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November 22, 2016 Ray Ritcey, Chair Halifax Water Halifax, Nova Scotia The regular meeting of the Halifax Water Board will be held on Thursday, November 24, 2016 at 8:30 a.m. in the Boardroom at 450 Cowie Hill Road, Halifax.

AGENDA

In Camera Reports

1C Approval of Minutes of the Special In-Camera Meeting held on Thursday, October 27, 2016

2C Business Arising from the Minutes of September 29, 2016 and October 27, 2016 a)

3C Legal Matter (Verbal – 10 minutes)

4C Governance Matter (Verbal – 10 minutes) Regular Reports

1. a) Ratification of In-Camera Motions b) Approval of the Order of Business and Approval of Additions and Deletions (5 minutes)

2. Approval of Minutes of Special Meeting held on Thursday, October 27, 2016

3. Business Arising from the Minutes of September 29, 2016 and October 27, 2016 a)

4. Operating Results for the Seven Months Ended October 31, 2016 (5 minutes)

5. Capital Projects: (None)

6. Lead Service Line Replacement Program – Application to the NSUARB (20 minutes) Information Reports

1-I Operations and Financial Monthly Update 2-I Capital Budget Approvals to Date 3-I Bank Balance 4-I Wastewater Systems – Odour Management 5-I Halifax Regional Water Commission Employees’ Pension Plan – 3rd Quarter, 2016 – Financial Report

Original Signed By:

James G. Spurr Secretary

HALIFAX REGIONAL WATER COMMISSION October 27, 2016

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HALIFAX REGIONAL WATER COMMISSION MINUTES

October 27, 2016

PRESENT: Commissioner Ray Ritcey, Chair Commissioner Russell Walker, Vice Chair Commissioner Jacques Dube Commissioner David Hendsbee Commissioner Don Mason Commissioner Darlene Fenton Commissioner Barry Dalrymple REGRETS: Commissioner Mike Savage STAFF: Carl Yates, General Manager, HRWC Cathie O’Toole, Director, Corporate Services , HRWC James Spurr, Legal Counsel, HRWC Kenda MacKenzie, Director, Regulatory Services, HRWC (In

Part) Lorna Skinner, Administrative Assistant, HRWC


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TABLE OF CONTENTS CALL TO ORDER ........................................................................................................................ 3 1. APPROVAL OF MINUTES - SEPTEMBER 29, 2016 ....................................................... 3 2. BUSINESS ARISING FROM MINUTES ........................................................................... 3 a) Business Plan for Lead Service Line Replacement ................................................ 3 b) AMI Project Update - Verbal ....................................................................................... 3 3 STORMWATER RATE APPLICATION ............................................................................ 3 4. OPERATING RESULTS FOR SIX MONTHS ENDED SEPTEMBER 30, 2016 ............... 4 5. DATE OF NEXT MEETING ............................................................................................... 4


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CALL TO ORDER The Chair called the regular meeting to order at 9:00 a.m. in the Board Room of the HRWC, 450 Cowie Hill Road. The Board moved In Camera at 9:00 and the regular meeting reconvened at 9:02 a.m.

1. APPROVAL OF MINUTES – September 29, 2016

MOVED BY Commissioner Walker, seconded by Commissioner Mason that the Halifax Regional Water Commission Board approve the minutes of September 29, 2016. MOTION PUT AND PASSED. 2. BUSINESS ARISING FROM MINUTES a) Business Plan for Lead Service Line Replacement

A report dated October 18, 2016, was submitted. Carl Yates informed the Board that the tabled report and overview of this issue was also presented to and approved by the Environment, Health & Safety Committee. Mr. Yates stated that the Lead Service Line replacement program reflects the National Drinking Water Advisory Council recommendations to the US Environmental Protection Agency. The goal is to remove all lead service lines (both public and private) over a 30-year period. Mr. Yates added that communication to the rate payers will be key over the life of this project. MOVED BY Commissioner Mason, seconded by Commissioner Fenton that the Halifax Regional Water Commission Board approve the proposed business plan for a revised Lead Service Line replacement program, consistent with the recommendations of the National Drinking Water Advisory Council to the USEPA. MOTION PUT AND PASSED. b) AMI Project Update (Verbal) Cathie O’Toole informed the Board that the NSUARB issued the Order for approval of this project on October 26, 2016. 3. STORMWATER RATE APPLICATION At this time Kenda MacKenzie joined the meeting. A report dated October 20, 2016, was submitted. Cathie O’Toole gave a presentation on the Stormwater Rate Application that will be


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submitted to the NSUARB on October 31, 2016, to adjust Stormwater rates to reflect the approved Cost of Service Manual. This presentation included the history of the delivery of Stormwater service, the proposed rates for both residential and non-residential customers, the key changes reflected in the Application and the revenue requirements. Commissioner Dalrymple suggested that full page advertisements placed in local community newspapers summarizing the history of Stormwater service would be very beneficial. The Board agreed. Ms. O’Toole added that the same day the Application will be filed, several educational tools will be launched on the Halifax Water website: an educational Stormwater video, six info-graphics, and a customer web application that will allow customers to view their property and determine if they are within the Stormwater service boundary. MOVED BY Commissioner Fenton, seconded by Commissioner Mason that the Halifax Regional Water Commission Board approve the submission to the Nova Scotia Utility & Review Board to adjust Stormwater rates to reflect the approved Cost of Service Manual. MOTION PUT AND PASSED. At this time, Kenda MacKenzie exited the meeting. 4. OPERATING RESULTS FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2016 A report dated October 20, 2016, was submitted. Cathie O’Toole gave a brief overview of the operating results. 5. DATE OF NEXT MEETING The next meeting is scheduled for November 24, 2016. The meeting was adjourned at 10:29 a.m. Original Signed By: Original Signed By: James G. Spurr Commissioner Ray Ritcey Secretary Chair The following Information Items were submitted: 1-I 2015/16 Annual Report 2-I 2015/16 Corporate Balanced Scorecard - Results 3-I Water Supply Update

ITEM # 4 HRWC Board

November 24, 2016

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TO: Ray Ritcey, Chair and Members of the Halifax Regional Water Commission Board

SUBMITTED BY: Original Signed By:

Cathie O’Toole, MBA, CPA, CGA, Director, Corporate Services APPROVED: Original Signed By:

Carl Yates, M.A.Sc., P.Eng., General Manager DATE: November 16, 2016 SUBJECT: Operating Results for the Seven Months Ended October 31, 2016

INFORMATION REPORT

ORIGIN Financial Statements BACKGROUND The Board is required to review periodic financial information throughout the year. DISCUSSION Attached are the operating results for the first seven (7) months of the 2016/17 fiscal year, period ending October 31, 2016. The statements reflect direct operating costs by department and allocations among water, wastewater and stormwater for common costs shared across all the services provided by Halifax Regional Water Commission (HRWC). HRWC is a fully regulated government business enterprise, falling under the jurisdiction of the Nova Scotia Utility and Review Board (NSUARB). The NSUARB requires that HRWC file Financial Statements and rate applications with the Board based on the NSUARB Handbook for Accounting and Reporting for Water Utilities. The Accounting Standards Board (AcSB) requires rate regulated entities to conform to International Financial Reporting Standards (IFRS). The Commission has converted the SAP financial records to IFRS for the purposes of the annual audit and consolidation of the financial statements with those of Halifax Regional Municipality (HRM). The budget for the 2016/17 fiscal year was prepared using the NSUARB format and financial results will continue to be provided in NSUARB format.

ITEM # 4 HRWC Board

November 24, 2016

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Summary information is provided for the Balance Sheet on Page 1 and the Income Statement on Page 2. A detailed presentation of the Balance Sheet and Income Statement is provided on Pages 3 and 4. Pages 5 through 8 provide Income Statements by Service and for Regulated and Un-Regulated Services. Pages 9 and 10 provide the Balance Sheet and Income Statement in IFRS format. Consolidated Income Statement - Page 2 Consolidated operating revenue of $82.2 million is $4.0 million greater than revenue reported for the same year-to-date period last year. Consolidated operating expenses of $52.5 million are $1.9 million lower than the same period last year.

The Net Profit for the year is $11.3 million, an improvement of $4.9 million from the same time in the prior year. The budget for the year, approved at the January 28, 2016 Board meeting, was for a profit of $154 thousand. Results for the year to date have been reviewed in conjunction with plans for the remainder of the year. An update to the Forecast reflects the change from the budget to a profit of $4.2 million, a total change of $4.0 million. The Net Surplus to date is a result of both high Operating Revenue and low Operating Expenses relative to the Budget. Revenue is expected to follow the normal seasonal pattern and fall in line with the Budget and Forecast. It is anticipated that Operating Expenses will increase during the fiscal year as planned initiatives are completed and the impact of fall and winter seasons are realized. Balance Sheet - Page 3 The cash balance of $58.4 million is up $18.6 million from the prior year. In response to the high cash balance, the amount of new debt to be issued in November was reduced from the budgeted amount of $31.9 million to $7.1 million. The cash balance and capital expenditures will be monitored to determine if the additional cash is required from the Municipal Finance Corporation’s Spring debenture. The Customers & Contractual Accounts Receivable balance of $15.9 million has increased $3.7 million from the same time last year. The Customers and Contractual – Unbilled Services figure

Actual YTD Actual YTD2016/17 2015/16

'000 '000 $ Change % Change

Operating Revenue $82,193 $78,234 $3,959 5.1%Operating Expenses $52,469 $54,379 ($1,910) -3.5%Operating Profit (Loss) $29,724 $23,855 $5,868 24.6%

Non Operating Revenue $1,878 $1,822 $56 3.1%Non Operating Expenditure $20,308 $19,240 $1,068 5.6%Net Surplus (Deficit) $11,294 $6,437 $4,857 75.5%

Summarized Consolidated Operating Results

ITEM # 4 HRWC Board

November 24, 2016

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represents the estimated revenue that has been earned but not yet billed to customers due to the monthly or quarterly billing cycle. The Unbilled Services amount is down $0.2 million to $17.4 million. The amounts receivable from HRM of $3.9 million are down $0.4 million from the prior year. The liquidity on the balance sheet (ratio of current assets divided by current liabilities) is 2.09, up from the ratio of 1.54 at the same time last year. Plant in Service assets net of Accumulated Depreciation is $1.0 billion and is $48.6 million higher than at this time last year. Capital Assets Under Construction is down $20.6 million to $41.5 million. In the prior year, Assets Under Construction included significant balances for the Lakeside Diversion and Kearney Lake Road projects. The following table highlights the major projects currently underway:

Figures used in the various tables throughout the report may contain differences due to Excel rounding.

Trade liabilities of $11.2 million have decreased $1.0 million when compared to the prior year. Liabilities to HRM of $5.8 million are on par with the prior year. The amount owing to HRM includes the accrual for the annual dividend ($2.7 million accrued towards the $4.6 million annual payment), the accrued balance of the valve box and manhole adjustment work ($2.6 million), the Stormwater Right of Way customer billings ($0.3 million), plus other miscellaneous operating and capital accruals. Unearned Revenue is down $2.6 million. The current portion of Long Term Debt balance of $23.2 million is up $0.8 million from the prior year. Long Term Debt is up $10.4 million from last year, which is net of repayments of $17.9 million. The debt service ratio is currently 21.4%, a slight increase from 21.2% last year. This is well below the maximum 35% ratio allowed under the blanket guarantee agreement with HRM.

The cumulative Operating Surplus of $7.8 million at the beginning of the fiscal year has grown to $19.1 million with the year-to-date profit of $11.3 million.

Cumulative'000

MacDonald Bridge Transmission Main $6,138Aerotech Wastewater Treatment Facility $2,857Geizer 158 Reservoir Rehabilitation $2,813All other projects $29,722Total $41,531

Capital Assets Under Construction

2016/17 2015/16'000 '000

Water $59,424 $53,568Wastewater $134,466 $132,569Stormwater $11,056 $8,442Combined $204,947 $194,578

Long Term Debt by ServiceYTD Debt Servicing Cost Ratio

2016/17 2015/16Water 19.1% 18.9%Wastewater 24.7% 24.0%Stormwater 11.3% 14.9%Combined 21.4% 21.2%

Debt Servicing Ratio by Service

ITEM # 4 HRWC Board

November 24, 2016

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Income Statement – All Services - Page 4 The following table compares the results with a seven month pro-rated forecast for the year. The forecast to the end of the year, can be seen on page 2 of the attachment to this report and shows a projected surplus of $4.2 million dollars.

Customer Rates The following table summarizes the most significant customer rates.

Operating Revenue Operating Revenue is $3.0 million ahead of the pro-rated forecast for the year. This reflects the seasonal pattern of consumption that is typically higher for the summer months. Metered Sales revenue is up $2.4 million (9.5%) for Water Service and $1.7 million (4.2%) for Wastewater Service. Metered Sales consist of base and volumetric charges. Base charges are on par with budget expectations. Volumetric revenue budgets for 2016/17 were based on a 3% decrease in metered consumption. Year-to-date billed water consumption is down only 1.3% compared to the prior year. On a 12 month rolling basis, billed consumption is down 1.4%. The full extent to which the dry summer weather has influenced consumption is not yet reflected in the results to date due to the 13 week billing cycle for residential customers. As most of the

Seven MonthActual YTD Forecast

2016/17 2016/17'000 '000 $ Variance % Variance

Operating Revenue $82,193 $79,274 $2,919 3.7%Operating Expenses $52,469 $57,539 ($5,070) -8.8%Operating Profit (Loss) $29,724 $21,735 $7,989 36.8%

Non Operating Revenue $1,878 $1,933 ($56) -2.9%Non Operating Expenditure $20,308 $21,219 ($911) -4.3%Net Surplus (Deficit) $11,294 $2,450 $8,844 361.1%

Summarized Consolidated Operating Results

Effective EffectiveApril 1/16 May 1/15 $ Change % Change

Volumetric Charges (per m3)Water 0.976 0.845 0.131 15.5%Wastewater 1.753 1.638 0.115 7.0%Combined 2.729 2.483 0.246 9.9%

Base Charges (per year)Water No Change 0.0%Wastewater Varies 1.1%-7.7%Stormwater - Residential 33.39 33.39 No Change 0.0%Stormwater- HRM ROW - 41.00 Eliminated -100.0%

Summary of Rate Changes

Varies by meter sizeVaries by meter size

ITEM # 4 HRWC Board

November 24, 2016

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increase in revenue is attributable to higher rates and seasonality, the financial benefit realized to date from consumption is approximately $0.4 million. Wastewater Metered Sales also consists of a volumetric discharge component and a base charge component. For most customers, the discharge component is based on the metered water consumption, and the volumes and revenue reflect the decline in water consumption. The billed discharge volume to date has declined 2.4%, and on a rolling 12 month basis, the billed discharge volume has declined by the same 2.4%. The wastewater revenue budget for 2016/17 was also based on an assumed 3% decrease in discharge volume based on metered consumption. The dry summer conditions also led to low water levels and the imposition of water restrictions from September 19 to October 24 for Dartmouth and surrounding areas serviced by Lake Major. System input from the Lake Major facility declined by approximately 2.5 million litres (7.2%) per day for seven weeks (compared to the same time last year). At this volume, the potential impact of the restrictions would be to reduce revenue by approximately $241 thousand. This would be mitigated by bulk water sales re-directed to the West and Central regions, unmetered customers on flat rate bills, and normal water loss within the distribution system. Stormwater Site Generated revenue is on par with budget and the prior year. Other Services and Fees are currently ahead of budget and the prior year, with notable increases in Private Fire Protection and Septage Tipping fees. Operating Expenses Operating Expenses of $52.5 million are $1.9 million below the prior year and $5.1 million below the pro-rated forecast for the year. All expense categories are below budget and forecast. Increases over prior year expenditures are seen in Engineering and Information Services, Small Systems, Scada Control & Pumping, and Depreciation. Administration and Pension shows the most significant decline. The following table summarizes Operating Expenses by their nature and indicates that the reduced expenditures relative to budget are being realized across all expense categories.

