............................................................................................................................. 8 Meaford .................................................................................................................................................... 8

Human Resources ............................................................................................................................. 8 Conservation ............................................................................................................................................... 9

Energy Conservation & Demand Management Plan ........................................................................ 9 Cogeneration........................................................................................................................................... 9 PyroBioMethane Demonstration Site .................................................................................................. 9

Other .......................................................................................................................................................... 10 National Water and Wastewater Benchmarking Initiative .............................................................. 10

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Introduction The purpose of this document is to provide the Environmental Services Standing Committee with an overview of the Wastewater Treatment Department. This report is not meant to be an inclusive listing of all wastewater treatment operations but rather a summary of key areas. It is hoped that this will assist the Standing Committee, as the Operating Authority and Owner, in their responsibility to make decisions regarding Collingwood’s Wastewater Treatment System.

Regulatory/Legislative Requirements Wastewater treatment must follow legislative requirements set by such parties as the Ministry of the Environment and Climate Change (MOECC), Ministry of Energy, the Ministry of Transportation and the Ontario Water and Wastewater Certification Office. Some of these requirements are outlined below:

Environmental Compliance Approval The Wastewater Treatment Plant (WWTP) operates under an Environmental Compliance Approval (ECA), formerly known as a Certificate of Approval (CofA). The latest ECA was issued from the MOECC on December 17, 2003. The ECA is renewed with a major change in process or equipment. We are currently waiting on a new ECA that incorporates the cogeneration project; it is expected we will have this by the end of 2015 at which time we will advise the Committee.

Sewer Use By-law Sewer Use By-law 2009-118 was passed on November 30, 2009. The by-law outlines the Town’s responsibilities and those of the customer, as well as general information on the system for the public. Section 16 addresses Extra Strength Surcharge and Sanitary Discharge Agreements. An Extra Strength Surcharge Agreement is currently in place with one industry, which requires them to pay the Town based on the amount of Carbonaceous Biochemical Oxygen Demand (CBOD5) found in weekly samples. In 2014, $102,326.64 was generated from this Agreement.

Energy Conservation & Demand Management Plan Ontario Regulation 397/11 of the Green Energy Act requires that all Water and Wastewater facilities submit an Energy Conservation and Demand Management Plan with a goal of reducing energy consumption by 5% by 2017. We have already reached this goal but expect to see further drastic reductions through the cogeneration project. We are also required to submit our energy consumption annually to monitor compliance.

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Anticipated Regulation While the MOECC has guidelines for the treatment of wastewater, there is not a requirement for a Management System. With the provincial success of the Drinking Water Quality Management System (DWQMS), it is anticipated that the Ministry will develop a wastewater regulation in the near future. As a proactive measure we have been working to create a Quality Management System at the WWTP that will follow elements of DWQMS and ISO 14001. In this way, when a regulation is passed, the WWTP will already have processes in place to apply for accreditation.

Events & Dates of Importance The ECA and Ministry guidelines do require some reporting which must adhere to specific timelines. Some of the dates below will need to be considered during the creation of the Standing Committee’s meeting schedule.

Event Date Frequency Municipal Utility Monitoring Program Reports

Various Monthly

Wastewater Systems Effluent Regulation Reports

Various Quarterly

MOECC Inspection Various Annually Compliance Reports Spring Annually Operator License Renewals Various Every three years Energy Conservation & Demand Management Plan

Summer Every five years (updated data must be submitted annually)

National Pollutant Release Inventory Spring Annually Structure

In 2012, By-law 2012-096 transferred the governance of Wastewater Treatment to the former Collingwood Public Utilities Services Board (CPUSB). The Manager of Wastewater Treatment began reporting through the Chief Operating Officer (COO) to CPUSB. Wastewater Treatment operators remained employees of the Town and continued to deal with Town staff and follow Town policies. The dissolution of the CPUSB in 2015 has resulted in all Wastewater Treatment operations being directed to the Environmental Services Standing Committee. As a division of Public Works, Wastewater Collection has always remained a part of the Town and currently reports through the Development and Operations Services Standing Committee. Although Wastewater Treatment and Collection deal with the same product, the processes and operations of Water and Wastewater Treatment are more similar and both departments have mutually benefitted from sharing resources under the same structure.

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The Facility The WWTP utilizes a conventional activated sludge treatment process. The plant was first constructed in 1958 to provide primary treatment of the Town's domestic and industrial wastewater. The primary plant was first expanded in 1968 and secondary treatment was added in 1981. The rated flow capacity is 25,548 m3 /day with a peak flow rate of 60,900 m3/day. Over 5,905,000m3 of sanitary waste was treated in 2014.

Wastewater Treatment Headworks Sewage from the collection system and septic haulage trucks meet in a combined wet well. A bar screen removes all paper products and large debris. Sewage is then fed to three (3) influent pumps where is it high lifted to two (2) grit separators where any heavy readily settable material is removed. Sewage enters three (3) primary clarifiers, consisting of two (2) main collectors and one (1) end collector. The primary clarifier allows for gravity to settle out any more debris or solids that will settle to the bottom sending it to the primary digester. Sewage then enters two (2) aerator tanks, each of which contain three (3) cells responsible for removing nitrogen and activating bugs. Sewage then enters two (2) secondary clarifiers each containing two (2) sets of collectors. Mixed liquor removed from the aeration tank is fed into the secondary clarifiers and alum is added to help settle sludge. From this point two distinct paths are followed:

Final Effluent Final effluent follows over weirs and is channelled to the ultraviolet (UV) train for disinfection. The UV system consists of two (2) banks of five (5) modules with each module have six (6) UV bulbs. UV disinfection distorts the genetic makeup of pathogens making them inactive and unable to reproduce. Water flows to the effluent channel where it is monitored for Dissolved Oxygen (DO), Total Suspended Solids (TSS) and pH levels before being and measured for flow. The final effluent flows to Georgian Bay through an outfall pipe that discharges into the harbour at the foot of the wastewater plant property. Sludge The Return Activated Sludge (RAS) from the aeration tank is pumped by two (2) Archemedes screw pumps. These pumps can move up to 12,000 m3 of RAS per day. The screw pumps return most of the RAS to the start of the process at the aeration tanks which feds the treatment process, allowing bugs to stay active and in sufficient numbers to treat the wastewater. A small portion of the RAS, approximately 300m3/day, is moved from the screw pumps to Dissolved Air Flotation (DAF) unit which thickens (dewaters) the sludge. Polymer is added to help the sludge float to the surface and approximately 35m3 of thickened sludge (TWAS) is skimmed and pumped to the primary digester, while the remaining 265m3/day supernate water is pumped back to the primary clarifier.

Sludge Digestion

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The sludge from both the primary clarifiers and the TWAS from the DAF unit are pumped to two (2) primary digesters each with a capacity of 1,200m3. A boiler keeps the sludge heated to 35oC to produce a colony of “bugs” that are anaerobic (no oxygen) to further stabilize the sludge. This produces methane gas which is burned through the flare. Overflow from the primary digesters (which is designed to be relatively constant) follows to digester #3 where it undergoes further anaerobic digestion and is then manually pumped to digester #4 which is an aerobic digester. At this stage the sludge is stabilized and ready for land application. A contracted haulage company removes approximately 25,000 m3 of sludge from the plant annually and deposits it to the Town’s owned or rented lagoons. The haulage company empties the lagoons in the early summer and fall by spreading sludge to agricultural lands. Operations

Testing, Sampling, Monitoring Wastewater Treatment monitoring requirements are specified under condition #9 (3) of the ECA. 24 hour composite samples of raw sewage and final effluent are collected and analyzed by the Lab Technician/Operator ensuring all samples remain within the guidelines. The results of these samples indicate the effectiveness of the treatment process and help identify problems quickly. Weekly samples are also sent to an accredited laboratory and the results are reported through the Municipal Utility Monitoring Program forms which are used in generating the annual plant performance report.

Maintenance Extensive daily and monthly preventative maintenance is performed on all equipment and appurtenances used to ensure proper operation. Some examples of planned maintenance would include the cleaning and inspection of primary and secondary clarifiers, generator testing and cleaning digesters. A preventive maintenance program has been implemented using software designed by Beach 1 Electric that indicates for the Operators tasks that need to be completed. Some maintenance is contracted to a third party, including electrical inspections, diesel generator maintenance and the calibration of all flow, pressure and level transmitters.

Rounds Although classified as part of the Wastewater Collection system, Treatment Operators conduct rounds at all seven (7) of the wastewater pumping stations; Minnesota Street, St. Clair St., Paterson Street, Cranberry Trail and Black Ash Creek, Pretty River Estates and Silver Glen. Each site is visited every three (3) times per week. Operators check and record information from all monitoring devices and conduct preventative maintenance duties. Operators possess collection licenses to do this work.

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Human Resources There are seven (7) Operators employed at the Wastewater Treatment Plant:

Operator (x6) Operators are responsible for the effective maintenance and repair of the WWTP ensuring that all operations are in compliance with legislation, guidelines and policies. Operators are responsible for monitoring the treatment process and making minor or major adjustments to operations to ensure each step in the process is working properly. Two (2) operators hold a Level 4 license, two (2) hold a Level 3 license and two (2) hold Level 2. Five of the operators also hold a wastewater collection license to maintain the pump stations which are part of the collection system.

An Operator is all on-call 24/7 and these shifts are rotated by the operators. During an on-call rotation, the on-call operator responds to emergency calls or system alarms, and must attend the plant on Saturdays and Sundays to conduct the daily rounds. During this weekend shift, the Operator is paid straight time for eight hours per day. If an emergency occurs in Collingwood during this 8 hour time, the Operator is not granted overtime pay.

Lab Technician/Operator (x1) The Lab Technician/Operator is responsible to collect, test and record sample results of in-plant and industry samples, complete and maintain lab records, order laboratory supplies and equipment, conduct calibration of lab equipment, and perform lab maintenance. The Lab Technician/Operator holds a Level 3 license. It should be noted that although one Operator is primarily responsible for lab tasks, several Operators are qualified to perform lab duties as required. Wastewater Treatment Operators are not members of a union.

Overtime There were 103.5 overtime hours accumulated in 2014. As per employment contacts, overtime is paid at time and half with the option of banking earned overtime up to a maximum of forty (40) hours in each calendar year in lieu of payment.

Succession Forecasting In 2015, two long standing employess retired, and two junior operators were hired to address further succession planning. Impending possible retirements are not an issue at this time.

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Management/Compliance/Administrative Operations Compliance and Administrative support for the Wastewater Treatment department also provide these duties for the Water Department. All Management, Compliance and Administrative roles function directly under the Chief Operating Officer.

Human Resources

Chief Operating Officer The Chief Operating Officer (COO) is responsible for the administration and management of the Town’s Wastewater Treatment department and contracted facilities. This position is the direct liaison with the Ministry of the Environment and Climate Change, Director of Public Works, Committee and Council. The COO is responsible for establishing and following the budgets of the Wastewater Treatment department and ensuring the rates established through the Water and Wastewater Rate Study result in financial stability. The COO develops operational policies with the Manager of Wastewater, ensuring all planned and unplanned maintenance and operational duties are completed within the requirements. The COO position includes overseeing the Water department as well.

Manager of Wastewater The Manager of Wastewater, as Overall Responsible Operator (ORO), is responsible for the day to day operation and maintenance of the Wastewater Treatment Plant, pumping stations, sludge transfer facilities (owned and leased) and contracted operations. While the majority of the plant’s process train, equipment status and outputs are monitored by computer, the Manager of Wastewater will monitor the daily operation to verify plant performance. The Manager of Wastewater will liaise with the Compliance Officer in the development and implementation of Standard Operating Procedures and other policies and procedures as deemed necessary for the overall function and safety of the Treatment Plant. The Manager of Wastewater holds a Level 3 Treatment and Level 2 Collection license.

Compliance Officer The Compliance Officer is currently working with the Manager of Wastewater Treatment to develop a Quality Management System (QMS) that mirrors that of the water department. Once created, the Compliance Officer will be responsible for implementing and maintaining the QMS as well as providing training to all Operators.

Executive Assistant The Executive Assistant to the Chief Operating Officer is also responsible for many administrative duties for the Wastewater Treatment department. Some of these duties include

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preparation of procurement documents, sourcing training for Operators, assisting the Compliance Officer with documentation, researching and annual reporting, as well as preparing content for Standing Committees and Council.

Succession Forecasting There will be a possible retirement within Compliance in the next two years.

Contracts

Clearview The Town has been operating wastewater facilities for the Township of Clearview since 2000. The most recent Agreement expired on December 31, 2014 and over the past six months staff has been working with Clearview representatives to revise the contract. In June 2015, Collingwood Council enacted a by-law to authorize the execution of the revised Agreement. The agreement is signed by both parties and is retroactive to the beginning of 2015 ending on December 31, 2018. This contract is expected to generate $310,000 in revenue this year.

Human Resources The contract includes one Operator to operate the Creemore Sewage Treatment Plant (STP) full time (40 hours/week) and one operator to work 20 hours/week and conduct routine rounds at the Stayner STP and Clearview pump stations.

Meaford Collingwood is in the ninth (9) year of a fifteen (15) year contract to operate the wastewater treatment facilities and water supply and distribution facilities at the 4th Cdn Div TC Meaford.

