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2001/09/17SPECIAL COUNCIL MEETING Monday, September 17, 2001 Order of Business and Agenda Package SPECIAL COUNCIL MEETING AGENDA September 17, 2001 5:00 P.M. COUNCIL CHAMBERS REPORTS Community Services Matters 1. Chief Administrative Officer MW-2001-124, Repo~. Water Meter Information Miscellaneous Matters t. Chief Administrative Officer CD-2001-11, Minutes of Council Meeting of August 13, 2001. 2001-201 2001-202 2001-203 2001-204 BY-LAWS To authorize the Council to borrow money by way of debentures. (Re: Zimmerman Avenue Road Construction) To authorize the Council to borrow money by way of debentures. (Re: Millennium Trail - Phase I) To authorize the Council to borrow money by way of debentures. (Re: Wiltshire Boulevard Road Reconstruction) To authorize the Council to borrow money by way of debentures. (Re: Collins Drive/Toby Crescent) ADJOURNMENT: The City of Niagara Falls JJj Community Services Department Municipal Works 4310 Queen Street P.O. Box 1023 Niagara Falls, ON L2E 6X5 web site: www.city.niagarafalls.on.ca Tel.: (905) 356-75TI Fax: (905) 356-2354 E-mail: darrells@city.niagarafalls.on.ca Ed Dujlovic, P. Eng. Director MW-2001-t24 September 17, 2001 His Worship Mayor Wayne Thomson and Members of the Municipal Council City of Niagara Fails, Ontario Members: re: MW-2001-124 Water Meter Information Report RECOMMENDATION: That this report be received for information. BACKGROUND: In order to discuss the current situation with respect to the rates for water and sewer, the first step that needs to be taken is to review the history and the decisions made by the City that brought us to the point that we are at today. In 1992, Council authorized the formation of a Water & Wastewater Subcommittee. One of the first recommendations of the Committee contained in report MW-92-278 was increasing the sewer surcharge from 70% to 85% and the removai of the corresponding amount from the urban service area property tax. In addition, the Committee was to continue investigating sewer charges, billing periods, billing methods, water charges and other related matters. The Committee, late in 1993, presented report MW-93 -246 that recommended the sewer surcharges be increased to 100% for 1994 and that the Water and Wastewater Subcommittee further investigate the utility approach to water and wastewater, including universal water metering. The report indicated that water and wastewater should be totally funded by user pay fees, thus there would be no funding through taxation and, in order to implement this utility approach, severai changes were required to be made to current practises for water and wastewater billing. The changes included the revision to the water rate table, universal water metering and increases to the sewer surcharge, so that none of the sewer cost was supported by taxation. The report was approved by Council. It should be noted that the Province, through the Ministry of Natural Resources, had issued a discussion paper that year which promoted universal water metering and mandatory metering, however, due to the change in government this discussion paper was never acted upon. Working Together to Serve Our Community Municipal Works Fire Services Parks, Recreation & Culture Business Development 2001-9-10 -2 - MW-2001-124 In 1995, Council ratified report MW-95-58 which recommended the establishment of a user pay water and wastewater utility in which all cost for the delivery of water and sewer services be recovered from the water and sewer bill, universal water metering and that staff implement a strategy for the establishment of the water and wastewater utility. The report did go into detail on the merits of establishing a water and wastewater utility, universal water metering, and that all sewage cost would be recovered through a user fee based on the mount of water used by the customer. Accordingly, the sewer surcharge rate was increased annually with the goal of having all costs associated with the sewer system appear on the water and sewer bill. The report also outlined the impact that could be expected on the various customers - those being the flat rate residential component and the existing metered sector made up of multi family residential, industrial and institutional users. The report did indicate that for the average family (2.56 for Niagara Falls) using practical water conservation techniques the cost by going to a metered system would remain about the same. The report also stated that households with one to two people should realize a net decrease and similarly larger households would realize a net increase in cost. It was noted that the change in cost to the individual customers was difficult to predict and it was dependent upon the actual water consumption for the individual household, however, the most important aspect of going to meters was