• May 2019 Public Information Session

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Public Notice to All Residents of the South St. Andrews

Wastewater Collection System

 

Decision

The Wastewater Collection System will remain as originally planned with the flow to be directed through West St. Paul to the Winnipeg’s North End Water Pollution Control Center.

Executive Summary

Council has reviewed the option of changing the South St. Andrews Wastewater Collection Project’s flow away from Winnipeg and sending it to Selkirk. After much deliberation & analysis, we have come to the conclusion that sending the wastewater to Winnipeg is the most feasible choice, and we will explain why with the following reasons:

  • The project must be completed by March 31, 2020 to meet current obligations to the federal government.
  • Changing direction will cause project delays of a number of months, potentially beyond the March 31, 2020 funding deadline imposed for having the project completed.
  • Delays will cause increased costs to the project through interest charges and changes to tender pricing.
  • Delays will place current Grant Funding in jeopardy.
  • Changing the project scope will place previous Grant Funding in jeopardy. Exposing $20,500,000 of funding to the possibility of recovery by the funders.
  • Additional Capital Costs of between $5,400,000 - $7,200,000 will be charged to the residents if the project directs the wastewater to Selkirk which would be an extra burden on residents.

Background

St. Andrews’ Mayor & Council have been in discussions with Selkirk’s Mayor & Council with regard to redirecting the wastewater to Selkirk’s new Wastewater Treatment Plant. Selkirk provided a strong business model that economically supported the option to send the wastewater to them. But, after weighting Selkirk’s business model against the points listed above it was the best choice for our residents to continue with the Winnipeg option.

Using the information gathered from Selkirk, AECOM, and Stantec, we completed an analysis to determine what the extra capital cost per resident will be if we choose the Selkirk option. The analysis shows that each resident would be charged between $250.71 and $951.28. The analysis then calculates the reduction in utility "Up Front” costs of $1,851. This is an immediate reduction to the residents. Although this report is compelling, other factors were also considered when making the decision to continue with the Winnipeg option and those factors overrode this analysis.

Support Document(s):

o   Estimated Cost to Residents

Selkirk’s business model includes various utility rates it would charge St. Andrews’ residents, and compares those rates against the same rates that Winnipeg charges. It also includes an incentive payment from Selkirk to St. Andrews to assist in the additional capital costs for the Force Main. If the option was selected to direct flow to Selkirk. Both St. Andrews and Selkirk would have benefited if the flow was directed to Selkirk.

Support Document(s):

o   Selkirk’s Utility Rate Comparison

o   St. Andrews’ schedule of Rate Comparison "Winnipeg vs Selkirk”

o   Selkirk’s Letter offer

o   Selkirk’s Certified Council Resolution in support of the Letter Offer

o   St. Andrews’ calculation of the value of Selkirk’s cost sharing in "Today’s Dollars”

Selkirk also provided a memorandum prepared by their engineering consultant AECOM. This report reviews the capacity of Selkirk’s treatment plant, cost for upgrades, and when the upgrades are required. In conclusion, Selkirk would need to complete upgrades to the treatment plant to allow for the additional flow. The capital costs are estimated at three stages of increased flows: $1.7million at start up, $5.3million at 870 additional dwellings, and $8.9million at 3,000 additional dwellings. These costs would be shared by all utility users.

Support Document(s):

o   AECOM Memorandum

St. Andrews’ engineering consultant Stantec completed a Feasibility Study. The study provides a cost estimate to build a wastewater collection system to direct the flow to Selkirk’s treatment plant. The study also looks at the costs to complete the current Phase 1 & Phase 2 portion of the project, and then adds those costs together to determine the overall cost for the wastewater collection system to re-route to Selkirk.

Support Document(s):

o   Stantec Feasibility Study

Funding from all levels of government for this project equals $20,500,000. Currently $4,500,000 of funding remains from the federal/ Manitoba governments, and must be spent by March 31, 2020.

