: Abbotsford rr- Z,IlMission Water & Sewer Services REPORT To : Abbotsford/Mission Water & Sewer Commission (WSC) From: Kristi Alexander, Water Planning Engineer Date: June 27, 2012 Subject: Water Supply Options Short-Listing File: 5600-30 Report No.: WSC 69-2012 WATER SEWER COMMISSION (WSC) RECOMMENDATIONS 1. THAT Report No. WSC 69-2012, dated June 27 , 2012, from Kristi Alexander, Water Planning Engineer, regarding Water Supply Options Short-Listing, be received; 2. THAT the District of Mission report to the AMWSC at the August meeting on their independent source study; 3. THAT staff move forward with further investigations of Norrish Creek Source Expansion, Fraser River and Stave Lake as preferred future water supply options; and 4. THAT, should the AMWSC wish to move forward with further investigations of three additional preferred supply options, that the additional budget, shown below, be transferred from contingency. a. Stave-to-Cannell Recharge: $100,000 b. Miracle Valley Aquifer: $350,000 c. Metro Vancouver Water: $50,000 BACKGROUND As Abbotsford and Mission grow, water demands will continue to increase. At some point, the existing water sources will not be sufficient to meet those demands. In anticipation of such a time, the Abbotsford Mission Water & Sewer Commission (AMWSC) and its predecessor, the Central Fraser Valley Water Commission spent considerable effort over the last 20 years investigating future water source options. With the rejection of the Stave Lake P3 Water Supply project, it is necessary once again to examine options. This exercise is important in 2012, to ensure there is sufficient time to plan, permit, design and build infrastructure for a new source. Report No. WSC 69-2012 Page 2 of 4 Past source option reviews and recommendations hinged upon the assumption that the AMWSC sought a water supply solution that would best meet long-term needs ·(i.e. for 20-100 years) at the lowest net present value. Considering long term solutions come with significant up-front capital costs, the 2012 source option review also contemplates shorter-term (5-10 year) interim steps that may be more immediately affordable. Public Consultation In May 2012, the AMWSC launched a public outreach program to plan for the development of a new water source. A summary of feedback received is detailed in Report WSC 70-2012. DISCUSSION District of Mission Water Supply Study The District of Mission has completed a water demand and water supply study independent of the AMWSC. AMWSC staff are not familiar with the scope of the study. It is suggested that the District of Mission provide a report at the August AMWSC meeting with information on the recommendations of their independent study. Decisions made in Mission will impact the size and timing of a regional water source. Option Short-Listing Future water supply decision-making is a complex process. Factors that should be considered by any water utility seeking to increase its available supply include source capacity, capacity risk, distance, elevation, normal water quality, contamination risk, permitting complexity, availability of land, redundancy contribution, phasing practicality, cost and public acceptance. Each of these factors is explained in further detail in the Future Water Supply Options Short-Listing Report (Short-Listing Report) included as Attachment A. The Short-Listing Report examines supply options in three distinct categories: (i) existing source/infrastructure expansion; (ii) new natural sources; and (iii) water from other suppliers. For each source category, options are characterized according to the factors described earlier. From this characterization, further option investigation is either recommended or discouraged. ANALYSIS Options for Consideration There are several water supply options available to the AMWSC to meet its future water demands. However, some of those options are critically flawed and others have sufficient drawbacks to make it questionable whether the AMWSC should invest further resources into investigating their viability. The options remaining and perceived to be preferred for further investigations are: A - Existing Source/Infrastructure Expansion i) Norrish Creek Source Expansion B - New Natural Source Development i) Stave-to-Cannell Lake Recharge ii) Miracle Valley iii) Fraser River iv) Stave Lake C - Alternate Water Supplies v) Metro Vancouver Water vi) Fraser River Report No. WSC 69-2012 Page 3 of 4 The above list provides the AMWSC with potential water supply solutions that span from small (short-term) to large (long-term) as illustrated by the schematic below. Expand Norrlsh Fraser River Stave Lake Metro Vancouver Water Proposed Short-Listing Options The AMWSC has allocated a limited budget to the water source study; therefore, not