Executive Summary This Committee was initiated by Lambton Shores - - PDF document

Executive Summary

This Committee was initiated by Lambton Shores’ Council on February 22, 2011 to review issues pertaining to the extension of wastewater services to the residents of Zones 3 and 4. Using the terms of reference in the ‘2006 Sanitary Sewage Servicing

Master Plan’, the Committee was to make recommendations to Council on the need

for a municipal sanitary sewer collection system and if need is established a preferred

• ption on how to best service these areas. Furthermore, the mandate was expanded to

allow a review of taxpayer issues and concerns relating to the proposed mechanical sewage treatment facility (STF) for the greater Grand Bend area. The Ad hoc Sewage Advisory Committee was appointed in May, 2011 and consisted of ten members: four members of Council and six citizens chosen from an applicant pool representing Zones 3 and 4. The Committee was divided into task teams with designated members and a leader who would research and report back on the following target areas: I – Review Need for Improved Sewage Treatment II – Cost/benefit Analysis of proposed STF and Collection Systems III – Future Options of Sewage Treatment IV – Taxation and User Fee Issues

V – Communication with Taxpayers

In 2006, Dillon Consulting produced a report, entitled ‘Grand Bend and Area Sanitary Servicing Master Plan’ (the Plan), which proposed a centralized wastewater treatment model to handle sewage from all shoreline areas of north Lambton Shores, Bluewater and South Huron from the Pinery to St. Joseph and along Highway 83 to Dashwood. The Plan anticipated the addition of about 3,000 residences requiring sewage services

• ver the next 20 years and proposed the construction of a new mechanical treatment

plant at the lagoon site which would handle a projected increase in daily flow capacity from the current 1,891 m3/day to 4,960 m3/day. The greater Grand Bend area has developed into two distinct regions: an urban village with cottages on small lots geared to seasonal use and rural subdivisions with all season homes on larger lots. Though both types of settings were developed with onsite septic systems, an urban style gravity sewer collection system was constructed in 1979 in Grand Bend to address concerns that septic system usage on small lots could have an adverse impact on groundwater. Thus the region was split into two approaches to wastewater management: a centralized model which serves the ‘urban’ village of Grand Bend, and a decentralized model that encompasses the ‘rural’ communities to the south of Grand Bend. For both models, future consideration will have to be based upon financial viability and ecological sustainability. 18

The current centralized sewage treatment facility (STF) consists of a four cell lagoon that accepts raw sewage from the village of Grand Bend, Grand Cove Estates and seasonal commercial enterprises located in South Huron. Recently, sewage from a low pressure collection system installed in the Pinery has been directed to the lagoon. Today, about half the capacity of the lagoon is being used, while a substantial portion of the rest has been allocated to future development, predominantly residential. With regards to Lambton Shores, the Plan called for the undertaking of three distinct projects to meet its objectives, each one requiring the completion of a separate Municipal Class Environmental Assessment (EA). Project 1 proposed the construction of a low pressure sewer pipeline along Goosemarsh Line to transport wastewater from the Pinery to the lagoon. This pipeline was completed in 2009. Project 1 also included the construction of a low pressure grinder pump collection system in the residential and commercial areas around the Pinery referred to as Zone 4. This work has yet to start. Project 2 called for the expansion and upgrade of the lagoon to a mechanical STF using an Orbal oxidation ditch design. The Plan estimated the cost of building the plant in 2006 to be about $12.4 million. Today, the cost has been verified by tenders to be about $26.9 million. With Federal and Provincial grants included, the capital cost for the 1,100 current sewer users, and an anticipated 3,500 additional users from future development, would be about $5,100 per household with an annual operating cost of about $305 per household. Although only 29% of Lambton Shores’ flow capacity is currently being used, about 69% of the remaining capacity has been committed to new development. Lambton Shores has approved lagoon sewage allocations for the following developments – some are fully operational while others are pending: Pinery Provincial Park (fully operating) Rice Developments (starting first phase) Southbend Estates (pending) Plus 8 others that are pending The total allocation currently approved for these developments is 874 m3/day with a long term range of 1,693 m3/day when all phases are completed. These developments would contribute about $5.05 million or 18.8% towards the cost of a full size plant costing $26.9 million (the preferred design). A mediated agreement between the Municipalities of Lambton Shores, Bluewater and South Huron for the proposed Grand Bend & Area STF as handed down in July 2010, distributed the costs of the proposed plant as follows: Lambton Shores = 48.4%, South Huron = 30.2% and Bluewater = 21.4%. As of Jan 31 2012, this mediated agreement ceased to exist with Bluewater invoking a (opt out/opt in) clause that allowed them up to ten years to decide whether or not they wished to participate in the project. At the same time, South Huron maintained a firm position of only contributing their share of the costs towards a half-size plant, something that was not part of the mediated agreement. 19

