meeting i 7 jun o 3 ~3 - home - city of kingston · at the kingston central water treatment plant....

COUNCIL MEETING I 7 JUN o 3 ~3

REPORT TO MAYOR AND CITY COUNCIL UTILITIES KINGSTON

utilities kingston water sewer gas electricity networks all your utility services under one roof

1425445 ONTARIO LIMITED

ReDort UK22-03-C

Subject:

Date of Meeting:

From:

Prepared By:

Recommendation

Ministry of Environment Compliance Inspection Reports for Kingston West and Central Water Treatment Plants

June 3, 2003

J. Keech, President & CEO

J. Keech, President & CEO

It is recommended that Council receive this report regarding the Ministry of the Environment (MOE) Compliance Inspections of the City of Kingston’s Water Treatment Facilities and the response of Utilities Kingston

And Further

That Council receives the letter of the Deputy Minister of the Environment regarding the new Drinking Water System Regulation 170/03.

PurDose

The Ministry of the Environment’s Provincial Officer/lnspectors inspected the Kingston Central Water Treatment Plant on November 5 and 20, 2002 and the Kingston West Water Treatment Plant on January 14 -1 6,2003. The inspections assessed compliance with Ontario Regulation 459/00, Ontario Regulation 435/93, applicable Ministry approvals and permits, and conformance with industry best management practices.

Copies of the inspection reports have been provided to; staff of Utilities Kingston, the CAO of the City of Kingston, the KFL&A Health Unit, and the Cataraqui Conservation - Authority.

We have included copies of: rn

rn

rn

rn

Letter from the MOE to the President and C.E.O. of Utilities Kingston Covering letters for each Compliance Inspection Report Section 8.0 Summary of Inspection Findings, Regulatory Requirements and Best Practices A Response Letter from Utilities Kingston to the Ministry of Environment Letter from Doug Barnes, Assistant Deputy Minister of the MOE, to Heads of Council

4 7

COUNCIL MEETING 1 7 JUN 03 ’03 Report to Board of Directors 1425445 Ontario Limited

2003-05-05

The inspection of the Kingston West Water Treatment Plant resulted in orders being issued on 7 of the items identified in the “Inspection Findings”. Two of these required actions to be completed prior to April 7, 2003, with the remainder requiring action between May 1 and December 8, 2003. All required actions to date have been taken.

The attached letter to the President & C.E.O. of Utilities Kingston from Mr. Daniel White, Inspector/Provincial Officer, clearly indicates that these items do not create environmental or health concerns.

Also attached to this report is correspondence prepared by Mr. Kevin Riley, Manager Treatment Group, detailing the actions taken to date, and our plans to deal with the remaining required actions. Additionally, we have initiated plans for dealing with all 42 items identified in the Kingston West Water Treatment Plant, and all 29 items identified at the Kingston Central Water Treatment Plant. In addition, attached is a letter from Mr. Doug Barnes, Assistant Deputy Minister of the MOE regarding the new Drinking Water Regulation (Ontario Regulation 170/03). Staff at Utilities Kingston are reviewing this regulation in comparisons with other recent changes and are preparing to implement the plans.

Amendices:

Appendix A: Letter from MOE regarding Compliance Inspection - January 2003 for the Kingston West Water Treatment Plant

Appendix B: Letter from MOE regarding Compliance Inspection - November 2003 for the Kingston Central Water Treatment Plant

Appendix C: Section 8 - Summary of Inspection Findings Regulatory Requirements and Best Practices - Central WPP

Appendix D: Section 8 - Summary of Inspection Findings Regulatory Requirements and Best Practices - Kingston West WPP

Appendix E: Response Letter from Utilities Kingston to the MOE

Appendix F: Letter to Mr. Keech from Mr. Daniel White, Inspector/Provincial Officer

Appendix G: Letter from Mr. Doug Barnes, Ministry of the Environment

C:\Documents and Settings\cburrows\Local Settings\Temporary Internet Files\OLK3\UK-22-03-C MOE Compliance Inspection Reports for Kingston WEst Central WTPs.doc

4 8

COUNCIL MEETING 1 7 JUN 0 3 Report to Board of Directors 1425445 Ontario Limited

2003-05-05

Report U K-22-03

Utilities Kingston

Chief Administrative Officer

C:\Documents and Settings\cburrows\Local Settings\Temporary Internet Files\OLKS\UK-22-03-C MOE Compliance Inspection Reports for Kingston WEst Central WTPs.doc

w 4 9

COUNCIL MEETING 1 7 JUN 0 3 ’03 A p p e I1 c! I x .f% _ _ - -

Ministry of the Environment Ministere de I’ Environnement C.P. 820

Kingston, Ontario Kingston (Ontario) K7L 4x6 K7L 4x6 61 31549-4000 or 1 -8001267-0974 Fax: 61 31548-6908

61 31549-4000 ou 1-8001267-0974 Fax: 61 31548-6908

March 3 1 , 2003

Mr. Bert Meunier Chief Administrative Officer The Corporation of the City of Kingston 2 16 Ontario Street Kingston, ON K7L 223

Dear Mr. Meunier:

Re: Ministry of the Environment Compliance Inspection - January 2003 Kingston West Water Treatment Plant

The Kingston West Water Treatment Plant was inspected f’rom January 14 - 16,2003, by the undersigned Provincial Officer/Inspector, of the Kingston District Office. The inspection assessed compliance with Ontario Regulation 459/00, Ontario Regulation 43 5/93 , applicable Ministry approvals and permits, and conformance with industry best management practices. The inspection findings are also based on a physical examination of the facility, water distribution system components, field measurements, interviews with management and operating staff, a review of the WTP’s operational log, in-house operational records, and laboratory analytical results for the period September 1, 2001 to December 3 I, 2002, inclusive.

A copy of the inspection report has been enclosed for your review. A copy will also be sent to Mr. Jim Keech, President and Chief Executive Officer, Utilities Kingston, Mr. Kevin Riley, Manager, Treatment Group, Utilities Qngston, who is the designated Operator In Charge with overall responsibility for the water works, the Kingston, Frontenac and Lennox & Addington Health Unit, and the Cataraqui Region Conservation Authority.

Your attention is directed to Section 8.0 “Summary of Inspection Findings, Regulatory Requirements and Best Practices” and the subsections “Inspection Findings” and “Actions Required” of the report. Please provide an action plan by June 2,2003, complete with implementation dates, detailing how the municipality plans to address these issues.

1 50

COUNCIL MEETING 1 7 JU! 0 3 '03

- 2 -

Should you have any questions concerning the report, please do not hesitate to contact me at (613) 549-4000, extension 2667.

Yours truly, -

Daniel White Provincial Officerhnspector Drinking Water Inspection Program Kingston District Office/Eastern Region DK W/sh

Enclosure

C: Mr. Jim Keech, President & CEO, Utilities Kingston, 21 1 Counter Street, PO Box 790, Kingston, ON K7L 4x7

Mr. Kevin Riley, Manager, Treatment Group, Utilities Kingston, 21 1 Counter Street, PO Box 790, Kingston, ON K7L 4x7

Dr. Ian Gemmill, Medical Officer of Health, Kingston, Frontenac and Lennox & Addington Health Unit, 22 1 Portsmouth Avenue, Kingston, ON K7M 1 V5

Mr. Bill Warwick, General Manager, Cataraqui Region Conservation Authority, Box 160, 1641 Perth Road, Glenbwnie, ON KOH 1SO

51

COUNCIL MEETIN9 1 7 dUN 0 3 ’03 Appen i x

@ Ontario

March 3 1 , 2003

Ministry of t he Environment P.O. Box 820 Kingston, Ontario K 7 L 4x6 61 31549-4000 or I -8001267-0974 Fax: 61 31548-6908

Mr. Bert Meunier Chief Administrative Officer The Corporation of the City of Kingston 2 16 Ontario Street Kingston, ON K7L 223

Ministere d e I’Environnement C.P. 820 Kingston (Ontario) K 7 L 4x6 61 31549-4000 ou 1-8001267-0974 Fax: 61 31548-6908

. - . . . .... .” ”

Dear Mr. Meunier:

Re: Ministry of the Environment Compliance Inspection - November 2002 Kingston Central Water Treatment Plant

The Kingston Central Water Treatment Plant was inspected on November 5 and 20,2002, by Shannon Hamilton-Browne, Provincial Officer/Inspector, of the Kingston District Office, Shelly Yeudall, Provincial Officer/Inspector, of the Halton - Peel District Office and by the undersigned Provincial Officer/Inspector, of the Kingston District Office. The inspection assessed compliance with Ontario Regulation 45 9/00, Ontario Regulation 43 5/93, applicable Ministry approvals and permits, and conformance with industry best management practices. The inspection findings are also based on a physical examination of the facility, water distribution system components, field measurements, interviews with management and operating staff, a review of the WTP’ s operational log, in-house operational records, and laboratory analytical results for the period November 1, 200 1 to October 3 1,2002, inclusive.

A copy of the inspection report has been enclosed for your review. A copy will also be sent to Mr. Jim Keech, President and Chief Executive Officer, Utilities Kingston, Mr. Kevin Riley, Manager, Treatment Group, Utilities Kingston, who is the designated Operator In Charge with overall responsibility for the water works, the Kingston, Frontenac and Lennox & Addington Health Unit, and the Cataraqui Region Conservation Authority.

Your attention is directed to Section 8.0 “Summary of Inspection Findings, Regulatory Requirements and Best Practices” and the subsections “Inspection Findings” and “Actions Required” of the report. Please provide an action plan by June 2,2003, complete with implementation dates, detailing how the municipality plans to address these issues.

- 2 -

Should you have any questions concerning the report, please do not hesitate to contact me at (613) 549-4000, extension 2667.

Daniel White Provincial Offcer/Inspector Drinking Water Inspection Program Kingston District Offce/Eastern Region DKW/sh

Enclosure .. _ +

c: Mr. Jim Keech, President & CEO, Utilities Kingston, 21 1 Counter Street, PO Box 790, Kingston, ON K7L 4x7

Mr. Kevin Riley, Manager, Treatment Group, Utilities Kingston, 21 1 Counter Street, PO Box 790, Kingston, ON K7L 4x7

Dr. Ian Gemmill, Medical Officer of Health, Kingston, Frontenac and Lennox & Addington Health Unit, 22 1 Portsmouth Avenue, Kingston, ON K7M 1 V5

Mr. Bill Warwick, General Manager, Cataraqui Region Conservation Authority, Box 160, 1641 Perth Road, Glenburnie, ON KOH 1 SO

Appendix C

SECTION 8:

I

SUMMARY OF INSPECTION FINDINGS REGULATORY REQUIREMENTS AND BEST PRACTICES

Central WPP

BPECTION FINDINGS

Item

5.

6

Finding

Utilities Kingston presently does not record or report the daily maximum peak instantaneous raw water flow in Llmin; therefore, compliance with the maximum allowable instantaneous taking of 82,000 Llmin could not be evaluated.

Figures provided by Utilities Kingston for 2001 and 2002 indicate that the portion of the treated water that is un-metered or unaccounted for is approximately 38%. Best management practices suggest unaccounted for water should be no more than 15%.

The City of Kingston has not developed a formal source protection plan for the raw water source supplying the Kingston Central WTP.

A number of operators were contacted and interviewed during the inspection to determine their awareness of the CT required at the WTP and the operation of the disinfection system. All operators contacted stated that they are aware of the CT required at the WTP and that it is used in the process calculations, for the disinfection process, to determine the NaOCl dosage required to meet the target residual to meet the required CT. The same operators could not provide the actual figure for the required CT at the WTP.

During the inspection , it was determined that the high level alarm for the fluoride analyzer was set to 1.5 mglL.

Order Issued

No

No

No

No

No

Page 1 of 18

CQUNChL &EJZ€€NG 1 7 JUN 0 3 ’03

tern __

10.

Findina

Jn evaluation of the data indicates that the backwash water effluent :ontains average concentrations of 3.69 mg/L for aluminum, 4.7 mg/L or BOD5, 11 2 mg/L for suspended solids and has an average pH of ‘.82.

The discharge of untreated backwash water effluent having elevated duminum concentrations significantly above the provincial water iuality objective of 75 @g/L (based on pH > 6.5 to 9.0) and an average suspended solids concentration of 11 2 mglL may result in ?nvironmental impairment of the waters of Lake Ontario.

The City of Kingston is presently conducting a Class Environmental 4ssessment for the Collingwood Street Com bined Sewer Overflow :‘‘CSO”) and Water Treatment Plant Waste Management Project. This xoject will address the handling and treatment of process wastewater Tom the WTP. The preferred option will likely involve discharge of settled solids to a CSONVTP residual tank to be located south of King Street between the intersections of King and Beverly Streets and King and Collingwood Streets and the discharge to treated backwash supernatant to Lake Ontario. The project is expected to be completed by the fourth quarter 2003.

The contingency plan does not contain:

1.

2.

3.

4.

a procedure to address extended absences of the Operator- In-Charge with overall responsibility for the operation of the Kingston Central WTP; a procedure to identify’the need to notify the Director (Ministry of the Environment, Human Resources, Training & certification) in the event the Operator-ln-Charge with overall responsibility for the operation of the Kingston Central WTP is absent and unable to fulfill hislher responsibilities for a period of 60 days or more in any calendar year; a list of key equipment, suppliers or contractors, including contact information, that may be available to assist in the event of an emergency or upset condition at the WTP; and, procedures for the operation of standby diesel pumps and power generators for the purposes of testing these units under load conditions.

Order Issued 4

A No 1

-

An Emergency Response Plan (ERP) specific to the WTP has not been prepared, posted in a prominent location in the WTP and included with the contingency Plan. The City of Kingston, following the 1 ice storm of 1998, began drafting a city-wide emergency plan and incorporates the three water treatment and distribution systems serving the City. This plan currently exists in draft form.

~

No

I I

The contingency plan did not contain an SOP for training staff in the contingency procedures or schedules for periodic testing of the contingency procedures and ERP. A review of the training records for ooerations staff did not identifv that the operating staff have been

1 No

trained in the whereabouts a i d content of the contingency procedures. 1

COUNCIL MEETING 1 7 JUM 0 ’T 03

nstructions for, or emphasize the importance of gradually increasing Filtration rates immediately following a backwash cycle to minimize Dost-backwash turbidity spikes, and instructions for operating ?emaining filters at reduced flow rates when a filter is backwashed.

Item

11

12.

13.

14.

I ~ 15.

I 16.

Finding 1 Order Issued

-he Kingston Central WTP Operations Manual identifies duties and esponsibilities of operators; however, the responsibilities and unctions of other key Utilities Kingston staff and personnel, including he CEO, Treatment Group Manager, Foreperson, and Quality Assurance Operators, are not contained in the manual.

No

The Kingston Central WTP Operations Manual does not contain plans )r a schematic drawing of the WTP or include a sampling plan for the NTP and WDS. A sampling plan has been prepared for the WTP and NDS.

The overflow pipe on the Milton Water Tower is not screened. ~

No

No

No

As a result of the November 2001 inspection of the City Centre Water Tower, Mulders Inspection Services Co. Ltd. (MISCO) suggested the Owner install motion sensors at the bottom of stairs, located on the center riser of the water tower, to discourage potential trespassers from gaining access to the top of the water tower. MISCO identified that this is a typical practice of owners of this type of structure.

No

The perimeter fencing, located on the south side of the WTP, surrounding the area covering the mixing-flocculation and settling tanks and access hatches to the tanks, has not been posted with “No Trespassing” signs or signs warning of unauthorized entry.

No

Page 3 of 18

tern

7 .

18.

19.

20.

21.

Finding

The entire property of the Kingston Central WTP is not protected by a 1.8 m security fence, complete with locking access gates and barbed wire, to prevent the unauthorized entry to the WTP. The WTP is located adjacent to park lands, and is located on the waterfront within a mature, upscale neighbourhood. The immediate land around the WTP is also used for recreation purposes. The City of Kingston has expressed a willingness to install security fencing around the WTP; however, faced significant public opposition to do so, particularly from eighbours.

,ccess to the clearwell either through hatches or vent pipes is not ecured within a fenced area. The inspection found that one vent pipe ad not been maintained, allowing direct access and a route of ontamination to the clearwell.

ltilities Kingston identified that the point representing maximum xidence time in the central and east WDS as 21 I Counter St. The ssidence times within the WDS are based on the flow rate, pipe size, ydraulics and other design factors. It has been determined that the VDS residence time at 21 1 Counter St. (Service Centre) is lpproximately 24 hours. The MOE had originally set up sampling at l e service center as the WDS sampling station for the DWSP rogram and Utilities Kingston has continued the practice. The esidence time to the north end and the most easterly portion of the YDS has been estimated to be similar as a result of the WDS design.

Jtilities Kingston or the City of Kingston has not prepared formal, locumented standards including SOPS for the repair or replacement of roken mains and installation of new mains, as well as, the standard letails and specifications for pipelines and materials used in the :onstruction of new water mains. Such standards are not readily 3vailable to Underground Infrastructure Department personnel and lontractors.

3isinfection of new water mains is normally supervised by the Utilities (ingston Engineering Department. The actual disinfection of the new Nater mains is carried out by contractors or consultants involved in the mgineering and construction of new subdivisions. The Utilities {ingston Engineering Department reported that chlorinated water from ;he disinfection of new water mains may not be consistently 3echlorinated prior to discharge. As a result, highly chlorinated water discharges may at times be directed to ditches without dechlorination.

On July 22, 2002, a sample of water collected from the WDS, at the Petropass location on Dalton Avenue, was analyzed and total coliform was detected. Corrective action including resampling was undertaken; however, the records maintained by Utilities Kingston suggest that a site, at an adjacent location on the same distribution line as the Petropass, was not sampled during the two successive resampling events following the detection of total coliform. Furthermore, the second of the two successive resampling events appears not to have included the affected site (i.e., the Reports of Analysis do not identify the “Petropass” as a sampling location on the July 24, 2002 resample results).

I Order Issued ’

No

No

No

No

No

Item

Jtilities Kingston, including training records for the 2001 and 2002 :alendar years. This summary contained information on training for ten

22.

Drovided with only 39 hours of training during the calendar year 2001. Furthermore, the records indicated that, as of November 5, 2002, Rick Donaldson, WT 4, No. 226, Lynn McLeod, Dave Pettie, WT 3 No. 1749, and Randy Whan, WT 4 No. 3916 had not yet been provided

23.

,

24.

25.

26.

27

28.

~

Finding I Order Issued

Zopies of O.R. 459/00, the ODWS, CofAs and the PTTW issued to the [ingston Central WTP are maintained at the WTP. However, the iontrol documents have not been incorporated into the Operations Aanual for the facility.

No

-he operating staff at the WTP were not clearly aware of the identity of he OIC with overall responsibility for the operation of the WTP. Iurthermore, it was noted that the WTP's Operations Manual does not fefine roles and responsibilities of the management and operating itaff for the WTP and WDS.

