Report to: General Committee                                                        Report Date: June 15, 2007

 

 

SUBJECT:                          Analysis of Water Supply Options for Rural Hamlets

PREPARED BY:               Robert Flindall      Ext 2445

                                            Waterworks, Manager of Operations & Maintenance

 

 

RECOMMENDATION:

THAT the report entitled “Analysis of Water Supply Options for Rural Hamlets” be received;

 

AND THAT the current petition for provision of municipal water service to the rural hamlet of Dickson Hill and Mill Race Court not be supported at this time;

 

AND THAT applications or petitions from property owners for provision of municipal water and sewer services outside of the current Urban Service Boundary be referred to the appropriate Town and Regional Departments for information, and for consideration in the context of a comprehensive Official Plan review if so directed by the respective Councils;

 

AND THAT staff from the Region of York be invited to provide a presentation to the General Committee with respect to the implementation of the Clean Water Act; the formation of the Source Protection Committee; the Terms of Reference for the Source Water Protection Plan in York Region; and further information related to protection of ground water resources and protection of private well systems;

 

AND FURTHER THAT Staff be authorized and directed to do all things necessary to give effect to this resolution.

 

 

EXECUTIVE SUMMARY:

Five possible options exist for the improvements to the water supply in the hamlets and for the future extension of municipal services.  These options are as follows:

 

·        Option #1 – Improvement of existing individual private wells by the owner;

·        Option #2 – Construction of small unregulated well systems, owned and operated by the benefiting property owners, serving five or fewer private residences;

·        Option #3 – Construction of private non-municipal year-round residential system, owned and operated by the benefiting property owners, serving six or more private residences;

·        Option #4 – Construction of a small  municipal residential system supplied by a well system owned and operated by the Region of York, and  with a distribution system owned and operated by the Town;

·        Option #5 – Extension of the existing York Durham Servicing System either from the Town of Markham drinking-water system or the drinking-water system from an adjacent municipality such as the Town of Whitchurch-Stouffville.

Preliminary estimates indicate that Option #1 is the simplest and most financially viable option available to the property owners for improving their water supply.  Options #2 and #3 require further analysis by the benefiting property owners with respect to the long term costs and ownership of the private systems. With the exception of Victoria Square, Options #4 and #5 will likely prove to be prohibitively expensive for many of the property owners in the hamlets due to the small number of benefiting property owners, large frontage lengths that increase the construction costs for watermains, and the long distances involved in the extension of existing municipal services. Options #3, #4 and #5 require approval from the Province, the Region of York and Town of Markham, and these decisions must be consistent with the relevant legislation, policies and plans.

 

The Provincial Greenbelt Plan, Provincial Growth Plan, and the Provincial Policy Statement under the Planning Act all articulate policies that will limit or influence the options and alternatives for improved supply of drinking water in the rural areas of the Town. Unless there is a public health issue, any request by property owners in these rural areas for the provision of municipal or private communal water supply or wastewater services will require further analysis to address the planning policies involved and should only be considered in the context of servicing studies undertaken in support of a comprehensive Official Plan review. At present, the provision of municipal water supply to the rural hamlets of Almira, Cedar Grove Dickson Hill, Locust Hill, and Victoria Square is not supported by the current Town of Markham Official Plan and is not provided for under the policies outlined in the Region of York Official Plan. 

 

For these reasons, staff recommend that applications or petitions from property owners for provision of municipal services to the hamlet of Dickson Hill and other hamlets outside of the current Urban Service Area, where there is no identified drinking water health hazard, not be supported at this time.

 

 

PURPOSE:

The following resolution was passed at the meeting of the General Committee on January 15, 2007:

 

“That the deputation of Mr. Terry Churchill requesting the Town to undertake an area improvement/feasibility study municipal water services in the Community of Dickson Hill and Mill Race Court be received and referred to staff of the Community and Fire Services Commission;

 

And that information relating to “community water systems” also be included in the staff report.”