Seven MonthActual YTD Forecast

2016/17 2016/17'000 '000 $ Variance % Variance

Salaries & Benefits $22,261 $23,284 ($1,023) -4.4%Contract Services $6,743 $7,424 ($681) -9.2%Materials & Supplies $5,424 $6,809 ($1,386) -20.3%Power $3,346 $4,127 ($781) -18.9%Chemicals $2,487 $2,959 ($472) -16.0%Other Expenses $1,250 $1,312 ($63) -4.8%Depreciation $10,959 $11,622 ($663) -5.7%Total Operating Expenses $52,469 $57,539 ($5,070) -8.8%

Summary of Operating Expenses by Nature

ITEM # 4 HRWC Board

November 24, 2016

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Financial Revenue Investment income is below budget and the prior year. The decline in investment income has been somewhat offset by an increase in miscellaneous revenue, which includes various un-regulated activities such as tower leases, energy generation and rental properties. Financial Expenses Long Term Debt costs are on par with budget and up slightly from the prior year due to higher levels of debt. The forecast for Long Term Debt costs will be updated in future projections based on the results from the Fall 2016 Debenture. The Fall Debenture was priced on Oct. 25, 2016 and resulted in an all-in rate of 2.44% for HRWC to borrow $7,052,667 over a 10 year term, with a 20 year amortization schedule. The following table shows operating results for each service.

Water Operations - Page 5 Water Operations show a profit of $4.2 million, compared to a profit of $1.6 million for the previous year at this time. Metered Sales revenue is up $2.4 million (9.5%). Operating Expenses have decreased by $1.0 million (4.6%) which is primarily attributable to savings in Administration and Pension. Wastewater Operations - Page 6 Wastewater Operations show a profit of $5.2 million, up from a profit of $3.4 million in the prior year. Wastewater revenue has increased $1.9 million from the prior year, with Metered Sales and Septage Tipping Fees accounting for the increase. Operating expenses have decreased by $0.7 million from the previous year. Higher costs in some categories have been offset by savings in others. Stormwater Operations - Page 7 Stormwater Operations show a profit of $1.9 million, an improvement over the profit of $1.4 million for the same period last year. Stormwater Revenue and Expenses are similar to the prior year figures.

2016/17 2015/16'000 '000

Water $4,231 $1,652Wastewater $5,208 $3,372Stormwater $1,855 $1,414Net Surplus (Deficit) $11,294 $6,437

Year to Date Operating Results by Service

ITEM # 4 HRWC Board

November 24, 2016

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Regulated and Unregulated Operations - Page 8 Activities regulated by the NSUARB show a profit of $10.5 million, ahead of the $5.9 million profit for the same period last year. Unregulated activities show a profit of $0.8 million, an increase from the profit of $0.5 million for the prior year. Notable increases in Unregulated Revenue are seen in Septage Tipping Fees and Energy Projects. Unregulated Expenses are higher than the prior year, particularly in the contracted Wastewater Treatment facilities.

Results under International Financial Reporting Standards - Pages 9 & 10 As noted previously, the AcSB requires HRWC, as a rate regulated utility, to report financial results using International Financial Reporting Standards (IFRS). On the IFRS Balance Sheet, Accumulated Depreciation is higher producing a lower value for assets, Contributed Capital is treated as a long term liability and amortized rather than being treated as a contribution to equity, and the Operating Surplus is much higher due to changes in the Income Statement. On the IFRS Income Statement, Operating Revenue is the same. Depreciation Expense is higher as contributed assets are depreciated and some assets are depreciated more quickly. Financial Revenue is higher as the amortization of contributed capital is treated as revenue. The most significant change is Financial Expenses are lower as there is no expense for the Long Term Debt Principal appropriation – a difference of $12.4 million to date and $22.7 million for the full year. The IFRS Net Profit for the year is $22.6 million. ATTACHMENT Unaudited Operating Results for the seven (7) months ended October 31, 2016

2016/17 2015/16'000 '000

Regulated Activities $10,535 $5,943Unregulated Activities $759 $494Net Surplus (Deficit) $11,294 $6,437

Results by Activity

Report prepared by: Original Signed By:

Warren Brake, Manager, Accounting, B.Comm, CPA, CGA

ITEM # 4HRWC BOARD

November 24, 2016Page 1 of 10

HALIFAX WATERUNAUDITED BALANCE SHEET - CONSOLIDATED

AS OF OCTOBER 31, 2016

2016 2015'000 '000

ASSETS

Cash $58,363 $39,788 Amounts Receivable $37,263 $34,239 Materials & Supplies $1,613 $1,554 Prepaid Expenses $273 $224

$97,512 $75,805

Regulatory Asset $3,468 $3,676 Plant in Service $1,044,404 $995,558 Assets Under Construction $41,531 $62,092

$1,089,403 $1,061,326

Unamortized Debt Discount & Issue Expense $1,057 $1,007

$1,187,973 $1,138,137

LIABILITIES & CAPITAL

Trade Payables & Accrued Liabilities $19,506 $20,397 Deposits & Unearned Revenue $3,900 $6,450 Current Portion of LT Debt $23,195 $22,374

$46,601 $49,221

Pension & Accrued Retirement Benefits $60,206 $70,832 RDC & Special Purpose Reserves $11,078 $13,716 Long Term Debt $204,947 $194,578

Total Liabilities $322,831 $328,347

Capital Surplus, Committed Reserves, & Accumulated OCI $846,028 $800,417 Operating Surplus $7,819 $2,936 Excess (Deficiency) of Revenue over Expenditure - Consolidated $11,294 $6,437

Total Capital & Surplus $865,141 $809,790

$1,187,973 $1,138,137

G:\Finance\general\Fin Acct\Excel\FinStmts\Month\2016‐17\7_FS OCT 16

ITEM # 4HRWC BOARD


HALIFAX WATER

APRIL 1/16 - OCTOBER 31/16 (7 MONTHS)58.33%

ACTUAL ACTUAL APR 1/16 APR 1/16(CURRENT MONTH) (YEAR TO DATE) MAR 31/17 MAR 31/17

THIS YEAR LAST YEAR THIS YEAR LAST YEAR BUDGET* FORECAST % of'000 '000 DESCRIPTION '000 '000 '000 '000 FORECAST

$11,292 $11,521 OPERATING REVENUE $82,193 $78,234 $135,675 $135,898 60.48%

$6,944 $7,942 OPERATING EXPENSES $52,469 $54,379 $102,426 $98,638 53.19%

$4,348 $3,579 OPERATING PROFIT $29,724 $23,855 $33,250 $37,260 79.77%

FINANCIAL REVENUE$75 $74 INVESTMENT INCOME $434 $480 $810 $810 53.59%

$167 $167 PNS FUNDING HHSP DEBT $1,167 $1,167 $2,000 $2,000 58.33%$61 $25 MISCELLANEOUS $277 $175 $504 $504 54.91%

$302 $265 $1,878 $1,822 $3,314 $3,314 56.65%

FINANCIAL EXPENSES$709 $713 LONG TERM DEBT INTEREST $5,046 $5,101 $8,872 $8,872 56.88%

$1,800 $1,647 LONG TERM DEBT PRINCIPAL $12,426 $11,392 $22,652 $22,652 54.86%$16 $15 AMORTIZATION DEBT DISCOUNT $115 $103 $199 $199 57.84%

$382 $377 DIVIDEND/GRANT IN LIEU OF TAXES $2,692 $2,642 $4,663 $4,578 58.79%$4 $1 MISCELLANEOUS $28 $2 $24 $74 38.30%

$2,910 $2,752 $20,308 $19,240 $36,410 $36,375 55.83%

NET PROFIT (LOSS) BEFORE $1,740 $1,092 OTHER COMPREHENSIVE INCOME $11,294 $6,437 $154 $4,199 268.95%

$0 $0 OTHER COMPREHENSIVE INCOME $0 $0 $0 $0

NET PROFIT (LOSS) AVAILABLE FOR$1,740 $1,092 CAPITAL EXPENDITURES $11,294 $6,437 $154 $4,199 268.95%

UNAUDITED INCOME STATEMENT - CONSOLIDATED


ITEM # 4HRWC BOARD


HALIFAX WATERUNAUDITED BALANCE SHEET


2016 2015'000 '000

ASSETS

Cash $58,363 $39,788

Amounts ReceivableCustomers & Contractual $15,879 $12,205 Customers & Contractual - Unbilled Services $17,457 $17,702 Halifax Regional Municipality $3,927 $4,332

Materials & Supplies $1,613 $1,554 Prepaid Expenses $273 $224

$97,512 $75,805

Regulatory Asset $3,468 $3,676 Plant in Service - Water $584,609 $567,439 Plant in Service - Wastewater $695,811 $643,325 Plant in Service - Stormwater $131,419 $118,065

Less: Accumulated Depreciation - Water ($167,223) ($156,826) Accumulated Depreciation - Wastewater ($174,098) ($152,593) Accumulated Depreciation - Stormwater ($26,114) ($23,852)

$1,047,873 $999,234 Assets Under Construction $41,531 $62,092

$1,089,403 $1,061,326


$1,187,973 $1,138,137

LIABILITIES & CAPITAL

Trade $11,162 $12,201 Interest on Long Term Debt $2,591 $2,448 Halifax Regional Municipality $5,754 $5,748

Contractor & Customer Deposits $189 $186 Unearned Revenue $3,711 $6,263

Current Portion of LT Debt $23,195 $22,374 $46,601 $49,221

Accrued Post-Retirement Benefits $466 $458 Accrued Pre-Retirement Benefit $3,675 $3,568 Deferred Pension Liability $56,065 $66,805

Special Purpose Reserves not allocated to projects $1,822 $5,477 Regional Development Charge $9,255 $8,239

Long Term Debt-Water $59,424 $53,568 Long Term Debt-Wastewater $134,466 $132,569 Long Term Debt-Stormwater $11,056 $8,442

Total Liabilities $322,831 $328,347

Capital Surplus $875,194 $828,417 Committed Reserves $2,391 $13,946 Accumulated Other Comprehensive Income ($43,936) ($54,325)Operating Surplus used to Fund Capital $12,380 $12,380 Operating Surplus $7,819 $2,936 Excess (Deficiency) of Revenue over Expenditure - Consolidated $11,294 $6,437

Total Capital & Surplus $865,141 $809,790

$1,187,973 $1,138,137


ITEM # 4HRWC BOARD


APR 1/16 APR 1/16MAR 31/17 MAR 31/17

THIS YEAR LAST YEAR THIS YEAR LAST YEAR BUDGET* FORECAST % of % of'000 '000 DESCRIPTION '000 '000 '000 '000 BUDGET* FORECAST

REVENUE$3,851 $3,822 METERED SALES - WATER $28,156 $25,715 $46,475 $46,475 60.58% 60.58%$5,619 $5,867 METERED SALES - WASTEWATER $41,364 $39,693 $68,052 $68,052 60.78% 60.78%

$572 $557 STORMWATER SITE GENERATED SERVICE $3,923 $3,923 $6,708 $6,708 58.48% 58.48%$590 $669 FIRE PROTECTION $4,127 $4,685 $7,074 $7,074 58.33% 58.33%$323 $323 STORMWATER RIGHT OF WAY SERVICE $2,264 $2,264 $3,881 $3,881 58.33% 58.33%$258 $222 OTHER SERVICES AND FEES $1,821 $1,450 $2,586 $2,809 70.43% 64.85%

$45 $33 CUSTOMER LATE PAY./COLLECTION FEES $296 $306 $530 $530 55.95% 55.95%$34 $27 MISCELLANEOUS $241 $198 $369 $369 65.45% 65.45%

$11,292 $11,521 $82,193 $78,234 $135,675 $135,898 60.58% 60.48% EXPENSES

$552 $551 WATER SUPPLY & TREATMENT $3,993 $4,191 $7,983 $7,983 50.02% 50.02%$578 $633 TRANSMISSION & DISTRIBUTION $4,734 $4,736 $8,710 $8,657 54.35% 54.69%$734 $728 WASTEWATER COLLECTION $4,932 $5,352 $9,446 $9,334 52.22% 52.84%

$1,236 $1,683 WASTEWATER TREATMENT PLANTS $9,719 $9,884 $19,425 $18,189 50.03% 53.43%$271 $400 STORMWATER COLLECTION $2,191 $2,317 $4,761 $4,803 46.03% 45.63%$264 $278 SMALL SYSTEMS AND OTHER SERVICES $1,693 $1,570 $3,132 $2,968 54.06% 57.04%$160 $143 SCADA, CONTROL & PUMPING $1,168 $943 $2,089 $2,088 55.93% 55.96%$563 $488 ENGINEERING & INFORMATION SERVICES $4,217 $3,669 $8,067 $7,978 52.27% 52.86%$142 $208 ENVIRONMENTAL SERVICES $1,218 $1,310 $2,605 $2,605 46.77% 46.75%$341 $316 CUSTOMER SERVICE $2,460 $2,541 $4,419 $4,413 55.67% 55.73%$592 $1,000 ADMINISTRATION & PENSION $5,184 $7,191 $10,631 $9,696 48.77% 53.47%

$1,513 $1,513 DEPRECIATION $10,959 $10,675 $21,159 $19,923 51.79% 55.00%$6,944 $7,942 $52,469 $54,379 $102,426 $98,638 51.23% 53.19%

$4,348 $3,579 OPERATING PROFIT $29,724 $23,855 $33,250 $37,260 89.40% 79.77%

FINANCIAL REVENUE$75 $74 INVESTMENT INCOME $434 $480 $810 $810 53.59% 53.59%

$167 $167 PNS FUNDING HHSP DEBT $1,167 $1,167 $2,000 $2,000 58.33% 58.33%$61 $25 MISCELLANEOUS $277 $175 $504 $504 54.91% 54.91%

$302 $265 $1,878 $1,822 $3,314 $3,314 56.65% 56.65%

FINANCIAL EXPENSES$709 $713 LONG TERM DEBT INTEREST $5,046 $5,101 $8,872 $8,872 56.88% 56.88%

$1,800 $1,647 LONG TERM DEBT PRINCIPAL $12,426 $11,392 $22,652 $22,652 54.86% 54.86%$16 $15 AMORTIZATION DEBT DISCOUNT $115 $103 $199 $199 57.84% 57.84%

$382 $377 DIVIDEND/GRANT IN LIEU OF TAXES $2,692 $2,642 $4,663 $4,578 57.73% 58.79%$4 $1 MISCELLANEOUS $28 $2 $24 $74 119.28% 38.30%

$2,910 $2,752 $20,308 $19,240 $36,410 $36,375 55.78% 55.83%

NET PROFIT (LOSS) BEFORE $1,740 $1,092 OTHER COMPREHENSIVE INCOME $11,294 $6,437 $154 $4,199 7325.00% 268.95%

$0 $0 OTHER COMPREHENSIVE INCOME $0 $0 $0 $0

NET PROFIT (LOSS) AVAILABLE FOR$1,740 $1,092 CAPITAL EXPENDITURES $11,294 $6,437 $154 $4,199 7325.00% 268.95%

(CURRENT MONTH) (YEAR TO DATE)

HALIFAX WATERUNAUDITED INCOME STATEMENT - ALL SERVICES


ACTUAL ACTUAL


ITEM # 4HRWC BOARD


APR 1/16 APR 1/16MAR 31/17 MAR 31/17


REVENUE$3,851 $3,822 METERED SALES $28,156 $25,715 $46,475 $46,475 60.58%

$590 $669 FIRE PROTECTION $4,127 $4,685 $7,074 $7,074 58.33%$73 $61 PRIVATE FIRE PROTECTION SERVICES $481 $386 $840 $840 57.29%$35 $33 BULK WATER STATIONS $254 $205 $326 $326 77.79%$23 $14 CUSTOMER LATE PAY./COLLECTION FEES $156 $111 $203 $203 76.68%$14 $11 MISCELLANEOUS $99 $75 $142 $142 69.18%