Human Resources

Operator - Contract The Town has one contracted Operator who is responsible for the operation and maintenance of Canadian Forces Base Meaford. This Operator holds licenses in water treatment, water distribution, wastewater treatment and wastewater collection. The operator works full time at the Meaford facilities, splitting his time between water and wastewater as needed to meet all regulations of both systems. This Operator is considered a Water Department employee.

Water Treatment Operators are also required under the contract to attend the facility at least once per week as well as provide back up support during an emergency or when the Contract Operator is unavailable to work.

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Conservation

Energy Conservation & Demand Management Plan Adhering to the requirements of Ontario Regulation 397/11 of the Green Energy Act, we are aiming to exceed the Ministry’s expectations by successfully implementing energy saving initiatives and continuing to look for ways to reduce our greenhouse gas emissions. As a requirement of the Green Energy Act, in July 2014 we reported our 2012 energy consumption information and presented our Energy Conservation & Demand Management Plan 2014-2019. We spent $1,216,868.86 in 2014 on 9,313,811.35 kWh of energy at 12 building and facilities, related to the treatment or pumping of water or sewage. Our target reduction of energy consumption in all water and wastewater facilities is 5% by 2017.

Cogeneration In 2013 a Cogeneration Plant Feasibility study was conducted. The study identified the potential for a 65 kilowatt (kW) gas turbine cogeneration plant. The conversion will provide both electricity and heating capability to the Wastewater Treatment Plant. The new cogeneration plant will generate electricity, using what was previously a waste by-product, reducing the amount of energy purchased while the waste heat created from the electricity generation will be used to supplement heating the facility. In addition to the cogeneration facility contributing to lower operating costs, a positive side effect is the reduction of the plant’s carbon emissions as a result of using the greenhouse gases created by the plants digester to fuel the generator as opposed to those gases being exhausted to the environment. The design work for this project has been completed however we are currently waiting on a new ECA, expected later this year, before work can begin.

PyroBioMethane Demonstration Site PyroBioMethane (PBM) technology converts biosolids into increased renewable energy generation and a valuable fertilizer product. The premise of the PBM technology developed by Anaergia Inc. is to treat the liquid biosolids through an added process train, in which the biosolids will be initially dewatered into a biosolids cake, and then moisture reduced further by evaporation in a thermal dryer. Following, the final step of the PBM process utilizes “Pyrolysis”, where the biosolids is treated thermally to further reduce its mass and separate organic rich pyrolysis condensate. The resultant solid is called “Biochar” and this product contains all of the nutrients which were present in the biosolids, as well as a large fraction of the carbon. As such, the Biochar has a high potential value as an organic fertilizer. The Pyrolysis condensate carries a high energy value, and is in fact digestable in the wastewater treatment plant digesters. By returning this oil, the biogas production in the wastewater treatment plant can be increased by up to 25%. In 2014, the Town submitted a letter of support for a funding application to complete a pilot project which would see Collingwood as the first demonstration site in Canada. The Town committed to $935,066 or 15% of the total project costs, in addition to $300,206 in-kind. As this project would significantly reduce our haulage expenses which cost approximately $600,000 per year, the return on investment is favorable. Staff have asked Anaergia to attend a future

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Committee meeting and provide an update on the project as well as work with staff to make a recommendation on how to move forward.

Other

National Water and Wastewater Benchmarking Initiative Since 2011 Collingwood has been a participant in the National Water and Wastewater Benchmarking Initiative (NWWBI) facilitated by Aecom. This project uses Key Performance Indicators relevant to water and wastewater industries to compare and rank how a municipality is performing. Unlike benchmarking initiatives such as the BMA, NWWBI aims to normalize data and account for economies of scale, in this way the effort of Collingwood can be compared to those of large municipalities such as Peel, Halton, Calgary and Vancouver. Currently over 53 of Canada’s most progressive municipalities are taking part in the project and Collingwood is the smallest system represented. Wastewater Treatment began submitting data two years ago. The results, as shown in Staff Report ES2015-06, indicate Wastewater Treatment operations to be below or at the median in most categories. Wastewater Treatment is also beginning to utilize the data available through task forces and surveys. It is hoped that the Manager of Wastewater Treatment will also be able to attend the annual workshop to discuss emerging issues and glean from each other’s experience.

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Environmental Services 2nd Quarter Water Services Financial Report- Tuesday September, 15, 2015-

Prepared under: Public Sector Accounting StandardsBy: Cindy Shuttleworth, BAccS, CPA, CGA CFO Collus PowerStream & Collingwood Public Utilities

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Table of Contents

Page

3 Statement of Financial Position

4 Income Statement (Budget and 5 Year History)

5 Variance Notes - Income Statement (Budget and 5 Year History) 6 Frozen Services Expenditures

7 Income Statement (Actual vs Budget & Prior Year) 8 Income Statement (Budget Remaining to Dec 31, 2015)

9 Income Statement (Budget Revisions - Final Business Plan)

10 Capital Budget Review

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December 2015 June 2015 December 2014 December 2013 December 2012 December 2011BUDGET YTD - unaudited AUDITED AUDITED AUDITED AUDITED

Cash and bank $3,537,489 $3,128,469 $2,187,399 $3,159,753 $0 $45,527 Accounts receivable 1,074,677 1,823,646 2,917,379 1,022,893 2,647,144 993,513 Unbilled revenue 378,014 368,794 368,794 415,600 397,869 332,197 Obligatory reserve funds 0 0 0 693,238 804,952 0 Total Financial Assets $4,990,180 $5,320,908 $5,473,572 $5,291,483 $3,849,965 $1,371,237

Bank Indebtedness 0 0 0 0 92,382 0 Demand Loan 0 0 0 0 0 339,544 Accounts payable and accruals 460,599 228,956 449,364 1,947,702 1,935,438 770,386 Current portion of Debentures 0 0 0 0 0 716,614 Filtration Plant Debenture 0 0 0 0 675,000 675,000 Southend Servicing Debenture 1,047,986 1,088,293 1,128,600 1,209,215 1,289,829 1,289,829 Discount on Debenture 0 0 0 0 0 (4,415) Debenture - Town of Collingwood 5,476,517 5,608,383 5,739,959 6,000,000 4,000,000 2,000,000 Obligatory reserve funds 605,544 252,007 252,007 0 0 430,388 Reserve for Source Protection 0 25,526 25,526 0 0 0 Employee future benefits 186,692 182,139 182,139 175,233 168,531 178,111 Total Liabilities $7,777,338 $7,385,304 $7,777,595 $9,332,149 $8,161,180 $6,395,456

NET DEBT ($2,787,158) ($2,064,395) ($2,304,024) ($4,040,666) ($4,311,215) ($5,024,220) Property, plant and equipment $30,673,384 $29,978,962 $30,543,842 $31,406,136 $31,602,874 $31,266,283 Inventory 125,436 106,165 122,377 101,556 102,806 92,827 Prepaid expenses 158,707 88,981 162,730 148,644 157,996 140,474 Total Non-Financial Assets $30,957,527 $30,174,107 $30,828,950 $31,656,335 $31,863,676 $31,499,584

ACCUMULATED SURPLUS $28,170,369 $28,109,712 $28,524,926 $27,615,670 $27,552,461 $26,475,365 ------------------------------------------------------------------------ SYSTEM BALANCE CHECK: ACCUMULATED SURPLUS Earned Surplus On Operations $4,849,643 $4,849,643 $4,440,696 $1,914,414 ($2,113,991) ($1,907,016) Investment in Tangible Capital Assets 23,675,283 23,675,283 24,196,921 25,638,046 28,589,256 28,325,931 Annual Surplus (deficit) (354,557) (415,214) (112,691) 63,209 1,077,196 56,450 Total Accumulated Surplus $28,170,369 $28,109,712 $28,524,926 $27,615,670 $27,552,461 $26,475,365 Variance

Prepared in accoradance with Public Sector Accounting Standards - effective January 1, 2009.The Public Sector Accounting Board (PSAB) issues standards and guidance with respect to matters of accounting in the public sector. PSAB issues such standards and guidance to serve the publicinterest by strengthening accountability in the public sector through developing, recommending and gaining acceptance of accounting and financial reporting standards of good practice.

Collingwood Public Utilities Service BoardStatement of Financial Position

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June 2015 June 2015 June 2014 June 2013 June 2012 June 2011BUDGET ACTUAL ACTUAL ACTUAL ACTUAL ACTUAL

Revenue Sale of water Residential 1) $1,576,129.82 $1,519,854.43 $1,537,687.63 $1,479,739.90 $1,379,789.12 $1,251,131.03 Commercial 2) 399,835.77 412,753.61 390,083.69 411,599.47 559,952.73 489,872.79 New Tecumseth 3) 529,171.98 574,132.14 543,324.28 515,891.75 466,081.54 493,572.50 Town of Blue Mountain 4) 114,504.53 30,300.09 111,711.74 258,149.37 242,556.65 241,086.47 Process 5) 56,138.97 48,209.98 59,093.66 69,029.56 59,606.72 74,361.80 2,675,781.07 2,585,250.25 2,641,901.00 2,734,410.05 2,707,986.76 2,550,024.59 Other revenue Hydrant maintenance 6) 0.00 0.00 74,400.00 74,400.00 63,000.00 57,000.00 Interest income 15,000.00 15,244.99 16,872.30 9,482.55 1,183.13 1,296.85 Water meters 27,000.00 15,502.66 8,825.00 14,335.00 34,250.00 18,592.00 Operations management fee - CFB Meaford 100,849.98 91,505.22 109,551.47 96,481.69 99,060.70 82,648.68 Operations management fee - Devils Glen 7) 50,449.98 44,315.99 51,490.05 48,293.97 54,387.90 51,407.35 Lease revenue (Collus) - Stewart Road Building 108,000.00 108,000.00 108,000.00 108,000.00 108,000.00 108,000.00 Lease revenue (Collus) - Computers 10,896.00 10,896.00 10,896.00 10,896.00 40,000.02 39,999.98 Water Connection Charges 18,450.00 16,934.53 11,162.23 29,873.52 20,770.80 10,031.64 Southend Servicing Special Charges 8) 0.00 0.00 44,713.98 44,713.98 44,713.98 0.00 Miscellaneous revenue 13,300.00 31,496.96 19,273.13 19,616.24 13,128.47 23,480.39 343,945.96 333,896.35 455,184.16 456,092.95 478,495.00 392,456.89 Total Revenue 9) 3,019,727.03 2,919,146.60 3,097,085.16 3,190,503.00 3,186,481.76 2,942,481.48 Expenses Water Treatment 10) 728,964.17 732,264.04 682,766.70 690,548.82 1,059,998.31 1,084,259.77 Water Distribution 11) 984,908.15 921,466.00 788,556.11 641,642.16 716,322.36 630,194.91 Administration Building 12) 204,155.34 221,839.30 195,322.15 200,848.22 108,000.00 99,999.98 Information Technology 101,013.79 81,024.02 70,776.68 81,343.50 0.00 0.00 Operations Supervision and Administration 13) 481,479.43 435,585.83 509,607.35 575,327.66 405,659.66 302,243.91 Customer billing and collection 14) 216,772.86 232,444.74 198,988.35 185,754.00 222,758.38 204,689.39 Burden 0.00 0.00 0.00 0.00 (1,000.80) (83.33) Waste Water Admin Fee 15) (189,398.52) (189,398.52) (92,389.50) 0.00 0.00 0.00 2,527,895.22 2,435,225.41 2,353,627.84 2,375,464.36 2,511,737.91 2,321,304.63 Amortization 830,479.98 830,479.98 790,992.42 799,500.00 774,996.36 991,807.56 Interest 72,676.48 72,948.09 76,336.10 55,660.99 86,212.45 118,240.78 3,431,051.68 3,338,653.48 3,220,956.36 3,230,625.35 3,372,946.72 3,431,352.97 Net Revenue (Expense) from Continuing Operations (411,324.65) (419,506.88) (123,871.20) (40,122.35) (186,464.96) (488,871.49) Other Municipal Special Charges 0.00 0.00 0.00 95,054.50 0.00 0.00 Contributed tangible capital assets 0.00 4,292.95 1,617.84 2,979.30 19,175.74 (13,573.37) 0.00 4,292.95 1,617.84 98,033.80 19,175.74 (13,573.37) Annual Surplus (Deficit) 16) (411,324.65) (415,213.93) (122,253.36) 57,911.45 (167,289.22) (502,444.86)

Collingwood Public Utilities Service BoardIncome Statement (Budget and 5 Year History)

For the Six Months Ended June 30th

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Variance Notes - Income Statement (Budget and 5 Year History)

1) The sale of residential water is $56k less than budget and $18k less than realized last year. Frozen water services in the winter/spring resulted in many customers with no variable charges on their water bills. Demand for water in general has also been on the decline due to more efficient plumbing fixtures, and conservation efforts in the community.

2) The sale of commercial water is $13k more than budget and $23k more than realized by second quarter last year.

3) Revenues from New Tec are $45k higher than budget and $31k higher than the prior year. The average monthly billing has been about $96k per month verses $91k last year.

4) The TBM revenues are $84k less than budget and $81k less than last year. In May 2013 TBM billed CPUSB for water services they supplied to the organization in the amount of $33,946.98.CPUSB had an issue supplying water to some residents for a short period of time while repairs were being made. TBM fulfilled the supply needs.On-going disputes with TBM on the correct meter reads has resulted in credits being issued to them in the amount of $18,283 off the regular monthly invoices.The May & June invoices to TBM were only in the $3-$4k range verses the typical monthly invoice of $19k. Management should focus efforts on resolving any issues with TBM and stabilizing this source of income.Regarding the decline in revenue between 2013 and 2014, there was a new agreement with TBM. Only about 360,000 cubic meters of consumption going forward annually verses 1,460,000 in 2013.

