Shirley McClellan Regional Water System Business Plan Draft 2.1 – Adopted in Principle by the Board on September 14, 2011 For Presentation to Commission Members for Approval 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 Draft 2.0 shown in strikethrough and grey highlight Shirley McClellan Regional Water System – Business Plan Draft 2.1 – September 14, 2011 Table of Contents Executive Summary ............................................................................................................................6 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 ........................................................................20 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 ......................................................................25 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 ......................................................................................35 3.4 Treated Water Transmission System ...............................................................................35 3.4.1 Water Transfer Station ................................................................................................38 3.4.2 Transfer Station Agreement with the Town of Stettler ...............................................38 3.4.3 Main Transmission Line – Water Transfer Station to Consort ..................................38 3.4.4 Main Transmission Line – Consort to Compeer ........................................................39 2 Shirley McClellan Regional Water System – Business Plan Draft 2.1 – September 14, 2011 3.4.5 Branch – Coronation to Brownfield............................................................................40 3.4.6 North Transmission Line – Water Transfer Station to Donalda ................................40 3.4.7 North Transmission Line –North Shore Branch.........................................................42 3.4.8 North Transmission Line – Donalda to Bawlf ............................................................42 3.4.9 North Transmission Line – Meeting Creek, Tillicum Beach Branches ......................43 3.4.10 Big Valley Branch – Main Transmission Line to Big Valley........................................44 3.4.11 Buffalo Lake Branch – Erskine to Rochon Sands and White Sands...........................45 3.5 Distribution Systems ........................................................................................................46 3.6 Treated Water Storage .....................................................................................................46 3.7 Bulk Water Stations.........................................................................................................47 4. Project Capital Costs and Funding..........................................................................................48 4.1 Capital Costs........................................................................................................................48 4.2 Capital Financing.................................................................................................................48 4.2.1 Government Grant Funding....................................................................................48 4.2.2 Direct Contributions by Members...........................................................................51 4.2.3 Debenture ................................................................................................................52 4.2.4 Debt Limit................................................................................................................53 5. System Operation.....................................................................................................................55 5.1 Management and Administration....................................................................................55 5.2 Operations........................................................................................................................55 5.3 Financial Management.....................................................................................................56 5.3.1 Financial Plans and Budgets ....................................................................................57 5.3.2 Financial Reports .....................................................................................................58 5.3.3 Cash Management and Authorization of Expenditures..........................................58 5.3.4 Interim Borrowing or Line of Credit.......................................................................59 5.4 Insurance and Risk Management.....................................................................................59 5.5 Alberta Environment Operating Approvals.....................................................................60 5.6 Policy Development .........................................................................................................60 6. Operating Costs and Revenue .................................................................................................61 6.1 Governance and Administrative Operations...................................................................61 6.2 System Operations ...........................................................................................................62 6.2.1 Projected Operating Expenditures and Required Revenues ...................................62