that the residential customer could then control their cost by altering their water usage. As a result of continued concerns raised by homeowners, in particular those that have only one or two persons per household, and as a result of the ever increasing water and sewer rates, Council approved the retention of Acres and Associated Limited to carry out a water meter and rate study. The study process included a public attitude's survey, water and wastewater flows, waters meter evaluation, financial analysis, implementation strategy and public education. As part of the process a Public Advisory Committee was formed that consisted of members of the public, which was made up of residential users and users from the already metered section which included multi family, industrial and tourist commemial. The results of the study were presented to Council in early 1999 with a recommendation to Council to proceed with the installation of water meters for the residential sector and that staff continues to review the impacts on the proposed rate structure and report back to Council. One of the highlights of the report was the results of the public attitude survey which indicated the majority (83%) of the respondents felt that use based billing is fair and (60%) would support a use-based billing system for water and sewer. Although the report did present a chart showing the impacts of implementing metering and new rate structure with low volume households enjoying a significant decrease in cost and average households remaining about the same, further study was needed on the rate structure to determine the impacts on the households in Niagara Falls. Accordingly, early in 2000, the City retained R.M. Louden Limited to determine the rate structure for water and sewer. Late in 2000, report F-2000-74 Utility Rate Structures was adopted by Council. One of the notes contained in the report from the consultant which was provided to Council was as follows, "Note, that the use of water consumption as a basis for billing sewer charges is common in 2001-9-10 -3 - MW~2001-124 Ontario. This is the most feasible way of approaching user pay for recovering sewer cost. Water meter readings are a surrogate for measuring sewage flows." and it goes on to say, "Niagara Falls as in most Municipalities, customers metered water flows are used in the calculation ora customer sewage charge. Overall, this is a fair way of achieving user pay for the sewage cost. It is meant to allocate sewer cost in proportion to each customer's usage of the system. Although, them is a flow deferential between water and sewer systems due to seasonal water use in the summer and for sewer due to inflow and infiltration, these variations more or less even out over the year. The use of water consumption is reasonable surrogate for sewage flows and is the only practical way of achieving user pay for sanitary sewer charges." Another important note contained in the report was, "Also, there will be high residential water users who will not be happy with paying for what they use. It must be emphasized that this is now a user pay system and customers have a measure of control over the size of their bill." PUBLIC INFORMATION The City undertook a Public Information Program as part of the installation of the water meters. The program concentrated on the following points: 1. The introduction of the water meter 2. The reasons for metering water (i.e., faimess) 3. Reading the meter and detecting leaks 4. Conservation At the start of the process, two public meetings were held in May of 1999, one at Our Lady of Peace Parish Hall and the other at the Memorial Arena. The meetings included City Staff and representatives of Schlumberger. At the meetings, there were several displays showing why the City decided to switch to a use-based system, as well as information on the type of meter, and conservation tips. The meetings were attended by 47 people. A newsletter was prepared and cimulated to every home in Niagara Falls through the Ad Bag. The newsletter explained all aspects of the water meter program including conservation tips. At the same time as the circulation of the newsletter, ads were placed in the Niagara Falls Review, The Shoppers News and on the radio (River 101.1). The ads contained minimum information, but included a "hotline" and web site address where homeowners' could receive additional information. The "hotline" was maintained by the City and Schlumberger RMS for the duration of the contract. The web site was updated from time to time to include current information, but in 2000 the web site was discontinued. City staffplaced a booth at Earth Day in 1999, which included a demonstration of conservation using low flow shower heads and taps and all the information which was available for the original public meetings. This booth was set up again at Canada Day at Optimist Park this year to help further explain conservation. Handouts were available at both places to provide additional information. Further, when the Building Staff held their annual information booth at Niagara Square, water meter handouts were available. 