Town council has directed staff to negotiate a draft agreement for the sale of municipal water to a private supplier of bulk water.
Bright Water Services has requested access to the town’s water system to acquire water for transfer by tanker to private customers for filling pools, dust control, compacting fill or watermain flushing.
The company, based in Bright, Ontario, supplied bulk water from the Harriston water system to the 2016 International Plowing Match site.
“Staff discussed the request and if access is to be provided, the Palmerston system would be preferred,” states a staff report from CAO Bill White and water foreman Wayne Metzger.
The report, presented at the May 16 meeting, notes water consumption in Palmerston dropped 32% or just over 105,000 cubic metres (m3) annually from 2012 to 2016, despite an increase in the number of homes and businesses.
The decrease can be at least partially attributed to the move to metered water.
“If the company were to use 5,000m3 of water in one season (approximately 180 loads), at current rates total revenue to the system would be $10,400. If access is considered a rate increase for bulk water should be considered,” the report states.
Using current rates the cost of one truckload of bulk water would be about $61 plus one $75 hookup and one $75 disconnection fee for the season. Filling up a typical pool would require two truckloads of water.
The report points out some municipalities actively market bulk water to generate revenue for the municipal system.
“Orillia built a self-service bulk water facility to provide access for companies wishing to use their system,” the report explains.
“Their rate is $2.49 per m3. Kitchener has also built a connection system … They provide bulk water for contractors and others to use with a view to reducing illegal water use from hydrants or unapproved connections. A permanent bulk water station is not being considered at this time.”
Some council members expressed approval for the idea on a trial basis, provided the town could opt out at its own discretion.
“We would have to come up with an idea of how many cubic metres they could take,” said Metzger, adding that in the event of a major fire or drought, the town would “have it built into our agreement that we could halt their taking of water until we dealt with our needs first.”
Noting water is “a pretty important resource,” councillor Mary Lou Colwell asked, “Can we comfortably do this without any concerns?”
Colwell also asked if the town would be looking at a multi-year contract.
Metzger noted the company had not asked for more than a one-year contract.
“One of the interesting parts of the report was the drop in water use in Palmerston,” White pointed out. “For 5,000 cubic metres I think we have that capacity and that’s why we’ve selected Palmerston.”
White told council “in my opinion” current rates are too low for this type of usage. He also noted the company wants the bulk arrangement with the town to be “exclusive.”
“If we’re in this hopefully to make a few dollars … I’d really like to keep it open,” for additional bulk customers, said Mayor George Bridge.
Councillor Ron Elliott was in favour of the idea, but cautioned there needs to be a clause in the contract allowing the town to opt out “for whatever reason we decide.”
Councillor Jean Anderson said, “I’m not in favour of this idea at all.
“I think water is a really valuable commodity and I’d hate to see us put in a position where we missed tracking the levels dropping and somebody not being able to put out a fire …
“I don’t think the townspeople will like it much when they’re told to conserve water, because we put the rates up, and now we’re selling it to somebody else.”
White stressed any agreement should “stipulate when they can and can’t take water and obviously in times of shortage we wouldn’t allow them to take it.”
Councillor Dave Turton pointed out that during the IPM the company was “extremely good to deal with,” adding, “I know (staff) wouldn’t even consider this if that were not the case.”
A resolution accepting the report and directing staff to negotiate a draft agreement with Bright’s Water Services, along with a policy and updated rate, was approved with Anderson and Colwell opposed.
