One-Sentence Summary
The Owen Sound Committee Operations addressed a deputation from GSS Engineering concerning water mains, reviewed a report from the Manager of Water regarding drinking water rates, and confirmed that no notices of motion were presented.
Whole Meeting Summary
Jacob Bartley of GSS Engineering presented a proposal to replace water mains on 32nd Street East in three phases using PVC piping and installing a pressure reducing valve, with staff clarifying that approved funding covers construction costs but excludes directional drilling. A deputation from Hemson Consulting provided an update on the water rate study process, with Andrew Mirabella presenting background information on cost increases, licence renewals, and key inputs such as consumption projections, operating costs, capital programming, asset management, and reserve fund contributions. Report CR-25-043 from Director of Corporate Services Re 2025 Water Rate and Sewer Surcharge Update outlines projected operating cost increases due to inflation, proposed capital programming investments, and service charges for specialized staff services while addressing the gap between ideal investment levels adjusted for inflation and actual plan investments. Staff recommended advancing a five percent water rate increase effective July 1st while keeping the wastewater surcharge at 124 percent, with Council addressing concerns about capital costs and infrastructure debt before moving forward with the presentation. The Operations Committee approved Report OP-25-012 to amend the Product Care Agreement for increased hazardous waste funding per kilogram upon a carried motion despite opposition from Speaker 01 before a presentation discussed drinking water standards referencing the Walkerton and Flint crises. The agenda item concerning motions for which notice was previously given was addressed by a speaker Speaker 04 no such motions were present for consideration during the meeting proceedings. The agenda item for notices of motion was addressed by a speaker Speaker 05 no notices were presented this evening during the municipal council session as indicated in the structured eScribe evidence.
Most Newsworthy Items
- Council Carries Motion to Review Water Rates Annually: A speaker noted that a contractor has an ambitious schedule but is confident in it. Regarding rate reassessment, a speaker cautioned council to consider significant infrastructure debt and reserve funding before reducing rates, stating that underfunding poses risks of legal non-compliance, health issues, and infrastructure failures like broken mains. Another speaker explained that annual reviews return to committee while Hemson conducts comprehensive five-year reviews, noting that water and wastewater increases reflect non-discretionary costs for essential services. A motion was moved to carry the recommendation as presented after questions regarding reserve balance assumptions were addressed.
- GSS Engineering Proposes Phased Water Main Replacement on 32nd Street East: Jacob Bartley of GSS Engineering presented a proposal to replace water mains on 32nd Street East in three phases. The project involves replacing existing ductile iron and asbestos cement pipes with a single PVC main, installing a pressure reducing valve to connect municipal and industrial zones, and realigning a diverted section on East Bayshore Road. Preliminary construction cost estimates total just over $1.5 million, which is within the city’s received funding of $2.4 million from the Housing Enabling Water System Fund. The team aims to award the construction contract at the June 16th council meeting with work starting in late June and finishing by mid-September.
- Committee Approves Product Care Amending Agreement: The Operations Committee considered an amending agreement with Product Care Association of Canada to increase funding for hazardous waste collection per kilogram. Member Hawkins moved the recommendation and Councillor Hamley opposed it; the motion was carried with one councillor opposed. A presentation on drinking water standard of care followed, explaining legal responsibilities and safety protocols following the Walkerton crisis.
- Water Main Replacement Project Funding Details: A speaker confirmed that a lot south of 32nd Street has been rezoned for residential development involving eight apartment buildings. Staff clarified that approved funding covers construction costs but excludes directional drilling, which is estimated at $200,000. Including engineering and contingency costs, the total project cost is projected to be around $2.2 million. The city’s portion is 27% of the cost, while 73% comes from grant funding.
Meeting Recap
5.a Deputation from GSS Engineering Consultants Ltd
Jacob Bartley of GSS Engineering presented a proposal to replace water mains on 32nd Street East in three phases using PVC piping and installing a pressure reducing valve. Preliminary construction cost estimates total just over $1.5 million, which is within the city’s received funding of $2.4 million from the Housing Enabling Water System Fund. A speaker Speaker 09 lot south of 32nd Street has been rezoned for residential development involving eight apartment buildings. Staff clarified that approved funding covers construction costs but excludes directional drilling, estimated at $200,000, making the total project cost around $2.2 million with the city covering 27%. Concerns were raised about material sourcing tariffs and traffic control plans for the soccer complex.