2001-9- l 0 -4 - MW-2001-124 In addition to the direct efforts of the City, Schlumberger handed out information. In their initial contact letter, Schlumberger included the reasons that the City was switching to the Use-based billing system. Further, at each install, a drip card was dropped off. The drip card included information on how to read the meter, how to detect leaks and how much leaks could increase a homeowner's water bill. In preparation for the start up of the billing, City Staffworked closely with Niagara Falls Hydro to prepare and include information with the Hydro Bill. There were two bill stuffers included in the Niagara Falls Hydro bills. The first stuffer informed people that Niagara Falls Hydro would be reading the meters on behalf of the City and that the bills would be combined. The second stuffer included a mock up &the bill showing how to correctly read the bill and monitor your own water usage. A separate joint newsletter has been prepared and circulated to the homes in Niagara Falls. It included conservation tips on how to lower water usage. This was also discussed on the Mayor's "Call in Show" on several occasions. In addition to all the information which was circulated, staff answered thousands of direct inquiries which were made either by phone or in person. At that time, staff always tried to provide the best information that was available regarding installation, billing, conservation and/or leak detection. However, particularly with billing and rates, those decisions were not made until the fall of 2000. Therefore, staffwas not in a position to provide the information to the public until that time. However, it is obvious, based on the recent inquiries and concerns, that more needs to be done to help the residents understand the water meter issue, including rates and conservation. To that end staff is meeting with OEB to review public education options and prepare a plan to provide the public with the information they require. The program will be concentrating on answering the questions about rates and conservation. Further, staff will be reviewing the present bill to see if any changes can be made to make the information clearer. It is hoped that an increased public awareness program will answer the majority of questions that are coming forward. 2001-9-10 -5 - MW-2001-124 Answers to frequently asked questions are attached to this report for Council's information. Darrell E. Smith, P.Eng. Manager of Engineering Services Director of Municipal Works stfie~_~fully Submitted by: Approved by: John MacDoet~d~~ ~l~irector of Community Services DES/des 2 Go to the water meter and if the red triangle located on the top of the meter is moving then there is a leak somewhere in the plumbing. How can I check for a leaky toilet? Go to the toilet tank and listen for water running. Place some food dye in the tank at the back of the toilet bowl and if the colouring makes it way into the bowl, providing no one has used the toilet, then the toilet is leaking water. What can I do to decrease my consumption? Use a low flow shower nozzle. According to Environment Canada (ht~p://www.ec.gc.ca/water), a low flow showerhead can decrease one's consumption by 50% or more. Do not usc the toilet to dispose of dry waste. Keep a daily log of how you are using water (i.e., lawn watering, car washing, how many times the toilet is used, how many showers are taken in a day and how much laundry is being done) and reduce the frequency if possible. Use a bucket with a sponge plus a trigger nozzle on the hose to wash your vehicle. Compared to a running hose, you will save about 300 litres of water. Make sure you arc doing a full load of laundry and the dishwasher is full when you use it. Has anyone actually saved under the new system? YES. Based on the first two billing periods, 62% of homeowners are consuming 26 cubic meters per month or less. Note, homeowners should expect that their consumption over the summer months will be higher due to normal seasonal habits. How does the City determine the rates? The cost to the water and sewer system are made up of.' *the charges from the Region for the purchase of water and the treatment of sanitary sewage - The bill shows - Service Charge - Water, Sewer. *maintenance costs incurred by the City *the capital costs, i.e., replacing old pipes *the preparation of the bills and their collection. 