No

lperators-assigned to the Kingston Central WTP. The summary did lot include information on training provided to:

1. the OIC with overall responsibility for the operation of the W and WDS;

2. management staff who also hold valid licences for the operation of the WTP and WDS;

3. the Underground Infrastructure Group WDS operators; and, 4. all operators for the period covering November 1, 2001 to

October 31, 2002.

'P

A review of the training records for the operating staff did not identify that staff had received specific training in the Contingency Plan and procedures.

No

During the inspection, the WTP and the James Street Booster Station were undergoing a significant retrofit to provide SCADA monitoring and control, including alarms, the installation of on-line analyzers, installation new flow meters and associated wiring.

No

A CofA (Air) exists for the standby diesel engine serving high lift pump No. 5 only. No CofA (Air) could be located for the two electric-diesel LLPs, the diesel powered HLPs, the 634 kW standby diesel generator located at the WTP, the 270 kW standby diesel generator at the James St. Booster Station and the diesel standby pump serving the City Centre (Third Ave.) Reservoir.

No

Page 5 of 18

.?

COUNCIL MEETING 1 7 JUN 0 3 41)

-

29

Item -

Finding

The quarterly reports, prepared by Utilities Kingston for the purpose of providing information on the Kingston Central WTP, WDS and water quality to the users of the system and complying with Section 12. Of O.R. 459100, were reviewed for the last quarter in 2001 and the first three quarters in 2002. The review found the following:

1.

2.

3.

4.

5.

the reports do not include analytical data on the microbiological quality of the raw water source, in accordance with O.R. 459100 section 12. (1) (c); the reports did not include a section that clearly describes the measures taken to comply with O.R. 459100 and the ODWS; however, it has been noted the fourth quarter report for 2002 identifies measures taken to comply with O.R. 459100 and the ODWS; the reports do not include all analytical data for sampling and analyses conducted in the raw and treated water and the WDS for additional parameters not required by O.R. 459100 Section 7. and Schedule 2.; the table titled "ChemicallPhysical Parameters Non Health Related" contains analytical water quality results for benzo('d)pyrene, cyanide, dioxin and furan, fluoride, gross alpha scans, gross beta scans, nitrilotriacetic acid (NTA), N- nitrosodimethylamine (NDMA), sodium and tritium. All of these parameters are health-related parameters and have been assigned MACs or IMACs; and, the quarterly report, for the first quarter 2002, indicates that the operational guideline for aluminum is 100 mg/L, and that aluminum was present in the treated water at a maximum concentration of 50 mg1L. The results for aluminum appear to have been expressed improperly or incorrect concentration units have been used in the ChemicallPhysical Parameters Non Health Related table for aluminum. This error was corrected in subsequent quarterly reports.

Order Issued

No

I

" 59

ACTION REQUIRED

Action Required Item Required Compliance Date

I .

J t il it ies (ingston's 3esponse

2.

Utilities Kingston's Response

3.

'he City of Kingston and Utilities Kingston should record and eport the daily maximum peak instantaneous raw water flow in ./min, to enable an assessment of compliance with the naximum allowable instantaneous rate of taking of 82,000 L/min 'tipulated in Permit to Take Water 70-P-0067.

When calculated the instantaneous raw water flow of 82,000 'min equates to I l8,000m3/day which is allowed in the permit to ake Water #70-P00067. Historically peak flows have been worded in m3/day on a daily basis. As part of the SCADA ipgrade the automated recording have been matched to match he historical records with no change in units. A change at this ime is not in the scope of the project. Utilities will investigate laving the programming modified to record the peak flows in loth units.

The City of Kingston and Utilities Kingston should continue with heir water metering program, hydrant by-law enforcement irogram and leak detection program to lessen the unaccounted 'or portion of treated water, and work towards meeting the figure i f 15% unaccounted for water.

Unaccounted for water is a large concern for the City. We are surrently increasing our leak detection programs. Most of the City Central is already metered, plans are being made to ensure all water services are metered where possible. Internal use of water accounts for a portion of the unaccounted for water. Steps are being taken to work with other City Departments to account for the water they use and to report the water usage. Other sources of unaccounted for water is theft. Processes are being put in place to keep these activities in check such as enforcing the existing by-laws.

The Owner and its operating authority should develop a source protection plan for the WTP, beginning with the establishment of an inventory of potential sources of contamination of the raw water supply.

levelop an action )Ian to address the xt ion required, :omplete with mplementation Aates, and submit :o the inspector by June 2, 2003.

Action Date

On - going

Develop an action pian to address the action required, complete with implementation dates, and submit to the inspector by June 2, 2003.

Action Date

On going

Develop an action pian to address the action required, complete with implementation dates, and submit to the inspector by June 2,2003.

Page 7 of 18

,.

Item

Utilities Kingston’s Response

4.


Action Required

This issue is being reviewed. Identification of potential sources of contamination is underway and will continue. Work with other Ministries and conservation authorities will take place to develop such a plan. We will show some progress on this matter towards the end of 2003.

The Owner should apply to the Ministry’s Environmental Assessment and Approvals Branch to include the particle counters in the instrumentation description of the WTP’s CofA. An application should be made prior to an amended CofA being issued for the final upgrading requirements of Condition 5.1 of C Of A NO. 6508-59CQY9.

During the recent application to the Ministry of the Environment Assessment Branch the change was requested and approved and indicated in the recent C of A #3239-5L9LF9 which includes particle counters in the equipment description,

Required Compliance Date

Action Date

Progress by end of 2003

Develop an action plan to address the action required, complete with implementation dates, and submit to the inspector by June 2, 2003.

Action Date

Completed

61

COUNCIL MEETING 1 7 JUN 0 3 u3

Utilities Kingston’s

~ A disinfection strategy has been developed for the central WTP and includes procedures for determining target CT’s and target

Action Date

Item Action Required

The Owner and its operating authority should develop a comprehensive disinfection strategy for the Kingston Central WTP. This strategy should be documented in a SOP and included in the operations manual for the WTP. The strategy should take into account the findings contained in Section 2, Tables 2 & 3 of the “Utilities Kingston, Kingston Central Water Treatment Plant Clearwell Baffling Upgrade Design Report” for the interim operation fo the disinfection system until the upgrading has been completed and include:

1.

2.

3.

4.

the minimum C12 dosage and free CIz residual required in the WTP process, to ensure that the free CI2 in the clearwell is maintained, to meet the required post filtration 0.5-log reduction in Giardia, and the free CI2 throughout the WDS remains at or above 0.2 mg/L at all times; identification of the required alarm set points on the continuous free C12 analyzer (used to monitor free CIz residual concentration entering the distribution system) to ensure that the minimum free C12 residuals identified above are met; daily evaluation of actual CT to determine the actual operating CT based on pH, temperature and free Clz residual in the treated water entering the WDS or daily determination the free Clz residual concentration required to be maintained in the reservoirs to meet the minimum CT value needed to ensure that a 0.5-log reduction in Giardia (post filtration) is consistently achieved; and, daily recording of actual operating CT and the free C12 residual concentration required to be maintained in the reservoirs to meet the minimum CT value needed to ensure that a 0.5-log reduction in Giardia (post filtration) is consistently achieved.


3evelop an action )Ian to address the action required, :omplete with m plementation Aates, and submit io the inspector by June 2. 2003.

The strategylSOP should be re-evaluated and revised once the l upgrades, including the clearwell baffling, required by Condition 1 5.1 of C of A No. 6508-59CQY9 are in place.

I I

- - residuals, and to include a safety margin for unanticipated changes which may cause flucuations in actual CT’s achieved. The SOP has been established to ensure that a 0.5 log reduction of Giardia is achieved at all times. The procedure includes detailed instructions to calculate target CT’s and actual achieved CT’s, and to record those values daily. The SOP has been included in the Operations Manual and will be reviewed as the baffling project proceeds. ,All operations staff will be trained in the procedure prior to June 2003. The treated water free chlorine alarm set point was adjusted on April 3,2003 to ensure the new target residual is met.

Completed.

I Page 9 of 18

COUNClL MEETING 1 7 JUN U 3 W

Item

3.


7

Uti I i t ies Kingston’s Response

8.

Action Required

7 January 2002, the recommended operating range for fluoride 7 drinking water, where fluoridation is practiced, was revised lownward from 1 .O mglL +/- 0.2 mglL to 0.5 to 0.8 mg/L. ‘herefore, the high level alarm for fluoride entering the listribution system, from the James St. Booster Station, should le changed to alert operations staff of fluoride concentrations ibove 0.8 mglL.

‘he fluoride alarm set-point at the James Street booster station vas adjusted on April 15,2003 from 1.4 mg// to 0.08 mg/l to sflect the recommendated operating range as listed in updates o ODWS.

The City of Kingston should ensure that the Collingwood Street 2ombined Sewer Overflow (“CSO”) and Water Treatment Plant Naste Management Project proceeds to completion.

The Above mentioned projects are underway and are scheduled :o start in the fall of 2003 pending the appropriate approvals Yom the Ministry of Environment



Action Date

Completed


Action Date

Start fall 2003

The Owner and its operating authority should prepare contingency procedures

1. to address extended absences of the Operator-ln- Charge with overall responsibility for the operation of the Kingston Central WTP;

2. to identify the need to notify the Director (Ministry of the Environment, Human Resources, Training & certification) in the event the Operator-ln-Charge with overall responsibility for the operation of the Kingston Central WTP is absent and unable to fulfill hislher responsibilities for a period of 60 days or more in any calendar year;

3. for the operation of standby diesel pumps and power generators for the purposes of testing these units under load conditions; and,

incorporate the procedures, and a list of key equipment suppliers and contractors, including contact information, into the contingency plan for the WTP.

Develop an action plan to address the action required, complete with implementation dates, and submit to the inspector by June 2,2003.

Item

Utilities Yingston’s Response

3.


10.

Uti I it ies Kingston’s Response

11.

Action Required

2ontingency plans for the absence of OIT in overall responsible :harge are being put in place. These plans will include the )roper notification of MOE Staff. Procedures for operating stand i y diesel pumps and generation already exist and are in place. Jtilities will review the standby procedures to ensure they are :oncise and up to date.

The Owner and its operating authority should finalize the city- Nide emergency plan, include a copy of the plan in the WTP’s :ontingency plan and post a copy of the emergency plan in a irominent location at the WTP. Alternatively, the Owner and its iperating authority should develop an ERP specific to the three Mater treatment and distribution systems serving the City, nclude a copy of the ERP in the WTP’s contingency plan and iost a copy of the ERP in a prominent location at the WTP.

These plans are being developed. The ERP’s for the wafer Aants should be in place by the fall of 2003 and will be located 3t the water facilities. When the utility Emergency plan is in place ‘t will be distributed throughout the Treatment Group as well as !he rest of the Utility. This plan will be part of the overall City wide Emergency plan.

The Owner and its operating authority should ensure that all Dperating staff are trained in the location(s) and content of all contingency procedures and the training has been documented in accordance with Section 17. (3) of O.R. 435193. Furthermore, an SOP should be developed concerning the training of operational staff in the contingency procedures and the periodic testing of the procedures. The SOP should include a schedule For the testing of the contingency procedures and the schedule should be followed. Finally, documentation of tests should be maintained, including the results of the test and a debriefing.

A SOP is currently being developed to ensure all staff receive training in Contingency plan procedures, and that documentation of training and testing is maintained. As well, a schedule will be developed for the periodic testing of these procedures.

The Owner and its operating authority should revise the operations manual for the Kingston Central WTP to define and identify the roles and responsibilities for all management and operating staff for the Kingston Central WTP.

Required Comdiance Date

Action Date

July 2003

~ ~~

levelop an action ilan to address the action required, :omplete with mplementation jates, and submit :o the inspector by June 2, 2003.

Action Date

End of 2003


Action Date

On going


Page 11 of 18

6 4

Action Required


1 Required 1 I Compliance Date i

I 12.

The current job descriptions for operating staff and management positions are being inserted into the plants operating manual and will clearly identify roles and responsibilities .

Action Date ~

Aug2003 1

The sampling plan that has been developed for the WTP should be inserted into the Operations Manual. Plans, including a site plant for the WTP and WDS, and a schematic diagram of the WTP should be inserted into the Operations Manual.


-1

I Utilities Kingston’s 1 Response

The sampling site plan has been inserted into the facility Operating Manual.

Action Completed Date ~

13. The procedure for filter operation should be revised to include: 1. the operating criteria, to be used by operations staff, to

determine when a filter requires backwashing, such as, rise in filter effluent turbidity, head loss or duration of filter run;

2. instructions for, or emphasize the importance of, gradually increasing filtration rates immediately following a backwash cycle, ,to minimize post-backwash turbidity spikes; and,

3. instructions for operating remaining filters at reduced flow rates when a filter is backwashed.



The revised procedures have been inserted into the facility Operation and Maintenance Manual.

Action Date

Completed May 7 2003 I

14. The Owner and its operating should ensure that clearwell and reservoir vent pipes are routinely inspected for integrity and to ensure screening remains intact. All water towers should be inspected to ensure that overflow pipes are screened. Screening should be installed where it is not yet in place.


~ Utilities 1 Kingston’s

Response

The inspection of Clearwell and reservoir vents pipes has been added to the monthly inspection lists. A review of the protective screening is underway and any necessary repairs will be made.

Action Date i End of July 2003 I

Item

15.

Jtilities (ingston’s 3es po nse

16.

Uti lit ies Kingston’s Response

17


18.

Action Required

~~~~~

-he Owner and its operating authority should proceed with AlSCO’s suggestion to further limit access to top of the City :entre Water Tower by installing motion sensors at the base of he stairway, located on the center riser of the water tower.

ltilities Kingston is looking for alternate ways of limiting access o the ladder at the central water tower. Motion detectors can lose other problems that we will have to review. Utilities (ingston intends to secure the site in question by the use of 3ppropriate fencing.

The Owner and its operating authority should post the perimeter ence with “No Trespassing” signs in accordance with the Trespass to Property Act”.

The signage issue is being addressed by the Utility as a whole. We are increasing the signage around our facilities in particular 70 trespassing signs.

The City of Kingston should reconsider fencing the perimeter of [he WTP property with a security fence, or as a compromise, fence a smaller foot print in the immediate area of the clearwell access hatches and vent pipes.

The issue of installing parimeter fencing around the Central Water plant will be a controversial subject. We are looking at that option when the backwash project starts. We will also be exploring other ways of providing the necessary security and still maintaining public access which is important to the residence in that area.

The Owner and its operating authority should, for comparative purposes, sample an area in the northern and easterly extremities of the WDS for THMs and lead (Pb). Potential locations in the northern and easterly extremities of the WDS, that may also represent points having maximum residence time, might include a location off the western portion of Dalton Avenue and within the Milton subdivision.


Develop an action plan to address the action required, com plete with implementation dates, and submit to the inspector by June 2,2003.

Action Date

End of Aug 2003

Develop an action plan to address the action required, complete with implementation dates, and submit +D the inspector by lune 2, 2003.

Action Date

End of Aug 2003

levelop an action )Ian to address the action required, :omplete with mplementation jates, and submit :o the inspector by June 2, 2003.

Action Date

On going


Page 13 of 18 -8

Item


19.

Uti I it ies Kingston’s Response

20.

Action Required

ltilities Kingston is currently investigating additional sampling loints in the WDS for chemical testing as well as routine iacteriological sampling. We anticipate having these sample xations operational by October of this year. With the Utilities Cingston wafer model project that is currently under way we tope to identify residence times within the WDS. When this is *ompleted we will be able to re-evaluate the sampling schedule vhen the information becomes available. Additional sampling for .ead and THM’s will be conducted in the Milton subdivision and 9 the industrial part on west Dalton Ave as part of June :ampling.

Jtilities Kingston and the City of Kingston should prepare formal, locumented standards, including SOPs for the repair or eplacement of broken water mains and the installation of new vater mains. The standards and SOPs should include details and specifications for pipelines and material used in the :onstruction of new watermains. The SOPs should be based on 4NSIIAWWA C651-99, C652-02 and C653-97. The SOPs may ;imply document that the aforementioned standards have been 3dopted, shall be followed and include a copy of the standards. The SOPs, including the standards should be made readily available to the Underground infrastructure Department iersonnel and contractors.

This issue has been addressed by the underground deprfment. The SOP’S are located at 21 I counter Street and are accessible by the underground crews.

~~~~ ~~

The City of Kingston and Utilities Kingston must ensure that any chlorinated water used in the disinfection of repaired or new water mains, as well as, chlorinated water discharged as the result of flow testing or flushing fire hydrants is not directed to a storm sewer, drain, ditch or any other location that may allow the discharge to enter a watercourse without prior dechlorination.

The City of Kingston and Utilities Kingston should ensure that its contractors and consultants are aware of the prohibitions under the Ontario Wafer Resources Act, Section 30. (1 ), Environmental Protection Act, Section 14. (I), and the Federal Fisheries Act, Section 36. (3), and ensure that proper dechlorination methods are used when disposing or discharging chlorinated water.


Action Date

Oct 2003

Develop an action plan to address the action required, com plete with implementation dates, and submit to the inspector by June 2, 2003.

Action Date

Completed April 2003


6 7

Uti I i t ies Kingston’s !esponse

Jtilities Kingston is taking steps to ensure that excessively :hlorinated water resulting from the discharge from new or

!I.

Compliance Date

Action Date

Uti I i ti es Kingston’s Response

:hlorinated water being discharged via fire hydrant flushing.

Contractors and developers will be issued advisories regarding he discharge of chlorinated water to the environment as per The Ontario Water resources Act and Environmental Protection Act.

-he Owner and its operating authority must ensure that when aking the corrective action required by O.R. 459/00 s. 9. (b), and vhen adverse water indicators 1 ., 2. 4., 5., and 6. of Schedule 6, :ontained in O.R. 459/00 are detected, that resampling consists i f two consecutive sets of three (3) samples including:

1. one sample collected at the affected site; 2. a second sample collected at an adjacent location on the

same distribution line; and, 3. a third sample collected some distance upstream on a

feeder line toward the water source.

The chlorine residual and the time of sampling for each site should also be noted at each sampling location.

The Owner and its operating authority should revise its :ontingency procedure for notification of the local Medical Officer 3f Health and the Ministry of the Environment to include details :oncerning the appropriate corrective action required when adverse indicators are detected, including instructions for resampling, as contained in Sections 4.2.2.1 and 4.3.2 of the Ontario Drinking Water Standards.

In accordance with Condition 3.4 of CofA No. 6508-59CQY9, the Owner and its operating authority should train all operating staff in the revised contingency procedure, for the notification of the local Medical Officer of Health and the Ministry of the Environment, to ensure that all operating staff are aware of the appropriate resampling requirements. This training should be documented in accordance with s. 17. (3) of O.R. 435/93.

The SOP for corrective action was revised on April 24,2003 to include a definition of re sampling and a list and description of the adverse water quality re-sampling notification procedures. All staff will receive training in addition to the SOP changes by the end of July 2003.

