Item - 2018.PW28.5

The Public Works and Infrastructure Committee recommends that:

1. City Council authorize the General Manager, Toronto Water, to negotiate and, where appropriate as determined by the General Manager, Toronto Water, enter into and execute on behalf of the City, the renewal of the Water Supply Agreement including without limitation any amendments, extensions or renewals, on terms and conditions set out below and on any other or amended terms and conditions satisfactory to the General Manager, Toronto Water, and in a form satisfactory to the City Solicitor, subject to the following conditions:

a. one of the purposes for doing so is for the City's own purposes;

b. the City has a sufficient supply of water to fulfill the obligations of the renewed Water Supply Agreement and meet the City's own water supply requirements, as determined at the sole discretion of the General Manager, Toronto Water;

c. the expiry date of the renewed Water Supply Agreement shall be May 31, 2040, subject to any further renewal terms and conditions as may be negotiated between the parties;

d. the water rate and cost calculations set out in the renewed Water Supply Agreement including Schedule "D" shall be acceptable to the General Manager, Toronto Water; and

e. the terms and conditions of the renewed Water Supply Agreement and any amendments shall be in general conformance, as determined by the General Manager, Toronto Water, with the guiding principles set out in Attachment 3 to the report (March 19, 2018) from the General Manager, Toronto Water.

2. City Council authorize the General Manager, Toronto Water to negotiate and, where appropriate as determined by the General Manager, Toronto Water, enter into and execute on behalf of the City an agreement to transfer ownership of the Toronto Maple Collector to the City in an "as-is, where is" condition and at no cost to the City and on any other or amended terms satisfactory to the General Manager, Toronto Water, and in a form satisfactory to the City Solicitor, subject to the following conditions:

a. the City acquires the appropriate land rights from the Toronto Region Conservation Authority to permit the use, maintenance, alteration, repair and/or replacement of the Toronto Maple Collector; and

b. title to the Toronto Maple Collector shall be good and free and clear of any encumbrances.

The City of Toronto (the City) and Regional Municipality of York (York Region) have a mutual interest to negotiate the renewal of the Water Supply Agreement, wherein the City supplies water to York Region.  The current Water Supply Agreement was executed in 2005 and expires on May 31, 2025 and York Region has requested that the Water Supply Agreement be renewed to 2040 to secure a long-term water supply for York Region.  Since 2005, several economic and environmental factors (e.g., continued aging of water infrastructure) that impact the water pricing model in Schedule "D" of the Water Supply Agreement have changed with respect to meeting the original business objectives. The City is interested in renegotiating and amending the water pricing model in Schedule "D" of the Water Supply Agreement in order to address these changes.

York Region owns the Maple Collector Sanitary Trunk Sewer (the Maple Collector), which is a concrete sanitary trunk sewer that is located in York Region and Toronto.  The City and York Region have a mutual interest to negotiate an agreement to transfer ownership of the 2.4 kilometers of the Maple Collector that is located in the geographical boundaries of Toronto (the Toronto Maple Collector) shown in Attachment 1 from York Region to the City.  The City is interested in assuming ownership of the Toronto Maple Collector in order to provide wastewater servicing capacity for future development, reduce inflow and infiltration (I&I) to the City's sewer system, and to achieve operational and maintenance efficiencies and cost savings for Toronto Water.

The purpose of this report is to obtain Council authority for the General Manager of Toronto Water to negotiate and, where the terms and conditions are acceptable to the General Manager, to enter into (i) a Water Supply Agreement amending agreement and (ii) a purchase agreement for the Toronto Maple Collector infrastructure.