740 gal. ~egiona! Charge How much does the Region charge for water? .318 per cubic meter How much does the City charge for water? .410 per cubic meter 4 Why the difference? Not all of the water that is pumped from the Regions water treatment plant makes it to the customers in Niagara Falls. Water is lost throughout the system. Have the meters in Niagara Falls' homes been accurate? There have been relatively few problems with the meters. In fact, the meters in homes probably under read by 3%. This is an allowable standard and is factored in when setting the rates for water consumption How much does the Region charge for sewer treatment? .489 per cubic meter How much does the City charge for sewage treatment? .806 per cubic meter Why the difference? There is ground water that leaks into the sanitary system. 30% of the sanitary sewer system in Niagara Falls is still combined. What this means is that there is one pipe from the street that collects both sanitary sewage and storm water off the roads. Accordingly, not only does the City have to treat the sewage that the customers contribute to the system we also have a considerable amount of storm water entering the system that needs to be treated. The City is responsible for the cost of treatment of storm water. What is the City doing to resolve the problem of its aging infrastructure? Unfortunately, 30-40% of the City still has the dated combined sewers found, naturally, in the older sections of the City. The cost to separate all of these combined sewers is in the neighbourhood of $100 million. The 2001 budget allocated $2.3 million to the sewer separation program. Obviously, it will be some time before all sewers in the City are separated. Why is the sewer charge based on consumption? It is the most common method of determining sewer usage in Ontario. This method was recommended by the City's consultant as the most equitable way of charging consumers for sewage because it is based on the mount of water used. Some municipalities place sewage charges on their tax bills. When such a method is used, the sewage rates are determined by assessment value of the home. Using water consumption rates seems to be a more logical way of determining these charges. If the sewer charges were to go on the tax bills what would the results be? A resident's tax bill could increase 30%. (Of course, the water bill would decrease). Because of Provincial capping requirements (certain classes of taxes can only rise a certain percentage per year), homeowners would be subsidizing the sewer charges of commercial classes. Is the residential sector currently subsidizing the commercial sector? No. Under the former fiat rate system residential customers contributed about 59% of the revenues of water bills despite the fact that usage is split fairly evenly between the two groups. The user-based water meter system has helped rectify this inequity. Why am I charged so much when not all of the water I use goes into the sewer? Other than the summer months, more than 90% of the water usage in a home ends up the sanitary sewer. Also, the City needs to raise funds to pay for the water that is entering the sewer system for which the City is billed by the Region when it is treated at the sewage treatment plant. How much profit does the City make under this new system? None. Any gain or loss experience is put into the next year's budget. The water and sewer bill is not used as a profit centre for the City. The rates that we charge are to cover all the cost to operate the water and sewer system. 6 How does the City's sewage treatment cost compare to other municipalities in the Region? Why the difference? All the Municipalities within the Region pay the same rate for water and the treatment of sewage. The difference in total is dependent on the amount of water purchased and the amount of sewage that needs to be treated. The City is the third highest in the Region based on the percentage of sewage treated versus water consumed. The reason for this is because of a higher preponderance of older leaky pipes and more combined sewers. What are the fixed charges on the bill for? These are known as ready to serve charges and they include: *the Capital Works Program (the replacement of existing sewers and watermalns and decombining areas served by the old combined sewers) *debt *maintenance, which includes employees wages *cost of the water meter *billing and collection costs Why am I now paying service charges? Homeowners were always paying these charges, however, before they were a part of the flat rate charges. We have decided to give the taxpayers a better understanding of where their money is going. Why was the public not informed of the changes? The public was informed in 1999, when Council approved Schlumberger as the contractor for the meter installation. Two public open houses were held prior to the implementation of the meter installation program. A flyer was distributed to the residents notifying them of the change. In late 2000, information was provided with the water and sewer bill indicating the changes and how the residents could determine what the impact