WASTEWATER & TREATMENT - London, Ontario · 2015-03-02 · Wastewater and Treatment 2015 Budget and Forecast . The approved 2015 Wastewater and Treatment budget presents a balanced

WASTEWATER & TREATMENT Approved

www.london.ca/budget

Contents

Wastewater and Treatment Budget Overview Recommendations ..................................................................................................................................................................... 1 Executive Summary ................................................................................................................................................................... 2

Operating Budget 2015 Budget Highlights ........................................................................................................................................................... 22 2015 Object of Expenditure and Source of Revenue Summary .............................................................................. 23 2015 Operating Program Budget Summary .................................................................................................................... 24 Overview of Program Changes – Revenue ....................................................................................................................... 25 Overview of Program Changes – Expenditures ............................................................................................................. 26 Four Year Operating Forecast ............................................................................................................................................... 27 Performance Measures and Staffing ................................................................................................................................... 30

Capital Budget Capital Program .......................................................................................................................................................................... 31 Capital Expenditure Summary by Classification ........................................................................................................... 35 Capital Source of Financing Summary ............................................................................................................................... 36 Capital Expenditure Detail ...................................................................................................................................................... 37

Reserve Funds and Reserves .................................................................................................. 76

Debt Summary ................................................................................................................................. 81

Appendix A - 2015 Schedule of Rates & Charges ......................................................... 83

Appendix B – 2015 Business Plan & Business Cases ................................................. 87

Wastewater and Treatment 2015 Budget and Forecast

Recommendations Council resolved on January 27, 2015:

“That, on the recommendation of the Managing Director, Environmental and Engineering Services and City Engineer, with the concurrence of the Managing Director, Corporate Services & City Treasurer, Chief Financial Officer, the following actions be taken with respect to the 2015 Operating Budget, 2015 Capital Budget and associated forecasts for Wastewater and Treatment Services:

(a) the 2015 Operating Budget for Wastewater and Treatment Services BE APPROVED as submitted;

(b) the 2016 - 2019 Operating Forecast for Wastewater and Treatment Services BE RECEIVED for information;

(c) the 2015 Capital Budget for Wastewater and Treatment Services BE APPROVED as submitted;

(d) the 2016 - 2024 Capital Forecast for Wastewater and Treatment Services BE RECEIVED for information;

it being noted that all rates and charges related to the provision of Wastewater and Treatment Services, with the exception of charges related to the installation or replacement of Private Drain Connections, will increase by 7% effective January 1, 2015 as approved by Council on November 25, 2014.”

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Supporting Council’s 2010-2014 Strategic Plan by Responding to its Strategies

A Strong Economy:

• Invest in infrastructure – robust capital programs for growth, lifecycle renewal and system improvement

• Maintain competitive utility rates – fair and equitable rate structure that supports both water conservation and low rates for industry

• Establish a focused strategy for the downtown – capital investment in downtown infrastructure

• Build on the industrial land development strategy (ILDS) – ILDS projects included in the capital program

A Green and Growing City:

• Protect our natural heritage and environment – sewage treatment and stormwater management

• Promote a “green culture” and the fundamentals of sustainability – active participation by staff in Thames watershed, provincial, national and international teams setting direction and policy

• Reduce carbon footprint through wise actions that benefit our local, regional and global environment – energy reduction projects with significant results

• Facilitate, plan and manage growth for the greatest long-term benefit for all – updated Master Plans in 2014

• Demonstrate environmental leadership in all municipal operations – innovation and design awards

A Strong Economy

A Vibrant & Diverse

Community

A Green & Growing City

A Sustainable Infrastructure

A Caring Community

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• Establish London as a leader in green technologies – construction of the London

Wastewater Facility for wastewater treatment research, testing and commercial validation

A Sustainable Infrastructure:

• Invest in strong, safe, modern and efficient infrastructure networks – a balanced sewer replacement program with cutting-edge rehabilitation technologies

• Ensure affordability for users – fair and equitable rate structure that supports both water conservation and low rates for industry

• Achieve effectiveness, economy and efficiency in operations – achieving financial stability and optimizing treatment plants

One of the most significant undertakings of the new Council will be to update the City’s strategic plan that will cover the next 4 years. The newly elected Council will be establishing the vision and future direction for the City and the strategic objectives that support the vision. It is anticipated that the development of the new strategic plan will be completed in early 2015.

Overview

The approved 2015 Wastewater and Treatment operating and capital budgets represent the final step along the path to a financially sustainable wastewater conveyance, treatment and management system for Londoners. Continuing the theme of the 2014 budget, the 2015 Wastewater and Treatment operating and capital budgets support 4 core business objectives:

• Compliance • Growth • Efficiency • Best Management Practices

The financial sustainability plan endorsed by Council during the development of the 2013 budget and confirmed during 2014 budget deliberations continues to remain the foundation on which the 2015 operating and capital budgets were developed. Adherence to the plan will result in a 7% rate increase in 2015, with financial sustainability1 being achieved in 2016. The goal for rate increases beyond 2015 is a blended inflationary rate of 3% or less.

1 Financial Sustainability is defined as the achievement of annual rate increases that can be maintained at or near the annual rate of inflation based on a combination of CPI and the Construction Price Index with appropriate use of debt financing, adequate reserve funds and the appropriate investment in capital.

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The approved 2015 Wastewater and Treatment budget presents a balanced cost/revenue plan in the amount of $89.18 million. This represents an overall increase of 5.5% over 2014. Although rates are increasing 7%, lower water consumption is anticipated to partially offset the incremental revenue from the rate increase.

The approved operations portion of the budget totalling $36.0 million represents a 1.1% increase over 2014. There are a number of factors driving this 1.1% increase, including:

• $371,000 increase in personnel costs in accordance with existing employment agreements, plus the addition of two new positions in the Stormwater Management Unit to implement the numerous stormwater management facility projects scheduled over the next 10 years in accordance with the approved 2014 Development Charges Study and Growth Management Implementation Strategy (GMIS);

• $68,000 increase in administrative costs due in large part to a 1.9% inflationary increase in the corporate charges to Wastewater for services provided;

• $237,000 increase in equipment and purchased services costs primarily due to increased ash disposal and trucking costs reflecting the increased usage of the ash basin in recent years;

• $294,000 decrease in materials and supplies costs due to a decrease in the budgeted chemical requirements at the pollution control facilities based on a review of recent usage.

Operating $36.0 million Capital & Debt

Servicing $53.2 million

Total 2015 Approved Budget = $89.2 million

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The approved 2015 capital budget totals $77.6 million, up from $65.7 million in 2014. The total 5 year capital plan for 2015 to 2019 amounts to $378.3 million, up from the $289.7 million that the 5 year capital plan outlined in the 2014 approved Wastewater and Treatment capital budget. Major factors contributing to the increase in the capital forecast include:

• $38 million of new projects added to the capital plan over the next 5 years to support the City’s Industrial Land Development Strategy, two-thirds of which are assumed to be funded by senior levels of government.

• Variety of new or accelerated capital projects identified in the 2014 Development Charges Background Study and GMIS.

Debt servicing costs are projected to decrease from $13.7 million to $13.1 million and capital funding has been increased by $4.8 million to $40.0 million. It should be noted that at the current recommended rate increases there is no new rate supported debt anticipated with debt payments having peaked in 2014 from previously approved debt. This further supports the position that Wastewater and Treatment is nearing financial sustainability. The Wastewater and Treatment Service Area continues to build its reserve funds in accordance with the 20 Year Sewer System Plan and this will continue to be a high priority going forward. A sufficient reserve fund balance is required to manage future costs not yet articulated in the Pollution Prevention and Control Plan (in progress) and Treatment Plant Optimization projects (flood protection, asset management, effluent regulation changes and energy reduction), also in progress of being defined.

Impact on the Average Residential Ratepayer

The average cost to the homeowner for 2015 is forecasted to increase by $29 per year (based on projected 2014 consumption of 171.9 m3). At the revised rates for 2015, the homeowner’s cost for the year will be $475 or $1.30 per day.

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Recent Accomplishments

The Wastewater utility has successfully completed a number of initiatives in support of its 4 core business objectives – Compliance, Growth, Efficiency and Best Management Practices. Selected highlights of recent accomplishments include:

Compliance • Purchased and installed 13 permanent flow monitoring gauges to comply with Federal

Fisheries Act Regulation for Municipal Wastewater Effluents.

Budgeted Residential Cost at 2014 Rates (1)

Forecasted Residential Cost at 2014 Rates (2)

2015Increase (7%) (3)

Forecasted Residential Cost at 2015 Rates (4)

Sanitary $299 $281 $20 $301Storm $165 $165 $9 $174

$464 $446 $29 $475

(4) The forecasted residential cost in 2014 is based on an average residential consumption of 171.9 m3.

(1) The budgeted residential cost in 2014 was based on an average residential consumption of 181.2 m3.(2) The forecasted residential cost in 2014 has been restated using a revised average residential consumption estimate of 171.9 m3.(3) The forecasted average residential increase in Storm charges for 2015 is less than 7% due to the phase-in of the new Storm Drainage Charge.

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• Completed Phase One of the Pollution Prevention and Control Plan and commenced

Phase Two of this multi-year initiative.

Growth • Completed various growth-related studies and reports, including the Southwest Area

Sanitary Servicing Master Plan, 2014 Wastewater Servicing Master Plan Update, 2014 Stormwater Master Plan Update and 2014 Development Charges Background Study.

• Commenced Greenway Pollution Control Plant expansion detailed design (which is the start of a multi-year undertaking) to ensure sufficient treatment capacity is available to service future growth, particularly growth resulting from central London intensification and development in the southwest area of the city.

Efficiency • Developed a strategy and multi-year roadmap to optimize London’s wastewater

treatment plants, which will identify performance enhancement opportunities, test and model those opportunities to determine possible benefits, improve wet-weather performance, integrate with other plant needs (flood proofing, asset management, future effluent criteria, energy management, etc.) and provide input into future capital and operating forecasts.

• Rehabilitated designated sections of the existing Ridout Street brick sewer and Gordon Trunk sewer (multi-year projects) utilizing trenchless technology, which generates significant cost savings and reduced social disruption than alternative rehabilitation techniques.

Best Management Practices • Continued to negotiate a contract with a software vendor to undertake the

implementation of a Computerized Maintenance Management System, which will bring the City’s utility maintenance and work flow management up to industry standards. This will result in staff resource efficiencies, enhanced documentation, and cost tracking of maintenance activities, while also ensuring compliance with regulatory requirements.

• Completed construction of the Southern Ontario Water Consortium-London Wastewater Facility at Greenway Pollution Control Plant. Participation in this initiative will ensure London is at the forefront of future innovations in wastewater treatment technology.

• Implemented the new water and wastewater rate structure effective March 1, 2013. The new rate structure shifts a greater proportion of wastewater revenues to fixed charges, making the utility less susceptible to changes in water consumption. This is consistent with the recommendations of the PwC Value for Money audit2 conducted in 2011.

2 A Value for Money audit is conducted to assess the effectiveness and efficiency of an organization’s utilization of its funds.

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Economic Challenges

Notwithstanding the recent successes of the Wastewater service area, a number of economic challenges are currently affecting the 2015 budget as well as the forecast for the near future:

• Consumption • Inflation • Energy prices • Senior government funding programs

Although these are currently being managed, they could adversely affect future budgets.

Consumption • Despite the implementation of the new water and wastewater rate structure in March

2013 that shifted a greater proportion of total revenues to fixed charges, revenues continue to be heavily influenced by water consumption.

• Water conservation efforts, coupled with recent weather conditions that have not been conducive to water consumption, continue to drive water usage far lower than Administration previously forecasted.

• The chart below illustrates the declining water consumption trend, as well as the savings that have been achieved by an average residential user as a result of conservation efforts.

• A significant reduction in forecasted consumption was made for the 2014 budget, reducing consumption forecasts from 43.2M m3 to 41.0M m3 (5%) for 2014. A further anticipated reduction to 40.1M m3 (2%) per year is the basis for the 2015 budget.

• If recent consumption trends are indicative of future water use patterns, the Wastewater utility may be challenged to generate sufficient revenues to support future infrastructure needs under the current rate plan.

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Inflation • The outcome of achieving “financial sustainability” in the context of the Water and

Wastewater utilities is realizing future rate increases at or near the level of inflation. Administration is currently forecasting this future inflationary rate at approximately 3% based on a combination of consumer prices and construction price indices.3

• Should economic circumstances (nationally, provincially or locally) change, future rate forecasts could be positively or adversely affected.

Energy Prices • Although inflation is a significant factor in future rate forecasts, price increases in energy

commodities – specifically electricity and natural gas – could have a significant impact on future rate forecasts as they are a relatively large component of the Wastewater budget and are increasing at rates much higher than general trends.

• Currently, electricity costs are forecasted to increase at an average of 6.2%/year from 2015 to 2019; natural gas costs are forecasted to increase at an average of 9.9%/year during the same time period (based on City of London forecasts).

• While further energy efficiency projects are planned for the near future, increases in energy prices greater than forecasted above could adversely impact future budgets.

3 This inflationary-level rate is based on the Bank of Canada’s long-term inflation target of 2% and the historical non-residential building price index which has traditionally averaged approximately 4%/year.

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Senior Government Funding Programs

• Outside of the annual gas tax funding allocated to the Wastewater utility, there are currently no senior government funding programs benefiting Wastewater. Previously, Wastewater was able to access funding under the Infrastructure Stimulus program to assist in funding critical infrastructure works.

• Included in the approved 2015 Wastewater budget and described in further detail below are various projects related to the City’s Industrial Land Development Strategy. The first phase of these projects has been included in the budget based on the assumption that two-thirds of the required funding would be provided by senior levels of government. Should this funding not materialize, the capital plan will be adversely impacted and the scope of work will have to be reduced.

Revenue Overview

The following chart outlines the key factors driving the $4.65M (5.5%) increase in revenues in the approved 2015 budget:

Change ($000's)Explanation of Changes in Revenue

Revenue impact of reduced water consumption. Water consumption forecast has been reduced from 41.0M m3 in 2014 to 40.1M m3 in 2015 as a result of the continuing trend of water conservation.

(900)

7% rate increase for 2015

Total Change in Revenues

810

5,515

Change in other revenues, primarily due to an adjustment to the budget for hauled liquid waste disposal revenues to reflect recent billing trends. 25

4,655

Impact of year 3 of the three year phase-in of the new Storm Drainage Charges approved as part of the new water and wastewater rate structure implemented March 1, 2013.

Revenue impact of revised categorization of customer accounts due to exemptions from the Wastewater Infrastructure Charge and property size classification for Storm Drainage Charge calculation purposes.

(795)

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Expenditure Budget Overview

The following chart outlines the key factors driving the $4.65M (5.5%) increase in expenditures in the approved 2015 budget:

Capital Plan Overview

The Wastewater Service Area remains proactive with initiatives to ensure that this service continues to meet the demands and expectations of customers. Existing infrastructure requires significant renewal (replacement and rehabilitation) work to ensure that future generations and businesses are not faced with a wastewater system that is failing, unreliable and expensive to maintain. The City of London’s State of the Infrastructure Report 2013 identified a forecasted $22.8 million infrastructure gap in 10 years if not appropriately

371

68

237

(294)

382

3,027

1,820

(574)4,273 4,655

Increase in administrative costs, driven primarily by a 1.9% inflationary increase in the charges to Wastewater for corporate administrative services.

Increase in equipment and purchased services budgets, primarily due to increased ash disposal and trucking costs reflecting the increased usage of the ash basin in recent years.

Change ($000's)Explanation of Changes in Expenditures

Decrease in cost of debt servicing related to previously approved capital projects.Capital Related Subtotal

Total Change in Expenditures

Operating Related Subtotal

Increase in capital levy required to fund the life cycle renewal budget. This increase is necessary in order to progress towards achieving the target of 75% of future life cycle projects funded on a pay-as-you-go basis.

Increase in contributions to reserve funds to reflect changes to the 20 year plan and objective of maintaining sufficient reserve fund balances to support an estimated asset base of $4 billion.

Decrease in materials and supplies costs, due to a decrease in the budgeted chemical requirements at the wastewater treatment plants based on a review of the 3 year average chemical usage at these facilities.

