Report for City Council January 20, 2009 Meeting

Gold Bar Wastewater Treatment Plant Proposed Transfer Attachment 4 – Points of Principle

Attachment 4: Points of Principle: Transfer of the Gold Bar Wastewater Treatment Plant to EPCOR

No Category Consideration Description of Consideration

1 Employee Employee Positions and No City employees will lose their jobs as a Management Structure result of the transfer, including Shared Services employees embedded at GBWWTP. Current Management structure to remain intact to the end of 2009 to give stability during the transition.

2 Governance Commitments to Approval to The City will hold the Approval to Operate Operate (Alberta Environment), from Alberta Environment through Drainage City approved programs and Services for both wastewater collection and strategies treatment. EPCOR will need to maintain its commitment for treatment services, (including construction for growth, rehabilitation and upgrading of wastewater treatment facility assets), as outlined in the City of Edmonton’s Approval to Operate and City-approved capital programs and strategies.

3 Governance EPCOR’s participation with EPCOR will participate with the City in the Drainage Planning in the planning process to ensure that efficient planning process and effective wastewater servicing and treatment systems are developed and maintained. This includes participation in joint planning efforts with the Alberta Capital Region Wastewater Commission and other stakeholders.

4 Governance Commitments to City’s existing Drainage Services and EPCOR will review agreements existing service agreements to determine if the agreement or just the responsibilities would be assigned to EPCOR. Drainage Services will seek to extend any agreements concluding prior to the end of 2010 to facilitate the process. EPCOR will honour the City’s commitments to existing agreements.

1 Gold Bar Wastewater Treatment Plant Proposed Transfer Attachment 4 – Points of Principle

5 Operational Wastewater Treatment EPCOR will complete the construction of asset investment standards any proposed assets required under the current approval to operate and the current 2009-2011 capital plan. Drainage services and EPCOR will jointly develop level of service standards for renewal of existing assets. Both parties will also establish capital requirements for any addition of new facilities.

6 Operational Asset and Land Ownership Asset and land ownership and control will and Control need to be addressed for: The Gold Bar Wastewater Treatment Plant, the Clover Bar Biosolids Recycling Facility, Bremner Storage Lagoons, the Wastewater Transfer Stations (Poundmaker and Clover Bar), and the sludge and supernatant pipeline systems.

7 Governance Wastewater Treatment EPCOR will maintain current levels of Standards treatment and environmental management, including current effluent discharge performance, current process and equipment reliability levels and current ISO registrations (ISO 14001 and ISO 17025).

8 Waste Biosolids Supply Waste Management Branch’s business Management plans are based on long-term biosolids supply from GBWWTP. City will need guarantees that EPCOR will continue to supply the biosolids to waste management branch for their co-composting and processing activities.

2 Gold Bar Wastewater Treatment Plant Proposed Transfer Attachment 4 – Points of Principle

9 Waste Existing Biosolids Inventory Drainage Services, EPCOR, Waste Management Management, and Alberta Capital Region Wastewater Commission will collaborate to build biosolids processing and funding capacity to address the existing biosolids inventory.

10 Edmonton Edmonton Waste EPCOR will maintain the current level of Waste Management Centre of financial and in-kind support for the Management Excellence Edmonton Waste Management Centre of Centre of Excellence - Gold Bar Campus to maintain Excellence current programming, recognizing the independent nature of the Centre of Excellence.

11 Governance Bylaw Enforcement Drainage bylaw enforcement and assets should remain with Drainage Services, as recommended by City’s Law Branch.

12 Customer Customer and Council EPCOR will maintain current levels of inquiry liaison and response service for inquiry handling and response for customers, City departments and Council. EPCOR will provide Drainage Services support for Council activities including Council report writing, presentation and attendance at Committee and Council meetings when needed.

13 Operational Operational Charges and EPCOR and the City of Edmonton will need Rate Setting to establish processes for setting operational charges and utility rates.

14 Operational Shared Services Stranded Over $4 million in Shared Services charges Costs have been identified. Shared Services will quantify these, recognizing that EPCOR is taking all embedded staff. Similar to the discussions in 2005, any ‘make-whole’ payments will be negotiated.