On going

Develop an action 3lan to address the action required, complete with implementation dates, and submit to the inspector by June 2, 2003.

Action Date

End of July 2003

Page 15 of_ 18

Item

!2.

Jtilities Gngston's qesponse

23.


24.


Action Required

The Owner and its operating authority should incorporate copies i f O.R. 459/00, the ODWS, CofAs and the PTTW issued to the (ingston Central WTP into the Operations Manual for the facility.

The above mentioned documentation of the Ontario Reg 459 snd C of A for the Facility have been inserted into the Operation snd Maintenance Manual. When the New Safe Water Drinking 4ct comes into being it will replace Reg 459.

The Owner and its operating authority should ensure that:

$ the identity of the OIC with overall responsibility of the Kingston Central WTP is clearly communicated to all operating staff;

all operating staff are aware of their roles and responsibilities; and,

the operations manual for the Kingston Central WTP defines and identjfies the roles and responsibilities for all management and operating staff for the Kingston Central WTP and WDS, including the identity and responsibility of the OIC with overall responsibility for the operation of the WTP and WDS.

$

$

~~~~

Utilities Kingston will have the documentation placed into the operation manuals indicating who is OIC with overall responsibility and what the roles and responsibilities are of both management and staff

The Owner and its operating authority shall ensure that all future requests for training records, for licenced operators responsible for the operation and maintenance of the Kingston Central WTP and WDS, include records for all licenced operators, including:

1. the OIC with overall responsibility for the operation of the WTP and WDS;

2. management staff who also hold valid licences for the operation of the WTP and WDS; and.

3. the Underground Infrastructure Group WDS operators.

Provisions are being made to ensure that all training records for licenced operators for WTP and WDS being management and



Action Date



Action Date

End of Sept 2003


Action Date

staff are located in a central location and made available upon request by MOE inspectors. 1 End of July 2003

6

COUNCIL MEETING 1 7 JUN 0 3 ’LJd

Item

!5

Jtilities (ingston’s 3esponse

26.


27.


28.

Action Required

~ ~ ~ ~ ~~~~

The Owner and its operating authority shall ensure that all licenced operators, responsible for the operation of the Kingston Central WTP and WDS, are provided with a minimum of 40 hours of training each calendar year. The Owner and its operating authority should ensure that training records are kept as current as possible.

Each operator will be scheduled for at least 40 hours of training. This training is being logged. The training will continue for the remainder of 2003.

The Owner and its operating authority should periodically review the contingency procedures with the operations staff and document the review in accordance with O.R. 435/93 s. 17. (3). The subject of the training should be clearly identified when documenting staff training in contingency plans.

~ ~ ~ ~ ~~ ~ ~

4s part of the training procedures a regular review of fhe :ontingencies will be completed. Documentation of this review Nil1 be prepared and will clearly identify what training took place snd who took the training.

The Owner and its operating authority should ensure that upon zompletion of the SCADA retrofit, a Process and Instrumentation Diagram for the entire water treatment plant is prepared and kepi up-to-date, in accordance with Condition 3.1 2 of CofA No. 6508- 59CQY9.

This issue is being addressed as part of the on going work at the central water plant. The documentation will be in place by late summer 2003.

The Owner and its operating authority should ensure that any future alterations made to the diesel powered equipment, replacement of the equipment, or addition of new equipment does not take place without first applying for approval and obtaining a CofA (Air).


levelop an action ,Ian to address the action required, :omplete with mplementation dates, and submit io the inspector by June 2, 2003.

Action Date

End of 2003


Action Date

On going


Action Date

Late summer 2003


Page 17 of 18

Item

Uti1 it ies Kingston’s Response

29.


Action Required

The Utility will ensure that C of A’s for air are applied for prior to any retrofits of the diesels at the Central Water Plant.

The Owner and its operating authority should include all results of water quality monitoring in the quarterly reports, including results of microbiological sampling of the raw water, and all results from chemicallphysical sampling for the raw, treated and distribution system water in future quarterly reports.

The inclusion of analytical results for the health related parameters benzo(V)pyrene, cyanide, dioxin and furan, fluoride, gross alpha scans, gross beta scans, nitrilotriacetic acid (NTA), N-nitrosodimethylamine (NDMA), sodium and tritium in a table bearing the terms “Non Health Related” is incorrect and may be misleading to the public. The Owner and its operating authority should ensure that these parameters are included in future quarterly reports in a table that indicates the parameters are health-related.

The additional parameters have been added to the quarterly reports, and the Heading Change mentioned above has been made.


Action Date

On going


Action Date


7

Appendix D

SECTION 8: SUMMARY OF INSPECTION FINDINGS REGULATORY REQUIREMENTS AND BEST PRACTICES

Kingston West WPP

Finding

INSPECTION FINDINGS

Order Issued Item

3 .

4.

5.

6.

The present method of collecting raw water samples containing :hlorine does not meet the requirements of O.R. 459/00, s. 7 (1) (a) and condition 2.1 clauses (f) and (9) of C of A No. 6451-59FQKK. i a w water samples should be free of chlorine at the time of :ollection and submission for analysis of microbiological parameters. ’resently, the analytical results of raw water samples for the (ingston West WTP should not be considered as being ‘epresentative of “true raw water” microbiological quality.

The raw water sample tap is presently equipped with a PVC or similar type plastic hose for collecting raw water. The interior surface i f the hose appeared dirty and the hose showed signs of jegradation. PVC or other plastic hoses are not suitable for the :ollection of drinking water samples, including raw water samples, since they harbour bacteria and may leach unwanted organic :ompounds into the raw water sample.

The operating records found that the free C12 residual concentration n the treated water entering the WDS (leaving the on-site ?eservoirs) was not consistently maintained at or above 1 .O mglL, thereby, ensuring that adequate CT is maintained and a 1 -0-log reduction in Giardia is consistently achieved.

A review of the operating records found that the free C12 residual concentration in the WDS was not consistently maintained at or above 0.2 mg/L as recommended in Section 2.2 b. of procedure B13-3 Chlorination of Potable water Supplies in Ontario.

A review of C12 dosage records found that between July 24, 2002 and December 31, 2002, neither the post or the total C12 dosage met the minimum C12 dose of 3.5 mg/L required by Condition 5.6 (ii)

A review of the SOP “Chlorine Alarms”, free C12 residual concentrations in the treated water entering the distribution system and free C12 residual concentrations in the WDS indicates that the alarm set points on the continuous monitoring C12 analyzer (treated water) have not been adjusted in accordance with Condition 5.6 (iii)

of COfA NO. 6451 -59FQKK.

of COfA NO. 6451 -59FQKK.

Yes

Yes

Yes

Yes

Yes

Yes

7 2 Page 1 o_f 21

Item

IO.

11.

12.

Finding

deither of the operating staff present throughout the inspection could ctentify the CT values for the Kingston West WTP. One of the staff ctentified that the disinfection system was operated to maintain a arget free CIn residual concentration of 1 .O in the treated water mtering the WDS to ensure that adequate CT and 1 .O-log Giardia nactivation was provided; while, the other staff member identified hat they understood the free CIz residual to be targeted in the reated water entering the WDS to be 0.8 mg/L. In addition, it was dentified during the inspection that a spreadsheet had been ieveloped for the purpose of determining the free Cln residual :oncentration required to achieve the minimum required CT. iowever, the spreadsheet was only available to the Quality jssurance Operators and not the duty OIC.

4 formal calibration record is not maintained for each of the on-line :hlorine analyzers to document: a comparison of the analyzer output o the output from a bench top analyzer (used to cross check the on- ine unit); electrical adjustment that may be required, and a reason 'or calibration such as cell contaminationlage and instrument drift.

The manufacturer's manual for the continuous residual CIz analyzer .sed to monitor free Cln in the treated water entering the distribution system recommends that cross checking be performed with an amperometric titrator and not the DPD colorimetric method, since :he DPD colorimetric method is subject to a number of interferences, and therefore, is not reliable for checking calibration. The Kingston Uest WTP operating staff report that a hand held HACH colorimeter is used to cross check the continuous on-line analyzer output. The HACH hand held colorimeter uses the DPD colorimetric method. Therefore, the current method of cross checking the output of the continuous on-line free CIz analyzer does not follow the instrument manufacturer's recommendations.

A review of the PAC1 dosages applied to the WTP's coagulation- flocculation process found that the quantity of PAC1 added to the process remained consistent at 1.287 kg/d (equivalent to dosages ranging from 0.042 mglL to 0.061 mg/L) for a one year period despite changes in raw water turbidity. Filter effluent and treated water turbidity from the Kingston West WTP was found to be highest during periods of lowest raw water turbidity.

The PAC1 metering pumps are not routinely calibrated to establish feed rate in mllmin based on YO stroke to allow the correct stroke setting for a given desired chemical dosage. A calibration curve posted on the PAC1 room door was dated June 1996, suggesting the last time the metering pumps were calibrated.

A study conducted by Utilities Kingston to optimize coagulant dosaae at the WTP has identified that the present chemical metering

Order Issued

Yes

No

No

No

No

No

pumps are not capable of feeding at the rates needed to provide the optimum dosage of the coagulant (PACI) at maximum daily design flow. 1

I I

* 73

item Finding

13.

14.

Order issued

15.

16.

17

18.

19.

-he outdoor above ground storage tank (“AGST”) for diesel fuel xated at the IPR has no secondary containment. the filler pipe for his AGST is not equipped with a locking cap.

-he general condition of the UGST used to store bulk diesel fuel at he Kingston West WTP site was not revealed during the inspection. t could not be determined whether this UGST was double walled, :athodically protected or whether the UGST was recently inspected and tested for cathodic protection.

4n SOP titled, “Adverse Water Quality Procedure” has been ncorporated into the Operations manual for the WTP. The SOP is xief on instruction, references notification and corrective action ,equirements in the event of adverse water conditions, MAC or MAC exceedences, and includes a copy of O.R. 459100 Schedule 6. The SOP lacks detail concerning resampling in accordance with the 3DWS Section 4.2. Microbiological Organisms, subsection 4.2.2.1 ?esampling and Section 4.3 Chemical and Physical Parameters, subsection 4.3.2 Assessment and Corrective Action.

Zontingency procedures have been prepared for all major unit xocesses in the WTP except for the coagulation-flocculation 3rocess. The coagulation-flocculation process is a key barrier to 30th microbial and chemical contamination in treated water.

No

No

No

No

The contingency plan section of the Operations Manual does not 2ontain a list of key equipment, suppliers or contractors, including :ontact information, that may be available to assist in the event of an emergency or upset condition at the WTP.

No

Contingency procedures have not been prepared to address:

1. The reporting, control and clean-up of a spill of chemicals or diesel fuel within the WTP that may have the potential to impact treated water quality;

2. A spill upstream or in the vicinity of the raw water intake that may impact raw water and ultimately treated water quality; and,

3. Extended absences of the OIC with overall responsibility for the operation of the WTP and WDS, including notification of the Director, Ministry of the Environment, Human Resources, Training & Certification in the event the OIC with overall responsibility is absent and unable to fulfill hidher responsibilities for a period of 60 days or more in any calendar year.

No

74 Page 3 of 2 1

Item

0.

1

‘2.

13.

!4.

E.

26.

27

28.

Finding

in Emergency Response Plan (ERP) specific to the WTP has not leen prepared, posted in a prominent location in the WTP and icluded with the Contingency Plan.

‘he contingency plan did not contain an SOP for training staff in the :ontingency procedures or schedules for periodic testing of the .ontingency procedures and ERP. A review of the training records 3r operations staff did not identify that the operating staff have been ?ained in the whereabouts and content of the contingency rocedures.

-he Kingston West WTP Operations Manual does not contain plans )r a schematic drawing of the WTP or include a sampling plan for he WTP and WDS.

-he SOPs do not contain criteria to be used by operations staff to letermine when a filter requires backwashing, such as rise in filter ?ffluent turbidity, head loss and filter run length (time interval). The )perating staff reported during the inspection that filters are )ackwashed when the head loss either reaches 1.8 m (6 ft.) of vater column, or when filter runs reach 48 hours.

The SOPs do not include instructions for, or emphasize the mportance of gradually increasing filtration rates immediately ‘ollowing a backwash cycle to minimize post-backwash turbidity spikes, and operating remaining filters at reduced flow rate when a I ter is backwashed.

The elevated storage tank security fence is posted with only one “No Trespassing” sign. This sign is located on the south access gate.

The screens on the air vents located on the older two-celled on-site ’eservoir have deteriorated and the screen on the most northwestern dent has been compromised. The opening size of the screening used on the vents of the older reservoir is large enough to allow insects such as flies and mosquitoes to enter the reservoir.

The raw water, filter effluent and treated water flow measuring devices were calibrated on November 16, 2001 and last calibrated on December 9 & IO, 2002. The interval between the 2001 and 2002 calibrations exceeded the annual requirement stipulated in Condition 2.1 (b) of C of A Number. 6451-59FQKK by 23 days.

A formal calibration record is not maintained for each continuous monitoring turbidimeters to document: the analyzer output; a comparison to the output from a bench top analyzer or turbidimeter used to cross check the on-line unit; electrical adjustment that may be required, and a reason for calibration such as cell contaminationlage, instrument drift and cleaning.

Order Issued

No

No

No

No

No

No

No

Yes

No

I Item

30,

11

32

33.

34.

35.

Finding

Jtilities Kingston or the City of Kingston has not prepared formal, documented standards including SOPS for the repair or replacement Df broken mains and installation of new mains, as well as, the standard details and specifications for pipelines and materials used

the construction of new water mains. Such standards are not ?eadily available to Underground Infrastructure Department personnel and contractors.

The Utilities Kingston Engineering Department reported that chlorinated water from the disinfection of new water mains may not be consistently dechlorinated prior to discharge. As a result, highly chlorinated water discharges may at times be directed to ditches Nithout dechlorination.

The City has established a card-lock type water filling station in the Creekford Road area to allow bulk users of water, such as water haulers, mobile wash trucks and other commercial users, to fill tanks. Operating staff were uncertain whether commercial pesticides applicators fill water tanks at this location.

Utilities Kingston has prepared a procedure for responding to customer complaints; however, this procedure was not contained in the Kingston West WTP Operations Manual in accordance with Condition 3.9 of CofA No. 6451-59FQKK.

The operating staff at the WTP were not clearly aware of the identity of the OIC with overall responsibility for the operation of the WTP. The WTP’s Operations Manual does not define roles and responsibilities of the management and operating staff for the WTP and WDS.

A summary of operator training was provided by Utilities Kingston for the calendar year 2002. This summary contained information on training for ten operators assigned to the Kingston West WTP. The summary did not include information on training provided to:

1. the OIC with overall responsibility for the operation of the WTP and WDS;

2. management staff who also hold valid licences for the operation of the WTP and WDS;

3. the Underground Infrastructure Group WDS operators; and, 4. all operators for the period covering September 1, 2001 to

December 31, 2001.

O.R. 435/93 s. 17. (1) requires the Owner of a facility to ensure that every operator employed in the facility is given at least forty (40) hours of training every year. According to training records provided by Utilities Kingston, Heather Cumpson, WT 3 No. 2067 was provided with only 38.5 hours of training during the calendar year 2002.

Order Issued

No

No

No

No

No

No

No

Page 5 of 21 76

Item

)6.

37.

38.

39.

40.

Finding

‘erbal confirmation was provided by the OIC that operating staff are -ained in the emergency and contingency procedures for the WTP. \ review of training records found that the records for three iperational staff included the description “Training with Heather hmpson @ west WTP” as a description of the topic covered in ‘ainina sessions.

\ CofA (Air) does not exist for the stationary standby diesel powered ienerator, portable generator (for emergency backwashing and low ft backup), electric-diesel LLP, electric-diesel HLP, diesel powered ire pump and the IPR standby diesel powered pump.

~ ~~ ~

4 review of the quarterly reports required by O.R. 459100 Section 12. ound the following:

1.

2.

3.

4.

5.

the reports do not include analytical data on the microbiological quality of the raw water source in accordance with O.R. 459100 section 12. (1) (c); the reports did not include a section that clearly describes the measures taken to comply with O.R. 459/00 and the ODWS until the fourth quarter of 2002; the reports do not include analytical data for sampling and analyses conducted in the raw and treated water and the WDS for additional parameters not required by O.R. 459100 Section 7. and Schedule 2.; an additional table was added to the 2002 quarterly reports titled “ChemicallPhysical Parameters Non Health Related”. This table contains analytical water quality results for benzo(V)pyrene, cyanide, dioxin and furan, fluoride, gross alpha scans, gross beta scans, nitrilotriacetic acid (NTA), N- nitrosodimethylamine (NDMA), sodium and tritium. All of these parameters are health-related parameters and have been assigned MACs or IMACs; and, the quarterly reports indicate that aluminum is present in the treated water at maximum concentrations of 80 mglL, 80 mg/L, 30 mg1L and 130 mg1L in the first, second, third and fourth quarterly reports, respectively. The results for aluminum appear to have been expressed improperly or incorrect concentration units have been used in the ChemicallPhysical Parameters Non Health Related table for aluminum.

The lack of access to public facilities has limited the ability to sample the distribution system in the extremities of the outer Bath Road arei (near City of Kingston limits) and the within the Westbrook subdivision.

The City of Kingston has not developed a formal source protection plan for the raw water source supplying the Kingston West WTP.

Order Issued

No

No

No

No

No

t 77

I Item

41.

I

I 42.

Finding

PTTW No. 72-P-0397 authorizes the withdrawal of water from Lake Ontario at a rate not to exceed 56,000 L/min or 39,560,000 Lld. Utilities Kingston presently records raw water average day, maximum day, and maximum day peak instantaneous flow rates in m3/day. Utilities Kingston does not measure or record maximum day peak instantaneous raw water flow rates in Llmin for the purpose of assessing compliance with the limit of 56,000 Llmin stipulated in

Utilities Kingston prepares comprehensive “Bacteriological Reports”, for each month and a similar summary report for each calendar year, detailing microbiological sampling and results in the WDS, for the purpose of demonstrating compliance. These reports do not include details concerning the results of free chlorine residual measurements taken in the WDS, at the same time and location microbiological samples are collected.

PTTW NO. 72-P-0397.

Order Issued

No

No

Page 7 0121 78

COUNCIL MEETlNG 1 7 JUN 0 3 '93

ACTION REQUIRED

Item

1.

Uti I i ties Kingston's Response

2.


Action Required

The Owner and operating authority shall ensure that representative raw water samples are collected and analyzed for microbiological parameters by:

A. installing a dedicated raw water sampling line in the raw water intake constructed of suitable materials capable of drawing a sample of raw water beyond the crib chlorination diffuser; or B. temporarily shutting off the crib chlorination system long enough to purge C12 from the raw water intake and raw water wet well prior to collecting raw water samples.

As of April 3, 2003 the crib chlorination is being shut off for sufficient amount of time to allow for a representative raw water sample to be taken. The sample is checked for chlorine to ensure none is present in the raw sample. The current SOP is being modified to reflect this and operators are being trained on this procedure.

The Owner or operating authority shall remove the plastic hose from the raw water sampling tap. If necessary, the sampling line should be extended using suitable material such as stainless steel.

The plastic sampling hose has been removed from the raw water sampling tap. Installing a new line of a different material is being in ve s figa t e d.

Required Compliance

Date

April 7, 2003

Action Date

April 3,2003

April 7, 2003 I

Action Date

April, 3,2003

~

Item

3.,4.,5,6.,7


Action Required

