►
Description
Environment and Climate Protection Committee - February 20, 2018
Agenda and background materials can be found at http://www.ottawa.ca/agendas.
A
A
Let's
get
this
meeting
started.
Welcome
to
the
environment,
climate
protection
committee,
meeting
of
Tuesday,
the
20th
of
February
2018
we'll
go
through
the
consent
agenda.
First,
any
declarations
of
interest
seeing
none
confirmation
of
minutes
that
was
received
minutes
are
received
status,
update
committee
inquiries
and
motions
for
the
period
ending
13th
of
February
2018.
It
was
received
received
commander
of
naming
proposal,
Wendy
Stuart
pawns
that
the
environment
climate
protection
committee
recommend
council
approve
proposal
to
name
the
sawmill
creek
settling
pond
as
the
wendy
stewart
pond.
A
C
Thank
You
mr.
chair,
so
I'm
going
to
present
the
water
services
financial
plan.
This
is
something
that
was
started
in
2009.
The
Ontario
provincial
government
set
up
a
regulation
requiring
financial
plans
to
be
submitted
as
part
of
license
renewals
in
2009.
We
moved
to
an
accrual
accounting
basis
of
accounting,
and
so
as
part
of
that
financial
plan
needed
to
be
presented
in
a
cruel
format.
So,
basically,
what
we've
taken
is
the
long
range
financial
plan
that's
already
been
approved.
C
It's
already
has
a
10-year
horizon
that
was
approved
in
September
last
year
and
converted
that
into
an
accrual
basis,
so
the
the
overview
of
the
over
of
the
plan.
It
meets
the
requirements
under
regulation
for
5307
for
municipal
drinking
water
license
renewals.
It
shows
a
healthy
financial
position
for
water
infrastructure
over
10
year
horizon
and,
as
I
mentioned,
the
10-year
horizon,
we've
matched
it
to
the
long-range
financial
plan.
It
shows
adequate
resources
are
being
provided
to
continued
successful
operation
over
time.
C
It
generates
annual
operating
surpluses
allowing
for
investment
in
infrastructure,
and
when
you
go
through
here
and
you
see
these
surpluses,
these
surpluses
are
based
on
an
accounting
or
accrual
basis.
It's
not
similar
to
the
budgeting
process
in
budgets.
We
include
contribution
to
capital
in
these
ones
that
it
shows
revenues,
expenditures
and
it
shows
what's
available
for
investment
in
infrastructure,
and
then
it
demonstrates
a
positive
cash
flow
and
acceptable
debt
service
cost.
C
So,
as
I
mentioned,
regulation
for
5307
requires
municipalities
to
submit
a
council
approved
financial
plan
for
their
drinking
water
systems,
in
accordance
with
generally
accepted
accounting
principles.
Projections
included
in
the
required
financial
statements
will
provide
a
snapshot
of
the
drinking
water
systems,
projected
financial
situation
as
well
as
resources
required
to
run
a
sustained
system.
So
it
provides
a
holistic
view,
not
just
expenditures
in
revenues.
It
shows
accumulated
surplus
cash
balances
and
tangible
capital
assets.
So
it
provides
a
holistic
picture
to
make
sure
that
those
water
services
are
financially
sustainable.
C
C
C
So
apply
a
financial
plan
requirements
it
has
to
cover
at
minimum
six
years
projections
and
we
just
completed
a
long-range
financial
plan
that
covers
ten.
So
that
was
perfect
for
us.
It's
based
on
piece
of
accounting
so
for
a
whole
accrual
basis,
and
we
need
to
provide
for
statements
of
financial
position,
financial
operations,
cash
flow
and
tangible
asset
continuity.
C
C
So
the
first
statement
is
a
statement
of
financial
position.
It
shows
the
assets
liabilities
over
the
water
of
the
water
program.
It
includes
cash
assets,
fixed
assets
which
are
tangible
capital
assets
shows
the
value
of
the
assets
that
are
in
excess
of
our
net
debt
and
debt,
as
a
percentage
of
net
book
value
remains
at
12
to
13
percent.
It
also
shows
the
accumulated
surplus
increases
over
time
as
city
invests
in
the
infrastructure,
so
the
accumulated
surplus
increases
for
a
while
one
point:
nine,
eight
billion
to
two
point:
eight:
three
billion.
C
The
next
statement
is
a
statement
of
operations.