5) Process water sales have declined year over year as less demand has been experienced.

6) Town of Collingwood removed cost of hydrant maintenance from property tax budget. We no longer receive payment from the Town to cover hydrant maintenance work. Lost annual revenue of $148,800.

7) Lost the Devils Glen contract as of September 30, 2015. No future revenue source.

8) South-end Servicing Special Charges will no longer be a source of income from the Town of Collingwood. Auditors fixed the way the Town was recording this. Only $7k expected for interest at y/e.

9) Total revenue is $100k behind budget mainly the result of the TBM lost revenues. Total revenue is $178k behind last year mainly the result of TBM, hydrant maint and South-end Servicing lost revenue.

10) Water treatment department is tracking very close to budget with a slight $3k overage. Compared to the prior year there is an increase of $50k.

11) Water distribution is $63k under budget and $133k higher than last year.In Feb 2015 and Jan 2014 Collingwood experienced sudden and dramatic increases in frozen water pipes due to prolonged periods of frigid temperatures and deeper-than-usual frost penetration into the ground.The service connection sub-department was $245,233 over budget in the full year of 2014. The 2015 budget was revised to accommodate extra anticipated services expense.

12) The admin building is over budget by $17k and higher than last year by $26k. Higher than average building repairs and maintenance.A new expense for sanding and salting, which used to be done in kind by public works, was not budgeted for. Other repairs include: Lighting fixture repair $3,328, block heater & generator repair $3,506.

13) Supervision and admin is $46k under budget and $74 less than the prior year. The decline from the prior year is mainly the result of staff changes. The balance under budget mostly relates to note 14 and also a variety of accounts under budget with nothing specific of note.

14) Billing & collecting is $15k over budget and $33k higher than last year. The difference directly relates to a change in the burden allocation from Solutions.The fixed portion of the burden used to all go to the Supervision & Admin dept for all Solutions charges. Now there is no fixed portion of the burden, it is all variable and attaches to the applicable dept. Please see the under budget reported in note 13.

15) Historically, water has carried the full burden of billing, meter reading, collecting, and other misc & administration expenses on behalf of waste water.The reallocation of costs in 2014 was $15,398.25 per month ($184,779 annual). Graduated implementation of cost sharing started in 2014 and increased in 2015.The reallocation of costs in 2015 was $31,566.42 per month ($378,797 annual).

16) Final result for the end of the 2nd quarter is $3,889 over budget.

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January February March April May June July August September October November December YTDChemicals $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $57.61 $0.00 $0.00 $0.00 $0.00 $0.00 $57.61 Employee - Meals 0.00 0.00 223.23 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 223.23 Equipment Rentals 0.00 0.00 195.38 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 195.38 Materials Non-Stock 140.94 5,221.95 1,800.00 526.98 1,315.66 496.75 255.79 11.18 0.00 0.00 0.00 0.00 9,769.25 Materials Stock 796.89 2,972.03 1,762.46 891.98 2,913.89 1,038.11 996.17 0.00 0.00 0.00 0.00 0.00 11,371.53 Repairs & Maint - Equipment 0.00 0.00 0.00 0.00 0.00 0.00 6.11 0.00 0.00 0.00 0.00 0.00 6.11 Small Tools and Equipment 16.26 261.46 341.83 401.42 298.93 492.52 101.76 145.36 0.00 0.00 0.00 0.00 2,059.54 Subcontract 4,159.95 26,074.89 52,346.30 16,557.00 18,663.24 2,983.37 2,052.11 11,376.77 0.00 0.00 0.00 0.00 134,213.63 Telephone 0.00 0.00 0.00 0.00 0.00 53.02 0.00 0.00 0.00 0.00 0.00 0.00 53.02 Vehicle & Equipment Charge 1,678.02 2,250.00 8,852.05 2,957.75 3,127.63 1,125.57 2,937.89 1,945.00 525.00 0.00 0.00 0.00 25,398.91 Wages & Stores - Burden 7,857.09 5,233.98 41,420.71 16,015.87 10,814.55 3,499.65 6,008.89 3,152.14 852.70 0.00 0.00 0.00 94,855.58 Wages - Operations & Maint 5,382.57 9,516.37 61,953.92 21,304.60 17,393.30 6,816.57 7,509.35 5,952.15 1,712.83 0.00 0.00 0.00 137,541.66

20,031.72 51,530.68 168,895.88 58,655.60 54,527.20 16,505.56 19,925.68 22,582.60 3,090.53 0.00 0.00 0.00 415,745.45 Incomplete months

January February March April May June July August September October November December YTDEquipment Rentals $0.00 $62.14 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $62.14 Materials Non-Stock 310.67 4,438.32 3,390.77 589.95 355.54 308.90 42.73 1,028.17 216.66 160.93 2,166.08 (2,856.85) 10,151.87 Materials Stock (1.65) 1,387.00 538.67 585.38 2,270.62 1,546.23 681.87 4,862.23 2,286.62 6,662.70 2,051.29 858.78 23,729.74 Repairs & Maint - Equipment 0.00 0.00 0.00 390.20 0.00 0.00 814.08 52.32 7.71 6,756.36 259.65 0.00 8,280.32 Small Tools and Equipment 0.00 2.54 19.27 0.00 0.00 0.00 0.00 658.03 0.00 33.89 0.00 0.00 713.73 Subcontract 1,315.25 12,348.08 4,966.18 6,623.14 7,678.21 10,244.48 1,119.36 2,481.93 6,079.09 4,377.12 6,035.64 2,481.93 65,750.41 Vehicle & Equipment Charge 420.00 6,535.00 8,030.00 5,078.77 4,095.12 5,806.36 2,089.65 840.70 3,523.06 5,170.00 2,335.00 485.67 44,409.33 Wages & Stores - Burden 1,513.81 9,845.97 26,660.50 12,556.14 15,772.99 6,681.90 7,199.39 6,610.70 8,636.43 11,737.23 5,240.44 3,741.32 116,196.82 Wages - Operations & Maint 1,450.02 19,691.66 25,752.03 11,987.89 18,484.68 8,634.29 7,214.91 4,357.35 8,599.05 21,340.66 9,528.16 3,797.87 140,838.57

5,008.10 54,310.71 69,357.42 37,811.47 48,657.16 33,222.16 19,161.99 20,891.43 29,348.62 56,238.89 27,616.26 8,508.72 410,132.93

January February March April May June July August September October November December YTDEquipment Rentals $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 $36.63 $0.00 $36.63 Materials Non-Stock 3.24 1,603.35 388.46 (2,300.45) 1,331.93 1,387.09 (482.63) 117.57 37.66 746.75 42.63 688.86 3,564.46 Materials Stock 150.03 442.97 47.16 660.63 1,074.49 782.28 995.97 536.07 923.47 434.85 119.55 391.70 6,559.17 Repairs & Maint - Equipment 0.00 0.00 0.00 0.00 0.00 492.00 0.00 0.00 0.00 0.00 0.00 1,792.50 2,284.50 Small Tools and Equipment 0.00 0.00 25.04 0.00 48.80 100.96 502.60 0.00 0.00 0.00 0.00 162.82 840.22 Subcontract 2,705.00 637.50 1,987.50 1,200.00 18,028.27 2,693.12 3,815.00 370.59 3,426.77 1,628.16 2,895.58 4,436.22 43,823.71 Vehicle & Equipment Charge 160.00 331.51 883.46 2,273.28 886.64 1,044.81 616.89 79.65 2,836.26 442.71 286.25 277.34 10,118.80 Wages & Stores - Burden 0.00 6,565.39 2,952.52 5,167.78 3,250.03 3,410.19 2,601.21 2,971.19 898.38 1,885.12 3,336.73 4,454.43 37,492.97 Wages - Operations & Maint 0.00 4,509.68 2,795.82 4,181.43 8,960.61 6,899.23 4,296.16 3,835.35 2,554.23 2,311.18 6,432.05 5,437.99 52,213.73

3,018.27 14,090.40 9,079.96 11,182.67 33,580.77 16,809.68 12,345.20 7,910.42 10,676.77 7,448.77 13,149.42 17,641.86 156,934.19

Actual

Collingwood Public Utilities Service BoardIncome Statement Trend

For the Twelve Months Ending Wednesday, December 31, 2014Water Distribution Services Connections

FROZEN SERVICES SIGNIFICANT IMPACT

Actual


For the Twelve Months Ending Tuesday, December 31, 2013Water Distribution Services Connections

MORE TYPICAL YEAR

Actual


Invoices Posted in the System as at September 9, 2015Water Distribution Services Connections

FROZEN SERVICES SIGNIFICANT IMPACT

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Budget * Last YearActual % Budget % Variance % Last Year % Variance %

Revenue Sale of water Residential $1,519,854 52.1% $1,576,130 52.2% ($56,276) 3.6% $1,537,688 49.6% ($17,834) 1.2% Commercial 412,754 14.1% 399,836 13.2% 12,918 ( 3.2%) 390,084 12.6% 22,670 ( 5.8%) New Tecumseth 574,132 19.7% 529,172 17.5% 44,960 ( 8.5%) 543,324 17.5% 30,808 ( 5.7%) Town of Blue Mountain 30,300 1.0% 114,505 3.8% (84,205) 73.5% 111,712 3.6% (81,412) 72.9% Process 48,210 1.7% 56,139 1.9% (7,929) 14.1% 59,094 1.9% (10,884) 18.4%

2,585,250 88.6% 2,675,782 88.6% (90,532) 3.4% 2,641,902 85.3% (56,652) 2.1% Other revenue Hydrant maintenance 0.0% 0.0% 0.0% 74,400 2.4% (74,400) 100.0% Interest income 15,245 0.5% 15,000 0.5% 245 ( 1.6%) 16,872 0.5% (1,627) 9.6% Water meters 15,503 0.5% 27,000 0.9% (11,497) 42.6% 8,825 0.3% 6,678 ( 75.7%) Operations management fee - CFB Meaford 91,505 3.1% 100,850 3.3% (9,345) 9.3% 109,551 3.5% (18,046) 16.5% Operations management fee - Devils Glen 44,316 1.5% 50,450 1.7% (6,134) 12.2% 51,490 1.7% (7,174) 13.9% Lease revenue (Collus) - Stewart Road Building 108,000 3.7% 108,000 3.6% 0.0% 108,000 3.5% 0.0% Lease revenue (Collus) - Computers 10,896 0.4% 10,896 0.4% 0.0% 10,896 0.4% 0.0% Water Connection Charges 16,935 0.6% 18,450 0.6% (1,515) 8.2% 11,162 0.4% 5,773 ( 51.7%) Southend Servicing Special Charges 0.0% 0.0% 0.0% 44,714 1.4% (44,714) 100.0% Miscellaneous revenue 31,497 1.1% 13,300 0.4% 18,197 ( 136.8%) 19,273 0.6% 12,224 ( 63.4%)

333,897 11.4% 343,946 11.4% (10,049) 2.9% 455,183 14.7% (121,286) 26.6%

Total Revenue 2,919,147 100.0% 3,019,728 100.0% (100,581) 3.3% 3,097,085 100.0% (177,938) 5.7%

Expenses Water Treatment 732,264 25.1% 728,964 24.1% (3,300) ( 0.5%) 682,767 22.0% (49,497) ( 7.2%) Water Distribution 921,466 31.6% 984,908 32.6% 63,442 6.4% 788,556 25.5% (132,910) ( 16.9%) Administration Building 221,839 7.6% 204,155 6.8% (17,684) ( 8.7%) 195,322 6.3% (26,517) ( 13.6%) Information Technology 81,024 2.8% 101,014 3.3% 19,990 19.8% 70,777 2.3% (10,247) ( 14.5%) Operations Supervision and Administration 435,586 14.9% 481,479 15.9% 45,893 9.5% 509,607 16.5% 74,021 14.5% Customer billing and collection 232,445 8.0% 216,773 7.2% (15,672) ( 7.2%) 198,988 6.4% (33,457) ( 16.8%) Waste Water Admin Fee (189,399) ( 6.5%) (189,399) ( 6.3%) 0.0% (92,390) ( 3.0%) 97,009 ( 105.0%)

2,435,225 83.4% 2,527,894 83.7% 92,669 3.7% 2,353,627 76.0% (81,598) ( 3.5%) Amortization 830,480 28.4% 830,480 27.5% 0.0% 790,992 25.5% (39,488) ( 5.0%) Interest 72,948 2.5% 72,676 2.4% (272) ( 0.4%) 76,336 2.5% 3,388 4.4%

3,338,653 114.4% 3,431,050 113.6% 92,397 2.7% 3,220,955 104.0% (117,698) ( 3.7%)

Net Revenue (Expense) from Continuing Operatio (419,506) ( 14.4%) (411,322) ( 13.6%) 8,184 ( 2.0%) (123,870) ( 4.0%) 295,636 ( 238.7%)

Other Contributed tangible capital assets 4,293 0.1% 0 0.0% 4,293 0.0% 1,618 0.1% 2,675 ( 165.3%)

4,293 0.1% 0 0.0% 4,293 0.0% 1,618 0.1% 2,675 ( 165.3%)