would be on them. 7 A pamphlet, sent to residents, also indicated water conserving techniques. In addition, information was shared and discussed twice on the Mayor's "Call In Show". What kind of research was done in determining the rates? Acres and Associates carded out a study, which included a survey of the public's attitude, on behalf of the municipality. A public advisory committee was formed which included test homes. In early 2000, R.M. Louden Limited, a consultant, was hired by the City to determine an appropriate rate structure. How much are we paying for the actual meters? The meter installation cost is $172.00 which has been added to the ready to serve cost and amortized over several years. Why are the water bills for Niagara Falls higher than other municipalities? The bills are calculated differently. Some municipalities place the sewer charges on the resident's tax bill. In addition, the age of our system and the fact that 30% of our system is combined sewers results in higher costs. Many lawns are brown this summer. Wouldn't we have been better off under the flat rate system? Had we been under the flat rate system there would have been no impediment in watering one's lawn, however, in all likelihood there would have been a watering ban as was experienced in other Municipalities in the Region. The water treatment plant would not have been able to keep up with the demand of people watering their lawns. In addition if the City was still on the flat rate system in all likelihood we would have been in a deficit situation in regard to cost exceeding revenues for 2001. How much water does my lawn actually need? Not as much as people realize. Many gardeners are too generous, often providing twice the amount the lawn really needs. Most grass needs 1 to 2 inches of water per week (except when rainfall makes up the difference). Watering Lawns Though lawns do need lots of water, many gardeners are too generous, often providing twice the amount the lawn really needs. Over watering does more than just waste water. It leaches fertilizer and natural soil nutrients from the root zone; it creates perpetual wet conditions that can encourage disease, and a heavily watered lawn grows faster and requires more mowing. In general, warm-season grasses require less moisture than cool-season types; the tall fescues are amoung the least needy of the cool-season sorts. On average, however, most grasses need 1 to 2 inches of water per week (except when rainfall makes up the difference). To encourage roots to grow deep, it's best to water infrequently, adding the 1 to 2 inches all at one time. If you simply sprinkle on a little water each day, the roots will stay near the surface. If there is then a prolonged dry spell or if you forget to water, the root system won't be able to draw enough water from deeper in the soil to survive. After watering, walt until the top inch or two of soil has dried before watering again. To check, probe the soil with a thick piece of wire of a long screwdriver, it will move easily through moist soil but stop when it reaches firmer, dry soil. You can also use a soil sampling tube. An even faster way to tell ifa lawn needs watering is simply walk across it. If your footprints remain for several minutes, it's time to water (a well-watered lawn springs right back). Water early in the day, when there's less moisture loss due to heat evaporation and wind is less likely to blow water away. If you need to water later in the day, do so well before dusk, so the grass will dry before nightfall; grass that stays damp for long periods is typically more susceptible to disease. The City of Niagara Falls Canad_.?,__. JlBl Clerk's Department 4310 Queen Street P.O. Box 1023 Niagara Falls, Ontario L2E 6X5 Tel: (905) 356-7521 Fax: (905) 356-9083 E-mail: clerks@city.niagarafalls.on.ca web site: www. city.niagarafalls.on.ca CD-2001-11 E.C. Wagg, C.M.O. City Clerk September 17, 2001 His Worship Mayor Wayne Thomson and Members of the Municipal Council City of Niagara Falls, Ontario Members: Re: CD-2001-11 Minutes of Council Meeting of Aueust 13, 2001 RECOMMENDATION: That Council authorize the amendment to the Minutes of the August 13, 2001 Council Meeting, as outlined in the report. BACKGROUND: Inadvertently, the Minutes of the Council Meeting, held on September 10, 2001, were approved with an omission pertaining to the Ratification of the Community Services Deputation motion. The omission is that the motion should have read: "That the financial assistance requested by the Mount Carmel Park Association be approved provided funding is available in the 2001 or 2002 Budget". -2- CD-2001-11 Staff seeks Council's approval of this amendment in order that the Minutes which reflect the omission, may be corrected. Prepared by: Barbara Muir Council Secretary Approved by: E.C. Wagg City Clerk Recommended by: T. Ravenda Executive