 

The purpose of this report is to advise Council of the options for providing municipal water supply to the rural hamlets of Markham, including the options related to “community water systems”. The report considers the regulatory framework for ownership and operation of small water systems as set out in the Safe Drinking Water Act, Ontario Regulation 170/03, Ontario Regulation 252/05, and the Municipal Act, and the relevant Provincial Plans, Provincial Policy Statements, Regional Official Plan, and the Town of Markham Official Plan.

 

 

BACKGROUND:

A number of the rural hamlets and residential estate subdivisions that existed outside of the original villages of Markham, Thornhill and Unionville have slowly been absorbed into the urban fabric of the Town as development proceeded over the past decades.  Existing property owners in these areas have connected to municipal services through the local improvement process when it became financially viable for them to do so.  Since the full cost of connecting to the services is transferred back to the benefiting property owners, it is rarely financially practical to consider a local improvement until the hamlet is included in the Urban Service Area and development proceeds around the hamlet.

 

The Urban Service Area defined in the Town’s Official Plan and the Region’s Official Plan is defined by the York-Durham Sewage System and the provision of Great Lake based water supply from the City of Toronto and the Region of Peel.  See Attachment ‘A’ for the limits of the Urban Service Area as defined in Schedule ‘D’ of the Town’s Official Plan.

 

Notwithstanding that in recent years municipal services have been provided to property owners outside of the Urban Service Area designated in the Town’s Official, the Town must in the future ensure that municipal decisions and comments or advice are consistent with the Provincial Policy Statement issued under the Planning Act.  Similarly, municipal decisions must be consistent with the Greenbelt Plan and the Growth Plan for the Greater Golden Horseshoe. Several small rural hamlets presently exist well outside of the approved Urban Service Area, and urban development will not be occurring adjacent to these areas in the near future.  In addition, hamlets within or affected by the “Protected Countryside” designation in the Greenbelt Plan are Almira, Dickson Hill, Locust Hill and Cedar Grove.  These hamlets have further restrictions placed on them with respect to land use, development and municipal servicing.

 

Residents in these hamlets and residential estate subdivisions currently obtain their domestic water supply from private wells on their own property, or other means such as bulk water delivery. These wells require regular maintenance and may from time to time provide water of lower quality and lesser quantity than water that is supplied through the municipal drinking water system within the urban areas.  The rural areas also lack the fire protection typically provided by a municipal drinking water system in urban areas.  Domestic wastewater is treated in private septic systems or other private sewage works.

 

The Public Health Department of York Region is responsible for assessing health issues related to private wells. In the event that a public health issue arises with respect to the quality or quantity of water obtained from the private wells, the Ministry of the Environment will be informed by the Public Health Department. Where the Ministry of the Environment (MOE) is of the opinion that the major residential development requires servicing by a municipal drinking-water system in order to protect residents from a drinking-water health hazard, the Ministry can issue an order directing the municipality to provide service from a municipal drinking-water system or to oversee the establishment or alteration of one or more non-municipal drinking-water systems to serve those residents.  The Public Health Department has not reported the existence of a current public health problem in any of the hamlets related to private well water.  The Town and Region could investigate the protection of these wells from potential source water contamination through the source water protection studies that will be completed under the requirements of the Clean Water Act.

 

 

 

OPTIONS/ DISCUSSION:

 

Ownership and Regulation of Drinking-Water Systems

A discussion of the ownership and regulation of drinking-water systems is necessary to understand the provision of water and sanitary sewer services within York Region.  The construction and operation of any local municipal water supply and distribution of the water will be subject to Sections 11 and 89 of the Municipal Act.  These sections of the Municipal Act establish jurisdiction over water treatment and supply within upper and lower tier municipalities.  The Municipal Act assigns exclusive jurisdiction to the Regional Municipality of York for the treatment and supply of water to the lower tier municipalities.  Since the establishment of a local municipal water system would require a treated water supply, only York Region has the authority to construct the necessary wells and treatment facilities.  Approval of York Region Council would be required before proceeding with supply alternatives that require the construction of new wells or treatment facilities.  The Region would be required to obtain the appropriate permits and approvals from the Ministry of the Environment under the Safe Drinking Water Act before proceeding.  The Town has the authority only to construct and operate distribution watermains and sell water to the residents. The Town would also need to obtain approvals from MOE under the Safe Drinking Water Act to construct, alter or extend the current distribution system,  

 

Five options exist for the provision of domestic water supply to property owners in the rural hamlets.  The options are discussed in the following sections including a brief description of each type of system, a listing of policies that apply, and the major approval process.

