Water woes: price tag for treatment plant fixes keeps rising
By Lethbridge Herald on June 11, 2025.
Al Beeber
Lethbridge Herald
Lethbridge city council on Thursday will be asked to support increasing the budget for two projects at the water treatment plant that are deemed critical for its continued operation.
The Economic and Finance Standing Policy Committee, consisting of mayor and all members of council, will meet at 12:30 p.m. in council chambers.
Two projects include one that will mitigate the risk of a clarifier failure while the second will mitigate risks of power supply failures.
The first includes the construction of a new high-rate clarifier, intended to provide redundancy of the solid contact clarifiers which have been operational for more than 40 years. It also includes upgrades to the the ancillary chemical and support systems associated with the clarifiers.
The medium voltage upgrades will include installation of new transformers, two new main electrical feeds to the plant, switchgear, motors and decommissioning of aging electrical equipment. The equipment to be replaced is nearing the end of its service life and the City is finding challenges to repair or replace components because of compatibility issues and long lead times.
The electrical upgrades will include full redundancy of the electrical utility service to bolster reliability of the plant’s electrical system.
The SPC will hear from chief financial officer Darrell Mathews that costs of the two tendered projects have come in over budget due to factors including inflation. Electrical and mechanical equipment costs have both risen in the last four years while market demand has driven up costs as well with multiple infrastructure projects being completed across Canada.
The plant process redundancy project was originally budgeted at $14 million but the cost has since risen to $42.3 million. The cost of the voltage upgrades project has risen from $7.5 million to $24.9 million.
The SPC will be asked to recommend that council amend the 2022-31 Capital Improvement Program budget for the two water utility projects.
Borrowing of $29,470,910 is needed for the projects.
A report to be presented to the SPC states that both projects are necessary for the City to ensure a continuous supply of clean drinking water. If the project amendments aren’t approved, the projects will have to be cancelled, with disruption in service leading to significant health risks and economic impacts.
“If the project amendments are not approved, this would increase the risk of failure of this critical asset,” says a presentation to be made to the SPC. “This in turn, would potentially compromise the City’s ability to deliver water services to the community and region. The Lethbridge Water Treatment Plant is a critical facility, which operates continuously (24/7) to ensure the supply of clean water to the community and the region,”
Rate increases won’t be required if the projects are approved, the report notes. Accumulated surplus as well as water capital, water reserve, grant funding and borrowing will be used to pay for the projects.
Total cost of both is $67.2 million, up from the original approved budget of $21.5 million.
The SPC will also hear a presentation from Wastewater Utility General Manager Jason Drenth on Bylaw 6494 which is an amendment to Bylaw 3999 – the Water Service Bylaw.
He will be recommending council give first reading to Bylaw 6494 which includes the addition of tiered water rates for regional customers and a new definition of “regional customers,” those being outside the legal boundary of the city.
The bylaw, if approved, will go into effect on Sept. 1. The tiered water rates are based on the service cost of providing water to regional customers with the change being made on a cost recovery basis.
The rates are set to provide revenue that balances the expenses of providing the water service including treatment, pumping and storage and other costs.
20-19
Wow a 300% increase in costs! Who did this estimate and what are the reasons for this increase? This gives me no confidence on the reliability of the revised estimate. Brings back memories of our Exhibition fiasco.