$4,586 $4,610 $33,272 $31,177 $55,061 $55,061 60.43% EXPENSES

$552 $551 WATER SUPPLY & TREATMENT $3,993 $4,191 $7,983 $7,983 50.02%$578 $633 TRANSMISSION & DISTRIBUTION $4,734 $4,736 $8,710 $8,657 54.69%$86 $81 SMALL SYSTEMS (inc. Contract Systems) $603 $599 $883 $883 68.35%$58 $59 SCADA, CONTROL & PUMPING $428 $379 $846 $846 50.65%

$227 $224 ENGINEERING & INFORMATION SERVICES $2,048 $1,836 $3,848 $3,848 53.21%$17 $37 ENVIRONMENTAL SERVICES $248 $281 $515 $515 48.09%

$174 $161 CUSTOMER SERVICE $1,253 $1,295 $2,251 $2,249 55.74%$304 $510 ADMINISTRATION & PENSION $2,647 $3,662 $5,416 $4,940 53.58%$614 $622 DEPRECIATION $4,441 $4,401 $8,563 $8,131 54.61%

$2,610 $2,878 $20,395 $21,381 $39,015 $38,051 53.60%


FINANCIAL REVENUE$34 $37 INVESTMENT INCOME $196 $241 $365 $365 53.71%$34 $19 MISCELLANEOUS $212 $145 $432 $432 49.12%$68 $56 $408 $387 $796 $796 51.22%

FINANCIAL EXPENSES$201 $203 LONG TERM DEBT INTEREST $1,425 $1,459 $2,486 $2,486 57.33%$706 $633 LONG TERM DEBT PRINCIPAL $4,874 $4,379 $8,576 $8,576 56.83%

$7 $7 AMORTIZATION DEBT DISCOUNT $55 $50 $100 $100 54.89%$382 $377 DIVIDEND/GRANT IN LIEU OF TAXES $2,692 $2,642 $4,663 $4,578 58.79%

$0 $1 MISCELLANEOUS $9 $2 $24 $24 35.99%$1,297 $1,221 $9,054 $8,531 $15,848 $15,764 57.43%

NET PROFIT (LOSS) AVAILABLE FOR$747 $566 CAPITAL EXPENDITURES $4,231 $1,652 $995 $2,042 207.19%

ACTUAL(CURRENT MONTH)

UNAUDITED INCOME STATEMENT - WATER OPERATIONSHALIFAX WATER


ACTUAL(YEAR TO DATE)


ITEM # 4HRWC BOARD




REVENUE$5,619 $5,867 METERED SALES $41,364 $39,693 $68,052 $68,052 60.78%

$0 $10 WASTEWATER OVERSTRENGTH AGREEMENTS $23 $81 $0 $23 100.00%$25 $30 LEACHATE $184 $151 $389 $389 47.34%$7 $4 CONTRACT REVENUE $43 $56 $86 $86 49.78%

$17 $17 DEWATERING FACILITY/SLUDGE LAGOON $122 $107 $210 $210 58.33%$0 $0 AIRLINE EFFLUENT $54 $32 $86 $86 63.33%

$101 $67 SEPTAGE TIPPING FEES $660 $432 $650 $850 77.70%$19 $15 CUSTOMER LATE PAY./COLLECTION FEES $112 $155 $257 $257 43.53%$11 $10 MISCELLANEOUS $84 $74 $133 $133 63.55%

$5,799 $6,020 $42,647 $40,782 $69,862 $70,084 60.85% EXPENSES

$734 $728 WASTEWATER COLLECTION $4,932 $5,352 $9,446 $9,334 52.84%$1,236 $1,683 WASTEWATER TREATMENT PLANTS $9,719 $9,884 $19,425 $18,189 53.43%

$86 $82 SMALL SYSTEMS $670 $558 $1,251 $1,248 53.69%$57 $84 DEWATERING FACILITY/ SLUDGE MGM'T $210 $227 $556 $396 53.13%$13 $5 BIOSOLIDS TREATMENT $51 $55 $101 $101 50.81%$22 $26 LEACHATE CONTRACT $158 $131 $341 $341 46.41%$98 $81 SCADA, CONTROL & PUMPING $716 $545 $1,215 $1,215 58.98%

$251 $227 ENGINEERING & INFORMATION SERVICES $1,867 $1,576 $3,629 $3,552 52.56%$75 $100 ENVIRONMENTAL SERVICES $606 $627 $1,254 $1,225 49.47%

$144 $133 CUSTOMER SERVICE $1,038 $1,072 $1,864 $1,862 55.73%$247 $422 ADMINISTRATION & PENSION $2,182 $3,036 $4,485 $4,091 53.34%$850 $853 DEPRECIATION $6,174 $6,008 $11,982 $11,157 55.33%

$3,813 $4,425 $28,324 $29,071 $55,549 $52,710 53.73%


FINANCIAL REVENUE$34 $37 INVESTMENT INCOME $196 $239 $365 $365 53.71%

$167 $167 PNS FUNDING HHSP DEBT $1,167 $1,167 $2,000 $2,000 58.33%$27 $5 MISCELLANEOUS $65 $30 $72 $72 89.48%

$227 $209 $1,427 $1,435 $2,437 $2,437 58.57%

FINANCIAL EXPENSES$458 $464 LONG TERM DEBT INTEREST $3,276 $3,321 $5,817 $5,817 56.32%

$1,042 $926 LONG TERM DEBT PRINCIPAL $7,192 $6,404 $12,978 $12,978 55.42%$8 $7 AMORTIZATION DEBT DISCOUNT $55 $49 $89 $89 62.11%$4 $0 MISCELLANEOUS $20 $0 $0 $50 39.39%

$1,512 $1,397 $10,543 $9,774 $18,884 $18,934 55.68%

NET PROFIT (LOSS) AVAILABLE FOR$701 $407 CAPITAL EXPENDITURES $5,208 $3,372 ($2,135 ) $877 593.89%

UNAUDITED INCOME STATEMENT - WASTEWATER OPERATIONSHALIFAX WATER



ITEM # 4HRWC BOARD




REVENUE$572 $557 STORMWATER SITE GENERATED SERVICE $3,923 $3,923 $6,708 $6,708 58.48%$323 $323 STORMWATER RIGHT OF WAY SERVICE $2,264 $2,264 $3,881 $3,881 58.33%

$3 $4 CUSTOMER LATE PAY./COLLECTION FEES $29 $40 $70 $70 41.34%$9 $7 MISCELLANEOUS $58 $49 $93 $93 62.44%

$908 $891 $6,274 $6,275 $10,753 $10,753 58.35% EXPENSES

$271 $400 STORMWATER COLLECTION $2,191 $2,317 $4,761 $4,803 45.63%$3 $3 SCADA, CONTROL & PUMPING $24 $18 $28 $28 85.38%

$85 $37 ENGINEERING & INFORMATION SERVICES $303 $256 $590 $578 52.39%$50 $70 ENVIRONMENTAL SERVICES $364 $402 $835 $865 42.10%$23 $22 CUSTOMER SERVICE $169 $174 $303 $303 55.73%$40 $69 ADMINISTRATION & PENSION $355 $494 $729 $665 53.34%$49 $38 DEPRECIATION $344 $266 $614 $635 54.27%

$522 $639 $3,750 $3,927 $7,862 $7,876 47.61%

$386 $253 OPERATING PROFIT $2,524 $2,348 $2,891 $2,877 87.73%

FINANCIAL REVENUE$8 $0 INVESTMENT INCOME $43 $0 $81 $81 52.55%$0 $0 MISCELLANEOUS $0 $0 $0 $0 0.00%$8 $0 $43 $0 $81 $81 52.55%

FINANCIAL EXPENSES$49 $45 LONG TERM DEBT INTEREST $345 $321 $569 $569 60.59%$52 $88 LONG TERM DEBT PRINCIPAL $361 $609 $1,098 $1,098 32.89%

$1 $1 AMORTIZATION DEBT DISCOUNT $5 $4 $11 $11 49.77%$102 $134 $711 $934 $1,678 $1,678 42.39%

NET PROFIT (LOSS) AVAILABLE FOR$291 $119 CAPITAL EXPENDITURES $1,855 $1,414 $1,294 $1,280 144.91%

HALIFAX WATERUNAUDITED INCOME STATEMENT - STORMWATER OPERATIONS



ITEM # 4HRWC BOARD


ACTUAL APR 1/16 APR 1/16(YEAR TO DATE) MAR 31/17 MAR 31/17 % of

DESCRIPTION THIS YEAR LAST YEAR BUDGET* FORECAST FORECAST

REGULATED ACTIVITIES

REVENUE METERED SALES $73,443 $69,331 $121,235 $121,235 60.58% FIRE PROTECTION $4,127 $4,685 $7,074 $7,074 58.33% PRIVATE FIRE PROTECTION $481 $386 $840 $840 57.29% STORMWATER SERVICE $2,264 $2,264 $3,881 $3,881 58.33% OTHER OPERATING REVENUE $792 $778 $1,203 $1,225 64.66%

$81,108 $77,444 $134,234 $134,256 60.41% EXPENSES WATER SUPPLY & TREATMENT $3,993 $4,191 $7,983 $7,983 50.02% TRANSMISSION & DISTRIBUTION $4,734 $4,736 $8,710 $8,657 54.69% WASTEWATER & STORMWATER COLLECTION $7,110 $7,668 $14,207 $14,137 50.29% WASTEWATER TREATMENT PLANTS $9,719 $9,884 $19,425 $18,189 53.43% SMALL SYSTEMS $1,265 $1,154 $2,116 $2,112 59.88% SCADA, CONTROL & PUMPING $1,168 $943 $2,089 $2,088 55.96% ENGINEERING & INFORMATION SERVICES $4,217 $3,669 $8,067 $7,978 52.86% ENVIRONMENTAL SERVICES $1,218 $1,310 $2,605 $2,605 46.75% CUSTOMER SERVICE $2,439 $2,521 $4,384 $4,378 55.71% ADMINISTRATION & PENSION $5,171 $7,180 $10,610 $9,676 53.45% DEPRECIATION $10,955 $10,672 $21,159 $19,923 54.99%

$51,990 $53,927 $101,354 $97,726 53.20%

FINANCIAL REVENUE INVESTMENT INCOME $434 $480 $810 $810 53.59% MISCELLANEOUS $1,263 $1,185 $2,125 $2,125 59.44%

$1,697 $1,665 $2,935 $2,935 57.83% FINANCIAL EXPENSES LONG TERM DEBT INTEREST $5,046 $5,101 $8,872 $8,872 56.88% LONG TERM DEBT PRINCIPAL $12,426 $11,392 $22,652 $22,652 54.86% AMORTIZATION DEBT DISCOUNT $115 $103 $199 $199 57.84% DIVIDEND/GRANT IN LIEU OF TAXES $2,692 $2,642 $4,663 $4,578 58.79% MISCELLANEOUS $0 $0 $0 $0 0.00%

$20,280 $19,238 $36,386 $36,302 55.86% NET PROFIT (LOSS) AVAILABLE FOR CAPITAL EXPENDITURES $10,535 $5,943 ($571 ) $3,163 333.04%

UNREGULATED ACTIVITIES

REVENUE SEPTAGE TIPPING FEES $660 $432 $650 $850 77.70% LEACHATE $184 $151 $389 $389 47.34% CONTRACT REVENUE $43 $56 $86 $86 49.78% DEWATERING $122 $107 $210 $210 58.33% AIRLINE EFFLUENT $54 $32 $86 $86 63.33% ENERGY PROJECTS $97 $15 $184 $184 53.00% MISCELLANEOUS $22 $12 $22 $22 99.75%

$1,183 $806 $1,625 $1,825 64.80% EXPENSES WATER SUPPLY & TREATMENT $9 $3 $18 $18 46.82% WASTEWATER TREATMENT $434 $413 $998 $837 51.78% MISCELLANEOUS $27 $0 $37 $37 72.50% SPONSORSHIPS & DONATIONS $33 $32 $56 $56 59.68% DEPRECIATION $3 $3 $0 $0 0.00%

$505 $452 $1,109 $948 53.31% FINANCIAL REVENUE MISCELLANEOUS $110 $141 $232 $232 47.25%

$110 $141 $232 $232 47.25% FINANCIAL EXPENSES MISCELLANEOUS $28 $2 $24 $74 38.30%

$28 $2 $24 $74 38.30% NET PROFIT (LOSS) AVAILABLE FOR CAPITAL EXPENDITURES $759 $494 $726 $1,036 73.26%

NET PROFIT (LOSS) AVAILABLE FOR TOTAL CAPITAL EXPENDITURES (REG & UNREG) $11,294 $6,437 $154 $4,199 268.95%

HALIFAX WATERUNAUDITED INCOME STATEMENT - REGULATED AND UNREGULATED OPERATIONS



ITEM # 4HRWC BOARD


HALIFAX WATERUNAUDITED BALANCE SHEET - IFRS FORMAT


2016 2015'000 '000

ASSETS

Cash $58,363 $39,788

Amounts ReceivableCustomers & Contractual $15,879 $12,205 Customers & Contractual - Unbilled Services $17,457 $17,702 Halifax Regional Municipality $3,927 $4,332

Materials & Supplies $1,613 $1,554

Prepaid Expenses $273 $224 $97,512 $75,805

Regulatory Asset $3,468 $3,676 Plant in Service - Water $584,609 $567,439 Plant in Service - Wastewater $695,811 $643,325 Plant in Service - Stormwater $131,419 $118,065

Less: Accumulated Depreciation - Water ($172,919) ($161,431) Accumulated Depreciation - Wastewater ($180,826) ($158,239) Accumulated Depreciation - Stormwater ($26,114) ($23,852)

$1,035,449 $988,984 Assets Under Construction $41,531 $62,092

$1,076,980 $1,051,076


$1,175,549 $1,127,887

LIABILITIES

Trade $11,162 $12,201 Interest on Long Term Debt $2,591 $2,448 Halifax Regional Municipality $5,754 $5,748

Contractor & Customer Deposits $189 $186 Unearned Revenue $3,711 $6,263

Current Portion of Deferred Contributed Capital $12,526 $12,526 Current Portion of LT Debt $23,195 $22,374

$59,127 $61,747

Accrued Post-Retirement Benefits $466 $458 Accrued Pre-Retirement Benefit $3,675 $3,568 Deferred Pension Liability $56,065 $66,805

Deferred Contributed Capital $704,952 $694,193

Long Term Debt-Water $59,424 $53,568 Long Term Debt-Wastewater $134,466 $132,569 Long Term Debt-Stormwater $11,056 $8,442

Total Liabilities $1,029,232 $1,021,349

EQUITYAccumulated Other Comprehensive Income ($43,936) ($54,325)Accumulated Surplus $167,607 $144,299 Excess (Deficiency) of Revenue over Expenditure $22,646 $16,564

Total Equity $146,317 $106,538

$1,175,549 $1,127,887


ITEM # 4HRWC BOARD


APR 1/16 APR 1/16MAR 31/17 MAR 31/17

THIS YEAR LAST YEAR THIS YEAR LAST YEAR BUDGET* FORECAST % of % of'000 '000 DESCRIPTION '000 '000 '000 '000 BUDGET* FORECAST

REVENUE$3,851 $3,822 METERED SALES - WATER $28,156 $25,715 $46,475 $46,475 60.58% 60.58%$5,619 $5,867 METERED SALES - WASTEWATER $41,364 $39,693 $68,052 $68,052 60.78% 60.78%

$572 $557 STORMWATER SITE GENERATED SERVICE $3,923 $3,923 $6,708 $6,708 58.48% 58.48%$590 $669 FIRE PROTECTION $4,127 $4,685 $7,074 $7,074 58.33% 58.33%$323 $323 STORMWATER RIGHT OF WAY SERVICE $2,264 $2,264 $3,881 $3,881 58.33% 58.33%$258 $222 OTHER SERVICES AND FEES $1,821 $1,450 $2,586 $2,809 70.43% 64.85%