comprehensive disinfection strategy should be developed for the (ingston West WTP. This strategy should be documented in a SOP and included in the operations manual for the WTP. The itrategy should take into account the findings of the first hgineers’ Report concerning the maintenance of free C12 residual :oncentrations in the on-site reservoirs, and the requirements of >ondition 5.6 of CofA No. 6451-59FQKK, and include:

1.

2.

3.

4.

The minimum required C12 dosage applied to the WTP process to ensure that the free C12 in the reservoirs is maintained consistently above 1 .O mg/L and the free C12 throughout the WDS remains at or above 0.2 mg/L at all times; Identification and implementation of the required alarm set points on the continuous free CI2 analyzer (used to monitor free C12 residual concentration entering the distribution system) to ensure that the minimum free C12 residuals identified above are met; Daily evaluation of actual CT (using the spreadsheet that has been developed and is presently available to the Quality Assurance Operators or a similar spreadsheet) to determine the actual operating CT based on pH, temperature and free C12 residual in the treated water entering the WDS or daily determination the free C12 residual concentration required to be maintained in the reservoirs to meet the minimum CT value needed to ensure that a 1 .O-log reduction in Giardia (post filtration) is consistently achieved; and, Daily recording of actual operating CT and the free C12 residual concentration required to be maintained in the reservoirs to meet the minimum CT value needed to ensure that a 1 .O-log reduction in Giardia (post filtration) is consistently achieved;

All operating staff should be trained in the strategy and the strategy should be consistently applied by the duty OIC for the WTP. The strategy should be re-evaluated and revised once the ~

upgrading requirements of Condition 5.1 of CofA No. 6451- 59FQKK have been completed, taking into account: improved baffling factor that will result from the conversion of the older 2-cell reservoir into a serpentine baffled Cl2 contact tank; changes to the C12 application point; and, changes to hydraulic residence time. ,

Required Compliance

Date

blay 1, 2003

The issues were addressed in the response to the provincial order. A written SOP was developed and forwarded to the MOE office. The Sop was also placed in the Operational Manual for the West Wafer Plant. Records of the training have been submitted

Action Date

May 1,2003

Page 9 of 21 80

COUNCIL MEETlNG 1 7 JUN 0 2 ’U3

Item

Jt i I i t ies (ingston’s 3es ponse

3 .


I O . , 11

Action Required

\ formal calibration record should be prepared for each of the on- ine chlorine analyzers to document: a comparison of the analyzer )utput to the output from a bench top analyzer (used to cross :heck the on-line unit); electrical adjustment that may be required, md a reason for calibration such as cell contaminationlage and nstrument drift.

The formal calibration record has been developed for the on line :hlorine analyzers. Attached is a sample of the developed record. The completed records will be kept at the West Water Plant.

The Owner should provide an amperometric titrator for the iurpose of cross checking the on-line C12 analyzer and the iperating staff should use the amperometric method rather than he DPD colorimetric method for the purpose of cross checking the accuracy of the on-line C12 analyzer.

Utilities Kingston will provide an amperometric titrator for the Durposes of calibrating the on line chlorine analyzers. It should be noted that the industry and Standard Methods recognize DPD methods of calibrating chlorine analyzers as being accurate. We are in the process of checking with the manufacturer regarding using DPD methods for calibration.

The Owner and operating authority should ensure that proper chemical dosage process control is applied at the WTP, including regular calibration of the chemical metering pumps. An SOP should be developed concerning coagulant dosage control and the calibration and operation of the chemical metering pumps. The SOP should be included in the Operations Manual for the facility. The Owner and operating authority should ensure that all operating personnel are trained in the SOP and the SOP is consistently applied.

Required Compliance

Date


Action Date

April 10,2003


Action Date

July 2,2003


8

CQUNCIL MEETING 1 7 JUN 0 3 ‘W

I Item

Kingston’s i Response

2.

J t i I i t ies (ingston’s 3es po n se

13.

~


14., 15.

~

Action Required

I n SOP is being developed for proper dosage control and :ahbration of the chemical feed at the Kingston West facility.

Jtilities Kingston is developing a process in place to optimize the :oagulant dose at the Kingston West Facility. Testing has been :arried out on defining the optimum dosages and reference is ieing made to the Kinston west optimization report prepared by r(CG consultants. New higher capacity pumps will ordered and nstalled as soon as approval from the approvals branch of the MOE has been obtained.

~ ~~~~~

The Owner should apply to the MOE’s Environmental Assessment and Approvals Branch to amend the existing C of A to approve the nstallation of chemical metering pumps, of adequate capacity, to mable the application of PAC1 dosages necessary to ensure 2ffective coagulation-flocculation up to the maximum daily design ‘low of the WTP.

The application was sent and approved. New PAC pumps are on order and will be installed by the end of June 2003.

The Owner and operating authority shall ensure that the alarm set points on the on-line turbidimeters are utilized and adjusted accordingly to alert operating staff of filter breakthrough and unacceptable levels of turbidity in the filter effluent, so that corrective action may be taken. In addition, the alarms should be wired to the WTP’s SCADA system and annunciated via an alarm dialer and if necessary an alarm paging service during periods of unsupervised operation.

The Scada integrator was contacted and the work has been completed to connect the turbidity meters to alarms that will alen the on duty operator via an water quality alarm of unacceptable turbidity levels.

The Owner and its operating authority should consult with the TSSA to determine whether the UGST used for the storage of bulb diesel fuel at the WTP and the AGST used for diesel fuel storage at the IPR continue to be acceptable storage tanks for the storage of diesel fuel.

Required Compliance

Date

4ction Date

lune 30,2003

levelop an action plan to address the action required, :omplete with mplementation jates, and submit to the nspector by June 2, 2003.

Action Date

Sompleted mplementation PY end of June 2003

May 1,2003

Action Date

Completed May 2003


82 Page 11 of 21

~

Item

J t i I i t ies (ingston’s tesponse

l4., 15.

Jt i I it ies (ingston’s Tesponse

16.


17


1 Response

Action Required

This work is in place. Plans to have the underground diesel tanks -eplaced has started. Utilities Kingston is working with the City’s 5nvironmental Division on this issue.

’ending the outcome of consultation held with the TSSA, the 3wner and operating authority should determine the age of the JGST for bulk diesel fuel storage and arrange to have the UGST nspected for general condition and cathodic protection, or if -equired, replace the tank. Similarly, the owner should construct secondary containment around the AGST used for diesel fuel storage at the IPR and secure the filler pipe with a locking cap, or f required, replace the tank.

Response same as above. Utilities Kingston is investigating replacing the underground fuel storage tanks.

The owner and operating authority should: revise the SOP to include more detail concerning the required notification procedure and corrective action for each adverse water indicator included in O.R. 459/00, Schedule 6; prepare a separate procedure for notification and corrective action concerning MAC and IMAC exceedences; and, incorporate the resampling details contained in ODWS Section 4.2. Microbiological Organisms, subsection 4.2.2.1 Resampling and Section 4.3 Chemical and Physical Parameters, subsection 4.3.2 Assessment and Corrective Action into the SOPS.

This issue has been addressed. The SOP referred to above has been developed and is located in the Operating Manual at the plant.

The Owner and operating authority should prepare a contingency procedure to address failure and/or interruption of the coagulation- flocculation process, including lack of available coagulant malfunctioning or failure of related equipment; for example, PAC metering pumps, chemical feed lines, rapid mixer, variable speec flocculator mixers and PAC1 storage tank.

The contingencies are being developed for failure of coagulan feed systems and chemical mixing systems. These contingencie: should be in place by mid June 2003.

Required Compliance

Date

Action Date

Fall 2003


Action Date

Fall 2003


Action Date

End of April 2003

Develop an action plan to address the action required, corn plete with implementation dates, and submit to the inspector by June 2, 2003.

Action Date

Mid June 2003

83

Item

18.


19.


20.

Action Required

The Owner and operating authority should prepare a list of key ?quipment, suppliers or contractors, including contact information, hat may be available to assist in the event of an emergency or ipset condition at the WTP, and include the list in the contingency )Ian section of the Operations Manual.

The current lists are being up dated and inserted into the 3perations Manual for the West Treatment Plant. We expect this ‘ist to be completed by Mid June 2003.

The Owner and its operating authority should prepare contingency xocedures for:

1. The reporting, control and clean-up of spilled chemicals or diesel fuel within the WTP that may have the potential to impact treated water quality;

2. A spill upstream or in the vicinity of the raw water intake that may impact raw water and ultimately treated water quality; and,

3. Extended absences of the OIC with overall responsibility for the operation of the WTP and WDS, including notification of the Director, Ministry of the Environment, Human Resources, Training & Certification in the event the OIC with overall responsibility is absent and unable to fulfill hidher responsibilities for a period of 60 days or more in any calendar year.

This issue is being addressed. Plans are being made to have the Contingencies in place by the end of July 2003.

The Owner and its operating authority should finalize the city-wide emergency plan, include a copy of the plan in the WTP’s contingency plan and post a copy of the emergency plan in ii prominent location at the WTP. Alternatively, the Owner and its operating authority should develop an ERP specific to the three water treatment and distribution systems serving the City, include a copy of the ERP in the WTP’s contingency plan and post a cop) of the ERP in a prominent location at the WTP.

Required Compliance

Date

levelop an iction plan to address the action required, :omplete with m plementation jates, and jubmit to the nspector by lune 2, 2003.

kt ion Date

vlid June 2003

3evelop an xt ion plan to address the action required, :omplete with m plementation jates, and submit to the nspector by June 2, 2003.

Action Date

End of July 2003


Page 1 3 ~ f 2 1 8 4

Item

J ti I i t ies (ingston’s 2esponse

!I


22.


23.. 24.

Action Required

‘hese plans are being developed. The ERP’s for the water plants :hould be in place by the fall of 2003 and will be located at the vater facilities. When the utility Emergency plan is in place it will )e distributed throughout the Treatment Group as well as the rest )f the Utility. This plan will be part of the overall City wide imergency plan.

-he Owner and its operating authority should ensure that all )perating staff are trained in the location(s) and content of all :ontingency procedures and the training has been documented in iccordance with Section 17. (3) of O.R. 435/93. An SOP should )e developed concerning the training of operational staff in the :ontingency procedures and the periodic testing of the irocedures. The SOP should include a schedule for the testing of he contingency procedures and the schedule should be followed. 4 record of testing contingency procedures should be maintained ncluding the results of the test and a debriefing.

This issue is also being addressed. The contingency procedures we in the process of being developed and implemented. Progress should be seen in this area by the end of July of 2003.

4 sampling plan has been prepared for the WTP and WDS. This i a n should be inserted into the Operations Manual. Plans, ncluding a site plant for the WTP and WDS and a schematic cliagram of the WTP should be inserted into the Operations Manual.

This issue has been addressed and the sampling plan has been placed the Operation Manual at the West Plant. The map of the water system indicating sampling locations will be inserted into the manuals by June 2003.

The SOPS for filter operation should be revised to include: the operating criteria used to determine when a filter requires backwashing; the importance of controlling filter flow rate when returning a filter to service following a backwash; the importance of controlling plant flow rate when a filter is out of service durins backwashing and an explanation of automatic filter operation and backwashing.

Required Compliance

Date

W o n Date

ind of 2003

levelop an iction plan to iddress the iction required, :omplete with mplementation jates, and ubmit to the nspector by lune 2, 2003.

W o n Date

+ogress by end i f July 2003

3evelop an action plan to 2ddress the xt ion required, 2omplete with Implementation dates, and submit to the inspector by June 2,2003.

Action Date

Completed by June 2003


I

i Item


i 25.


I I 26.

Uti lit ies Kingston’s I Response

Action Required

‘he Sop’ s for filter operation are being revised and documented ind will be in place by the end of June 2003

-he Owner and its operating authority should post the perimeter of he security fence with a number of signs to indicate that inauthorized entry is prohibited in accordance with the Trespass o Property Act.

This issue will be completed by the end of June 2003. The sign x e being ordered.

The Owner and its operating authority should replace the screens 3n the vents with a suitable mesh size to prevent the entry of nsects.

Vent screens are being installed and should be completed by the end of May 2003. The screen size will be such to prevent the entry of a variety of insects, however the screen size cannot be too small as it might impede the functionality of the vent.

The Owner and its operating authority must ensure that the flow measuring devices are calibrated at intervals not exceeding one year in accordance with Condition (b) of C of A Number. 6451- 59FQKK.

Required Compliance

Date

Action Date

Tnd of June !003

levelop an iction plan to iddress the action required, :omplete with m plementation iates, and jubmit to the nspector by lune 2, 2003.

9ction Date

End of June 2003

~

3evelop an action plan to address the action required, somplete with ,mplementation dates, and submit to the inspector by June 2, 2003.

Action Date

End of June 2003

Develop an action plan to address the action required, com plete with implementation dates, and submit to the inspector by June 2, 2003.

Page 15 of 21 7 86

Item

Jti I i ties {ingston’s qesponse

28.

Uti I i ties Kingston’s Response

29.


Action Required

rhis item was addressed in the response to the provincial order ,laced on the West plant. The schedules have been moved ahead o ensure that the calibrations do not exceed the one year time wtlined in C of A 6451-59FQKK.

4 formal calibration record should be prepared for each of the on- ine turbidimeters to document: a comparison of the turbidimeter iutput to the output from a bench top turbidimeter (used to cross :heck the on-line unit); electrical adjustment that may be required, md a reason for calibration such as cell contaminationlage and nstrument drift.

This issue has been completed and SOP is located in the West Plant Operation Manual.

Utilities Kingston and the City of Kingston should prepare formal, documented standards including SOPs for the repair or replacement of broken water mains and the installation of new water mains. The standards and SOPs should include details and specifications for pipelines and material used in the construction of new watermains. The SOPs should be based on ANSVAWWA C651-99, C652-02 and C653-97. The SOPs may simply document that the aforementioned standards have been adopted, shall be followed and include a copy of the standards. The SOPs, including the standards should be made readily available to the Underground Infrastructure Department personnel and contractors.

This issue has been addressed by the underground department. The SOP’S are located at 211 Counter Street and are accessible by the underground crews.

Required Compliance

Date

ktion Date

:ompleted April !003

levelop an action plan to address the action required, :om plete with mplementation jates, and submit to the nspector by June 2, 2003.

4ction Date

Zompleted April 2003

3evelop an action plan to address the action required, complete with implementation dates, and submit to the inspector by June 2,2003.

Action Date

Will be completed and in place by the end of June 2003

COUNClL MEETlNG 1 7 JUN 0 3 '03

Action Required

-he City of Kingston and Utilities Kingston must ensure that any , 30.

Required Compliance

Date

Develop an

Uti I ities Kingston's Response

low testing or flushing fire hydrants is not directed to a storm #ewer, drain, ditch or any other location that may allow the lischarge to enter a water course without prior dechlorination.

-he City of Kingston and Utilities Kingston should ensure that its :ontractors and consultants are aware of the prohibitions under s. 10. (1) of the Ontario Water Resources Act, s. 14. (1) of the 3wironmental Protection Act and s. 36. (3) of the Federal 7sheries Act, and practise proper dechlorination methods when jisposing or discharging chlorinated water.

131.

action required, complete with implementation dates, and submit to the inspector by June2, 2003.

I Utilities Kingston's Response

I 32.

Jtilities Kingston is taking steps to ensure that excessively :hlorinated water resulting from the discharge from new or epaired water mains is not directed to storm sewers or open jitches. Measures will be taken to eliminate excessive chlorinated vater being discharged via fire hydrant flushing.

zontractors and developers will be issued advisories regarding the Jischarge of chlorinated water to the environment as per The 3ntario Water resources Act and Environmental Protection Act.

The City of Kingston and Utilities Kingston should discourage the 'illing of pesticide mixing tanks from the Kingston West WTP and JVDS. The City of Kingston and Utilities Kingston shall ensure that: :he water filling station in the Creekford Road area has been ?quipped with an approved back-flow preventer device or an anti- suction device; the approved back-flow preventer device or an snti-suction device is regularly inspected and tested; and, records are kept of the inspection and testing of the device.

~

The Creekford road filling station has a approved backflow protector in place and testing of the device will be completed by July 2003.

The Owner and its operating authority should, no later than July 23, 2003, incorporate the procedure for responding to customer complaints into the operations manual for the Kingston West WTP in accordance with Conditions 3.14 and 3.9 of C of A No. 6451- 59FQKK.

action Date

I n going

levelop an action plan to 3ddress the gction required, :omplete with m plementation dates, and submit to the inspector by June 2, 2003.

Action Date

July 2003


Page 17 of 21 3 85

COUNCIL MEETING 1 / JUN 0 j ’US

item

J ti I i t ies (ingston’s qesponse

13.


34.


35.

Action Required

issue has been addressed. The SOP for responding to :ustomer complaints is located in the Plants Operation Manual.

-he Owner and its operating authority should ensure that:

1. The identity of the OIC with overall responsibility of the Kingston West WTP is clearly communicated to all operating staff;

2. All operating staff are aware of their roles and responsibilities; and,

3. The operations manual for the Kingston West defines and identifies the roles and responsibilities for all management and operating staff for the Kingston West WTP and WDS, including the identity and responsibility of the OIC with overall responsibility for the operation of the WTP and WDS.

This issue should be addressed by July 2003. The documentation Mill be located in the Plants SOP’S

The Owner and its operating authority shall ensure that all future *equests for training records of licenced operators responsible for :he operation and maintenance of the Kingston West WTP and iNDS include records for all licenced operators including: the OIC Jvith overall responsibility for the operation of the WTP and WDS; management staff who also hold valid licences for the operation of the WTP and WDS; and, the Underground Infrastructure Group WDS operators.

This issue of training records is being addressed. A data base is being developed to track and record training hours for each licensed operator including management staff that hold licenses. The process has started and should be well underway by the fall of 2003.

The Owner and its operating authority shall ensure that all licenced operators responsible for the operation of the Kingston West WTP and WDS are provided with a minimum of 40 hours of training each calendar year in accordance with O.R. 435/93 s. 17 (1 1.

Required Compliance

Date

4ction Date

2ompleted April 2003

3evelop an action plan to address the action required, :omplete with mplementation Aates, and submit to the inspector by June 2, 2003.

Action Date

July 2003


Action Date

Fall 2003


8 9

COUNClL MEETING 1 1 JUN U 3 U3

Item

Jti I it ies (ingston’s qesponse

36.

Utilities Kingston’s Res ponse

37


Action Required

:ach operator will be scheduled for at least 40 hours of training. This training is being logged. The training will continue for the .emainder of 2003.

The Owner and its operating authority should ensure that all iperators new to the operation of the Kingston West WTP are :rained in the emergency and contingency procedures for the JVTP. The operator training records should include more detail 2nd appropriate descriptions of training in the operation of the (ingston West WTP where this training has been provided to Dperators new to the operation of the facility.

An orientation package is being developed this year. The training package that exists now is being modified and should be useable bv the end 2003.

The Owner and its operating authority should ensure that any future alterations made to the diesel powered equipment, replacement of the equipment, or addition of new equipment does not take place without first applying for approval and obtaining a C of A (Air).