GSS Engineering Proposes Phased Water Main Replacement on 32nd Street East
Jacob Bartley of GSS Engineering presented a proposal to replace water mains on 32nd Street East in three phases. The project involves replacing existing ductile iron and asbestos cement pipes with a single PVC main, installing a pressure reducing valve to connect municipal and industrial zones, and realigning a diverted section on East Bayshore Road. Preliminary construction cost estimates total just over $1.5 million, which is within the city’s received funding of $2.4 million from the Housing Enabling Water System Fund. The team aims to award the construction contract at the June 16th council meeting with work starting in late June and finishing by mid-September.
Water Main Replacement Project Funding Details
A speaker Speaker 09 lot south of 32nd Street has been rezoned for residential development involving eight apartment buildings. Staff clarified that approved funding covers construction costs but excludes directional drilling, which is estimated at $200,000. Including engineering and contingency costs, the total project cost is projected to be around $2.2 million. The city’s portion is 27% of the cost, while 73% comes from grant funding.
Committee Receives Water Main Replacement Project Presentation
The committee received a presentation regarding the Water Main Replacement Project benefits, including residential support for SkyDev and contributions toward pressure-reducing valves. Speaker 02 requested a cost breakdown between city funds and grants, which staff noted would be detailed in the final contract award but agreed to provide as information. Concerns were raised about material sourcing tariffs, with staff indicating contractors typically source competitively, though specific components like PRVs appear Canadian-based. Traffic control plans for the soccer complex were discussed, with expectations to close only one lane at a time unless necessary. A motion was moved by Member Hawkins and carried to receive the deputation for information.
5.b Deputation from Hemson Re City of Owen Sound Rate Study
A deputation from Hemson Consulting provided an update on the water rate study process. Andrew Mirabella presented background information, noting that the previous study was completed in 2020 and this update addresses increasing costs and licence renewal requirements. The presentation outlined key inputs including billed consumption projections, operating costs, capital programming, asset management, and reserve fund contributions.
8.e.1 Report CR-25-043 from Director of Corporate Services Re 2025 Water Rate
The report CR-25-043 outlines a ten-year water rate and sewer surcharge update projecting operating costs to rise from approximately four and a half million dollars to about 6.3 million dollars by the end of the planning period due to inflation. Capital programming is estimated at roughly 30 million dollars for water and 15 million dollars for wastewater, with significant investment front-loaded in the 1st five years. The presentation noted that annual rate increases are required to support these capital programs and rising operational costs, while a gap exists between ideal investment levels adjusted for inflation and actual plan investments. Although reserve contributions are increasing, the model indicates the city remains significantly below required investment levels for both water and wastewater at the end of the period. The team proposed adding service charges for specialized staff services to shift operating costs to users who utilize them. A councillor questioned the one percent consumption forecast increase for meter changes, which the presenter Speaker 10 conservative approach.
Water Rate Study Projects Ten-year Cost Recovery
The rate study projects a ten-year period with water rate increases beginning July 1, 2025, utilizing a fixed charge and two-tier variable consumption structure. Current revenues are split evenly between fixed charges covering system costs and variable rates providing user control.
Capital Investment Gap Requires Reserve Management
A speaker Speaker 11 projections for infrastructure projects rely on rates alongside OCIF and grant funding. The presentation highlighted a gap between ideal annual capital investment levels adjusted for inflation and the actual investment built into the plan. Although contributions to reserves are increasing, the model shows the city remains significantly below required investment levels for both water and wastewater at the end of the period. Due to the difference between total required investment and financial feasibility, the strategy involves managing contributions with reserve funds to create a sustainable system.
Projected Rate Increases Driven by Capital Costs
The presentation outlined projected water and wastewater rate increases over a ten-year planning horizon driven by capital costs and operating expenses.
New Meters Impact Billing Accuracy and Revenue Recovery
A speaker Speaker 12 and variable water rates are structured to ensure revenue recovery for costs if usage changes at any time. Another speaker Speaker 13 new meters would affect bills or improve efficiency. The staff member clarified that capital costs are already in the model and the new meters will make bills reflect actual usage more accurately. Individual impacts depend on the change-off program itself, allowing customers to monitor true impacts and adjust consumption patterns. A second staff member added that new meters will not improve residential efficiency but may capture previously unmeasured usage for industrial and large commercial accounts. This could allow recovery of more revenue from those users, potentially leading to rate adjustments if sufficient, though significant effects are not yet anticipated.
Service Charges Metering Capital Gap and Loss Reduction
The team proposed adding service charges for specialized staff services to shift operating costs to users who utilize them.