$45 $33 CUSTOMER LATE PAY./COLLECTION FEES $296 $306 $530 $530 55.95% 55.95%$34 $27 MISCELLANEOUS $241 $198 $369 $369 65.45% 65.45%

$11,292 $11,521 $82,193 $78,234 $135,675 $135,898 60.58% 60.48% EXPENSES

$552 $551 WATER SUPPLY & TREATMENT $3,993 $4,191 $7,983 $7,983 50.02% 50.02%$578 $633 TRANSMISSION & DISTRIBUTION $4,734 $4,736 $8,710 $8,657 54.35% 54.69%$734 $728 WASTEWATER COLLECTION $4,932 $5,352 $9,446 $9,334 52.22% 52.84%

$1,236 $1,683 WASTEWATER TREATMENT PLANTS $9,719 $9,884 $19,425 $18,189 50.03% 53.43%$271 $400 STORMWATER COLLECTION $2,191 $2,317 $4,761 $4,803 46.03% 45.63%$264 $278 SMALL SYSTEMS AND OTHER SERVICES $1,693 $1,570 $3,132 $2,968 54.06% 57.04%$160 $143 SCADA, CONTROL & PUMPING $1,168 $943 $2,089 $2,088 55.93% 55.96%$563 $488 ENGINEERING & INFORMATION SERVICES $4,217 $3,669 $8,067 $7,978 52.27% 52.86%$142 $208 ENVIRONMENTAL SERVICES $1,218 $1,310 $2,605 $2,605 46.77% 46.75%$341 $316 CUSTOMER SERVICE $2,460 $2,541 $4,419 $4,413 55.67% 55.73%$592 $1,000 ADMINISTRATION & PENSION $5,184 $7,191 $10,631 $9,696 48.77% 53.47%

$2,736 $2,720 DEPRECIATION $19,394 $19,124 $21,159 $21,157 91.66% 91.67%$8,167 $9,149 $60,904 $62,828 $102,426 $99,871 59.46% 60.98%

$3,125 $2,372 OPERATING PROFIT $21,288 $15,407 $33,250 $36,027 64.03% 59.09%

FINANCIAL REVENUE$75 $74 INVESTMENT INCOME $434 $480 $810 $810 53.59% 53.59%

$167 $167 PNS FUNDING HHSP DEBT $1,167 $1,167 $2,000 $2,000 58.33% 58.33%$1,093 $1,051 MISCELLANEOUS $7,638 $7,359 $504 $504 1514.77% 1514.77%$1,335 $1,291 $9,239 $9,005 $3,314 $3,314 278.77% 278.77%

FINANCIAL EXPENSES$709 $713 LONG TERM DEBT INTEREST $5,046 $5,101 $8,872 $8,872 56.88% 56.88%

$16 $15 AMORTIZATION DEBT DISCOUNT $115 $103 $199 $199 57.84% 57.84%$382 $377 DIVIDEND/GRANT IN LIEU OF TAXES $2,692 $2,642 $4,663 $4,578 57.73% 58.79%

$4 $1 MISCELLANEOUS $28 $2 $24 $74 119.28% 38.30%$1,110 $1,105 $7,881 $7,848 $13,758 $13,724 57.29% 57.43%

NET PROFIT (LOSS) BEFORE $3,350 $2,558 OTHER COMPREHENSIVE INCOME $22,646 $16,564 $22,806 $25,617 99.30% 88.40%

$0 $0 OTHER COMPREHENSIVE INCOME $0 $0 $0 $0 0.00% 0.00%

NET PROFIT (LOSS) AVAILABLE FOR$3,350 $2,558 CAPITAL EXPENDITURES $22,646 $16,564 $22,806 $25,617 99.30% 88.40%

(CURRENT MONTH) (YEAR TO DATE)

HALIFAX WATERUNAUDITED INCOME STATEMENT - IFRS FORMAT - ALL SERVICES


ACTUAL ACTUAL


ITEM #6 HRWC Board

November 24, 2016

TO: Ray Ritcey, Chair and Members of the Halifax Regional Water

Commission Board SUBMITTED BY: Original Signed By: Reid Campbell, M.Eng., P.Eng., Director, Water Services APPROVED: Original Signed By: Carl Yates M.A.Sc., P.Eng., General Manager DATE: November 18, 2016 SUBJECT: Lead Service Line Replacement Program – Application to the

NSUARB ORIGIN Lead Service Line Replacement Program Business Plan, approved by the Halifax Water Board at the October 27, 2016 meeting. RECOMMENDATION It is recommended that the Halifax Water Board approve an application to the Nova Scotia Utility and Review Board, to amend the Halifax Water Rules and Regulations, to enable Halifax Water to financially contribute to the replacement of Lead Service Lines (LSL’s) on private property in the following two circumstances:

1. Where Halifax Water, due to an unplanned or emergency circumstance disturbs or replaces a LSL, the LSL will be replaced in its entirety at Halifax Water’s expense.

2. In any other circumstance where a LSL is replacement is planned, including both customer initiated and Halifax Water initiated, Halifax Water will contribute 25% of the cost of the replacement of the LSL on private property up to a maximum contribution of $2,500.

Page 1 of 5

ITEM #6 HRWC Board

November 24, 2016

BACKGROUND Halifax Water does not currently have the authority to spend rate base funds on private property. Accordingly, any time Halifax Water has replaced a LSL, the customer has been responsible for replacing the LSL on their property. Halifax Water estimates that no more than 10% of Halifax Water customers have chosen to replace their LSL when Halifax Water initiates replacement of the public portion. As a consequence, staff estimate that there are approximately 10,000 private LSL’s remaining despite the fact that all but 2,500 public LSL’s have been replaced. Research conducted through our NSERC Industrial Chair by Dalhousie University has established that, at best, there is no benefit to replacing only a portion of the LSL and in many cases, a partial replacement will result in increased lead levels within the customer’s premise. This research has been confirmed by numerous researchers. A white paper released by the USEPA in October, 2016, proposes that new regulations permit only complete LSL replacement. With the knowledge that partial LSL replacement increases lead levels and that only 10% of customers replace the private portion of their LSL, in 2012, Halifax Water stopped doing partial replacements. The consequence of this is that to replace our remaining 2500 LSL’s we are dependent on convincing the customer to replace their LSL. This has two further consequences. Halifax Water can no longer do larger scale LSL replacement programs as part of Halifax street and sidewalk renewal programs which are the most cost effective way to replace public LSL’s. As well, Halifax Water has been deferring renewal of water mains on streets with LSL’s which is a sub-optimal asset renewal decision which will, with time, create a backlog of overdue water main renewal projects. DISCUSSION The two circumstances, cited in the recommendation have different motivating factors and will be discussed individually as follows. Unplanned or Emergency LSL Replacement

In a small number of cases each year, Halifax Water is required to replace a LSL on short notice. These include:

• Detecting a leaking public LSL.

• Repairing a water main break where a LSL is connected to the repaired section.

• Having to renew Halifax Water infrastructure where a LSL is connected or in the vicinity.

• Inadvertently disturbing a LSL (physical disturbance of an LSL can have the same effects as a partial replacement).

Page 2 of 5

ITEM #6 HRWC Board

November 24, 2016

In these circumstances, the outcome for the customer will be, in a majority of cases, an increase in lead levels experienced inside the home. Because Halifax Water activity has resulted in damaging of the customer’s private property, resulting in increased exposure to lead, the appropriate response is for Halifax Water to immediately address the situation by replacing the customer’s LSL to the water meter. Planned LSL Renewals Halifax Water’s business plan for LSL replacement, consistent with the National (US) Drinking Water Advisory Council (NDWAC) recommendations, is based on replacing all LSL’s in the Halifax Water system by 2050. In order to do this, Halifax Water will have to communicate frequently with customers to ensure that they take steps to replace the private portion of the LSL. The NDWAC recommendations also make clear that LSL replacement is a shared responsibility between the utility and the customer. In Halifax Water’s experience, there are numerous barriers to customer’s replacing their LSL’s. These include:

• Not believing themselves to be at risk;

• Not seeing it as a worthwhile investment in their property;

• Lack of understanding of how to have the work done;

• Lack of time to prepare to have the work done;

• Cost Halifax Water’s business plan includes steps to work with customers to address all of these barriers. These steps include planned discussions with Halifax municipal staff as to whether financing LSL replacement on the tax bill is an option and with senior levels of government to explore whether existing funding programs could be directed to LSL replacement. Notwithstanding these steps, staff believe that the cost barrier will remain a significant one with the average cost of LSL replacement being approximately $5,000. Further, as the program progresses, lacking a financial assistance program, the first few years of LSL replacement will be limited to customers with the financial means and motivation to do the LSL replacement unassisted. With time, the group of remaining LSL customers, yet to be addressed, will be weighted to those who are financially disadvantaged. There is a direct benefit to Halifax Water in providing a financial incentive to customer to replace their LSL. Currently, having made the decision to cease partial LSL replacements, Halifax Water is unable to conduct full street or neighbourhood replacement programs in conjunction with Halifax street and sidewalk projects. This is the most efficient means of replacing LSL’s compared to “one-of” replacements and the ability to share in street restoration costs. With a financial incentive as part of the

Page 3 of 5

ITEM #6 HRWC Board

November 24, 2016

approach to address customer barriers to replacement, there is a much greater probability of being able to assemble full street projects. Further, as indicated above, Halifax Water is currently making sub-optimal water main renewal choices by avoiding streets with LSL’s. Staff is therefore recommending that a financial incentive of 25% of the replacement cost be provided for planned LSL renewal’s up to a maximum contribution of $2,500. The cap of $2,500 is proposed on the bases that a maximum project cost of $10,000 captures the full cost range in the vast majority of cases. Private renewal projects in excess of $10,000 would typically involve high end private property improvements. The basis for the 25% contribution limit recognizes that this is still primarily a private property responsibility and aligns with Halifax Water intentions in having the customer opt to proceed. The 25% contribution is also consistent with the planned transmission main upgrade on Quinpool Road in Halifax. The NSUARB has recently approved the Quinpool Road Transmission Main Structural Lining project scheduled for construction in 2017. This project will require that approximately 12 LSL’s be replaced and Halifax Water has proposed that replacement of the private portion of the LSL be included in the project. As the project is 75% funded by senior levels of government, Halifax Water is, in this case, responsible for 25% of the cost of the private LSL renewal. Bill 62, introduced in the fall session of the Nova Scotia Legislature received Royal Assent on November 10. This Bill amends the Municipal Government Act and the Halifax Charter to permit municipalities to finance water supply infrastructure on private property. This Bill, intended to enable municipalities to assist homeowners with private property water supply issues experienced in this summer’s drought, is sufficiently broad to facilitate private LSL replacement. Even with the financial incentive, the decision to replace the private LSL will remain a voluntary choice by the customer. Regardless of incentives, there will remain a small portion of customers who are unwilling or unable to replace their LSL. A variety of business processes will need to be developed to define how Halifax Water staff and contractors interact with the customer on private property including a legal release that the customer will be required to execute in advance. Development of these processes will be a priority in the coming months, ahead of the 2017 construction season. BUDGET IMPLICATIONS Much work needs to be completed to determine how many private LSL’s are remaining in the system but the current estimate is 10,000. The average cost to replace a private LSL is approximately $5,000 with an average proposed utility contribution of $1,250. Based on this, in 2016 dollars, the cost of this program is $12.5 million over 30 years.

Page 4 of 5

ITEM #6 HRWC Board

November 24, 2016

In order to replace all public LSL’s by 2050, Halifax Water will need to ramp up from its current replacement rate of 25 to 100 per year. This will require an increase in program funding for service replacement from current levels to approximately $1 million per year. In the initial years of the program the focus will be on public LSL replacements and associated private LSL replacements. Costs for the program will be accommodated within annual capital budgets. ALTERNATIVES None recommended. ATTACHMENT

Report Prepared by: Original Signed By: Reid Campbell, M.Eng., P.Eng., Director, Water Services 902-490-4877

Financial Reviewed by: Original Signed By:

Cathie O’Toole, MBA, CPA, CGA, Director, Corporate Services 902-490-3685

Page 5 of 5

ITEM# 1-I Page 1 of 16 HRWC Board November 24, 2016

TO: Ray Ritcey, Chair and Members of the Halifax Regional Water Commission

Board SUBMITTED BY: Original Signed By:

Cathie O’Toole, MBA, CPA, CGA, Director, Corporate Services Original Signed By: Reid Campbell, P.Eng., Director, Water Services Original Signed By: Susheel Arora, M.A.Sc., P.Eng., Director, Wastewater & Stormwater Services

Original Signed By: Kenda MacKenzie, P.Eng., Director, Regulatory Services APPROVED: Original Signed By:

Carl D. Yates, M.A.Sc., P.Eng., General Manager SUBJECT: Financial and Operations Information Report

INFORMATION REPORT ORIGIN: Regular update. This report provides a high level overview of financial and operational performance for the utility. Financial results are presented first, followed by indicators and statistics for water and wastewater.

ITEM# 1-I Page 2 of 16

HRWC Board November 24, 2016

FINANCIAL



Regional Water Main Break/Leak Data

Water Accountability

Year

Total Breaks/Leaks

Current 12 Month Rolling Total (up to August 31/16)

Losses per Service Connection/Day

(International Water Association Standard) 2015/16 226

215

2014/15 210 Period Ending September 30, 2016

2013/14 213 Real Losses: 249 litres

CBS Target: 180

2012/13 262 2011/12 205

Total 1116

Yr. Avg. 217.6

Average Daily Water Production



ObjectiveTotal Sites

% of Sites Achieving Target

All Sites: 90th

Percentile < 15 µg/L

CBSC Awarded

Points

Disinfection 65 97% --- 17Total Trihalomethanes 24 100% --- 20Haloacetic Acids 21 95% --- 16Particle Removal 5 100% --- 20Corrosion Control* 69 --- 6.1 20TOTAL 93

Score: 93/100

Water Quality Master Plan Objectives

2016-2017 Q2



In this report each facility is assessed using monthly or quarterly averages, depending on the averaging period specified in its Approval to Operate.

CBOD5

(mg/L)

TSS (mg/L)

NSE Limit

Avg.NSE Limit

Avg.NSE Limit

Avg.NSE Limit

Avg.NSE Limit

Avg.NSE Limit

Avg.NSE Limit

Avg.NSE Limit

Avg.