Increase in personnel costs attributable to wage, salary & benefits adjustments in accordance with existing employment agreements. Included in the increase is $175,000 for two new positions in the Stormwater Management Unit to manage the increase in stormwater management facilities to be constructed in the next 10 years in accordance with the 2014 DC Study and GMIS.

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addressed. The Wastewater 20 Year Plan reflects the investment required to address the infrastructure gap.

The following chart highlights the 2015 capital plan and forecast for 2016-24:

Category 2015 Total 2016-2024 Total Lifecycle4 $25.6M $261.8M Growth5 $42.1M $222.5M

Service Improvement6 $9.8M $128.6M The 2015 capital plan breaks down into the following categories of spending:

Category 2015 Approved Budget Sewers $44.5M Pollution Control Plants & Pumping Stations $10.2M Stormwater Management Facilities $22.2M Other Miscellaneous Capital Projects $0.7M TOTAL $77.6M

Highlights of the 2015 capital plan are discussed in further detail below:

Lifecycle 2015 Approved Budget 2016-2019 Forecast 2020-2024 Forecast

$25.6M $111.5M $150.2M

• ES2414-15 Sewer Replacement Program (10 Year Program Forecast: $153.9M) – The sanitary and storm infrastructure lifecycle renewal program is an annual program intended to manage and ultimately maintain our sewer infrastructure at acceptable service levels. The program is integrated with other service areas within the organization for cost effectiveness and utilizes best management practices in an effort to return functionality to a wastewater system or subsystem. Systematic reinvestment in this aging infrastructure is critical to maintaining its functionality to meet the needs of local communities. The decision-making process for determining the proper balance of repair, renewal, and replacement is a function of the condition assessment, the lifecycle cost of the various rehabilitation options and the related risk reductions. Sewers are generally replaced on a priority basis, based on age, material, condition and capacity. Replacement of combined sewers is also a high priority. Sewers suited to remediation

4 Replacement or rehabilitation of existing infrastructure. 5 Provision of new services to growth areas of the city. 6 Initiatives to enhance the efficiency and/or effectiveness of services provided.

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are spot repaired in conjunction with other service and utility upgrades in selected areas.

• ES2693-15 Specialized Sewer Repairs (10 Year Program Forecast: $43.5M) – Innovative technologies are used to replace or repair infrastructure at a reduced cost. Sewer relining uses a polymer soaked felt tube cured by steam or hot water to create a new pipe within the old pipe without expensive and disruptive excavation. The work takes about 5 hours per sewer run (100 m) and consists of lining the sewer with a 1 cm to 2 cm thick polymer lining and then cutting the service connections with a track mounted robot. Sanitary service connections are blocked during this time which requires residents to minimize water usage. Both storm and sanitary sewers can be relined in full or in short sections which adds 50 years to their lifespan. The City also undertakes relining and other trenchless methodologies for manhole repairs, sewer spot repairs and watermain relining. The benefits of trenchless technologies are the capital cost savings because the road does not need to be excavated, the minimized social cost in terms of disruption (i.e. 1 day as opposed to 4 months), and the environmental benefit of not requiring new materials. Wastewater and Treatment is proactively relining sanitary and storm pipes greater than 100 years old that are suitable for relining. In addition there are 7.7 km of old brick sewers that have been analyzed and prioritized to be addressed over the next 15 years. Pipes in the 80 to 100 year period that are currently in good condition will be carefully monitored to ensure that appropriate pipes are relined at the right time. This will significantly improve the life expectancy of the City’s oldest pipes enabling the City to defer associated reconstruction costs for many years. Administration continues to explore “cutting edge” trenchless technologies with the primary goal of passing along cost savings to the citizens of London.

• ES2532-15 Stormwater Management Facility Rehabilitation Program (10 Year Program Forecast: $10.6M) – Unlike watermains, sewers and roads, stormwater management facilities are a relatively new type of asset for the City of London. However, similar to watermains, sewers and roads, stormwater management facilities require their own maintenance and rehabilitation program to maintain optimal performance and compliance with regulations. In 2010, an external consultant was engaged to prepare a report on the status of the City’s assumed stormwater management facilities. This report, coupled with experience gained over the past 4 years regarding individual facility attributes has given the Sewer Operations Division a greater understanding of the specific maintenance requirements of the existing stormwater management facilities. Documentation has been prepared for each facility (associated maintenance costs, level of time and effort required to maintain, etc.) and 2 full rehabilitations have been completed, which confirms the actual costs associated with stormwater management facility rehabilitations. Based on the knowledge gained over the past 4 years, Sewer Operations has developed a stormwater management facility rehabilitation model which

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projects the maintenance requirements for the next 20 years. This model, combined with the cost history from the 2 recent rehabilitations, forms the basis for the 2015 budget submission and 10 year forecast. From 2015 to 2024, Sewer Operations expects to complete 38 facility rehabilitations. The total cost of stormwater management facility rehabilitations is estimated at $10.625 million through 2024, up from the $4.45 million 10-year forecast in the 2014 approved Wastewater and Treatment budget. Given the recent knowledge gains in rehabilitating stormwater management facilities, it is anticipated that the average cost of rehabilitations will continue to decline as more history and experience is gained in this type of work. However, it is critical that sufficient funds are budgeted to support the rehabilitation and ongoing maintenance of this critical infrastructure.

Growth 2015 Approved Budget 2016-2019 Forecast 2020-2024 Forecast

$42.1M $140.8M $81.6M

• ES5247 Wonderland Road South Trunk Sewer & ES5260 Lambeth Southland Servicing Solution (2015 Approved Budget: $10.8M) - In accordance with the 2014 Growth Management Implementation Strategy (GMIS), the first phase of implementing the Southwest Area Sanitary Servicing Master Plan involves construction of two sections of trunk sanitary sewer. ES5247 involves the construction of 826 m of sewer on Wonderland Road South from Dingman Drive to Hamlyn Street. ES5260 funds the construction of 1,320 m of sewer on Hamlyn Street from Wonderland Road South to Campbell Street. These two sections represent a total length of over 2 km of sanitary sewer which will effectively connect the Lambeth, North Lambeth and North Talbot

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neighbourhoods to the Wonderland Pumping Station. These sewers will also allow for the opportunity for servicing the Wonderland Enterprise Corridor from approximately Dingman Drive to Exeter Road. Furthermore, from a non-growth perspective, the trunk sewers will enable future decommissioning of the Southland Wastewater Treatment Plant, which presently has operational costs up to 13 times higher than other City of London wastewater treatment facilities and is sensitive to loading because of its small size.

Industrial Land Development Strategy (10 Year Forecast: $55.7M)

For more than 40 years, the City of London has been engaged in developing industrial land. This work supports City Council’s priority of ‘A Strong Economy’ by attracting investment and jobs to London. Council’s 2011-2014 Strategic Plan specifically recognizes the importance of industrial land to London’s prosperity. Council directed the Civic Administration to develop a comprehensive strategy to guide industrial land development efforts. In March 2014, the Municipal Council adopted an Industrial Land Development Strategy (ILDS).

The estimated cost for land servicing in the first of two phases of the Industrial Land Development Strategy over the next 5 years is $120 million. The City of London is to contribute $40 million and is requesting $40 million from each of the federal and provincial governments, a three-way split, to support this strategy. Of the $120 million estimated total servicing cost for the first phase of the ILDS, $18.8 million has been earmarked for sanitary and storm servicing works in the Wastewater 5 year capital plan, while an additional $20.0 million has been included for stormwater management facilities to specifically support the ILDS initiative. One-third of these costs will be funded in the Wastewater Budget through Wastewater rates. A

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further $16.9 million for sanitary, storm and SWM servicing is included in the capital plan for the second phase of the ILDS beyond 5 years. Should funding from the federal and provincial governments not be available or not be provided to the extent envisioned, the capital plans will be adjusted accordingly to accommodate the funding available for the ILDS program.

Service Improvement 2015 Approved Budget 2016-2019 Forecast 2020-2024 Forecast

$9.8M $48.3M $80.3M

Pollution Control Plants Flood Proofing Works (10 Year Forecast: $11.2M)

On April 28, 2014, Civic Works Committee received a report concerning changes to the flood insurance deductibles at the wastewater treatment facilities. In a recent insurance renewal proposal, the deductible for four locations was increased to 3% of the insured value of the facility, or $500,000, whichever was greater. The resulting deductible values would range from $500,000 to almost $9 million per facility. The previous policy carried a $200,000 deductible for each site. To maintain a $200,000 deductible the City was advised that an additional annual premium of $1.25M would be required.

In lieu of incurring the higher annual insurance premium, it was determined that continued investments in flood proofing infrastructure to minimize the flooding risk at the City’s Wastewater Treatment facilities was a more cost effective option. In the 2014 budget, $8.0 million was included for flood proofing of Greenway Wastewater Treatment Plant starting in 2017. As part of the 2015 budget, a portion of these funds have been accelerated to 2015 and 2016 in order to commence the initial stages of these works. Additionally, a total of $3.2 million

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http://sire.london.ca/mtgviewer.aspx?meetid=687&doctype=AGENDA


has been added to the capital plan for flood proofing works at Vauxhall Wastewater Treatment Plant starting in 2016.

The requirements and scheduling of flood proofing work needed at other plants is being considered in the Wastewater Treatment Optimization Plan.

Wastewater Treatment Optimization (10 Year Forecast: TBD)

Wastewater treatment plant expansion projects have historically driven plant improvement projects. However, most of the wastewater treatment facilities in London are not slated for expansion in the next 20 years; growth needs are being accommodated by the decreasing trend in water demands. Notwithstanding this, plant capacity performance is still an issue for other reasons:

• For wet weather / combined sewer overflow (CSO) treatment; • To allow for significant asset reconstruction due to age and condition; • To meet more stringent effluent criteria in the future; and, • For new initiatives (e.g. ILDS) which may constrain capacity.

Building new wastewater treatment capacity is expensive and speculative given the difficulty of projecting future flows and the effects of water conservation across the system. A guideline for new treatment capacity is in the range of $2.6-$3.3 million/MLD based on the present Greenway Wastewater Treatment Plant expansion. Major expansions and upgrades typically require significant up-front work including approvals and engineering which must be initiated well in advance of the actual need. Optimization of existing works may allow smaller and more targeted works which can add capacity in smaller increments. These projects can be planned and budgeted accordingly. Some optimizations may be as simple as applying for re-rating of existing facilities while others will involve removal of bottlenecks and smaller capital projects. Once the potential capacity has been identified it can be used to coordinate other works including those involving common processes allowing an integrated design for all anticipated works. Asset reconstruction, for example, will reduce treatment capacity while the repairs are underway, and can only be done if sufficient capacity remains available. A robust and flexible treatment system with the ability to transfer flows between plants will help provide the capacity needed to complete these repairs with significant savings in comparison to new construction.

A preliminary capacity/optimization study for the Adelaide, Oxford, Pottersburg and Vauxhall plants was undertaken in 2013. It reviewed possible optimization of the existing sewage treatment processes. The next step will focus on the wet weather flows at these plants and the potential average daily flow capacity available by reducing the peaking factors. Further

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steps will integrate results with other plant needs. In short, the optimization process will involve the following steps:

• Identify performance enhancement opportunities (done) • Plant testing and modeling to quantify the opportunity (next step) • Wet weather performance (next step) • Integrate other plant needs for flood proofing, asset management (physical

infrastructure), future effluent criteria and energy efficiency (future step) • Develop changes to capital and operating budget forecasts (future step)

While existing budgets are in place in anticipation of some of the outputs of the optimization strategy (e.g. flood proofing works noted above, replacement of equipment annual programs, etc.), it is anticipated that additional capital investment will be necessary pending the results of the optimization process. New and arising issues for treatment plants that could be included in future capital forecasts are reducing chemical and energy use (i.e. costs), and flood proofing works at other plants. It is therefore critical that financial flexibility (e.g. sufficient reserve fund balances, adequate debt capacity, etc.) be maintained to accommodate these future capital needs.

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Future Regulations

In August 2007, the Ontario Ministry of the Environment and Climate Change (MOECC) filed the Regulation and Guidelines for the Safe Drinking Water Act, 2002 Financial Plans requirement (O. Regulation 453/07). This adds to the requirements of PSAB 3150 (Public Sector Accounting Board) for the tracking of tangible capital assets and requires utilities to not only track assets but to also ensure the adequate funding of replacements. The Water Opportunities Act 2010 includes requirements to have sewer utilities follow suit and move to truly sustainable systems and to ensure that the infrastructure gap is ultimately eliminated.

The Wastewater and Treatment area is preparing for a new wave of Canada-wide effluent criteria. Effluent discharge objectives will be determined within the next five years for receiving waterways. Monitoring will be required for an array of parameters including acute and chronic toxicity. Although London is fortunate to have plants that already surpass virtually all of the new standards, a position many other municipalities are now under pressure to meet, staff continue to proactively review all pending changes in regulations to ensure compliance can be maintained in the future.

Federal criteria also have an impact on the way the City manages its combined sewers. By Federal estimates the national cost for sewer separation is $15 billion (and this is thought to be on the low side). London’s cost to separate sewers has yet to be determined and in large part will be additional costs to the 20 year plan. Until the exact parameters and limits are defined, additional work and related costs needed to meet the new reality cannot be determined. As stricter regulations are imposed, the existing system grows larger and older and as maintenance costs escalate, extending the lifecycle and improving the performance of the existing infrastructure will become essential to addressing the infrastructure gap.

The City is developing a Pollution Prevention and Control Plan (PPCP) to provide a “road map” for the phased implementation of infrastructure projects that will mitigate the impacts of combined sewer overflows (CSO’s) and bypasses to the Thames River. The PPCP will align with the City’s commitment to environmental stewardship and the protection of water resources and is following the Municipal Class Environmental Assessment Master Plan process with public, agency, stakeholder and First Nation consultation. Phase 1 established a priority ranking of CSO and bypass discharge points through a review of Thames River historical benthic studies, water quality, CSO and bypass discharge points, and flow monitoring data. Phase 2 (in progress) will include Thames River characterization, hydrologic and hydraulic modeling, and development of a long and short list of CSO and bypass control alternatives. Phase 3 will evaluate alternatives and select preferred solutions resulting in a 20 year implementation plan and completion of the Master Plan. The PPCP will be completed in its entirety in 2-3 years and will be submitted to Council for approval.

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This budget supports the above noted requirements and challenges, and many others, while managing the utility’s revenue and the City’s debt strategy. The proposed direction continues to position London to reach infrastructure sustainability. Through a sound proactive business approach, rate increases can be managed, imposing the least impact on affected rate payers. Acquiring the appropriate level of financing to meet current legislative requirements and support routine operations, maintenance and replacement programs is imperative to public health, safety and environmental protection.

Future Forecasted Rate Increases

The Wastewater service area is poised to achieve financial sustainability – future rate increase forecasts at or near the rate of inflation with appropriate use of debt financing, adequate reserves and appropriate investment in capital – in accordance with the rate forecast endorsed by Council during 2013 budget deliberations and confirmed in the 2014 budget. Consistent with the forecast presented in the 2014 Wastewater Budget, a 7% increase is required for 2015, with inflationary-level increases forecasted for 2016 and beyond (currently anticipated to be around 3%) based on the information currently available. As noted above, there are a number of factors influencing the 2015 Wastewater budget and forecasts which may have a positive or adverse impact on future rates.

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Conclusion

The City of London’s sanitary and storm drainage systems have a replacement value of approximately $4.0 billion. Many components of the system are at or beyond their anticipated service life. The major challenge is the work that must be undertaken to properly sustain, improve and grow the system through operating and capital funding.

A well-managed sewerage system supports the health, well-being and prosperity of our urban community, and is an integral part of the City’s strategic priorities regarding A Green & Growing City, A Sustainable Infrastructure and A Strong Economy. Becoming financially sustainable provides value for future generations and stable rate increases for current customers.

The approved 2015 Wastewater and Treatment budget presents a balanced cost/revenue plan in the amount of $89.18 million based on a 7% rate increase for 2015, consistent with the financial sustainability plan endorsed by Council during the development of the 2013 budget and confirmed during 2014 budget deliberations. This will result in an increase of $29/year for the average residential customer.

