SPECIAL UTILITY COMMITTEE

 

MINUTES


October 14, 2016  –  River Valley Room

 

 

PRESENT

B. Henderson, E. Gibbons, M. Banga, M. Walters

ABSENT

None

ALSO IN ATTENDANCE

A. Knack, M. Nickel
L. Cochrane, City Manager
S. Kaffo, Office of the City Clerk
D. Siebold, Office of the City Clerk

 

TABLE OF CONTENTS

ITEM

                                                                                                         PAGE

DECISION

 

1.          CALL TO ORDER AND RELATED BUSINESS                            2

1.1        Call to Order                                                                                          2

1.2        Adoption of Agenda                                                                            2

2.          ITEMS FOR DISCUSSION AND RELATED BUSINESS             2

2.1        Select Items for Debate                                                                      2

2.2        Requests to Speak                                                                              2

2.3        Requests for Specific Time on Agenda                                         2

3.          REPORTS                                                                                              2

3.1        Bylaw 17698 - EPCOR Water Services and Wastewater

             Treatment Bylaw - A Bylaw to Replace Bylaw 15816                 2

3.2        Review of Reasonableness - Bylaw 17698 - EPCOR

             Water Services and Wastewater Treatment Bylaw                     5

3.3        Summary of Written Submissions and Responses from

             EPCOR - Bylaw 17698 EPCOR Water Services and

             Wastewater Treatment Bylaw                                                           5

3.4        EPCOR Response to External Consultant Report -

             Bylaw 17698 EPCOR Water Services and Wastewater

             Treatment Bylaw                                                                                  6

3.5        Utility Advisor Review of EPCOR Water Services

             Inc. 2017-2021 Performance Based Rates Proposal

             - Bylaw 17698 EPCOR Water Services and

             Wastewater Treatment Bylaw                                                           6

4.          PRIVATE REPORTS                                                                           6

5.          NOTICES OF MOTION AND MOTIONS WITHOUT CUSTOMARY

             NOTICE                                                                                                   6

6.          ADJOURNMENT                                                                                  7

 

 

 

 

Carried

 

See minutes

None

None

 

 

Action

 

Carried

 

 

Carried

 

 

Carried

 

 

 

Carried

None

 

None

 

DECISION SUMMARY

ITEM

 

DECISION

1.

CALL TO ORDER AND RELATED BUSINESS

1.1

Call to Order

 

 

 

Councillor B. Henderson called the meeting to order at
9:31 a.m.

 

 

 

 

 

1.2

Adoption of Agenda

 

 

Moved M. Walters:

 

 

 

That the October 14, 2016, Special Utility Committee meeting agenda, be adopted with the following change:

Replacement Pages:

6.1  Bylaw 17698 - EPCOR Water Services and Wastewater Treatment Bylaw - A Bylaw to Replace Bylaw 15816

Revised Attachment 2 - 04 Bylaw 17698 with Schedules 1 to 4 blackline version

 

 

In Favour:

Carried

 

 

B. Henderson, E. Gibbons, M. Banga, M. Walters

 

2.

ITEMS FOR DISCUSSION AND RELATED BUSINESS

2.1

Select Items for Debate

 

 

 

All items were selected for debate.

 

 

 

 

 

2.2

Requests to Speak

 

 

 

There were no requests to speak.

 

 

 

 

 

2.3

Requests for Specific Time on Agenda

 

 

 

There were no requests for any items to be dealt with at a specific time.

 

 

 

 

 

3.

REPORTS

3.1

Bylaw 17698 - EPCOR Water Services and Wastewater Treatment Bylaw - A Bylaw to Replace Bylaw 15816

 

 

 

Items 3.1, 3.2, 3.3, 3.4 and 3.5 were dealt with together.

Councillor B. Henderson explained the non-statutory public hearing process.

J. Elford, D. Manning, and C. Piercey, EPCOR, made a presentation.

B. McNabb, Financial and Corporate Services; and
T. MacDonald and S. Power, Grant Thornton LLP, made a presentation.

J. Beckett, Utility Advisor, made a presentation.

S. Kaffo, Office of the City Clerk, asked whether there were any persons present to speak to the following bylaw and associated reports (agenda items 3.2 - 3.5):

Bylaw 17698 - EPCOR Water Services and Wastewater Treatment Bylaw - A Bylaw to Replace Bylaw 15816

There were no persons present to speak.

J. Elford and D. Manning, EPCOR, made a presentation.

J. Beckett, Utility Advisor; J. Elford, D. Manning,
C. Piercey, C. Tiedemann, and S. Ancel, EPCOR;
T. MacDonald and S. Power, Grant Thornton LLP; and
T. Burge, Chief Financial Officer and Deputy City Manager, Financial and Corporate Services, answered the Committee's questions.

 

 

 

 

 

 

Moved B. Henderson:

 

 

 

That the public hearing on Bylaw 17698 be closed.