Halifax 50 32 40 12 5000 1176 6-9 6.9 Continued

Dartmouth 50 37 40 16 5000 855 6-9 6.9 Continued

Herring Cove 50 23 40 15 5000 87 6-9 7.0 Continued

Eastern Passage 50 8 40 9 5000 61 6-9 7.1 Continued

Mill Cove 25 10 25 10 200 491 6.5-9 6.6 Continued

Springfield 20 3 20 4 200 10 6-9 6.8 0.02 1.03 Continued

Belmont 25 13 25 21 200 1842 6-9 6.8 0.02 0.10 Continued

Frame 20 9 20 12 200 69 6-9 6.5 0.02 0.00 Continued

Middle Musq. 20 5 20 11 200 21 6-9 7.4 Continued

Uplands 20 8 20 5 200 23 6-9 7.1 Continued

Aerotech 5 5 5 5 200 11 6-9 7.35.7 W 1.2 S

0.2 0.5 0.3 Continued

North Preston 10 5 10 3 200 10 6-9 7.0 3 0.2 1.5 0.8 Continued

Lockview 20 6 20 7 200 21 6.5-9 6.9 8.0 S 2.4 1.2 S 0.7 Continued

Steeves (Wellington) 20 5 20 1 200 10 6.5-9 7.4 14.4 S 0.1 1.0 S 0.1 Continued

BLT 15 7 20 12 200 10 6-9 7.35 W 3 S

2.23 W 1 S

2.1 0.02 0.12 5 6.6 Continued

Avg. of all Facilities

NOTES & ACRONYMS:CBOD5 - Carbonaceous 5-Day Biochemical Oxygen Demand NSE Compliant

TSS - Total Suspended Solids NSE Non-CompliantTRC - Total Residual ChlorineW / S - Winter / Summer compliance limitsNSE requires monthly averages be less than the NSE Compliance Limit for each parameter (Dartmouth, Eastern Passage, Halifax, Herring Cove, Mill Cove)NSE requires quarterly averages be less than the NSE Compliance Limit for each parameter (Aerotech, Lockview, Mid. Musq., Belmont, Frame, BLT, Uplands, North Preston, Steeves, Springfield)Continued - All parameters remain essentially unchanged since the last reportImproved - One or more parameter(s) became compliant since the last reportDeclined - One or more parameters(s) became non-compliant since the last report

12

LEGEND

6.60.30.81.07.0313

-

10

No t acute ly le tha l

Trend Toxicity

Dissolved Oxygen (mg/L)

-

-

-

-

- -

-

-

-

-

-

- - -

Wastewater Treatment Facility Compliance Summary

Rolling Averages - August, September and October 2016

-

-

-

-

- - -

- -

E. coli (counts/ 100mL)

pHAmmonia

(mg/L)Phosphorous

(mg/L)TRC

(mg/L)

-No t acute ly

le tha l

Lethal

Lethal

-

-


Lethal


-

- -

- -

-

-

-

-

-

-

Wastewater Treatment

Facility

-

-

- -

-

- - -

-


- - -

-



NOTES & ACRONYMS: CSO - Combined Sewer Overflow SSO - Sanitary Sewer Overflow

Rainfall data is from Halifax Water’s rain gauge at the Halifax WWTF.

There were two overflows on days when there was no recorded rainfall, as follows:

1. July 13: The CSO at the Wallace St CSO was due to planned maintenance required to clear blockages caused by debris.

2. July 20: The CSO at the Wallace St CSO was due to blockages caused by debris.





There were two overflows on days when there was no recorded rainfall, as follows:

1. August 20: The SSO at the Fish Hatchery Park PS was due to a mechanical failure at the station.

2. August 23: The CSO at the Wallace St CSO was due to a planned maintenance required to clear blockages caused by debris.





There were no overflows on any days when there was no recorded rainfall.



Lower numbers represent better performance



Lower numbers represent better performance. TSS and cBOD Q3 averages were borderline with the NSE Approval limit, but considered to be within compliance.


ITEM 2-IHRWC Board

November 24, 2016

20-Apr-16

25-Apr-16

WATER

Approved Budget $16,453,000 97% WASTEWATER

Approvals to date $15,947,600 Approved Budget $35,838,000 88% Total Budget: $66,777,000.00

Approvals to date $31,424,200 Total To Date: $60,052,800.00

STORMWATER

Approved Budget $3,951,000 90% CORPORATE PROJECTS

Approvals to date $3,563,000 Approved Budget $10,535,000 77% Total % to date 90%

Approvals to date $9,118,000

CAPITAL BUDGET APPROVALS TO DATE - 2016/17

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

$20,000,000

Water Budget

97%

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000Stormwater Budget

91%

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

Corporate Projects

90%

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

Wastewater Budget

88%

ITEM 2-I

HRWC Board

November 24, 2016

HRWC

BOARD GM NSUARB Description

Approved

Amount

Net Additions

to Budget

Consultant/

Contractor

Construction

Tender

Price

Construction

Budget

Estimate

2016/17 Capital Budget

28-Jan-16 24-Mar-16 Advanced Funding Integrated Projects

East

Murray Hill Drive W/M Renewal $455,000 $455,000 Dexter $377,077 $479,730

Farquharson Street Water Main Renewal $500,000 $500,000 Dexter $387,693 $458,858

Brompton Road $215,000 $215,000 Dexter $166,299 $190,582

Everette Street Water Main Renewal $410,000 $410,000 Dexter $251,384 $328,500

24-Mar-16 West

Scarlet Rd $335,000 $335,000 Dexter

Foxglove Lane $150,000 $150,000 Dexter

Parmbelle Lane $250,000 $250,000 Dexter

George Dauphinee Drive $620,000 $620,000 Deferred to 2017

Layton Road $325,000 $325,000 Deferred to 2017

Inverness Avenue $260,000 $260,000 Dexter $169,621 $223,214

24-Mar-16 Central

Tillock Drive $380,000 $380,000 Sackville Trenching $256,059 $351,245

Tillock Court $100,000 $100,000

Included in Tillock

Drive Tender

Total Integrated Project $4,000,000 $4,000,000

5-Mar-15 13-Apr-15

Macdonald Bridge Transmission Main Replacement project $7,700,000:

funding in the amount of $354,000 is available from underspending on

the Kearney Lake Road Water Transmission Main Phase 2: funding

in the amount of $3,750,000 is available from the 2015/16

Capital Budget under "Macdonald Bridge Transmission Main Replacement"

and funding in the amount of $3,295,000 will be included in the 2016/17

Capital Budget $7,700,000 $3,295,000 CBCL

28-Jan-16 13-Apr-16 Valve Renewals $125,000 $125,000

28-Jan-16 13-Apr-16 Hydrant Renewals $75,000 $75,000

WATER


TOTAL CAPITAL BUDGET FOR WATER $16,453,000

Date of Approval

$563,792 $631,009

HRWC


Approved

Amount

Net Additions

to Budget

Consultant/

Contractor

Construction

Tender

Price

Construction

Budget

Estimate

WATER



Date of Approval

28-Jan-16 13-Apr-16 Service Line Renewals $190,000 $190,000

28-Jan-16 13-Apr-16 Large Tapping Machine c/w electric operator and 4" to 12" cutters $34,000 $34,000

28-Jan-16 13-Apr-16 Small Hydro Vac for valve box maintenance $25,000 $25,000

28-Jan-16 13-Apr-16 Plastic Shell Cutters for Tapping Machine $12,000 $12,000

28-Jan-16 13-Apr-16 Portable valve Exerciser $10,000 $10,000

28-Jan-16 13-Apr-16 Confined Space Entry System for Bennery Lake Water Supply Plant $14,000 $14,000

28-Jan-16 19-Feb-16 Geizer 158 Reservoir Rehabilitation $2,170,000 $2,170,000 MacDonald Appl. $1,711,189 $1,971,005

$5,950,000

Accumulative Total - January, 2016 $9,950,000

23-Feb-16 JD Kline Replace Power Pole at Low Lift Station $40,000 $40,000

23-Feb-16 Bedford Connector Transmission Main Phase 3 - Design $90,000 $90,000

23-Feb-16 Lyle Street Control Chamber Access Improvement $30,000 $30,000

23-Feb-16

Topsail Control Chamber - Confined Space Energy Retrofit - funding

available from underspending in 2015/16 CB under "Geizer 158 Retrofit

Chamber Retrofit which did not proceed last year $43,000 $0

23-Feb-16 Confined Space Entry Retrofit - Bridgeview PRV Chamber $79,000 $79,000

23-Feb-16 Robie 2 Chamber Upgrades $160,000 $160,000

23-Feb-16 Automated Flushing Program $20,000 $20,000

HRWC


Approved

Amount

Net Additions

to Budget

Consultant/

Contractor

Construction

Tender

Price

Construction

Budget

Estimate

WATER



Date of Approval

24-Feb-16 Relocated CT Calculation Equipment Lucasville Meter Chamber $31,000 $31,000

23-Feb-16

Critical Valves Bedford Hwy - funding in the amount of $57,000 is available

from underspending in SAP #3-1921 2015/16 Capital Budget $57,000 $0

25-Feb-16 6-Apr-16 Lake Major Water Supply Plant - New Diesel Generator $1,900,000 $1,900,000

Accumulative Total - February, 2016 $2,350,000

8-Mar-16 Bennery Lake WSP Surge Protection $17,000 $17,000

8-Mar-16 Lake Major WSP Purchase Fluorescence Meter $90,000 $90,000

8-Mar-16 Lake Major WSP - Replace Contactors in the MCC $34,000 $34,000

8-Mar-16 Lake Major WSP - Integrate Chlorine Alarms $50,000 $50,000

8-Mar-16 Lake Major WSP Chemical Feed Pump Replacements $85,000 $85,000

8-Mar-16 JD Kline WSP New Laptop system to Backwash Filters $12,000 $12,000

8-Mar-16 JD Kline WSP - Ampgard III to Vacuum Contactor Conversion Program $40,000 $40,000

8-Mar-16 Purchase Inline Zeta Potential Meters for Water Plants $100,000 $100,000

8-Mar-16 Purchase Particle Counters for Water Plants $235,000 $235,000

30-Mar-16 Lake Major WSP - Dewatering Equipment $100,000 $100,000

30-Mar-16

Cliff Street Watermain Replacement was not originally budgeted for in

2016/17. Funding in the amount of $60K is available from underspending in

the "First Street Watermain Renewal Project" (SAP3-2028) $60,000 $0

HRWC


Approved

Amount

Net Additions

to Budget

Consultant/

Contractor

Construction

Tender

Price

Construction

Budget

Estimate

WATER



Date of Approval

30-Mar-16

Lake Major WSP - Dedicated Service Water Pumping Station

Design Phase $60,000 $60,000

30-Mar-16 Bennery Lake WSP - Power Monitoring $20,000 $20,000

30-Mar-16 Lake Major WSP - Replace Fluoride System $10,000 $10,000

30-Mar-16

J.D. Kline Replace Turbidimeters and ph. Meters

project was not identified for 2016/17. Funding in the amount of $11K is

available from underspending in the 2015/16 JD Kline Chemical Feed Pump

Replacement Program $11,000 $0

30-Mar-16 2015/16 CB Governor's Brook Transmission Main Oversizing $197,000 $0

30-Mar-16 Lakeside Timberlea CCC 2015/16 $2,000 $0

31-Mar-16 22-Apr-16 JD Kline WSP - Replacement of the Lime Feed and Delivery System $300,000 $300,000

Accumulative Total - March, 2016 $1,153,000

15-Apr-16 4-May-16 Bennery Lake WSP Plate Settlers $440,000 $440,000

Accumulative Total - April , 2016 $440,000

25-May-16 Rechlorination Station Upgrades $26,000 $26,000

25-May-16 Versa Valve Removal Project $20,000 $20,000

25-May-16 Temporary Water Line - Pipe Materials Purchase East Region $18,000 $18,000

25-May-16 Water Distribution Pressure Monitoring Equipment $10,000 $10,000

25-May-16 Belmont PRV Valve Replacement $10,000 $10,000

25-May-16 Chlorine Analyzer Replacement Program $23,000 $23,000

HRWC


Approved

Amount

Net Additions

to Budget

Consultant/

Contractor

Construction

Tender

Price

Construction

Budget

Estimate

WATER



Date of Approval

25-May-16 Zinck PRV Meter Replacement $8,000 $8,000

25-May-16 Bedford Reservoir Inflow Meter Replacement $8,000 $8,000

Accumulative Total - May , 2016 $123,000

24-Jun-16

Gander Avenue Water Main Renewal Integrated Project

This project was not budgeted for in 2016/17: Funding in the amount of

$140,000 from underspending in the Farquaharson Street WM Project, and

$100,000 is available from underspending in the Everette Street and

Brompton Avenue Water Main Renewal IP $240,000 $0 Dexter Construction $230,480 $240,000

27-Jun-16

Courtney Road Meter Chamber Abandonment project was not budgeted for in

the 2016/17 CB. Funding in the amount of $17,000 is available from the

2015/16 CB - Renfrew abandonment project which has been deferred to

another budget year $17,000 $0

29-Jun-16 Lake Major Water Supply Plant - Isolating the Treatment Trains $68,000 $68,000

30-Jun-16 7-Jul-16

Geizer 158 Reservoir Rehabilitation - Floor Replacement project was not

budgeted for in 2016/17

Funding in the amount of $2.75 Million is available from underspending

on the Macdonald Bridge Transmission main project which will be re-

budgeted for in 2017/18 $2,750,000 $0

Accumulative Total - June , 2016 $68,000

5-Jul-16 JD Kline WSP Industrial Water Pumps Upgrade $160,000 $160,000

13-Jul-16 JD Kline - Pump Station MCC Ventilation $72,000 $72,000

22-Jul-16 JD Kline WSP Geosmin Taxonomy Study $165,000 $165,000

29-Jul-16 Water Treatment Facility Security Upgrades $50,000 $50,000

29-Jul-16Horne's Road Bridge Watermain Replacement Project was not budgeted for

in 2016/17: Funding in the amount of $90,000 is available from

underspending on the Tillock Drive WM Renewal Project (SAP $3-2307) $90,000 $0

Accumulative Total - July , 2016 $447,000

HRWC


Approved

Amount

Net Additions

to Budget

Consultant/

Contractor

Construction

Tender

Price

Construction

Budget

Estimate

WATER



Date of Approval

22-Aug-16

Bennery Lake Water Supply Plant - Low Lift VFD Pump Replacement

Program $110,000 $110,000

23-Aug-16 Water Sampling Station Relocation Program $29,000 $29,000

31-Aug-16

CSE Retrofits - Central Region project was not included in the 2016/17 CB:

Funding in the amount of $100K is available from underspending in the (SAP

#3-2307) Tillock Court Water Main Project $100,000 $0

31-Aug-16

Hare Lane WM Emergency Renewal Project was not budgeted for in

2016/17: Funding in the amount of $25K is available from underspending in

the Murray Hill WM Renewal Project $25,000 $0

Accumulative Total - August, 2016 $139,000

06-Sep-16 Water transmission Main Condition Assessment Program $75,000 $75,000

06-Sep-16 Water Structures Condition Assessment Program $150,000 $150,000

15-Sep-16

JD Kline WS Plant Building Roof Renewal project was not identified in

2016/17: Funding in the amount of $155K is available from the 2015/16 CB

under: Wastewater - JD Kline Entrance Road Project which will be deferred

to 2017/18 $145,000 $0

23-Sep-16 Lake Major HVAC Study $100,000 $100,000

23-Sep-16 JD Kline WSP Raw Water Pump Upgrade Study $230,000 $230,000

23-Sep-16

JD Kline WSP Uninterruptible Power Supply System Replacement project in

the amount of $30,000 was not budgeted for in 2016/17

Funding in the amount of $30,000 is available from underspending in SAP #3-

1420 (2010/11 CB) (JD Kline Replace Raw Water Pump) which is under

budget $30,000 $0

23-Sep-16 Peninsula Low North Transmission Main Rehabilitation Design $40,000 $40,000

HRWC


Approved

Amount

Net Additions

to Budget

Consultant/

Contractor

Construction

Tender

Price

Construction

Budget

Estimate

WATER



Date of Approval

29-Sep-16 31-Oct-16

Quinpool Road/Peninsula Transmission Main Rehabilitation was not

budgeted for in 2016/17

funding from CWWF provides 75% cost sharing, with HW providing 25%

of eligible costs, and 100% of ineligible costs. This will equate to $469,500

from CWWF and $206,500 from HW

Funding in the amount of $206,500 is available from underspending in the

"Water - Critical Valves project which is not proceeding this year $676,000 $676,000