8.e.2 Report OP-25-017 from Manager of Water and Wastewater Re Drinking Water
A report recommended moving forward with a five percent water rate increase effective July 1st while maintaining the wastewater surcharge at 124 percent for the next fiscal year. Staff discussed the pros and cons of approving a multi-year rate increase versus annual approvals, noting benefits like predictability against challenges such as changing inputs and flexibility. Council members questioned the timing of new meter installations and raised concerns about specific capital project costs listed in appendices. A speaker Speaker 14 water rate reviews are essential for equity because utility consumption is constant regardless of income, making rate increases more impactful than property taxes. Another speaker Speaker 07 consider significant infrastructure debt and reserve funding before reducing water rates, warning that underfunding poses risks of legal non-compliance and health issues. A motion was moved to carry the recommendation as presented after questions regarding reserve balance assumptions were addressed.
Committee Discusses Water Rate Increase and Metering
A report recommended moving forward with a five percent rate increase effective July 1st and maintaining the water wastewater surcharge at 124 percent for the next fiscal year. The department is staffed by 20 full-time employees funded from rates, with recognized insurance savings of approximately $230,000 in 2025. Staff discussed the pros and cons of approving a multi-year rate increase versus annual approvals, noting benefits like predictability and administrative efficiency against challenges such as changing inputs and flexibility. Council members questioned the timing of new meter installations and raised concerns about specific capital project costs listed in appendices.
Council Reviews Water Rates and Meter Implementation
A speaker Speaker 14 water rate reviews are essential for equity because utility consumption is constant regardless of income, making rate increases more impactful than property taxes. A councillor asked about the timeline for implementing new meters across the city and whether future efficiencies would allow for annual rate adjustments. The director responded that some efficiencies are expected and the project is scheduled for completion in October.
Council Carries Motion to Review Water Rates Annually
A speaker Speaker 06 contractor has an ambitious schedule but is confident in it. Regarding rate reassessment, a speaker Speaker 07 consider significant infrastructure debt and reserve funding before reducing rates, stating that underfunding poses risks of legal non-compliance, health issues, and infrastructure failures like broken mains. Another speaker Speaker 08 reviews return to committee while Hemson conducts comprehensive five-year reviews, noting that water and wastewater increases reflect non-discretionary costs for essential services. A motion was moved to carry the recommendation as presented after questions regarding reserve balance assumptions were addressed.
8.b.2 Report OP-25-012 from Supervisor of Environmental Services Re Product Care Amending
The Operations Committee approved an amending agreement with Product Care Association of Canada to increase funding for hazardous waste collection per kilogram. Member Join moved the recommendation, which was carried despite opposition from Speaker 03 presentation on drinking water standard of care followed, discussing the Walkerton crisis and the Flint water crisis without going into detail.
Committee Approves Product Care Amending Agreement
The Operations Committee considered an amending agreement with Product Care Association of Canada to increase funding for hazardous waste collection per kilogram. Member Hawkins moved the recommendation and Speaker 01 opposed it; the motion was carried with one councillor opposed. A presentation on drinking water standard of care followed, explaining legal responsibilities and safety protocols following the Walkerton crisis.
Flint Water Crisis Details and Legal Outcomes
A speaker Speaker 15 water crisis, noting that after a century of industrial use, the system was highly contaminated and underfunded. Residents reported skin irritation, bad smells, and illness immediately after the new system went live in 2014. Charges were laid against state officials in 2012 but dropped in 2023 due to a legal loophole preventing responsibility for consequences. The corrosive water leached lead from galvanized steel pipes, causing children’s blood lead levels to triple within 18 months. The community population declined by over 20,000 people as residents fled their homes without clean water.
speaker Speaker 16 Jadedness Can Lead to Quality Control Failures
A speaker Speaker 16 jadedness can lead to quality control failures, citing Flint and a recent Calgary water main break where lack of inspections and untested valves caused massive damage. The presentation noted that while industrial mains are currently in good condition, future plans include non-destructive testing for high-pressure concrete mains and increased emphasis on valve exercising to ensure operational readiness during breaks. Following the presentation, the Operations Committee recommended that City Council receive staff report OP-25017 regarding the Drinking Water Standard of Care for information purposes only. The motion to receive the report was moved by Member Join and carried unanimously.
10 MOTIONS FOR WHICH NOTICE WAS PREVIOUSLY GIVEN
The agenda item for motions previously given notice was addressed by a speaker Speaker 17 none.
13 NOTICES OF MOTION
The agenda item for notices of motion was addressed by a speaker Speaker 05 no notices were presented this evening.
Links
Read full transcript: https://helpos.ca/transcripts/owen-sound/committee-operations/2025-04-17
Agenda page: https://helpos.ca/agendas/owen-sound/committee-operations/2025-04-17
Official meeting page: https://pub-owensound.escribemeetings.com/MeetingsCalendarView.aspx/Meeting?Id=07c44a3f-867a-43e3-a260-9e173bd2428a
Original video: https://video.isilive.ca/owensound/New Encoder_OP_2025-04-17-05-30.mp4