Master Plan & Strategic Plan Presented by Shawn Olson & Rick Sereda Master Plan & Strategic Plan Presentation Purpose • Present Master Plan update • Optimizing Edmonton Annexation opportunity • Present Strategic Plan Master Plan & Strategic Plan Presentation Agenda • Membership/Background • System Projections • Asset Transfer/Sale • Proposed Capital Improvements • 5 Year • Long term • Funding Requirements • Strategic Plan Highlights Membership • Beaumont • Calmar • Camrose County • Hay Lakes • Leduc • Leduc County • Millet System Map Master Plan Scope • Reviewed the 2013 Master Plan • Obtained water system demands • Identified infrastructure constraints • Identified potential new water users (City of Camrose) • Assessed the system pursuant to the City of Edmonton Annexation 2018 Water Consumption Within the Commission Leduc County - Hamlet of New Sarepta (0.8%) Leduc County - Edmonton International Airport (6.5%) Leduc County - Nisku East and West (11.8%) Town of Calmar (4.1%) Camrose County - Hamlet of Armena (0.1%) Village of Hay Lakes (0.6%) Town of Millet (3.2%) City of Beaumont (22.8%) City of Leduc (50%) Historical Growth Rates (Water Demand) Projected Water Demand Usage Increase Commission Projections (2012-2043) Future Connections • The Commission is anticipating new services to tie-into the system in the near future. • Leduc County Rural (Rolly View and Looma) • City of Edmonton – Discovery Park (completed) • Leduc County Saunders Lake Industrial Area • City of Leduc Robinson Reservoir (completed) • City of Leduc West Reservoir Regional Service Concepts • The City of Edmonton has recently annexed lands through or adjacent to Commission infrastructure. • 3 servicing options: • Option 1 – Status Quo. • Option 2 – Transfer adjacent assets to EPCOR & second feed to Beaumont. • Option 3 – Option 2 without second feed to Beaumont. Option 2 Selected! • Rational to proceed with Option 2 (savings of $39.7 Million in Net Present Value) • EPCOR was in agreement to provide redundancy to Beaumont. • Reduced Operational requirements. • Avoid potential relocation associated with QE2 realignment and interchange upgrades. Next 5 years • Increase pumping capacity at the Highway 21 Booster Station (2019) • Transfer Commission assets to EPCOR (2020) • Construct new Booster Station (2023) • EPCOR installs new billing meters (2023) Next 30 years • Construct Beaumont’s secondary supply line (2028) • Twin 750 mm diameter pipe (2035) • Upgrade line East of Highway 21 (2044) Anticipated Capital Costs Water Rates The Commission requested that the following scenarios be reviewed: • Scenario 1 – Maintain current water rate until increase is required. Commission takes debentures to finance upgrades. Maximizes Commission’s debt limit. • Scenario 2 – Rate increases so no debentures are required. (No debt) • Scenario 3 – Water rate is reduced. Commission no longer allocates funds for future upgrades. Members required to contribute funds for upgrades. (Exceeds debt limit) • Scenario 4 & 5 – Commission uses combination of cash reserves and debt financing. Unit Cost Analysis – Scenario 5 Cash Flow – Scenario 5 Master Plan Conclusion • The average projected water demand for the Commission is 3.1% over 25 years. • The Commission and EPCOR have reached an Agreement regarding the transfer of assets as per the Option 2. • Members will not see an increase in water cost from the CRSWSC until 2023. (going forward; rates for 2020 have already been pre determined) Strategic Plan • A Strategic Plan was developed for 2019-2023. • Identified Goals and Strategies for the Commission Strategic Plan CRSWSC Goals Strategic Plan 2019 High Priority Strategies • To be completed by 2023 and reviewed annually. QUESTIONS?.