Accumulative Total - September, 2016 $1,271,000

11-Oct-16

Lake Major WSP Fire Alarm System Upgrades project was not

budgeted for in 2016/17: Funding in the amount of $30K is available from

underspending in the Lake Major WSP Replace Lime Feed & Delivery$30,000 $0

12-Oct-16

Bedford West CCC (Wastewater) Various Phases 2016/17

$6,600 from the $14,000 in Item 3.045 Bedford West CCC and $11,200 from

the $66,000 in Item 2.074 Bedford West CCC $6,600 $6,600

Accumulative Total - October, 2016 $6,600

9-Nov-16

JD Kline Water Supply Plant - Man Down System was not budgeted for in

2016/17 Funding in the amount of $10,000 is available from underspending

in the 2016/17 CB under "JD Kline Electric Motor Power Efficiency

Upgrades Projects (SAP #3-1521)$10,000 $0

Accumulative Total - November, 2016 $0

Total To Date $15,947,600

ITEM 2-I

HRWC Board

November 24, 2016

HRWC


Approved

Amount

Net Additions

to Budget

Consultant/

Contractor

Construction

Tender

Price

Construction

Budget

Estimate

28-Jan-16 24-Mar-16

2016/17 Capital Budget Advanced Funding Integrated

Projects

East

Murray Hill Drive W/M Renewal $38,000 $38,000 Dexter Construction $6,166 $27,810

Farquharson Street Water Main Renewal $109,000 $109,000 Dexter Construction $56,966 $78,215

Brompton Road $278,000 $278,000 Dexter Construction $141,471 $199,881

Everette Street Water Main Renewal $97,000 $97,000 Dexter Construction $52,608 $69,524

Alfred Street $199,000 $199,000 Dexter Construction $55,663 $148,477

Beckfoot Drive $9,000 $9,000 to be undertaken by HW Ops

Strath Lane $226,000 $226,000 Dexter Construction $86,977.00 $147,739.00

Westwood Drive $121,000 $121,000 Dexter Construction $5,769.00 $8,690.00

28-Jan-16 24-Mar-16 West Dexter Construction $20,112.00 $56,488.00

Scarlet Rd $206,000 $206,000

Foxglove Lane $13,000 $13,000

Parmbelle Lane $79,000 $79,000

George Dauphinee Drive $54,000 $54,000 deferred to 2017

Layton Road $13,000 $13,000 work not required

Inverness Avenue $22,000 $22,000 work not required

28-Jan-16 24-Mar-16 Central

Tillock Drive $13,000 $13,000 to be undertaken by HW Ops

Tillock Court $9,000 $9,000 to be undertaken by HW Ops

Doyle Street $19,000 $19,000

McQuarrie Bridge (Fall River) $150,000 $150,000 work not required

Lydgate Drive $9,000 $9,000 to be undertaken by HW Ops

Total Integrated Projects $1,664,000

WASTEWATER

TOTAL CAPITAL BUDGET FOR WASTEWATER $35,838,000


Date of Approval

HRWC


Approved

Amount

Net Additions

to Budget

Consultant/

Contractor

Construction

Tender

Price

Construction

Budget

Estimate

WASTEWATER



Date of Approval

28-Jan-16 13-Apr-16 Manhole Renewals $32,000 $32,000

28-Jan-16 13-Apr-16 Lateral Replacements $2,190,000 $2,190,000

28-Jan-16 13-Apr-16 SIR Program Flow Meters and Related Equipment $40,000 $40,000

26-Nov-16 12-Jan-16 Corporate Flow Monitoring Program (2015/16, 2016/17) $660,000 $660,000

28-Jan-16 13-Apr-16 Miscellaneous Equipment Replacement $70,000 $70,000

28-Jan-16 10-Mar-16

Wastewater System - Trenchless Rehabilitation Program:

Funding in the amount of $300,000 from underspending in the

2015/16 Sewer Lining Program: and $1,500,000 is available

from the 2016/17 Capital Budget $1,800,000 $1,500,000 Insituform Tec Limited $805,192 $1,472,779

29-Jan-16

Leiblin Pumping Station Elimination Preliminary

Design Halifax $75,000 $75,000 HW staff

$4,567,000

Accumulative Total - January, 2016 $6,231,000

03-Feb-16

The $42,500 in regulated activity funding is available from two

sources. $20,000 is available from underspending on the Mill

Cove CHP Fatal Flaw/Due Diligence Analysis, and the

Preliminary Design and Cost Analysis , with the remaining

$22,500 available from projected under spending within the

2015/16 Wastewater – Energy – Energy Management Capital

Program. The $42,500 in unregulated activity funding is

available from within the 2016/17 Unregulated Capital Budget -

Mill Cove Biogas CHP. $85,000 $0

19-Feb-16Bisset Pumping Station Forcemain Replacement

project from 2015/16 Capital Budget $240,000 $0

25-Feb-16 8-Apr-16 Balsam Road Pumping Station (PS) Elimination $770,000 $770,000 Dexter Construction

25-Feb-16 5-Apr-16 Northwest Arm Sewer Rehabilitation - Detailed Design $300,000 $300,000 Robinson Consultants $588,150 $585,900

25-Feb-16 6-Apr-16 Waterfront Drive Wastewater System Replacement $500,000 $500,000

Project deferred pending

outcome of other capital work

Accumulative Total - February 2016 $1,570,000

HRWC


Approved

Amount

Net Additions

to Budget

Consultant/

Contractor

Construction

Tender

Price

Construction

Budget

Estimate

WASTEWATER



Date of Approval

09-Mar-16

Wastewater Pump Station Upgrade Program - East Region

2015/16 Capital Budget $110,000 $0

10-Mar-16

HRM Land Transfer - Subdivision Costs

Project was not included in the 2016/17 Budget. Funding in the

amount of $75,000 is available from underspending in the

Lakeside Pumping Station Diversion Project in the 2015/16 CB $75,000 $0

29-Mar-16

Halifax WWTF - Various Upgrades: $76,000:

Funding available from underspending in 2012/13 CB in the

following projects:

Dartmouth WWTF HHSP Upgrades $5,000

Herring Cove WWTF HHSP Upgrades 13/14 CB $41,000

Halifax WWTF HHSP Upgrades 13/14 CB $14,000

Lakeside PS Diversion to HFX Sewershed: $16,000 $76,000 $0

29-Mar-16

WW Pump Station Upgrade Program

Central Region (2015/16 CB) $70,000 $0

31-Mar-16 26-May-16

Bedford PS Rehabilitation (at Mill Cove WWTF) funding in the

amount of $2.85M is available from the 2016/17 CB

The remainder of funds in the amount of $400K is available from

underspending in the 2015/16 Lakeside Pumping Station

Diversion Project which came in under budget $3,250,000 $2,850,000 Filtrum Inc. $1,495,600

31-Mar-16 14-Apr-16

2015/16 Wastewater Pumping Station Upgrade Program -

West Region $420,000 $0

Accumulative Total - March 2016 $2,850,000

04-Apr-16

North Park Upgrade Integrated Project - Additional scope

funding in the amount of $55K is available from under spending

in the 2015/16 CB under Lahey Road Integrated Project $55,000 $0

04-Apr-16 2015/16 Wet Weather Management Program $125,000 $0

HRWC


Approved

Amount

Net Additions

to Budget

Consultant/

Contractor

Construction

Tender

Price

Construction

Budget

Estimate

WASTEWATER



Date of Approval

15-Apr-16

HWWTF Halifax Wastewater Treatment Facility

Ventilation Air Heat Recovery Project

This project was originally scheduled for 2017/18. Due to the

successful results from Herring Cove WWTF Vent Air Heat

Recovery project, it was decided to use the funds allocated

from 2015/16 CB under "WW HCWWTF - Heat Recovery

Phase 2 - Effluent Heat Recovery $250,000 $0

28-Apr-16 22-Aug-16

Aerotech WWTF Expansion and Upgrade Project -

Construction / Design $22,755,000 $13,960,000

Accumulative Total - April 2016 $13,960,000

3-May-16 Eastern Passage WWTF Secondary Clarifier Launder Covers $49,000 $49,000

03-May-16

Mill Cove WWTF - Various Capital Projects:

Compressor Replacement: $20,000

Entrance Gate Replacement: $20,000

Wet Scrubber Media Replacement: $20,000

Digester Roof Coating: $135,000 $195,000 $195,000

04-May-16 Roach's Pond Pumping Station - Trash Rack $75,000 $75,000

24-May-16 EPWWTF Process Water Filter Upgrades $26,000 $26,000

24-May-16 EPWWTF Automation of RAS Gates $97,000 $97,000

24-May-16

EPWWTF - Fall Protection Grates - Sludge Tank and Inlet

Chamber $6,000 $6,000

25-May-16 DWWTF - Influent Duty Pump Installation $160,000 $160,000

HRWC


Approved

Amount

Net Additions

to Budget

Consultant/

Contractor

Construction

Tender

Price

Construction

Budget

Estimate

WASTEWATER



Date of Approval

31-May-16

Mill Cove TF - Clarified Access - Project not budgeted for in

2016/17: Funding in the amount of $55K is available under

2016/17 "Emergency Wastewater Treatment Facility Equipment

replacement $200,000 $55,000

Accumulative Total - May 2016 $663,000

29-Jun-16 Pumping Station Standard $135,000 $135,000

29-Jun-16 Autoport Pleasant Street PS Replacement $200,000 $200,000

29-Jun-16

Additional Funding - Bedford CCC for Temporary

Pumping Station#1 and Phase 5-4: Funding in the amount of

$12,000 is available from underspending in the 2016/17 CB

under: Leiblin PS Elimination Project that came in under budget$12,000 $0

Accumulative Total - June, 2016 $335,000

05-Jul-16

NS Power Meter Relocations

Funding is available from the 2015/16 CB from underspending in

the Energy Management Retrofit Project $22,750 $0

05-Jul-16

Beechville Lakeside Timberlea WW Treatment Facility

Clarifier Access funding in the amount of $16K is available from

2016/17 CB - Emergency WW Treatment Facility Equipment

Replacements) $200,000 $16,000

06-Jul-16 HWWTF Installation of TSS Analyzer $82,000 $82,000

05-Jul-16 6-Sep-16 Eastern Passage Pumping Station - Efficiency/Pump Control $650,000 $650,000

19-Jul-16

Smallwood Avenue WW IP (2016) project was not

budgeted for in 2016/17: Funding in the amount of 72,000 is

available from the Waterfront Drive WW System Replacement

project which will not be proceeding at this time $72,000 $0 Dexter Construction $57,043 $46,929

25-Jul-16

Centrifuge Dewater Equipment - Mill Cove WWTF project was

not budgeted for in 2016/17: Funding in the amount of $167,000

is available from the Dartmouth Wastewater Treatment Facility -

Fine Screen Upgrade project which will not be proceeding this

year $1,000,000 $167,000

HRWC


Approved

Amount

Net Additions

to Budget

Consultant/

Contractor

Construction

Tender

Price

Construction

Budget

Estimate

WASTEWATER



Date of Approval

27-Jul-16

Springfield Lake WWTF - UV Installation was not budgeted for

in 2016/17. Funding in the amount of $245K is available from

the 2015/16 CB under "Frame Subdivision Wastewater

Collection System Replacement and Wastewater Treatment

Facility Upgrade which is under budget $245,000 $0

27-Jul-16

5000 lb. Forklift Acquisition Mill Cove Project was not budgeted

for in 2016/17: Funding in the amount of $25,000 is available

from the Corporate Projects - Fleet Upgrade Program

Wastewater $25,000 $0

22-Jul-16

Bedford Hwy SW System Emergency Repair was not budgeted

for in the 2016/17 CB: Funding in the amount of $75K is

available from underspending in the 2015/16 CB under the

Lakeview Ave Twin Culvert Replacement Project which came in

under budget $75,000 $0

29-Jul-16

Hines Road Sewer Odour Issue: Funding in the amount of $25K

is available under 2016/17 CB and the reminder of $35,000 is

available from underspending in the Shore Drive Forcemain

Replacement & Twinning project: $60,000 $25,000

29-Jul-16 Wastewater Treatment facility security upgrades $200,000 $200,000

29-Jul-16

Hornes Road Bridge Wastewater Main Replacement project was

not budgeted for in 2016/17: Funding in the amount of $90K is

available from the Waterfront Drive WW System Replacement

project which will not proceed at this time $90,000 $0

Accumulative Total - July, 2016 $1,140,000

11-Aug-16

Inglis Street Sewer - Hydraulic Analysis - Funding in the amount

of $33,000 is available from the 2015/16 CB and there is $250K

in the 2016/17 CB in which we are only

using $19K at this time $250,000 $19,000

12-Aug-16 Emergency Pumping Station Pump Replacements $270,000 $250,000

12-Aug-16 Wastewater Pumping Station Upgrade Program - West Region $225,000 $210,000

HRWC


Approved

Amount

Net Additions

to Budget

Consultant/

Contractor

Construction

Tender

Price

Construction

Budget

Estimate

WASTEWATER



Date of Approval

12-Aug-16 Wastewater Pumping Station Upgrade Program - East Region $200,000 $200,000

12-Aug-16 Wastewater Pumping Station Upgrade Program - Central Region $65,000 $65,000

23-Aug-16 BLT WWTF Lighting Upgrade $35,000 $25,000

31-Aug-16 EPWWTF - Storage Shed $41,000 $41,000

31-Aug-16 HWWTF Pump Replacement Sludge Mixing Systems $140,000 $82,000

31-Aug-16

Hammonds Plains Road SW IP (2016) was not budgeted for in

the 2016/17 CB. Funding is available from underspending in the

following three approved projects:

Herring Cove Road Culvert: $85,000

Drainage Remediation Program: $25,000

and Sackville Cross Road Stormwater system: $85,000

$195,000 $0

31-Aug-16

Mill Cove Biogas CHP - Detailed design and Cost Analysis

Funding in the amount of $16K is available from underspending

in the HWWTF OCS VDF Project (SAP 6-1028) which came in

under budget $16,000 $0

Accumulative Total - August, 2016 $892,000

06-Sep-16 19-Sep-16 BFP - Front End Loader Replacement $253,000 $253,000

06-Sep-16 Wastewater Forcemains Condition Assessment $75,000 $75,000

06-Sep-16 East and Central Wastewater Infrastructure Plan $225,000 $125,000

08-Sep-16

HWWTF - Emergency Raw Water Pump VFD Replacement:

Funding in the amount of $125K is available from the 2016/17

CB Under "WWTF - Emergency Equipment Replacement $200,000 $125,000

12-Sep-16 5-Oct-16 Mill Cove WW Treatment Facility UV Upgrade $2,080,000 $2,080,000

12-Sep-16 WWTF Plant Optimization Program $175,000 $175,000

HRWC


Approved

Amount

Net Additions

to Budget

Consultant/

Contractor

Construction

Tender

Price

Construction

Budget

Estimate

WASTEWATER



Date of Approval

29-Sep-16 27-Oct-16

Northwest Arm Rehabilitation - Detailed Design

The project is funded from the CWWF, the total cost to HW is

estimated to be $187,500 (25% of eligible costs) (25% of

$550,000) plus 100% ineligible costs (100% of $50,000) $300,000 $300,000

Accumulative Total - September, 2016 $3,133,000

11-Oct-16 RWWP Projects MCs, MC3, WW Storage Project $245,000 $245,000

12-Oct-16

Bedford West CCC (Wastewater) Various Phases 2016/17

$6,600 from the $14,000 in Item 3.045 Bedford West CCC and

$11,200 from the $66,000 in Item 2.074 Bedford West CCC $11,200 $11,200

18-Oct-16

Mill Cove Secondary Flow Instrumentation Replacement Project

was not budgeted for in 2016/17. Funding in the amount of $45K

is available from underspending in the DWWTF Fine Screen

Upgrade project which came in under budget $45,000 $45,000

24-Oct-16

Harbour Solutions WWTF Fine Screen Upgrades projects

(Various location):

