Confluence of Lake Huron and the St. Clair River

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1 Ministry of the Environment and Climate Change Ministère de l Environnement et de l Action en matière de changement climatique PERMIT TO TAKE WATER Surface Water NUMBER 3560-APLNRJ Pursuant to Section 34.1 of the Ontario Water Resources Act, R.S.O this Permit To Take Water is hereby issued to: Lambton Area Water Supply System Joint Board of Management 1215 Fort St Sarnia, Ontario, N7V 1M1 Canada For the water taking from: Located at: Confluence of Lake Huron and the St. Clair River 1215 Fort St Sarnia, County of Lambton For the purposes of this Permit, and the terms and conditions specified below, the following definitions apply: DEFINITIONS (a) (b) (c) (d) (e) (f) (g) "Director" means any person appointed in writing as a Director pursuant to section 5 of the OWRA for the purposes of section 34.1, OWRA. Provincial Officer means any person designated in writing by the Minister as a Provincial Officer pursuant to section 5 of the OWRA. "Ministry" means Ontario Ministry of the Environment and Climate Change. "District Office" means the Sarnia District Office. "Permit" means this Permit to Take Water No APLNRJ including its Schedules, if any, issued in accordance with Section 34.1 of the OWRA. "Permit Holder" means Lambton Area Water Supply System Joint Board of Management. "OWRA " means the Ontario Water Resources Act, R.S.O. 1990, c. O. 40, as amended. Page 1 - NUMBER 3560-APLNRJ

2 You are hereby notified that this Permit is issued subject to the terms and conditions outlined below: TERMS AND CONDITIONS 1. Compliance with Permit 1.1 Except where modified by this Permit, the water taking shall be in accordance with the application for this Permit To Take Water, dated May 26, 2017 and signed by Susan MacFarlane, and all Schedules included in this Permit. 1.2 The Permit Holder shall ensure that any person authorized by the Permit Holder to take water under this Permit is provided with a copy of this Permit and shall take all reasonable measures to ensure that any such person complies with the conditions of this Permit. 1.3 Any person authorized by the Permit Holder to take water under this Permit shall comply with the conditions of this Permit. 1.4 This Permit is not transferable to another person. 1.5 This Permit provides the Permit Holder with permission to take water in accordance with the conditions of this Permit, up to the date of the expiry of this Permit. This Permit does not constitute a legal right, vested or otherwise, to a water allocation, and the issuance of this Permit does not guarantee that, upon its expiry, it will be renewed. 1.6 The Permit Holder shall keep this Permit available at all times at or near the site of the taking, and shall produce this Permit immediately for inspection by a Provincial Officer upon his or her request. 1.7 The Permit Holder shall report any changes of address to the Director within thirty days of any such change. The Permit Holder shall report any change of ownership of the property for which this Permit is issued within thirty days of any such change. A change in ownership in the property shall cause this Permit to be cancelled. 2. General Conditions and Interpretation 2.1 Inspections The Permit Holder must forthwith, upon presentation of credentials, permit a Provincial Officer to carry out any and all inspections authorized by the OWRA, the Environmental Protection Act, R.S.O. 1990, the Pesticides Act, R.S.O. 1990, or the Safe Drinking Water Act, S. O Other Approvals The issuance of, and compliance with this Permit, does not: (a) relieve the Permit Holder or any other person from any obligation to comply with any other applicable legal requirements, including the provisions of the Ontario Water Resources Act, and Page 2 - NUMBER 3560-APLNRJ