At just $1.30/day for the average residential customer, the approved 2015 Wastewater and Treatment Budget ensures:

• Compliance with regulatory requirements; • Capital investments in existing and future growth needs; • Efficiency measures, now and in the future; • Sound Financial Management; and, • Achieving financial sustainability in 2016:

o Move towards a sustainable infrastructure; o Reserve fund balances approaching more adequate levels; and o Financial flexibility to accommodate future needs

21

Wastewater and Treatment

2015 Operating Budget

With Forecasts

($000's) %

2015 Approved Budget $89,184

2014 Approved Budget $84,529

Increase Over 2014 Budget $4,655 5.5%

1.5%

Total Rate Increase 7.0%


($000's)

2015 Budget Highlights

Impact of Reduced Water Consumption & Phase-in of Storm Charges

Wastewater Usage

Charges, 46%

Wastewater Infrastructure Charges, 21%

Storm Drainage

Charges, 27%

Other Revenues, 6%

Revenue Budget $89,184

Administrative Expenses, 3%

Billings & Customer

Service, 2%

Purchased Services, 3%

Materials & Supplies, 11%

Equipment & Rentals, 4%

Personnel Costs, 17%

Capital Funding & Debt

Servicing, 60%

Expenditure Budget $89,184

22

2013 2014 2015 Change Prior

Actuals Revised Approved from Year

Budget Budget 2014 Change

Revenues

Sanitary Sewer System Charge 11,233

Wastewater Usage Charge (1) 28,212 39,237 41,019 1,782 4.5%

Wastewater Infrastructure Charge (1) 13,023 17,813 18,751 938 5.3%

Storm Drainage System Charge 19,012 22,220 24,129 1,909 8.6%

Other Revenues 5,382 5,259 5,285 26 0.5%

Total Revenues 76,862 84,529 89,184 4,655 5.5%

Operating Related

Personnel Costs 13,880 14,775 15,146 371 2.5%

Administrative, Other & Recovered Expenses 1,879 2,305 2,373 68 3.0%

Billings & Customer Service 2,084 2,081 2,081 0 0.0%

Purchased Services 3,096 2,990 3,070 80 2.7%

Materials & Supplies 9,026 10,392 10,098 (294) -2.8%

Equipment & Rentals 2,963 3,084 3,241 157 5.1%

Total Operating Related 32,928 35,627 36,009 382 1.1%

Financial Expenses

Debt Servicing Costs 11,380 13,687 13,113 (574) -4.2%

Contribution to Reserve Funds (2) 20,863 23,615 26,642 3,027 12.8%

Capital Levy 11,691 11,600 13,420 1,820 15.7%

Total Financial Expenses 43,934 48,902 53,175 4,273 8.7%

Total Expenditures 76,862 84,529 89,184 4,655 5.5%

(2) Includes contributions to reserves for Economic Development, Local Improvements and Self Insurance.

Object of Expenditure and Source of Revenue


2015 Object of Expenditure and Source of Revenue Summary

($000's)

(1) Reflects revised categorization of revenue accounts after the implementation of the new rate structure effective March 1, 2013.

23


2015 Operating Program Budget Summary

($000's)

2013 2014 2015 Change Prior

Actuals Revised Approved from Year

Budget Budget 2014 Change

Total Revenues 76,862 84,529 89,184 4,655 5.5%

Engineering & Operations

Wastewater & Drainage Engineering & Stormwater Management 2,485 2,652 2,820 168 6.3%

Sewer Operations 7,764 8,434 8,489 55 0.7%

Wastewater & Treatment Operations 17,761 19,431 19,413 (18) -0.1%

General Administration 2,834 3,029 3,206 177 5.8%

Billings & Customer Service 2,084 2,081 2,081 0 0.0%

Total Engineering & Operations 32,928 35,627 36,009 382 1.1%

Total Capital Contribution & Financial Expenses 43,934 48,902 53,175 4,273 8.7%

Total Expenditures 76,862 84,529 89,184 4,655 5.5%

Program

24

7% rate increase for 2015

Total Change in Revenues

810

5,515

Change in other revenues, primarily due to an adjustment to the budget for hauled liquid waste

disposal revenues to reflect recent billing trends.25

4,655

Impact of year 3 of the three year phase-in of the new Storm Drainage Charges approved as

part of the new water and wastewater rate structure implemented March 1, 2013.

Revenue impact of revised categorization of customer accounts due to exemptions from the

Wastewater Infrastructure Charge and property size classification for Storm Drainage Charge

calculation purposes.

(795)


Overview of Program Changes - Revenue

($000's)

Change

($000's)Explanation of Changes in Revenue

Revenue impact of reduced water consumption. Water consumption forecast has been

reduced from 41.0M m3 in 2014 to 40.1M m

3 in 2015 as a result of the continuing trend of

water conservation.

(900)

25

371

68

237

(294)

382

3,027

1,820

(574)

4,273

4,655

Decrease in cost of debt servicing related to previously approved capital projects.

Capital Related Subtotal

Total Change in Expenditures


Operating Related Subtotal

Increase in capital levy required to fund the life cycle renewal budget. This increase is necessary

in order to progress towards achieving the target of 75% of future life cycle projects funded on a

pay-as-you-go basis.

Increase in contributions to reserve funds to reflect changes to the 20 year plan and objective of

maintaining sufficient reserve fund balances to support an estimated asset base of $4 billion.

Decrease in materials and supplies costs, due to a decrease in the budgeted chemical

requirements at the wastewater treatment plants based on a review of the 3 year average

chemical usage at these facilities.

Increase in personnel costs attributable to wage, salary & benefits adjustments in accordance with

existing employment agreements. Included in the increase is $175,000 for two new positions in

the Stormwater Management Unit to manage the increase in stormwater management facilities to

be constructed in the next 10 years in accordance with the 2014 DC Study and GMIS.

Increase in administrative costs, driven primarily by a 1.9% inflationary increase in the charges to

Wastewater for corporate administrative services.

Increase in equipment and purchased services budgets, primarily due to increased ash disposal

and trucking costs reflecting the increased usage of the ash basin in recent years.

Change

($000's)

Overview of Program Changes - Expenditures

($000's)

Explanation of Changes in Expenditures

26

Revenue

Operating Expenditures


Four Year Operating Forecast

Rate increases of 7% in 2015 and 3% thereafter have been incorporated into the 20 Year Sewer System Plan.

While the declining water consumption trend helps to postpone future works, it continues to place significant

pressure on the City’s capacity to raise funds to operate, maintain and improve the existing system. The

implementation of the new rate structure in 2013 partially offsets declining consumption by shifting a greater

portion of total revenues to fixed charges. However, the City remains heavily dependent on water consumption

to generate sufficient revenues. The projected rate increases are offset by an anticipated average annual net

consumption reduction of 1% per year until 2021. An average net consumption increase of 0.75% per year is

then forecasted until 2034. Deviations from these projections, changes to the economic climate or legislative

requirements may result in modifications to the 20 Year Sewer System Plan to ensure sustainability is achieved

and maintained.

Fixed revenue streams (Wastewater Infrastructure Charge, Storm Drainage Charge, etc.) are forecasted to

increase at 1% per year in addition to the proposed rate increase for each respective year due to growth in the

number of customer accounts.

For 2016 to 2019, operating expenditures are projected to increase at an average annual rate of 1.7% per year.

The main driver of these increases is electricity costs, which are expected to increase by a total of 25% by 2019,

assuming these costs are not curbed by further energy efficiency projects. Natural gas costs are also expected

to rise by 35% by 2019, adding further pressure to operating expenditures.

27

Capital Financing

The lifecycle renewal program is to be 52% funded by capital levy in 2015. This type of "pay as you go"

financing is projected to gradually increase to 75% by 2018. Achieving the 75% target is consistent with the

objective of ensuring that lifecycle renewal projects are not funded through debt.

Contributions to reserve funds will change depending on the timing of capital projects identified in the 20 Year

Sewer System Plan. It is imperative that adequate reserve fund balances be maintained to support an asset

base with an estimated replacement value of at least $4 billion.

The 1.7% average annual increase is lower than various inflationary indicators published by the Bank of Canada

and other financial institutions (most forecasting a long-term inflationary target of 2%/year) and aligns with the

objective of maintaining operating-related increases at or below approximately 2%/year. With construction cost

increases traditionally averaging approximately 4%/year over the past 10 years according to the Non-Residential

Building Construction Price Index (NRBCPI), maintaining operating-related increases at 2%/year is critical to

maintaining an overall blended increase of 3%/year.

28

2015 2016 2017 2018 2019

Approved Budget Budget Budget Budget

Budget Forecast $ % Forecast $ % Forecast $ % Forecast $ %

Sewer Rate Increase Forecast 7.0% 3.0% 3.0% 3.0% 3.0%

Revenues

Wastewater Usage Charge 41,019 41,936 917 2.2% 42,863 927 2.2% 43,804 941 2.2% 44,534 730 1.7%

Wastewater Infrastructure Charge 18,751 19,500 749 4.0% 20,278 778 4.0% 21,087 809 4.0% 21,929 842 4.0%

Storm Drainage System Charge 24,129 25,101 972 4.0% 26,113 1,012 4.0% 27,165 1,052 4.0% 28,260 1,095 4.0%

Other Revenues 5,285 5,419 134 2.5% 5,557 138 2.5% 5,700 143 2.6% 5,847 147 2.6%

Total Revenues 89,184 91,956 2,772 3.1% 94,811 2,855 3.1% 97,756 2,945 3.1% 100,570 2,814 2.9%

Engineering & Operations

Wastewater and Drainage Engineering &

Stormwater Management2,820 2,824 4 0.1% 2,828 4 0.1% 2,834 6 0.2% 2,841 7 0.2%

Sewer Operations 8,489 8,631 142 1.7% 8,734 103 1.2% 8,826 92 1.1% 8,962 136 1.5%

Wastewater & Treatment Operations 19,413 19,654 241 1.2% 19,979 325 1.7% 20,526 547 2.7% 21,179 653 3.2%

General Administration & Financial Expenses 3,206 3,168 (38) -1.2% 3,241 73 2.3% 3,405 164 5.1% 3,489 84 2.5%

Billings & Customer Service 2,081 2,081 0 0.0% 2,081 0 0.0% 2,081 0 0.0% 2,081 0 0.0%

Total Engineering & Operations 36,009 36,358 349 1.0% 36,863 505 1.4% 37,672 809 2.2% 38,552 880 2.3%

Capital Contribution & Debt Servicing

Debt Servicing Costs 13,113 13,009 (104) -0.8% 12,848 (161) -1.2% 12,136 (712) -5.5% 12,008 (128) -1.1%

Contribution to Reserve Funds 26,642 27,039 397 1.5% 28,100 1,061 3.9% 30,092 1,992 7.1% 29,509 (583) -1.9%

Capital Levy 13,420 15,550 2,130 15.9% 17,000 1,450 9.3% 17,856 856 5.0% 20,501 2,645 14.8%

Total Capital Contribution & Debt Servicing 53,175 55,598 2,423 4.6% 57,948 2,350 4.2% 60,084 2,136 3.7% 62,018 1,934 3.2%

Total Expenditures 89,184 91,956 2,772 3.1% 94,811 2,855 3.1% 97,756 2,945 3.1% 100,570 2,814 2.9%

Incr./(Decr.)

Over 2018


Four Year Operating Forecast

($000's)

Program

Incr./(Decr.)

Over 2015

Incr./(Decr.)

Over 2016

Incr./(Decr.)

Over 2017

29

2013 2014 2015 2016 2017 2018 2019

Performance Measures Actual Revised Approved

Activity Measures

Volume of wastewater treated (billion litres) 76.2 85.8 86.7 87.7 88.6 89.4 90.3

Percentage of sewer system replaced/rehabilitated/relined 1.3% 1.5% 1.3% 1.4% 1.4% 1.4% 1.4%

Number of PDC's replaced (1)

58 75 75 75 75 75 75

Percentage of sanitary sewer system flushed (2)

86% 86% 81% 76% 67% 67% 67%

Percentage of stormwater management facilities rehabilitated (3)

8.3% 16.6% 10.0% 3.3% 3.3% 13.3% 13.3%

Efficiency Measures

Average annual costs for residential customers (4)

$428 $446 $475 $489 $504 $519 $535

Residential consumption (m3 per year) 176.3 171.9 168.9 167.1 165.2 163.3 161.6

% BOD (Bio-chemical oxygen demand) removed - treatment 99% 99% 99% 99% 99% 99% 99%

Effectiveness / Quality / Satisfaction Measures

Percentage of flooding complaints addressed 100% 100% 100% 100% 100% 100% 100%

Compliance - # of MOE effluent violations (5)

6 1 1 1 1 1 1

Number of blocked sewers per 100km length 0.5 0.5 0.5 0.5 0.5 0.5 0.5

Percentage of stormwater management facilities constructed as per

the “Just in Time” Design and Construction ProcessN/A N/A 100% 100% 100% 100% 100%

Staffing Budget Budget

Full-time Equivalents # 173.9 172.9 175.5 175.5 175.5 175.5 175.5

Increase / (Decrease) over previous year (1.0) 2.6 0.0 0.0 0.0 0.0

Full-time Employees # (6) 162 161 163 163 163 163 163

Increase / (Decrease) over previous year (1.0) 2.0 0.0 0.0 0.0 0.0

NOTES:

(1) Sewer Operations only.

(2) Current level of service requires the sanitary sewer collection system to be completely flushed once every 2 years.

(3) Based on 30 existing stormwater management facilities.

(5) Not necessarily indicative of a risk to public health.

Forecast


Performance Measures and Staffing

(4) The average cost per household estimate for 2015 - 2019 is based on 2014 forecasted consumption of 171.9 m3

and does not incorporate future projected

consumption declines. Actual cost per household may be lower as a result.

(6) Increase in full-time employees is for 2 new positions to support the Stormwater Management Unit. A business case has been prepared to support this request.

30


2015 Capital Budget

With Forecasts

Service Grouping: Wastewater and Treatment 2015 Approved -

Committee: Civic Works Committee 2016-2019 Forecast -

Objective:

Page

NumberProject Number Project

37 ES1825-15 Sewer Video Inspection (CCTV) 400

69 ES2092-15 Sump Pump Grant Program 100

69 ES2108 Thames River Clear Water Revival 30

44 ES2204 Colonel Talbot Pumping Station 600

37 ES2414-15 Sewer Replacement Program 11,422

70 ES2442-15 Extension of Sanitary Services 200

70 ES2464-15 Separation and CSO Program 1,480

70 ES2468 Problematic Sump Pump Discharge Program 200

71 ES2469 Southland Pollution Control Plant Conversion 1,550

44 ES2494 North Talbot Sanitary Sewer Extension (SS15A) 557

38 ES2523-15 Sewer Construction, Extensions and Repairs 800

38 ES2532-15 Stormwater Management Facility Remediation Program 1,000

38 ES2693-15 Specialized Sewer Repairs 3,700

71 ES3054 Burbrook Trunk Storm Sewer Phase IV 4,800

72 ES3059 Dayus Creek Trunk Storm Sewer Replacement 400

38 ES3067 Trunk Sewer Condition Assessment 150

39 ES3080 Greenway Incinerator Refurbishment 2,875

45 ES3083 Infill & Intensification Corridors Sanitary Sewer Servicing 250

Life Cycle

RenewalGrowth

Service

Improvement


Capital Program

($000's)

77,562$

300,701$

The Wastewater and Treatment capital program addresses life cycle renewal, growth and service improvement needs within the City’s

pollution control plants, pump stations, and sanitary and stormwater collection systems. The elements in this program are generally

identified through the sewer inspection program, known deficiencies as addressed by the appropriate engineering studies and documents

such as the Sanitary and Storm Sewerage Master Plans aligned with the principles of the 20 Year Sewer System Plan.

