THE CORPORATION OF THE CITY OF PORT COQUITLAM
MEMO

TO I. Zahynacz, DATE: October 29, 1991

City Engineer
cc B. Kirk

FROM: J. Maitland, City Administrator
City Treasurer.

SUBJ ECT: Water and Sewer Capital Requirements

\

Rarlier this year I went to Council with significant rate increases in both the water and
sewer utilities mainly to increase the funds available to do capital replacements when

required.

After some discussion with you a calculation was included in the report to Council which

said that we need on an ongoing annual basis $221,800 for the water cap! al replacements
and $171,600 for sewer capital replacements. .

Council accepted the proposed rate increases with the understanding that there may be
further minor adjustments necessary to fully provide for these capital replacements.

Water Utility
The proposed list of capital required for the next two years for the water utility shows that

$653,250 is required in 1992 (net of provincial grants and reserve fund contributions) and
$693,750 is required in 1993.

Sewer Utility

The proposed list of capital required for the next two years for the sewer utility shows that
$418,000 is required in 1992 (net of provincial grants and reserve fund contributions) and

$356,000 is required in 1993.

Information Required

As. the amounts requested in 1992 are far in excess of what was estimated in the earlier
report I need to know if we are simply catching up on some of the work which was not
previously done or if the annualized amounts are out of whack. ‘

Are the capital replacement amounts estimated in the report to Council in January valid, ie
target $230,000 for water and $180,000 for sewer? | |

Jf not, what amounts would be appropriate on an annual basis? (in 1991 5)