3 the Environmental Protection Act, and any regulations made thereunder; or (b) limit in any way any authority of the Ministry, a Director, or a Provincial Officer, including the authority to require certain steps be taken or to require the Permit Holder to furnish any further information related to this Permit. 2.3 Information The receipt of any information by the Ministry, the failure of the Ministry to take any action or require any person to take any action in relation to the information, or the failure of a Provincial Officer to prosecute any person in relation to the information, shall not be construed as: (a) an approval, waiver or justification by the Ministry of any act or omission of any person that contravenes this Permit or other legal requirement; or (b) acceptance by the Ministry of the information's completeness or accuracy. 2.4 Rights of Action The issuance of, and compliance with this Permit shall not be construed as precluding or limiting any legal claims or rights of action that any person, including the Crown in right of Ontario or any agency thereof, has or may have against the Permit Holder, its officers, employees, agents, and contractors. 2.5 Severability The requirements of this Permit are severable. If any requirements of this Permit, or the application of any requirements of this Permit to any circumstance, is held invalid or unenforceable, the application of such requirements to other circumstances and the remainder of this Permit shall not be affected thereby. 2.6 Conflicts Where there is a conflict between a provision of any submitted document referred to in this Permit, including its Schedules, and the conditions of this Permit, the conditions in this Permit shall take precedence. 3. Water Takings Authorized by This Permit 3.1 Expiry This Permit expires on August 31, No water shall be taken under authority of this Permit after the expiry date. 3.2 Amounts of Taking Permitted The Permit Holder shall only take water from the source, during the periods and at the rates and amounts of taking specified in Table A. Water takings are authorized only for the purposes specified in Table A. Page 3 - NUMBER 3560-APLNRJ

4 Table A Source Name / Description: 1 Confluence of Lake Huron and St. Clair River Source: Type: Taking Specific Purpose: Taking Major Category: Max. Taken per Minute (litres): Max. Num. of Hrs Taken per Day: Max. Taken per Day (litres): Max. Num. of Days Taken per Year: Zone/ Easting/ Northing: Lake Municipal Water Supply 126, ,000, Total Taking: 182,000, Monitoring 4.1 The Permit Holder shall maintain a record of all water takings. This record shall include the dates and times of water takings, and the total measured amounts of water pumped per day for each day that water is taken under the authorization of this Permit. A separate record shall be maintained for each source. The Permit Holder shall keep all required records up to date and available at or near the site of the taking and shall produce the records immediately for inspection by a Provincial Officer upon his or her request. The total amounts of water pumped shall be measured using a flow measuring devise. 5. Impacts of the Water Taking 5.1 Notification The Permit Holder shall immediately notify the local District Office of any complaint arising from the taking of water authorized under this Permit and shall report any action which has been taken or is proposed with regard to such complaint. The Permit Holder shall immediately notify the local District Office if the taking of water is observed to have any significant impact on the surrounding waters. After hours, calls shall be directed to the Ministry's Spills Action Centre at For Surface-Water Takings The taking of water (including the taking of water into storage and the subsequent or simultaneous withdrawal from storage) shall be carried out in such a manner that streamflow is not stopped and is not reduced to a rate that will cause interference with downstream uses of water or with the natural functions of the stream. 6. Director May Amend Permit The Director may amend this Permit by letter requiring the Permit Holder to suspend or reduce the taking to an amount or threshold specified by the Director in the letter. The suspension or Page 4 - NUMBER 3560-APLNRJ

5 reduction in taking shall be effective immediately and may be revoked at any time upon notification by the Director. This condition does not affect your right to appeal the suspension or reduction in taking to the Environmental Review Tribunal under the Ontario Water Resources Act, Section 100 (4). The reasons for the imposition of these terms and conditions are as follows: 1. Condition 1 is included to ensure that the conditions in this Permit are complied with and can be enforced. 2. Condition 2 is included to clarify the legal interpretation of aspects of this Permit. 3. Conditions 3 through 6 are included to protect the quality of the natural environment so as to safeguard the ecosystem and human health and foster efficient use and conservation of waters. These conditions allow for the beneficial use of waters while ensuring the fair sharing, conservation and sustainable use of the waters of Ontario. The conditions also specify the water takings that are authorized by this Permit and the scope of this Permit. Page 5 - NUMBER 3560-APLNRJ