It
shows
a
surplus
or
deficit
from
operations
in
the
accounting
period
that
is
contributed
to
capital
investment
in
infrastructure.
Debt
servicing
only
includes
the
interest
portion.
Amortization
of
capital
assets
is
recognized
as
an
expenditure,
so
these
are
all
the
things
that
are
different
from
the
budgeting
process
that
we
have
to
show
from
an
accrual
basis.
C
The
annual
infrastructure
needs
exceed
the
projected
annual
amortization
expense
and
that's
because
the
amortization
expense
really
shows
an
amortization
of
the
infrastructure
costs.
From
a
historical
cost
perspective,
we
purchase
an
asset,
we
amortize
it
over
a
period
of
time,
but
when
we
actually
invest
in
infrastructure,
it's
actually
at
a
higher
cost.
We
renew
at
a
higher
cost,
so
your
amortization
expense
doesn't
exactly
reflect
what
you're
actually
investing
in
infrastructure
you're.
Actually,
investing
more
surplus
increases
from
the
eighty-nine
point
million
in
2018
to
ninety
four
point:
eight
million
2010
2027.
C
So
we
show
surpluses
and,
as
I
mentioned,
that's
the
additional
money
that
then
goes
into
a
contributed
capital
for
investment
in
infrastructure.
Statement
of
cash
flow
shows
how
cash
position
changes
from
one
year
to
the
next.
The
cash
balances
remain
positive
over
the
10-year
projection
period,
and
it
decreases
slightly
over
time
to
do
some
planned
large
projects
during
the
projection
period.
So
example
was
the
water
treatment,
plant
expansion.
C
Tca
continuity,
so
this
report
change.
It
shows
that
changes
in
the
value
of
tangible
capital
assets
over
time.
It
describes
the
value
of
the
physical
assets
and
reflects
the
changes
due
to
disposal
creation
and
amortization.
The
asset
values
increase
from
2.1
billion
in
2018
to
3.1
billion
in
2027,
and
it's
just
to
mention
two
tangible
capital
assets
include
cities,
investments
but
also
contributed
capital,
so
assets
that
have
been
put
in
place
by
developers
is
also
included
in
the
balance.
C
So,
in
conclusion,
the
financial
plan
for
water
services
shows
a
healthy
financial
position
for
water
infrastructure
over
10
year.
Horizon
shows
adequate
resources
are
being
provided
to
continue
successful
operation
over
time.
It
generates
annual
operating
surpluses
allowing
for
investment
in
infrastructure,
and
it
demonstrates
positive
cash
balances
and
acceptable
debt
service
costs
within
the
15%
limit.
A
D
D
C
D
C
D
The
the
new
billing
structure,
fixed
costs
versus
variable
costs
for
for
consumption,
is
incorporated,
and
the
projected
revenues
is
of
course
incorporated
in
in
these
documents
correct
and
they
are
conservative
us
having
counsel
or
this
committee
or
fed
go.
Whichever
committee
be
made
aware
of
the
application
of
the
when
you
do
the
application,
how
do
we
get
it
when
it's
done?
I'll.
E
Mr.
chair
and
the
municipal
drinking
water
license
is
a
program
that
began
in
2010,
so
in
2010,
the
City
of
Ottawa
received
licenses
for
all
of
its
municipal
drinking
water
systems
and
we've
gone
through
one
renewal,
which
was
2014,
and
our
next
renewal
is
June
2019
and
typically
we
provide
the
application
and
the
information.
That's
that's
requested
by
the
ministry,
and
then
we
get
our
renewal
licenses
sent
back
to
us
through
through
the
the
clerk
and
myself
and.
E
Every
year,
council
receives
summary
reports
around
and
also
drinking
water,
quality
management
system
reports,
and
those
reports
were
required
to
provide
compliance,
information
and
all
of
our
license.
So
basically,
our
license
and
our
work
works
permit
include
all
of
the
elements
that
we
need
to
comply
with
and
through
those
reports,
you're
provided
with
what
those
compliance
requirements
are
and
how
the
City
of
Ottawa
is
doing
with
that
and
as.
D
E
You
will
go
so
the
summary
reports.
Our
compliance
reports
were
required
by
legislation
to
have
that
circulated
to
Council
by
March
31st
every
year,
so
we
expect
not
to
have
any
delays
associated
with
that
and
our
drinking
water
quality
management
system
report
is
due
to
go
on
the
legislative
agenda
for
June
and.
