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Home My WebLink About2004-04-06 Council MinutesKNEEHILL COUNTY COUNCIL MEETING MINUTES April 6, 2004 X L_J N MINUTES OF THE APRIL 6 2004 SPECIAL MEETING OF THE COUNCIL OF KNEEHILL COUNTY AT THE KNEEHILL COUNTY OFFICE, 232 MAIN STREET, THREE HILLS ALBERTA PRESENT. Division No 6 Ken Hoppins, Reeve PRESENT Division No 4 Murray Woods, Deputy Reeve Division No 1 Brian Holsworth, Councillor Division No 2 Carol Calhoun, Councillor Division No 3 Jerry Wittstock, Councillor Division No 5 Vern Crawford, Councillor Division No 7 Ken Knievel, Councillor ADMINISTRATION PRESENT County CAO Gene Kiviaho Operations Director Rob Mayhew Interim Finance Director Lavinia Henderson Assessor Frank Grills EMS Coordinator Mac deBeaudrap Planner Jeremy Fenton Agricultural Fieldman Bruce Sommerville Transportation Secretary Yvonne Evans Recording Secretary Barb Long OTHERS PRESENT. Richard Marz, MLA Cathy Prohl Ted & Eleanor Stahl Russ Evans Paul DeVos Debi Moon Todd Simenson, Stantec Consulting Mike Stefler, Stantec Consulting 1 Reeve Hoppins in the Chair: CALL TO ORDER Reeve Hoppins called the meeting to order at 8 30 A.M advising the objective of this special meeting of Council was to discuss the Kneehill County Water Strategy PRESENTATION 2. Presentation by Stantec Consulting Ltd (presentation H2O STRATEGY attached and forming part of the minutes STANTEC Todd Simenson, Stantec Consulting Ltd., reported that a comprehensive report for the 2004 Kneehill County Water Servicing Strategy evaluating water user surveys, existing water sources, design criteria, public information assessment, water service areas, options for capital generation, and system ownership alternatives had been supplied to Council and this presentation was to provide a summary of this information for any interested parties He further identified the following as the purpose of today's Water Workshop and presented information to assist Council in formulating a water strategy for the County Reeve CAO KNEEHILL COUNTY COUNCIL MEETING MINUTES April 6, 2004 • Present the final information contained within the Kneehill County Water Strategy Report • Review estimated connection costs an potential financing options • Identify ownership and operation alternatives ® • Present information on the Equity Water System • Obtain feedback on the conclusions and recommendations from the Water Servicing Strategy • Identify and discuss the proposed "Next Steps" that Kneehill County can consider implementing as part of their overall Water Servicing Strategy The following information was included in the presentation • Proposed Kneehill Regional Water Services Commission Water Services Areas Kirkpatrick, Hesketh, Carbon, ' Swalwell, Acme Linden, Three Hills West 9 • Survey Results • Summary of Connections by Water Service Area • Potential Demands • Summary of Potential Demands by Water Service Area Conceptual Network of 7 Water Service Areas —100% connected • Optional Water Delivery Systems Constant Flow —1 gal/minuter per residence 15 psi/mnumum pressure cistern on site for storage 500 gal cistern provides 1 2 days storage -' water pumped from cistern as required Full Flow — 4 gal/minute per residence 30 psi/minimum pressure no cistern large storage and pumping facilities required off the regional transmission line larger piping required thus higher costs higher risk of interruption • Basis of Cost Estimate 450 miles (723 km) of pipe 1000 in of pipe per connection constant flow = $25/linear in of pipe full flow = $39/lmear in of pipe pipe sizes 1 5" to 8 " booster stations & reservoirs crossings air relief assemblies contingency — 20% { system costs to curb stop • Cost Estimates per Water Service Area Constant flow— total $18,547,200 00 Full flow — total $28,236,500 00 • Connection Costs — All Water Service Areas (based on 60% connection) Constant flow —Average $43,100 Full Flow — Average $65,500 2 Reeve CAO KNEEHILL COUNTY COUNCIL MEETING MINUTES April 6, 2004 H • Preliminary Cost Estimates & Possible Grant Funding (one third and two third funding) • Constant Flow Financing Option • Full Flow Financing Option — cost per residence based on using County Right of Ways and placement in quarter lines • Constant Flow Financing Option — cost per residence based on using County Right of Ways and placement in