 

 

Option #1 – Improved Private Wells

The first alternative that owners may consider is to improve their own private wells at their own expense.  Improved wells such as drilled wells in place of existing dug wells may be the least expensive means of resolving water quality and quantity concerns for the residents. This option requires no further approval from the Region, the Town or from adjacent land owners.  A well permit from the Province is the only approval required.

 

Process and Considerations:

·        Owner obtains well permit from Ministry of Environment;

·        A plumbing permit may be required from the Town of Markham for plumbing improvements.

 

Option #2 – Owners Construct an Unregulated Well and Distribution System

A group of property owners could construct and operate a private well and distribution system as an unregulated system if fewer that 6 residential properties are connected.  These systems become regulated only when they serve an “open public facility” such as a restaurant, hotel, place of worship, recreation camp, or any place where the general public has access to a washroom, drinking water fountain or shower; or where they serve a “designated facility” such as a health care facility, school, or children’s camp.

 

Construction of a private shared well and distribution system by a group of property owners in a rural hamlet must consider the following:

 

Process and Considerations:

·        Five or fewer owners agree to participate;

·        Owners agree on the cost recovery mechanism for capital cost of the construction;

·        Owners agree on the cost recovery mechanism for the operation & maintenance costs;

·        Location and ownership of the system are agreed to by the owners;

·        Determination of what, if any, easements are required over private property and obtain Planning Act consent, if required, to the conveyance of the easements;

·        Identification of “Open Public Facilities” that would cause this system to become a regulated system;

·        Owners retain a Licenced Well Contractor, and Well Permit from Ministry of Environment;

·        Owners obtain municipal permission for occupancy of public highway if any portion of the work is located in a road allowance;

·        Owners obtain Building Permit;

·        Owners construct well and distribution system;

·        Benefiting land owners connect to the private distribution system at the property line. A Building Permit (Plumbing) is required, and each owner pays the additional construction costs on their own private property.

 

Option #3 – Owners Construct a Regulated, Private Well and Distribution System

A third alternative that could be considered is for the benefiting owners to construct a local non-municipal (private) well and water distribution system. These local systems are regulated by the Province if six or more private residences are connected.  These types of systems are classified as “non-municipal year-round residential systems” and are a regulated class of system under the Safe Drinking Water Act. These systems could be operated by the property owners themselves or through a contracted service that employs MOE Certified Water Operators.  The operational and water quality testing requirements of this type of private system are very similar to that of municipal systems, with the only significant difference being the ownership of the system.  All of the requirements of Regulation 170/03 as they relate to treatment, supply and water quality testing would apply.

 

As noted previously, municipal decisions and comments or advice must be consistent with the Provincial Policy Statement.  Construction of a local water supply system in the rural hamlets must consider the following:

 

Process and Considerations:

·        Six or more owners agree to become part owners, and develop legal agreement for ownership;

·        Property is acquired or designated for the well site;

·        Owners agree on the cost recovery mechanism for capital cost of the construction;

·        Owners agree on the cost recovery mechanism for the operation & maintenance costs; Owners obtain written consent from the Region of York and the Town of Markham prior to any construction;

·        Owner obtains well permit from Ministry of Environment;

·        MOE Permit to Take Water may be required depending on design flow rates;

·        Owners obtain a Certificate of Approval from the Ministry of the Environment for the construction of the drinking-water system;

·        Requires MOE Certified Operators to operate, Owners obtain contracted services for operation of the System, or the owners become licenced operators themselves through the Provincial licensing and certification program;

·        Owners obtain municipal permission for occupancy of public highway if any portion of the work is located in a road allowance;

·        Owners obtain Building Permit;

·        Owners construct well and distribution system;

·        Benefiting land owners connect to the private distribution system at the property line. A Building Permit (Plumbing) is required, and each owner pays the additional construction costs on their own private property.