all of the preferred options can be subject to further investigation. It is recommended that Stave Lake, the Fraser River and Norrish Creek Source Expansion be prioritized for further review. If the AMWSC would like to review the other three potentially viable options, additional funds will be required as follows: Stave-to-Cannell Lake Recharge - $100,000 Miracle Valley Aquifer - $350,000 • Metro Vancouver - $50,000 • Of the amount shown for Miracle Valley, $250,000 would be for hydrogeological field investigations as per a consultant's budgetary quote. (This is greater than Mission's 2011 test well drilling since the next stage of work will need to occur further north in undeveloped , rough terrain; $100 ,000 of the quote is for temporary road construction and environmental mitigation). Next Steps The next steps in the Water Supply Strategy are: Staff will conduct investigations of short-listed supply options. Consultants will be retained as needed for specialized expertise. These investigations will culminate with a draft report that proposes a future AMWSC Water Supply Strategy, which considers updated demand projections, the water efficiency study and the water source investigations. • Public Outreach Part II : Obtain feedback on the draft Future Water Supply Strategy report. • A final report will subsequently be presented at an AMWSC meeting and Mission and Abbotsford Council Meetings. As approved in Report WSC 50-2012 , the AMWSC will assess the need for an independent review, by a qualified professional, of the Water Supply Strategy once it is completed. Report No. WSC 69-2012 Page 4 of 4 FINANCIAL IMPLICATIONS The regional water financial plan has a budget of $300,000 for investigating short-listed options and public consultation. Of this, $50,000 is allocated for public consultation. The remaining $250,000 is anticipated to be sufficient to review the three priority options. If the AMWSC would like to review any or all of the other three potentially viable options, it is recommended that additional funds be transferred from the 2012 Water Capital contingency budget. (Note: Contingency is generally intended for non-DCC projects. While the Study is arguably a DCC-eligible project, there are no 2012 DCC budgets from which funds can be transferred. If all three additional options are explored, the full $500,000 contingency budget will be required). COMMUNICATIONS PLAN Reports will be posted on the Our Water Matters website and further public consultation will occur following completion of the draft Future Water Supply Strategy report. SUMMARY It is recommended that Mission report to the AMWSC on their independent source study. It is also recommended that staff move forward with investigations of Norrish Creek Source Expansion, Fraser River and Stave Lake. If the AMWSC wishes to move forward with investigations of Stave-to-Cannell Lake Recharge, Miracle Valley and/or Metro Vancouver Water, then additional budget should be transferred from contingency. Jim Gor n, P.Eng. Tracy Kyle, P.Eng. Gener Manager, Engineering & Director of Water & SQLi Regional Utilities K sti Alexander, P.Eng. Pat i';oanes, CMA ater Planning Engineer General Manager, Finance & Corporate Services KAsj 2012 water Supply options Study Stage 1 Report: Option Short Listing July 2012 our water matters 2012 Future Water Supply Options Study Stage I Report – Option Short Listing July 2012 EXECUTIVE SUMMARY Background As Abbotsford and Mission grow, water demands will continue to increase. At some point, the existing water sources will not be sufficient to meet those demands. In anticipation of such a time, the Abbotsford Mission Water & Sewer Commission (AMWSC) and its predecessor, the Central Fraser Valley Water Commission, spent considerable effort over the last 20 years investigating future water supply options. With the rejection of the Stave Lake P3 Water Supply project in November 2011, it is necessary once again to examine options. This exercise is important in 2012 to ensure there is sufficient time to plan, permit, design and build new supply infrastructure (which can take 5 – 10 years). 2012 Future Water Supply Options Study Past source option reviews and recommendations hinged upon the assumption that the AMWSC sought a water supply solution that would best meet long-term needs (i.e. 20-100 years) at the lowest net present value. However, considering that such long term solutions come with significant up-front capital costs, the 2012 Water Supply Options Study (‘the Study’) also contemplates shorter-term (i.e. 5-10 year) interim steps that may be more immediately affordable. The Study will be completed in three stages (Table E1). Ultimately, the objective is to identify a preferred strategy that ensures the supply of ample,