quarter lines • Typical Monthly Water Cost per Residence (family of 3) Based on 29 3 cubic meters usage @$1 87 per cubic meter to purchase H2O from the KRWSC and $0 40 per cubic meter for operation and maintenance Constant flow- no down payment $160.00/mo $10,000 down $95 00/mo Full flow — no down payment $207 00/mo $10,000 down $143 00/mo • System Ownership Options 1 Kneehill County Municipal Ownership —100% ownership in all rural water distribution systems 2 Kneehill Regional Water Services Commission Ownership — Commission is in place creates County wide partnership with Villages and existing Water Co op 3 Water Cooperative Ownership — cost recovery basis, difficult to grow the system or combine with others 4 Private Ownership — Corporations need a return of 10% 15% on their investments • Recommendations 1 Adopt policy to install Constant Flow systems for all Water Service Areas (WSA), except possibly Kirkpatrick 2 Pursue Federal and Provincial funding opportunities, target for 2/3 of entire project 3 Engage public and appoint a Steering Committee which would include a representative from each WSA 4 Prioritize use of water based on current allocation 5 Consider sizing rural water distribution systems based on 100% connection to accommodate future growth 6 Develop an AEUB defendable Utility Rate Model 7 Partner with municipalities for bulk Water/Fire Storage Facilities to increase level of service to ratepayers 8 Consider forming Water Utility for ownership and operation 9 Enter into supply contract with KRWSC Next Steps — March 15, 2004 letter from Stantec lists 15 steps to be taken by the County (attached and forming part of the minutes) Equity Water Line Mr Simenson reported the Equity Water Line had encountered water pressure issues since the town of Troc u ^ d connected to 3 Reeve QL CAO KNEEHILL COUNTY COUNCIL MEETING MINUTES April 6, 2004 C7 11 this line In an attempt to level the water pressure on this line Stantec had asked the town of Three Hills to reduce the flow to Trochu. Stantec had not been successful in having this request granted, and had provided the following recommendations and options to Kneehill County to correct this situation Short Term (2-3 months) Option 1 Install a Variable Frequency Dnve(VFD) at the Luoma Booster Station with the new VFD to be able to reduce flows from 25L/second to 17 5 L/second as required ($17,300 00) Option 2 Replace the existing Full Flow system at Schimke's and Gustafson's with a Constant Flow system ($8 000 00) Mid -Term (3-12months) Install mobile SCADA monitoring Equipment ($20,000.00) Install isolation valve on Equity Booster Station VFD ($3 200 00) Install PRV Valves on Branches of Equity Water Co op ($13,800.00) Long Term (1 10 years) Dedicated 150mm diameter water supply main to Trochu from the Three Hills Equity Booster Station ($849,600.00) Mr Simenson answered questions from those present and agreed to provide copies of the presentation for distribution to the public The meeting recessed from 10.00 A.M until 10.25 A.M 153/04 Councillor Crawford moved that Council receive the final report of the 2004 Kneehill County Water Servicing Strategy as prepared by Stantec Consulting Ltd CARRIED Reeve Hoppins advised that Council is excited about the project and wants to actively pursue, on a regional initiative or process with all involved stakeholders, and will address some of the steps today Council expressed the need to proceed immediately in order to keep the momentum going The 15 "Next Steps" identified by Stantec Consulting Ltd., were reviewed by Council and the direction noted Step 1 Confirm how to engage ratepayers and gain commitment for project Consider establishing a Water Service Steering Committee which includes Champion(s)/Local Representatives in each WSA Councillor Wittstock moved that Council approve in principle, the concept of the formation of a Water Service Committee, consisting 154/04 of representation from each Water Service Area, Kneehill County Council and Kneehill County Administration CARRIED 4 / Reeve CAO KNEEHILL COUNTY COUNCIL MEETING MINUTES April 6, 2004 0 Council directed Administration to provide a draft "terms of reference" for this Water Service Committee, at the April 13t' Council meeting for Council consideration and the actual formation of this Committee Step 2 Confirm type of water system