E
Yes,
so
there's
there's,
there's
two
things
so
there's
the
financial
plan
is
required
for
the
renewal
of
our
existing
license
and
we're
applying
for
a
brand
new
license
for
a
new
municipal
drinking
water
system,
and
so
that
application
process
is
being
developed
with
the
developer
and
will
be
submitted
to
the
ministry.
I
don't
have
the
the
timelines
that
we
can
work
with
our
stakeholders
in
planning
to
give
you
more
information.
Okay,.
C
When
you
look
at
an
accrual
basis,
you'll
see
the
cash
and
cash
equivalents
are
much
higher,
so
includes
all
unspent
capital.
Also,
so
when
you
see
the
reserves,
it's
all
committed
capital,
and
so
you
see
that
the
pure
reserve,
but
on
accrual
basis,
you
see
the
cash
in
the
bank,
basically
on
an
oasis.
D
C
C
D
And
I
understand
that,
but
it
just
seems
you're
using
the
same
term
in
a
bit
of
different
context,
so
it
I
just
wanted
to
so
on
an
annual
basis
and
provide
services
for
water
and
and
the
infrastructure
and
people
pay
their
bills.
We
expect
to
have
an
annual
surplus
of
89
million
and
that
is
invested
into
infrastructure,
renewable,
tangible
assets
and
infrastructure
that
will
serve
this
city
for
years
and
years
and
years
correct.
Okay,
that
is
all
thank
you.
B
E
So
by
regulation,
we're
required
to
provide
annual
water
quality
results
and
those
are
posted
on
the
city's
website
by
the
end
of
the
month
of
February
each
year.
So
anyone
any
anyone
external
to
the
city
could
go
on
the
city's
ottawa's
website
and
get
up
to
date
or
up
to
last
year's
water
quality
information.
E
There's
the
summary
report
that
I
mentioned
earlier,
which
is
basically
a
review
of
all
of
our
compliance
requirements
under
the
various
regulations
of
the
Safe
Drinking,
Water,
Act
and
and
basically
we
provide
confirmation
that
we've
met
the
compliance
requirements
and
if
we
have
not
met
those
compliance
requirements
where
were
required
to
explain
why
and
what
corrective
actions
have
been
taken
as
a
result,
and
we
also
have
annually
the
drinking
water
quality
management
system,
review
report
and
that's
a
comprehensive
report.
That's
under
our
management
system.
B
E
So
it's
not
an
approval
process
as
part
of
the
application
of
the
license.
So
basically
it
goes
to
the
Ministry
of
municipal
affairs
and
housing
and
is
is
just
a
plan
to
demonstrate
that
the
city
has
done
its
financial
analysis
over
the
six
year
life
cycle
that
they
require,
so
that
there's
no
approval
process
that
the
ministry
does
with
that
inference.
B
The
requirement
to
do
the
plan
which
we
do
okay,
do
these
plans
they'll
give
an
accurate
picture
of
the
water
system
across
the
province.
If
you
were
to
look
at
data
aggregate
lis,
can
you
get
a
fairly
good
understanding
of
the
state
of
the
system
in
Ontario?
I
would
suspect
this.
These
are
the
plans
where
you
would
draw
that
information
from
you
all.
The
other
plans
you
listed
really
doesn't
give
details
of
the
health
of
the
systems
it
would
seem.
B
The
financial
plan
is
who
is
accurately
getting
a
good
understanding
of
the
state
of
the
water
system
in
Ontario,
would
be
the
Ministry
and
I
want
to
know
other
than
receiving
it
who's
who's.
Looking
into
these
numbers
who's,
looking
at
the
data
to
assess
whether
or
not
the
systems
are
safe,
the
water,
safe
and
that
municipalities
have
a
true
financial
plan.
You
know
over
the
next
10
years
to
make
sure
they're
on
the
right
track.
If.
A
B
On
the
right
track,
would
we
be
getting
information
back
or
feedback
back
from
the
ministry
say
we
just
submitted,
but
there's
not
a
lot
of
dialogue,
I'm
getting
a
sense
and
I
want
to
make
sure
there
is
that
assessment
going
on,
at
least
at
the
provincial
level.
It
seems
that
we're
on
strong
footing
in
Ottawa,
but
how
can
we
know
that
in
this
province
the
system
is
healthy,
I.
