ATHABASCA — Water, water everywhere but why does it cost so much?
That’s the question asked by Athabasca County councillors to the Aspen Regional Water Services Commission (ARWSC) who attended the Aug. 25 regular council meeting to break down the differences in why Colinton gets a different rate than Wandering River.
“The objective of the presentation this morning is to provide an overview of what the Aspen Regional Water Services Commission does ... so there is a base level understanding of the commission,” said ARWSC manager Jamie Giberson. “That’ll allow us to move forward and do a discussion around the commission rate structure.”
The abridged version of the answer is the ARWSC calculates their expenses then divides them by how many cubic metres of water they project will be needed by users and voila, a base rate of water per cubic metre is born.
The expenses for the ARWSC include salaries for five staff, professional development, power and gas, communications from the SCADA (supervisory control and data acquisition) system to radio licences and cell phones, insurance, professional services, administration and Internet technology, instrumentation and analytical, chemicals, lab testing, contracted services like electrical or mechanical, vehicles including maintenance, fuel, health and safety expenses including fire extinguishers, first aid, crane inspections, et cetera, the $5.7 million debenture on the Athabasca to Boyle waterline, plus adding to reserves for future projects.
“The objective of the commission is not to take water from the river to the tap but treat the water and deliver it to the respective municipalities,” said Giberson. “We provide wholesale bulk water.”
And that water is charged depending on where the water comes out of the tap.
The plant rate (PR) is the base rate and covers the associated expenses of raw water collection and water treatment.
“The rates are essentially what it costs to operate the raw water pumping and the regional water treatment plant which we refer to as a plant rate (and) is what the town (of Athabasca) pays,” he said.
The AB rate is water sent from Athabasca to Boyle via Colinton. This rate includes the costs associated with the pipeline which runs from Athabasca to Bison Ridge Estates, Colinton, and Boyle and anyone along this part of the pipeline pays the plant rate plus the AB rate.
“Whereas the town pays just the plant rate, the Village of Boyle pays the plant rate and that AB rate,” said Giberson.
The BW rate is associated with the pipeline between Boyle and Wandering River. Water users along the line to Wandering River, like Grassland, pay the PR, the AB rate, and the BW rate.
“The line from Boyle to Wandering River was turned over to the commission without any additional costs,” he said.
Residents in Colinton also pay a debenture to pay for the pipeline as part of their property taxes which is then reflected in a lower water rate to offset the debenture. A process some councillors didn't seem to understand.
“The other facet that I’m really stuck with is the Colinton debenture,” Coun. Tracy Holland said. “They may have the debenture, we may be charging a levy, but we’re also giving the rebate right back to cancel that.”
Coun. Natasha Kapitaniuk jumped in to explain the uniqueness of her division.
“If, for example, Colinton were to pay the same water rate as everywhere else and we’re paying $232 extra a year on our taxes then how would that work out? The $232 … zeros out what we would pay if we didn’t have to pay that (debenture),” she said.
Giberson also noted that because water is a commodity, there are ebbs and flows in usage.
“The difference for the commission in terms of establishing a budget (for) a municipality, we don’t have … a known amount of water we’re going to be selling,” he said. “It could be very high, it could be very low, it fluctuates. This summer our water rates are quite a bit above and beyond what’s expected, and I would attribute that to the hot weather, but we’ve had also construction in the community. Hotels are full, all the restaurants are full and we’re seeing probably a 25 per cent increase in water we’ve pushed out in the last three months.”
Giberson provided numbers dating back to 2010, when he started with the commission which was formed in 2008.
The plant rate from 2012 to 2014 was $1.772 per cubic metre, then rising from $1.832 in 2015 to the current $3.394. The AB rate started at $3.267 in 2012 but dropped to a low of $2.646 by 2015 before rising to $4.555 this year and the BW rate didn’t start until 2015, but the first year it was $4.631 and dropped slightly in 2016 and 2017 before hitting $6.913 in 2022.
"If we see a 100,000 cubic metre reduction in water sales at $3 a cubic metre that’s $300,000 we've budgeted, gone," said Giberson.
He also provided council with what it would cost with all water at one rate or if the pipeline debentures were factored in separately.
If it was a straight across number of cubic metres per user, water rates would be around $4 which would be a slight jump for Town of Athabasca users, a nominal decrease for people on the Athabasca to Boyle line and a sizable decrease for users on the Boyle to Wandering River pipeline, from $6.90 to $4.19.
“(If) we still wanted to separate the raw water treatment plant costs from the pipeline rates it would be $3.39 for the plant rate and then $1.91," he said. "So, Boyle, Colinton, Bison Ridge, Grassland, Wandering River area would all be paying that $5.30.”
All of the information provided didn’t make the process for setting a water and wastewater rate easier though.
“I’m still hung up on the northern water rates,” said Coun. Gary Cromwell.
Following the ARWSC presentation the motion Holland made at the July 27 meeting was ruled out of order as it was too much like a motion Coun. Rob Minns made at the July 12 meeting which was voted down, so it was back to square one.
“There are options left,” said reeve Brian Hall. “There are Options 1 and 2 at 10 and 15 (cubic metres). There are Options 3 and 4 at 15 (cubic metres).”
Minns then made a motion to adopt Option 4 with a minimum of 15 cubic metres which would give Colinton a rate of $100.67; Wandering River, Grassland and rural subdivisions would pay $120.00; and truck fills as well as any amount over the 15 cubic metres would be allotted at $8.
“I like the 15 cubic metres just for the aspect that we’re so far behind the 8-ball that it would bring us revenue that we so desperately need,” said Holland.
Coun. Ashtin Anderson then made a motion to amend Minns's motion so that as of Jan. 1 the rates would switch to Option 2 and 10 cubic metres.
As the discussion wound around and around, and motions and amendments were voted down, it was Cromwell who produced an option to split the difference.
“Can I please make the motion that we adopt the charges in Option 4, with no phased in approach, and a 12-metre cubed minimum to get more in line with the average family (usage),” he said.
After several amendments and much discussion recording secretary Leah Blair was able to read out a motion:
“Moved by Coun. Cromwell that Bylaw 014-2022 be given first reading with water rates set at $8 per cubic metre with no phased in approach, with a minimum of 12 cubic metres and with truck fill rates at $8 per cubic metre but the Rochester residential and commercial sewer rates remain the same as of today’s date and further that effective Jan. 1, 2023, the truck fill charge be set at $9 per metre cubed and effective Jan. 1, 2023, that the water rates be set at $11.15 per cubic metre and it is understood that the debenture adjustment will be carried forward in Colinton.”
Coun. Joe Gerlach called for a recorded vote on the first reading, and it passed with Hall, Kapitaniuk, Coun. Camille Wallach, Minns, Coun. Ashtin Anderson, and Cromwell voting in favour. Gerlach and Holland voted against it.
The second reading was passed by a margin of 5-3 with no recorded vote. The bylaw will not come into effect until it has passed third reading.
Coun. Kelly Chamzuk had recused herself due to potential pecuniary interests.