to be installed — Constant or Flow System — Refer to Water Service Committee for recommendation to Council Step 3. Finalize proposed direction on establishing connection fees — County Wide or per WSA — Council will address after discussed by Water Service Committee Step 4. Prioritize use of water based on allocation available 155/04 Councillor Woods moved the allocation of water be based on people first for domestic use, then agricultural use for cattle swine and poultry CARRIED Step 5 Establish ratepayer portion of funding model — Local Improvement Bylaw Method or Capital Utility Investment Method Council noted it would be premature to make a decision on this step, but there would be a financing model in place when other decisions had been made Step 6: Confirm approach on ownership and operation of WSA's — It was noted this would be a Council decision once all the issues including legal liabilities, had been addressed Step 7. Enter into a supply contract with the KRWSC — can proceed once the KRWSC and Three Hills have established rates Step g Distribute Capital Connection Fee/Operational Cost Estimates to ratepayers to establish the commitment within each WSA — refer to Water Service Committee and once have definite numbers this can be addressed by Council Step 9 Submit Report to Alberta Infrastructure and PFRA to secure funding for entire project based on a four to seven year program Target 2/3 funding for the project — refer to Water Service Committee Step 10. Prioritize WSA's based on commitment, need, and then overall WSA costs based on funding availability and grant allocations — refer to Water Services Committee Step 11. Establish direction on how systems are to be sized _refer to Water Services Committee Step 12: Prepare a water utility rate model, considering AEUB guidelines Councillor Woods moved that Administration be directed to 156/04 proceed with the Water Utility Rate Model CARRIED 5 ` Reeve CAO KNEEHILL COUNTY COUNCIL MEETING MINUTES April 6, 2004 I �J 1� .7 Step 13• Develop Bylaws and Polices — referred to the Water Services Committee for direction Step 14 Discuss partnerships amongst other water providers and consider one utility to own and operate all water systems — referred to the Water Services Committee for direction Step 15 Begin regulatory approvals and preliminary design — refer to Water Services Committee — need for more information and study Council expressed the concern that ratepayers need to be aware the water project will be proceeding quickly, and the County needs to have people to assist with this process Councillor Crawford thanked Stantec Consulting and Administration for the time and effort spent in preparing the Kneehill County Water Servicing Strategy ADJOURNMENT The meeting adjourned at 1130 A.M Z Reeve CAO A r , " Kneehill County Water Servicing Strategy Present the final information contained within the Kneehill County Water Servicing Strategy Report. Review estimated connection costs and potential financing options. Identify ownership and operation alternatives Present information on the Equity Water System. Obtain feedback on the conclusions and recommendations from the Water Servicing Strategy. Identify and discuss proposed "Next Steps" that Kneehill County can consider implementing as part of their overall Water Servicing Strategy. Kneehill County Water Servicing Strategy Kneehill County Water Servicing Strategy Eq 119 i ❑ Maybe 100 i 81 • NO ■ Yes 8p ❑ TOTAL 60 49 40 29 26 22 20 19 Mori wr!t 0 E O L e Y N U U Y V �3 Y d O v C C_ � N d c 3 Y O N • 9 a Kneehill County Water Servicing Strategy Constant Flow = 1 igpm per household MDD Flow based on per capita consumption Kneehill County'' Water Servicing Strategy 6 Kneehill County Water Servicing Strategy Two Water Delivery System Options Considered Full Flow Full Pressure Delivery System Design Flow Rate: 4 igpm Minimum pressure: 30 psi Constant Flow Delivery System Design Flow Rate: 1 igpm Minimum pressure: 15 psi Kneehill County Water Servicing Strategy 1 igpm per residence Minimum delivery pressure 15 psi Cistern used to provide on site storage 1-2 day storage provided (based on 500 gal cistern) Water is pumped from cistern - -- -- _AW Kneehill County Water Servicing Strategy 4 igpm per residence Minimum delivery pressure 30 psi No cisterns required No pumping required in homes Large