E
Think
that
the
ministry
certainly
has
different
mechanisms
that
they
that
they
use
and
I
think
there's
in
terms
of
compliance
and
inspections
and
operations
and
maintenance,
there's
a
whole
ministry
inspection
protocol.
So
every
year
the
ministry
will
inspect
and
it's
it's
a
20
plus
criteria
that
they
review
some
years
are
more
in-depth
than
others,
and
those
report
cards
are
posted
on
a
ministry's
website.
They
have
a
tree,
a
chief
drinking
water
inspector
and
annually.
E
They
provide
a
report
card
on
the
operations
and
maintenance
and
overall
health
of
the
Ontario
municipal
drinking
water
systems
and
regarding
their
the
financial
plans.
They
are
also
looking
that
the
individual
councils
that
are
responsible
for
those
municipalities
was
for
those
systems
have
done
their
due
diligence
and
in
developing
those
plans,
so
I
think
that
they
leave
it
up
to
the
councils
to
to
determine
that
they've
made
the
best
decisions
possible
for
their
systems
and
there's
also
on
the
infrastructure
side.
There's
asset
management
regulations
that
are
also
coming
online.
B
F
B
What
type
of
failure
in
the
infrastructure
would
trigger
the
city
to
file
an
insurance
claim?
We
have
had
numerous
water
main
breaks
in
a
very
specific
neighborhood
of
my
ward.
These
are
small
in
the
grand
scheme
of
things.
When
you
look
at
the
total
cost
of
the
assets,
it
would
seem
perhaps
unreasonable
to
file
insurance
claims
for
very
small
breaches
like
this.
But
what
would
trigger
the
city
to
say
you
know
what
these
are
adding
up
or
there's
a
significant
breach
in
our
infrastructure
to
file
a
claim.
When
does
the
city
consider
filing
claims
versus?
F
B
B
Minimum
level
before
the
city
would
file
some
sort
of
claim
on
a
system.
That's
worth
so
much,
but
I
just
wanted
to
ask.
As
far
as
the
financial
plan
goes,
though,
mr.
chair
I
I
appreciate
the
information
that
we
have
before
us.
I
do
think
the
city's
plan
is
sound
and
there
certainly
is
a
plan
going
forward
that
this
committee
has
wrestled
with
on
more
than
one
occasion
and
developed
a
plan
and
I'm
certainly
going
to
be
supporting
what
we
have
before
us.
Thank
you.
G
G
C
But
we
we
have
to
update
it
with
each
license.
I,
don't
know
how
often
any
money
every
five
years,
so
we
would
be
updating
it
five
years
later
to
reflect
the
new
projection
and
the
changes
in
the
plan.
They
want
to
make
sure
that
we
have
a
plan
in
place
at
a
minimum
and,
of
course,
annually
we
make
decisions
as
part.
B
C
G
G
G
A
Thank
you
any
other
questions
from
committee.
No
seeing
none.
Thank
you
very
much.
We
continue
to
receive
I've.
No
perfect
marks
is
an
exaggeration,
but
absolutely
top
marks
for
our
water
system.
I
believe
our
citizens
should
expect
no
less,
particularly
from
from
something
as
basic
as
water,
there's
nothing
nothing
more
basic
than
water,
and
we
are
all
very
aware
in
the
post,
Walkerton
environment
that
we
are
all
personally
liable
for
the
safety
of
our
water
supply.
A
So
all
the
more
reason
to
have
a
good
financial
plan
and
one
that's
maintaining
our
assets
and
seems
to
be
on
course,
for
to
be
both
financially
sound
to
allow
us
to
to
maintain
physically
sound
water
assets.
So
thank
you
very
much
for
presenting
this
plan
is
this
received.
Then
yep
seem
to
approve
two
proofs.
Thank
you
searching
for
that
word
carried,
received,
approved
and
carried.
Thank
you.
A
H
Have
wanting
to
reach
it,
there
have
been
a
considerable
number
of
media
stories
in
recent
weeks,
describing
the
impact
across
the
country
of
China's,
ban
and
restriction
on
the
import
of
many
types
of
recycled
paper
and
plastics.
Has
the
ability
to
market
materials?
Excuse
me
currently
collected
through
the
black
box
and
blue
box
recycling
program,
be
negatively
impacted
by
the
significant
change
in
the
international
market
and
whether
the
medium
run
and
longer-term
implications
for
marketing
ottawa's
recycled
materials
and
on
the
price
received
for
them.
Thank.