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DOS Backgrounder for November 15_ 2010 Committee of the Whole meeting201122812105

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DOS Backgrounder for November 15_ 2010 Committee of the Whole meeting201122812105 Powered By Docstoc
					                           2205 Otter Point Road, Sooke, British Columbia, Canada V9Z 1J2
                                 Phone: (250) 642-1634            Fax: (250) 642-0541
                             email: sewerinfo@sooke.ca           website: www.sooke.ca

Backgrounder #3 – November 23, 2010
Sewer Franchise Agreement – Key Principles
KEY PRINCIPLES BEING CONSIDERED IN THE FRANCHISE AGREEMENT

Ownership
 • The District retains ownership of assets

Grant Funding
 • The District retains access to grant funding due to ownership of assets

Parcel Taxes/Development Cost Charges
 • The District will continue to set and collect parcel taxes, connection fees, DCCs, etc.
 • The District will monitor and determine impact of inflation on the utility and rates

Operations & Maintenance
 • EPCOR will continue to manage and be accountable for the day-to-day operations
 • EPCOR will continue to monitor and be accountable for effluent quality/quantity

Accountability
 • Performance targets will be established with financial penalties if targets are not met
 • Reporting of performance, financials, and capital plans will be completed annually
 • Formal & detailed financial review will be completed every three years, similar to a
   regulated utility model

System Upgrades or Expansions
 • The District controls when, where and if the system is upgraded or expanded to meet
   community goals
 • EPCOR will manage and fund all approved system upgrades or expansions
 • A long term capital plan has been established and will be updated regularly to ensure it
   meets community goals and growth over the project term. Projects will be completed
   only if there is a need for them.
 • EPCOR will attain approval from the District for all capital expenditures pertaining to the
   system
 • Funding is available to upgrade or expand the sewer system as the District determines
   is appropriate to meet community goals
 • Funding for capital enhancements is available when needed
 • EPCOR will provide a fixed financing rate for all capital projects undertaken during the
   term of the agreement
 • District determines debt repayment term
Target Returns
 • EPCOR will earn a return on the capital investment made over the term of the
   agreement. A target return will be established on the project to ensure that EPCOR
   doesn’t over- or under-earn.

Termination Provisions
 • The District may terminate the contract with 18 months notice after year five.

For further information:

Please visit our website at www.sooke.ca
Email your questions to sewerinfo@sooke.ca
Or telephone the District of Sooke at 250-642-1634




Backgrounder #3 Sewer Franchise Agreement - Key Principles – November 23, 2010      Page 2 of 2

				
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