Dartmouth WWTF: $109,000

Halifax WWTF Screen Upgrade: $75,000

Herring Cove WWTF - Screen Upgrade: $65,000

Funding in the amount of $249,000 is available from

underspending in the Dartmouth WWTF Fine Screen Upgrade

Project $1,000,000 $249,000

Accumulative Total - October 2016 $550,200

09-Nov-16 2016/17 Wet Weather Management Program $100,000 $100,000

Accumulative Total - November 2016 $100,000

Total To Date: $31,424,200

ITEM 2-I

HRWC Board

November 24, 2016

HRWC


Approved

Amount

Net Additions

to Budget

Consultant/

Contractor

Construction

Tender

Price

Construction

Budget

Estimate

2016/17 Stormwater

Advanced Funding Integrated Projects

East

28-Jan-16 24-Mar-16 Murray Hill Drive W/M Renewal $28,000 $28,000 Dexter Construction $17,520 $21,292

Farquharson Street Water Main Renewal $19,000 $19,000 Dexter Construction $14,391 $13,036

Brompton Road $151,000 $151,000 Dexter Construction $35,835 $108,631

Everette Street Water Main Renewal $28,000 $28,000 Dexter Construction $5,319 $21,075

Alfred Street $11,000 $11,000

work to be undertaken

by HW Ops

Beckfoot Drive $9,000 $9,000 work not required

Strath Lane $122,000 $122,000

28-Jan-16 24-Mar-16 West

George Dauphinee Drive $34,000 $34,000 deferred to 2017

28-Jan-16 24-Mar-16 Central

Tillock Court $19,000 $19,000


by HW Ops

Doyle Street $75,000 $75,000 deferred to 2017

Baker Drive $52,000 $52,000 work not required

Second Avenue $70,000 $70,000


by HW Ops

Total Integrated Projects $618,000 $618,000

28-Jan-16 13-Apr-16 Manhole Renewals $29,000 $29,000

28-Jan-16 13-Apr-16 Catchbasin Renewals $29,000 $29,000

28-Jan-16 13-Apr-16 Lateral Replacements $87,000 $87,000

$145,000

Accumulative Total January, 2016 $763,000

STORMWATER

TOTAL CAPITAL BUDGET FOR STORMWATER $3,951,000


Date of Approval

HRWC


Approved

Amount

Net Additions

to Budget

Consultant/

Contractor

Construction

Tender

Price

Construction

Budget

Estimate

STORMWATER



Date of Approval

23-Feb-16 Wilson Drive & Highway 2 - Culvert Replacement $223,000 $223,000 Harbour Constru. $109,270 $167,400

25-Feb-16 6-Apr-16 Sackville Cross Road Stormwater System Renewal $1,090,000 $1,090,000 Dexter Construction $659,680.71 $970,902.66

25-Feb-16 6-Apr-16 Bedford Highway at Shaunslieve Drive Culvert Upgrade $407,000 $247,000 Brycon Construction $152,128 $336,141

25-Feb-16 21-Mar-16

Sullivan's Pond Storm Sewer System Replacement - Design

Funding in the amount of $100,000 is available from 2015/16 CB

under "Stormwater Pipes - Sullivan's Pond Storm Sewer

Replacement - Phase 1 and $300,000 is available from the 2016/17

CB Under "Stormwater Pipes Sullivan's Pond Storm Sewer

Replacement Phase 1. The total approved to date is $950,000 $400,000 $300,000 CBCL

Accumulative Total February, 2016 $1,860,000

7-Apr-16 25-Apr-16 2016/17 Driveway Culvert Program $450,000 $450,000

Accumulative Total April, 2016 $450,000

30-May-16

Yankeetown Road (near Civic 258) Culvert Replacement was not

budgeted for in 2016/17: Funding in the amount of $200,000 is

available from underspending in the 2015/16 CB under Cow Bay

Road Deep Storm Sewer project which came in under budget $200,000 $0 Harbour Construction

Accumulative Total for May, 2016 $0

6-Jun-16 Bank of Montreal Stormwater Lateral - 5151 George Street $90,000 $90,000

Accumulative Total for June, 2016 $90,000

HRWC


Approved

Amount

Net Additions

to Budget

Consultant/

Contractor

Construction

Tender

Price

Construction

Budget

Estimate

STORMWATER



Date of Approval

22-Jul-16

Bedford Hwy SW System Emergency Repair was not budgeted for in

the 2016/17 CB: Funding in the amount of $75K is available from

underspending in the 2015/16 CB under the Lakeview Ave Twin

Culvert Replacement Project which came in under budget $75,000 $0

22-Jul-16 Clement Street Berm - SW Control System $264,000 $264,000

29-Jul-16 Inverness Avenue Culvert Replacement Project $136,000 $136,000 Harbour Construction $83,496.24 $146,000.00

Accumulative Total for July, 2016 $400,000

23-Sep-16

Sycamore Lane Storm Sewer Replacement project was not budgeted

for in 2016/17 CB: Funding in the amount of $150,000 is available

from underspending in the Sackville Cross Road Stormwater System

Renewal project which came in under budget $150,000 $0

Accumulative Total for September 2016 $0

10-Nov-16

Ellenvale Run Retain Wall System project was not identified in the

2016/17 CB. Funding in the amount of $125,000 is available from

underspending in the Sackville Cross Road Stormwater System

Renewal Project which came in under budget $125,000 $0

Accumulative Total for November 2016 $0

Total to Date $3,563,000

ITEM 2-I

HRWC Board

November 24, 2016

HRWC


Approved

Amount

Net Additions

to Budget

Consultant/

Contractor

Construction

Tender

Price

Construction

Budget

Estimate

30-Jul-15 15-Oct-15

Computerized Management Maintenance System Phase 2

(Project was approved in October 15, 2015 by NSUARB) $1,500,000 $1,500,000

28-Jan-16 13-Apr-16 Desktop Computer Replacement Program $180,000 $180,000

28-Jan-16 13-Apr-16 Network Infrastructure Upgrades $200,000 $200,000

28-Jan-16 13-Apr-16 Survey Equipment - GPS Total Station $30,000 $30,000

28-Jan-16 13-Apr-16 Document Management Program $200,000 $200,000

28-Jan-16 13-Apr-16 SharePoint $200,00 $200,000

AMI/AMR Meter System Upgrades $3,300,000 $3,300,000

28-Jan-16 13-Apr-16 Fleet Upgrade Program Water $505,000 $505,000

28-Jan-16 13-Apr-16 Fleet Upgrade Program Wastewater $920,000 $920,000

28-Jan-16 13-Apr-16 Fleet Upgrade Program Stormwater $230,000 $230,000

Accumulative Total January, 2016 $7,265,000

28-Apr-16 12-Aug-16 GIS Hardware/Software Program 2015/16 $400,000 $0

31-May-16 CRM Interfaces $200,000 $200,000

Accumulative Total May, 2016 $200,000

CORPORATE PROJECTS

TOTAL CAPITAL BUDGET FOR CORPORATE PROJECTS $10,535,000


Date of Approval

ITEM 2-I

HRWC Board

November 24, 2016

HRWC


Approved

Amount

Net Additions

to Budget

Consultant/

Contractor

Construction

Tender

Price

Construction

Budget

Estimate

CORPORATE PROJECTS

TOTAL CAPITAL BUDGET FOR CORPORATE PROJECTS $10,535,000


Date of Approval

15-Jun-16 Customer Service Portal $220,000 $220,000

Accumulative Total June, 2016 $220,000

5-Jul-16

SCADA Control System Enhancements 2016/17 (cost are split 50/50 for

W/WW $200,000 $200,000

29-Jul-16 450 Cowie Hill Road External Lighting Project $25,000 $23,000

Accumulative Total July, 2016 $223,000

6-Sep-16 Asset Management Program Development $100,000 $100,000

6-Sep-16 Assess Asset Management Software - Part 2 $50,000 $50,000

23-Sep-16

Furniture & Building Improvements - Billing Services Project was not

budgeted for in the 2016/17 Capital Budget

Funding in the amount of $60,000 is available from underspending in the

2016/17 CB Under "Corporate Projects - IT Disaster Recovery Site"

which will not be proceeding this year $60,000 $60,000

Accumulative Total September, 2016 $210,000

21-Nov-16 GIS Data Program $1,000,000 $1,000,000

Accumulative Total November, 2016 $1,000,000

Total to date $9,118,000

Item 3-I17-Nov-16

FINANCIAL REPORT

Consolidated balance of the four operating accountsmaintained by the Commission as of: 17-Nov-i 6 $64,266,396

Rate of interest on the above balance - $64,266,395.86Investment Rate of Return 0.074%

ITEM # 4-I


Page 1 of 7


Commission Board SUBMITTED BY: Original Signed By:

Susheel Arora, M.A.Sc., P.Eng., Director, Wastewater & Stormwater Services

APPROVED: Original Signed By:

Carl Yates, M.A.Sc., P.Eng., General Manager DATE: November 14, 2016 SUBJECT: Wastewater Systems – Odour Management

INFORMATION REPORT

ORIGIN Operations staff in response to customer complaints and concerns experienced during summer, 2016 BACKGROUND Halifax Water owns and operates 15 Wastewater Treatment Facilities (WWTFs) and 172 Sewage Pump Stations (SPSs). These facilities range from very small packaged plants to large facilities with complex infrastructure. Similarly, there are small pump stations to very large pump stations. Most of these facilities, except for the small plants, are equipped with odour control systems that vary in design depending on the employed sewage treatment processes. The large pump stations are also equipped with carbon scrubbers. The Halifax Harbour Solutions facilities and Eastern Passage WWTF (EPWWTF) were designed with one of the most stringent odour control limits in the world; thus are equipped with industry leading equipment to address the stringent specifications. The scrubber system at the EPWWTF was designed and constructed to a performance specification of 6 parts per billion Hydrogen Sulphide (H2S) as measured at the stack exhaust in any five minute rolling average. The Harbour Solutions WWTFs were designed and constructed to performance standard of 4 parts per billion Total Reduced Sulphur (TRS) as measured at points of stack discharge over any 5 minute rolling

ITEM # 4-I HRWC Board

November 24, 2016

Page 2 of 7

average. To meet these stringent requirements multistage scrubber systems are used for air treatment in these facilities. Below is a summary of air scrubber treatment processes at the Harbour Solutions facilities. These facilities have three stage odour scrubbing equipment; an acid wash, base wash, and carbon system, as follows:

Chemical oxidation of organics by chlorine through the addition of sodium hypochlorite;

pH adjustment is performed by addition of caustic to improve oxidation in the second stage;

Residual organic scavenging is performed by a granular activated carbon (GAC) filter in the final stage.

Some of the other facilities have varying degree of odour control equipment but all of these have a final stage of carbon scrubbers. The following summarizes the treatment processes within the EPWWTF:

A front end bio-trickling filter consisting of porous media provides biological treatment of the building air;

A second stage biofilter consisting of gravel aggregate media provides secondary biological treatment;

Residual organic scavenging is performed by granular activated carbon (GAC) filter in the final stage.

Prior to treatment at any of Halifax Water WWTFs, sewage is conveyed though an extensive collection network. During collection, sewage often has to travel several kilometers before it reaches the WWTF which takes several hours. This travel time depletes the dissolved oxygen level creating septic conditions. The septic conditions promote H2S generation that can get released along the way. H2S provides for offensive odours when released to the atmosphere from the collections system or wastewater facility. Over the past summer there have been several complaints from several areas, more notably near the Eastern Passage, Dartmouth, and Mill Cove WWTFs. The other areas of concern have been in the collection system such as Hines Road in Dartmouth and Inglis Street in Halifax. The Hines Road sewer system is part of the Bissett Lake pump station sewershed; this area has reported odour problems for several years and efforts have been ongoing to mitigate the odours. It is noteworthy that all sewer systems that are subjected to high residence time of sewage have some level of odour.


November 24, 2016

Page 3 of 7

DISCUSSION Weather Impacts Before discussing the specific details of the various areas of concern, it is important to understand the impacts of weather phenomenon on odour potential in a community. The summer of 2016 was the driest and warmest experienced in HRM for decades. These warm and dry conditions contribute to septic conditions in sewer systems and plant processes in two ways. The warm sanitary sewer promotes increased biological growth rates that consume available oxygen leading to septic conditions that produce odorous sulfur compounds. Secondly, the low flow associated with dry conditions increases the hydraulic residence time (HRT) in the system which provides more time for the microbes to exert demand on dissolved oxygen. In tandem, these effects lead to dramatic increases in dissolved oxygen demand which leads to septic conditions. In addition to elevated sewer temperatures and increased HRT’s, low overnight temperatures associated with the intense high pressure system stationed off our region in September combined with calm winds to produce atmospheric inversions. The cooler nights were a mixed blessing, slightly reducing sewer temperatures but at the same time causing atmospheric inversions that hold air handling exhausts near the plant and at ground level. Despite extra efforts and due diligence, it is challenging to design and implement odour control systems for extreme events such as the weather pattern during the summer of 2016. Most sewer systems experience odour issues during extended droughts and the Halifax area is no exception. Notwithstanding these challenges, operations and engineering staff continue to address the identified point sources of odour as noted in the sections below.

Dartmouth Waste Water Treatment Facility (DWWTF) During the summer of 2016, staff received odour complaints from residents nearby the DWWTF. In response to these complaints, staff undertook multiple troubleshooting investigations and implemented many process changes. Below is a summary of efforts made to minimize odours at the facility:

In an effort to increase odour reducing chemicals in the wet scrubber system, staff installed a new chemical dosing pump on October 17, 2016. The new pump has a higher capacity and led to higher chlorine residuals in the recirculation fluid to mitigate odours;

Staff has also initiated a project to modify the fluid handling process for the side stream coming off the dewatering process which has high liquid phase sulfur concentrations. The changes will reduce the amount of hydrogen sulfide that is


November 24, 2016

Page 4 of 7

added to the building air and the scrubber system. This is scheduled to be complete by the end of November;

In addition to the unfavorable weather conditions, a diversion of sewer wastes from local haulers increased the septic loading to the Dartmouth WWTF from the middle of September to the middle of October. This timeframe coincided with the night time atmospheric inversions which compounded the issue. The septage volumes were reduced into this system in mid October;

A recent upgrade to the ducting system was performed to permit bypassing of the carbon scrubber system to facilitate maintenance. It was discovered that the isolation damper was not sealing as per the design; this was allowing untreated process air to bypass the wet scrubber system and be directly discharged. The bypass ducting isolation damper was sealed up around October 15, 2016 and this had a direct improvement on air quality;

It was also noticed on several occasions that the odour readings at the plant were below the specified limits of 25 ppb, however, the odour was generated from the contributory sewers; the manholes near the plant were treated with carbon inserts;

The sewage collection system was flushed on some streets in late August with jet trucks in the vicinity of locations that had potential for odour generation.

With the optimization efforts as described above, staff do not anticipate reoccurrence of the odour issues in the future. Staff will review Standard Operating Procedures and make the required modifications to ensure that the systems are performing at optimum levels before the onset of warmer temperatures.

Mill Cove Waste Water Treatment Facility (MCWWTF) The area around this treatment facility has seen tremendous growth in terms of condominiums and increased recreation at Dewolfe Park. During the summer months, offensive odours were mainly reported from residents living in the condominium buildings. The MCWWTF has 5 carbon scrubbers in various areas of the plant. There were several steps taken to mitigate the odours:

Introduction of Bioxide at Fish Hatchery WWPS located at the mouth of the Sackville River;

Carbon inserts were installed in the manholes at the intersection of Convoy Run and Waterfront Drive;

Increased monitoring at the fence line and in the adjacent neighborhood;

Increased sludge hauling frequency by additional 5 loads per week;

Covering the sludge trailer, and installed a scrubber on the trailer in July;


November 24, 2016

Page 5 of 7

Changed carbon in 4 carbon scrubbers: the headworks carbon scrubber media is scheduled for replacement in the Spring of 2017;

Sewer system flushing with jet trucks was conducted in the area;

Diversion of sewage waste from haulers dumping into a station at Memory Lane in Sackville to Aerotech WWTF beginning September 28, 2016.