31




Capital Program

($000's)

77,562$

300,701$

Page


39 ES3094 Greenway Section 1 Aeration Refurbishing 500

72 ES3097 Vauxhall and Pottersburg Pumping Stations and Forcemains 945

72 ES3098Greenway Wastewater Treatment Plant Flood Proofing and Effluent

Pumping Station100

40 ES3106Commissioners Road Sewer Replacement (Viscount Road to

Wonderland Road)800

40 ES3112 Flow Monitor Equipment Replacement 50

45 ES4410 Funding of Exemptions for Sanitary and Storm 225

46 ES5016 Wonderland Pumping Station Optimization 500

40 ES5084-15 Replacement Equipment Wastewater Treatment Plants 750

47 ES5145 Sanitary Sewer Internal Oversizing Subsidy 165

47 ES5146 Infill & Intensification Nodes Sanitary Sewer Servicing 243

48 ES5147 Sanitary Industrial Servicing 500

41 ES5150-15 Pumping Station Improvements 420

49 ES5247 & ES5248 Wonderland/Wharncliffe Road South Trunk Gravity Sewer 4,057

50 ES5252 Kilally South Trunk Sanitary Sewer 200

50 ES5253 Riverbend Trunk Sanitary Sewer Extension 405

50 ES5256 Exeter Road Trunk Sanitary Sewer (SS12B) 605

51 ES5260 Lambeth Southland Servicing Solution (SS3A) 6,741

41 ES5419 Asset Management of the Sewer System 320

52 ES5428 Infill & Intensification Nodes Storm Sewer Servicing 689

52 ES5429 Storm Sewer Internal Oversizing Subsidy 1,736

53 ES5520 Community Growth Trunk Storm Sewer Works 758

Life Cycle

RenewalGrowth

Service

Improvement

32




Capital Program

($000's)

77,562$

300,701$

Page


42 ES6074Pottersburg Wastewater Treatment Plant CSO and Inlet Works

Upgrade2,000

53 ES6090 Storm Industrial Servicing (Trunk and Internal Oversizing) 2,600

54 ID2058 Innovation Park - Sewer Oversizing Works 550

42 ES2428-15Erosion Remediation in Open Watercourses Management and

Reclamation440

55 ES2681 Mud Creek Erosion and Flooding Remediation Works 2,414

55 ES2688 Mud Creek Remediation South 40

56 ES3021 Land (Expropriation Negotiations) 100

56 ES3022 Contingency Facility 416

57 ES3202 Dingman On-line Stormwater Management Flood Control Facility #2 560

57 ES3203 Hyde Park - Stanton Drain Phase II 288

59 ES3209Stormwater Unidentified Municipal Class Environmental Assessment

Addendums50

59 ES5425 Interim Works as Identified in Environmental Assessment 200

59 ES5427 Pre-Assumption Monitoring 400

60 ES6095 Stormwater Management Industrial Servicing 5,002

60 ESSWM-DCB4 SWM Facility - Dingman Creek No. B-4 3,419

60 ESSWM-DCNLP9 SWM Facility - Dingman Creek North Lambeth No. P9 263

62 ESSWM-NLP7 SWM Facility - North Lambeth No. P7 250

62 ESSWM-NLP8 SWM Facility - North Lambeth No. P8 250

63 ESSWM-OV1 SWM Facility - Old Victoria No. 1 1,577

Life Cycle

RenewalGrowth

Service

Improvement

Stormwater Management Facilities

33




Capital Program

($000's)

77,562$

300,701$

Page


63 ESSWM-PKR SWM Facility - Parker 655

64 ESSWM-PD3 SWM Facility - Pincombe Drain No. 3 367

64 ESSWM-PD4 SWM Facility - Pincombe Drain No. 4 354

65 ES3020-RVBTC SWM Facility - River Bend Trib 'C' 2,920

65 ESSWM-SC2 SWM Facility - Stoney Creek No. 2 299

67 ESSWM-WO3 SWM Facility - White Oak No. 3 425

68 ESSWM-WO4 SWM Facility - White Oak No. 4 500

Total by Classification

Total 2015 Wastewater & Treatment Capital $77,562

Life Cycle

RenewalGrowth

Service

Improvement

$25,627 $42,130 $9,805

34

Prior

Years

2014 2015 2016 2017 2018 2019

2020 to

2024

Total

Life Cycle Renewal 60,314 19,320 25,627 26,527 32,544 23,808 28,678 150,229 367,047

Growth 67,073 36,953 42,130 52,983 40,809 32,246 14,801 81,636 368,631

Service Improvement 32,196 10,915 9,805 9,480 13,985 11,750 13,090 80,325 181,546

Total 159,583 67,188 77,562 88,990 87,338 67,804 56,569 312,190 917,224

Prior

Years

2014 2015 2016 2017 2018 2019

2020 to

2024

Total

Tangible Capital Asset 154,018 66,653 76,287 88,410 85,858 66,854 55,169 307,940 901,189

Non-Tangible Capital Asset (2)

5,565 535 1,275 580 1,480 950 1,400 4,250 16,035

Total 159,583 67,188 77,562 88,990 87,338 67,804 56,569 312,190 917,224

Wastewater & Treatment

(2) A separate Non-Tangible Capital Asset (Non-TCA) section has been added because Non-TCA projects could be classified as life cycle renewal, growth, or

service improvement. Non-TCA are expenditures that will not result in the creation of a tangible asset (having physical substance). It should be noted that the

Non-TCA summary only includes projects that are 100% Non-TCA.


Capital Expenditure Summary by Classification

($000's)

Wastewater & Treatment

1) The 2014 Approved Capital Budget increased from $65.7 million to $67.2 million mainly due to budget increases to two Stormwater Management Facility

projects ($0.8 million), private drain connections, local improvements (homeowner's share) and developer contributions to establish budgets for three

stormwater projects, offset by substituting owners' share with rate supported funding with respect to the Hyde Park Industrial Park ($-1.1 million).

35


Prior

Years (1)

2014 2015 2016 2017 2018 2019

2020 to

2024 Totals

RATE SUPPORTED

Sewer Capital Rates 4,953 11,600 13,420 15,550 17,000 17,856 20,501 112,671 213,551

Sewage Works Reserve Fund 53,239 18,270 17,695 18,633 28,975 17,193 17,550 94,509 266,064

Industrial Oversizing Sewer Reserve Fund (2)

2,065 (35) 550 2,580

Sewage Treatment Plant Capacity Reserve Fund 4,226 2,500 6,726

Debenture 24,910 24,910

Debenture (Industrial Oversizing Reserve Fund) 6,030 6,030

Total Rate Supported 95,423 32,335 31,665 34,183 45,975 35,049 38,051 207,180 519,861

NON-RATE SUPPORTED

Debenture - Non Rate Supported (City Services -

Sewer Levies Reserve Fund) (3)

17,751 9,000 5,464 4,838 5,500 26,700 69,253

Debenture - Non Rate Supported (City Services -

Major SWM Levies Reserve Fund) (3)

4,869 6,815 13,725 23,294 8,087 6,551 6,104 27,266 96,711

City Services Sewer Levies Reserve Fund (3)

6,817 6,645 8,491 5,713 6,043 5,307 973 5,600 45,589

City Services Major SWM Levies Reserve Fund (3)

8,677 6,037 7,166 10,547 7,751 6,748 3,792 9,474 60,192

City Services Corporate Services Levies Reserve

Fund (3)

50 50 550 50 418 1,050 2,168

Federal Gas Tax Grant 21,551 5,500 5,500 5,500 5,500 5,500 5,500 27,500 82,051

Senior Government Funding 5,401 4,201 7,268 7,935 1,067 25,872

Other Contributions (Prov Grants, Cash Payments) 4,495 856 100 664 664 664 664 7,420 15,527

Total Non-Rate Supported 64,160 34,853 45,897 54,807 41,363 32,755 18,518 105,010 397,363

Total Sources of Financing 159,583 67,188 77,562 88,990 87,338 67,804 56,569 312,190 917,224

(2) 2014 negative amount reflects change in financing to other rate supported sources.

(3) Growth splits for 2014 and beyond are consistent with the 2014 Development Charges Study.


Capital Source of Financing Summary

($000's)

(1) Prior years' totals only include projects with current or future budget allocations.

36

Service Grouping: Wastewater and Treatment

Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total

400 400 400 400 400 2,000 4,000

2015 Financing: Capital Levy

11,301 11,422 13,572 19,732 12,978 14,378 81,834 165,217

2015 Financing:

Capital Levy $5,260

Reserve Fund 3,412

Federal Gas Tax Grant 2,750

Total Financing $11,422

5,038 1,528 1,600 8,166

Note: * represents projects that are classified as non-tangible capital assets. These expenditures will not result in the creation of a tangible asset (having physical

substance).

The design and construction of replacement sanitary sewers, storm

sewers and private drain connections determined by the City's

Internal Utilities Coordination Committee (UCC) and the needs of

other Engineering Divisions on a priority basis. Sewers are

replaced based on age, material, condition and capacity. Sewers

in need of remediation are either fully replaced or spot repaired in

conjunction with other service and utility upgrades in selected

areas. A video inspection program assists with review and ultimate

selection of specific repairs.

Category: Life Cycle Renewal

ES2473 Gordon Trunk Sewer Rehabilitation


Capital Expenditure Detail

($000's)

An annual program to accurately assess the condition of the sewer

system using closed circuit video (CCTV).

* ES1825-15 Sewer Video Inspection (CCTV)

This project is the continuation of several capital projects along the

existing Gordon Trunk sewer where trenchless technology is fully

utilized to rehabilitate this aging pipe rated in poor and

deteriorating condition.

ES2414-15 Sewer Replacement Program

37


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total




($000's)

450 800 800 800 1,100 1,100 4,300 9,350

850 1,000 275 275 1,100 1,100 6,875 11,475

4,700 3,700 3,700 4,400 4,700 4,500 22,500 48,200


1,510 150 150 150 300 2,260


* ES3067 Trunk Sewer Condition Assessment

ES2693-15 Specialized Sewer Repairs

Bi-annual program to assess structural condition and hydraulic

capacity of trunk sanitary and combined sewer systems using

closed circuit television (CCTV) and sonar technology.


ES2523-15 Sewer Construction, Extensions and Repairs

An annual program to extend the life of existing sewers using

trenchless technologies. The program includes cured-in-place

pipe (CIPP), internal spot repairs and lining of brick sewers.


An annual program that provides ongoing maintenance to

assumed stormwater management facilities on a proactive and

reactive basis.


substance).

ES2532-15 Stormwater Management Facility Remediation

Program

An annual program to alleviate existing and potential flooding

conditions through extensions/completion of sewer sections and

repairs. Work is completed in conjunction with the City's local

annual road construction program. This project also includes the

construction of pathways to sewers that are currently inaccessible.

38


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total




($000's)

300 500 500 500 2,500 4,300

1,966 390 2,875 1,207 1,000 5,700 13,138

2015 Financing: Reserve Fund

500 2,500 3,000


450 2,550 3,000

ES3094 Greenway Section 1 Aeration Refurbishing

To refurbish the east and west aeration tanks in Section 1 at

Greenway Wastewater Treatment Plant. Project includes

engineering, demolition and reconstruction of walkways, railings,

interior and exterior tank walls and replacement of aeration

process equipment.

ES3074 Trunk Sewer Upgrades

To refurbish the Section 1 aeration tank at the Vauxhall

Wastewater Treatment Plant. Project includes engineering,

demolition and reconstruction of walkways, railings, interior and

exterior tank walls and potential aeration equipment upgrades.

Improvements to trunk sanitary, storm and combined sewers to

accommodate redevelopment and growth while reducing or

eliminating overflows and rehabilitating deteriorating sewers.

To refurbish the incinerator for existing and additional sludge

management capacity at Greenway Wastewater Treatment Plant.

ES3099 Vauxhall Section 1 Aeration Refurbishment

ES3080 Greenway Incinerator Refurbishment

39


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total




($000's)

100 800 900

50 50 50 50 50 250


350 350

500 750 1,550 1,300 1,300 1,300 8,800 15,500


To replace existing sanitary and storm sewers and private drain

connections on Commissioners Road from Viscount Road to

Wonderland Road that are in poor condition. Work to be done in

conjunction with transportation project TS1470 - Road Widening.


Wastewater and Drainage Engineering manages a flow monitoring

program which includes the use of up to 30 flow monitoring loggers

and associated equipment to measure sanitary and/or storm sewer

flows.

To replace storm sewers and improve drainage on Fanshawe Park

Road from Adelaide Street to McLean Drive. Work to be done in

conjunction with transportation project TS1475 - Road Widening

and water project EW3702 - Watermain Replacement.

ES3106 Commissioners Road Sewer Replacement (Viscount

Road to Wonderland Road)

ES3112 Flow Monitor Equipment Replacement

ES5084-15 Replacement Equipment Wastewater Treatment

Plants

Replacement of aged or non-repairable mechanical, electrical and

instrumentation equipment to maintain and upgrade current

operations.

ES4424 Fanshawe Park Road Sewer Replacement

40


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total




($000's)

420 420 420 420 840 2,520 5,040


1,790 320 2,110


402 100 100 602

1,500 1,500

To rebuild and resurface deteriorated access roads and roads

within plants and pumping stations.

ES5150-15 Pumping Station Improvements

* ES5419 Asset Management of the Sewer System

ES5424 Roadway Improvements to Wastewater Treatment

Plants

A program to close information gaps, improve inventory

knowledge, identify system deficiencies and potential remedies for

the sanitary sewerage system that are not covered by other

programs or that may be required to conform with changing

provincial and federal regulations.

Replacement of filtration membrane modules for the Oxford

Wastewater Treatment Plant.

An annual program to monitor pumping stations (36),

replace/upgrade various components such as hydraulic, structural,

mechanical, electrical and instrumentation equipment and review

of tributary flows to ensure adequate future capacity is available.

ES6073 Oxford Wastewater Treatment Plant Membrane

Replacement


substance).

41


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total




($000's)

1,000 2,000 3,000


420 440 1,320 320 320 320 1,600 4,740


200 1,700 1,900

5,250 5,250


ES2428-15 Erosion Remediation in Open Watercourses

Management and Reclamation

ES6074 Pottersburg Wastewater Treatment Plant CSO and

Inlet Works Upgrade

To capture and partially treat combined sewer overflows through

the use of chemically enhanced primary treatment (CEPT) to

provide rapid removal of suspended solids and BOD in the primary

tanks and allow for split flow to aeration.

To undertake remediation works required to maintain adequate

conveyance capacity and minimize erosion impact within open

watercourses and tributaries.

To provide remediation of significant erosion and hydraulic

deficiencies in existing open watercourses and stormwater

management facilities.

ES2478 Existing Ditches and Open Watercourses

ES2476 Elliot-Laidlaw Remediation Works

To undertake remediation works to minimize flooding and erosion,

improve conveyance and eliminate existing deficiencies at a

tributary of the Dingman Creek by constructing the required

stormwater management measures to meet the City and Provincial

requirements.

42


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total




($000's)

420 420 420 420 2,100 3,780

50 70 70 70 70 350 680

2,000 2,000 4,000

46,408 (1,069) 45,339

Total Life Cycle Renewal 60,314 19,320 25,627 26,527 32,544 23,808 28,678 150,229 367,047

An annual program for reconstruction of various municipal drains

throughout the City of London under the Drainage Act, as initiated

by property owner petition, in order to alleviate flooding on private

and public property.

ES4825-15 Municipal Drain Reconstruction

ES4834-15 Municipal Drain Maintenance

Balance of approved projects for prior years

comparison


comparison

Minor repairs to any municipal drain within City boundaries in

accordance with the Drainage Act. Provincial grants subject to

availability. City share of individual projects varies, and this

request reflects average only. Any drainage works constructed

under this Act relating to the construction or improvement of

drainage works by local assessment must be maintained and

repaired by each local municipality.

ESSWM-STMRM Dingman Creek and Other Stream

Remediation

To design and construct the Dingman Creek Stream

Remediation/Reclamation works.

43


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total

600 5,500 6,100

50 50 100 200

557 2,208 2,765

447 3,578 4,025

2015 Financing: Development Charges

ES2498 North Talbot Sanitary Sewer Extension (SS15C)

Construction of new trunk sanitary sewer extension on Campbell

Street from Wharncliffe Road North through future subdivision

development. Growth splits are consistent with the 2014

Development Charge Study. 100% Growth Related (100% DC

Rate Supported).