6 In accordance with Section 100 of the Ontario Water Resources Act, R.S.O. 1990, you may by written Notice served upon me and the Environmental Review Tribunal within 15 days after receipt of this Notice, require a hearing by the Tribunal. Section 101 of the Ontario Water Resources Act, R.S.O. 1990, as amended, provides that the Notice requiring the hearing shall state: The portions of the Permit or each term or condition in the Permit in respect of which the hearing is required, and; The grounds on which you intend to rely at the hearing in relation to each portion appealed. In addition to these legal requirements, the Notice should also include: a. b. c. d. e. f. The name of the appellant; The address of the appellant; The Permit to Take Water number; The date of the Permit to Take Water; The name of the Director; The municipality within which the works are located; This notice must be served upon: The Secretary Environmental Review Tribunal 655 Bay Street, 15th Floor Toronto ON M5G 1E5 Fax: (416) ERTTribunalsecretary@ontario.ca AND The Director, Section 34.1, Ministry of the Environment and Climate Change 733 Exeter Rd London ON N6E 1L3 Fax: (519) Further information on the Environmental Review Tribunal s requirements for an appeal can be obtained directly from the Tribunal: by Telephone at by Fax at by at (416) (416) Toll Free 1(866) Toll Free 1(844) This Permit cancels and replaces Permit Number DJL86, issued on 2008/04/28. Dated at London this 25th day of August, Jason Lehouillier Director, Section 34.1 Ontario Water Resources Act, R.S.O Page 6 - NUMBER 3560-APLNRJ

7 Schedule A This Schedule A forms part of Permit To Take Water 3560-APLNRJ, dated August 25, Page 7 - NUMBER 3560-APLNRJ

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9 Water Conservation Levels that would be requested by LAWSS if there was an Emergency at the Water Treatment Plant or Booster Stations. Note that LAWSS recommends each community create a list of high water volume commercial, industrial, institutional and agricultural water users that they could call in the event of a Level 3 Water Conservation Request. LEVEL 1 WATER CONSERVATION REQUEST Under this request LAWSS would only request that municipalities would conserve water in all their activities. Examples: - No hydrant flushing - Stop use of splash pads/water parks - Close pools for maintenance - No lawn watering of municipal properties LEVEL 2 WATER CONSERVATION REQUEST Under this request LAWSS would request residents to additionally participate in this request in terms of non-essential water use. Industries should limit non-essential water uses. All Level 1 Conservation measures should continue. Examples: - No lawn watering by residents - No car washing by residents - No filling pools by residents - No lawn watering by industries - Limit water use by residents and industries to only essential uses LEVEL 3 WATER CONSERVATION REQUEST Under this request LAWSS would request more aggressive conservation measures be required by residents and businesses. All Level 1 and 2 Conservation measures should continue. Examples: - Residents should be asked to reduce essential water use as much as possible - Industries should be asked to reduce essential water use where possible July 2017

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13 Information for Residential Service Connections to LAWSS Watermains (<= 2 ) For any residential service connection, Lambton Area Water Supply System (LAWSS) requires: 1. Seventy-two (72) hours notice (three (3) business days not weekends or holidays) in advance of hot tapping, water main exposure or directional drilling (including entry and exit points) within three (3) meters of the LAWSS water main is required to arrange for LAWSS/Ontario Clean Water Agency (OCWA) personnel to be on site to observe the work. 2. In some cases LAWSS may require LAWSS/OCWA personnel to be present for greater distances from the marked LAWSS water main (i.e., greater than three (3) metres) and this distance will be communicated via LAWSS response to the one call locate request. 3. Any exposure of a LAWSS main or work in the area of the LAWSS main (within three (3) metres or as indicated via the one call locate request) without a LAWSS representative on site is strictly prohibited. 4. All directional drilling in the area of a LAWSS water main should start at the LAWSS water main side of the road and move away from the water main. 5. All connections shall be copper to the curb stop and in some instances to the residential flow meter. Copper pipe should run as a continuous length under roadways and other hard to access areas. 6. All connections shall be hot tapped by a LAWSS approved contractor and a stainless steel or brass saddle must be used. Use of any other types of saddles would require approval from LAWSS personnel prior to use. A sacrificial magnesium anode would also be required to be welded to this approved alternative type of saddle to reduce corrosion potential. 7. Stainless steel corrosion resistant fittings should be used. Metal fittings and all connections need to be wrapped in Denso Petrolatum Tape following installation. 8. All contractors hot tapping LAWSS water mains shall have insurance to indemnify and hold harmless LAWSS and their operator OCWA. LAWSS and OCWA shall be named as additional insured under the said policy. This policy and endorsement shall be provided to LAWSS prior to the start of any work. Susan MacFarlane, Ph.D., P.Eng. General Manager Lambton Area Water Supply System 1215 Fort Street Sarnia, Ontario N7V 1M1 Tel: x250 Fax: Cell: susan.macfarlane@lawss.org LAWSS Residential Connection Standards September 2017 Page 1/1

