The township has approved a new two-year agreement with the Ontario Clean Water Agency (OCWA) for operation of its municipal water and wastewater systems.
Council passed a bylaw approving the agreement at the May 27 meeting.
In a staff report presented at the May 13 meeting, CAO Patty Sinnamon explained the township’s operation and servicing agreement with OCWA actually expired on Dec. 31.
However OCWA has continued to operate the water and wastewater systems while the terms of the renewal agreement were being worked out.
The renewal agreement, which will expire on Dec. 31, 2015, covers both water and wastewater operations, servicing and management fees for the Drayton and Moorefield systems.
The proposed agreement is essentially the same as the last agreement with respect to OCWA’s responsibility for all day-to-day operations, Sinnamon noted in her report.
The contract amount is $214,574, up 7 per cent from $199,884 in 2013. The report states the increase accounts for inflationary costs, regulated wage increases and associated treatment costs for increased production of water at the Drayton Water Plant, as well as consideration for renewing for a shorter period of time.
Sinnamon explained that on a three-year renewal, the cost would have been $201,367.
“It should also be noted that, as in the previous contract, this renewal also includes the first 12 call-ins as well as $5,000 towards capital costs. With the replacement of the pump at the sewage station, this amount has already been used in 2014,” the report notes.
While the township had initially requested a one-year renewal, which was not accepted by OCWA, Sinnamon explained the renewal agreement does provide for a one-year renewal option.
“This will give the new director of public works an opportunity to review water and wastewater operations and explore best practices and efficiencies, which may include operating the system in-house and/or exploring shared services agreements with other municipalities. Due diligence would also suggest that at the very least a market review (ie. tender process) be undertaken prior to the next contract expiry,” the report states.