Should Lambton Shores wish to proceed with building the preferred, full sized plant, its share of the capital and ownership costs would be in excess of $21.5 million. Lambton Shores is currently paying on $21 million of debt incurred for infrastructure and facilities projects. About $18 million or 86% of this debt has a term of over 10 years for

• repayment. Municipalities cannot incur debt in excess of 25% of their net revenues.

This means that the principle and interest debt payments must not exceed 25% of the municipality’s revenues. Lambton Shores’ debt ceiling is $3.9 million annually. The Municipality currently has an annual debt repayment load of just over $2 million. On Jan 30, 2012, Lambton Shores Council resolved to search for more cost effective solutions to the proposed Orbal full size plant. It should be noted that, regardless of

• utcomes, South Huron and Lambton Shores are jointly responsible for operating the

current lagoon sewage treatment system located in South Huron. Project 3 involved the development of a sewer collection system for the neighborhoods between the Pinery and village of Grand Bend known as Zone 3. Although gravity systems are often the desired means for transporting waste to a treatment site, terrain and physical layout of the homes within Zone 3 create a challenge. As a result, the EA for Zone 3 recommended the use of a low pressure grinder pump collection system, much like the one approved for Zone 4. The Ad hoc Committee found that low pressure systems have serious ongoing electrical, mechanical and potential flow problems not experienced with gravity systems. Ontario municipal utilities managers, who have low pressure systems in their control, suggest that they only be used for ‘infilling’ of remote or difficult to service areas particularly where the house is lower than the main sewage system lines and it would be uneconomical to install lift stations. The grinder pumps are used to transport waste to a gravity system. On average, about 1 in 5 pumps are repaired, replaced or rebuilt each year. The potential cost of installing a sewer collection system to homeowners in Zones 3 and 4 was estimated by Dillon Consulting, in 2009, to be about $12,300/lot for a low pressure, grinder pump system and about $23,600/lot for a gravity system. However, the lesser figure for the low pressure system did not include road resurfacing. Cost estimates obtained from a similar study in Oakwood Park that included road resurfacing for both types of systems were between $23,000 and $27,000/lot. In addition, with installation of either type of sewer lines come monthly sewer fees. According to the BMA Management Consulting Municipal Study 2010, which considered the financial data of 83 of Ontario’s 444 municipalities, Lambton Shores ranked the second highest in residential water/wastewater charges. The municipality was the third highest in burden ranking of water/wastewater costs as a percentage of household income at 1.8% of household income. BMA considers this to be a high burden ranking, however, it should be noted that Lambton Shores has integrated lifecycle replacement costs for water and wastewater infrastructure in its rates, unlike other municipalities. 20

On site tertiary septic systems can vary in cost from about $8,000 to $15,000 depending

• n lot configurations and size requirements. Mandatory annual maintenance

agreements cost between $125 and $196 per year depending upon the type of system

• chosen. These systems can last beyond 30 years when properly maintained.