storage and pumping facilities required off site Requires larger piping Higher cost than Constant Flow System Higher risk of Service Interruptions Kneehill County Water Servicing Strategy 723 km (450 miles) of pipe 1000 m of pipe per connection Constant Flow = $25 / lin.m of pipe Full Flow = $39 / lin.m of pipe Pipe sizes: 1.5" to 8" Booster Stations & Reservoirs Crossings Creeks, Roads, Rail Utilities & Pipelines Air relief assemblies Contingency — 20% System costs to curb stop Ca Water Service Area Number of Total Cost Existing Constant Flow Potential 0 igpm) Connections Total Cost Full Flow (4 igpm) Kirkpatrick WSA 28 $359,600 $631,000 Hesketh WSA 58 $1 510 100 $2,727 800 Carbon WSA 101 $2,668,100 $3,862,900 Swalwell WSA 107 $2,460,800 $4 149 900 Acme WSA 110 $3 179 600 $5,184,300 Linden WSA 176 $3,615 400 $5 133,600 Three Hills West 138 $4,753,600 $6,547 000 Total Cost for WSR 718 $18,547 200 $28,236,500 N 0 �a A NA 0 Maximum Average Average WSA Average WSA Payment Options %Connection WSA WSA Contion Fee Connection Fee Connection Connection j,neC /3 Funding 2/3 Funding Fee Fee 100% $34,400 $25,800 $17,200 $8,600 Total Cost 60% $57,400 $43,100 $28,733 $14,367 Monthly Payment Plan 100% $221.64 $166.23 $110.82 $55.41 No Down Payment 60% $369.83 $277.69 $185.13 $92.56 100% $189.42 $134.01 $78.60 $23.19 $5,000 Down Payment 60% $337.61 $245.48 $152.91 $60.35 100% $157.21 $101.80 $46,39 $0.00 $10,000 Down Payment 60% 1 $305.40 1 $213.26 $120.70 $28.13 N Payment Options %Connection Maximum WSA Connection Fee Average WSA Connection Fee Average WSA Connection Fee 1/3 Funding Average WSA Connection Fee 2/3 Fundin 100% $47,400 $39,300 $26,200 $13,100 Total Cost 60°% $79,100 $65,500 $43,667 $21,833 Monthly Payment Plan No Down 100% $305.40 $253.21 $168.81 $84.40 Payment 60% $509.64 $422.02 $281.34 $140.67 $5,000 Down 100% $273.18 $221.00 $136.59 $52.19 Payment 60% $477.43 $389.80 $249.13 $108.46 $10,000 Down 100% $240.97 $188.78 $104.38 $19.97 Payment 60% $445.21 $357.59 $216.91 $76.24 3 0 Kneehill County Water Servicing Strategy Kneehill County Municipal Ownership "... in the interest of public safety, Kneehill County will develop a plan to assume an ownership role in all rural water distribution systems..." May 14, 2002 unanimous motion by Kneehill County Council KRWSC Ownership Commission is in place, creates County wide partnership with Villages and existing Water Coop Water Cooperative Ownership Cost recovery basis, difficult to grow the system or combine with others Private Ownership Corporations need a return on their investment -10 -15% Kneehill County-} Water Servicing Strategy; J 43 Us for the County is available from the KRWSC. Public interest in this project is high ( approx. 60%). Ratepayers want an economical and reliable source of high quality water. Seven main WSA were identified based on hydraulics, economics and topography from KRWSC. 2004 capital cost estimate for this project is $18,600,000 — Constant Flow System $28,250,000 — Full Flow System KRWSC Transmission cannot supply instantaneously 4 igpm to all users for a Full Flow System. Minimum 60% connection rate required for economical system Kneehill County Water Servicing Strategy County to consider connecting Hamlets such as Swalwell and Torrington to WSA Water systems. All rural water lines in each WSA are Class 1 pipelines as defined by EPEA. West Three Hills WSA water supply to be confirmed from either Town of Three Hills and/or KRWSC. Future connections built into hydraulic analysis of system. The typical cost for a family of 3 based on $10,000 down payment financed over 25 years @ 6%, 2/3 grant funding, 60% connection rate, cost of water $1.8731M3, and $0.40/ m3 is $94.60 for a Constant Flow system and $142.71 for a Full Flow system. Kneehill County Water Servicing Strategy Adopt policy to install Constant Flow Systems for all WSA's except possibly Kirkpatrick WSA Pursue Federal and Provincial funding opportunities for long term grant funding (target 2/3) for entire project Engage public and officially appoint a Steering Committee which would include representation from each WSA Prioritize use of water based on current allocation Consider sizing rural water distribution systems based on 100% connection to accommodate future growth Develop an AEUB defendable Utility Rate Model Partner with existing Municipalities