Support Document(s):

o   Listing of funding received from federal and Manitoba governments 

Concerns that the federal/ Manitoba governments shared with us are:

  • Current Grant Funding program closes on March 31, 2020. Wastewater Collection System (WWCS) Project must be completed by this date to be eligible for funding.
  • A large part of the project objective is to direct the flow to Winnipeg, and this was reflected in all the funding agreements including West St. Paul’s (WSP) Project.
  • If there is a change to the project (re-routed), this may mean that the project no longer fits into the parameters of the funding agreement’s agenda, and may not be eligible.
  • A request for change would need to be reviewed by each government’s department responsible for each funding agreement, including the funding agreements for the WSP Project.
  • If we submit a request to have the project altered (re-routed), it would be considered a substantial change, and could make the project ineligible or parts of the project ineligible. Funding we have already received, and future funding commitments may be ineligible. This may also trigger an expectation for reimbursement to the funders.
  • All grant funding agreements involved in this project (WSP, Ph1 & 2) would be reopened, and reviewed to confirm all project objectives are met, and that all costs are still eligible.
  • If a request for change is submitted, it could take months for the Provincial & Federal Governments to review. This would cause a delay in the project and make it difficult for us to meet the current funding deadline of March 31, 2020.
  • If a request to re-routing is submitted, documentation would need to be provided including: proof of land ownership, environment reviews for all the lands affected by re-routing, design details, cost estimates, other support as listed in the funding agreements, and other support as requested by various funders.

Along with the concerns we received, we have also received the following letter from Manitoba Strategic Infrastructure Secretariat (MSIS) and they share their concerns.

Support Document(s):

o   MSIS May 7, 2019 Letter with concerns

We have been advised that the provincial grant funding from MWSB for 2019-20 will be reallocated if we did not make a decision by May 21, 2019.

Support Document(s):

o   MWSB May 16, 2019 Letter requesting a decision from St. Andrews

Minister Wharton's letter received May 21, 2019:

Support Document(s):

o   Letter received from Minister Jeff Wharton (Minister of Municipal Relations) dated May 21, 2019

We also took into consideration what activities we would need to be completed before the project could be changed, and how much time is needed to complete each activity. They are: 

Estimated Time Required

Activity

Comments

3 months

Send a request to the Grant Funders to change the project scope to direct to Selkirk

Could be longer than 3 months if an election is called within the timeline.

3 to 5 months

New LID and borrowing by-law

After we received the funders response we can start on the LID & By-Law

3 to 5 months

Municipal Board Hearing

after preparing the LID & by-law we can prepare for Municipal Board Hearing and we must allow time for the possibility of objections to the by-law

2 to 3 months

Detailed Project Design for flow to Selkirk

After approval from the Municipal Board we can request a design and this will be a minimum of 2 to 3 months, and possibly longer

1 month

Tendering of Project

After the design is completed, we can tender

6 months

Construction of project

Once tendered, and contracts are signed we can start construction

 

Along with the table of activities and timelines, we prepared a "Timelines schedule” see the attached.

Support Document(s):

o   Timelines

 

 
  
South St. Andrews Wastewater Project
 
The new South St. Andrews Wastewater Project will improve quality of life in our municipality for generations to come. 

Permanent wastewater infrastructure addresses longstanding health and environmental concerns caused by failing septic fields. Instead of persistent challenges related to odour and surface water contamination, residents will have peace of mind knowing that our water, air and soil is protected.  

The South St. Andrews Wastewater Project is an investment in the long-term health and well-being of our community. A new permanent sewer will increase local property values. It will protect our lake. Most importantly, it will ensure South St. Andrews will always be a great place to call home. 

The RM is committed to keeping residents fully informed at each stage as this important project moves ahead. The RM will also continue to share updates via community newsletters, letters to residents in the project area, and through email updates. You can sign up to receive email updates using the CodeRED notification system. As well, there will be public hearings scheduled as the project moves forward, which are an opportunity for residents to participate in person.  

Both the "important updates” and FAQ sections of this website will be continually updated as the project proceeds and as the RM continues to receive questions and feedback from the public.  

If you have questions that have not been addressed in the material available on this website, we invite you to contact the RM directly, either at info@rmofstandrews.com or by phoning the RM office. We’ll do our best to respond within a timely manner.  

Update on South St. Andrews Low Pressure Sewer Project

To view the latest updates on the Low Pressure Sewer Project, please click on the following link. This report was presented to Council at the December 11, 2018 Council Meeting: December 11, 2018- Project Update