The reasons given for requiring municipal sewer service in Zone 3 are debatable. A number of Part II Order ‘bump-up’ requests were sent to the Ontario Ministry of the Environment (MOE) by ratepayers in Zone 3 concerned with the municipality’s handling

• f the EA process. Concerns varied in nature. Many questioned the need for a sewer

collection system for the area. Others expressed concern about the presumed cost of the venture while others challenged the wisdom of the project’s preferred collection technology i.e. the low pressure grinder pump. Zones 3 and 4 are home to a significant Carolinian oak savannah, of which there is less than 0.02% remaining in North America. Many requesters expressed concern that the Municipality (the proponent) did not practice due diligence during the EA process, that public debate had been stifled, the timing of public information sessions were conducted during months when a significant number of residents were away and that the preferred solution i.e. the low pressure grinder pump system, was not ‘green’ by environmental standards. ‘Bump-up’ requesters indicated to the MOE that data from the proponent was incomplete, inaccurate, confusing or contained misinformation. If a low pressure system is installed in any new Lambton Shores subdivision (e.g. Southbend), the municipality would have to service and maintain the grinder pumps. A sewer rate surcharge should be implemented for that subdivision that recognizes the added costs for that collection system. Gravity sewer users in the municipality should not have to bear the added expenses incurred by this network. The EA for the Zone 3 collection system was withdrawn by the proponent in Dec 2010 and currently is in moratorium status. The Zone 4 collection system EA has been plagued with communication problems. Many residents claim to have never been aware of the EA process taking place. As a consequence, in Feb 2011, Lambton Shores Council gave direction that the low pressure grinder pump methodology proposed in the Zone 4 EA be removed as the preferred method of sewage collection. To our knowledge, the proponent has yet to comply with this resolution and inform the MOE of Council’s directive in writing. To identify future options for sewage treatment, a task Team interviewed a number of sanitation service providers, the Lambton County building services manager (responsible for residential septic system approvals), the general manager of the University of Guelph’s Ontario Rural Wastewater Centre at Arkell, Ontario and public utilities managers of municipalities using the low pressure grinder pump sewer system. All the septic service contractors have been in the sanitation industry for more than 30

• years. They provided the following information concerning wastewater treatment in

Zones 3 & 4: 21

A properly designed, installed and maintained septic system can last 30 years or more. Homeowners should be educated on proper maintenance of their septic system. Septic tanks should be pumped out every 3 to 7 years depending upon usage. Properly maintained septic systems do not require additives except in cases where there are regular special diets and antibiotic use in the house. The manager of Building Services for Lambton County stated that the Ontario Building Code requirements for septic systems are enforced by the County. Replacement systems are installed on a regular basis throughout the County. The County is not aware of any septic system failures in Zones 3 and 4. Policy guidelines require that tertiary septic systems must be installed on lots less than 1 acre in size for either new houses or replacements and must have a maintenance agreement with an approved service provider in place. The key to sound, effective septic system operation is homeowner education and proper maintenance. The County is waiting for provincial direction and funding before it initiates a county wide re-inspection of septic systems. Current programs of visual inspection are of little value in our shoreline sandy region. Septic system failure is usually indicated by the presence of E. coli and elevated levels

• f phosphorus, ammonia and nitrate in groundwater. The fact that E. coli was found to

be absent and both phosphorus and ammonia levels were far below acceptable government guidelines suggests that there should be no alarming concern. However, noticeable amounts of nitrates observed in the groundwater should not be ignored, rather handled by effective and approved wastewater practices through mandated septic inspections, user education and replacement of faulty systems with tertiary systems that are accompanied by a maintenance contract. The Mission Statement for the University of Guelph’s Ontario Rural Wastewater Centre is: to promote environmentally sustainable development of rural and un-sewered areas through the effective use of wastewater treatment and dispersal technologies. Its mandate is to provide training, demonstration and applied research in the areas of: Residential on site wastewater treatment, including septic systems Small community wastewater management Nutrient and agri-food wastewater management The Centre’s general manager indicated that they would be very interested in forming a strategic partnership with Lambton Shores to address the challenges of wastewater management for Zones 3 and 4. Such a partnership could provide environmental stewardship and best practices to be shared with our municipal partners, Bluewater and South Huron, in the current Grand Bend and Area sewage collection project. In reviewing past communication practices between the municipality and its citizens it was the Committee’s view that information needed to be distributed in various forms 22