Construction of new trunk sanitary sewers on Colonel Talbot Road

to connect Talbot Village to new Colonel Talbot Pumping Station.

Growth splits are consistent with the 2014 Development Charge

Study. 100% Growth Related (100% DC Rate Supported).



($000's)

ES2435 PDC's Installed with Claimable Urban Works

Cost reimbursement for installing Private Drain Connections

(PDC's) for existing properties at the time trunk sewers are

installed in conjunction with the Urban Works Reserve Fund

initiated projects. Constructing PDC's in this manner avoids

significant connection costs, disruption and road restoration costs.

ES2494 North Talbot Sanitary Sewer Extension (SS15A)

Category: Growth

ES2204 Colonel Talbot Pumping Station

New project to construct a pumping station to handle flows from

Talbot, Westfield, Crestwood and Southwinds Pumping Station.




44


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total



($000's)

Category: Growth

250 250 159 159 159 159 795 1,931

Reserve Fund $25

Development Charges 225

Total Financing $250

525 225 225 975* ES4410 Funding of Exemptions for Sanitary and Storm

A contingency amount for the provision of growth triggered sanitary

sewer infrastructure as part of scheduled transportation projects.

Future budget amounts to be verified through detailed engineering

studies. Growth splits are consistent with the 2014 Development

Charge Study. 90% Growth Related (90% DC Rate Supported).

ES3083 Infill & Intensification Corridors Sanitary Sewer

Servicing

2015 Financing:

This project provides funding necessary to reimburse the Urban

Works Reserve Fund (UWRF) for both the non-growth share and

the growth share attributable to exempted development (ie.

Industrial and some Institutional) for sanitary and storm sewer

works. The Development Charges study is statutorily required to

identify the shares of various projects attributable to non-growth

and to different types of development (ie. Residential, Institutional,

Commercial and Industrial-RICI). Project will need to be re-

evaluated in 2015, pending DC policy decisions on new approach

to funding DC exemptions (Industrial and Institutional).



substance).

45


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total



($000's)

Category: Growth

250 250

250 250

500 500

200 1,453 1,653

ES5016 Wonderland Pumping Station Optimization

Installation of an additional duty pump at Wonderland Pumping

Station. Growth splits are consistent with the 2014 Development



Expand and upgrade existing pumping station to handle additional

flow of 18.2 MLD due to industrial growth in southeast London.

Growth splits are consistent with 2014 Development Charge Study.

100% Growth Related (90.3% DC Rate Supported).


substance).

* ES4415 Wastewater Future Development Charges Studies

2019

To undertake Future Development Charges Study in 2019.



* ES4416 Wastewater Future Development Charges Studies

2024

To undertake Future Development Charges Study in 2024.



ES5132 East Park Pumping Station Expansion

46


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total



($000's)

Category: Growth

14 165 89 89 89 89 445 980

243 243 243 243 243 1,215 2,430

2015 Financing:

Reserve Fund $36



ES5145 Sanitary Sewer Internal Oversizing Subsidy

New project to provide funding source for sanitary sewer oversizing

claims by land developers. Claims are to be paid in accordance

with Schedule 8 of the current DC By-law. Review and approval of

these claims is provided by the Development Finance Division.

Growth splits are consistent with 2014 Development Charge Study.

100% Growth Related (100% DC Rate Supported).


ES5146 Infill & Intensification Nodes Sanitary Sewer Servicing

A contingency amount for the provision of growth triggered sanitary

sewer infrastructure. Future budget amounts to be verified through

detailed engineering studies. Growth splits are consistent with

2014 Development Charge Study. 85% Growth Related (85% DC

Rate Supported).

47


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total



($000's)

Category: Growth

500 500 5,000 6,000 1,600 8,500 22,100

Senior Government Funding $333



6,000 6,000

ES5147 Sanitary Industrial Servicing

2015 Financing:

Sanitary servicing of future light and general industrial land to

provide an adequate inventory of large block "shovel ready" land in

strategic locations. Project coordinated with other industrial

servicing accounts (Internal Servicing, Storm, Stormwater

Management and Water). Growth splits are consistent with the

2014 Development Charge Study. 100% Growth Related (100%

DC Rate Supported).

ES5233 Vauxhall Wastewater Treatment Plant Capacity

Upgrades

Expansion/optimization of treatment capacity at Vauxhall

Wastewater Treatment Plant. Growth splits are consistent with the


Rate Supported).

48


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total



($000's)

Category: Growth

525 4,057 359 2,868 7,809

Reserve Fund $203

Development Charges 3,854


305 305

2015 Financing:

Construction of a gravity sanitary sewer from the Bostwick area

southerly to the proposed Wonderland-Dingman Pumping Station.

ES5247 constructs 1,230m of sanitary sewer along Wharncliffe

Road South to Wonderland Road. ES5248 will construct trunk

sewer from Wharncliffe Road/Wonderland Road to the proposed

Wonderland-Dingman Pumping Station. Growth splits are

consistent with the 2014 Development Charge Study. 95% Growth

Related (95% DC Rate Supported) and 100% Growth Related

(100% DC Rate Supported).

ES5247 and ES5248 Wonderland/Wharncliffe Road South

Trunk Gravity Sewer

ES5250 North Talbot Sanitary Sewer Extension (SS15B)

Construction of a 300mm forcemain from the proposed

Wonderland-Dingman Pumping Station forcemain through the

Bostwick area outletting to the Greenway Sewer System via the

Westmount trunk sewer system (Southside - SS23). This work will

meet both interim and longer term servicing objectives by allowing

flows to be directed back to the Greenway Wastewater Treatment

Plant through the Westmount Trunk Sewer System. Growth splits

are consistent with the 2014 Development Charge Study. 100%

Growth Related (100% DC Rate Supported).

49


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total



($000's)

Category: Growth

200 999 1,199

1,713 405 2,118

605 4,838 5,443

For the extension of municipal sanitary sewer on Exeter Road from

Breck Avenue to Meadowgate Boulevard (1,000m) and northerly.


Study (SS12B). 100% Growth Related (100% DC Rate

Supported).


Extension of the Riverbend Trunk Sanitary Sewer through Phase II

West Kains Subdivision to Oxford Street West as identified in the

Riverbend Sanitary Servicing Study. Growth splits are consistent

with the 2014 Development Charge Study. 100% Growth Related



Construction of the Kilally South Trunk from the Edgevalley

Phase I Subdivision part way to Kilally Road. Routing as identified

in the Kilally South Area Plan. Growth splits are consistent with

the 2014 Development Charge Study. 100% Growth Related


ES5252 Kilally South Trunk Sanitary Sewer


ES5253 Riverbend Trunk Sanitary Sewer Extension

ES5256 Exeter Road Trunk Sanitary Sewer (SS12B)

50


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total



($000's)

Category: Growth

350 850 6,741 7,941

Reserve Fund $270



15,000 15,000

2,500 2,500

To construct trunk sanitary sewers in the existing Lambeth area to

service growth areas as well as provide trunk sanitary servicing for

existing unserviced area of Lambeth. Trunk sewers will outlet to

the proposed Wonderland Pumping Station and allow

decommissioning of the existing Southland Wastewater Treatment

Plant. Growth splits are consistent with the 2014 Development


ES5260 Lambeth Southland Servicing Solution (SS3A)

Project funds a major upgrade of Wonderland Pumping Station.



ES5263 Southwest Capacity Improvement

Southwest Capacity Improvements are works to create more

conveyance capacity within the Dingman/Wonderland systems.

The scope of works is subject to further study and monitoring.



ES5264 Wonderland Pumping Station Upgrade

2015 Financing:

51


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total



($000's)

Category: Growth

400 400

689 689 689 689 689 3,445 6,890

Reserve Fund $48



1,736 1,149 1,149 1,149 1,149 5,747 12,079

ES5428 Infill & Intensification Nodes Storm Sewer Servicing


substance).


Project to provide a funding source for storm sewer oversizing

claims by land developers. Claims are to be paid in accordance

with Schedule 8 of the current development charges by-law.

Review and approval of these claims is provided by Development

Finance Division. Growth splits are consistent with the 2014


Rate Supported).

2015 Financing:

ES5429 Storm Sewer Internal Oversizing Subsidy

Project to provide a contingency amount for the provision of growth

triggered storm sewer infrastructure. Future budget amounts to be

verified through detailed engineering studies. Growth splits are

consistent with the 2014 Development Charge Study. 93% Growth

Related (93% DC Rate Supported).

Evaluation of alternatives for handling biosolids generated at City

Wastewater Treatment Plants. Growth splits are consistent with

the 2014 Development Charge Study. 16.9% Growth Related

(16.9% DC Rate Supported).

* ES5402 Bio-Solids Master Plan

52


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total



($000's)

Category: Growth

800 800

758 758 758 758 758 3,790 7,580

2,600 800 900 900 5,200

Senior Government Funding $1,733



ES5431 Adelaide Wastewater Treatment Plant Expansion

Phase II

Phase II includes addition of aerated and final clarifier tanks and

upgrading process operations in order to comply with MOE

requirements. Growth splits are consistent with the 2014

Development Charge Study. 100% Growth Related based on

flow/capacity (100% DC Rate Supported).

ES5520 Community Growth Trunk Storm Sewer Works

Project to provide a contingency amount for the provision of major

trunk storm sewers along arterial roadways to support growth

triggered storm sewer infrastructure. Future budget amounts to be

verified through detailed engineering studies. Growth splits are

consistent with the 2014 Development Charge Study. 100%



2015 Financing:

Storm servicing of future light and general industrial land to provide

an adequate inventory of large block "shovel ready" land in

strategic locations. Project coordinated with other industrial

servicing accounts (Internal Servicing, Sanitary, Stormwater

Management and Water). Growth splits are consistent with the


DC Rate Supported).

ES6090 Storm Industrial Servicing (Trunk and Internal

Oversizing)

53


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total



($000's)

Category: Growth

7,715 550 8,265


365 660 2,142 2,343 4,001 9,511

ID2058 Innovation Park - Sewer Oversizing Works

Project to assume stormwater management and oversizing sewer

works for Innovation Park Phase III. Coordinated with CAO's

Industrial Land Project ID1168, and Water Oversizing Project

EW3606. 58.2% Growth Related (5.6% DC Rate Supported).

To undertake remediation to minimize flooding/erosion, improve

conveyance and eliminate existing deficiencies within the main

channel of Dingman Creek. Construct a water resources

management system to meet the stormwater requirements

associated with land use changes and optimize the performance of

this system to meet the Provincial water quality and flood control

objectives. Growth splits are consistent with the 2014

Development Charge Study. 14% Growth Related (14% DC Rate

Supported).

ES2475 Dingman Creek Main Channel Remediation Works

2015 Financing: Industrial Oversizing Reserve Fund

54


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total



($000's)

Category: Growth

3,360 950 4,310

2,700 2,414 5,114

600 40 640

To undertake remediation works to minimize and eliminate the

existing erosion, conveyance and flooding deficiencies for the

north portion of the Mud Creek system within the Mud Creek East

subwatershed. Growth splits are consistent with the 2014

Development Charge Study. 100% Growth Related (94.1% DC

Rate Supported).



ES2681 Mud Creek Erosion and Flooding Remediation Works

ES2485 Old Oak Servicing

To undertake remediation works to minimize and eliminate the

existing erosion, conveyance, and flooding deficiencies of the

south portion of the Mud Creek subwatershed. Construction of the

stormwater management system to meet the Provincial flood

control and water quality objectives. Growth splits are consistent

with the 2014 Development Charge Study. 34.4% Growth Related

(33.2% DC Rate Supported).

ES2688 Mud Creek Remediation South

To improve conveyance capacity and undertake erosion

remediation works to address the existing deficiencies and support

growth in the area of the Old Oak Drainage Area, from Exeter

Road to Dingman Drive and south of Dingman Creek. This area is

within the Dingman Creek subwatershed area and will require

regional stormwater management facilities to meet Provincial water

quality erosion and flood control objectives. Growth splits are



55


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total



($000's)

Category: Growth

100 100 100 100 100 500 1,000

416 417 417 417 417 417 2,501

195 760 5,435 6,390


Project to undertake the required Municipal Class Environmental

Assessment to study, design and construct a Contingency Facility

and associated works to service proposed development growth.




ES3022 Contingency Facility

ES3201 Dingman On-line Stormwater Management Flood

Control Facility #1

ES3021 Land (Expropriation Negotiations)

Project to undertake all necessary engineering, economic and legal

assessment to proceed with land expropriation for the identified

SWMF. Growth splits are consistent with the 2014 Development


To undertake remediation works to minimize and eliminate existing

flooding, erosion and conveyance capacity deficiencies of the

Dingman Creek System and construct water resources/ stormwater

management remediation works. Growth splits are consistent with

the 2014 Development Charge Study. 10% Growth Related (9.9%

DC Rate Supported).

56


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total



($000's)

Category: Growth

150 560 4,030 4,500 9,240

Reserve Fund $476



288 1,113 1,401

250 250

To undertake an update of the Development Charges Study in

2019 for storm/drainage and stormwater management works.



2015 Financing:

To undertake remediation works to minimize and eliminate existing

flooding, erosion and conveyance capacity deficiencies for the

Dingman Creek System and to construct a water resources

remediation/reclamation system. Growth splits are consistent with

the 2014 Development Charge Study. 15% Growth Related (15%

DC Rate Supported).

ES3202 Dingman On-line Stormwater Management Flood

Control Facility #2


substance).

* ES3205 Stormwater Future Development Studies 2019

New project to design and construct Hyde Park-Stanton Drain

remediation works in accordance with the accepted Stormwater

Management Facility Municipal Class Environment Assessment.




ES3203 Hyde Park - Stanton Drain Phase II

57


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total



($000's)

Category: Growth

250 250

300 300

300 300

To undertake an update of the Development Charges Study in

2024 for storm/drainage and stormwater management servicing.



To undertake the southwest area Municipal Class Environmental

Study(s) to identify the recommended storm/drainage and

stormwater management servicing works for proposed

development. Growth splits are consistent with the 2014


Rate Supported).

* ES3207 Southwest Area Municipal Class Environmental

Assessment

* ES3208 Southeast Area Municipal Class Environmental

Assessment

* ES3206 Stormwater Future Development Studies 2024


substance).

To undertake the southeast area Municipal Class Environmental

Study(s) to identify the recommended storm/drainage and

stormwater management servicing works for proposed

development growth. Growth splits are consistent with the 2014


Rate Supported).

58


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total



($000's)

Category: Growth

50 50 50 50 50 250 500

200 200 200 200 200 1,000 2,000

400 400 200 200 200 600 2,000


ES5427 Pre-Assumption Monitoring

To undertake the required stormwater management water quality

monitoring to proceed with the city's assumption of stormwater

management facilities. Growth splits are consistent with the 2014


Rate Supported).

* ES3209 Stormwater Unidentified Municipal Class

Environmental Assessment Addendums

To undertake Addendum(s) to the existing Municipal Class

Environmental Assessment Studies for storm/drainage and

stormwater management servicing works that need to be

changed/modified. Growth splits are consistent with the 2014


Rate Supported).



ES5425 Interim Works as Identified in Environmental

Assessment


substance).

To undertake the required preliminary storm/drainage and

stormwater management water resources evaluation of existing

and future conditions to assess the requirements for the Interim

Works identified in Environmental Assessment studies. Growth

splits are consistent with the 2014 Development Charge Study.


59


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total



($000's)

Category: Growth

5,002 5,002 5,002 5,002 8,367 28,375

Senior Government Funding $3,335



219 3,419 3,638

187 263 3,345 3,795

To undertake a Municipal Class Environmental Assessment Study,

design and construction of the proposed Dingman Creek North

Lambeth No. P9 Stormwater Management Facility. Growth splits

are consistent with the 2014 Development Charge Study. 100%



ESSWM-DCNLP9 SWM Facility - Dingman Creek North

Lambeth No. P9

Stormwater Management servicing of future light and general

industrial land to provide an adequate inventory of large block

"shovel ready" land in strategic locations. Project coordinated with

other industrial servicing accounts (Internal Servicing, Sanitary,

Storm and Water). Growth splits are consistent with the 2014


Rate Supported).

