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Water and Wastewater

York-Peel Agreement

Introduction To the York-Peel Agreement

Emil Kolb, Chair of the Region of Peel, and Bill Fisch, Chair of York Region, signed an agreement on February 14, 2002 paving the way for the Region of Peel to provide water to York Region.

Under the terms of the Agreement, the amount of water the Region of Peel will provide to York will increase as the capacity of Peel's water supply and distribution system expands.

Peel's financial benefits from the water servicing agreement will be an estimated $152.4 million to the year 2031. 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. Based on estimates in the Peel-York Water Supply Agreement, York Region will contribute an additional $340 million towards the expansion of Peel's water supply and distribution system necessary to meet York Region's needs.

Under the agreement, York will receive water from Peel at a substantially lower cost than through other previously considered options. Peel will benefit financially, while ensuring Peel's water needs are met and adding security to Peel's water system through the expansion of water treatment capacity, pumping station expansion and major water tramission main construction.

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Highlights Of Peel and York Water Supply Agreement

  • Sharing infrastructure costs and plant operating costs benefits both Peel and York.
  • York will receive water from Peel's water treatment facilities to meet their growth-related demands for water from 2004 to 2031.
  • York will pay $52.4 million to Peel in buy-in costs to purchase surplus capacity from the Lakeview Water Treatment Facility and feedermains. This will be paid in four installments.
  • $8 million is derived from capital cost savings to Peel as a result of York's contribution to expand the Lakeview Water Treatment Facility and other components of the distribution system.
  • York will make $92 million in contributions to Peel's reserve fund to the year 2031.
  • Peel and York will share the cost of expanding components of the drinking water delivery system, such as the Lakeview Water Treatment Facility, water pumping stations, reservoirs and feedermains.
  • 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 Peel would retain 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.

 

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Revised: Thursday July 26 2007

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