and delivered in a clear, concise manner. Lambton Shores currently communicates regularly with its citizens in the following ways: Notices on the municipal website Notices on electronic sign boards located at municipal offices in Grand Bend and Forest A weekly email notice board, ‘Living in Lambton Shores’, to subscribers Bi-annually by direct mail with an information sheet enclosed with property tax notices Information meetings with community ratepayers Associations ‘Town Hall’ type meetings with residents The municipality has communicated on occasion with its residents by: Direct mailings on specific topics Bulk mailings Public information Centers e.g. Environmental Assessment process Paid advertisements in local newspapers The north and western parts of Lambton Shores tend to have significant numbers of seasonal residents, much like any other Ontario municipality whose economy is impacted by lake related tourist and summer only activities. To keep seasonal residents informed it is suggested that the municipality inform all of its property owners of its free electronic information service, ‘Living in Lambton Shores’, and encourage people to stay informed by accessing the municipal website on a regular basis. The Municipality must be proactive in ensuring that its public is aware of pending decisions by Council that could impact lifestyle in a major way. The sewage collection proposals for Zones 3 and 4 is a prime example of the need to provide clear, concise and correct information to effectively communicate important project data to the very people being affected. The Committee recommends that Council consider adopting the following suggestions to improve its communication practices with the ratepayers in Zones 3 and 4: Website information – make the current North Sewers Ad Hoc Committee webpage a permanent feature on the municipal website to showcase all reports dealing with wastewater management issues for that area Ensure that information updates and all public meeting notices are included in ‘Living in Lambton Shores’ Implement a Zones 3 and 4 Newsletter, distributed to all residents of that area by way of bulk mailing, to update them on developments with regards to the sewer collection system proposal until Council comes to a permanent decision Arrange information meetings with neighborhood Association Boards of Directors and ask them to update their memberships Have Ward Councillors speak directly with neighborhood Association members at either annual or special meetings 23

Where neighborhoods have no formal Associations, Ward Councilors are encouraged to host regular ‘town hall’ type meetings to connect with their residents Council should develop a public survey, similar to the recent solid waste management one, to identify communication challenges or issues with its citizens Conclusions

• 1. The acceptable levels of phosphorous, ammonia and nitrates and the complete

lack of E. coli in the groundwater suggests septic system failures are not an issue.

• 2. The presence of elevated levels of nitrates is a consequence of conventional

septic systems not designed to facilitate the removal of this soluble ion from effluent.

• 3. Septic system replacement with a tertiary unit would cost between $8,000 and

$15,000 and have the capability of removing over half of the nitrates from effluent.

• 4. The project cost of a sewer collection system in Zone 3 was estimated at between

$24 and $48 million. With 1,142 lots in the Zone, there would be an up-front cost to each lot owner of $22,000 to $44,000.

• 5. Gravity collection systems are preferred over low pressure/grinder pump systems.

It is the finding of this Committee that there is no urgent need to provide municipal sewer services to Zones 3 and 4. Rather, the recommendations listed below are intended to assist Council with considering alternative actions that will address the environmental, financial and communication challenges associated with the intent of the 2006 Grand Bend and Area Sanitary Servicing Master Plan. Recommendations for Council Consideration:

• 1. Form a strategic partnership with the County to implement a meaningful, cost

effective septic system re-inspection program that identifies systems in need of repair or replacement.

• 2. Provide strong environmental stewardship for managing wastewater in Zones 3

and 4 by using ‘green’ solutions, welcoming citizen input and developing an interactive relationship with septic system users.

• 3. Forge a strong strategic partnership with organizations such as the University of

Guelph’s Ontario Rural Wastewater Centre to enlist their expertise in managing the wastewater challenges in Zones 3 and 4.

• 4. Devise communication strategies to inform and educate septic system users as to

proper use and maintenance of their systems.

• 5. Continue surface and groundwater testing in Zone 3 on an annual basis, as well

as a test site in Grand Bend serviced by sewers as a comparison, and publish the results.

• 6. Develop a long term plan for wastewater management in Zones 3 and 4, and if a

centralized sewage collection system becomes necessary, through irrefutable need, implement a gravity collection system. 24