 

 

In Favour:

Carried

 

 

B. Henderson, E. Gibbons, M. Banga, M. Walters



 

Moved M. Walters:

 

 

 

That Administration work with EPCOR to bring forward amendments to  the applicable schedules to EPCOR Water Services and Wastewater Treatment Bylaw 17698 to reflect the following:

1.    An Efficiency Factor for the 2017 - 2021 Performance Based Rates terms of 0.25%.

2.    A Return on Equity of 10.175%.

3.    No bonus points from other indices may be applied to the Wastewater Water Quality Index.

4.    Smoothing the water and wastewater rates over a five-year Performance Based Rates period.

5.    An average of the Historic Energy Efficiency Wastewater index as set out in Table 12.2.2 is to be used in calculating the energy index.

Financial and Corporate Svcs.

EPCOR

Due by:
Oct. 25, 2016
City Council

 

 

 

In Favour:

Carried

 

 

B. Henderson, E. Gibbons, M. Banga, M. Walters

 

 

Moved M. Walters:

 

 

 

That Utility Committee recommend to City Council:

That prior to receiving the appropriate readings, the EPCOR Water Services and Wastewater Treatment Bylaw 17698 be amended by replacing Schedules 1 and 3 with the revised schedules 1 and 3 which reflect the following:

  1. An Efficiency Factor for the 2017 - 2021 Performance Based Rates terms of 0.25%.
  2. A Return on Equity of 10.175%.
  3. No bonus points from other indices may be applied to the Wastewater Water Quality Index.
  4. Smoothing the water and wastewater rates over a five-year Performance Based Rates period.
  5. An average of the Historic Energy Efficiency Wastewater index as set out in Table 12.2.2 is to be used in calculating the energy index.

 

 

In Favour:

Carried

 

 

B. Henderson, E. Gibbons, M. Banga, M. Walters

 

 

Moved M. Walters:

 

 

 

That EPCOR, as part of the Performance Based Rates annual reporting, provide updates on the new technologies identified in the water and wastewater rate applications.

EPCOR

 

 

 

In Favour:

Carried

 

 

B. Henderson, M. Banga, M. Walters

 

 

Absent:

 

 

 

E. Gibbons

 

 

Moved B. Henderson:

 

 

 

1. That Administration work with EPCOR on the following:

·         Establish appropriate methodology to calculate the Efficiency Ratio prior to next Performance Based Rates.

·         Possible changes to rate structures to deal with changes in volume.

2. That EPCOR report significant changes to capital projects as part of annual reporting.

Financial and Corporate Svcs.

EPCOR




EPCOR

 

 

In Favour:

Carried

 

 

B. Henderson, M. Banga, M. Walters

 

 

Absent:

 

 

 

E. Gibbons

 

3.2

Review of Reasonableness - Bylaw 17698 - EPCOR Water Services and Wastewater Treatment Bylaw

 

 

 

Items 3.1, 3.2, 3.3, 3.4 and 3.5 were dealt with together.

 

 

Moved M. Banga:

 

 

 

That Utility Committee recommend to City Council:

That the October 14, 2016, Financial & Corporate Services report CR_4113, be received for information.

 

 

In Favour:

Carried

 

 

B. Henderson, M. Banga, M. Walters

 

 

Absent:

 

 

 

E. Gibbons

 

3.3

Summary of Written Submissions and Responses from EPCOR - Bylaw 17698 EPCOR Water Services and Wastewater Treatment Bylaw

 

 

 

Items 3.1, 3.2, 3.3, 3.4 and 3.5 were dealt with together.

 

 

Moved M. Banga:

 

 

 

That Utility Committee recommend to City Council:

That the October 14, 2016, Financial and Corporate Services report CR_4114, be received for information.

 

 

In Favour:

Carried

 

 

B. Henderson, M. Banga, M. Walters

 

 

Absent:

 

 

 

E. Gibbons

 

3.4

EPCOR Response to External Consultant Report - Bylaw 17698 EPCOR Water Services and Wastewater Treatment Bylaw

 

 

 

Items 3.1, 3.2, 3.3, 3.4 and 3.5 were dealt with together.

 

 

Moved M. Banga:

 

 

 

That Utility Committee recommend to City Council:

That the October 14, 2016, Financial and Corporate Services report CR_4115, be received for information.

 

 

In Favour:

Carried

 

 

B. Henderson, M. Banga, M. Walters

 

 

Absent:

 

 

 

E. Gibbons

 

3.5

Utility Advisor Review of EPCOR Water Services Inc. 2017-2021 Performance Based Rates Proposal - Bylaw 17698 EPCOR Water Services and Wastewater Treatment Bylaw

 

 

 

Items 3.1, 3.2, 3.3, 3.4 and 3.5 were dealt with together.

 

 

Moved M. Banga:

 

 

 

That Utility Committee recommend to City Council:

That the October 14, 2016, Financial and Corporate Services report CR_4116, be received for information.

 

 

In Favour:

Carried

 

 

B. Henderson, M. Banga, M. Walters

 

 

Absent:

 

 

 

E. Gibbons

 

4.

PRIVATE REPORTS - NONE

5.

NOTICES OF MOTION AND MOTIONS WITHOUT CUSTOMARY NOTICE

 

 

Councillor B. Henderson asked whether there were any Notices of Motion. There were none.

 

 

 

 

 

6.

ADJOURNMENT

 

 

The meeting adjourned at 2:27 p.m.

 

 

 

 

 

 

 

 

______________________                                   ______________________

Chair                                                                          City Clerk