14 Information for >2 Connections to LAWSS Watermains Engineering LAWSS requires that all hot tapping work be performed by a qualified, approved contractor under the direct full-time supervision of a Professional Engineer and certified by same upon completion. All drawings and specifications shall be stamped and completion certified by a Professional Engineer. Drawings related to pipeline orientation and thrust block design need to be provided to the LAWSS general manager forty-eight (48) hours (2 business days not weekends or holidays) in advance of any work in the area of the LAWSS watermain. The absence of a thrust block on any connection must be approved by the LAWSS General Manager. A complete set of drawings should be provided to LAWSS for their files after completion as as built drawings. Notification Seventy-two (72) hours notice (three (3) business days not weekends or holidays) in advance of hot tapping, watermain exposure or directional drilling (including entry and exit points) within three (3) meters of the Lambton Area Water Supply System (LAWSS) watermain is required to arrange for LAWSS personnel to be on site to observe the work. In some cases LAWSS may require LAWSS/ Ontario Clean Water Agency (OCWA) personnel to be present for greater distances from the marked LAWSS watermain (i.e., greater than three (3) metres) and this distance would be communicated via LAWSS response to the one call locate request. LAWSS/OCWA personnel must be on site at all times for all of the above activities. Approved Contractors for Hot Tapping All contractors must be approved by LAWSS prior to hot tapping on LAWSS watermains. Insurance The approved hot tapping contractor shall have insurance to indemnify and hold harmless LAWSS and their operator OCWA. LAWSS and OCWA shall be named as additional insured under the said policy. This policy and endorsement shall be provided to LAWSS prior to the start of any work where a LAWSS representative would need to be present. LAWSS Service Connection Standards September 2017 Page 1/2

15 Equipment Requirements An approved backflow preventer is required on all service connections. The backflow preventer will require maintenance which will be performed and monitored by the local municipality. Unless otherwise agreed, a pressure reducing valve (PRV) must be installed. Where applicable a sampling connection (hose bib) shall be located on the municipal side of the meter/backflow preventer for use by LAWSS in the event that sampling is required. Any meter or chamber installed through a project is under the jurisdiction of the local municipality. Standards All work performed must be in compliance with all applicable regulations and standards (e.g., Ministry of Labour (MOL), Ministry of Environment (MOE), American Water Works Associations (AWWA) standards). All valves must be red top. Stainless steel or brass saddle must be used for hot tapping. Use of any other type of saddle would require approval from LAWSS personnel prior to use. A sacrificial magnesium anode would also be required to be connected to the approved alternative type of saddle to reduce corrosion potential. All fitting should be stainless steel and corrosion resistant fittings. Metal fittings and all connections need to be wrapped in Denso Petrolatum Tape following installation. Testing and commissioning procedures for new or repaired watermains connected to a LAWSS watermain shall be governed by applicable AWWA standards and MOE regulations. LAWSS and OCWA personnel shall receive and approve of these procedures prior to any action being taken that could potentially impact LAWSS watermains. Susan MacFarlane, Ph.D., P.Eng. General Manager Lambton Area Water Supply System 1215 Fort Street Sarnia, Ontario N7V 1M1 Tel: x250 Fax: Cell: susan.macfarlane@lawss.org LAWSS Service Connection Standards September 2017 Page 2/2

