Shirley McClellan Regional Water System Business Plan 2013 Plan Update Draft 1.0 August 16, 2013 Commission Members Camrose County Village of Consort Lacombe County Village of Donalda County of Paintearth No. 18 Village of Halkirk County of Stettler No. 6 Village of Rosalind Town of Castor Village of Veteran Town of Coronation Summer Village of Rochon Sands Village of Bawlf Summer Village of White Sands Village of Big Valley Special Area No. 2, 3 and 4. Changes from 2011 Plan marked in Grey Highlight and Strikethrough Shirley McClellan Regional Water System – Business Plan 2013 Plan Update – Draft 1 – August 16, 2013 Table of Contents Table of Contents ........................................................................................................................................ 2 Executive Summary .................................................................................................................................... 5 1. Introduction.................................................................................................................................... 12 1.1 Definitions ...................................................................................................................................... 12 1.2 Project Background ..................................................................................................................... 12 1.2.1 Water Needs and Challenges of Supply .......................................................................... 12 1.2.2 Regional Approach and Development of Water Supply System .............................. 14 1.3 Business Plan Objectives and Scope ......................................................................................... 16 1.4 Previously Completed Studies, Plans and Reports ............................................................... 17 2. Governance and Management ...................................................................................................... 18 2.1 Operation and Business Entity .................................................................................................. 18 2.2 Organization of the Commission and Governing Board ..................................................... 18 2.2.1 Governing Bylaws ............................................................................................................... 18 2.2.2 Commission Board ............................................................................................................... 18 2.3 Management .................................................................................................................................. 19 2.4 Organization Chart ...................................................................................................................... 19 2.5 Allocation of System Capacity and Costs ................................................................................ 19 2.6 Member Water Supply Agreement .......................................................................................... 21 2.7 Addition of New Members ......................................................................................................... 22 2.8 Withdrawal of Members from the Commission .................................................................... 23 2.9 Disposition of Assets ................................................................................................................... 23 2.10 Business Planning ........................................................................................................................ 24 2.10.1 Strategic Directions ............................................................................................................. 24 2.10.2 Review of Plan ...................................................................................................................... 24 2.10.3 Compliance with ALSA Regional Plans ......................................................................... 24 2.10.4 Public Policy .......................................................................................................................... 26 3. System Description ....................................................................................................................... 27 3.1 Communities Served and Overview of System ...................................................................... 27 3.2 System Capacity ............................................................................................................................ 27 3.2.1 Population Projections ........................................................................................................ 27 3.2.2 Projected Treated Water Volumes .................................................................................. 30 3.2.3 Buffalo Lake ........................................................................................................................... 30 3.3 Supply of Treated Water ............................................................................................................ 32 3.3.1 Water Supply ........................................................................................................................ 32 3.3.2 Supply Agreement with the Town of Stettler ............................................................... 33 3.3.3 Water License ....................................................................................................................... 34 3.3.4 Inter-basin Transfer of Water .......................................................................................... 34 3.4 Water Transfer Station ............................................................................................................... 35 3.4.1 Transfer Station Agreement with the Town of Stettler ............................................. 35 3.5 Treated Water Transmission System ..................................................................................... 36 3.5.1 Main Transmission Line – Water Transfer Station to Consort ............................... 39 2 Shirley McClellan Regional Water System – Business Plan 2013 Plan Update – Draft 1 – August 16, 2013 3.5.2 Main Transmission Line – Consort to Compeer .......................................................... 39 3.5.3 Brownfield Branch – Coronation to Brownfield ........................................................... 42 3.5.4 North Transmission Line – Water Transfer Station to Donalda ............................. 43 3.5.5 North Transmission Line – North Shore Branch ......................................................... 45 3.5.6 North Transmission Line – Meeting Creek Branch .................................................... 45 3.5.7 North Transmission Line – Donalda to Bawlf .............................................................. 45 3.5.8 North Transmission Line – Meeting Creek, Tillicum Beach Branches .................. 48 3.5.9 Big Valley Branch – Main Transmission Line to Big Valley ..................................... 48 3.5.10 Buffalo Lake Branch – North Line to South Shore Erskine to Rochon Sands and White Sands .......................................................................................................................................... 49 3.6 Distribution Systems ................................................................................................................... 51 3.7 Treated Water Storage ............................................................................................................... 52 3.8 Bulk Water Stations ..................................................................................................................... 53 4. Project Capital Costs and Funding ........................................................................................... 54 4.1 Capital Costs .................................................................................................................................. 54 4.2 Capital Financing ......................................................................................................................... 54 4.2.1 Government Grant Funding ............................................................................................. 54 4.2.2 Direct Contributions by Members ................................................................................... 57 4.2.3 Debenture ............................................................................................................................... 58 4.2.4 Debt Limit .............................................................................................................................. 59 4.3 Capital Development Alternatives ........................................................................................... 61 4.3.1 Buffalo Lake Branch ............................................................................................................. 62 4.3.2 North Shore Branch ............................................................................................................. 62 5. System Operation .......................................................................................................................... 64 5.1 Management and Administration ............................................................................................. 64 5.2 Operations ...................................................................................................................................... 64 5.3 Financial