Upset with a helpless situation and receiving unpredictable, escalating bills, Guelph-Eramosa Township has decided to take control of its water and wastewater systems from the Ontario Clean Water Agency.
“It became readily apparent that we had very little control of the system with OCWA operating it,” Public Works Manager Ken Gagnon told council on Dec. 1.
“It’s a considerable task to take on, but it is manageable.”
Gagnon said the main reason for the move is that cost estimates from OCWA are often understated and very unreliable.
In fact, to date the township has been billed $340,707 for 2008, when OCWA’s original budget was $284,167. And the township has yet to receive a year-end reconciliation for 2008, which in the past has ranged from $16,877 to $51,326.
“They could very likely hit $400,000 in operating costs for this year,” Gagnon said.
As a result, last fall the township informed OCWA it would like to train municipal representatives, with the aim of taking over system operations within two or three years.
But discussions broke down in May when OCWA told the township it would not provide any training. In response, the township informed OCWA it would not be renewing the current service agreement, which ends on Dec. 31 of this year.
To help facilitate the takeover of operational control, the Public Works department asked OCWA and R.J. Burnside and Associates for prices to assess what work is required.
The project, awarded to low bidder R.J. Burnside for $12,700, identified various certifications, programming changes, training, new equipment, data analysis, and supplies.
The gap analysis also showed four new positions must be created to meet legislated requirements and operational needs (three field operators and an administrative assistant).
The application process closed Dec. 4, though Gagnon noted earlier last week there were already several qualified applicants.
Gagnon said there is much work to be done before the new year and R.J. Burnside has provided a quote of $55,000 to help with the long list of tasks. But depending on the amount of involvement of township staff, that figure could change, he added.
Gagnon concluded that the township could save between $50,000 and $75,000 per year by taking over operational services.
Councillor John Scott said he finds it incredible OCWA could charge $100,000 more than what it originally told the township.
Gagnon replied, “We’re not the only municipality to be surprised by the bills,” noting OCWA is “consistently over budget.”
Mayor Chris White considered the move a no-brainer. He said it will not only give the township more control over the system, but will also save the township money, without compromising safety.
Gagnon said there is a contingency plan in place so even if new personnel are not hired by Jan. 1 the township will not have any problems with the takeover.
“I’m very confident we can make this transition,” he said. “If there was ever a time to do it, this is it.”
Council unanimously approved the operational transfer, effective Jan. 1. Councillor Roger Knapp was absent.
