What is the primary purpose of the service-sharing agreement between St. Clements and East St. Paul?

The agreement establishes a legal and operational framework to facilitate the connection of water and wastewater services along the Henderson Highway corridor. The partnership is designed to promote regional economic growth, protect the environment, and provide more efficient and cost-effective management of infrastructure for both municipalities.

How is the partnership governed and overseen?

Oversight is provided by a Joint Infrastructure Committee.

This committee is composed of the Chief Administrative Officers (CAOs), administrative staff, and two Council representatives from each municipality. They are responsible for overseeing the planning and implementation of shared major infrastructure projects and reporting back to their respective Councils.

What specific infrastructure is included in this arrangement?

• Wastewater: St. Clements agrees to accept low-pressure wastewater from East St. Paul. This is delivered via a forcemain to the Donald Lift Station for treatment at the CIL Road Lagoon.
• Water: The municipalities share a water main section extending from Lockport to the East St. Paul municipal boundary.

Who owns and maintains the shared infrastructure?

Ownership and maintenance responsibilities are generally divided by municipal boundaries:

• East St. Paul is responsible for the design, installation, and maintenance of the forcemain up to the “Point of Delivery” (the connection flange at the Donald Lift Station).
• St. Clements retains full ownership and operational control of the Donald Lift Station and the CIL Road Lagoon.
• For the water system, each municipality maintains the portion of the water main located on its own lands.

Does the existing system have enough capacity to support this agreement?

A 2025 capacity study confirms that the St. Clements system has sufficient hydraulic capacity (currently only 45% utilized). While the lagoon faces “organic capacity” challenges due to septage hauled from outside municipalities, St. Clements is implementing policy changes to restrict non-resident dumping and plans to upgrade aeration systems to support long-term system performance. Based on current engineering analysis, the system has the capacity to accommodate anticipated connection growth under this agreement, subject to ongoing regulatory compliance and operational monitoring.

Who regulates water and wastewater servicing?

Municipal water and wastewater systems operate under provincial regulatory and environmental licensing requirements. These systems must meet strict design, operational, and environmental standards established by the Province of Manitoba.

Any system expansions, servicing agreements, or infrastructure upgrades must receive applicable regulatory approvals and are subject to ongoing monitoring to ensure compliance with environmental and public health standards.

How is the project being funded, and will it impact local taxes?

The guiding principle is that “growth pays for growth.”

• Connection Fees: East St. Paul pays Connection Fees to St. Clements to recover past capital investments made in the base infrastructure.
• Cost Sharing: The shared section of the water main is cost-shared on a 50/50 basis.
• Developer Responsibility: Private developers are responsible for the capital costs of installing the connector infrastructure at no cost to St. Clements. (i.e. when developer connect to the shared infrastructure, they are responsible for the capital costs.  St. Clement’s will incur no costs.)
• Ratepayer Protection: The agreement ensures that existing St. Clements ratepayers do not bear the costs of East St. Paul’s service. In fact, sharing fixed operational costs is expected to reduce the per-household burden for St. Clements residents.

Any costs to East St. Paul are funded through the utility (user rates, connection fees, and/or developer contributions), not through general property taxes.

Connection Fees are intended to recover historic investment in regional base infrastructure and are applied in accordance with the inter-municipal agreement (not to subsidize unrelated operations).

What is the “Oversizing Payback” mechanism?

This is a financial process used to reimburse costs if infrastructure is built larger than currently needed to accommodate future regional growth. It ensures that the costs of building extra capacity today are shared fairly based on who benefits from the system in the future.

For example, if infrastructure such as a watermain is constructed larger than current demand to accommodate future regional growth, future benefiting parties shall reimburse the municipality that funded the oversizing portion.

How long will this agreement remain in effect?

The agreement has an initial term of twenty years.

It is renewable in ten-year increments by mutual agreement between the two municipalities.

How are disputes between the two municipalities resolved?

Disputes follow a structured three-step process:

• Binding arbitration if the matter remains unresolved. Importantly, the agreement requires that utility services must continue without interruption throughout any dispute resolution process.e this paragraph and add your content here instead.
• Attempted resolution by the Chief Administrative Officers.
• Referral to the respective Councils in a joint session.