Economic SPC to address major water utility projects

By Lethbridge Herald on September 11, 2023.

Economic SPC is set to hear a report that says there is a need to amend the CIP to advance water utiliy projects needed to significantly increase the capacity. Herald photo by Al Beeber

Al Beeber – LETHBRIDGE HERALD – abeeber@lethbridgeherald.com

Lethbridge city council is getting back to official business after time away from chambers on Wednesday.

Council, acting as Economic Standing Policy Committee, will meet on Wednesday at 1:30 p.m. in chambers.

On the agenda is a presentation from Doug Kaupp, general manager of Water, Wastewater and Storm Water on a 2022-31 Capital Improvement Plan amendment.

A report to be presented by Kaupp says there is a need to amend the CIP to advance projects needed to significantly increase the capacity of the utility to address future anticipated demands upon it.

Kaupp’s report states that on peak days demands for water and wastewater exceed 90 per cent of the design capacity of the systems.

“In anticipation of near-term industrial and regional growth, the Capital Improvement Plan has been adjusted to provide for additional capacity for water treatment, wastewater treatment, pipes, and pump stations. The expansions plans are applying a phased approach based on the technical considerations of the unit processes involved. The amended CIP through 2026 will address only Phase One of the expansion plans with subsequent phases to come into play only as needed to support future demands on the systems,” says Kaupp’s report.

The total capital costs of the water utility Phase 1 projects is $123 million. This figure includes $85 million for the water treatment plant and $38 million for transmission and storage. Borrowing required for the project is up to $92,442,000.

Total capital cost of Phase 1 of the wastewater utility projects is $88 million, all but $1 million being for the wastewater treatment plant. The rest is for the lift station. This project requires borrowing of up to $71,403,000.

The City is exploring funding opportunities through grants to reduce the impact of the projects on utility rates. The report states the financing for Phase 1 projects will require rate increases in addition to those that are currently in the operating budget.

Water demand that exceeds capacity could result in the City needing to impose residential water restrictions and risk being unable to meet industrial demands and maintain stored water volumes needed to respond to firefighting events.

The report says wastewater demand that exceeds treatment plant capacity could result in the WTTP failing meet regulatory limits with negative environmental consequences. If the wastewater conveyance system can’t move the volume of wastewater this can cause sewer backups and release raw wastewater into the environment.

The report says both water and wastewater systems have seen a sharp increase in demand over the last few year primarily because of industrial growth and the effect of hotter and drier summers here.