For Immediate Release
Tuesday, August 14, 2001

MEDIA CONTACT:
Mitch Zamojc
Commissioner of Public Works
Region of Peel
905 -791-7800, Ext. 4395

Region of Peel's Water Ban is Responsible Reservoir Management

(Brampton) - Region of Peel Public Works Commissioner Mitch Zamojc said today that the current restrictions on all outdoor water use is not a reflection on the sufficiency of supplying drinking water to Peel residents under normal circumstances. "This restriction is entirely due to responsible decisions being made to ensure that all reservoirs are in good shape and pressure is maintained in all areas," said Zamojc.

Responding to erroneous statements that the ban casts doubt on the viability of an agreement between York Region and Peel Region for Peel to supply water to the western area of York, Zamojc reaffirmed that "Peel's systems have all the capacity necessary to meet Peel's needs now and in the future, and also to meet the requirements set out in this agreement with York Region. This will require new construction which is included in our Master Planning."

Zamojc added that a great many Ontario municipalities, including the City of Toronto, the City of Hamilton, the Region of York, the Region of Halton and the Region of Durham have all implemented similar water restrictions during this period of hot and dry weather. "None of these municipalities is at risk of running dry," said Zamojc.

Region of Peel Council voted on June 25, 2001 to finalize an agreement that will supply drinking water from the Lakeview Water Treatment Plant to serve the Region of York from 2004 until 2031. No water supply to York is to commence until a significant amount of construction has taken place.
The financial benefits for Peel from the water servicing agreement will be an estimated $152.4 million over the life of the agreement. Of the total, $52.4 million comes from York's buy-in costs; $8 million from capital cost savings; and $92 million from York's contribution to Peel's infrastructure reserve fund.

Under the agreement, York will receive water from Peel to meet its needs at a substantially lower cost than through other options under consideration.
"Through this agreement we both win. York will have a secure water supply and Peel will benefit financially, while ensuring the drinking water needs of Peel residents are met now and into the future," said Zamojc.

Highlights Of Peel and York Water Servicing Agreement

• The Inter-Regional Water Service Agreement benefits both Peel and York by sharing infrastructure costs and plant operating costs.
• York will receive water from Peel's Lakeview Water Treatment Plant to meet their demand for water from 2004 to 2031.
• Peel will realize $152.4 million in financial benefits over the course of the agreement.
• York will pay $52.4 million to Peel in buy-in costs to purchase surplus capacity from the Lakeview Water Treatment Plant beyond what is required to meet system requirements for Peel.
• $8 million is derived from capital cost savings to Peel as a result of York's contribution to expand the Lakeview Water Treatment Plant and other components of the distribution system.
• York will make $92 million contributions to Peel's reserve fund over the life of the agreement.
• The $52.4 million buy-in will be paid through four payments. One third will be paid in 2001 (one deposit upon signing, the other by the end of the year). The second third will be paid in 2004. The final third is due in 2011.
• Peel and York will share the cost of expanding components of the drinking water delivery system such as the Lakeview Water Treatment Plant upgrading various feedermains and the proposed Northeast Brampton Feedermain.
• Parts of the water distribution system that will be built in Peel to service York will be financed by York and owned, managed and operated by Peel.
• The agreement was developed in accordance with the Region of Peel's Guiding Principles adopted by Council to ensure water rates would not increase as a result of the agreement; and that Peel retains control of its infrastructure.
• Peel and York staff will review the water servicing agreement every five years following York's connection to Peel's Water System.

For further information the following Frequently Asked Questions (FAQ) have been provided.

Communication Services, 10 Peel Centre Dr., Brampton, ON L6T 4B9
Phone: 905-791-7800, Fax: 905-791-0595 , e-mail

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