Annual Surplus (Deficit) (415,213) ( 14.2%) (411,322) ( 13.6%) 3,891 ( 0.9%) (122,252) ( 3.9%) 292,961 ( 239.6%)

Collingwood Public Utilities Service BoardINCOME STATEMENT (Actual vs Budget & Prior Year)

For the Six Months Ending June 30, 2015YTD

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June2015 December2015ACTUAL NEW BUDGET Budget Remaining % Notes

Revenue Sale of water Residential $1,519,854.43 $3,155,006.32 $1,635,151.89 51.83% Commercial 412,753.61 911,421.81 498,668.20 54.71% New Tecumseth 574,132.14 1,058,344.00 484,211.86 45.75% Town of Blue Mountain 30,300.09 232,748.05 202,447.96 86.98% Will not attain this budget by year-end. Issues to be resolved as noted in variances. Process 48,209.98 102,111.59 53,901.61 52.79% 2,585,250.25 5,459,631.77 2,874,381.52 52.65% Other revenue Hydrant maintenance 0.00 0.00 0.00 100.00% Interest income 15,244.99 30,000.00 14,755.01 49.18% Water meters 15,502.66 54,000.00 38,497.34 71.29% Will not attain this budget. Rate study was too optimistic. Only $19k by the end of Aug. Operations management fee - CFB Meaford 91,505.22 201,700.00 110,194.78 54.63% Operations management fee - Devils Glen 44,315.99 75,674.97 31,358.98 41.44% Lease revenue (Collus) - Stewart Road Building 108,000.00 216,000.00 108,000.00 50.00% Lease revenue (Collus) - Computers 10,896.00 21,792.00 10,896.00 50.00% Water Connection Charges 16,934.53 45,100.00 28,165.47 62.45% Will not attain this budget. Rate study was too optimistic. Only $18k by the end of Aug. Southend Servicing Special Charges 0.00 7,000.00 7,000.00 100.00% 100% of revenue will be posted in December. Miscellaneous revenue 31,496.96 26,600.00 (4,896.96) (18.41%) 333,896.35 677,866.97 343,970.62 50.74% Total Revenue 2,919,146.60 6,137,498.74 3,218,352.14 52.44% Expenses Water Treatment 732,264.04 1,431,934.32 (699,670.28) (48.86%) Water Distribution 921,466.00 1,673,584.00 (752,118.00) (44.94%) Administration Building 221,839.30 403,595.68 (181,756.38) (45.03%) Information Technology 81,024.02 201,310.08 (120,286.06) (59.75%) Operations Supervision and Administration 435,585.83 933,478.00 (497,892.17) (53.34%) Customer billing and collection 232,444.74 421,548.38 (189,103.64) (44.86%) Waste Water Admin Fee (189,398.52) (378,797.00) 189,398.48 (50.00%) 2,435,225.41 4,686,653.46 (2,251,428.05) (48.04%) Amortization 830,479.98 1,660,959.96 (830,479.98) (50.00%) Interest 72,948.09 144,442.38 (71,494.29) (49.50%) Extraordinary Deductions 0.00 0.00 0.00 (100.00%) 3,338,653.48 6,492,055.80 (3,153,402.32) (48.57%) Net Revenue (Expense) (419,506.88) (354,557.06) (64,949.82) 18.32% Other Municipal Special Charges 0.00 0.00 0.00 100.00% Contributed tangible capital assets 4,292.95 0.00 (4,292.95) 100.00% 4,292.95 0.00 (4,292.95) 100.00% Annual Surplus (Deficit) (415,213.93) (354,557.06) (60,656.87) 17.11%

Collingwood Public Utilities Service BoardIncome Statement (Budget Remaining to Dec 31, 2015)

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December2015 December2015OLD BUDGET NEW BUDGET Variance % Notes

Revenue Sale of water Residential $3,293,490.33 $3,155,006.32 ($138,484.01) (4.39%) New budget based on 2014 actuals * 2.5% rate study increase. No growth %. No mid year rate increase of 3.3%. Commercial 931,994.95 911,421.81 (20,573.14) (2.26%) New budget based on 2014 actuals * 2.5% rate study increase. No growth %. No mid year rate increase of 3.3%. New Tecumseth 1,058,344.00 1,058,344.00 0.00 0.00% Town of Blue Mountain 229,351.59 232,748.05 3,396.46 1.46% New budget based on 2014 actuals * 2.5% rate study increase. No growth %. No mid year rate increase of 3.3%. Process 141,969.95 102,111.59 (39,858.36) (39.03%) New budget reflects year over year declines rather than increases in this category. 5,655,150.82 5,459,631.77 (195,519.05) (3.58%) Other revenue Hydrant maintenance 148,800.00 0.00 (148,800.00) 100.00% Lost Hydrant maintenance revenue from the Town of Collingwood reflected. Interest income 6,000.00 30,000.00 24,000.00 80.00% Transmitter capital project delayed which will leave cash in the bank and result in more interest income. Water meters 54,000.00 54,000.00 0.00 0.00% Operations management fee - CFB Meaford 201,700.00 201,700.00 0.00 0.00% Operations management fee - Devils Glen 100,900.00 75,674.97 (25,225.03) (33.33%) Removed Oct to Dec revenue as the contract was lost. Lease revenue (Collus) - Stewart Road Building 216,000.00 216,000.00 0.00 0.00% Lease revenue (Collus) - Computers 21,792.00 21,792.00 0.00 0.00% Water Connection Charges 45,100.00 45,100.00 0.00 0.00% Southend Servicing Special Charges 89,428.20 7,000.00 (82,428.20) (1177.55%) Per auditors corrections to Town's records, income will not be realized from Town, only small amount of interest. Miscellaneous revenue 26,600.00 26,600.00 0.00 0.00% 910,320.20 677,866.97 (232,453.23) (34.29%) Total Revenue 6,565,471.02 6,137,498.74 (427,972.28) (6.97%) Expenses Water Treatment 1,453,828.34 1,431,934.32 21,894.02 1.53% Removal of Devils Glen expenses as this contract is lost. Water Distribution 1,341,512.48 1,673,584.00 (332,071.52) (19.84%) Reflected frozen water services impact, new temp contract worker, utilities adj. Administration Building 403,595.68 403,595.68 0.00 0.00% Information Technology 201,310.08 201,310.08 0.00 0.00% Operations Supervision and Administration 1,165,013.04 933,478.00 231,535.04 24.80% Revised to be based on 2014 actual results * 2.5% less $118,000 for staff changes. Customer billing and collection 421,548.38 421,548.38 0.00 0.00% Waste Water Admin Fee (378,797.00) (378,797.00) 0.00 0.00% 4,608,011.00 4,686,653.46 (78,642.46) (1.68%) Amortization 1,709,700.00 1,660,959.96 48,740.04 2.93% Revised to be based on the updated capital plan submitted by Peggy. Interest 144,442.38 144,442.38 0.00 0.00% 6,462,153.38 6,492,055.80 (29,902.42) (0.46%) Net Revenue (Expense) 103,317.64 (354,557.06) 457,874.70 (129.14%)

Collingwood Public Utilities Service BoardIncome Statement (Budget Revisions - Final Business Plan)

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Collingwood Public Utilities Service BoardAll invoices posted in the accountingsystem as at Sept 10th, 2015.

Budget 2015 2015

Spending Budget

Remaining CAPITAL

18080 Building - Operation Centre 10,500 4,223 6,277 18090 Building - Water Tower Refurbishment - 145 (145) 18351 Building - Filtration Plant - 4,677 (4,677) 11080 Building - Storage - - -

10,500 9,045 1,455

19150 Equip - Office Furniture & Equip 39,000 - 39,000 19201 Equip - Computer Equip - Office 35,000 10,435 24,565 19300 Equip - Vehicle Capital 5,000 2,748 2,252 19310 Equip - Quench Buggy Capital 15,000 - 15,000 19400 Equip - Tools & Equipment Capital 45,500 7,133 38,367 19550 Equip - Communication Equip Capital - - -

139,500 20,316 119,184

18352 P&E - Filtration Plant Treatment Unit 121,000 3,475 117,525 18353 P&E - Filtration Plant Ancillary Equipment - - -

121,000 3,475 117,525

19250 Software - Office 20,000 10,759 9,241 19251 Software - GIS 20,000 - 20,000

40,000 10,759 29,241

18300 T&D - Elevated Storage Tank 20,000 - 20,000 18301 T&D - Hwy#26 Inground Reservoir 40,000 2,563 37,437 18302 T&D - Poplar Side Road Inground Reservoir - - - 18303 T&D - Stewart Road Inground Reservoir - - - 18304 T&D - Booster pumping station 25,000 48 24,952 18452 T&D - Water Mains Capital 1,220,000 201,942 1,018,058 Hume Street Bill from Town to come.18460 T&D - Water Hydrants Capital 15,000 9,464 5,536 18550 T&D - Service Capital 24,500 14,770 9,730 18600 T&D - Water Meter Capital 60,000 59,785 215 18620 Water Transmitter Capital - 4,235 (4,235) 18650 T&D - Water Valve Capital 50,000 10,228 39,772

1,454,500 303,035 1,151,465 Other EXPENSES/CONTRIBUTIONS

Studies 25,000 4,019 20,981

1,790,500 350,650 1,439,850

Capital Budget ReviewYEAR TO DATE AS AT 9/10/2015

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STAFF REPORT


August 4, 2015


Date: August 11, 2015



Subject: Rate Increase- Retroactive to May 1, 2015

1. BACKGROUND

In December 2013 Watson & Associates completed the Water and Wastewater Rate Study which calculated rates for the 2014-2022 period. These rates were calculated on the assumption that $148,800 would be collected in 2015 as revenue from the Town of Collingwood for hydrant maintenance as had been the agreement between the Town of

PURPOSE The purpose of this report is to present the findings of Watson & Associates Economists Ltd. and provide the Standing Committee with a recommendation to proceed with a rate increase to accommodate the loss of hydrant maintenance revenue previously provided by the Town of Collingwood’s Fire Department budget to the former Collingwood Public Utilities Water Department budget.

RECOMMENDATION: THAT Council receive Staff Report ES2015-04 entitled “Rate Increase- Retroactive to May 1, 2015”;

THAT Council accept the rate increase of 3.3% retroactive to May 1, 2015; AND THAT Council enact the respective by-law to facilitate this increase.

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Collingwood and Collingwood Public Utilities for over ten years. As such, the cost of hydrant maintenance has never been paid by user’s water rates. During the March 28, 2015 Strategic Initiatives Standing Committee meeting, Council voted to move the hydrant maintenance budget item from the Town’s Fire Department budget to the Collingwood Public Utilities budget. The impact to the Water Department is the loss of revenue of $148,800 for hydrant maintenance. After Council’s decision, then COO Marcus Firman, asked Gary Scandlan of Watson & Associates to revisit the 2015-2022 water rates and recommend an amendment to the water rates to reflect the loss of the hydrant revenue. Collingwood Public Utilities had always separated the time and materials associated with hydrant maintenance from the other water system maintenance work completed by the distribution operators. Hydrant maintenance includes: checking and lubricating the hydrant ports twice a year, painting, installing and removing hydrant markers, hydrant replacement or repairs, snow clearing and grass cutting around the hydrants as needed, and any other work related to keeping the hydrants operational all year long. Hydrant flushing (needed to maintain distribution water quality) does not fall under hydrant maintenance and is collected through user rates. 2. INPUT FROM OTHER SOURCES

There have been numerous discussions with Collingwood Public Utilities CFO Cindy Shuttleworth to examine possible alternatives to the rate increase suggested by Watson & Associates. The letter from Watson & Associates has been attached as Appendix A. Staff Report CPU2015-04 was taken to the Collingwood Public Utilities Services Board (CPUSB) on May 7, 2015. The item was discussed and a decision deferred until the June 10, 2015 CPUSB meeting. During the June 10, 2015 meeting, CPUSB voted to accept the recommended 3.3% increase and proceed to take the item to Council for approval. 3. APPLICABLE POLICY OR LEGISLATION

Current 2015 rates adopted as per By-law 2014-88 of the Corporation of the Town of Collingwood Being a By-law to Adopt Water and Wastewater Rates for 2015. Recommendation accepted by former Collingwood Public Utilities Services Board on June 10, 2015 requiring Council approval as per By-law 2012-096.

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4. ANALYSIS Alternatives to a rate increase have been considered, however the current operating budget simply does not allow for the utility to absorb the loss of revenue. The Water Department experienced many unexpected costs in 2015 including frozen services, additional costs on Hume Street, loss of the Devil’s Glen contract (effective September 2015). It remains Staff’s opinion these additional expenses are greater than the savings realized through the resignation of the Chief Operating Officer in April. Most importantly, not collecting the appropriate operating costs in the year they are applied affects the long term financial stability of the Water Department’s budget. Watson & Associates has reviewed the water rates and suggests that the 2015 rate increase should be 5.8% to accommodate the loss of hydrant revenue. On November 24, 2014 Council approved a 2015 rate increase of 2.5% which became effective January 1, 2015. Therefore, it is staff’s recommendation that the Standing Committee accepts a 3.3% increase effective May 1, 2015. This increase would apply to both the fixed and consumption charges. 5. EFFECT ON TOWN FINANCES

A 3.3% increase over a year would generate the $148,800 needed in revenue to finance the hydrant maintenance cost. As per the Watson & Associates letter the 3.3% increase would result in an annual monetary increase of approximately $13.28 (based on the average residential customer who uses 160 cubic meters of water per year).

