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Water and Wastewater

York-Peel Agreement

Questions on the York-Peel Water Servicing Agreement

  1. Can you explain what the York-Peel Water Servicing Agreement is about?
  2. Why did Peel enter into this agreement with York?
  3. Could you please provide details on the $152 million in financial benefits to Peel?
  4. How did the Region protect the water supply for Peel residents and businesses?
  5. You mentioned that that the water system will be enlarged as a result of this agreement. How would water restrictions be reduced through this water sharing arrangement?
  6. What happens if there is another dry summer and the Region of Peel is faced with restrictions on water use?

Answers

  1. Can you explain what the York-Peel Water Servicing Agreement is about?
    • York Region lacks direct access to a water supply from Lake Ontario. Much of their current water supply comes from the City of Toronto and groundwater systems.
    • To meet their new growth needs an additional water supply is required.
    • They had three options for additional supply. Peel was their preferred option.
    • They will still receive water from Toronto for their current needs. The water supply from Peel will help to supplement that supply so York can meet future needs from 2004 to 2031.
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  2. Why did Peel decide to enter into this agreement with York?
    • This is a win-win-win opportunity for Peel and York

    FINANCIAL BENEFITS FOR PEEL

    • Approximately $152 million in payments and savings by York that can be invested and used by Peel
    • York will also pay Peel approximately another $250 million to construct the infrastructure they require within Peel.

    LARGER WATER SYSTEM

    • Peel has access to a much larger water system.
    • Provides greater system security
    • Reduces the chances of future water restrictions

    ROAD IMPROVEMENTS

    • Guaranteed road improvements that will benefit East Brampton
    • The agreement stipulates that road improvements must be made within West Vaughan by York Region

    GTA-WIDE SERVICING AND SMART GROWTH

    • Follows in the GTSB philosophy of GTA-wide servicing and some of the Smart Growth Strategies by the Ontario government
  3. Could you please provide details on the $152 million in financial benefits to Peel?
    • Buy-in on existing assets ($52 million).
    • Peel sells to York only the existing infrastructure that Peel does not need to meet its own future growth needs.
    • Capital Cost Savings ($8 million)
    • Some new infrastructure components will be shared by Peel and York.
      Peel saves on some of the costs
    • Replacement Rates ($92 million)
    • A portion of the water rate paid by York will go to infrastructure replacement.
    • York will now share in the replacement of this infrastructure that would otherwise have been completely paid for by Peel.
    • Furthermore, Peel will receive and invest these replacement funds well in advance of the actual need to replace the infrastructure.
  4. How did the Region protect the water supply for Peel residents and businesses?
    • The Peel/York Agreement adheres to the Region's guiding principles.
      Principle 1: There must be no risk or negative impact to Peel's ratepayers or its local municipalities. Infrastructure will be added and/or oversized beyond Peel's ultimate water needs.
    • Peel's capacity to service its own customers will not be affected by the additional water supply to York.
  5. You mentioned that that the water system will be enlarged as a result of this agreement. How would water restrictions be reduced through this water sharing arrangement?
    • In 2001, the GTA experienced its driest summer in over 50 years.
    • This resulted in Peel's first ever mandatory water ban.
    • Such bans were implemented throughout the GTA.
    • As mentioned earlier, York is investing approximately $240 million in Peel so that Peel can build a bigger system to accommodate them.
    • Peel will now have access to a much larger water system than it would have had with a Peel-only system.
    • The Agreement permits Peel to share proportionally with York in this much larger water system during dry weather periods.
    • Peel will realize additional benefits from the $240 million being invested by York to build their infrastructure. Potential economic and employment opportunities for Peel-based contractors and suppliers.
    • Furthermore, by connecting to York's water system, Peel can access York's water during periods of emergency, i.e. failure of a component within Peel.
  6. What happens if there is another dry summer and the Region of Peel is faced with restrictions on water use?
    • Peel's capacity to service its communities will not be compromised by the sharing of Peel's water infrastructure with York.
    • Provisions in the agreement reinforce Peel's primary commitment to provide an adequate water supply to Peel's ratepayers.
    • Peel may reduce the flows to York if it exceeds the maximum permitted flows
    • Provisions are included to permit Peel to reduce the water supply to York on a proportional basis during periods of water restrictions

Revised: Thursday July 26 2007

www.peelregion.ca

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