To undertake a Municipal Class Environmental Assessment Study,

design and construction of the Dingman Creek No. B4 Stormwater

Management Facility and associated servicing works to service this

development area. Growth splits are consistent with the 2014


Rate Supported).

ESSWM-DCB4 SWM Facility - Dingman Creek No. B-4


ES6095 Stormwater Management Industrial Servicing

2015 Financing:

60


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total



($000's)

Category: Growth

2,977 2,977

3,750 3,750

450 3,127 3,577

4,134 4,134

To design and construct Kilally Southeast Stormwater

Management Facility and associated works in order to service the

development within the Kilally South Development Area. Growth



ESSWM-FH1 SWM Facility - Fox Hollow No. 1 Phase II

To undertake the design and construction of the proposed

stormwater management servicing works for this facility. Growth



ESSWM-LPH SWM Facility - London Psychiatric Hospital

(LPH)

ESSWM-MM2 SWM Facility - Murray Marr No. 2 Phase I

To design and construct the proposed Stormwater Management

Facility - Murray Marr No. 2 Phase I in accordance with the existing

Municipal Class Environmental Assessment Study recommended

storm/drainage and stormwater management servicing. Growth



To undertake the design and construction of the Fox Hollow

Stormwater Management Facility No. 1 Phase II and associated

works to service the proposed development. Growth splits are



ESSWM-KILSE SWM Facility - Kilally Southeast

61


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total



($000's)

Category: Growth

2,836 2,836

250 250 3,106 3,606

250 250 3,191 3,691

ESSWM-NLP7 SWM Facility - North Lambeth No. P7

To undertake the required Municipal Class Environmental

Assessment Study, design and construction for the North Lambeth

Stormwater Management Facility No. P8 and associated works to

service the proposed development. Growth splits are consistent



















62


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total



($000's)

Category: Growth

4,080 4,080

238 1,577 1,815

655 3,712 4,367


ESSWM-PKR SWM Facility - Parker

ESSWM-OV1 SWM Facility - Old Victoria No. 1


(Dingman Tributary D2) Phase I



Stormwater Management Facility No. P10 Phase I associated with

the proposed development. Growth splits are consistent with the


Rate Supported).


To undertake the addendum modifications to the Old Victoria

Municipal Class Environmental Assessment Study, design and

construction of the Old Victoria No. 1 Stormwater Management

Facility for the approved drainage area. Growth splits are



To design and construct the Parker Stormwater Management

Facility and associated works in order to service the development

within the Summerside Development Area in accordance with the

completed and approved Summerside Drainage Master Plan.



63


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total



($000's)

Category: Growth

500 1,700 2,000 4,200

367 2,081 2,448

354 616 4,158 5,128ESSWM-PD4 SWM Facility - Pincombe Drain No. 4

To undertake design and construction of the Pincombe Drain

Stormwater Stormwater Management Facility No. 3 in accordance

with the accepted Municipal Class Environmental Assessment

Study for Pincombe Drain. Growth splits are consistent with the


DC Rate Supported).



To design and construct the remediation of the Pincombe Drain in

order to support development within the Pincombe Drain

Environmental Assessment Study Area in accordance with the

completed and accepted Municipal Class Environmental

Assessment Study. Growth splits are consistent with the 2014

Development Charge Study. 88.1% Growth Related (85.9% DC

Rate Supported).

ESSWM-PDR Pincombe Drain Remediation

To design and construct the Pincombe Drain No. 4 Stormwater

Management Facility and applicable servicing works in order to

support the development in accordance with the completed and

accepted Pincombe Drain Municipal Class Environmental

Assessment Study Area. Growth splits are consistent with the


DC Rate Supported).

ESSWM-PD3 SWM Facility - Pincombe Drain No. 3

64


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total



($000's)

Category: Growth

1,731 1,731

2,187 2,920 3,300 8,407

299 1,696 1,995


ESSWM-PD5 SWM Facility - Pincombe Drain No. 5


To design and construct the River Bend Tributary 'C' Stormwater


support land development within the Tributary 'C' area in

accordance with the completed and accepted Tributary 'C'

Municipal Class Environmental Assessment study area. Growth


100% Growth Related (98.6% DC Rate Supported).

To design and construct the Pincombe Drain No. 5 Stormwater


support the development in accordance with the completed and

accepted Pincombe Drain Municipal Class Environmental

Assessment Study. Growth splits are consistent with the 2014


Rate Supported).

ES3020-RVBTC SWM Facility - River Bend Trib 'C'

ESSWM-SC2 SWM Facility - Stoney Creek No. 2


Facility - Stoney Creek No. 2 in accordance with the existing

accepted Municipal Class Environmental Assessment Study

recommended option for the storm/drainage and stormwater

management servicing. Growth splits are consistent with the 2014


Rate Supported).

65


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total



($000's)

Category: Growth

1,668 1,668

1,051 1,051

295 1,666 1,961


Facility - Stoney Creek No. 7.1 in accordance with the existing

accepted Municipal Class Environmental Assessment Study

recommended storm/drainage and stormwater management

servicing. Growth splits are consistent with the 2014 Development


To design and construct the Stoney Creek No. 8 Stormwater

Management Facility and associated works in accordance with the

completed and accepted Municipal Class Environmental

Assessment for storm/drainage and stormwater management

servicing works for the undeveloped Stoney Creek Area. Growth




To design and construct the Stoney Creek No. 10 Stormwater

Management Facility and associated works in order to support and

service the development within the Stoney Creek Development

Area in accordance with the completed and accepted Stoney

Creek Municipal Class Environmental Assessment for

undeveloped lands. Growth splits are consistent with the 2014


Rate Supported).

ESSWM-SC7-1 SWM Facility - Stoney Creek No. 7.1


66


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total



($000's)

Category: Growth

1,696 1,696

1,962 1,962

425 2,412 2,837

To undertake design and construction of the White Oaks No. 3

Stormwater Management Facility and applicable servicing works in

order to support the development within the White Oaks

Development Area in accordance with the Addendum to the

Municipal Class Environmental Assessment for storm/drainage and

stormwater management servicing works. Growth splits are



ESSWM-WO3 SWM Facility - White Oak No. 3

ESSWM-SD6A SWM Facility - Sunningdale No. 6A


Facility - Sunningdale No. 6A in accordance with the existing

accepted Municipal Class Environmental Assessment

recommended storm/drainage and stormwater management

servicing. Growth splits are consistent with the 2014 Development


ESSWM-SDE1 SWM Facility - Sunningdale No. E1



Facility - Sunningdale No. E1 in accordance with the existing

accepted Municipal Class Environmental Assessment Study.



67


Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total



($000's)

Category: Growth

500 4,198 4,698

47,028 31,785 78,813

Total Growth 67,073 36,953 42,130 52,983 40,809 32,246 14,801 81,636 368,631

To design and construct the White Oaks No. 4 Stormwater

Management Facility and associated works to eliminate and

minimize existing flooding and to support and service the proposed

land development in accordance with the Addendum to the

completed and accepted White Oak Municipal Class

Environmental Assessment Study for storm/drainage and

stormwater management servicing works. Growth splits are




comparison

ESSWM-WO4 SWM Facility - White Oaks No. 4


68

Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total

100 100 100 500 100 900 1,800

60 30 30 30 150



Category: Service Improvements


substance).

Staff initiated a regional watershed project to assist in the

management and protection of the Thames River watershed. This

project is an update of the 1975 "Thames River Basin Study" and

borrows approaches from the successful HELP Clean Water

partnership which focused on regional drinking water supplies.

Project funding to be used to match funding from other partners for

an external project coordinator and meeting expenses.



($000's)

* ES2108 Thames River Clear Water Revival

* ES2092-15 Sump Pump Grant Program

An annual program to provide grants for privately installed sump

pumps, backwater valves, sewer ejector and storm sewer private

drain connections. Maximum subsidy of $2,650 per house for

external and $1,950 for internal connection and a $6,000 maximum

for storm sewer private drain connection. The maximum subsidy

for a backwater valve is $825.


69

Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total




($000's)


828 200 800 800 800 800 4,000 8,228

Reserve Fund $100

Local Improvement 100


5,715 1,480 6,390 6,350 6,000 6,250 40,450 72,635

200 200 200 200 200 1,000

ES2442-15 Extension of Sanitary Services

ES2468 Problematic Sump Pump Discharge Program

2015 Financing: Federal Gas Tax Grant

Cost sharing project for the extension of services to unserviced

parts of the urban growth area and beyond. City's share is in

accordance with the Local Improvement Act on case-by-case

basis, due to exemptions that occur on each project. 50% City;

50% Cash Payments, to be refined during design.

ES2464-15 Separation and CSO Program

This project is undertaken to investigate, monitor, model, develop

and implement solutions to reduce or eliminate combined sewer

overflows (CSO's). Study work will develop a list of priorities.

Some projects are already defined and planned for design and

construction in the short term. Construction of separate storm and

sanitary sewers are planned for a number of areas, which will

effectively reduce the volume of storm drainage diverted to the

sanitary sewer system and prevent/reduce CSO's to the Thames

River. Coordinated with water project EW3656-2 - Wellington

Road Area Watermain Replacement.

2015 Financing:

Eliminate chronic icing and wet conditions due to problematic

sump pump discharges on City right-of-way.


70

Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total




($000's)


1,550 1,550

100 1,350 1,450

200 3,000 3,200

9,752 1,550 4,800 16,102

Reserve Fund $3,530

Federal Gas Tax Grant 1,270


2015 Financing:

Construction of trunk storm sewer along C.P.R. tracks between

Waterloo Street and Maitland Street.


ES3013 Carling Creek Trunk Storm Phase IV

Continuation of construction of trunk storm sewer between Pine

Street and Brydges Street, and section just south of Margaret

Street. To relieve severe flooding in Burbrook Watershed. This

will be the last phase of the project.

ES2469 Southland Pollution Control Plant Conversion

Decommissioning of Southland Pollution Control Plant (PCP) and

construction of a new pumping station/forcemain to improve long-

term sanitary servicing within the existing Lambeth community.

The forcemain from the new pumping station to outlet to Hamlyn

Trunk Sewer.

ES3054 Burbrook Trunk Storm Sewer Phase IV

ES3042 Vauxhall Flood Proofing & Effluent Pumping Station

Construction of flood proofing to protect against high water levels

and pumping station to make sure flows are discharged.

71

Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total




($000's)


200 1,750 80 8,950 10,980

400 1,000 1,400

945 5,055 6,000

100 350 1,900 5,650 8,000

Class Environmental Assessment, design and construction of a

two way forcemain between Vauxhall and Pottersburg Wastewater

Treatment Plants including upgrades to Chelsea Heights Pumping

Station and a new pumping station at Pottersburg to convey flows

between plants.

ES3097 Vauxhall and Pottersburg Pumping Stations and

Forcemains

Burbrook Lateral Storm Sewers provide stormwater drainage to

areas in the Burbrook Drainage Area which are tributary to the

Burbrook Trunk Storm Sewer. Coordinated with Water Project

EW3624 - Burbrook Watermain Upgrade Phase II. Phases subject

to changes depending on completion of Burbrook Trunk Storm

Sewer.

ES3058 Burbrook Lateral Program


ES3098 Greenway Wastewater Treatment Plant Flood Proofing

and Effluent Pumping Station

Engineering and construction of works to protect the Greenway

Wastewater Treatment Plant from the 250 year flood including

walls, barriers and an effluent pumping station to ensure treated

flow discharge when Thames River levels are elevated.


ES3059 Dayus Creek Trunk Storm Sewer Replacement


Replace the existing 1,200mm trunk storm sewer outlet with a

2,400mm storm sewer from Ada Street to Terrace Street to

properly service the existing watershed.

72

Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total




($000's)


9,375 9,375

50 50 100 200ES5165-17 New Equipment Wastewater Treatment Plants

Program for additional mechanical, electrical and instrumentation

equipment required to maintain and improve operations.

ES3111 Local Improvement - White Oak Industrial Subdivision

Sewer

Cost sharing project for the installation of sanitary sewers for the

existing White Oak Industrial Subdivision. White Oak South

Sanitary Servicing Environmental Assessment completed in 2005.

Local servicing to be provided as local improvement under City

policy regarding extension of services to existing unserviced areas,

following completion of GMIS White Oak Trunk Sewer in 2011.

Property owners pay 75% of costs, City pays 25%. To be carried

out in conjunction with Local Improvement Water Servicing

EW3806. Budget for 2020 has been updated to reflect exemptions

under the Local Improvement Act. The City has been paying 100%

design fees, 25% of construction costs, and any exemptions under

the Local Improvement Act. It is estimated that this represents

60% of the total project costs. Property owners surveyed

informally declined Local Improvement in 2012. Project deferred to

2020 or to time when road life cycle replacement is scheduled.

73

Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total




($000's)



1,680 280 280 2,240

4,730 1,200 940 940 2,400 7,700 17,910

1,150 1,150

* ES2452 Water Quality and Storm Flow Conveyance

Monitoring Program

Construction of regional Stormwater Management Facility #3 in the

Murray Marr drainage area.

ES2474 UTRCA - Remediating Flood Control Works within City

Limits

To undertake monitoring works to evaluate the water quality and

storm flow conveyance for various watercourses and the Thames

River.

Program in partnership with the Upper Thames River Conservation

Authority (UTRCA) who contributes matching funding through

provincial programs for maintaining and reconstructing

components of the City's flood and erosion control infrastructure.

ES3016 Murray Marr Stormwater Management Facility #3

74

Prior

Years 2014 2015 2016 2017 2018 2019

2020 to

2024 Total




($000's)


210 210 210 210 210 1,050 2,100

15,774 302 16,076

32,196 10,915 9,805 9,480 13,985 11,750 13,090 80,325 181,546

Total Wastewater and Treatment 159,583 67,188 77,562 88,990 87,338 67,804 56,569 312,190 917,224

Total System Improvement


comparison

ES3040-15 Minor Surface Flooding

Annual program to construct works in order to alleviate surface

flooding, erosion problems and slope stability that impact private

property, which are outside the scope of the municipal sump pump

grant program.


substance).

75


2015 Reserve Funds and Reserves


Reserve Funds and Reserves

Sewage Works Actual Projected Approved

Reserve Fund (1) 2013 2014 2015 2016 2017 2018 2019 2020 - 2024

Opening Balance 44,775 46,475 18,949 24,361 26,734 17,497 20,932 21,455

Contributions 16,759 20,185 22,542 20,338 19,160 20,125 17,519 97,612

Add'l Contribution (surplus/account closing) 694

Interest earned 848 856 565 668 578 503 554 2,782

$63,076 $67,516 $42,056 $45,367 $46,472 $38,125 $39,005 $121,849

Drawdowns - Current Year 7,338 18,270 17,695 18,633 28,975 17,193 17,550 94,509

- Prior Years 9,263 30,297

Total Drawdowns (2) $16,601 $48,567 $17,695 $18,633 $28,975 $17,193 $17,550 $94,509

Ending Balance $46,475 $18,949 $24,361 $26,734 $17,497 $20,932 $21,455 $27,340

Notes:

(1) This reserve fund is intended to support the capital needs of the wastewater system with an estimated replacement value of $4.0 billion.

(2) Drawdowns are based on full capital needs and not intended to project the actual cash flow of funds being utilized in a particular year.

Industrial DC Incentive Program Actual Projected Approved

Sewer Reserve Fund (1) 2013 2014 2015 2016 2017 2018 2019 2020 - 2024

Opening Balance 0 0 2,128 1,338 1,338 1,338 1,338 1,365

Tsf from Sewage Treatment Plant RF 2,100

Contributions 2,000 2,800 2,800 2,800 2,800 14,400

Interest earned 28 45 35 35 35 36 186

$0 $2,128 $4,173 $4,173 $4,173 $4,173 $4,174 $15,951

Tsf to City Services-Sanitary Sewer 1,226 1,226 1,226 1,226 1,215 6,240

-Major SWM 1,609 1,609 1,609 1,609 1,594 8,187

Total transfers to CSRF $0 $0 $2,835 $2,835 $2,835 $2,835 $2,809 $14,427

Ending Balance $0 $2,128 $1,338 $1,338 $1,338 $1,338 $1,365 $1,524

Notes:

($000's)

Forecast

(1) This reserve fund is being established to support development charge exemptions contained in various Community Improvement Plans (CIP).