for Bulk Water/Fire Storage Facilities to increase level of service to ratepayers Consider forming Water Utility for ownership and operation Kneehill County Water Servicing Strategy Confirm how to engage ratepayers and gain commitment for project. Consider establishing WSS steering committee which includes Champion(s)/Local Representative(s) in each WSA Confirm type of water system to be installed -- Constant or Full Flow System Finalize proposed direction on establishing connection fees — County Wide or per WSA Prioritize use or water based on allocation available Establish ratepayer portion of funding model — Local Improvement Bylaw Method or Capital Utility Investment Method Confirm approach on ownership and operation of WSA's Enter into a supply contract with the KRWSC M Distribute Capital Connection Fee/Operational Cost Estimates to Ratepayers to establish commitment within each WSA Kneehill County Water Servicing Strategy" p< Submit Report to Al and PFRA to secure funding for entire project based on a four to seven year program. Target 2/3 funding for project. Prioritize WSA's based on commitment, need and then overall WSA costs based on funding availability and grant allocations Establish direction on how systems are to be sized (ie: 100% future connection or less) Prepare a water utility rate model. Consider AEUB guidelines Develop Bylaws and Policies Discuss partnerships amongst other water providers and consider one utility to own and operate all rural water systems Begin regulatory approvals and preliminary design 11 m J +J J r W A 11 • 0 Council Agenda Item #6(g) TO. Gene Kiviaho Reeve Hoppms Members of Council FROM Rob Mayhew DATE April 6, 2004 Issue New Signs Background Signs with new County log identified in the 2004 budget $35,000 00 2 at each end of Hwy 21, 2 at each end of Hwy 27, 1 at Hwy 575 by Drumheller 1 on the Office and 1 on the Shop Discussion Copies of sign designs handed out for review Sample costing Option #1 for 1 sign NOTE (Sign Posts — consist of 2-3post sets @ $482.42each = $964.84 per sign) $2,951 08 plus 2 sign post sets $964.84 = $3,915 92 7 large signs @ $3,915 92 = $27,411 44 50 small signs@ $55 69 = 2,784.50 Total $30,195 94 Financial Implications Total cost of signs = $30 195 94 Recommendation 1 That Council approve the Option #1 design for the large signs 2 That Council approve the purchase 7 large signs/posts and 50 small signs that ve the new County logo I Rob M yh Gene viaho Public Works Superintendent CA 50 LJ L.J • Council Agenda Item # 7(a) TO Gene Kiviaho Reeve Hoppins Members of Council FROM Rob Mayhew DATE- April 6, 2004 Issue Jonathan Bowman request for Equity Water Hook Up for NW 6 32 23 W4 Subdivision Background At the October 8, 2002 Council Meeting a motion was made in regards to the Equity Water Distribution System "that any further applications be held pending the completion of the Water/Wastewater Study " Mr Bowman had been sent a letter from the County in response to his request to connect a subdivision development to the Equity System stating that Kneehill County was in water contract negotiations with the Town of Three Hills and would contact him when a contract settlement had been reached on the Equity Water System On March 14, 2004, another letter was received from Mr Bowman again requesting hook up to the Equity Water System stating that he had been in discussions with the Town of Three Hills and they had no issue with Kneehill County adding this subdivision to the Equity Water System even though there is not a current contract in place A reply letter was sent to Mr Bowman on April 1, 2004 stating that the negotiations with Three Hills are continuing and we would contact him when a contract settlement had been reached Discussion There are other problems identified as well as ongoing dscussions with the Town of Three Hills on the Equity Water System The issues with the exisiting hook ups are no water at times, changes in pressure and line breaks Stantec Engineering has just completed a Water Strategy Study for the County which will be reviewed at the April 6 2004 Special Council Meeting Financial Implications Recommendation 1 That Council reconfirm their position on that any further hook-ups be held un 1 the issues with the Equity Water System are addressed. Rob Ma e Ge e iviaho Public Wor Superintendent CAO 57