city of revelstoke/revelstoke mountain resort sewer report 03-26-13

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Page 1 of 3 City of Revelstoke Council Report Date: March 18, 2013 To: Mayor and Council From: Mike Thomas, P.Eng. Director of Engineering and Public Works Subject: Revelstoke Mountain Resort Sewer Discharge Costs 1. ISSUE Council requested recovery of sewer discharge fees from Revelstoke Mountain Resort (RMR) for trucked sewer waste from the holding tanks at the resort. 2. RECOMMENDATION THAT the City invoice Revelstoke Mountain Resort $46,456.88 for trucked sewer discharge fees that were not paid for the period of February 2011 to February 2013 in accordance with the requirements of the Sewer Regulation Bylaw #1683. 3. CAO COMMENTS Reviewed. GDI. 4. BACKGROUND 4.1. In February 2013, City staff discovered that the Revelstoke Mountain Resort’s contractor, Hard Hammer Construction, had failed to register trucked sewer loads in accordance with the bylaw. Through further investigation it was determined that the contractor , in addition to failing to record discharged trucked sewer amounts, was also discharging the trucked waste in an unapproved location on Mountain Road above the MacKenzie Landing strata. 4.2. Under section 7.01 of Bylaw #1683, the owner or occupier of the property is required to pay to the City the rates established under the bylaw. 4.3. In an email from RMR’s legal counsel, dated March 14, 2013, (see attached), RMR has suggested an amount of $6,400.00 to pay for the disposal of the trucked sewer waste. 4.4. In a letter from Hard Hammer Construction to Mr Gaglardi, Mr Bateman acknowledges actions that fail to meet the City’s bylaw requirements, (see attached) 4.5. City staff have compiled the records of sewer discharges, (see attached), with the following clarifications: 4.5.1. In 2009, prior to the completion of the Camozzi lift station, the sewer from the base area was being trucked as well. As such, 2010 is suitable as a base year for these calculations.

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This report from the City of Revelstoke's engineering department was presented to Revelstoke City Council at their Mar. 28 meeting. It outlines raw sewage dumping by a subcontractor at the resort and suggests a $46,000 payment to the city to rectify the illegal dumping.

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Page 1: City of Revelstoke/Revelstoke Mountain Resort Sewer Report 03-26-13

Page 1 of 3

City of Revelstoke Council Report

Date: March 18, 2013

To: Mayor and Council

From: Mike Thomas, P.Eng. Director of Engineering and Public Works

Subject: Revelstoke Mountain Resort Sewer Discharge Costs

1. ISSUE

Council requested recovery of sewer discharge fees from Revelstoke Mountain Resort (RMR) for trucked sewer waste from the holding tanks at the resort.

2. RECOMMENDATION

THAT the City invoice Revelstoke Mountain Resort $46,456.88 for trucked sewer discharge fees that were not paid for the period of February 2011 to February 2013 in accordance with the requirements of the Sewer Regulation Bylaw #1683.

3. CAO COMMENTS

Reviewed. GDI.

4. BACKGROUND

4.1. In February 2013, City staff discovered that the Revelstoke Mountain Resort’s contractor, Hard Hammer Construction, had failed to register trucked sewer loads in accordance with the bylaw. Through further investigation it was determined that the contractor , in addition to failing to record discharged trucked sewer amounts, was also discharging the trucked waste in an unapproved location on Mountain Road above the MacKenzie Landing strata.

4.2. Under section 7.01 of Bylaw #1683, the owner or occupier of the property is required to pay to the City the rates established under the bylaw.

4.3. In an email from RMR’s legal counsel, dated March 14, 2013, (see attached), RMR has suggested an amount of $6,400.00 to pay for the disposal of the trucked sewer waste.

4.4. In a letter from Hard Hammer Construction to Mr Gaglardi, Mr Bateman acknowledges actions that fail to meet the City’s bylaw requirements, (see attached)

4.5. City staff have compiled the records of sewer discharges, (see attached), with the following clarifications:

4.5.1. In 2009, prior to the completion of the Camozzi lift station, the sewer from the base area was being trucked as well. As such, 2010 is suitable as a base year for these calculations.