16 Information for Crossing a LAWSS Watermain In order to cross a Lambton Area Water Supply System (LAWSS) watermain the following is required: 1. LAWSS requires that all watermains be daylighted to determine their exact location prior to any pipeline crossings. 2. Any exposure of a LAWSS main or work in the area of the LAWSS main (within three (3) metres or as indicated by LAWSS/OCWA personnel on LAWSS response to a one call locate request) without a LAWSS representative on site is strictly prohibited. 3. LAWSS requires an opportunity to comment on the proposed separation distance between the proposed pipeline and the LAWSS watermain. Preliminary pipeline crossing drawings prepared by a Professional Engineer and showing the relative distance of the proposed pipeline to the LAWSS watermain shall be submitted to LAWSS General Manager. Once approved seventy-two (72) hours notice (three (3) business days not weekends or holidays) in advance of daylighting to uncover the LAWSS watermain is required to arrange for LAWSS/Ontario Clean Water Agency (OCWA) personnel to be on site to observe the work. 4. Following completion of the project, final pipeline crossing drawings shall be submitted to LAWSS General Manager. Susan MacFarlane, Ph.D., P.Eng. General Manager Lambton Area Water Supply System 1215 Fort Street Sarnia, Ontario N7V 1M1 Tel: x250 Fax: Cell: susan.macfarlane@lawss.org LAWSS Pipeline Crossing Standards September 2017 Page 1/1

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37 ITEM EXPENSES Money Spent Estimated Money Spent as of July 31, 2017 as of December 31, LAWSS Operating Emergency Repairs $200, $51, $200, General and Adminstrative Expenses $275, $39, $275, Staff Salary and Benefits $250, $83, $160, Schedule G Reconciliation Estimate $50, $0.00 $100, Subtotal $775, $174, $735, LAWSS Capital Projects Main Plant HVAC $587, $247, $587, Warranty Holdback for VFD at WTP Project $32, $6, $38, Parking Lot Upgrades for Accessability $20, $0.00 $20, Forest Tower Repaint (complete repaint) $1,400, $247, $1,200, Engineering Studies (Asset Assessment, Electrical and ELBS Capacity Assessments $100, $15, $100, SCADA - Radio Upgrade Project at LAWSS Tender Preparation and Installation $150, $0.00 $150, Engineering and Tender Document Preparation For Generator Replacement Project $300, $0.00 $50, RESERVE Generator Replacement Project $13, $13, $13, TOTAL 2016 and 2017 CAPITAL $2,602, $529, $2,158, LAWSS Major Maintenance Projects New meters for surface water water and backwash water $10, $4, $4, Replace Panel Relays on 600V in Motor Control Centre $17, $0.00 $17, HLP3 Rebuild and Trim Impeller $48, $0.00 $0.00 HLP3 Motor Refurbishment $3, $0.00 $3, HLP3 Ross Valve Rebuild $16, $9, $9, P2 Ross Valve Rebuild at WLBS $10, $0.00 $12, Retrofit Panelboard L and LC including engineering required $38, $0.00 $30, Retrofit Panelboard LD and HA including engineering required $38, $0.00 $30, Retrofit Panelboard HC and HC including engineering required $38, $0.00 $30, Arc Flash Short Circuit Protection Transformer Fuses $10, $0.00 $5, Maintenance on Limitorque Valves at WTP Reservoir $2, $1, $1, SCADA Migration at WLBS $15, $0.00 $0.00 Low Lift Clean Out and Inspection of Structure $25, $0.00 $25, Electrical Inspections ELBS and WLBS (half of the cost) $15, $6, $6, New Hydrant in Sombra $6, $0.00 $9, Forest Mag Meter Chamber Repair using a Sealant $20, $0.00 $16, New Isolation Valve on Distribution System at Reeces Corners $10, $0.00 $10, Refurbish External Gear Operation on Valve at Front and Maxwell $10, $0.00 $10, Repair Control System for Diesel Tanks $7, $0.00 $7, TOTAL 2017 MAJOR MAINTENANCE $339, $21, $229, Revenue from sale of water -$125, $85, $155, Revenue from OPA for incentive on Capital Projects -$150, $1, $80, Revenue from Interest and rental fees (Coast Guard, Execulink, Fire Services) -$62, $40, $62, Revenue from 2016 HST rebate -$170, $90, $113, Revenue transferred from 2016 Budget -$619, $619, $619, TOTAL REVENUE -$1,126, $836, $1,029, ESTIMATED TOTAL NET MONEY NOT SPENT FROM EXPENDITURES TOTAL NET MONEY NOT RECEIVED AS A REVENUE Net Money Not Spent from 2017 Budget Total to be transferred to 2018 Budget Net Money Transferred to Reserve $594, $96, $497, $250, $247,571.46