 

The MOE has in the past issued Minister’s Orders under Section 114 of the Safe Drinking Water Act requiring municipalities to assume the ownership and operation of these non-municipal year-round residential systems.  For example, in 2002 the Region of York and the Township of King were ordered to assume ownership of the Ansnorveldt private water system and to provide costly upgrades to the system when the private owners group was unable to meet the requirements of the regulations.  For this reason Section 53 of the Safe Drinking Water Act requires the owners and constructors of non-municipal drinking water systems servicing major residential developments to obtain written consent of the municipality in order to construct the system.  The municipality may impose conditions, including the provision of financial securities, in order to prevent and correct future deficiencies in the non-municipal system or abandonment of the system by the owners.  Consent would be required from the Region of York for the well and treatment system, and from the Town of Markham for the distribution system.

 

In Option #3, fire protection would most likely not be provided by the supply from a local private well system since the available quantity of ground water may not be sufficient.  This issue can only be resolved with appropriate geotechnical investigations and design. Expected response time by the Fire Department would remain the same as it is currently.

 

 

Option #4 Construct Local Municipal Well-Based Water Supply

A fourth Option that could be considered is to provide a local municipal drinking-water system through the construction of a municipal well, treatment system, and distribution watermains.  These local systems would be classified as “small municipal residential systems” provided that at least six residences were connected within a residential development. These systems would be constructed as a local improvement project, with all costs recovered by the Town from the benefiting land owners.

 

The provision of a properly designed and constructed municipal well can improve many of the aesthetic qualities of water for the residents.  Many of the older private wells may be dug-wells and taste, odour and hardness problems may exist for the users.  These aesthetic problems could be reduced with a drilled well and enhanced treatment of the water.  The well and treatment facilities would be operated by Licenced Operators from the Region of York, and the distribution system would be operated and maintained by Town of Markham Licenced Water Operators.

 

Construction of a local water supply system in the rural hamlets must consider the following:

 

Process and Considerations:

·        Community demonstrates sufficient level of acceptance for the project and its financial implications, likely by petition. York Region Council agrees to construct the well system, conditional upon recovering the cost from the benefiting community.  The construction of any municipal well and treatment system falls within the jurisdiction of Region of York as defined in Sections 11 and 89 of the Municipal Act;

·        Markham Council agrees to construct the distribution system of watermains and services to the property line at the cost of the community;

·        Amendment to the Region of York Official Plan to allow the provision of municipal water services outside the Urban Service Area;

·        Amendment to the Town of Markham Official Plan, to conform with the Regional Official Plan, and to permit municipal servicing;

·        Environmental Assessment approvals – Class C Municipal Environmental Assessment required for a new municipal water supply;

·        Design of the system including well, treatment processes, pumping, and distribution system;

·        Decision on the requirements for provision of water for domestic supply or to include provision of sufficient quantity for fire suppression;

·        Property is acquired through purchase or expropriation by the Region of York for the well and treatment facilities;

·        MOE Permit to Take Water is required;

·        MOE Certificate of Approval for construction of the well, treatment system and distribution watermains;

·        Cost recovery agreement implemented between the Town and Region of York to recover the cost of construction of wells and treatment system;

·        Tendering and construction of drinking-water system by the Town and the Region of York;

·        Municipal By-Law enacted to recover capital costs from benefiting land owners;

·        Benefiting land owners connect to the municipal service at the property line. A Building Permit (Plumbing) is required, and each owner pays the additional construction costs on their own private property.

 

 

At present the Region of York Official Plan does not permit the extension of municipal services into the areas outside of the York-Durham Servicing Scheme area, or the towns and villages with existing services, without an amendment to the Region of York Official Plan. 

 

Capital costs for the construction of a local municipal water supply include the cost to construct a well and treatment facility, and the cost to construct the local water distribution system.  Cost for the well and treatment system are difficult to estimate until such time as a detailed hydrogeological investigation is completed. Preliminary cost estimates indicate that Option #4 would be prohibitively expensive to construct for a small number of benefiting land owners. Construction of a new municipal water supply also automatically requires Class C Municipal Environmental Assessment approval before construction can begin.  In addition, a Permit to Take Water, and a Certificate of Approval are required from the Ministry of the Environment.