~~~~~~ ~ ~

Any modifications that change the performance or operation of the standby power will have C of A changes applied prior to the modifications.

Required Compliance

Date

Action Date

End of 2003


Action Date

End of 2003


Action Date

On going

Page 19 of 21

item

18.


39.


40.

Action Required

The Owner and its operating authority should include all results of water quality monitoring in the quarterly reports including results of microbiological sampling of the raw water, and all results from chemicallphysical sampling for the raw, treated and distribution system water in future quarterly reports.

The inclusion of analytical results for the health related parameters Denzo (a) pyrene, cyanide, dioxin and furan, fluoride, gross alpha scans, gross beta scans, nitrilotriacetic acid (NTA), N- Iitrosodimethylamine (NDMA), sodium and tritium in a table Dearing the terms “Non Health Related” is incorrect and may be misleading to the public. The Owner and its operating authority should ensure that these parameters are included in future quarterly reports in a table that indicates the parameters are health-related.

The Owner and its operating authority should either correct the units used to express the analytical results for aluminum in future quarterly reports to pglL rather than the present mglL or express the reported concentrations for aluminum in mglL rather than pglL.

The additional parameters have been added to the quarterly reports and the units for aluminum have been corrected.

The Owner and its operating authority should install locking, self- draining sampling hydrants in the outer Bath Road area and within the Westbrook subdivision to improve the ability to sample the distribution system in these extremities and other similar areas within the WDS.

The location of the sampling hydrants are under review. This process should be completed by late August 2003

The Owner and its operating authority should develop a source protection plan for the WTP, beginning with the establishment 01 an inventory of potential sources of contamination of the raw water supply.

Required Compliance

Date

)evelop an lction plan to Iddress the iction required, omplete with n plementation lates, and ubmit to the ispector by lune 2, 2003.

4ction Date

2ompleted April 2003.

3evelop an action plan to address the action required, complete with implementation dates, and submit to the inspector by June 2, 2003.

Action Date

Late August 2003

~

Develop an action plan to address the action required, com plete with implementation dates, and submit to the inspector by June 2,2003.

91

item

Jt i lit ies (ingston’s Tesponse

$1.


42

Uti1 ities Kingston’s Response

Action Required

This issue is being reviewed, the date of completion is unknown at this time.

The Owner and its operating authority should ensure maximum day peak instantaneous raw water flow rates are measured and recorded in Llmin for the purpose of assessing compliance with the limit of 56,000 L/min stipulated in PTTW No. 72-P-0397.

The units for the flow measurement will be recorded in both I/min and m3/day. We are investigating having these changes made on our SCADA system. This should be completed in the fall of 2003.

The Owner and its operating authority should modify the “Bacteriological Reports” to include details concerning the results of free chlorine residual measurements taken in the WDS, at the same time and location microbiological samples are collected. Alternatively, the Owner and its operating authority should consider preparing a complementary report to the “Bacteriological Report” to include details concerning the results of free chlorine residual measurements taken in the WDS.

This issue has been completed prior to this report. Samples are available at MOE requests

Required Compliance

Date

Action Date


Action Date

Fall 2003


Action Date

Completed

Page 21 of21 9 2

COUNCIL MEETING 1 7 JUN 0 3 ‘03

Appendix E

April 28,2003

Ministry of the Environment P.O. Box 820 Kingston, Ontario K71-4x6

Attention: Mr. Dan White Provincial Officer / Inspector

Dear Mr. White:

In response to Provincial Order # 5035-5L7QR5 issued for the Kingston West ‘Water Treatment Plant. Utilities Kingston on behalf of the City of Kingston has responded to items #4 and #5 in a letter dated April 7, 2003. We would like to respond to the remaining items listed in the order.

Work Ordered

1. By May 1, 2003, develop a comprehensive disinfection strategy for the Kingston West Water Treatment Plant (“WTP”); document the strategy as a standard operation procedure (“SOP”) and incorporate the SOP into the operations manual for the WTP. The strategy should take into account the fmdings of the first Engineers‘ Report concerning the maintenance of free chlorine (“Cl2”) residual concentrations in the on-site reservoirs, and the requirements of Condition 5.6 of Certificate of Approval (“CofA”) Number (“No.”) 645 1 -59FQKK, and include:

(a) identification of the minimum required contact time (“CT”) values required, under worse case winter and summer conditions at historic peak flow and plant design flow, for the Kingston West WTP to achieve 1.0-log Giardia removal and 2.0-log virus removal, as identified in the “First Engineers’ Report, City of Kingston, Kingston West Water Treatment Plant, January 200 1 ’,;

(b) identification of the minimum free C12 residual required in the treated water leaving the on-site reservoirs to ensure that the required CT needed to achieve 1.0-log reduction in Giardia (post filtration) is consistently met, and to ensure that the free Clz residual throughout the Kingston West Water Distribution System (“WDS”) remains at or above 0.2 mg/L at all times;

(c) instructions to apply a C12 dosage to the water treatment process sufficient enough to maintain the minimum free C4 residuals referred to in item 1. (b) above. The C4 dosage applied to the water treatment plant process may be less than the minimum C4 dosage of 3.5 mg/L referred to in Condition 5.6 (ii) of CofA No. 6451-59FQKK7 provided that it is demonstrated that the minimum required CT to achieve 1.0-log inactivation of Giardia (post filtration) is consistently met, and the free Cl2 residual throughout the Kingston West WDS remains at or above 0.2 mg/L at all times;

- 2 -

instructions to determine on a daily basis, based on operating conditions of maximum day flow, post free e l 2 residual, minimudcurrent water temperature, miiimudcurient reservoir level and maximum/current pH, the CT value required (post filtration), the actual CT achieved and a comparison of the actual CT achieved to the required CT value;

identification of the required alarm set points for the continuous free Cl2 analyzer used to monitor free Cl2 residual concentration entering the distribution system, to ensure that the minimum free C12 residual concentrations identified in 1. (b) above are met;

daily recording of the CT required, the actual CT achieved, a comparison of the actual CT achieved to the required CT, maximum day flow, post free Cl2 residual, minimud current water temperature, minimudcurrent reservoir level and minimudcurrent pH; and

daily recording of the chlorine dosage applied to the water treatment process to achieve 1.0-log reduction in Giardia (post filtration) and to ensure that the free Cl2 residual throughout the Kingston West Water Distribution System (“WDS~’) remains at or above 0.2 mg/L at all times.

The strategy should be re-evaluated and revised once the upgrading requirements of Condition 5.1 of CofA No. 6451-59FQKK have been completed, taking into account: improved baffling factor that will result from the conversion of the older 2-cell reservoir into a serpentine baffled C12 contact tank; changes to the C12 application point; and, changes to hydraulic residence time.

Response:

A Comprehensive disinfection Strategy has been developed for the Kingston West Water Plant and has been incorporated as a Standard Operating Procedure and placed in the Plant’s Operating Manual. The Strategy has been developed taking into account the individual requirements listed in Item # 1 of the Provincial order. A copy of this Standard Operating Procedure is attached.

As the upgrades are completed the evaluation of the process will be carried out and adjusted to suit the changing conditions and taking into account the improvements that are to be made to the facility,

2. By May 1, 2003, adjust the alarm set points on the continuous free Clz analyzer used to monitor free C4 residua! cdncentration in the water entering the WDS, to ensure that 1 .O- log inactivation of Giardia (post filtration) is consistently met, and the free Cl2 residual throughout the Kingston West WDS remains at or above 0.2 mg/L at all times.

Response:

The free residual alarm set points were adjusted April 3,2003 to a low alarm of 1.1 mg/l and a high residual of 2.0 mg/l. This will ensure proper residuals are maintained to achieve 1.0 log removal of Giardia and 2.0 log removal of virus and that free residuals are maintained in the distribution system. The alarm set points for free chlorine residual are outlined in the Strategy for Disinfection.

9 4

- 3 -

3. By May 31, 2003 train all operating staff in the SOP described in 1. (a) through 1. (g) above; document the training in accordance with Section 17. (3) of Ontario ReguIation 435193 Water Works and Sewage Works, made under the Ontario Water resources act; and ensure the SOP is consistently applied by the duty Operator In Charge for the WTP.

.

Response:

The training of the operators regarding CT and plant disinfection has started. By May 31, all operators will be trained on the Standard operating procedure for maintaining proper disinfection. A sample of the training material is included with this letter. Also included is a copy of the training layout that is being setup for our operators. The operators will be required to sign off on the training as they receive it. This list will be forwarded to you as required in the order.

\

4. By April 7 , 2003, ensure that representative raw water samples are collected and analyzed for microbiological parameters by temporarily shutting off the crib chlorination system, for a sufficient duration to purge Cl2 from the raw water intake and raw water well, and verifying that the raw water stream is free of Cl2 prior to collecting a sample. While the crib chlorination is suspended, compensate for the overall Cl2 dosage required by increasing the Cl2 dosage at the post filtration application point.

Response:

This item was addressed in the letter dated April 7,2003. (Attached)

5 . By April 7 , 2003, ensure that representative raw water samples are collected by removing the polyvinyl chloride (“PVCyy) or similar plastic hose from the raw water sampling tap. If necessary, extend the sampling line using a suitable material, such as stainless steel.

Response:

This item was addressed in the letter dated April 7,2003. (Attached)

6. By May 1, 2003, ensure that the alarm set points on the on-line turbidimeters are utilized and adjusted accordingly, to alert operating staff of filter breakthrough and unacceptable levels of turbidity in the filter effluent, so that corrective action may be taken. Ensure filter effluent turbidity a lahs are annunciated, by wiring the alarm points to the WTP’s Superivsory Control and Data Acquisition (SCADA”) system and an alarm dialer and, if necessary, utilize an alarm paging service during periods of unsupervised operation.

Response:

The work for this item has been scheduled. A scada integrator has been contacted and has prepared the program adjustments necessary to have the on-line turbidity meters linked to a water quality alarm. This alarm will alert the operator on duty to a condition of unacceptable turbidity levels. This work is estimated to be completed by early May, 2003.

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7. By December 8, 2003, ensure that the raw water, filter effluent and treated water flow measuring' devices are-calibrated in-accordance with Condition 2.1 (b) of CofA Number 6451-59FQKK. Thereafter, ensure that the raw water, filter effluent and treated water flow measuring devices are calibrated at intervals not exceeding one year in accordance with Condition (b) of CofA Number 645 1-59FQKK.

Response:

The calibration of plant flow measuring devices is carried out on yearly schedules. The calibration schedules of our flow measuring devices have been moved ahead to ensure that the time between calibrations is no more than one year. Calibration records will continue to be recorded and made available to Ministry of Environment inspectors.

8. By May 3 1,2003, provide to the undersigned Provincial Officerfinspector:

(a) a copy of the SOP required by 1. above; (b) evidence that all operating staff have been trained in the procedure as required by 3.

(c) written confirmation or evidence that work ordered under items 2., 4., 5. and 6. above has above; and

been completed.

Response:

By May 31,2003 Utilities Kingston will provide Dan White the following as required by Provincial order # 5035-5L7QR5:

A copy of the SOP required by Item #1 of the above mentioned order. (Attached) The sign off sheet of the operating staff indicating their training regarding the SOP required by item #1 of the above mentioned order. Itern#2 and Item # 4 have been addressed in the letter dated April 7,2003. Item #5 has been addressed in this letter under Item #5. Item # 6 will be confirmed by May 31,2003 once the contractor has completed the necessary programming.

I trust this reply will satisfy the requirements of the Provincial order # 5035-5L7QR5. If you have any questions or further confirmation is required please contact the undersigned.

Kevin Riley, C.E.T. Manager Treatment Group Pres' JimtF ent & CEO Utilities Kingston

C.C. Bert Meunier, CAO, City of Kingston Dr. Ian Gemmill, Medical Officer of Health

Encl.

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April 7, 2003

- Ministry of the Environment P.O. Box 820 Kingston, Ontario K71-4x6

Attention: Mr. Dan White Provincial Officer / inspector

Dear Mr. White:

In response to Provincial to Provincial Order # 5035-5L7QR5 issued for the Kingston West Water Treatment Plant. Utilities Kingston on behalf of the City of Kingston is intending to address the order by the timelines set out by the Ministry of the Environment as per the Provincial Officer’s Order.

There are two items in the order being #4 and #5 which require action by April 7, 2003. The first item (#4) requires that a representative raw water sample be taken by suspending the crib chlorination and ensure that the raw water sample is free of chlorine. This item was addressed on April 3, 2003. The suspension of crib chlorination was carried out prior to the raw water being sampled and the lack of chlorine in the sample was verified by testing for chlorine residual. The post chlorine residual was monitored to ensure that proper chlorination was maintained. This procedure will be continued as an ongoing SOP. The current SOP is being modified and will be submitted for your records.

The second item (#5) requires that the PVC hose be removed from the raw water sample line. The removal of the hose was completed April 3, 2003.

The remaining items are currently being addressed and will be formally responded to in the near future. If you have any concerns or questions please contact the undersigned at 546-1 181 ext. 2224.

Kevin Riley C.E.T. - Manager Treatment Group

C.C. Jim Keech President & CEO Utilities Kingston Bert Meunier CAO City of Kingston Ian Gemmill Medical Off icer of Health

LUUlYLlL IVltEl I N t # 1 f JUlY u 2 ua A p p e n d i x F

Ministry of the Environment

Ministere de I’Environnement

133 Dalton Avenue P 0 Box 820 Kingston ON K7L 4x6

133 avenue Dalton C P 820 Kingston ON K7L 4x6

10 April 2003

Utilities Gngston 21 1 Counter St. PO Box 790 Kingston, ON K7L 4x7

1-6131549-4000 1-800/267-0974 Fax: 6131548-6920

Attention: Mr. Jim Keech President and Chief Executive Offcer

.- . , - -... .. . .. , - . . . . .

Dear Mr. Keech:

Re: Compliance Inspection Grade for the Kingston West Water Treatment Plant (WTP) - 22000 185 1 and Kingston Central WTP - 22000 1860

Thank you for taking the time to meet on April 2,2003, to review the results of the inspection of the Kingston West WTP and the’content of “Draft” Provincial Officer’s Order 5035-5L7QR5. During the meeting a discussion was held concerning the status or grade the ministry assigns to a WTP following an inspection, (Le., does a WTP “pass” or “fail” an inspection).

The findings stemming from the Kingston West and Kingston Central WTP inspections found no indications of known or anticipated human health impacts; no indications of known or anticipated environmental impacts; no indications of luiown or suspected violations of legal requirements during the inspection and/or review of relevant material which could cause a human health impact or environmental impairment; and no indications of a potential for environmental impairment during the inspection andor review of relevant material.

To further assist the City of Kingston in understanding how the ministry evaluates water works during the conduct of our inspection, I have enclosed a document titled, “Overview of the Ministry of the Environment Municipal Drinking Water Inspections Protocol”. This document provides background on the new protocol on which inspections are based, and provides an overview of the inspection process. Furthermore, the document includes in section 4.2 , a discussion on “Passing Your Inspection - Provincial Officer’s Orders” and identifies four main reasons that would cause a drinking water system to fail its inspection. It should however be noted, that this is not an exhaustive list of reasons that would trigger a failure.

0761 CG (08/35) e3 50% Recycled Chiorine Free. Made in Canada

COUNCIL MEETING I 7 JUN 0 3 '03

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If you have any questions or concerns, please do not hesitate to contact me at 1-800-267-0974, extension 2667 or (613) 549-4000, extension 2667.

Daniel K. m'te Inspector/Provincial Officer Drinking Water Inspection Program Eastern Region D Wig1

Enclosure

c: Bert Meunier, Chief Administrative Officer, The Corporation of the City of Kingston

Kevin Riley, Manager, Treatment Group, Utilities Kingston

COUbICIl MEETING 1 7 JUN 0 3 '03

@ Ontario Ministry of the Ministere de Environment , I'Environnement

Overview of the Ministry of the Environment Municipal Drinking Water Inspections Protocol

COUNCIL MEETING 1 7 JUN 0 j ’US

The Ministry of the Environment (MOE) has developed the Municipal Drinking Water Inspections Protocol (the Protocol) to guide its drinking water inspections. Ministry staff began using it to conduct inspections of drinking water systems, effective November 2002. The Protocol is more comprehensive than any in earlier use and includes the inspection of source, treatment and distribution of drinking water systems. It addresses the recommendations of the Report of the Walkerton Inquiry (the O’Connor Report) Parts One and Two related to inspections. The Protocol will be updated as needed on an ongoing basis to ensure it remains relevant with the legislation and with new developments in drinking water standards.

The Protocol builds on the one implemented by the ministry in the fall of 2000, The ministry reviewed the O’Connor Report to ensure that the Protocol met the recommendations that could be implemented without new regulations and legislation. The ministry also reviewed protocols from other jurisdictions -- specifically the US Environmental Protection Agency, and the states of Michigan, Colorado, Maryland and Massachusetts - and used their best practices to assist in the development of this protocol.

1 What to Expect When Inspected

Ministry of the Environment Inspectors will notify the water system owner and operator approximately one week in advance when they will be conducting an announced inspection. At that time, inspectors will provide the scope of the inspection, and the documents they will need to review while onsite.

During the on-site inspection, inspectors will introduce themselves on arrival, provide information on the reasons for the inspection, the statutory authority (the law) for the inspection and the scope of the inspection. Inspectors also are able to address concerns brought forward and should provide clear, detailed explanations of ministry requirements where necessary. Inspectors will address issues in a courteous, respectful manner and will treat owners and operators with fairness and consistency. Inspectors will also provide a contact number should further infomation or feedback be required. Owners and operators are encouraged to ask any questions they may have about the inspection process or ministry guidelines and requirements.

After the on-site component of the inspection, inspectors are available to answer questions about the inspection. Inspectors may also contact the owner or operator prior to finalizing any orders or inspection reports to clarify information or to discuss details.

Owners and operators can contact their local district office for additional information if needed.

Municipal Drinking Water Inspections Protocol Overview

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2 The O’Connor Report Recommepdations

In the Part One Report of the Walkerton Inquiry, Commissioner Dennis O’Connor made a number of recommendations related to inspections of drinking water systems, including:

the development of a more comprehensive inspections protocol to ensure the uniformity and adequacy of inspections; a continued commitment to annual inspections; adequate resources to inspect municipal water systems; a requirement that systems with significant deficiencies be inspected at least once per year a combination of announced and unannounced inspections; wider distribution of the inspection report -- to the owner, operating authority, and manager of the water system, the local Medical Officer of Health, the MOE’s local office and the MOE’ s Environmental Assessment and Approvals Branch; timelines for preparation and delivery of inspection reports and operator responses.

