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Work to keep Wellington water projects moving forward approved by council

Council plans to keep moving forward on Wellington water projects stating no money is being spent related to two decisions made at Thursday’s committee of the whole meeting, and further movement forward will first come to council.

Council voted to direct staff to begin procurement of the final design of the water and wastewater plants in Wellington (stressing this does not mean approval) but having it will help meet a tight deadline to qualify for funding.

Last week, the municipality announced it made application to the province for $18 million under the province’s Housing Enabling Water System Funding program. A condition of the application is that the project begin before September 2024 – in this case, the act of tendering of the final design of the water plant would qualify as a project start. Staff expect to hear from the province as to whether or not the application is approved sometime in July.

Council also heard that no third-party companies were willing to complete a peer review of consultant studies for the water projects. As such, staff recommended asking Watson Economists – at a cost estimated at $75,000 – to prepare an addendum report to their studies to help answer questions and concerns from the community. Staff further recommended the scope of the new report be set by the audit committee. Watson’s studies included an area specific development charge bylaw and background study; a rates study and a regional growth study.

Amanda Carter, the County’s Director of Finance, reported four attempts were made in February and March to seek a peer review, however, of more than a dozen firms, many did not respond, and others that did stated they did not have the resources available to review another firm’s work.

When council moved forward with installation of a new watermain and sewer pipes infrastructure awarding a $16 million contract in January, it also responded to resident requests for a review due to concern with various studies some felt may not accurately reflect population and commercial growth and were centred mainly on debt responsibility, if developers didn’t develop.

Following much discussion, councillors voted for staff’s alternative solution – to have the audit committee identify additional scope of work to be incorporated into the next two studies that will need to be completed.

In the fall 2024, once the Picton Master Servicing Plan is completed, the municipality will be undertaking a Development Charges Background Study (cost expected to be $50,000) which will look at the potential to combine the area specific development charge for Wellington, with a charge in Picton, given the outcome of Regional Water Supply Servicing Master Plan. Then, in 2026, with the benefit of the feedback from the Water Wastewater Rates Community Committee, a Rates Study for 2027-2031 will be completed (cost estimated to be $35,000).

Mayor Steve Ferguson told council staff had done everything it could to seek a third-party review and not moving forward would be a big loss to the municipality. He also said discussion with Todd Smith indicated the MPP would be championing the County’s ask with the minister of infrastructure.

The mayor stated not moving forward, or reconsidering, gives “entirely the wrong message” to the development community, construction, trades, and other people and businesses… “We absolutely have to be responsible and I think the CAO, Director of Finance and other members of municipal staff have done an exemplary job navigating and negotiating future planning for development, and growth for our community… There’s confidence in Prince Edward County if we look at the applications in various stages, as the CAO mentioned, some 8,000 or so units in the works.”

Councillor Phil St.-Jean added he suspected nobody wanted to take on a peer review as they recognize Watson as one of “the best in the business… I look forward to whatever the audit committee brings forward.

“With regard to the procurement of the final design… we just heard from the CAO there’s a very tight timeline and if we don’t move forward with something as simple as a final design, I think we’re going to screw ourselves and we will not be able to access or be successful in getting any $18 million in funding. It’s foolish not to move forward. It doesn’t mean we’re buying a plant. It doesn’t mean we’re going straight to build. There are multiple steps to come.”

The capital costs for a new Wellington regional water treatment plant are pegged at $40 million; a new Wellington raw water intake, estimated capital cost of $15 million, and the preferred plan for a new transmission water main connecting Wellington and Picton, estimated capital cost $50 million for a total of $105 million.

“The financing strategy for this infrastructure is based on the premise that growth should pay for growth,” states Carter. “The municipality is leveraging growth that will be eligible for development charges to supplement the cost of required infrastructure.

She also noted that with the province’s recent announcements related to Bill 185, the Cutting Red Tape to Build More Homes Act, there would be changes to development charges that could possibly be applied to Picton as they are now in Wellington.

“Development charges would generate revenue as new homes are built over time, rather than the full cost of infrastructure renewal being borne on the current ratepayers.”

Regardless of growth, much of the water infrastructure in place is aging and will need to be replaced within the next 10 years, stated Carter in her report to council.

Recommendations approved by committee of the whole move to the May 7 council meeting to be ratified.

Background:
In Wellington, a Master Servicing Plan was completed in 2021 that identified the future infrastructure needs.

That plan initiated a series of council discussions and decisions that resulted in an area-specific development charge for Wellington (based on a Development Charge Background Study) and a Water and Wastewater Rates Study
(spanning the period of 2022-2026) which ultimately framed what was included as part of rate-supported capital projects in the 2022 budget.

The Regional Growth study was completed in 2023, testing the growth assumptions in the Area-Specific Development Charge framework in the context of the regional economy including Hastings County, Quinte West and Belleville.

More details are available on the County’s website.

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