 

In Option #4, fire protection would most likely not be provided by the supply from a local well since the available quantity of ground water may not be sufficient.  This issue can only be resolved with appropriate hydrogeological investigations.  If it was determined that it was appropriate to provide sufficient quantities for fire suppression and the supply was available, additional costs would likely be involved. Expected response time by the Fire Department would remain the same as it is currently.

 

 

Option #5 – Extend Existing Municipal Watermains

The existing water distribution system in Markham is a Large Municipal Residential System.  Any extension of this existing system to the rural hamlets would be owned and operated by the Town under our existing procedures.

 

For the Hamlet of Dickson Hill, the closest municipal water system is in the adjacent Town of Whitchurch-Stouffville.  The Whitchurch-Stouffville system could also be extended into Dickson Hill.  In accordance with provincial policy, the least cost alternative should be examined. 

 

Extension of the existing system to the rural hamlets must consider the following:

·        Community demonstrates sufficient level of acceptance for the project and its financial implications, likely by petition.

·        Markham Council agrees to construct the extension of the distribution system;

·        If water service is provided from a adjacent municipality (Whitchurch-Stouffville), Council of the adjacent municipality agrees to the construction, and cost recovery agreements are implemented between the municipalities;

·        Amendment to the Region of York Official Plan to allow the provision of municipal water services outside the Urban Service Area;

·        Amendment to the Town of Markham Official Plan, to conform with the Regional Official Plan;

·        Environmental Assessment approvals – Class C  Municipal Environmental Assessment required for an extension of the municipal water supply;

·        Decision on the requirements for provision of water for domestic supply or to include provision of sufficient quantity for fire suppression

·        Design of the system including pumping, and distribution system;

·        MOE Certificate of Approval for construction;

·        Tendering and construction of drinking-water system by the Town;

·        Municipal By-Law enacted to recover capital costs from benefiting land owners;

·        Benefiting land owners connect to the municipal service at the property line. A Building Permit (Plumbing) is required, and each owner pays the additional construction costs on their own private property.

 

In Option #5, sufficient water quantities for fire protection could be provided.  If it was determined that it was appropriate and beneficial to provide sufficient quantities for fire suppression and the supply was available, additional costs would likely be involved. Expected response time by the Fire Department would remain the same as it is currently.

 

Conformity with Provincial Planning Policy

 

Each of Options 3, 4 and 5 require consideration of the following policies by the Town, in determining whether to proceed:

 

·        The Provincial Policy Statement only permits partial services (i.e. a combination of municipal water services or private communal water services and individual on-site sewage services) where they are necessary to address failed individual on-site water services in existing developments (hamlets).  Identification of failed systems would be required;

·        For hamlets within the “Protected Countryside” areas identified in the  Greenbelt Plan partial services are only permitted where they are necessary to address failed individual on-site sewage services and individual on-site water services in existing developments (hamlets);

·        York Region Public Health Department identifies failed on-site water services. At present the York Region Public Health Department has not reported any current public health concern related to drinking water from private wells in Markham;

·        The Growth Plan states that construction of new, or expansion of existing municipal or private communal water and wastewater systems should only be considered where (among other things) plans for expansion or for new services are to serve growth in a manner that supports achievement of the intensification target and density targets for the Town;

 

Official Plan Conformity

Regardless of the decisions made with respect to provision of municipal water services to the rural hamlets, the Town of Markham and the Region of York have to amend their Official Plans in order to conform with the Growth Plan for the Greater Golden Horseshoe.  This requirement is set out in Section 12 (1) of the Places to Grow Act.  The deadline to amend the Markham and Region of York Official Plans is June 16, 2009 as set out in Section 12 (2) of the Places to Grow Act.  The planning studies necessary to amend the Town and Regional Official Plans should incorporate a more detailed analysis of the policies and decisions related to provision of municipal services outside of the current Urban Service Area.