He also wrote that inspections should address the protection of dnnking water from source through distribution and that the inspector should ensure the adoption of sound management practices and encourage the adoption of best practices. In addition, he recommended that the ministry should take action to use mandatory abatement more often.

In the Part Two Report of the Walkerton Inquiry, Commissioner O’Connor also made recommendations related to inspections, including that inspectors:

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be required to review, before beginning an inspection, the data related to the quality of source waters and circumstances relating to changes in land uses or surrounding water; identify any problems related to the quality of source waters and recommend the steps required to correct such problems; provide a related report to the local conservation authorities; ensure sound management practices; and provide advice around best operating and management practices.

O’Connor also identified six principles to guide the development of the Protocol and to guide inspectors: effectiveness, a precautionary approach, consistent application, independence from outside influence, transparency, and adequate resources to run the inspections program.

He also recommended that the Ontario government enact a Safe Drinking Water Act to deal with matters related to the treatment and distribution of dnnkmg water. The government has moved ahead with the Safe Drinking Water Act. It expands on existing policy and practices and introduces new features to protect dnnking water in Ontario. It also sets the overarching framework for legislation and regulations relating to the treatment and distribution of drinking water.

Municipal Drinking Water Inspections Protocol Overview 3

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3 The Ministry of the Environment’s Response to the Report

In response to the O’Connor recommendations related to inspections, MOE has developed an enhanced drinking water inspections program and inspections protocol. To carry out the program, additional staff have been hired and they are located in ministry offices across the province.

These new staff were already skilled and knowledgeable in water treatment and inspections. In addition, they received more than eight weeks of training, including sessions on water quality, pathogens, source/supply, advanced water treatment processes, distribution, as well as sampling and analysis. This will enable them to be fully qualified to understand the practices of an operator of a treatment or distribution system.

4 Focus and Scope of the Drinking Water Inspections Program

The main focus of the drinking water inspections program is on annual inspections of municipal drinking water systems regulated under 0. Regulation 459/00. As mentioned above, the Protocol was developed to address the recommendations of the O’Connor Commission related to inspections under the current legislative requirements. The Protocol will be updated from time to time to ensure it remains current and thorough.

Ministry of the Environment dnnking water system inspections do not add additional regulatory requirements to municipalities, as the purpose of the inspection is to determine compliance with existing legislation. Inspectors will, however, be inspecting parts of the water system that have not recently been part of an inspection, such as the distribution system.

The overall process for conducting an inspection has not changed significantly. Inspectors will still target and schedule inspections based on identified risk factors, and they will pre-plan the inspection to ensure no key steps are missed. They will conduct the inspection, as they always have done, by observing operations in the plants, reviewing records, taking samples, and interviewing plant personnel, and if required, municipal staff as well. As before, they will also write orders to ensure compliance with all applicable legal requirements and they will track and follow-up on any orders to ensure they are being complied with in a timely manner. Finally, they will communicate inspection results to the owner and operator as well as other important stakeholders. It is the owner’s responsibility to ensure their water works are in compliance with all applicable legal requirements

The Protocol expands the scope of the ministry’s oversight in order to ensure safe drinking water. This will be accomplished by examining the source of water, treatment, and distribution systems. Inspectors will also consider management practices that effect the operation of the plant and ultimately the safety of drinking water. It also includes sharing and promoting with owners and operators the adoption of best practices to improve performance towards ensuring


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safe drinking water. Inspections staff will also communicate results more widely - to the owner, operator, the Medical Officer of Health, the local Conservation Authority, and the ministry’s Environmental Assessment and Approvals Branch. t

4.1 Promoting Best Practices Best practices have been incorporated into the Protocol with the intent of having inspectors review the current practices being employed and providing guidance to ownerdoperators on areas of the drinking water system that are not specifically addressed within the current regulatory framework. Inspectors will do this in addition to inspecting for compliance with legal requirements in the operations, and management of drinking water systems.

The best practices review may be a result of those identified by other jurisdictions, industry associations, or as a result of inspection activities which identify a need for improvements in operations or management. These practices, while not yet mandatory, will lead to safer drinking water for the consumer or may become regulatory or policy requirements in the future. Therefore, owners and operators may want to develop an awareness of these practices and take measures to implement them so that all drinking water systems continuously improve their processes.

Under the new program, inspectors are encouraged to promote best practices. Inspectors will promote best practices in a number of ways, including verifying that appropriate policies or procedures exist, reviewing policies or procedures, and sharing with water system personnel helpful practices implemented in other water systems. Further, inspectors are encouraged to share the practices of one water system that helped prevent certain situations or occurrences with other water system owners experiencing similar difficulties

The primary purpose for the inspector to gather and share information on best practices is to encourage water system owners and operators to continuously improve measures to protect the safety of drinking water. MOE may use the infomation to develop guidelines around the preferred content of best practice policies and procedures to ensure they are effective at achieving the desired results.

A NOTE ABOUT THE TERM “BEST PRACTICES”: During the development of the Protocol, a variety of terms (good practices, management practices, generally accepted practices, ministry- endorsed practices) were suggested to describe the promotion of practices that, while outside the current legislative framework, may lead to safer drinking water in Ontario. For simplicity sake, they will be referred to as best practices in this document.

4.2 Passing Your Inspection - Provincial Officer Orders The O’Connor report recommended that MOE increase its commitment to the use of mandatory abatement measures. It states that mandatory abatement measures should be the only option to address anything other than technical violations of operational requirements. It goes on to say that voluntary abatement practices for serious deficiencies in water treatment operations should


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no longer be tolerated and that voluntary abatement is not appropriate for any non-compliance that affects the safety of drinking water.

The Protocol provides specific guidance to inspectors about the type of measure to be used in response to a finding of non-compliance. Voluntary abatement will not be used in response to non-compliance with any legal requirement. T h s reflects the ministry’s commitment to make greater use of mandatory abatement in order to protect the safety of the public.

This means inspectors will generally write orders for any findings of non-compliance with statutes, regulations, Certificate of Approval requirements, Permits to Take Water requirements, or previously issued orders. However, inspectors will generally consult with owners and operators about the approach and timing of achieving compliance prior to finalizing an order.

At the end of the inspection, the ministry will use the information gathered during the inspection to determine whether the drinking water system has passed or failed its inspection. A drinking water system can fail its inspection for four main reasons:

Failure to comply with minimum sampling requirements as set out in Ontario Regulation 459/00 (the regulation) or a Certificate of Approval Failure to provide water quality as required by the regulation and any additional Certificate of Approval requirements Failure to maintain adequate residual disinfectant in a distribution system as required regulation or Certificate of Approval Operators who are not properly certified as required by Ontario Regulation 435/93.

5 Conducting an Inspection

There are six key phases to completing an inspection:

Targeting and Scheduling: Each year, MOE districts will prepare an annual schedule for inspecting all municipal drinking water systems. Factors they will consider include the time that has elapsed since the last inspection and whether or not there were any significant deficiencies identified during the last inspection that would require follow-up.

Pre-planning: During this phase, inspectors will plan the onsite component of the inspection to ensure it is thorough and focussed on any key areas of concern about the drinking water system. During this stage, inspectors familiarize themselves with the drinlung water system they plan to inspect by reviewing ministry records about the water system (Certificates of Approval, Permits to Take Water, previous Inspection Reports and Orders, Incident Reports, quarterly reports, Engineer’s Reports, etc).


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The purpose of this phase is to ensure that the inspector understands what sort of system he or she will be inspecting. For example, the inspector needs to know whether the system is a ground or surface water system, the characteristics of the treatment system and the elements of the distribution system.

For an announced inspection, the inspector will notify the water system in advance of the inspection and may provide the operator with a checklist of documents that the inspector will need to review during the inspection.

Conduct the Inspection This involves a physical inspection of the source, treatment and distribution components of the drinking water system, as well as a review of management practices. During the inspection, the inspector will physically inspect components of the system, interview system personnel, check logs and documents, and take water audit samples. Inspectors will also share and promote best practices where appropriate.

Further information on the inspection itself is provided later in this document.

Enforcement : Ministry inspection staff are provided with information on the use of mandatory or voluntary abatement measures to ensure compliance with all relevant legislation, regulations, and other tools of compliance. The response to any failure to comply with a legal requirement will be mandatory abatement (normally, an order will be issued).

Track and Assess: Once the on-site inspection is completed, the inspector will complete a number of post- inspection activities including reviewing the results of the laboratory analysis of the water samples, preparing and distributing the inspection report, and monitoring that the owner/operator complies with all mandatory abatement measures resulting from the inspection.

Communications Ministry inspectors will communicate with key stakeholders (owner, operator, manager, Medical Officer of Health, Conservation Authority, etc) about the inspection results. They will do this by sharing copies of the inspection report and through discussions about inspection results. Prior to the official release of the report, the inspector may contact the owner or operator should the inspector have any questions about the contents of the report.

6 Inspection Activities

6.1 Source Document Review Prior to the onsite inspection, inspectors will review control documents to identify any potential issues with the source of drinking water. They will review the Certificate of Approval to familiarize themselves with the water system and to confirm what equipment and treatment are used. They will verify, through a review of the Permit to Take Water and the quarterly reports,


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that water systems are staying within the allowable limits on the amount of water they are permitted to take. Inspectors will also review “Ground Water Under the Direct Influence of Surface Water” (GUDI) assessments where one“ has been completed in order to familiarize themselves with conditions affecting the source of ground water. Inspectors will also review ministry records to confirm whether any adverse results have been reported by the water system since the last inspection.

Physical Inspection of the Source/suDply of Water The sourcelsupply of water will be confirmed and visually inspected, including an inspection of each well head or surface water source, for visual sources of contamination.

Best Practices: In addition to verifying that legal requirements are being met, inspectors may also check for best practices. Examples of best practices with respect to the source of drinking water include: a Checking whether raw water monitoring is done for parameters beyond those required by the

Certificate of Approval. . Checlung flow records against maximum permitted takings and determining whether the annual average day flow exceeds 80% of the capacity of the plant. If so, the inspector will include in the inspection report that the plant is nearing design capacity.

6.2 Treatment MOE inspectors will continue to inspect municipal water treatment plants. These activities are mostly unchanged from previous inspections prior to the development of this Protocol. Inspectors will assess practices that will directly effect the operation of the plant and ultimately the quality of the water. Inspectors will also confirm that the treatment is effective by ensuring the plant is operating in accordance with all legal requirements and is capable of continuously producing potable water.

Document Review Inspectors will review treatment plant procedures, criteria and documentation related to compliance with legal requirements relating to the operation of the treatment plant. For example, the inspector will familiarize themselves with what is adequate disinfection based on requirements, what is the capacity of treatment facilities and capability of the system to meet design criteria, operation and maintenance procedures, storage of chemicals, turbidity spikes after back-washing and in-plant cross connection controls.

Inspectors will review operator records to ensure that water entering the distribution system is disinfected in accordance with Ministry requirements. They will also confirm that operator logs meet the legal requirements for record keeping. They will also cross check operator records with ministry records to confirm that adverse results were reported as required by regulation. They will confirm that emergency response plans exist and are posted in municipal drinking water treatment plants.

Municipal Drinhng Water Inspections Protocol Overview 8

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[COUNCIL MEETING 1 7 JUN 0 3 '03

Physical Inspection The inspector will review all the unit treatment processes at the plant, including but not limited to, pre-chlorination, flash mixing, coagulation, flocculation, sedimentation, filtration, disinfection, chemical feed systems, controls, waste water treatment, taste and odour control. Inspectors will confirm that equipment (settling tanks, chlorinators, analyzers, alarms etc) required by the Certificate of Approval has been installed and is operational. They will check the overall maintenance and condition of the treatment facility by observing the cleanliness and general repair and determine whether the operators know and understand facility procedures. They will also collect raw and treated water samples for laboratory analysis for audit purposes.

Best Practices Inspectors will note (for information purposes) any established goaldstandards that exceed ministry requirements. For example, some facilities may have set internal standards for turbidity that are more stringent than those set by the ministry. The goals and standards established by treatment facilities might be examples of management practices which may be useful in other simi!ar facilities.

6.3 Distribution

The purpose of inspecting the distribution system is to confirm that the distribution system is capable of continuously delivering potable water to the consumer.

Document Review Part of the inspection of the distribution system includes reviewing maintenance schedules, standard operating procedures, maintenance and operational logs, as well as other general observations that indicate a well-run and managed facility. Inspectors will confirm whether all monitoring and reporting is being done in accordance with the regulation. They will also confirm what security measures exist around water storage facilities.

Phvsical Inspection Inspectors will confirm whether new or repaired water mains are lsinfected in accordance with recognized standards. Inspectors will verify that that adequate monitoring of the distribution system is done by the owner; e.g., ensuring chlorine residuals are maintained. The inspector will also physically inspect components of the distribution system and take samples.

Best Practices Inspectors may review customer-metering practices, if they exist. They may also confirm that operators are monitoring the reliability of transmission lines to ensure they can provide a continuous supply of water.


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6.4 Monitoring, Reporting and Notification and Laboratory Services Inspectors will ensure that the owner/operator is fulfilling all the monitoring requirments in accordance with regulations, policies and established standards, including continuous recording of water parameters on-site, continuous sampling and appropriate procedures. They will also confirm that the lab analysis is being done by a lab that is properly accredited. During the inspection, the inspector will check that water quantities and quality are being monitored, and verify that the facility is actively managing the sampling processes and acting on the results.

Monitoring The inspector will also confirm through interviews and document review, that the results of monitoring and/or continuous analysis are being assessed and acted on according to regulation, policy and management practices. The inspector will do that by confirming that the sampling program is in compliance with regulations, and any other criteria required under orders, or Certificates of Approval. The inspector will verify that equipment for continuous analysis of required parameters has been provided, and that the continuous analysis equipment is functioning properly. The inspector will also note any special circumstances that may necessitate a higher frequency of sampling (e.g. source conditions).

Reporting: and Notification The inspector will confirm that adverse results are reported in accordance with all legal requirements. They will also confirm that adverse results are responded to and appropriate corrective actions are carried out as required by regulation.

Laboratory Analvsis In conjunction with the MOE Laboratory Inspection Group, Drinlung Water Inspectors will verify that the laboratory analysing the samples is accredited for the parameters being analyzed, and that the owner/operator, along with the laboratory, are fulfilling their responsibility to notify appropriate parties of adverse conditions, in order that all necessary measures can be taken to protect human health.

Best Practices Examples of best practices include:

water systems that are monitoring for additional, non-required parameters (e.g. giardia); confirming whether the operator had identified conditions that are most challenging to the operation of the system and a plan to resolve or treat them has been developed.

6.5 Water System Management Practices Reviewing water system management practices, whether to monitor compliance or to confirm the existence of sound practices is important to the safety of drinking water. Generally, inspectors will be looking for management practices that relate to having in place the appropriate procedures and systems to ensure that MOE requirements are met, and to ensure that the system responds appropriately to changing demands for drinking water. In particular:

Customer Service: The inspector will determine that the owner/operator has a process in place for tracking, investigating and responlng to drinking-water-system-related complaints as


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required in Permits to Take Water and Certificates of Approval. In addition, the inspector will review the logs to determine if there are indicators of adverse water conditions or other issues that were the cause of the complaints.

Communication: The ownedoperator of the drinking water system must ensure that results, performance, orders, approvals, and conditions of the drinking water system are effectively communicated to the various stakeholders (e.g. ministry, public etc.) in a timely manner as per Regulation 459/00. The inspector will confirm that the owner/operator conforms to regulatory requirements and is managing communication activities effectively to notify stakeholders of required dnnking water system information.

Security: The inspector will assess whether the owner/operator of the drinking water system has taken the required measures to secure the various components of the drinking water system against physical intrusion. The inspector also will determine whether the owner/operator is managing security requirements effectively, thereby minimizing potential security threats to the drinking water system.

Human Resources: The inspector will determine whether operators are trained and appropriately certified in accordance with 0. Regulation 435/00. The inspector will also determine whether the owner has established operating procedures and manuals that are readily available to staff and that the owner has appropriate record keeping procedures.

Best Practices Examples of best practices that the inspector may ask about may include:

. Whether the operator has an operational (strategic) plan for the water system. Water conservation plans Human resources and training plans to ensure operators are well trained.

7 Annual Inspections

The ministry has committed to inspecting every municipal drinking water system annually.

7.1 Unannounced vs. Announced Inspections At least one inspection of every municipal drinking water system in every three-year period will be unannounced. An unannounced inspection is one where the owner and operator have no advance notice of the inspection.

The ministry expects that even though it is unannounced, an operator will accompany the inspector on the inspection, as the inspector will not be able to complete the inspection without some assistance from the operator. In some small communities, where there is only one operator, or a part-time operator, the inspector runs the risk of f i n l n g no operator available. The inspector will assess each situation at the time and may decide to conduct as much of the inspection as she/he can without an operator, or call as he/she is leaving for the inspection to arrange to meet an operator at the facility.


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Additional unannounced inspections (over the three-year cycle) may be carried out on a system considered to pose a risk to the safety of water, or where there is suspicion that records or practices may change prior to an announced inspection.

7.2 Follow-Up Inspections The follow-up inspection focuses on the particular areas where “deficiencies” were identified during the annual inspection. The purpose of a follow-up inspection is to verify that the owner has taken the necessary corrective action. The Safe Drinking Water Act will require annual inspections where a significant deficiency was identified in the previous inspection and a follow- up inspection becomes a legal requirement. Ministry policy requires inspectors to re-inspect within one year of the on-site inspection in which deficiencies that pose a significant risk are identified.

8 Summary

In summary, this Overview of the Drinking Water Inspections Protocol is a key step in addressing the recommendations of the O’Connor Report. The ministry is implementing a rigorous and comprehensive approach in the inspection of water systems that focuses on the source, treatment, distribution and management practices, as well as the promotion of best practices. The Ministry of the Environment believes this approach will lead to better protection of drinking water in Ontario. The Protocol will be updated as required by changing conditions and new information and by regulatory changes such as the new Safe Drinking Water Act and associated regulations.


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COUNCIL MEETINti I f JUN U 3 U3 A p p e n d i x G

Ministry of Ministere de the Environment I' Environnement

135 St. Clair Avenue West Toronto, ON M4V 1 P5

135 avenue St. Clair ouest Toronto, ON M4V 1P5

May 15,2003

MEMORANDUn

@ Ontario i

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i To: Heads of Council c, i C+' of Kii:@j;Z;; Chief Administrative Officers Water Treatment Plant Operators Ontario Clean Water Agency

-.s,

FROM: Doug Barnes Assistant Deputy Minister Integrated Environmental Planning Division

I am writing to advise you that the Ontario government is moving ahead on its new, strengthened framework for drinking water protection by bringing the new Drinking- Water Systems Regulation (Ontario Regulation 170/03) into effect on June 1,2003.

