For Immediate Release
June 25, 2001
Mitch Zamojc, P.Eng.
Commissioner, Public Works
Region of Peel
905-791-7800, Ext. 4395
Region of Peel Finalizes Water Servicing Agreement with Region of York
(Brampton) - Region of Peel Council voted 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.
Council's approval was conditional on Peel continuing with measures to resolve the odour problems that have been occurring at the Lakeview Wastewater Treatment Plant.
"Substantial work has been done to resolve the odour issue," said Mitch Zamojc, Commissioner of Public Works for the Region of Peel. "A two-phase Odour Management Strategy is underway and we are confident that with odour control systems, chemical neutralizing additives and a process review we can address this issue."
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.
"We are pleased with the benefits to the Regions of Peel and York through this water servicing agreement," said Emil Kolb, Regional Chair. "We also will resolve concerns about odours at the Lakecview Waste Water Treatment Plant."
"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 Commissioner 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 Principle's 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.Communication Services, 10 Peel Centre Dr., Brampton, ON L6T 4B9
Phone: 905-791-7800, Fax: 905-791-0595 , e-mail
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