 

 

FINANCIAL CONSIDERATIONS:

This report does not recommend any expenditure by the Town.

 

1. Purpose                     2. Background                      3. Discussion                        4. Financial        

 

5. Others (Environmental, Accessibility, Engage 21st, Affected Units)             6. Attachment(s)

 

ENVIRONMENTAL CONSIDERATIONS:

Numerous environmental considerations have been mentioned in this report and are addressed by the Town’s Official Plan, the Regional Official Plan, Provincial Greenbelt Plan, Provincial Growth Plan for the Greater Golden Horseshoe, Oak Ridges Moraine Conservation Plan, Rouge North Management Plan and the Provincial Policy Statement.

 

An emerging and related issue is that under the Clean Water Act, municipalities have the option of identifying an area of private wells for inclusion in source protection studies to assess vulnerability and the potential for contamination from surrounding activities, such as septic systems or livestock operations.  Protection of existing wells with respect to quality and quantity could be addressed through this process.  At present the regulations under the Clean Water Act are still in draft form.  The Region of York will likely be represented on the Source Protection Committee that will be formed in compliance with the proposed regulations.  The Source Protection Committee is responsible for developing the terms of reference, assessment report and source protection plan. Under the proposed regulations it appears that by means of a resolution passed by York Region Council, private well systems within designated settlement areas or private wells in clusters of six of more wells can be included in the source protection plan.

 

More information on the Clean Water Act and the planned activities of Source Protection Committee is required since protection of the existing wells in the rural area is extremely important to residents in the rural areas.  For this reason, staff from the Region of York should be invited to provide a presentation to the General Committee with respect to the implementation of Clean Water Act, formation of the Source Protection Committee, and the Terms of Reference for the Source Water Protection Plan in York Region.

 

 

CONCLUSION

Preliminary estimates indicate that Option #1 is the simplest and most financially viable option available to the property owners for improving their water supply.  Options #2 and #3 require further analysis by the benefiting property owners with respect to the long term costs and ownership of the private systems. With the exception of Victoria Square, Options #4 and #5 will likely prove to be prohibitively expensive for many of the property owners in the hamlets due to the small number of benefiting property owners, large frontage lengths that increase the construction costs for watermains, and the long distances involved in the extension of existing municipal services. Options #3, #4 and #5 require approval from the Province, the Region of York and Town of Markham, and these decisions must be consistent with the relevant legislation, policies and plans.

 

The Provincial Greenbelt Plan, Provincial Growth Plan, and the Provincial Policy Statement under the Planning Act all articulate policies that will limit or influence the options and alternatives for improved supply of drinking water in the rural areas of the Town. Unless there is a public health issue, any request by property owners in these rural areas for the provision of municipal or private communal water supply or wastewater services will require further analysis to address the planning policies involved and should only be considered in the context of servicing studies undertaken in support of a comprehensive Official Plan review.  At present, the provision of municipal water supply to the rural hamlets of Almira, Cedar Grove Dickson Hill, Locust Hill, and Victoria Square is not supported by the current Town of Markham Official Plan and is not provided for under the policies outlined in the Region of York Official Plan. 

 

For these reasons staff, recommend that applications or petitions from property owners for provision of municipal services to the hamlet of Dickson Hill and other hamlets outside of the current Urban Service Area, where there is no identified drinking water health hazard, not be supported at this time.

 

 

BUSINESS UNITS CONSULTED AND AFFECTED:

The following Business Units were consulted and will be affected by this report:

·        Development Services – Planning and Urban Design Department

·        Development Services – Engineering Department

·        Asset Management Department

·        Legal Services

 

 

RECOMMENDED

 

                            BY:    ________________________          ________________________

                                      Steve Andrews                                   Peter Loukes   

                                      Director, Asset Management               Director of Operations 

 

 

                                      ________________________

                                      Acting Commissioner,

                                      Community and Fire Services

 

ATTACHMENTS:

Attachment ‘A’ – Markham Official Plan, Schedule ‘D’ – Urban Service Area

 

Q:\Commission Share\Operations and Asset Management\Reports\2007\Waterworks\Analysis of Rural Water Supply Options (final).doc