The following information is attached to assist you in learning about the new regulation and its requirements:

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A table highlighting the key new regulatory requirements A compendium to the Drinking-Water Systems Regulation which provides an overview of the contents of the regulation and its schedules A copy of the Drinking-Water Systems Regulation (0. Reg. 170/03) and supporting regulations A backgrounder containing a general description of the requirements

A series of technical updates detailing specific aspects of the regulation will be sent to you shortly.

As you know, this new regulation combines existing requirements related to drinking-water systems that were part of O.Reg. 459/00 and 0.Reg. 505/01 with new requirements derived from the new Safe Drinking Water Act, 2002 (SDWA) and the recommendations of Commissioner Dennis O'Connor in his Report of the Walkerton Inquiry. This new regulation replaces 0. Reg. 459/00 and 0. Reg. 505/01.


It is critical to note that the deadline for municipal water works to meet minimum treatment requirements as originally established in O.Reg. 459/00 and extended in O.Reg. 213/02 is continued in the Drinking-Water Systems Regulation. That is, the deadline for minimum treatment for municipal water works currently included in 0. Reg. 459/00 is July 1,2003. Certificates of Approval may contain requirements with deadlines other than July 1,2003. In cases where the deadline has already been extended beyond July 1,2003, the requirements specified in the approval still apply. In cases where the deadline is earlier and the owner wishes to have the deadline extended, questions can be directed to the Environmental Assessment and Approvals Branch at 1-800-461-6290 or (416) 314-8001.

Many of you participated in the consultations on the draft regulation, as well as on the previous drinking-water regulations and the new SDWA. Your input played an important part in the development of this new regulation.

Here are the key features of the Drinking-Water Systems Regulation as it applies to municipal water works.

Categories of Municipal Drinking-Water Systems: There are four categories of municipal systems (refer to Section 1 of the regulation):

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large municipal non-residential systems 0 small municipal non-residential systems

large municipal residential systems defined as serving more than 100 private residences small municipal residential systems defined as serving between six and 100 private residences

Treatment deadlines for the non-residential categories of water systems vary from July 2004 to December 2006, depending on the source water supply (refer to Schedule 2 of the regulation). Please note: An approval issued after August 1,2000 that sets a date that is after Juhe I , 2003 to install treatment equipment prevails over the deadlines set out in the regulation, whether the date in the approval is earlier or later then the deadline in the regulation.

Sampling and Testing: There is a new microbiological testing and sampling regime for the new municipal categories (refer to Schedules 10 and 1 1 of the regulation). And, in addition, chemical sampling frequencies have been changed for all municipal water works (refer to Schedule 13).

Exemptions: The Drinking-Water Systems Regulation provides an exemption from having to obtain approvals for the two municipal non-residential water system categories (refer to Section 9 of the regulation). There are additional exemptions from approvals for specific alterations or changes to existing water systems (also in Section 9).

2

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i 1:

Regulation for Ontario Drinking Water Quality Standards: A separate regulation containing Ontario Drinking Water Quality Standards (Ontario Regulation 169/03) will come into effect at the same time as the Drinking-Water Systems Regulation (Le., June 1,2003). A copy is attached.

Reporting: Quarterly reports have been replaced with annual reporting in the new regulation.

Engineer’s Report: As promised and detailed in a letter dated February 2 1 , 2003, we have extended the submission period of second and subsequent Engineer’s Reports, required under Section 13 of the former Ontario Regulation 459/00, from within a three year period to within a five year period. If you are required to submit a second Engineer’s Report, that report will not be due on the date specified in Condition 6 of your Consolidated Certificate of Approval, but will instead be due within five years of your original Engineer’s Report submission date.

While the above points identify some of the changes and new requirements being brought into effect, many features of the previous regulatory system remain in force; in particular, the mandatory requirements for the reporting of adverse results.

Also effective June 1 , 2003, various sections of the Safe Drinking Water Act pertaining to the Drinking Water Systems Regulation, come into effect. These sections include 1,2, 3 (1)-(3), 6- 10, 11 (1,2), 18,20,31,32,34-39,41,45,51-53,54 (l), (3)-(6), 55-61, 81-120 and 122-170.

Thank you for your cooperation and assistance in the transition to, and implementation of, Ontario’s new regulatory framework for drinking water. I assure you that ministry staff are ready to assist you, your staff and your customers and ratepayers.

A.list of water testing laboratories and a treatment guide detailing treatment options are available on the ministry’s Web site (www.ene.eov.on.ca) or by calling the Public Information Centre at 1- 800-565-4923 or (416) 325-4000.

Doug Barnes Assistant Deputy Minister

Encls.

Pour obtenir une version franqaise de ce document, veuillez tCl6phoner au 41 6 325-4000 ou au 1- 800-565-4923

3

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REPQRT TO UTlLlTlES KINGSTON

QR AND CkTY COUNCIL utilities kingston water sewer gas electricity networks all your utility servicas under one roof

1425445 ONTARIO LIMITER

Subject:

Date of Meeting:

From:

Prepared By:

Franchise Agreement between Union Gas and the City of Kingston

June 3, 2003

J. Keech, President & C.E.O.

J. Keech, President & C.E.O.

Recommendation -

It is recommended that Council not pass the Authorizing By-Law requested in the Draft Procedural Order of the Ontario Energy Board.

And further;

That the Corporation of the City of Kingston not enter into the Model Franchise Agreement.

PurDose

In 1997, the Franchise Agreement with the former Township of Pittsburgh expired. In recognition of the imminent dissolution of the Township and creation of the new City of Kingston, the Transition Board requested and Union Gas (then Centra Gas) agreed to a one (1) year extension of the agreement to permit the new City an opportunity to evaluate its’ options. At the end of the extension in 1998, Union Gas approached the City of Kingston for a fifteen year renewal of its’ natural gas Franchise Agreement. The new City completed a business case analysis and determined that it would be in their best interest to operate the natural gas utility in the former Township directly. This would support the integration efforts of the City’s newly formed utility department, leading to improvements in customer service, savings for its’ citizens, local control over a very essential public utility and financial return to the municipality. As the former PUC had operated a gas utility in the central section of the old City dating from 1904, the expertise for such an operation existed within the new city. This item appeared before Council in October of 1998.

In late 1998, Council passed the following motion;

WHEREAS the franchise to distribute natural gas to customers in the Pittsburgh Township portion of the old city has expired; and

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WHEREAS Council has a duty to ensure that the residents of the City have access to the lowest cost, safe and reliable supply of gas; and

WHEREAS Council views the provision of low cost natural gas to be necessary to promote economic development; and

WHEREAS Council believes that competition, even among regulated utilities is good for consumers and the City; and

WHEREAS the Council is satisfied that the rates for gas in the former Township of Pittsburgh under the current system are higher than those charged by Utilities Kingston; and

WHEREAS Council is satisfied that the comparison of rates is fair and on a level field with no subsidy by taxpayers in either instance and with a reasonable rate of return to the investor;

NOW THEREFORE BE IT RESOLVED that; the Council of the City of Kingston agrees to take all necessary steps to ensure that consumers of natural gas within the Pittsburgh area receive the lowest cost, safe and reliable supply of natural gas, up to and including the acquisition of the existing assets related to the supply of natural gas in the former Township of Pittsburgh.

From October 1998 until December of 2002 this issue came before Council on several occasions. In parallel with the reports to Council, staff and Legal Counsel have exhausted several steps in an attempt to repatriate the franchise in the former Township of Pittsburgh. The following is a brief summary of these steps and timelines:

Late 1997

Centra Gas requests Transition Board renew the Franchise to provide gas distribution services in the former Township of Pittsburgh

Action - Agreed to a I year term only

Aucrust 1998

Union Gas requests Council grant a 15 year Franchise Agreement

October 6,1998

First Report to Council ‘In Camera’

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November 30 1998

Motion as outlined on page 1-2

Business Case was concluded

Februarv 1999

Initial Hearing in front of Ontario Energy Board regarding the Board’s Jurisdiction

Mav 1999

Initiate Negotiations with Union Gas

June 15 1999

City Council Passes By Law to expropriate Union Gas’s assets

Auqust 6,1999

Province Appeals Section 62 of the Public Utilities Act - removing the City’s ability to expropriate the assets

December 1999

Negotiations are terminated

Hearing at the Ontario Energy Board

June 23.2000

Decision of the Ontario Energy Board is handed down - stated that the Ontario Energy Board did not have jurisdiction to impose the order requested

June 29,2001

Appeal to Divisional Court

September 4,2001

Appeal Dismissed by Divisional Court

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COUNCIL MEETING 1 7 JUN 0 3 '03 Report to Mayor and City Council 1425445 Ontario Limited 2003-06-03

Page 4

October 1,2002

Appeal to Appeals Court

October 2002

Appeal Dismissed

December 9,2002

Applied to Supreme Court of Canada for Leave to Appeal

March 2003

Leave to Appeal Dismissed

April 2003

Ontario Energy Board submits standard Franchise Agreement for a term of 20 years to Council for signing.

It can be seen from the summary above that this has been an extensive and exhaustive process. It can be segmented into three main activities. The first would be the negotiation phase in which over a period of more than half a year, we attempted to reach an amicable settlement with Union Gas. The next was the hearing before the Ontario Energy Board, where in their decision they indicated that they did not have the jurisdiction to impose the order requested by Kingston. The third stage has been the legal appeal of to the decision of the Ontario Energy Board. It has been our belief that the Board has the power to impose any order that is in the public's interest, including the order that was requested by Kingston. In fact, any other interpretation creates a perpetual Franchise Agreement in every Ontario municipality with an existing agreement and provides no recourse for this monopoly.

The other substantial event that occurred during this process was the elimination of Section 62 of the Public Utilities Act by the Provincial Government as a result of intense pressure from Union Gas, which significantly limited our options in achieving our goal. This action by the province has contributed to the creation of a perpetual franchise.

Prior to concluding this process, it is important to revisit why the municipality in 1998 and since that time, has chose not to grant a renewal of a long term franchise agreement to a third party. There have been and remains, five fundamental reasons for this direction. These include the continued development of its integrated utility (Utilities Kingston), local control of a very important public utility, lower rates for its citizens, ongoing returns to the

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COUNCIL MEETING 1 7 JUN 0 3 '03 Report to Mayor and City Council 1425445 Ontario Limited 2003-06-03

municipal capital infrastructure reserve fund, and preventing the imposition of a perpetual franchise not only in Kingston but in every municipality in the province of Ontario.

The City of Kingston is unique in the depth of its development of an integrated utility service. The provision of these integrated services provides the significant advantages of improved customer service and savings to our customers (one call, one crew, one bill), and eliminates confusion created by multiple utility providers. The termination of the franchise in the former Township of Pittsburgh was pursued to expand these advantages to those residents of the new city.

In addition local control of vital public utilities, including natural gas, allows key decisions to be made locally by elected public officials in contrast to service providers who may not reside in our province. This can be crucial in achieving a balance between rates, return on investment, and system expansion for economic development and service.

The local distribution portion of the natural gas rates charged by Utilities Kingston has not increased since 1994. It continues to remain lower than that charged by Union Gas for the vast majority of our customers.

All natural gas companies operating in the province make a return for their owners or shareholders. Returns from the gas utility managed by Utilities Kingston go directly into the municipal capital reserve fund. Since amalgamation, this return has amounted to more than $15,000,000.00. Returns on the natural gas assets in the two former townships flow out of the municipality.

The ruling in this case by the Ontario Energy Board, where they ruled that the Board did not have the jurisdiction to grant the City of Kingston's request, and thus were required to renew or extend the term of the right of Union Gas to operate works for the distribution of gas in the former Pittsburgh Township, has in effect created a perpetual franchise. There appears now to be no means for a municipality to terminate or transfer such agreements going forward resulting in an ongoing monopoly for the incumbent gas distribution company in every municipality in the province. This situation is unacceptable .

In October of 1998 when Council approved the motion included at the beginning of this report, they also approved an initial estimated budget. Periodic reports on the status of expenditures have been brought back to Council during this process. To date, expenditures have totaled $728,000.00. This does not include costs for Union Gas which the court has indicated to be our responsibility. These expenditures have been funded through the Operating Budget of the natural gas utility managed by Utilities Kingston, which is in turn funded solely by gas rates. The additional expenses for Union Gas will be funded from the 2003 Gas Operating Budget. The initial proposal was that

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COUNCIL MEETING 1 7 JUN 0 3 ’03 Report to Mayor and City Council 1425445 Ontario Limited 2003-06-03

Paae 6 Rer>ort UK-29-034

the return to the municipality would be reduced by amount spent on this on a yearly basis, but this has not been necessary. The expenditures have been over a five year period.

In April 2003, following dismissal of our request for Leave to Appeal to the Supreme Court of Canada, the Ontario Energy Board proceeded to issue Procedural Order No. 4, a copy of which is included as Appendix A. In this, the Draft Order states;

“THE BOARD THEREFORE ORDERS THAT:

1. The terms and conditions upon which, and the period for which, the Corporation of the City of Kingston is by by-law, to grant Union Gas Limited the right to construct and operate works for the distribution of gas, and the right to extend and add to the work, in the geographic area of the City of Kingston that was formerly the Township of Pittsburgh, in the franchise agreement attached as Appendix A, are approved.

2. The assent of the municipal electors of the City of Kingston to the by-law is not required”

Attachments: Union Gas Limited - Procedural Order No. 4

I Utilities Kingston

/ / Bert Meuder

I Chief Administrative Officer

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COUNCIL MEETING 1 7 JUN 0 3 '03 Ontario Energy Board P.O. Box 231 9 26th. FlOOf 2300 Yonge Street Toronto ON MLP 1 E4

Facsimite: 41 6- 440-7656 TON free: 1-888.632.63273

Telephone: 416- 481-1967

Commission de I'Energie de I'Ontario C.P. 2319 26e &age 2300, rue Yongs Toronto ON M4P 1 E4 Telt5phone; 416- 481 -1 967 TMcopieur: 4t 6- 440-7656 Nurnbro sans frais: t-888-632-6173

Writer's direct line: 416-440-7605

BY PRIORITY POST May 5,2003

Ms. Christine Jackson Counsel for Union Gas Limited 50 Keil Drive North Chatham, Ontario N7M 5M1

Mr. Glenn Leslie Solicitor for Union Gas Blake, Cassels & Graydon Box 25, Commerce Court West 28'' Floor, 199 Bay Street Toronto, Ontario M5L 1A9

Dear Ms. Jackson and Mr. Leslie:

Re: Union Gas Limited - Procedural Order No. 4 Franchise Approval - the City of Kingston Board File No. E.B.A. 825

The Board has today issued its Procedural Order No. 4 in the above matter and an executed copy is enclosed herewith.

r

istant Board Secretary

Enclosure

cc: Intervenors 0 bse rver

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Commission de I’hergie de IPntario

(=OUNClL MEETING 1 7 JUN 0 3 ‘03 Ontario Energy Board

Ontario

E.B.A. 825

IN THE MATTER OF the Municipal Franchises Act, Ft.S.O,I 990, c. M.55, as amended;

AND IN THE MATTER OF an application by Union Gas Limited for an order approving the terms and conditions upon which the Corporation of the City of Kingston is, by by-law, to grant Union Gas Limited the right to construct works and operate works for the distribution of gas; the right to extend and add to the works; including the period for which such rights are granted all in the area of the City of Kingston that was formerly the Township of Pittsburgh, the period for which such rights are granted;

AND IN THE MATER OF an application by Union Gas Limited for an order dispensing with the assent of the municipal electors of the Kingston in respect of the by-law.

PROCEDURAL ORDER NO. 4

Union Gas Limited (“Union”), formerly Centra Gas Ontario inc., filed an application (the “Application“) dated July 31, 1997 with the Ontario Energy Board (the “Board“), for

approval of a municipal franchise agreement for the right to construct and operate

works for the supply of gas in the former Township of Pittsburgh. The former Township

of Pittsburgh is; now part of the City of Kingston (“Kingston”). Union has a Certificate of

Public Convenience and Necessity for the former Township of Pittsburgh (F.B.C. 59), Kingston intervened and opposed Union’s application, The Board assigned this

Application Board File No. E.B.A. 825.

A hearing of the Application was held commencing December 1 1, 1999. The Board

issued its Decision with Reasons and Order dated June 23, 2000 approving Union’s Application. Paragraph 4.0.24 of the Decision stated “Once the 2000 Model Franchise

Agreement has been approved and issued by the Board, the Board will issue an order

renewing the right of Union to operate works for the distribution of gas in the geographic 122

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COUNCIL MEETING 1 7 JUN 0 3 ’03

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area of the City of Kingston that was formerly the Township of Pittsburgh for the period

and on the t e r m and conditions set out in the 2000 Model Franchise Agreement.”

Kingston appeisled the Board’s Decision with Reasons and Order to the Divisional

Court. Kingston’s appeal was dismissed by the Divisional Court. A subsequent appeal

to the Court of Appeal was also dismissed as was a motion for leave to appeal to the

Supreme Court of Canada. Since the appeal process is now complete, it is the intent of

the Board to issue its order in accordance with the Board’s Decision with Reasons

dated June 23,2000. A copy of the draft order is attached as Appendix 1.

THE BOARD THEREFORE ORDERS THAT:

1. The Corporation of the City of Kingston and any other intervenor may file written

submissions on the draft order with the Board and deliver them to the other

parties nu later than May 14,2003.

2. Union Gas Limited may file responding submissions with the Board and deliver

them to the other parties no later than May 21, 2003.

3. All filings with the Board must include ,9 Drinted copies and one,_copv in

electronic form. and must be received bv the Board bv 4.45 p.m, on the

stated date. The copy provided in electronic form should be a copy of the file

from which the document was printed. In addition, all parties should make every

effort to provide one electronic version of the file in Wordperfect 8 or Quattro Pro

8 file foirmat or, if that is not practical, in Microsoft Word or Excel file format,

ISSUED at Toronto, May 5,2003

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APPENDIX "I" TO BOAFIDPROCEDURALORDER

NO. E.B.A. 825 DATED MAY 5,2003

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COUNCIL MEETING 1 7 JUN 0 3 ’03 Ontario Energy Board

Commission de I’&etgie de I’bntario

E.B.A. a25

IIU THE MATTER OF the Municipal Franchises Act, Ft.S.O.1990, c. M.55, as amended;

AND IN THE MAlTER OF an application by Union Gas Limited for an order approving the terms and conditions upon which the Corporation of the City of Kingston is, by by- law, to grant Union Gas Limited the right to construct works and operate works for the distribution of gas; the right to extend and add to the works; including the period for which such rights are granted all in the area of the City of Kingston that was formerly the Township of Pittsburgh. the period for which such rights are granted;

AND IN THE MAlTER OF an application by Union Gas Limited for an order dispensing with the assent of the municipal electors of the Kingston in respect of the by-taw.

