Erin is inviting companies to submit proposals to take over
operation of the town’s drinking water systems, even though town council has
not made a decision to proceed with such a change.
“This will answer once and for all – do we do it the most economical
way?” said Mayor Al Alls. “I thought it was a good idea.”
CAO Nathan Hyde took the initiative in consultation with the mayor,
but did not bring the matter before town council. There is no cost to the Request
for Proposal (RFP) process and no commitment to actually contract out the
functions of the water department.
Bidders must submit proposals by Feb. 28, with a full public report
to be provided for town council in April. If council accepts a proposal, the
transition could start immediately.
“It is an opportunity for council
to review all options for operating the water systems in an efficient and
effective manner, so that rate payers are satisfied that they are getting value
for the services being provided,” says an information sheet published with the
RFP at erin.ca.
“Council and the public have previously raised questions relating to
the cost of water services, and it is staff’s job to ensure that we are
delivering these services at an optimum price, while planning for future
infrastructure replacement costs.”
The RFP will help the town decide whether to keep the water system
in-house or negotiate an external partnership. The water infrastructure would
continue to be publicly owned.
The mayor said that an external provider could potentially be
involved in providing or securing funding for water infrastructure, and could
be considered for management of the wastewater system once it is built.
“Cost is an important factor
in this competition but it will not be the sole determining factor,” says the
RFP.
In 2015, council set the water rate at $3.99 per cubic metre, for a
five-year period. This was a reduction from the previous rate of $4.29, but it
is still considered high, the result of five earlier years of 20 per cent
annual increases (2009-2013).
The Town of Erin has four main wells, 33 km of watermain, 194 fire
hydrants and 1,300 services, plus a water tower and other reservoirs. There are
two main drinking water systems serving Erin village and part of Hillsburgh,
plus small systems for the Municipal Office, Ballinafad Hall, Barbour Field and
the Hillsburgh Fire Hall.
An outside company would have to provide 24/7 operational coverage,
including full compliance with government regulations, emergency response,
water meter and valve inspections, and all equipment repairs and maintenance. The
RFP proposes a five-year contract. The company would become the project manager
for capital projects.
Information from the 2018 budget process shows the annual operating
expenditures of the water department at $1.5 million, with capital projects
this year expected to cost $123,000. Reserves total about $2.2 million,
intended for upkeep of the system. The department is funded by the actual water
users in Hillsburgh and Erin village.
The town is currently conducting an Environmental Assessment,
attempting to find suitable locations for new wells that would back up existing
sources and provide support for new growth.
