PROJECT FINANCING as at February 1, 2013

Wastewater Treatment ProjectUpdate

May 15, 2013 StatusPreliminary design completeDetailed design being finalisedPublic works relocatedSite prep to begin late MayConstruction proper in JuneCompletion for October 2014

PROJECT COSTS & FINANCING - Baseline Position -

Project Costs

2011-2012 Costs $1.0mContract price $21.3PST $0.82013 -14 costs $1.3Contingency$0.5

TOTAL COSTS $ 25.0

Funding Available

Sechelt Funding $ 8.9Sewer Treatment Reserves $4.9Sewer Treatment DCCs 1.5 Unrestricted Operating Surplus 2.5 Other governments $11.2Gas Tax Funding $8.0Building Canada Funding 3.2Other sources $2.5Loan $2.5 Repay over 5 years using sewer reserve surpluses

FUNDING AVAILABLE $25.1

Why is it so expensiveBecause we are doing high level (tertiary) treatmentThis added about $5m to the cost

. . . However . . . Why are we doing high level treatment? Enables widest range of options for reuse of water.90% reduction in contaminant load to Trail BayAvoids $3m outfall expansionIn keeping with Federal and Provincial policies which encourage the use of reclaimed waterGoal was set in Sechelts 2011 Sustainability Action PlanSustainability Action Plan Other goals of the Plan;Reduce noise and smell to the greatest extent possiblePursue opportunities to recover resources from treated effluentMaximise energy efficiency, reduce water consumptionBase infrastructure decisions on full life cycle costsEnsure that municipal infrastructure is integrated and energy efficient and has the lowest environmental impact possible.

Liquid Waste : to treat effluent to the highest levelsProposal EvaluationProponentLocationTanksOperating Cost (ranking)Capital Cost*Overall RankingMaple ReindersEbbtideCovered (greenhouse)2$21.3m1BLot LUncovered3$22.1**2CLot LCovered4$26.8**3DLot LUncovered5(highest cost)$18.1**4EEbbtideEnclosed in building1(lowest cost)>$305 * For comparison, all capital costs assume biosolids composting by Salish SoilsNeed to add $3.2m of DoS costs to all bid prices to get the Project Cost**Base bid, Lot L projects include new, relocated, odour controlled pump station at Ebbtide

Location of Ganges WWTP, Salt Spring IslandLocatio of WWTP at Ganges, Salt Spring Island.Outfall is 4.8km long!

Questions?