Before:

A. Catherina Spoel Presiding Member

DRAFT ORDER

Union Gas Limited (‘‘Union”), formerly Centra Gas Ontario Inc., filed an application (the

“Application“) dated July 31, 1997 with the Ontario Energy Board (the “Board”), for approval of a rnunicipai franchise agreement for the right to construct and operate

works for the suppiy of gas in the former Township of Pittsburgh, The former Township

of Pittsburgh is; now part of the City of Kingston (“Kingston”). Union has a Certificate of Public Convenience and Necessity for the former Township of Pittsburgh (F.B,C. 59).

Kingston intervened and opposed Union’s application. The Board assigned this

Application Board File No. E.B.A. 825.

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A hearing of the Application was held commencing December 1 1, 1999. Written

argument was submitted by the parties on January 21,2000 with oral submissions

completed on February 2,2000. The Board issued its Decision with Reasons and

Order on June 23, 2000 approving Union’s Application. Paragraph 4.0.24 of the Decision stated Once the 2000 Model Franchise Agreement has been approved and issued by the Hoard, the Board will issue an order renewing the right of Union to

operate works for the distribution of gas in the geographic area of the City of Kingston that was formerly the Township of Pittsburgh for the period and on the terms and

conditions set lout in the 2000 Model Franchise Agreement.”

Kingston appe’aled the Board’s Decision with Reasons and Order to the Divisional

Court. Kingston’s appeal was dismissed by the Divisional Court. A subsequent appeal

to the Court of Appeal was also dismissed as was a motion for leave to appeal to the

Supreme Court of Canada. Since the appeal process is now complete, it is now necessary for the Board to issue its order in accordance with the Board’s Decision with

Reasons dated June 23,2000,

THE BOARD THEREFORE ORDERS THAE

1. The terms and conditions upon which, and the period for which, the Corporation

of the City of Kingston is by by-law, to grant Union Gas Limited the right to construct and operate works for the distribution of gas, and the right to extend

and add to the works, in the geographic area of the City of Kingston that was

formerly the Township of Pittsburgh, in the franchise agreement attached as

Appendix A, are approved.

2. The assent of the municipal electors of the City of Kingston to the by-law is not

required

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ISSUED at Toronto, Draft -May 5,2003

ONTARIO ENE- F Y BOARD

AT A y k a n t Board Secretary

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APPENDIX "A" TO D R A R BOARD ORDER

NO. E.B.A. 825 DRAFT - DATED MAY 5,2003

DRAFT 1 2 8

APtouo I % 4 Page I of 10

Appendix '73"

2000 MODEL FRANCHISE AGREEMENT (Revised)

THIS AGREEMENT effective. this day of 20

BETWEEN:

hereinafter calied the "Corporation"

hereinafter called the "Gas Company"

WHEEAS the Gas Company desires to distribute, store and transmit gas in the Municipality upon the terms and conditions of this Agreement;

AND WHEREAS by by-law passed by the Council of the Corporation (the "By-law"), the duly authorized officers have been authorized and directed to execute this Agreement on behalf of the Corporation;.

!

THEiREFORE the Corporation and the Gas Company agree as foIIows:

Part 1 - Definitions

In this Agreement:

"decommissioned" and "decommissions" when used in connection with parts of the gas system, mean any parts of the gas system taken out of active use and purged in accordance with rhe 'applicable CSA standards and in no way affects the use of the term 'abandoned' pipeline for the purposes of the Assessment Act;

"EngineerRoad Superintendent" means the most senior individual employed by the Corporation with responsibilities for highways within the Municipality or the person designated by such senior employee or such other person as may from time to time be designated by the Council of the Corporation;

"gas" means natural gas, manufactured gas, synthetic natural gas, liquefied petroleum gas or propane-air gas, or a mixture of any of them, but does not include a liquefied petroleum gas that is distributed by means other than a pipeline;

12

of 10

t ”gas system” means such mains, plants, pipes, conduits, services, valves, regulators, curb boxes, siations, drips or such other equipment as the Gas Company may require or deem desirable for the distribution, storage and transmission of gas in or through the Municipality;

“highway” means all common and pubIic highways and shall include any bridge, viaduct or structure: forming part of a highway, and any public square, road allowance or waIkway and shaIi indude not only the travelled portion of soch highway, but also ditches, driveways, sidewalks, and sodded areas forming part of the road allowance now or at any time during the term hereof under the jurisdiction of the Corporation;

“Model Franchise Agreement” means the Form OY agreement which the Ontario Energy Board uses as a standard when considering applications under the Municipal Franchises Act. The Model Franchise Agreement may be changed from time to time by the Ontario Energy Board;

’

”Municipality” means the territorial limits OF the Corporation on the date when this Agreement takes effect, and any xemtory which may thereafter be brought within the jurisdiction of the Corporation;

“Plan” means the plan described in Parasraph 5 OF this Agreement required to be Filed by the Gas Company with the EngineedRoad Superintendent prior to commencement of work on the gas system; and

whenevesr the singular, masculine or feminine is used in this Agreement, it shall be considered as if the plural, Feminine or masculine has been used where the coniext of the Agreema1 so requires.

Part 11 - Rights Granted

To provide gas service:

The cornsent of the Corporation is hereby given and granted to the Gas Company to distribute, store and transmit gas in and through the Municipality to the Corporation and to the inhabitants of the Municipality.

The consent of the Corporation is hereby given and granted to the Gas Company to distribute, store and transmit gas in and through the Corporation and to the inhabitants of those local or lower tier municipalities within the Municipality from which the Gas Company has a valid franchise agreement for that purpose.

* Footnote: Choose one only,

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I

Page 3 of 10 COUNClL MEETING 1 7 JUN 0 3 p3 Appendix "B"

3. To Use Highways.

Subject to the terns and conditions of this Agreement the consent of the Corporation is hereby ;given and granted to the Gas Company to enter upon all highways now or at any time hereafter under the jurisdiction of the Corporation and to lay, construct, maintain, reptace, remove, operate and repair a gas system for the distribution, stomtge and transmission of gas in and through the Municipality.

4. Duratio:n of Agreement and Renewal Procedures.

(it) If the CoTorzxion has not previously received gas distribution services, the rights hereby ' given arid ganted shall be %ora term of20 years from the dace of Find passing of the By-law.

(b) If the Corporation has previously received gas distribution services, the rights hereby given and granted shall be for a term of 20 years from the date of final passing of the By-law provided that, if during the 20-year term this Agreement, the Model Franchise Agreement is changed, then on the 7' anniversary and on the i4th anniversary of the date of the passing of the By-law, this Agreement shall be deemed to be amended to incorporate any changes in the Model Franchise Agreement in effect on such anniversary dares- Such deemed amendments shall not apply to alter the 20-year term.

(c) At any time within two years prior to the expiration of this Agreement, either party may give notice tcr the other that i t desires to enter inro negotiations for a renewed franchise upon such terms and conditions its may be agreed upon. Until such renewal has been settled, the terms and conditions of this Agreement shall continue, notwithstanding the expiration of this Agreement. This shall not preclude either party from applying to the Ontario Energy Board for s renewal of the Agreement pursuant to section 10 of the Municipal Franchises Act.

I ' 1 . ; I-. I .+'

Part III - Conditions

5 - Approval of Construction

(a) The Gas Company shall not undereake any excavation, opening or work which will disturb or interfere with the surface of the travelled portion of any highway unless a permit therefor has first been obtained from the EngineerRoad Supeiiincendent and ad1 work done by the Gas Company shall be to his satisfaction.

(b) F'riot to the cornmencement of work on the gas system, or any extensions or changes to it (except service laterals which do not interfere with municipal works in the highway), the Gas Company shall file with the EngineerRoad Superintendent aPlan, satisfactory to the EngineerRoad Superinrendcnt, drawn to scale and of sufficient

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Appendix "B"

detail considering the complexity of the specific locations involved, showing the highways in which i t proposes to lay its gas system and the particular parts thereof i t proposes to occupy.

The Plan fiIed by the Gas Company shall include geodetic information for a particular Idcation:

(i) where circumstances are cornpiex, in order to facilitate known projects, including projects which are reasonably anticipated by the Engineerrnoad Superintendent, or

(ii) when requested, where the Corporation has geodetic infomation for its own services and all others at the same tocation.

'The EngineerRoad Superintendent may require sections of the gas system to be laid at greater depth than required by the latest CSA standard for gas pipeline systems to facilitate known projects or to correct known highway deficiencies.

Prior to the commencement of work on the gas system, the EngineerRoad Supesintendent must approve the location of the work as shown on the PIan filed by ,the Gas Company, the timing Qf the: work and any terms and conditions relating to iche installation of the work.

:In addition to the requirements of this Agreement, if the Gas Company proposes to a h any part of the gas system to a bridge, viaducr or other structure, if the EngineedRoad Superintendent approves this proposal, he may require the Gas Company to comply with special conditions or to enter into a separate agreement as a condition of the approval of this part of the construction of the gas system.

'Where the gas system may affect a municipal drain, the Gas Company shall also file ;a copy of the Plan with the Corporation's Drainage Superintendent for purposes of the Drainage Act, or such other person designated by the Corporation as responsible for the drain.

The Gas Company shall not deviate from the approved location for any part of the a pas system unless the prior approval of the Engineerrnoad Superintendent to do so is received.

The Engineernoad Superintendent's approval, where required throughout this Paragraph, shaII not be unreasonably withheld.

The approval of the Engineerrnoad Superintendent is not a representation or warranty i1S to the stale of repair of the highway or the suitability of the highway for the gas system.

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Appendix "B"

6. As Built Rrawings

The Gas Company shall, within six months of completing the installation of any part of the gas system, provide two copies of "as built" drawings to the EnginserlRoad Superintendent. These drawings must be sufficient to accurately establish the location, depth (measurement between the top OF fhe gas system and the ground surface at the time of installation) and distance of the gas system. The "as built" drawings shall be OF the same quaIity as the Plan and, if the approved pre-constmction plan included elevations that were geodetically referenced, the %s bui It" drawings shaII similarly include elevations that are geodetically referenced. Upon the request of the EngineedRoad Superintendent, the Gas Company shal1 provide one copy of the drawings in an efectronic Format and one copy as a hard copy drawing.

7. Emergencies . . .

In the event of an emergency involving the gas system, the Gas Company shall proceed with the work required to deal with the emergency, and in any instance where prior approval of the EnginedRoad Superintendent is normally required for the work, the Gas Company shall use its best efforts to immediately notify the EngineedRoad Superintendent of the location and nature of the emergency and the work being done and, if it deems appropriate, notify the police force, fire or other emergency services having jurisdiction. The Gas Company shall provide the EngineerlRoad Superintendent with at least one 24 hour emergency contact for the Cas Company and shall ensure the contacts are current,

& Restorari on

The Gas Company shall well and sufficiently restore:, to the reasonable satisfaction of the EngineedRoad Superintendent, all highways,, municipal works or improvements which it may excavate or interfere with in the course of laying, constnrcting, repairing or removing its gas system, and shall make good any settling or subsidence thereafter caused by such excavation or interference. If the Gas Company fails at any time to do any work required by this Paragraph within a reasonabte period of time, the Corporation may do or cause such work to be done and the Gas Company shall, on demand, pay the Corporation's reasonably incurred, cuss, as certified by the EngineedRoad Superintendent.

,

9. Indemnification

The Gas Company shall at all times, indemnify and save harmless the Corporation from and against dl claims, including costs related thereto, for a11 damages or injuries incIuding death to any person or persons and for damage to any property, arising out of the Gas Company operating, constructing, and maintaining i t s gas system in 'the Municipality, or utilizing its

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Appendix “B”

gas system for the carriage of gas owned by others. Provided that the Gas Company shall not be required to indemnify or save harmless the Corporation from and againstclaims, including costs relilted thereto, which it may incur by reason of damages or injuries including death to any person or persons and for damage- to any properry, resulting from the negligence or wrongful act of the Corporation, ,its servants, agents or employees.

10. Insurance

(a) The Gas Company shall maintain Comprehensive General Liability Insurance in sufficient amount and description as shall protect the Gas Company and the Corporation from claims for which the Gas Company is obliged to indemnify the Corporation under Paragraph 9. The insurance policy shall identify the Corporation as an additional named insured, but only with respect to the operation of the named insured ([he Gas Company). The insurance policy shall not lapse or be cancelled without sixty (60) days’ prior written notice to the Corporation by the Gas Company.

The issuance of an insurance policy os provided in this Paragraph shall not be construed as reheving the Gas Company of liability not coveted by such insurance or in excess of the policy limits of such insurance.

Upon request by the Corporation, the Gas Company shall confirm that premiums for such insurance have been paid and that such insurance is in full force and effect.

(b)

( c )

11. Alternzdive Easement

1,. , p ’ p c. -<A,

The Corporation agrees, in the went of the proposed sale or closing of any highway or any part of P highway where there is a gas line in existence, to give the Gas Company reasonable notice of such proposed sale or closing and, if is feasible, to provide the Gas Company with easements over that part of the highway.proposed LO be soId or closed sufficient to allow the Gas Company to preserve any part of the gas system in its then existing locadon, In the event that such easements cannot be provided, the Corporation and the Gas Company shall share the cost of relocating or altedng the gas system to facilitatz continuity of g3.s service, as provided for in Pwagaph 12 of this A-mernent.

12. Pipeline ;Relocation

(a) If in the course of constmcting, reconstructing, changing, altering or improving any highway or any municipal works, the Corporation deems that i t is necessary to take up, remove or change the focalion of any part of the gas system, the Gas Company shall, upon notice to do so, remove andor relocate within areasonable period of rime

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Appendix "3 +'

such part of the gas system to a location approved by the Engineer/Road Superintendent.

(b) Where any part of the gas system relocated in accordance with this Paragraph is located on a bridge, viaduct or structure, the Gas Company shall alter or relocate that part of the gas system af its sole expense.

(c) Where any part of the gas system relocated in accordance with this Paragraph is located other than on a bridge, viaduct or structure, the costs of relocation shall be shared between the Corporation and the Gas Company on the basis of the total relocation costs, excluding the value of any upgrading of the gas system, and deducting any contribution paid to the Gas Company by others in respect to such relocation; and for these P U ~ ~ O S E S , the total relocation costs shall be the aggregate of the following:

the amount paid to Gas Company employees up to and including field supervisors For the hours worked on the project plus the cument cost of fringe benefits For these employees,

the amount paid For rental equipment whiIe in use on the project and an amount, charged at the unit rate, €or Gas Company equipment while in use on the project,

the amount paid by the Gas Company to contractors for work related to the project,

the cost to the Gas Company for materials used in connection with the project, and

a reasonable amount for project engineering and project administrative costs which shalI be 22.5% of the aggregate of the amounts detentlined in items (i), (ii), (iii) and (iv) above.

(d) The total relocation costs as calculated above shall be paid 35% by the Corporation and 65% by the Gas Company, except where the part of the gas system required to be moved is Iocited in an unassumed road or in an unopened road allowance and the Corporation has not approved its location, in which case the Gas Company shall pay tOO% of the relocation costs.

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Appendix "B"

Part IV - Procedural And Other Matters

13.

14.

15.

Municipal By-laws OF General Application

The Agreement is subject to the provisions of a11 regulating statutes and all municipal by-laws of general application, except by-laws which have the effect of amending this Agreement.

Giving Notice.

Notices may be deIivered to, sent by facsimile or mailed by prepaid registered post to the Gas Company at its head office or to the authorized officers of the Corporation at its municipal oFfices, as the case may be.

Disposil ion of Gas System ., ,

If the Gas Company decommissions part of its gas system affixed to a bridge, viaduct or structure, the Gas Company shaI1, at its sola expense, remove the part of its gas system affixed to the bridge, viaduct or structuE.

If the Gas Company decommissions any other part of its gas system, it shall have the right, but is not required, to remove that part of its gas system. It may exercise its right to remove the decommissioned parts of its gas system by giving notice of its intention to do so by filing a Plan as required by Paragraph 5 of this Agreement For approval by the EngincerlRoad Superintendent. H the Gas Company does not remove the part of the gas system it has decommissioned and the Corporation requires the removal of $1 or any part OP the decommissioned gas system for the purpose of altering 01 improving a highway or in order EO EaciIitate the construction of utility or other works in any highway, the Corporation may remove and dispose of so much of the decommissioned gas system as the Corporation may require for such purposes and neither p m y s h d l have recourse against the other for any loss, cost, expense or damage occasioned thereby. If the Gas Company has not removed the part of the gas system it has decommissioned and the Corporation requires the removal of all or any part of the decommissioned gas system foot the purpose of altering or improving a highway or in order to facilitate the construction of utility or other works in a highway, the Gas Company may elect to reiocate the decommissioned gas system and in that event Paragraph 12 applies to the cost of xelacation.

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J

Appendix “B”

16.

(a)

Use of Decommissioned Gus System

The Gas Company shall provide promptly to the Corporation, to the extent such infomation is known:

(i) the nnmes.and addresses of all third parties who use decommissioned parts of che gas ,system for purposes other than the transmission or distribution of gas: and

(ii) the Iocation of all proposed and existing decommissioned parts of the gas system used for purposes other than the transmission or distribution of gas.

(b) The Gas Company may allow a third party to use a decommissioned part of the gas system for purposes other than the transmission ,or distribution of gas and may charge a fee €or that third party use, provided

(i) the thirdparty has entered into a municipal access agreement with the Corporation; and

(ii) the Gas Company does not,charge a Cee for the third party’s right of access to the high ways.

(c) Decommissioned parts of the gas system used for purposes other than the transmission or distribution of gas are not subject to the provisions of this Agreement, For decommissioned parts of the gas system used for purposes other than the transmission and distribution OF gas, issues such as relocation costs will be governed by the relevant municipal access agreement.

I \ .

% ?(f ... 3 17. Franchise Handbook <w

The Parties acknowledge that operating decisions sometimes require a greater level of detail than that which is appropriately included in this Agreement, The Parties agree to look for guidance on such matters to the Franchise Handbook prepared by the Association of Municipalities of Ontario and the gas utility companies, as may be amended from time to time.

18. Other Conditians

The following paragraph shall be inserted as a special condition in the old Union Gas franchise area, which is imderstood to be the franchise area of Union Gas in southwestern Onbrio prior to its merger with Centra Gas.

Notwithstanding the cost sharing arrangements described in Paragraph 12, if any part of the gas system altered or relocated in accordance with Paragraph 12 was constructed or installed

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i prior to JAnuary 1, 1981, the Gas Company shall alter or relocate, at its sole expense, such part of the gas system at the point specified, to a location satisfactory to the EngineedRoad Superintendent.

19. Agreement Binding Parties

This Agreement shall extend to, benefit and bind the parties thereto, their successors and assigns, respectively.

IN WITNESS WHEREOF the parties have executed this Agreement effective from the date w+tten above.

THE: CORPORATION OF

By: Dufy Authorized Officer

[Insert name of GPS Company]

By:

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