Appendix A Letter from Watson and Associates: Dated March 31, 2015 Resource 1 Water and Wastewater Rate Study: Dated December 12, 2013

http://www.watercollingwood.ca/sites/default/files/2014%20Water%20and%20Wastewater%20Rate%20Study.pdf

SIGNATURES

Submitted by: Department Head: Peggy Slama Brian MacDonald Chief Operating Officer (Acting) Manager of Water Services

Director of Engineering & Public Works



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Plaza Three 101-2000 Argentia Rd.

Mississauga, Ontario Canada L5N 1V9

Phone: (905) 272-3600 Fax: (905) 272-3602

e-mail: [email protected]

H:\Collingwood\Water and Wastewater\Water Rate Update.docx

March 31, 2015

Marcus Firman Collingwood Public Utility Service Board 43 Stewart Road, P.O. Box 189 Collingwood, ON L9Y 3Z5

Dear Marcus:

Re: Updated Water Rates 2015-2022

Further to your request for an update to the water rates for the years 2015 to 2022, to reflect the loss of hydrant rental revenue, please the updated rate calculations below.

In early 2014 the water rates, as set out in the Water and Wastewater Rate Study dated, December 2013, were calculated for the 2014 to 2022 forecast period. In the calculations, it was assumed that the annual revenue from hydrant rentals would continue to be recognized each year. The annual revenue was assumed to equal $148,800. The rates calculated included increases to both the fixed monthly base charges as well as the volume rates. For 2015 to 2018 the rates were anticipated to increase at 2.5% annually and then from 2019 to 2022 the rates were to increase at 2% annually. The following provides the rates that were calculated in the 2013 study.

Description 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Base Monthly Chargeup to 1 1/4" 19.85 20.33 20.85 21.37 21.91 22.46 22.90 23.36 23.83 24.311 1/4" 25.08 25.69 26.34 27.00 27.68 28.37 28.94 29.52 30.11 30.711 1/2" 38.06 38.99 39.97 40.97 42.01 43.06 43.92 44.80 45.69 46.602" 55.99 57.35 58.80 60.27 61.79 63.34 64.60 65.90 67.22 68.563" 83.73 85.77 87.93 90.13 92.41 94.72 96.61 98.55 100.52 102.534" 126.90 129.99 133.27 136.60 140.06 143.56 146.42 149.36 152.35 155.396" 190.73 195.38 200.30 205.31 210.50 215.77 220.07 224.48 228.98 233.558" 253.77 259.95 266.51 273.18 280.08 287.08 292.81 298.68 304.66 310.7410" 381.45 390.75 400.59 410.62 421.00 431.52 440.14 448.96 457.95 467.09Volume Rate (per m3)Filtered - Regular 0.590 0.604 0.620 0.635 0.651 0.667 0.681 0.694 0.708 0.722Filtered - Summer 1.066 1.092 1.119 1.147 1.176 1.206 1.230 1.254 1.280 1.305Processed 0.187 0.192 0.196 0.201 0.206 0.212 0.216 0.220 0.224 0.229Annaul Percentage Increase 2.4% 2.5% 2.5% 2.5% 2.5% 2.0% 2.0% 2.0% 2.0%

Water Rate Summary

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Appendix A

Watson & Associates Economists Ltd. Page 2.


With the removal of the annual hydrant revenue of $148,800, both the fixed monthly base charges as well as the volume rates require adjustment to reflect the additional revenue to be recovered through the base charges and volume rates in place of the lost hydrant revenue. The following table provides the updated rates that are required due to this change in revenue:

The increase for 2015 for an average residential user (with a meter size of 1¼” and consuming 160m3/year) was originally anticipated to include an increase of $7.80 to the annual base charge and $0.016/m3 to the volume charge. This increase would have resulted in an increase in the average annual bill of $10.36. With the updates to the rates due to the loss of hydrant revenue, the increase to a similar residential user would include an increase to the annual base charge of $18.00 and an increase to the volume rate of $0.035/m3 resulting in an annual bill increase of $23.64.

With the higher than expected increase in water rates for 2015, as calculated above, it is noted that if these adjusted rates are not implemented, the water service will likely run a deficit this year as well as in future years.

If you have questions regarding the above or if I can be of any further assistance in this matter please do not hesitate to contact me.

Description 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Base Monthly Chargeup to 1 1/4" 19.85 20.33 21.52 22.03 22.56 23.10 23.54 23.98 24.44 24.911 1/4" 25.08 25.69 27.19 27.84 28.50 29.18 29.74 30.30 30.88 31.471 1/2" 38.06 38.99 41.26 42.24 43.26 44.29 45.13 45.99 46.86 47.762" 55.99 57.35 60.70 62.14 63.64 65.15 66.38 67.65 68.94 70.263" 83.73 85.77 90.78 92.93 95.16 97.43 99.27 101.17 103.10 105.074" 126.90 129.99 137.58 140.85 144.23 147.66 150.46 153.33 156.26 159.246" 190.73 195.38 206.79 211.69 216.78 221.93 226.14 230.45 234.85 239.338" 253.77 259.95 275.14 281.66 288.42 295.29 300.88 306.62 312.47 318.4310" 381.45 390.75 413.57 423.38 433.54 443.85 452.27 460.89 469.69 478.65Volume Rate (per m3)Filtered - Regular 0.590 0.604 0.640 0.655 0.670 0.686 0.699 0.713 0.726 0.740Filtered - Summer 1.066 1.092 1.156 1.183 1.211 1.240 1.264 1.288 1.312 1.337Processed 0.187 0.192 0.203 0.208 0.213 0.218 0.222 0.226 0.230 0.235Annaul Percentage Increase 2.4% 5.8% 2.4% 2.4% 2.4% 1.9% 1.9% 1.9% 1.9%

Water Rate Summary

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Watson & Associates Economists Ltd. Page 3.


Yours very truly,

Gary Scandlan, Director

WATSON & ASSOCIATES ECONOMISTS LTD.

c.c. Peggy Slama, COLLUS Nancy Neale, Watson & Associates Economists Ltd.

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STAFF REPORT

Report #ES2015-09




Subject: Environmental Services: 2015-2017 Business Plan

1. BACKGROUND

. The 2015-2017 Business Plan was presented to the Standing Committee as Staff Report ES2015-05 on August 11, 2015. The recommendation to accept the Business Plan was deferred until rate increase alternatives could be discussed and confirmed by the September 15, 2015 Committee meeting. This Business Plan format includes the budget for 2015, which has yet to be approved by Council. The 2015 budget must be approved prior to moving forward with the 2016 budget.

PURPOSE The purpose of this report is to provide the Standing Committee with the Environmental Services: 2015-2017 Business Plan.

RECOMMENDATION: THAT Council receive Staff Report ES2015-05 entitled “Environmental Services: 2015-2017 Business Plan” deferred on August 11, 2015 and receive the revised Staff Report ES2015-09; AND THAT Council accept the Environmental Services: 2015-2017 Business Plan, as presented herein.

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2. INPUT FROM OTHER SOURCES

The Environmental Services: 2015-2017 Business Plan has been reviewed by the Treasurer and Director of Public Works & Engineering. It was recommended to proceed to the Environmental Services Standing Committee. As a related matter, Watsons was consulted regarding adjustments to the current rate study to determine the need to change the 2015 water rates. A detailed review of the capital and operating revenue and expense changes for 2015 determined the department does not need to adjust the water rates for 2015. 3. APPLICABLE POLICY OR LEGISLATION

A business plan was presented to Council for the 2015-2017 period in accordance with the former Collingwood Public Utilities Services Board By-law No. 2012-096. Environmental Services will begin following the Town’s budget process in 2016. As such, it will not be required to complete a business plan (in this format) moving forward. This revised plan is being presented to satisfy the previous Board and Council’s request. O. Reg. 453/07 does require a separate six year financial plan to be completed for system licensing. Our license is up for renewal in January 2016. This will be prepared by an Economist Consultant and presented to the Standing Committee at a future meeting.

4. ANALYSIS

Since being reviewed at the August 11, 2015 Committee meeting, staff have revised the Business Plan to remove the rate increase proposed in Staff Report ES2015-04. The proformas have also been updated to reflect the loss of Devil’s Glen contract. As mentioned during the August 11, 2015 meeting, the Utility will be ceasing to operate Devil’s Glen Country Club water treatment plant effective September 30, 2015. 5. EFFECT ON TOWN FINANCES

Operational and capital budgets are based on the Water and Wastewater Rate Study. The revised Business Plan has updated budgets to reflect the challenges faced in the first half of 2015, however all projects are still fully user-funded and as such will not require any additional debt.


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Appendix A 2015-2017 Business Plan SIGNATURES

Submitted by: Department Head: Peggy Slama Brian MacDonald

Chief Operating Officer (Acting) Manager of Water Services



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Environmental Services2015-2017 Business Plan

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Business Plan 2015-2017 83 of 112

Business Plan 2015-2017

TABLE OF CONTENTS3 Mission, Vision & Values

4 Our Business Direction

5 Who We Are

7 Our Customers, Our Services

10 Service Territory

11 Contract Services

12 2014 Highlights

14 Forecasting & Infrastructure Needs

15 Upcoming Water & Wastewater Projects

Appendices

A Proforma Statements

B Capital Budgets

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VISION, MISSION AND VALUES

Our Vision Together, we will grow, maximize opportunities and exceed customers’ and shareholders’ expectations.

Our Values

• Trust-BuildingandMaintainingCustomerConfidence• Responsibility - Committed to Service Quality, Reliability and Conservation• Sustainability - Environmental, Economic, Social and Cultural• People - Strong Relationships and Pride Make a Difference• Partnerships & Collaborations - Leveraging and Sharing Resources• Continuous Improvement - Business Processes and Technology that Deliver Results

Our Mission Our business provides people with the energy for success and the necessities of life.

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Business Plan 2015-2017 4

OUR BUSINESS DIRECTIVEIn addition to operating according to the Mission, Vision and Values, our business directive is also influencedbyseveralfactorsandiscompliantwithallmandatoryrequirements.

Regulatory/Legislative • Town of Collingwood By-Laws• Safe Drinking Water Act• Conservation Demand Management Plan• ON1Callrequirements• Ministry of the Environment Regulations• OWWArequirements

Management Systems • Drinking Water Quality Management

System (DWQMS)• ISO 14001• Operational Plan• National Water & Wastewater

Benchmarking Initiative (NWWBI)

Status of Labour• Water Operators: International

Brotherhood of Electrical Workers (four year agreement September 1, 2013 to August 31, 2017)

• Wastewater Operators: not unionized

Rate Study/Asset Management• 2014 Rate Study was approved by

Council in March 2014• Financial Plan submitted to MOE and

MOHMA for review & acceptance• GIS utilized for asset management.• Asset Management Plan and Sewer User

Fees Studies

Shared Services Agreement• Agreement between Collingwood Public

Utilities and Collus PowerStream Solu-tions to share H.R, Finance and I.T re-sources

Environment/Conservation• Members of the Great Lakes St.

Lawrence Cities Initiative

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Mayor & Council

ActingChiefOperatingOfficerAdministrative Shared Services Agreement

Executive Assistant

Water Services Manager

Compliance Officer

Water Treatment 3 employees

1 contract

5

Wastewater Treatment Manager

WHO WE ARE

Environmental Services Standing Committee (Water and Wastewater)

CAO

Director, Public Works & Engineering

ORO ORO

Fleet, Facility & Purchasing

Manager

Stores 1 employee

Water Distribution 4 employees

Customer Service

2 employees

Wastewater Treatment 7 employees

Custodian (Town Hall)

Building Operator

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Development & Operational Standing Committee(Fleet, Facility, Purchasing,

Engineering and Public Works)

Director, Public Works & Engineering

Administrative Assistant

Pubic Works Supervisor

Public Works Manager

Machine Operator

4 employees

Lead Hand

MechanicTruck Driver/

Labourer 13 employees

Custodian

Administrative Assistant

EngineeringTechnician

EngineeringManager

Engineering Technologist

Project Coordinator

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Residential: 9,248Industrial/Commercial/Institutional: 795

Water ConnectionsResidential: 1,326,360 m3

Industrial/Commercial/Institutional:1,001,927 m3

Water Usage 2014

7

Water Main & Service Breaks

Service LocatesOur service locates have more than doubled since 2012 as a result of our regulated ON1Call mem-bership. In 2014 we completed 2368 locates.

In 2014 we experienced 8 main breaks. With over 150km of water main in the Collingwood drinking water system the break rate is well below the provincial average of 13 per 100km of water main. Most mainbreakswererepairedwithin12hoursofnotification.

OUR CUSTOMERS OUR SERVICE

Residential: 8,509Industrial/Commercial/Institutional: 560

Volume of Wastewater TreatedSewer Connections2014 5,921,787 m3

2013 6,505,420 m3

2012 6,247,923 m3

Conservation

Collingwood residents are water wise! We use a low 166 litres of water per person per day - but there is al-ways room for improvement. Our latest project with the Environ-ment Network aims to consistently reduce our daily consumption to 165 litres. Lower water usage also means there is less wastewater that needs to be treated.