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42 2018 LAWSS OPERATING, MAINTENANCE, AND CAPITAL BUDGET DRAFT ITEM EXPENSES Sarnia St. Clair Plympton- Wyoming Warwick Point Edward Lambton Shores 2018 Percent Budget Allocations Based on 2016 Flows 59.41% 28.00% 5.40% 2.78% 2.35% 2.07% 2017 Percent Budget Allocations Based on 2015 Flows 58.76% 28.12% 5.89% 2.93% 2.15% 2.14% 2018 OPERATING AND MAINTENANCE COSTS (OCWA) (CPI = 1.4%) Service Fee $2,112,364 Hydro $1,723,800 Sludge Haulage $132,510 Point Edward Sewage Fee $81,895 Chemicals $272,940 Insurance $103,083 Diesel Fuel $7,605 Subtotal $4,434,197 $2,634,356 $1,241,575 $239,447 $123,271 $104,204 $91, LAWSS OPERATING Emergency Repairs $200,000 General and Administrative Expense $300,000 Staff Salary and Benefits $250,000 Vehicle Expenses $75,000 Schedule G Reconciliation Estimate $150,000 Subtotal $975,000 $579,248 $273,000 $52,650 $27,105 $22,913 $20,183 TOTAL OPERATING AND MAINTENANCE $5,409,197 $3,213,604 $1,514,575 $292,097 $150,376 $127,116 $111, Capital Projects (Carryover) Engineering Design for Emergency Generators $250,000 Total 2017 Projects Carried Over 2018 Capital Projects Rebuild 32" Ross Valve at WLBS $70,000 New Generators Replacement (including air louvers) $4,000,000 SCADA Radio Replacement Work (installation) $150,000 Engineering Studies (Electrical Engineering Assessment WTP, ELBS Capacity Increase) $150,000 TOTAL 2017 and 2018 CAPITAL $4,620,000 $2,744,742 $1,293,600 $249,480 $128,436 $108,570 $95,634

43 2018 LAWSS MAJOR MAINTENANCE Fire Alarm Panel $10,000 Flood Lights at WTP $3,000 Two year electrical inspection at WTP (combined with Engineering Study) $12,500 Low Lift and Surge Well Clean Out $25,000 Bisulphite Pump Replacement $25,000 PLC SCADA Migration at WLBS $15,000 WLBS Septic System Tile Bed Repair $50,000 Chamber at Bickford and White Line Repair $10,000 Chamber at White Line Repair $10,000 Hydrant Replacement in Point Edward on Michigan (contaminated site) $25,000 Flocculation Gear Drives (6 units) $22,500 Flocculation Mixer (6 units) $12,000 Replace Asbestos Damaged Ceiling Due to Rain $45,000 Phragmites Control at WLBS $6,000 Bypass Townsend Line Chamber $12,000 TOTAL 2018 MAJOR MAINTENANCE $283,000 $168,130 $79,240 $15,282 $7,867 $6,651 $5,858 Revenue from Sale of Water -$125,000 Revenue from OPA -$80,000 Revenue from Interest or Rental Fees -$72,000 Revenue from GST/HST Rebate -$100,000 Revenue Transferred from 2017 Budget -$250,000 TOTAL EXPENDITURES $10,312,197 $6,126,476 $2,887,415 $556,859 $286,679 $242,337 $213,462 TOTAL REVENUE -$627,000 -$372,501 -$175,560 -$33,858 -$17,431 -$14,735 -$12, Total Budget/Operating/Maintenance/Capital $9,685,197 $5,753,976 $2,711,855 $523,001 $269,248 $227,602 $200, Total Budget $10,347,589 $6,080,244 $2,909,742 $609,473 $303,184 $222,473 $221, Total Budget minus 25% of Debt Payment (Adjusted) $9,500,769 Note the 2018 Budget is greater than the 2017 Adjusted Budget by 1.94% Note total flow in 2016 is 18,319,866 m3 and cost charge per member is $0.53 per cubic metre Note: As per the Board Motion on October 27, 2016 LAWSS has added 75% of the debt payment back into the budget. Therefore, the decrease in budget from 2017 reflects this 25% savings in the debt payment. Debt payment in 2017 was $3,387, so therefore we will refund municipalities $846,820.