Director Corporate Services Respectfully submitted: Chief Administrative Officer CITY OF NIAGARA FALLS By-law No. 2001- being a by-law to authorize the Council to borrow money by way of debentures. WHEREAS only The Regional Municipality of Niagara has the power to issue debentures. AND WHEREAS The Corporation of the City of Niagara Falls has approved its 1998-2002 Capital Budget which includes a project expenditure for Zimmerman Avenue Road Reconstruction. AND WHEREAS the Capital Project C-008-8268 for Zimmerman Avenue Road Reconstruction requires debenture funding of $550,000.00. AND WHEREAS the Council has enacted By-law 98-188 r0spe~hn~ the commencc~ment of Capital Project C-008-8268 for Zimmerman Avenue Road Recon~L~t~ori~;g&~::~' cost of $481,004.26. NOW THEREFORE THE COUNCIL OF THE OF THE CITY OF NIAGARA FALLS ENACTS AS FOLLOWS: ~:: ,,: 1. The Council authorizes an increase of $68 9:~5.'/4 fft~he cost for Zlmmerman Avenue Road Reconstruction project Capital Pro' ct G-3a g258 (new cost of $550,000.00) and an application be made to The Reg(onal '~¢[Uhicipa~y of Niagara to ~ssue debentures in the amount of $550,000.00 for suc!~ p[~d?~ , ~.: 2. The Mayor, Clerk and Trea~rtrer, g~he c~ may be, shall be authorized to sign all necessary documents to Passed this day of ,20~:~ E. C. WAGG, CITY CLERK WAYNE THOMSON, MAYOR First Reading: ,2001 Second Reading: ,2001 Third Reading: ,2001 CITY OF NIAGARA FALLS By-law No. being a by-law to authorize the Council to borrow money by way of debentures. WHEREAS only The Regional Municipality of Niagara has the power to issue debentures. AND WHEREAS the City of Niagara Falls has approved its 2000-2004 Capital Budget which includes project expenditure for Millennium Trail - Phase I - Asphalt Trail and Fencing. AND WHEREAS the Capital Project C-037-8794 for Millennium Trail - Phase I - Asphalt Trail and Fencing requires debenture funding of $163,000.00. AND WHEREAS the Council has authorized By-law 200~24~ Eespectlng the commencement of Capital Project C-037-8794 for Millennium Trml - Phase I, ~sp)~l~T.rml and Fencing. NOW THEREFORE THE COUNCIL OF OF THE CITY OF NIAGARA FALLS ENACTS AS FOLLOWS: The Council authorizes an a issue debentures in the amount of Millennium Trail The Mayor, documents to give effect Capital Project C-037-8794 for be, shall be authorized to sign all necessary Passed this day of E. C. WAGG, CITY CLERK WAYNE THOMSON, MAYOR First Reading: ,2001 Second Reading: ,2001 Third Reading: ,2001 CITY OF NIAGARA FALLS By-law No. being a by-law to authorize the Council to borrow money by way of debentures. WHEREAS only The Regional Municipality of Niagara has the power to issue debentures. AND WHEREAS The Corporation of the City of Niagara Falls has approved its 1998-2002 Capital Budget which includes a project expenditure for Wiltshire Boulevard Road Reconstruction. AND WHEREAS the Capital Project C-008-8266 for Wiltshire Boulevard Road Reconstruction requires debenture funding of $303,000.00. AND WHEREAS the Council has enacted By-law 98-212 [~fipe~g the commencement of Capital Project C-008-8266 for Wiltshire Boulevard NOW THEREFORE THE COUNCIL OF NIAGARA FALLS ENACTS AS FOLLOWS: 1. The Council authorizes an increase of Road Reconstruction project, and an application l: the amount of $303 total cost of $242,195.80. OF THE CITY OF cost for Wiltshire Boulevard (new total cost of $303,000.00) issue debentures in 2. The Mayor, Clerk and TreasUrer documents to gtve effectto ctmn Passed this da~f ,be, shall be authorized to sign all necessary 2001. E. C. WAGG, CITY CLERK WAYNE THOMSON, MAYOR First Reading: ,2001 Second Reading: ,2001 Third Reading: ,2001 CITY OF NIAGARA FALLS By-law No. being a by-law to authorize the Council to borrow money by way of debentures. WHEREAS only The Regional Municipality of Niagara has the power to issue debentures. AND WHEREAS the City of Niagara Falls has approved its 2000-2004 Capital Budget which includes project expenditure for Collins Drive/Toby Crescent Curb and Gutter Local Improvement. AND WHEREAS the Capital Project C-008-8283 for Collins Drive/Toby Crescent Curb and Gutter Local Improvement requires debenture funding of $190,000.00. AND WHEREAS the Council has authorized By-law 2009ei 8¢Tr~?pecting the commencement of Capital Project C-008-8283 for Collins Drive/Toby Cresc~}at (~b<~ Gutter Local Improvement. NOW THEREFORE THE COUNCIL OF T~ ¢~ORATION OF THE CITY OF NIAGARA FALLS ENACTS AS FOLLOWS: ~;~:i~i] 1. The Council authorizes an application b~ ni~de ;p ~ ~bgional Municipality of Niagara to issue debentures in the amount of $190,0~0100 ~di' ~apital Project C-008-8283 for Collins O.verroby Crescent Curb and t p vcment. 2. ~e Mayor, ~be, shall be authorized to sign all necess~ documents to give effect Passed this a d~ ,2001. E. C. WAGG, CITY CLERK WAYNE THOMSON, MAYOR First Reading: ,2001 Second Reading: ,2001 Third Reading: ,2001