Water Usage Per Capita Per Day

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MeteringCollingwood has been a fully metered community for nearly 30 years. Our meter work in 2014 included the following:• 153 new meters were installed• 602 old meters were replaced • 536 existing meters were checked and/or repaired• Wireless transmitters were installed on 700 commercial water meters

Rates

Supply Monthly (Fixed) Charge

This charge is based on a set rate per day that is invoiced to the customer for the supply of water and sewer. This charge is set regardless of how much water is consumed.

Consumption Charge

This charge is based on the actual amount of water consumed and is read through the water meter in your home.

Typical Residential Monthly Water and Sewer Bill (Non-Summer)

Water Fixed 30 days $20.86Water Consumption 12 cubic meters x $0.62 $ 7.44Sewer Fixed 30 days $46.45Sewer Consumption 12 cubic meters x $0.924 $11.08 $85.83

• Water and wastewater services are fully user funded and non-tax supported.• There is no subsidization between commercial, industrial and residential rates. Everyone pays

the same rates.• Transient users pay the same rates as full-time residents.• All capital projects presented in the 2015-2017 Business Plan are fully user funded and will not

requireanyadditionaldebt.• All residential and commercial properties are invoiced on a monthly basis. Water meters are

read approximately every 30 days. Both water and sewer rates are composed of two charges:

Typical Residential Monthly Water and Sewer Bill (Summer)

Water Fixed 30 days $20.86Water Consumption 12 cubic meters x $1.119 $13.43Sewer Fixed 30 days $46.45Sewer Consumption 12 cubic meters x $0.472 $ 5.66 $86.40

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Litre of gas

$0.91

Litre of bottle water $2.50

Medium coffee $1.70

Stamp

$1.00

It’s a great deal! It costs only $0.007 to have one litre of water delivered to your tap plus removed through the sewer.

The chart above reflects rates posted by our neighboring municipalities. Collingwood’s postedrates are based on full-cost for water and wastewater services and are not tax supported. Other municipalities may not follow the same principles. Additionally, Collingwood utilizes a 100% surface watersourcethatrequiresappropriatetreatmentprocesses.Someoftheothermunicipalitieslistedutilizegroundwaterwellsthatrequirelesstreatment.

Yearly Residential Water & Sewer Bill - Fixed Charges and Consumption *Based on 2014 rates and the Ontario average consumption of 225 cubic metres per year

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Service Territory On the south shore of Georgian Bay, 150 kilometers north of Toronto, Collingwood is located in theheartofOntario’sfinestfour-seasondestinationarea.Thewaterandwastewatersystemsarecomprised of the following: TheR.A.BarkerWaterTreatmentPlantwasthefirstmembraneplantofitskindintheworld.Oneelevated storage tank, two reservoirs, and two booster stations deliver water along 157 km of distribution pipes providing safe clean drinking water to our community.

92 km of collection pipes return wastewater back to our conventional activated sludge Wastewater Treatment Plant where it is treated with UV disinfection and anaerobic digesters.

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Facility Operation

Contract Services

For over 10 years we have maintained and operated the water and wastewater facilities at 4th Canadian Division Training Centre in Meaford.

Since 2005, we have operated and maintained the water treatment plant at Devil’s Glen Country Club.

Since 2000, we have operated the Township of Clearview’s Wastewater Treatment Plants providing wastewater service to Stayner and Creemore.

In 2014, we supplied New Tecumseth with 2907.95ML of water. This is supplied via a 66km pipeline.

In 2014, we supplied Town of Blue Mountain with 363.67ML of water.

Water Supply

Our professional service is recognized by other communities who have contracted the Town of Collingwood to operate their water and wastewater systems and supply their water.

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• A Manager of Water Services was hired this Spring. The Manager is responsible for the supervision of the water distribution and water treatment operators.

• Following presentation of our 2013 Financial Audit, the CAO and COO were directed by Council to hire a consultant to complete an independent review and provide their opinion and recommendations with respect to value for money of the Shared Services Agreement between Collus PowerStream Solutions Corp. and Collingwood Public Utilities. True North Consultants Inc. and Beacon 2020 Inc. were selected.

• Our new website watercollingwood.ca was launched. The new site aims to provide customers with even more information than our

previous site in a simplistic format. The site also enhances our service by allowing customers to report problems and make basic changes to their account online.

• Once again, data for the National Water & Wastewater Benchmarking Initiative (NWWBI) conducted by Aecom was submitted. This proj-ect highlights where we exceed performance expectations; for example, we have very few customer complaints regarding the quality ofour water system. It also shows where we may have room to grow; for example, our cost of customer billing is above the median. The in-formation gathered from this project helps us in making decisions about the direction of our business. Data for 2013 was submitted in the Fall of 2014.

Customer Service & Corporate Management

12

2014 HIGHLIGHTS

Number of Water Quality Complaints/1,000 People Served

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Water• Wireless transmitters have been installed on the majority of

our commercial meters. These transmitters allow reading to occur over Sensus’ Advanced Metering Infrastructure Sys-tem (AMI). This change has meant a substantial reduction in our meter reading costs.

• 2014 saw extreme winter weather conditions that unfortunate-ly resulted in 100 water services freezing. We worked around the clock connecting these frozen homes to their neighbors service to ensure no one was without water. Throughout the spring and summer we were able to conduct investigations on many of these services and begin to rectify those where the service from the property line to the main was not buried deep enough.

• Our Drinking Water Quality Management System was audited for compliance; four minor non-conformances were reportedallofwhichwereunrelatedtowaterqualityandhavebeenrectified.Asanexample,onenon-conformancenotedthat our website showed an obsolete policy statement.

• Our Environmental Management System, ISO 14001, was also audited; there were no non-conformances reported.

• We are very proud to announce the Water Department is now two years accident free with no lost time.

Wastewater• Sanitary renewal on Simcoe and Rodney Streets began in

2014. This project is a part of the Asset Management Plan and Sewer User Fees Studies muli-year renewal program.

• An independent report produced by Eco Justice rated Collingwood #3 of all the wastewater plants it reviewed in Ontario.

• Design work, funded by a grant from the Ontario Energy Board, was completed for the Cogeneration Project. This project is planned to be implemented in 2015.

• Design work on an enhanced odour control project was initi-ated and is planned to be implemented in 2015.

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The Town of Collingwood has developed a reputation for staying ahead of the curve and acting as an industry leader. We have a voice as members of several organizations including the Ontario Water Works Associations (OWWA), the Ontario Municipal Water Association (OMWA) and the Great Lakes St. Lawrence Cities Initiative. Through these organizations we are able to help dictate the course of the water and wastewater industries. As a result, our forecasting has always been reliable and we have been able to allocate resources accordingly without extensive changes to our rates.

WaterIn 2014 the maximum day demand of 23.468ML was 75% of the R.A.B Water Treatment Plant’s pro-duction capability of 31.14ML/d. It should be noted that of the 23.468ML, 10.468ML was bulk water sales to New Tecumseth and Town of Blue Moun-tain. Collingwood’s max day demand was only 12.968 ML/d (or 45% of the plant’s capacity) and was down from 14.003 ML/d in 2013. This decrease should be regarded as a direct result of Collingwood resident’s conservation efforts. At this time, based on Collingwood users, an expansion at the plant wouldnotberequiredforanother15yearsoruntil2030. However, an agreement with a neighbour-ing municipality may trigger this expansion sooner. If this opportunity does arise, we will take the op-portunity to revaluate the future capacity needs of Collingwoodtoestablishequitablecostsharingofan expansion.

WastewaterThe Wastewater Treatment Plant currently oper-ates at 65% capacity. This is as a direct result of twomajor factors.Thefirstbeing lowwatercon-sumption (175 litres used per capita per day) which translates to less wastewater being produced. The second being the continued work on sewer replace-mentandinfiltrationandinflowcontrol.Thesetwosignificant factors continue to lower averagedayflowstotheplantandasconsequencetheexpan-sion of the plant will not be needed for many years. It is currently projected that a major expansion will notberequiredforatleastanother14years.

FORECASTING & INFRASTRUCTURE NEEDS

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Project Description Benefit Cost Implementation Date

infraMAP infraMAP Software is a GPS-guided mobile GIS solution that allows seamless data collection and updates to a Utilities Asset Management Program. We are currently using this software in conjunction with our GIS when performing maintenance on every assetinthewaterfiltrationplant.

The data collected through infraMAP allows operators to monitor how often every piece of equipment is being usedand schedule maintenance accordingly. Increased tracking of our assets will allow for more accurate budgeting and future planning. This program will also act as a work order system. Administration and Supervisors can assign a work task to an individual operator to complete. The symbolic representation of theseworkorderswillallowgreaterefficienciesandlesstraveltime between jobs.

$0 Project has already been purchased

2015

Water & Energy Conservation & Public Awareness Strategy

We have partnered with the Environment Network to launch a conservation strategy that focuses on the often overlooked intrinsic relationship between water and energy. Building ‘EcoAction’ into Everyday Practice will begin in local public Collingwood elementary schools where school staff will develop individualised school behavioural based action plans facilitated by web based tools/resources and supported by a program coordinator. After which wider community outreach will be undertaken, focusing on water and energy conservation behav-iours in local households. Project Blue Bucket is a social marketing campaign, which will focus on living more sustainably, reducing both water (10L per day per household) and energy consumption. The campaign will include community demonstrations, tip sheets and resources for reducing water and energy consumption, including Save-On-Energy incentives/programs.

Increasing conservation practices through a coordinated pub-lic awareness strategy offers a cost effective and immediate approach to closing the gap between supply and demand, ultimately serving to reduce further expansions in infrastructure. In addition, conservation efforts provide opportunities for intro-ducing new products and services, supporting a green economy. The expected outcome of this strategy is to promote conserva-tion and the wise use of water and electricity, to strength com-munity relationships and support principles of environmental stewardship and sustainability.

$10,000 per year (2015, 2016, 2017)

2015

Wireless Transmitters A project that began in 2014 with the installation of 700 transmitters on commercial meters will continue in 2016 by installing wireless transmitters on over 9000 residential meters. Theinstallationofthesetransmittersisthefirststepindevelopinga truly customer focused water network.

Operations savings of over $180,000 per year. Payback of this project is 9 years. The efficiencies gained include: notmanaging a contract meter service, faster andmore efficient accountchanges,fewerestimates,quickernotificationofleaksand stopped meters, and a greater ability to help our customer manage their account by accessing meter readings on-demand.

$1,292,360 2016

UPCOMING WATER & WASTEWATER PROJECTS

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infraMAP infraMAP Software is a GPS-guided mobile GIS solution that allows seamless data collection and updates to a Utilities Asset Management Program. We are currently using this software in conjunction with our GIS when performing maintenance on every assetinthewaterfiltrationplant.

The data collected through infraMAP allows operators to monitor how often every piece of equipment is being usedand schedule maintenance accordingly. Increased tracking of our assets will allow for more accurate budgeting and future planning. This program will also act as a work order system. Administration and Supervisors can assign a work task to an individual operator to complete. The symbolic representation of theseworkorderswillallowgreaterefficienciesandlesstraveltime between jobs.

$0 Project has already been purchased

2015

Water & Energy Conservation & Public Awareness Strategy

We have partnered with the Environment Network to launch a conservation strategy that focuses on the often overlooked intrinsic relationship between water and energy. Building ‘EcoAction’ into Everyday Practice will begin in local public Collingwood elementary schools where school staff will develop individualised school behavioural based action plans facilitated by web based tools/resources and supported by a program coordinator. After which wider community outreach will be undertaken, focusing on water and energy conservation behav-iours in local households. Project Blue Bucket is a social marketing campaign, which will focus on living more sustainably, reducing both water (10L per day per household) and energy consumption. The campaign will include community demonstrations, tip sheets and resources for reducing water and energy consumption, including Save-On-Energy incentives/programs.

Increasing conservation practices through a coordinated pub-lic awareness strategy offers a cost effective and immediate approach to closing the gap between supply and demand, ultimately serving to reduce further expansions in infrastructure. In addition, conservation efforts provide opportunities for intro-ducing new products and services, supporting a green economy. The expected outcome of this strategy is to promote conserva-tion and the wise use of water and electricity, to strength com-munity relationships and support principles of environmental stewardship and sustainability.

$10,000 per year (2015, 2016, 2017)

2015

Wireless Transmitters A project that began in 2014 with the installation of 700 transmitters on commercial meters will continue in 2016 by installing wireless transmitters on over 9000 residential meters. Theinstallationofthesetransmittersisthefirststepindevelopinga truly customer focused water network.

Operations savings of over $180,000 per year. Payback of this project is 9 years. The efficiencies gained include: notmanaging a contract meter service, faster andmore efficient accountchanges,fewerestimates,quickernotificationofleaksand stopped meters, and a greater ability to help our customer manage their account by accessing meter readings on-demand.

$1,292,360 2016

1698 of 112



Stewart Road Reservoir Construction of a new reservoir at 43 Stewart Road. An Environ-mental Assessment has been completed but work will not proceed untilfundingfromthedeveloperisconfirmed.

This projectwill benefit the newdevelopment adjacent to theTenth Line as well as existing Georgian Meadows customers. Once this is built we will be able to decommission the Georgian Meadows booster pumping station.

Subject to developer funding

TBD

Carmichael Reservoir Upgrades ModificationstotheTedCarmichaelWestEndReservoirto allow for optional operation of the station as an “in-and-out” reservoir,withflowfillingthereservoir fromtheeastandflowingout only to the west. The majority of the work has been deferred to 2016 to balance the budget to account for the increase cost of the Hume Street capital work. It is intended to complete the work within the right-of-way during the road reconstruction of Highway 26 West.