The reserve fund will be funded annually from Wastewater operating rates to support industrial growth share of all sanitary sewer and major

Stormwater Management infrastructure projects.

Forecast

76



($000's)

Sewage Treatment Plant Capacity Actual Projected Approved

Reserve Fund (1) 2013 2014 2015 2016 2017 2018 2019 2020 - 2024

Opening Balance 6,554 7,731 81 83 85 87 89 91

Contributions 1,046 1,046

Interest 131 130 2 2 2 2 2 13

$7,731 $8,907 $83 $85 $87 $89 $91 $104

Tsf to Industrial DC Incentive Program RF $2,100

Drawdowns - Current Year 2,500

- Prior Years 4,226

Total drawdowns $0 $8,826 $0 $0 $0 $0 $0 $0

Ending Balance (2) $7,731 $81 $83 $85 $87 $89 $91 $104

Notes:

Industrial Oversizing Sewer Actual Projected ApprovedReserve Fund 2013 2014 2015 2016 2017 2018 2019 2020 - 2024

Opening Balance 8,685 10,184 9,238 9,939 10,281 10,241 9,186 8,103

Levies 1,500 1,500 1,000 1,000 1,000 0

Interest 175 254 251 264 269 254 226 686

$10,360 $11,938 $10,489 $11,203 $11,550 $10,495 $9,412 $8,789

Growth portion - Existing Debt Repayment 320

Growth portion - Debt authorized - Not issued 922 1,309 1,309 1,309 6,545

Drawdowns - Current Year (35) 550

- Prior Years (144) 2,735

Total drawdowns (1) $176 $2,700 $550 $922 $1,309 $1,309 $1,309 $6,545

Ending Balance (2) $10,184 $9,238 $9,939 $10,281 $10,241 $9,186 $8,103 $2,244


(2) This reserve fund will be closed once all commitments have been made.

(1) The Sewage Treatment Plant Capacity Reserve Fund was established in 2007 to provide a funding source for the sewage treatment plant capacity

projects in order to eliminate the need for the more costly option of issuing debenture financing, consistent with the Corporate Strategic Financial Plan

adopted by Council.

Forecast

(2) This reserve fund will be closed once all commitments have been made.

Notes:

Forecast

77



($000's)

City Services Sanitary Sewer Levies Actual Projected Approved

Reserve Fund 2013 2014 2015 2016 2017 2018 2019 2020 - 2024

Opening Balance 14,102 15,245 5,469 2,207 1,680 1,032 1,640 2,736

Levies 5,990 6,168 5,410 5,634 5,813 5,825 5,837 28,482

Tsf from Industrial DC Incentive Program RF 1,226 1,226 1,226 1,226 1,215 6,240

Tsf from DC Incentive Program Reserve Funds (1) 536 522 509 497 485 2,421

Interest 315 271 99 51 35 35 57 403

$20,407 $21,684 $12,740 $9,640 $9,263 $8,615 $9,234 $40,282

Refunds 102 23

Growth portion - Existing Debt Repayment 2,174 1,990 2,042 1,989 1,930 1,137 1,117 2,864

Growth portion - Debt authorized - Not issued 258 258 477 3,838 19,190

Forecasted Future Debt (3) 54 570 9,763

Drawdowns - Current Year 2,293 6,645 8,491 5,713 6,043 5,307 973 5,600

- Prior Years 593 7,557

Total drawdowns (2) $5,162 $16,215 $10,533 $7,960 $8,231 $6,975 $6,498 $37,417

Ending Balance $15,245 $5,469 $2,207 $1,680 $1,032 $1,640 $2,736 $2,865


Forecast

Notes:

(1) This transfer includes the Residential, Institutional and Commercial DC Incentive Program Reserve Funds.

(3) Effective August 4, 2014 Council approved the adoption of the new Development Charge policy, a component of which is directed to Sewer

Services. Development charges reduce the demands on sewer rates with respect to funding capital requirements for growth related expenses. At

times, it may be necessary to finance these growth related capital requirements through issuance of debt. Future payments on this debt will be

financed through capital development charges.

78



City Services Major SWM Levies Actual Projected ApprovedReserve Fund 2013 2014 2015 2016 2017 2018 2019 2020 - 2024

Opening Balance 10,509 13,816 1,093 3,978 2,654 2,439 2,407 4,563

Levies 5,966 6,172 8,729 9,088 9,377 9,413 9,448 46,165

Tsf from Industrial DC Incentive Program RF 1,609 1,609 1,609 1,609 1,594 8,187

Tsf from DC Incentive Program Reserve Funds (1) 1,284 1,245 1,209 1,173 1,138 5,690

Interest 257 195 66 87 67 64 91 506

$16,732 $20,183 $12,781 $16,007 $14,916 $14,698 $14,678 $65,111

Refunds 167 40

Growth portion - Existing Debt Repayment 726 1,192 1,637 1,641 1,643 1,642 1,641 5,754

Growth portion - Debt authorized - Not issued 1,165 3,083 3,901 3,901 19,505

Forecasted Future Debt (3) 781 28,016

Drawdowns - Current Year 23 6,037 7,166 10,547 7,751 6,748 3,792 9,474

- Prior Years 2,000 11,821

Total drawdowns (2) $2,916 $19,090 $8,803 $13,353 $12,477 $12,291 $10,115 $62,749

Ending Balance $13,816 $1,093 $3,978 $2,654 $2,439 $2,407 $4,563 $2,362


Wastewater Rate Actual Projected Approved

Stabilization Reserve (1) 2013 2014 2015 2016 2017 2018 2019 2020 - 2024

Opening Balance 1,887 1,887 1,887 1,887 1,887 1,887 1,887 1,887

Contributions

$1,887 $1,887 $1,887 $1,887 $1,887 $1,887 $1,887 $1,887

Drawdowns

Ending Balance $1,887 $1,887 $1,887 $1,887 $1,887 $1,887 $1,887 $1,887

Notes:

(1) This reserve was established to assist with future year shortfalls in revenue and/or emergency expenditures in the wastewater operating budget. The

reserve balance may increase/decrease subject to the 2014 year end operating position.

($000's)

Notes:

Forecast

(3) Effective August 4, 2014 Council approved the adoption of the new Development Charge policy, a component of which is directed to Stormwater

Management Services. Development charges reduce the demands on sewer rates with respect to funding capital requirements for growth related

expenses. At times, it may be necessary to finance these growth related capital requirements through issuance of debt. Future payments on this debt

will be financed through capital development charges.

(1) This transfer includes the Residential, Institutional and Commercial DC Incentive Program Reserve Funds.

Forecast

79



Efficiency, Effectiveness & Actual Projected ApprovedEconomy Wastewater Reserve (1) 2013 2014 2015 2016 2017 2018 2019 2020 - 2024

Opening Balance 899 1,194 1,292 1,292 1,292 1,292 1,292 1,292Contributions 295 98

$1,194 $1,292 $1,292 $1,292 $1,292 $1,292 $1,292 $1,292

Drawdowns Ending Balance $1,194 $1,292 $1,292 $1,292 $1,292 $1,292 $1,292 $1,292Notes:

Sump Pump, Sewage Ejector and Actual Projected ApprovedStorm PDC Program Reserve Fund (1) 2013 2014 2015 2016 2017 2018 2019 2020 - 2024

Opening Balance 514 524 538 552 567 582 597 613Contributions - Surplus 0Interest 10 14 14 15 15 15 16 86

$524 $538 $552 $567 $582 $597 $613 $699

Drawdowns Ending Balance $524 $538 $552 $567 $582 $597 $613 $699

Notes:

Disconnection of Sewer

Cross-Connection Loan Program Actual Projected ApprovedLoan Program Reserve Fund (1) 2013 2014 2015 2016 2017 2018 2019 2020 - 2024

Opening Balance 102 104 107 110 113 116 119 122Contributions - Surplus 0Interest 2 3 3 3 3 3 3 15

$104 $107 $110 $113 $116 $119 $122 $137

Drawdowns Ending Balance $104 $107 $110 $113 $116 $119 $122 $137

Notes:

(1) This reserve fund was established in 2011 to provide funding for the Sewer Cross-Connection Loan Program to provide financial assistance to

those residential dwellings with a confirmed cross-connection to an existing storm sewer that services that street. Repayment will be made over 10

years.

(1) Beginning in 2004, all positions, with some exceptions, are subject to 90 days savings corporately. The savings from these positions are

contributed to Efficiency, Effectiveness and Economy reserves to be used as a one-time funding source for initiatives recommended by the Senior

Leadership Team.

($000's)

Forecast

Forecast

Forecast

(1) This reserve fund was established in 2009 to provide funding for the Grant Program for Sump Pump, Sewage Ejector and Storm Private Drain

Connection or other mechanisms or capital works to fund protection from basement flooding, once the balance of the capital project for the current year

has been exhausted.

80


2015 Debt Summary

Capital Projects Funded by Rate Supported Debentures 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0

Annual Debt Servicing Costs 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Rate Supported Principal and Interest Payments 13.1 13.0 12.8 12.1 12.0 11.7 11.2 7.8 6.7 6.4

Industrial Oversizing Reserve Fund Debt:

Annual Debt Servicing Costs Through Industrial

Oversizing Reserve Fund2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Rate Supported Principal and Interest Payments 0.0 0.9 1.3 1.3 1.3 1.3 1.3 1.3 1.3 1.3

($ millions)


Debt Summary - Rate Supported

2021 2022Projected Debt Financing (Rate Supported) 20232015 2016

The Wastewater and Treatment capital budget forecast does not have debt financing in the 2015 - 2024 capital plan as

highlighted below.

As at June 30, 2014, the authorized but unissued debt was $30.5 million with $3.5 million of debt issued on May 9, 2014. The

outstanding issued debt level projected for the end of 2014 is $74.3 million. The debt servicing budget for 2015 is $13.1 million.

As at June 30, 2014, the Industrial Oversizing Reserve Fund will have approximately $10.4 million of authorized but unissued

debt and no outstanding issued debt. Debt servicing costs are anticipated to increase to $1.3 million by 2017 with the issuance

of the authorized debt.

The capital financing plan that supports the 20 Year Wastewater System Plan relies on rate increases of 7.0% for 2015, and

modest rate increases of 3.0% per year thereafter. This will ultimately result in reduced debt financing and continue the shift to

more pay-as-you-go funding.

20242017 2018 2019 2020

81

Capital Projects Funded by Non Rate Supported

Debentures19.2 28.1 13.6 6.6 6.1 7.0 8.1 4.3 6.1 28.4

Annual Debt Servicing Costs funded through DC's 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Non Rate Supported (DC) Principal and Interest

Payments3.7 5.1 6.9 7.2 11.8 14.9 17.7 16.4 17.8 18.2

The dependence on debt financing is subject to development charge levies. The Wastewater and Treatment capital budget

forecast includes non rate supported debt financing of $127.5 million as part of the 2015 - 2024 capital plan as highlighted

below.

As at June 30, 2014, the authorized but unissued debt was $59.2 million with $5.8 million of debt issued May 9, 2014. The

outstanding issued debt level projected for the end of 2014 is $22 million.

202320202016 2017 2018 2019 2022

The debt projections above are based on a modest pace of spending against approved capital project budgets and the

proposed capital plan. If the pace of spending increases, debt will be issued sooner, and the total debt outstanding along with

the annual debt servicing costs could exceed current projections.

2015Projected Debt Financing (Non Rate Supported) 2021

The City as a whole cannot devote more than 25% of its “own source” revenues to debt repayments, and this restriction has

also been applied to the Wastewater and Treatment budget in accordance with the 20 Year Wastewater System Plan

Principles.


Debt Summary - Non Rate Supported

2024

Non rate supported debt in the Wastewater and Treatment budget is funded through Development Charges (DC) in accordance

with the 2014 DC Background Study rather than sewer rates. The funding of this debt is identified in the reserve fund section of

the 2015 Wastewater and Treatment budget.

($ millions)

82


2015 Schedule of Rates & Charges

Appendix A

Effective Date

All 2015 rates and charges came into effect on January 1, 2015.

Monthly Rates and Charges

Sanitary System Charge /

Wastewater Usage Charge (1)

All Customers

First 7 m3

Next 8 m3

Next 10 m3

Next 10 m3

Next 215 m3

Next 6,750 m3

Next 43,000 m3

Over 50,000 m3

(1) The Sanitary Sewer System Charge/Wastewater Usage Charge is based on metered water consumption.

$0.6929/m3

$2.3728/m3

$0.7414/m3

$0.9647/m3

$2.2850/m3

$2.5389/m3

$0.7783/m3


2015 Schedule of Rates and Charges

2015 Approved Rates2014 Approved Rates

$0.00/m3

$0.00/m3

$1.6609/m3

$0.8542/m3

$1.7772/m3

$0.8328/m3

$0.9140/m3

$0.9016/m3

$2.1355/m3

83

Wastewater Infrastructure Charge

Meter Size

16 mm

19 mm

25 mm

40 mm

50 mm

76 mm

100 mm

150 mm

200 mm

250 mm

Storm Drainage Charge

Monthly Rate

Monthly Rate

per Hectare Monthly Rate (1)

Monthly Rate

per Hectare (1)

Residential, land area equal to or below 0.4 hectares $13.78

Institutional, land area equal to or below 0.4 hectares $13.66

$14.78

Industrial, land area above 0.4 hectares $112.68

$75.12

$14.49

$10.87

Land area above 0.4 hectares $120.57

Land area equal to or below 0.4 hectares

Residential, land area equal to or below 0.4 hectares

without a storm sewer within 90m

(1) 2015 rates are consistent with the phase-in of the Storm Drainage Charge endorsed in principle by Council and

reflected in the Wastewater and Stormwater By-law (WM-28) effective April 16, 2013, adjusted for the approved 2015 rate

increase.

$777.17 $831.57

$1,332.29

Residential, Institutional and Commercial, land area

$194.29 $207.89

Commercial and Industrial, land area equal to or

$27.76 $29.70

$55.51

$1,782.44

$1,425.55

$1,665.83

2014 Approved Rates

Monthly Rate

2015 Approved Rates

$16.66 $17.83



$59.40

$88.82 $95.04

$333.07 $356.38

$11.89$11.11

Monthly Rate

84


2014 Approved Rates 2015 Approved Rates

Per Metre of Frontage Per Metre of Frontage

Sanitary Sewer $206.62/m frontage $221.08/m frontage

Storm Sewer - Residential $191.29/m frontage $204.68/m frontage

Storm Sewer - All Lands excl. Residential $382.57/m frontage $409.35/m frontage

Hauled Liquid Waste Disposal

$11.77 per 1,000 litres $12.59 per 1,000 litres

Leachate $21.66 per 1,000 litres $23.18 per 1,000 litres

High Strength Sewage Service Charge $0.545/m3

$0.583/m3


Miscellaneous Rates and Charges

Frontage Charge

Hauled Liquid Waste excl. Leachate

85


2014 Approved Rates 2015 Approved Rates

New PDC installation or existing PDC

replacement - construction of sewer -

sanitary

$2,000 $2,000



storm

$2,000 $2,000


replacement - excavation$2,400 $2,400

Repair or replace existing PDC - no

construction$5,000 $5,000



sanitary

$4,000 $4,000



storm

$4,000 $4,000


replacement - excavation$5,000 $5,000


Private Drain Connection Charges

Single Detached, Semi-Detached, Duplex

All Other Properties

86


Appendix B

2015 Business Plan & Business Cases

87

Business Plan: Wastewater Removal and Stormwater Management

How does this service contribute to the results identified in the City of London Strategic Plan?

A Sustainable Infrastructure

Compliance with all regulatory requirements to operate, sustain, expand and improve the wastewater and stormwater infrastructure for efficiently delivering high quality and reliable environmental and drainage services to London’s customers for all residential, institutional, commercial, and industrial needs.

Name the main activities done to provide this service:

Name The Activities Done To Provide This Service How Much Did We Do?

(optional)

Is The City Mandated To Provide This

Service?

Can The Level Of

Service Be Changed?