Eastern Passage Waste Water Treatment Facility (EPWWTF) Staff received odour complaints from residents near the EPWWTF during the summer of 2016. Immediately staff investigated and undertook numerous actions to mitigate the issue. However, extenuating circumstances of ongoing warranty repairs to the EPWWTF compounded the challenges. The bio filter was not functioning as intended and the design build contractor performed the necessary repairs. In addition, at this particular location, odours also stem from the collection system and have been addressed through a formal study, as referenced further in this report. At the EPWWTF the following actions have been taken:

Staff are working with EPWWTF design-builder to have all warranty work completed in a timely manner;

Staff initiative a program of additional odour monitoring around the facility and neighbourhood;

Staff used chemical addition (bioxide) in the sludge holding tanks;

Modifications have been made to the ducting to improve ventilation near the distribution chamber of the headworks where the sewage enters the plant;

Passive carbon scrubbers have been installed on the sludge holding tank vents;

Ongoing optimization of odour control system operation.

Bissett Road Sewage Collection System A section of the Hines Road sewer was designed as a pressure sewer to eliminate the requirement of a pump station at the EPWWTF. The Bissett Road sewer system terminates at the Hines Road pressure sewer near CFB Shearwater. For an overview of the Bissett Lake sewershed, please see Figure 1, Bissett Road PS Sewer Collection System. As sewer travels in a gravity section it pulls air downstream due to friction between the liquid/air interface. When the gravity system transitions to a pressure system, the airspace is confined and positive pressure is generated. This positive pressure results in the release of air through any opening in the conveyance system. Due to the long hydraulic retention time of the Bissett Lake sewer system, septic conditions can persist in the warmer months. In recent years this has led to odour complaints from residents and trail users in this area.


November 24, 2016

Page 6 of 7

In response to those odour complaints, Halifax Water staff have taken considerable actions to reduce the odours:

Multiple manholes were sealed and granular activated carbon added to manholes to reduce the amount of odour causing sulphur compounds released;

Bioxide dosing was increased;

In locations where operations staff confirmed unpleasant odours, environmentally safe masking agents were installed to reduce odours;

Vivian Road is a small local sewer that connects to the lower reaches of Bissett Lake sewershed near Hines Road. The positive air pressure at this location caused migration of sewer gas into the local sewer. The Vivian Lane sewer system generated a number of odour complaints in 2015. In response Halifax Water installed a check valve device to isolate the head space of each sewer and eliminate sewer gas migration;

There are a number of air release valves (ARV) on the Bissett Road pump station forcemain. The function of an ARV is to release airspace in the forcemain to prevent air lock in the system. This airspace can release unpleasant odours when conveyed sewer is septic. Operations staff have added GAC to ARVs, manholes, and vent pipes to reduce the quantity of odourous sulphur compounds that is released. In addition to GAC treatment, operations staff have also changed the pump station logic to reduce pump cycling. This decreases the frequency at which the forcemain airspace is released.

Inglis Street Sewage Collection System This system exhibits similar characteristics as the Bissett Road system. For an overview of the Inglis Street sewer system, please see Figure 2, Inglis Street Sewer Collection System. The odour complaints from this area began soon after the commissioning of the Harbour Solutions infrastructure. Similar measures as described above for the Bissett Road collection system have been deployed in this sewershed with some success as complaints have dropped off significantly. The recent extended dry weather event brought some complaints but have dissipated with the recent rain activity.

Odour Control Investigation In recognition of increased odours over the summer of 2016, Halifax Water retained the services of CH2M Hill to provide expert opinion on the two areas of the collection system referenced above. This engagement has led to a draft report that outlines a phased approach to addressing odours in the lower reaches of the Bissett gravity main and the Inglis Street sewer system. The draft report is currently under review by Halifax Water staff with final delivery expected December 2016. The draft report has outlined a phased approach for each of the sewer systems. Phase I for each system is optimized delivery of


November 24, 2016

Page 7 of 7

nitrate salt (trade name Bioxide). This chemical addition is an inherently safe chemical to dose. When added to sewer systems, it reduces the sulphide generation potential of the sewer and associated odours. Pending the recommendations of the final report, Halifax Water intends to install optimized dosing systems for each respective sewer prior to the warm summer conditions of 2017. A number of options are being evaluated for phase II of the program. The options include the addition of granular activated carbon, biofilter, and wet scrubber systems for the Bissett gravity main. Options for the Inglis Street sewer include addition of a biofilter or connection of the sewer air space to the Pier A pumping station via an air jumper. Air from the sewer system would then be treated by the existing Pier A scrubber system. The options evaluation will determine if sufficient capacity exists in the existing scrubber to handle the extra load. The final report will provide concrete recommendations that will be implemented by 2018. If land acquisition is required, the estimated completion dates will be subject to this added process. FINANCIAL IMPLICATIONS: Funds have been allocated in the Capital Budgets of 2017-18 and 2018-19 for implementation of solutions for the Bissett Road and Inglis Street sewersheds. Funds have also been included in the operating budgets for future years for several operational activities such as enhanced monitoring, replacement of carbon scrubber media, and increase in Bioxide dosing at several locations. ATTACHMENTS 1. Map - Bissett Road PS Sewer Collection System 2. Map - Inglis Street Sewer Collection System

Report Prepared by: Original Signed By:

Susheel Arora, Director, Wastewater & Stormwater Services 902-490-6254

1:42,000

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COLBY DR

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REGAL RDLUCIEN DR

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DELTA DR

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GREEN BAY DR

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POPLAR DR

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BOUNDARY RD

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SCHOONER DR

SPENCE DR

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PLAZA DR

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Figure 1: Bissett Rd PS Sewer Collection System

Vivian Lane connector

Bioxide dosing location.

Drawn by: SDDate: November 16, 2016

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Figure 2: Inglis St Sewer Collection System

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ALMON ST

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INGLIS ST

NORTH ST

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TOWER RD

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BRUNSWICK ST

BEECH ST

HOLLIS ST

AGRICOLA ST

CROWN DR

CHEBUCTO RD

ISLEVILLE ST

MARGINAL RD

QUEEN ST

BARRINGTON ST

DUBLIN ST

COBURG RD

NOVALEA DR

HENRY ST

BAYERS RD

WINDSOR ST

CORK ST

SUMMIT ST

ALEX ST

COWIE HILL RD

SACKVILLE ST

MAYNARD ST

YOUNG ST

DINGLE RD

SOUTH PARK ST

DUFFUS ST

BROOK ST

RUFUS AVE

VERNON ST

LEEDS ST EDWARD ST

PROVO WALLIS ST

CHARLES ST

LONDON ST

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SCHOOL AVE

ALLAN ST

RUSSELL ST

HIGH ST

OAKLAND RD

MICMAC ST

BEAUFORT AVE

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MELROSE AVE

TA17 RD

MILSOM ST

SHORE RDPRESTON ST

WALNUT ST

PIERS AVE

PARK

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D

QUINN ST

LOWER WATER ST

UNION ST

SPRINGVALE AVE

OSBORNE S

T

NORWOOD ST

AFRICVILLE RD

FRANCKLYN ST

CUNARD ST

LYLE S

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TA13 RD

CIRCLE DR

JOYCE AVE

BILBY ST

MUMFORD RD

MORRIS ST

POPLAR ST

DOWNS AVE

STAIRS ST

MCLEAN ST

WALTER HAVILL DR

MASSACHUSETTS AVE

COLLEGE ST

ALDERNEY DR

DUKE ST

KAYE ST

BELL RD

ARGYLE ST

TITUS ST

FLINN ST

LARCH ST

FIRST ST

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AHERN AVE

PHILIP ST

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PERC

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SUMMER ST

VICTORIA RDMELWOOD AVE

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OLD SAMBRO RD

EDGEHILL RD

EVANS AVE

DUNDAS ST

WELLINGTON ST

GEORGE DAUPHINEE AVE

LAYTON RD

SPRY AVE

MELVILLE AVE

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BROMLEY RD

HIGHLAND AVE

THIRD ST

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GARDEN ST

CHISHOLM AVE

RUTHERFORD ST

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BELMONT RD

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FRASER ST

WALTON DR

MAY ST

ARMSHORE DR

BINNEY ST

HEINISH AVE FALKLAND ST

FIELDING AVE

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MELTON AVE

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PACIFIC ST

Point Pleasant Park

Northwest Arm

AST Sewershed Information:Sewer travel distance: ~ 8kmSewershed area: 2 HA# of services: 2,633

Bioxide dosing locationat the AST PS.

1:30,000¹

Drawn by: SDDate: November 16, 2016

#

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AST PS Sewershed

ITEM # 5-I

HRWC Board

November 24, 2016

Page 1 of 2


Commission Board SUBMITTED BY: Original Signed By:

Cathie O’Toole, MBA, CPA, CGA, Director, Corporate Services

APPROVED: Original Signed By: Carl Yates, M.A.Sc., P.Eng., General Manager

DATE: November 16, 2016

SUBJECT: Halifax Regional Water Commission Employees’ Pension Plan

3rd Quarter, 2016 – Financial Report

INFORMATION REPORT

ORIGIN Corporate Services staff

BACKGROUND As an initiative for 2016, the Halifax Regional Water Commission Employees’ Pension Plan (hereinafter called the “Plan”) administration has prepared a budget, and are proposing to report on a quarterly basis, the unaudited financial results of the Plan to the Board. Budgets have not been prepared in the past, nor has there been reporting of this nature regarding the Plan’s financial results, other than the Board approval of the annual, audited financial statements. The initial budget and financial report for the 2nd quarter of 2016 were presented to the Board, September 29, 2016 (Item #8-I).

DISCUSSION The attached Statement of changes in net assets available for benefits outlines the annual budget for the Plan and the financial performance of the Plan to the end of the 3rd quarter (January 1 to September 30, 2016). Favourable or unfavourable variances reported compare actual results to prorated budget amounts (75% = 9 months/ 12 months), which


November 24, 2016

Page 2 of 2

serves as a benchmark for the nine (9) month period in 2016. Results for 2015 and 2014 are shown for comparative purposes; however, Plan changes became effective January 1, 2016 affecting contributions. As shown on the Statement of changes in net assets available for benefits attached, net assets available for benefits has increased by $4.0 million over the nine (9) month period ending September 30, 2016. The budget for 2016 forecasted a decrease in net assets available of $0.5 million. Results for the period compared to the benchmark show a favourable variance in the amount of $4.3 million. Revenue for the period totaled $3.7 million, which compared to the benchmark, results in a favourable variance of $4.9 million. Revenue is most affected by the performance of the HRM Master Trust, and change tends to be more volatile compared to contributions and expenses of the Plan. The large variance is attributed directly to the increase in the fair value of the investment assets, which rebounded after a dismal 1st quarter. Gains in the fair value for the period amounted to $2.0 million, which consisted of $3.7 million in the 3rd quarter, compared to $1.6 million and ($3.2) million in the 2nd and 1st quarters respectively. Investment income for the period is performing above expectations, surpassing the benchmark by $0.2 million or 14%. Contributions are tracking as expected compared to budget, showing only a minimal variance compared to prorated budget amounts. Expenses of $3.8 million for the period are higher than the benchmark of $3.2 million, resulting in an unfavourable variance of $0.6 million or 18%. One of the main contributors to the unfavourable variance was death benefits paid in the 3rd quarter totaling $0.5 million which were not previously budgeted. The other contributor was termination benefits totaling $0.6 million, which are tracking $0.2 million or 54% higher than the benchmark. This is due to the retirement of several long serving members during the period. The higher costs associated with death and termination benefits are offset somewhat by favourable variances for benefit payments and actuarial/consulting fees. Expenditures in these areas however are expected to increase throughout the remainder of the year as more members retire, additional costs associated with work on required changes in the Plan text are incurred, and accrued expenditures are reimbursed by the trustee. ATTACHMENT Statement of changes in net assets available for benefits, for the nine (9) month period ended September 30, 2016.

Report Prepared by: Original Signed By Warren Brake on behalf of:

Allan Campbell, B.Comm, CPA, CMA Manager, Finance 902-490-4288

Item 5-IAttachment

HRWC BoardNovember 24, 2019Halifax Regional Water Commission Employees' Pension Plan

Statement of changes in net assets available for benefitsFor the nine (9) month period ended September 30, 2016Benchmark 75%

Prorated

Budget Actual ActualBudget Actual 75% $ % 2015 2014

Revenue1

Net investment income:

Total investment income $2,056,000 $1,758,309 1,542,000 216,309 14% $2,350,179 $2,297,149

Investment manager fees ($151,000) ($103,787) (113,250) 9,463 -8% ($188,555) ($175,227)

Increase (decrease) in the fair value of investment assets ($3,550,000) $2,053,093 (2,662,500) 4,715,593 -177% $7,313,583 $5,156,004

($1,645,000) $3,707,614 (1,233,750) 4,941,364 -401% $9,475,207 $7,277,926

Contributions2

Participants:

Current service (inc AVC's) $2,420,000 $1,812,641 1,815,000 (2,359) 0% $2,655,143 $2,768,168

Reciprocal transfers $0 $0 0 0 n/a $598,383 $0

Sponsors:

Current service (inc LTD) $2,207,000 $1,654,378 1,655,250 (872) 0% $2,741,953 $2,885,772

Unfunded liability $825,000 $618,750 618,750 0 0% $2,952,200 $2,952,200

$5,452,000 $4,085,768 4,089,000 (3,232) 0% $8,947,679 $8,606,140

Expenses3

Benefit payments:

Benefit payments $3,524,000 $2,626,919 2,643,000 16,081 1% $3,246,032 $3,020,172

Termination payments $550,000 $635,607 412,500 (223,107) -54% $1,021,997 $475,930

Death benefit payments $0 $509,236 0 (509,236) n/a $0 $9,188

Administrative:

Actuarial & consulting fees $170,000 $32,195 127,500 95,305 75% $134,296 $148,865

Audit & accounting fees $9,000 $0 6,750 6,750 100% $660 $8,584

Bank custodian fees $23,000 $13,244 17,250 4,006 23% $21,567 $21,423

Insurance $8,000 $0 6,000 6,000 100% $7,950 $7,950

Miscellaneous $13,000 $11,569 9,750 (1,819) -19% $11,641 $10,050

Professional fees $20,000 $10,027 15,000 4,973 33% $18,313 $13,542

Registration fees $2,000 $0 1,500 1,500 100% $2,074 $2,040

Training (Trustees/ Administration/ Pension Committee) $8,000 $0 6,000 6,000 100% $0 $0

$4,327,000 $3,838,797 3,245,250 (593,547) -18% $4,464,530 $3,717,744

Increase (decrease) in net assets available for benefits ($520,000) $3,954,585 (390,000) 4,344,585 -1114% $13,958,356 $12,166,322

Net assets available for benefits, beginning of period $100,434,444 $100,434,444 $86,476,088 $74,309,766

Increase (decrease) in net assets available for benefits ($520,000) $3,954,585 $13,958,356 $12,166,322

Net assets available for benefits, end of period $99,914,444 $104,389,029 $100,434,444 $86,476,088

Note:

1

2

3 Budgeted amounts for benefit payments are derived by using the actual amounts paid to pensioners for the seven (7) months of the year, then adding an estimated amount for the remainder of the year based on actual benefit payments paid July 1, 2016. All other expenses are based on best estimates.

For the purposes of this statement, expenses are reported on a cash basis.

2016

Variance F(U)

Budgeted amounts for revenue are derived by annualizing the amounts reported on the unitization reports for the five (5) month period ended May 31, 2016.

Budgeted amounts for contributions are derived by using the actual amounts remitted for the five (5) month period ended May 31, 2016, then adding forecasted amounts for the remainder of the year, as reported in the annual contribution planner filed with the trustee.

Actual contributions for the period have been adjusted to reflect contribution rate changes made in May, 2016, retroactive to January 1, 2016. Current contribution rates are 10.65% and 9.85% respectively for employees and the employer, which were reduced from 12.95% previously for each. This retroactivity also applied to the special payments made by the employer related to the unfunded liability, resulting in a reduction to $0.8 million per annum from $2,8 million.

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