This will enhance pressure in the West End of Collingwood and provideoperatorswithbettercontrolofflows.

$40,000 $310,000 (2016)

2015

Revised New Tecumseth Agreement It is proposed to prepare a new memorandum of understanding to establish the principals of costs for any proposed expansion.

Clearer understanding for all parties. N/A TBD

Revised Town of Blue Mountain Agreement

A new Agreement will be made with Town of Blue Mountain to pur-chase water as a regular system user.

Town of Blue Mountains will be taking less water but will be paying the same cost per cubic metres as all system users.

N/A 2015

Hume Street As recommended during the Water Supply & Distribution Model review as well as the Asset Management Plan & Sewer Fee Study, we will be replacing the 100mm cast iron watermain and sanitary sewer on Hume Street.

This project will be done in conjunction with Hume Street road work that is scheduled for 2015 which will reduce costs.

$2,000,000 2015

Intelex V6 Upgrade Our Drinking Water Quality Management System (DWQMS) is managed through Intelex. This web-based solution ensures our system is up-to-date and in compliance with all legal and regula-tory drinkingwater quality standards. We currently use Intelexfor: document control, task management, audit and management review, reporting and tracking of non-conformances, communica-tions management and tracking safety training.

With more customization opportunities, upgrading to Version 6 will allow us to provide better access to documentation for our operators. It will also eliminate some of the manual track-ingof things likeoperatorcertifications,JointHealth&SafetyCommittee documentation and follow up with customers. Once converted to V6, wastewater operators will also begin using the Intelex system.

$5,000 2015

17 99 of 112



Stewart Road Reservoir Construction of a new reservoir at 43 Stewart Road. An Environ-mental Assessment has been completed but work will not proceed untilfundingfromthedeveloperisconfirmed.

This projectwill benefit the newdevelopment adjacent to theTenth Line as well as existing Georgian Meadows customers. Once this is built we will be able to decommission the Georgian Meadows booster pumping station.

Subject to developer funding

TBD

Carmichael Reservoir Upgrades ModificationstotheTedCarmichaelWestEndReservoirto allow for optional operation of the station as an “in-and-out” reservoir,withflowfillingthereservoir fromtheeastandflowingout only to the west. The majority of the work has been deferred to 2016 to balance the budget to account for the increase cost of the Hume Street capital work. It is intended to complete the work within the right-of-way during the road reconstruction of Highway 26 West.

This will enhance pressure in the West End of Collingwood and provideoperatorswithbettercontrolofflows.

$40,000 $310,000 (2016)

2015

Revised New Tecumseth Agreement It is proposed to prepare a new memorandum of understanding to establish the principals of costs for any proposed expansion.

Clearer understanding for all parties. N/A TBD

Revised Town of Blue Mountain Agreement

A new Agreement will be made with Town of Blue Mountain to pur-chase water as a regular system user.

Town of Blue Mountains will be taking less water but will be paying the same cost per cubic metres as all system users.

N/A 2015

Hume Street As recommended during the Water Supply & Distribution Model review as well as the Asset Management Plan & Sewer Fee Study, we will be replacing the 100mm cast iron watermain and sanitary sewer on Hume Street.

This project will be done in conjunction with Hume Street road work that is scheduled for 2015 which will reduce costs.

$2,000,000 2015

Intelex V6 Upgrade Our Drinking Water Quality Management System (DWQMS) is managed through Intelex. This web-based solution ensures our system is up-to-date and in compliance with all legal and regula-tory drinkingwater quality standards. We currently use Intelexfor: document control, task management, audit and management review, reporting and tracking of non-conformances, communica-tions management and tracking safety training.

With more customization opportunities, upgrading to Version 6 will allow us to provide better access to documentation for our operators. It will also eliminate some of the manual track-ingof things likeoperatorcertifications,JointHealth&SafetyCommittee documentation and follow up with customers. Once converted to V6, wastewater operators will also begin using the Intelex system.

$5,000 2015

18100 of 112



Cogeneration The Waterwaster Plant will soon become a cogeneration facility. This project will convert biogas generated in the sludge treatment process into electricity. This will be used to lower the energy costs at the Wastewater Treatment Plant. This project is a carryover from 2014. Application for ECA approval has been submitted to the Minstry of the Environment and construction is proposed in 2015.

This project will generate energy savings of approximately $24,000 per year and considerably reduce our carbon foot-print and green house gas emissions. Funding for engineering this project was successfully obtained from the Ontario Energy Board (OEB).

$1,550,000 2015

Digestor Gas Boiler This project is a carryover from 2014 and will be completed as part of the Cogeneration project.

Secondary Boiler to run solely on digester gas to supplement the purchase of natural gas. Estimated savings of $20,400 per year with a pay back in approximately 6 years.

Included as part of Cogeneration Project above

2015

Odour Control This project is a carryover from 2014. Application for ECA approval has been submitted to the Ministry of the Environment and construction is proposed in 2015.

Carryover of Bio-scrubber project from 2014 to mitigate potential for odour emissions. It should be noted that this work would be requiredfortheexpansionandassuchisalongtermsolution.

$730,000 2015

Anageria The Wastewater Plant is planning to partner with Anaergia Inc., and become a Pyromethane demonstration site. This technology converts biosolids into renewable energy and a valuable fertiliz-er by-product. This potential project is still under review and it is hoped that funding will be made available to Anaergia.

This project has the potential of saving in excess of $400,000 per year in sludge disposal costs

Subject to funding and negotiations

TBD

ISO 14001 Accreditation The Water Treatment Plant was audited in 2013 and has been as successfully re-certifieduntil 2016. It is intended toexpand thisaccreditation to the Wastewater Treatment Plant.

This accreditation will ensure all water from source to tap to source is held to the same high standards and consistent in compliance with policies and regulations.

N/A 2015

19 101 of 112



Cogeneration The Waterwaster Plant will soon become a cogeneration facility. This project will convert biogas generated in the sludge treatment process into electricity. This will be used to lower the energy costs at the Wastewater Treatment Plant. This project is a carryover from 2014. Application for ECA approval has been submitted to the Minstry of the Environment and construction is proposed in 2015.

This project will generate energy savings of approximately $24,000 per year and considerably reduce our carbon foot-print and green house gas emissions. Funding for engineering this project was successfully obtained from the Ontario Energy Board (OEB).

$1,550,000 2015

Digestor Gas Boiler This project is a carryover from 2014 and will be completed as part of the Cogeneration project.

Secondary Boiler to run solely on digester gas to supplement the purchase of natural gas. Estimated savings of $20,400 per year with a pay back in approximately 6 years.

Included as part of Cogeneration Project above

2015

Odour Control This project is a carryover from 2014. Application for ECA approval has been submitted to the Ministry of the Environment and construction is proposed in 2015.

Carryover of Bio-scrubber project from 2014 to mitigate potential for odour emissions. It should be noted that this work would be requiredfortheexpansionandassuchisalongtermsolution.

$730,000 2015

Anageria The Wastewater Plant is planning to partner with Anaergia Inc., and become a Pyromethane demonstration site. This technology converts biosolids into renewable energy and a valuable fertiliz-er by-product. This potential project is still under review and it is hoped that funding will be made available to Anaergia.

This project has the potential of saving in excess of $400,000 per year in sludge disposal costs

Subject to funding and negotiations

TBD

ISO 14001 Accreditation The Water Treatment Plant was audited in 2013 and has been as successfully re-certifieduntil 2016. It is intended toexpand thisaccreditation to the Wastewater Treatment Plant.

This accreditation will ensure all water from source to tap to source is held to the same high standards and consistent in compliance with policies and regulations.

N/A 2015

20102 of 112


APPENDIX A

104 of 112

Collingwood Public Utilities Service BoardSTATEMENT OF FINANCIAL POSITION

December 2017 December 2016 December 2015 December 2014 December 2013PROFORMA PROFORMA BUDGET ACTUAL ACTUAL

FINANCIAL ASSETS Cash and bank 2,705,562 2,475,974 3,537,491 2,187,399 3,159,753 Accounts receivable 1,129,082 1,101,544 1,074,677 2,925,274 1,022,893 Unbilled revenue 397,151 387,464 378,014 368,794 415,600 Obligatory reserve funds overdrawn 0 0 0 0 693,238

----------------------------- ----------------------------- ----------------------------- ----------------------------- -----------------------------Total Financial Assets 4,231,795 3,964,982 4,990,181 5,481,467 5,291,484

----------------------------- ----------------------------- ----------------------------- ----------------------------- -----------------------------

LIABILITIES Demand Loan 0 0 0 0 0 Accounts payable and accruals 483,917 472,114 460,599 449,365 925,753 Southend Servicing Debenture 886,757 967,372 1,047,986 1,128,600 1,209,215 Debenture - Town of Collingwood 4,937,955 5,209,351 5,476,517 5,739,959 6,000,000 Deffered revenue - other 0 0 0 25,526 0 Deffered revenue - obligatory reserve funds 1,346,546 976,045 605,544 252,007 0 Employee future benefits 196,144 191,360 186,692 182,139 175,233

----------------------------- ----------------------------- ----------------------------- ----------------------------- -----------------------------Total Liabilities 7,851,319 7,816,241 7,777,338 7,777,596 8,310,201

----------------------------- ----------------------------- ----------------------------- ----------------------------- -----------------------------

Net Debt (3,619,524) (3,851,259) (2,787,157) (2,296,129) (3,018,717)----------------------------- ----------------------------- ----------------------------- ----------------------------- -----------------------------

NON-FINANCIAL ASSETS Property, plant and equipment 35,887,543 31,756,886 30,673,384 30,543,844 31,406,137 Inventory 131,787 128,572 125,436 122,377 101,556 Prepaid expenses 166,741 162,675 158,707 154,836 148,644

----------------------------- ----------------------------- ----------------------------- ----------------------------- -----------------------------Total Non-Financial Assets 36,186,071 32,048,133 30,957,527 30,821,057 31,656,337

----------------------------- ----------------------------- ----------------------------- ----------------------------- -----------------------------

ACCUMULATED SURPLUS 32,566,548 28,196,874 28,170,370 28,524,928 28,637,620

105 of 112

Collingwood Public Utilities Service BoardSTATEMENT OF OPERATIONS


Revenue Sale of water Residential 3,314,729 3,233,882 3,155,006 3,078,055 2,987,608 Commercial 957,563 934,207 911,422 889,192 874,013 New Tecumseth 1,177,075 1,116,262 1,058,344 1,099,538 1,032,562 Town of Blue Mountain 244,531 238,566 232,748 227,071 515,785 Process 98,068 100,069 102,112 107,486 144,730

--------------------------- --------------------------- --------------------------- --------------------------- ---------------------------5,791,965 5,622,987 5,459,632 5,401,342 5,554,698

--------------------------- --------------------------- --------------------------- --------------------------- --------------------------- Other revenue Hydrant maintenance 0 0 0 149,875 148,225 Interest income 6,000 6,000 30,000 31,901 25,002 Water meters 54,000 54,000 54,000 21,403 47,104 Operations management fee - CFB Meaford 211,900 206,700 201,700 209,422 200,100 Operations management fee - Devils Glen 0 0 75,675 101,802 96,296 Lease revenue (Collus) - Stewart Road Building 216,000 216,000 216,000 216,000 216,000 Lease revenue (Collus) - Computers 21,792 21,792 21,792 21,792 21,792 Water Connection Charges 47,383 46,228 45,100 56,889 68,097 Southend Servicing Special Charges 7,000 7,000 7,000 8,413 7,768 Miscellaneous revenue 27,917 27,273 26,600 47,428 32,095

--------------------------- --------------------------- --------------------------- --------------------------- ---------------------------591,993 584,992 677,867 864,925 862,479

--------------------------- --------------------------- --------------------------- --------------------------- ---------------------------

Total Revenue 6,383,957 6,207,979 6,137,499 6,266,267 6,417,177---------------------- ---------------------- ---------------------- ---------------------- ----------------------

Expenses Water Treatment 1,441,042 1,405,894 1,431,934 1,370,547 1,372,337 Water Distribution 1,522,559 1,485,424 1,673,584 1,510,977 1,354,988 Administration Building 424,028 413,686 403,596 399,925 382,720 Information Technology 211,501 206,343 201,310 153,015 168,747 Administration and general operations 980,735 956,815 933,478 1,025,832 1,254,125 Customer billing and collection 442,889 432,087 421,548 398,723 369,526 Waste Water Admin Fee (597,000) (582,400) (378,797) (184,779) 0

--------------------------- --------------------------- --------------------------- --------------------------- ---------------------------4,425,755 4,317,849 4,686,653 4,674,240 4,902,443

Amortization 1,831,042 1,727,398 1,660,960 1,605,815 1,570,421 Interest 128,314 136,229 144,442 149,228 94,803

--------------------------- --------------------------- --------------------------- --------------------------- ---------------------------6,385,111 6,181,476 6,492,056 6,429,283 6,567,667

--------------------------- --------------------------- --------------------------- --------------------------- ---------------------------

Net Revenue(Expense) from Continuing Operations (1,154) 26,503 (354,557) (163,016) (150,490)

Other Contributed tangible capital assets 4,370,828 0 0 53,201 10,713 Loss on disposal of tangible capital assets 0 0 0 (2,877) 0 Municipal Special Charges 0 0 0 0 121,327