Page 2: City of Revelstoke/Revelstoke Mountain Resort Sewer Report 03-26-13

Page 2 of 3

4.5.2. Prior to February 2011, the trucked sewer contract was being performed by Shewchuk Enterprises Ltd using a different truck. The City believes that the volumes recorded in this period fairly reflect the amount of sewer collected.

4.5.3. From February 2011, Hard Hammer Construction was the contractor collecting the trucked sewer. The volumes recorded by the City as received are shown in the attached graph in blue. These amounts have decreased rapidly from 2009-10.

4.5.4. Using 2010 as the base year, with the volume calculation described above from February 2011 onward, the City has projected that there is an unreported discharge in 2011 and 2012 equal to the difference in volume between these years and the base year of 2010. This is shown as purple in the attached graph.

4.5.5. The size of the sewer truck used by Hard Hammer Construction is handwritten and marked as 7 cubic meters on the side of the tank at full. But by geometric measurement of the tank by City staff, the tank measures 12.65 cubic meters full. As such, we believe that the last accurate measurement of sewer discharge per truckload was in January 2010 before Hard Hammer Construction commenced the service. All discharges after February 1, 2011 should be multiplied by a factor of 1.8073 (12.65/7) to correct this error. In the attached graph, this amount is shown in orange. All future discharges are being measured by staff accordingly.

4.5.6. Basic statistics shared with the City by Mr Gaglardi of RMR concerning ridership at the resort have been described as increasing by 15% year over year for two years, 2011 and 2012. Sewer volumes can reasonably be assumed to increase evenly with increased ridership. These increases over the volume for 2010 have been used to project an increasing sewer flow in 2011 and 2012, contrary to the pattern of decreased discharges recorded by the City. This estimate of flows based on ridership is shown as green in the attached graph.

4.5.7. For January and February 2013, the City has used these same months in 2010 as the base case, adding 15% per year for 2011 and 2012. This is shown as purple (and green for the 15%) in the attached graph.

4.5.8. In all cases, the volume that has been recorded by the City and previously billed (blue in the attached graph) has been deducted from the estimated fees owning.

4.5.9. Trucked sewer rates for the years in question are as follows, (from the respective Fees and Charges Bylaws):

2011 - $15.45 2012 - $16.02 2013 until March - $16.02

4.6. Since raising this issue with RMR and Hard Hammer Construction, trucked sewer discharges complying with the bylaw have become more regular.

Page 3: City of Revelstoke/Revelstoke Mountain Resort Sewer Report 03-26-13

Page 3 of 3

5. FINANCIAL IMPLICATIONS

5.1. Invoicing these fees will recover lost revenue estimated at $46,456.88

5.2. City staff time spent investigating these activities has not been included in these calculations. This is estimated at approximately $6,000.

6. DISCUSSION

6.1. RMR’s suggestion of a maximum fee of $6,400 described in 4.3 above is based on incorrect truck volumes. Anecdotal evidence of the number of times per week the truck is dumping from the contractor who was failing to report the discharges is based on 2011 and 2012 data, and does not include out of ski season discharges.

6.2. In addition to the payment of fees and charges under the bylaw, RMR and Hard Hammer Construciton may both be liable for infractions under the Bylaw and as established within the Offence Act.

6.3. City staff are considering additional administrative actions to ensure that any damages to the sewer system are addressed and that the risk of further unapproved discharges is minimised.

6.4. These trucked sewer volumes have been collected and treated without payment for the service, and fees may be collected in accordance with Section 7.01 of the Bylaw.

6.5. Failure to pay fees and charges imposed and payable under the provisions of the Sewer Regulation Bylaw and which remain unpaid after December 31, 2013 shall be deemed to be taxes in arrears.