1. Operation, Maintenance and Repair of the Wastewater Conveyance and Treatment Systems and Stormwater Management System

65-85B L of wastewater treated annually

Up to 412B L of stormwater managed annually

700-1,000 km of sanitary sewers flushed annually

Yes Yes (with limitations)

2. Renewal of Existing Infrastructure 20-25 km of sewers rehabilitated annually

8-25 km of sewers installed annually (new and replacement)

Approx. 1-2 stormwater management facilities rehabilitated annually

Approx. 2 km of watercourses rehabilitated annually

Approx. 3.5 ha of wetland reclamation completed annually


88

Name The Activities Done To Provide This Service How Much Did We Do?

(optional)

Is The City Mandated To Provide This

Service?

Can The Level Of

Service Be Changed?

3. Extension of Services for Growth Approx. 30km of sanitary & storm sewers assumed annually

Approximately 4.6 km of new storm sewer installed in areas that did not have storm sewers

Approx. 5 stormwater management facilities constructed annually

Approx. 5 stormwater management facilities assumed annually


What is the current state of this service?

Current objectives of the Wastewater utility include:

Achieving a financially sustainable 1 utility and addressing lifecycle renewal, growth and economic development

objectives of the City while ensuring regulatory compliance

Maintaining / improving the existing level of service provided to the citizens and businesses of London

Maintaining best-in-class standings with the National Benchmarking Initiative

Minimizing the number of sewer-related blockages

Reducing the number of basement flooding occurrences

Improving the health of the Thames River

Providing support for the City’s Industrial Land Development Strategy

These objectives are being driven by a number of factors, including:

Customer expectations of the services that should be provided

1 Financial Sustainability is defined as the movement toward annual rate increases that can be maintained at or near the annual rate of inflation

based on a combination of CPI and the Construction Price Index with appropriate use of debt financing, adequate reserve funds and the appropriate investment in capital.

89

Council-approved level of service requirements

Council-endorsed strategic initiatives

City of London Strategic Plan

Climate Change Adaptation Strategy

A number of challenges are facing the Wastewater service area in the achievement of these objectives:

Declining revenue base, aging infrastructure (much of which is reaching the end of its useful life at the same time),

increasing cost drivers over which the utility has no direct control (power, labour, etc.), an aging workforce, and ever-

increasing regulatory requirements

Extreme weather events associated with climate change are placing an additional burden on stormwater and

wastewater collection systems and also pose a threat to many wastewater facilities located in close proximity to rivers

and on floodplains. Changing climate conditions are also making the updating of subwatershed studies more

challenging.

Increasing customer expectations (e.g. many more homes are now utilizing their basements as living quarters and

therefore there is a customer expectation that no damages to this space should occur via sewage backups even under

changing climate conditions)

The large and growing geographic size of London makes service delivery challenging (3,800 square kilometers of land

drainage flows through London – improving water quality in the Thames River therefore needs to have a watershed

wide approach)

Current economic climate demands that fully serviced industrial lands are available as opportunities arise

Changing provincial and federal regulations

Some of the challenges noted above have been managed with positive results in 2014 through the following achievements: Sewer Operations

Completed five stormwater management pond rehabilitations

Rehabilitated designated sections of the existing Ridout Street brick sewer, utilizing trenchless technology (multi-year

project)

Completed pipe rehabilitation on designated sections of the Gordon trunk sanitary sewer via trenchless technology

Working towards a contract with a software vendor to undertake the implementation of a Computerized Maintenance

Management System, which will bring the City’s utility maintenance and work flow management up to industry

standards. This will result in staff resource efficiencies, enhanced documentation, and cost tracking of maintenance

activities, while also ensuring compliance with regulatory requirements

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Wastewater Treatment Operations

Completed construction of the Southern Ontario Water Consortium-London Wastewater Node at Greenway PCP

Commenced Greenway PCP Expansion detailed design (multi-year project) to ensure sufficient treatment capacity is

available to service future growth and manage wet weather flows

Wastewater and Drainage Engineering

Purchased and installed 13 permanent flow monitoring gauges to comply with Federal Fisheries Act Regulation for

Municipal Wastewater Effluents

Completed Phase 1 and commenced Phase 2 of Council’s Climate Change Adaptation Strategy for the City’s water

resources and stormwater management strategy to deal with extreme storm events

Completed Phase One of the Pollution Prevention and Control Plan and commenced Phase Two

Stormwater Management Unit

Designed and constructed multiple regional stormwater management facilities

General

Completed the Southwest Area Sanitary Servicing Master Plan

Completed the 2014 Wastewater Servicing Master Plan Update, 2014 Stormwater Master Plan Update and

Development Charges Background Study

Supported the preparation and sale of serviced industrial lots

Revised revenue and expenditure forecasts

What has been done to manage the budget?

The service area has been actively managing its budget by implementing management led initiatives aimed at creating efficiencies,

avoiding costs and generating revenue. These include the following:

Efficiencies / Costs Avoided

Previous 3 Years

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Amended the catchbasin cleaning program with risk and Council approved quality standards as primary considerations. The

recently implemented strategic plan frees existing staffing resources to meet the Sewer Operations Division’s new work

demands such as annual maintenance on assumed stormwater management facilities.

Implementation of a more aggressive approach to PDC replacement where lining is always given first consideration over the

more costly and traditional open cut methods.

Completed biosolids upgrades at Greenway Pollution Control Plant, resulting in reduced natural gas and chemical

consumption in addition to labour savings. According to the PwC audit of this project, the total estimated annual operating

savings associated with this initiative is approximately $700,000 per year, with total capital savings of $33 million.

Implemented turbo blower upgrades at Adelaide, Oxford and Vauxhall Pollution Control Plants. These new and more efficient

blowers were made possible through cooperation from London Hydro and incentives through the Ontario Power Authority.

These blowers are anticipated to result in $170,000 in annual energy savings.

Revenue Generation / User Fee Increases

Previous 3 Years

Implemented a new Water and Wastewater rate structure effective March 1, 2013. The purpose of this new rate structure was

to ensure fairness and equity for all customers while also balancing conservation efforts, economic development and the

need to provide a more stable, predictable revenue stream in response to declining consumption.

Other rate increases over the past 3 years have been in keeping with the Council-endorsed rate plan in order to achieve

financial sustainability in 2016.

What is the future direction of this service?

Core business objectives will remain consistent; however, specific attention will be given to opportunities for synergistic

activities in four areas: regulatory compliance, growth, efficiency and best management practices, with sustainability being a

common theme in all areas.

The drivers for these four activity areas include: protecting public health and private property; meeting all regulatory

requirements; supporting Council’s objectives of economic development and growth; gaining efficiencies to reduce long term

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costs; investing in succession planning; harnessing innovative technologies; and maintaining a high level of service to

consistently meet customers’ expectations.

Continuing focus on delivering a financially sustainable utility in the near term and maintaining infrastructure levels of service

at an appropriate level of risk as the 20-Year Capital Plan is implemented.

What future initiatives can be contained within the existing service level budget?

2015 Budget

Compliance:

Continue to advance the Pollution Prevention and Control Plan (PPCP) aimed at reducing the number of overflows in

both the collection system and at the wastewater treatment plants while helping to ensure wet weather flows are

treated to Ministry of Environment standards

Continue to report system overflows and bypasses to comply with Federal Fisheries Act Regulation for Municipal

Wastewater Effluents

Efforts will continue to improve the health of the Thames River and support the Council-endorsed strategic initiatives

underway, including:

investigation of opportunities for long-term funding from other sources,

strengthening collaboration with Western University and other research centres

Complete three (3) stormwater management facility rehabilitations and undertake a full cost analysis based on actual

work completed by others vs. by City forces.

Continue to monitor ongoing stormwater management facility annual maintenance and associated costs. Continue to

build a robust database for these City owned facilities to satisfy Ministry of Environment Certificate of Approval

requirements

Rehabilitate designated sections of the Gordon trunk sanitary sewer as the final phase of this multi-year project

Rehabilitate designated sections of the deteriorating Ridout Street brick sanitary trunk sewer, as part of a multi-

phase/year project

Start the process of reclaiming 30 hectares of wetland in the Dingman Creek Subwatershed

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Growth:

Continue construction on the Greenway WWTP expansion / CSO treatment project

Construct the Hamlyn-Wonderland Sanitary Trunk sewer to accommodate growth in the southwest quadrant as per

the 2014 Wastewater Servicing Master Plan Update and Development Charge Background Study and the Southwest

Area Sanitary Servicing Master Plan

Continue to undertake applicable studies, designs and construction of stormwater management facilities in

accordance with the Growth Management Implementation Strategy (GMIS)

Complete updates to the water resources and slope stability components of subwatershed studies to establish water

resources and stormwater management criteria for future growth under existing and climate change conditions

Provide service area support for the Corporation’s Industrial Land Development Strategy

Efficiency:

Continue to implement a Computerized Maintenance Management System, to bring the utility’s maintenance and work

flow management up to industry standards. This will result in staff resource efficiencies, enhanced documentation, and

cost tracking of maintenance activities, while also aiding in compliance with regulatory requirements

Begin optimization projects at wastewater treatment facilities based on the results of the Wastewater Treatment

optimization strategy

Best Management Practices:

Measure and assess the effectiveness of the Sherwood Forest Disconnection Project while continuing to administer

and promote the Sump Pump Grant Program to further alleviate basement flooding

Consider implementing Storm Drainage Charges for vacant properties pending the outcome of a 2014 review.

Implement the strategy for achieving an appropriate minimum reserve fund balance for the utility, consistent with

corporate wide financial objectives

2016-2018 Forecast

Compliance:

Complete the first phase of a Thames River watershed-wide Water Management Study

Complete the plan and commence work on measures identified as part of the Pollution Prevention and Control Plan

Continue the stormwater management facility rehabilitation program, by rehabilitating an additional facility in 2016 and

another in 2017. Timing of future rehabilitations will be determined by a report generated in 2015

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Complete the Burbrook Trunk Storm Sewer (ES3054) project that will allow sewer separation works to advance, which

will reduce the likelihood of sewer backups

Growth:

Complete Greenway plant expansion / CSO treatment project

Construct the next scheduled phases of sanitary trunk sewers to accommodate growth in the southwest quadrant as

per the 2014 Wastewater Servicing Master Plan Update and Development Charge Background Study and the

Southwest Area Sanitary Servicing Master Plan

Continue to provide storm/drainage and stormwater management servicing for the growth and prosperity of the City

Assume various stormwater management facilities constructed by developers

Implement various Development Charges-funded growth projects to support the Industrial Land Development Strategy

Efficiency:

Optimize the Computerized Maintenance Management System

Initiate long-term strategic planning based on preliminary results of the CMMS implementation

Continue optimization projects at wastewater treatment facilities which are expected to commence in 2015

Best Management Practices:

Initiate flood proofing works for Greenway and Vauxhall treatment facilities to reduce the risk of catastrophic flooding

in extreme weather events

Continue the reclamation and rehabilitation of watercourse functional performance and ecological health

What service adjustments do you plan to make?

2015 Budget

Addition of 2 new resources in the Stormwater Management Unit to support design and construction activities associated with the influx of additional stormwater management facilities to be constructed in new development areas over the next 10 years

2016-2018 Forecast

None anticipated at this time, although service adjustments may be required pending the outcome of the Pollution Prevention and Control Plan and Wastewater Treatment Optimization project

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Key Performance Indicators

How Much?

Description of measure 2013 2014 2015 2016 2017 2018

1. Volume of wastewater treated (billion litres) 76.2 85.8 86.7 87.7 88.6 89.4

2. Volume of stormwater managed (billion litres) 412 412 412 412 412 412

3. Percentage of sanitary sewer system flushed (1) 86% 86% 81% 76% 67% 67%

4. Percentage of sewer system replaced, rehabilitated or relined

1.3% 1.5% 1.3% 1.4% 1.4% 1.4%

5. Percentage of stormwater management facilities rehabilitated (2)

8.3% 16.6% 10.0% 3.3% 3.3% 13.3%

How Well?


6. Average annual cost for residential customer (3) $426 $446 $475 $489 $504 $519

7. Percentage of Bio-chemical Oxygen Demand removed

99% 99% 99% 99% 99% 99%

8. Percentage of stormwater management facilities constructed as per the “Just in Time” Design and Construction Process

N/A N/A 100% 100% 100% 100%

Is Anyone Better Off?


9. Number of MOE effluent violations (4) 6 1 1 1 1 1

10. Percentage of flooding complaints addressed 100% 100% 100% 100% 100% 100%

11. Number of blocked sewers per 100km length 0.5 0.5 0.5 0.5 0.5 0.5

NOTE: 2013 values represent actual amounts; 2014-2018 values represent forecasts

(1) Current level of service requires the sanitary sewer collection system to be completely flushed once every 2 years.

(2) Based on 30 existing stormwater management facilities.

(3) Based on 2014 projected consumption of 171.9 m3 and does not incorporate future projected consumption declines. Actual cost

may be lower as a result.

(4) Not necessarily indicative of a risk to public health.

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2015 Business Case

Service: Wastewater and Treatment

Initiative: Additional 2 Full-time Positions – Stormwater Management (SWM) Unit

Financial Implications ($000)

Budget Type

Change to Gross

Expenditure

Change to Revenue

Net Change to WWT

Expenditures

2015 Impact

%

Incremental Net Change

Future Years $

2016


Future Years $

2017


Future Years $

2018

Ten Year Impact (if funding

not returned)

Capital Budget Incr/(Decr)

$0 $0 $0 0% $0 $0 $0 $0

Operating Budget Incr/(Decr)

$180 $0 $180 0.2% $0 $0 $0 $1,800

Staffing Implications

# of FTs Impacted #FTEs Impacted $ FTE Description

2.0 2.0 $180,000* 2 new FT positions

* Includes technology costs of $5,000.

Background

The SWM Unit requires 2 additional full-time positions in order to deliver the additional storm/drainage and stormwater management

(SWM) projects identified in the 2014 Development Charges (DC) Update.

These positions will assist with all engineering aspects of water resources planning, engineering design, contract preparation, construction

and remediation works of storm/drainage, SWM systems and open watercourses in order to sustain the City's stormwater assets and allow

land development to proceed within the City of London. Furthermore, these positions will assist with the evaluation and upgrades to SWM

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facilities such that the works may be transferred in accordance with the City’s assumption process to the City’s Sewer Operations Division

in a fully functional condition and not require any significant maintenance for a considerable length of time. The current complement is

unable to absorb the additional work associated with the new projects identified in the 2014 DC Update. The capital plan included in 2015

approved budget includes approx. 46 SWM growth projects to be undertaken in the next 10 years. This excludes growth projects currently

underway, as well as all SWM lifecycle and service improvement projects. By comparison, the capital plan included in the 2014 approved

budget included only approx. 25 growth projects during the same period.

Performance Measures Impact

The addition of these positions is critical to ensuring the SWM Unit’s ability to construct 100% of the stormwater management facilities

required in accordance with the Unit’s “Just in Time” Design and Construction Process.

Impacts

a) Community

Development, particularly economic development and job creation, continues to be a priority of Council and Administration. In order for

new developments to proceed, however, it is often necessary to complete the required servicing works to facilitate that development.

Frequently this involves the construction of stormwater management or drainage infrastructure as evidenced by the influx of SWM projects

included in the 2014 DC Update. The addition of these two new positions will ensure that development is not unnecessarily delayed due to

a lack of resources to manage the completion of the required works.

b) Community Engagement

N/A

c) Other City of London Services

With the addition of these proposed positions, the SWM Unit’s objective is to be more responsive to the needs of other services. Ensuring

sufficient resources are available to manage the planned works will also ensure that the needs of other services are not sacrificed at the

expense of ensuring the necessary projects are completed in a timely fashion.

Risks

Should these positions not be approved, land development is at risk of not being able to proceed in a timely fashion as building permits are

not able to be completed until the storm/drainage and SWM facility projects are constructed and deemed functional and operational.

WASTEWATER & TREATMENT

2015 Budget

January 27, 2015

Documents

WASTEWATER & TREATMENT - London, Ontario · 2015-03-02 · Wastewater and Treatment 2015 Budget and Forecast . The approved 2015 Wastewater and Treatment budget presents a balanced