--------------------------- --------------------------- --------------------------- --------------------------- ---------------------------4,370,828 0 0 50,324 132,040

--------------------------- --------------------------- --------------------------- --------------------------- ---------------------------

Annual Surplus (Deficit) 4,369,674 26,503 (354,557) (112,692) (18,450)

Accumulated Surplus, beginning of year 28,196,874 28,170,370 28,524,928 28,637,620 28,656,070------------------------ ------------------------ ------------------------ ------------------------ ------------------------

Accumulated Surplus, end of year 32,566,548 28,196,874 28,170,370 28,524,928 28,637,620============= ============= ============= ============= =============

106 of 112

Collingwood Public Utilities Service BoardSTATEMENT OF CASH FLOW


Cash flows from (for):

Operating Activities Annual Surplus 4,369,674 26,503 (354,557) (112,692) (18,450)

Non-Cash items: Amortization 1,831,042 1,727,398 1,660,960 1,605,815 1,570,421 Amortization of Vehicles 32,208 Loss on disposal 0 0 0 2,877 0 Employee future benefits 4,784 4,667 4,553 6,906 6,702 Contributed tangible capital assets 0 0 0 (53,201) (10,713)

--------------------------------- --------------------------------- --------------------------------- --------------------------------- ---------------------------------6,205,500 1,758,569 1,310,956 1,481,913 1,547,960

Changes in: Accounts receivable (27,539) (26,867) 1,850,597 (1,902,381) 1,569,906 Unbilled revenue (9,687) (9,450) (9,220) 46,806 (17,731) Accounts payable and accruals 11,803 11,515 11,234 (476,389) 148,269 Inventory (3,214) (3,136) (3,059) (20,821) 1,250 Prepaids (4,067) (3,968) (3,871) (6,192) 9,352 Deferred revenue other 0 0 (25,526) 25,526 0

--------------------------------- --------------------------------- --------------------------------- --------------------------------- ---------------------------------

Net change in cash from operations 6,172,797 1,726,663 3,131,111 (851,538) 3,259,006--------------------------------- --------------------------------- --------------------------------- --------------------------------- ---------------------------------

Capital activities Acquisition of tangible capital assets (5,961,700) (2,810,900) (1,790,500) (725,406) (1,362,970)

--------------------------------- --------------------------------- --------------------------------- --------------------------------- ---------------------------------

Financing activities Repayment of South-end Serv Debenture (80,614) (80,614) (80,614) (80,615) (755,614) Note payable -Town of Collingwood (271,396) (267,166) (263,442) (260,041) 2,000,000 Obligatory reserve funds 370,501 370,501 353,537 945,245 111,714

--------------------------------- --------------------------------- --------------------------------- --------------------------------- ---------------------------------Net change from financing 18,491 22,721 9,480 604,589 1,356,100

--------------------------------- --------------------------------- --------------------------------- --------------------------------- ---------------------------------

Net change in cash position 229,587 (1,061,516) 1,350,092 (972,354) 3,252,136

Cash position, beginning of year 2,475,975 3,537,491 2,187,399 3,159,754 (92,382)------------------------------ ------------------------------ ------------------------------ ------------------------------ ------------------------------

Cash position, end of year 2,705,562 2,475,975 3,537,491 2,187,399 3,159,754================= ================= ================= ================= =================

107 of 112


APPENDIX B

109 of 112

2015 Capital BudgetWater - Revised June 2015

GL - Project No.

New GL No. Project / Item2015 New Projected

2016 New Projected

2017 New Projected

Notes

Distribution 11045 18452 Replacement Water Main Projects $1,220,000.00 $0.00 $0.00 2015 budget allows for the full replacement of 100mm dia CI main on

Hume Street east of Minnesota; this project was originally budgeted in 2014 . Project also includes abandonment of 100mm dia main west of Minnesota and transfer of services to 400mm dia main. Also includes Beech Street and St. Paul sections of main replaced due to frozen services.

11047 18454 New and DC related Water Main Projects $0.00 $434,000.00 $1,501,400.00 No new watermain proposed in 2015. 2016: $434,000 for Mountain Road. 2017: $615,000 for Tenth Line (this will only proceed with Developer funding. DC study reports 14.6% benefit to existing users for section Developers will complete. CPU to extend trunk main to Mountian Road), $142,400 Cranberry to Georgian Link Trail, $744,000 North of First St., Maple to Highway 26 (as per rate study)

11020 18650 Replacement Valves $50,000.00 $30,000.00 $32,300.00 This item is to cover the cost of the replacement of valves. 2015: Includes two 400mm dia valves on Hume Street.

Included with new mains

New Valves $0.00 $0.00 $0.00 The addition of new valves to the existing distribution system to enhance system efficiency.

11050 18460 Replacement Hydrants $15,000.00 $15,000.00 $16,200.00 This item covers the cost of replacement of approximately 5 hydrants per year

18460 New Hydrants $0.00 $0.00 $0.00 The addition of new hydrants to the existing distribution system to enhance fire safety. None currently proposed

11150 18550 Replacement Water Services $10,500.00 $0.00 $0.00 Repalce old and lead services11110 and 11120

18550 New Residential and General Water Services $14,000.00 $14,000.00 $15,100.00 New services

11104 18300 Water Tower Refurbishment $20,000.00 $0.00 $0.00 2015: Release of maintenance security11011 18304 Booster Pumping Stations $25,000.00 $25,000.00 $0.00 2015: Replaced three pumps at Osler Pump Station due to failure.11076 18301 In Groud Reservoir Refurbishment $40,000.00 $310,000.00 $0.00 Upgrade West End Reservoir piping and valving to convert reservoir

into pipe in and pipe out. This was deferred until Highway Project proceeds as it involves a road cut, but upgrades are required to enhance pressures to the west and provide better control. 2015: Pipe laid when road cut complete. 2016: Work within the reservoir.

11044 18303 New In Ground Reservoir $0.00 $0.00 $3,690,000.00 Stewart Road reservoir: This project will only proceed if funded by the Developers. EA complete. $190,000 tendered value for design, $3.5M estimate construction and supervision; all carried in 2017 as timing is unconfirmed. The DC study shows the project costing 18.6% to benefit existing users.

Treatment 11019 18202 Non Potable Process Pump Station

Refurbishment$0.00 $0.00 $0.00 None currently proposed

18201 Non Potable Process Pump Station New additions

$0.00 $0.00 $0.00 None currently proposed

11023 18352 Water Treatment Plant Refurbishment $121,000.00 $400,000.00 $400,000.00 2015: Replacing two (2) Keystone air actuators $10,000, two (2) Valve controllers ($4000), PLC upgrades ($6,000), WFP automation ($6,000), server and software ($10,000) and various control equipment$25,000, all of which that have reached the end of there useful life. $60,000 for the zebra mussel control intake line. 2016: Membrane replacement. 2017: Membrane replacement (estimates based on Rate study and carry forward from 2013, 2014).

11022 18351 Water Treatment Plant Expansion and Upgrades

$0.00 $0.00 $0.00 This Project will continue to be deferred until funding arrangements have been finalised. This 2009 budget was revaluated in 2014 to $48M is for construction and supervision of the plant expansion from 31ML/d to 76ML/d. This will provide Collingwood with capacity up to 2031 (31Ml/d required). Negatiations with BWG and NT are in progess for the expansion to 76Ml/d. Final Design is complete and it is anticipated that construction will take 24mths. E of C has now expired.

11024 Regional Pipeline Equipment Refurbishment $0.00 $0.00 $0.00 None currectly planned. (Work billed to New Tecumseth)New Regional Pipeline Equipment $0.00 $0.00 $0.00 None currently planned (Work billed to New Tecumseth)

Customer 11040 18600 New and refurbished water meters $60,000.00 $1,353,000.00 $61,500.00 This item is to cover the cost of the water meter enhancement

program.The investment will include work to replace any malfunctioning or meters that have remote digital reading devices. In addition it will fund meter testing and refurbishment. 2016: mass installation of transmitters on all residential meters. Assumption 2017-2023 costs will be reduced following deployment; therefore $100,000 for future allocation used in 2016 for transmitter costs. Unused monies from previous years carried forward as well.

11025 19310 Water Conservation Capital Programs $15,000.00 $15,000.00 $16,200.00 Includes the toilet rebate program, Quench Buggy and Water/Energy Conservation Strategy with the Environment Network.

11055 Other Projects Capital Fees and Charges $25,000.00 $25,000.00 $25,000.00 This item covers the cost of consultants for other projects such as full cost recovery.

Vehicles/Roll 11090 19300 Vehicle Purchases for Water Department $5,000.00 $35,000.00 $37,700.00 2016: replace customer service vehicle with similar van. The old

vehicle will be sold.

Operations 11080 18401 Operation Centre Upgrades (All Departments) $10,500.00 $5,400.00 $5,400.00 2015 Miscellaneous upgrades

110 of 112

2015 Capital BudgetWater - Revised June 2015

Tools and 11070 19400 Large Tools And Equipment $45,500.00 $45,500.00 $49,000.00 Safety related equipment ($10,000), Large Tools And Equipment

($15,500), Cellular & Two Way Radio ($5,000), New mechanical tailgate for Truck ($15,000).

Computor 11172 19150 Computer Hardware/Equipment $39,000.00 $39,000.00 $42,000.00

11173 19201 Computer Software Admin Dept (Server & IFRS GP Upgrades)

$35,000.00 $25,000.00 $26,900.00 2015: Carry Over from 2014 to be used for new vehicle tablets.

11174 19250 Computer Software Workstations& Server $20,000.00 $20,000.00 $21,500.00 11175 19251 GIS Software & Equipment Purchases $20,000.00 $20,000.00 $21,500.00

Totals = $1,790,500.00 $2,810,900.00 $5,961,700.00

Contribution from Town (local improvements)

$0.00 $0.00 $0.00

Contribution from Others (Developers etc) $0.00 $4,370,828.00 2017: $4,379,828 will come from Developer for Stewart Road reservoir and 10th line trunk main. ($2,849,000 for reservoir, $1,521,828 for trunk main)

CPU Capital Funding $1,790,500.00 $2,810,900.00 $1,590,872.00

111 of 112

2015 Capital BudgetWastewater

Town GL No. Project / Item2014 Budget

Amount2014 Year-End

Forecast2014 Carry Over

2015 New Projected

2016 New Projected

2017 New Projected

Notes

9515 Sewer MH Grouting $50,000.00 $0.00 $50,000.00 $0.00 $50,000.00 $50,000.00 2015 budget allows for grouting and repair of manholes and sewers to reduce I and I flows

9505 Sanitary Sewer Replacement Program $2,408,800.00 $2,000,000.00 $408,800.00 $900,000.00 $0.00 $0.00 The Asset Management Plan and Sewer User Fees Studies completed in 2005 identified over $24 million in immediate sewer repair needs. This is a multi-year program for the renewal of our sanitary sewer assets. 2014 - Simcoe and Rodney Streets to be completed in 2015 ($408,800) 2015- Hume Street sewer rehabilitation in conjunction with the Road project ($900,000).

9550 Odour Control Study $750,000.00 $20,000.00 $730,000.00 $0.00 $0.00 $0.00 Carry over of Bioscrubber ptoject from 2014 to mitigate potential for odour emissions. It should be noted that this work would be required for the expansion and as such is a long term solution.

9550 Replace brick at WWTP $50,000.00 $0.00 $50,000.00 $0.00 $0.00 $0.00 Replace and repair brick and concrete(salvage insulation if possible) on RAS and digester building to be incorporated with cogen project.

9550 Co- generation project $1,200,000.00 $50,000.00 $1,550,000.00 $0.00 $0.00 $0.00 Implementation of co generation at WWTP using biogas generated in the digestion process. The engineering will be grant funded. Project will generate savings of approximately $24,000/year .

9550 Digester Gas Boiler $120,000.00 $0.00 $0.00 $0.00 $0.00 $0.00 Secondary Boiler to run soley on digester gas to supplement the purchace of natural gas. Estimated savings of $20,400/year pay back in approximately 6 years. This will be incorporated in the Cogen project

9550 Lagoon fencing $8,000.00 $0.00 $8,000.00 $0.00 $0.00 $0.00 Repair/refurbish fencing around lagoon to improve site security

9550 St Clair Pumping Station $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 9554 Black Ash Pumping Station $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 2022 Complete Refurbishment of Black Ash Creek Pumping Station to

Achieve Required Capacity Increase as Asset Management Plan and rate study

9554 Minnesota Pumping Station $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 2019 Upgrades to Minnesota Pumping Station in accordance with the Asset Management Plan and rate study

9550 DC and Rate study review $32,500.00 $32,500.00 $0.00 $0.00 $0.00 $0.00 9550 Replace Vehicle WWTP (Fllet Mngt) $0.00 $0.00 $0.00 $0.00 $0.00 $0.00 9550 Asset management $10,000.00 $10,000.00 $0.00 $0.00 $0.00 $0.00 Equipment management preventative, beakdown,emergency repair

tracking and expense management. Common platform for both water and wastewater plants 50% carried for wastewater

$4,629,300.00 $2,112,500.00 $2,796,800.00 $900,000.00 $50,000.00 $50,000.00

Funding from reserves $2,396,800.00 $900,000.00 $0.00 $0.00Funding from User fees $400,000.00 $0.00 $50,000.00 $50,000.00

Wastewater Treatment Plant and Pumping Station Projects

Totals

Other Wastewater Related Projects

Collection System Projects

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