7. RELEVANT LEGISLATION

7.1. Sewer Regulation Bylaw #1683 and amendments.

7.2. Fees and Charges Bylaw #2008

8. RECOMMENDATION AND OPTIONS

8.1. Recommendation:

THAT The City of Revelstoke invoice Revelstoke Mountain Resort $46,456.88 for trucked sewer discharge fees that were not paid for the period of February 2011 to February 2013 in accordance with the requirements of the Sewer Regulation Bylaw #1683

8.2. Option 1: Council could choose to concur with RMR’s estimated $6,400 fees not paid, and direct staff to invoice accordingly.

8.3. Option 2: Council could choose to remove the estimated ridership increases from the calculations, and direct staff to invoice RMR $33,615.62 for trucked sewer discharge fees that were not paid.

Page 4: City of Revelstoke/Revelstoke Mountain Resort Sewer Report 03-26-13

RMR Sanitary Dumping

2009 2010 2011 2012 2013

January 502 429 157 97 64

February 480 220 50 102 67

March 268 132 77 75

April 95 66 32 28

May 18 24

June 45 27 13

July 36 5

August 27 39 3 19

September 27 68 17

October 5 14

November 27 18 22 26

December 173 123 59 44

Total 1,681 1,145 472 391 131

Volume Correction 255 316 106

Projected Unreported Discharge 417 438 591

Ridership Increase 172 369 267

Total Not Recorded (cubic meters) 0 844 1,123 963

Rate/cubic meter 14.77$        15.45$          16.02$          16.02$          

Annual Additional Fees ‐$            13,038.55$  17,987.46$  15,430.87$ 

Total Fees 46,456.88$  

RMR Holding Tank - Monthly Volume Totals (m3)

1,681

1,145

472391

131

255316

106

417 438

591

172

369

267

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2009 2010 2011 2012 2013

RMR Sewer Discharge Calculations

Ridership Increase

Projected Unreported Discharge

Volume Calculation Correction

Recorded DischargesNote: 2013 data is calculated to the end of February.

Page 5: City of Revelstoke/Revelstoke Mountain Resort Sewer Report 03-26-13

 

From: Rob Toor [mailto:[email protected]] Sent: March-14-13 3:42 PM To: Tim Palmer; David Raven Cc: John Guenther; Council; Bob Gaglardi; Erin Teeple Subject: Sewer issue  

Mayor, Council and Staff,  

RMR has become aware that the city of Revelstoke is thinking of imposing a fine for RMR’s 

subcontractors actions.  

I admit, when Tim Palmer informed me of the incident, I asked him which bylaw did the subcontractor 

breach and that I would investigate the matter. At no time, did I state to Mr. Palmer to prove the 

occurrences happened.  I admit, Mr. Palmer became very upset and angry when I asked him this.  

Nonetheless, I received a letter from the subcontractor in regards to the number of times he disposed 

sewer not at the City Sewer disposal center, which I have enclosed.  

I have been provided information for RMR’s sewer disposal for 2011 and 2012. During 2011 and 2012, 

RMR hired a subcontractor to empty the Daylodge sewer tank approximately 3‐5 times per week for 

approximately 18 weeks. I am informed the average load dumped at the City Sewer Disposal Center was 

approximately 5.75 meters cubed. I understand the rate the City charges is $15.45 per meter.  

From the above information, it would seem RMR would incur an average cost per year of $6,400.00 for 

its sewer disposal.   

As stated in the attached letter, and based on the number of occurrences and the amount dumped, it 

would seem excessive if the City fined RMR an amount greater than the cost of one year of disposal at 

the City Sewer Disposal Center  

Furthermore, RMR or Northland Properties Corporation did not commence these actions, it was a 

subcontractor who admits the number of times he disposed sewer not at the City Sewer Disposal center.  

I look forward to your reply.  

 

Thanks

Rob Toor | Corporate Counsel Northland Properties Corporation 310 - 1755 W Broadway | Vancouver | BC | V6J 4S5 Phone 604-730-6633 | Fax 604-730-4645 Email: [email protected]

Page 6: City of Revelstoke/Revelstoke Mountain Resort Sewer Report 03-26-13