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Regional council held a rare Friday special meeting to approve an unbudgeted $15.1 million emergency project at the Mannheim Water Treatment Plant. The money comes entirely from water capital reserves and no provincial or federal funding has been confirmed.

Councillors raised concerns about the speed of the decision, the potential for costs to climb higher, and the lack of a clear financial strategy for what could become a much larger multi-year tab. One councillor moved to refer the matter to committee; the motion died without a seconder. The remaining councillors voted to proceed, with one casting a recorded opposition vote.

Why It Matters:

The region's water capacity problem is already affecting the development community — including small developers like a local church that has spent 10 years working toward a building permit. Staff confirmed that once costs across all parallel water projects become clearer in 2027, the region may need to reassess project priorities and water rates. No outside funding has been confirmed to offset the $15.1 million approved at this meeting. Staff said a public announcement will be issued following council's approval, with ongoing updates as the project moves forward.

Regional council convened a special meeting to approve a $15.1 million emergency procurement for containerized water filtration at the Mannheim Water Treatment Plant. The session was called outside the regular committee schedule because units are in high demand across North America and staff warned that waiting could cost the region its spot in line for the first container.

The tone was cautious. Several councillors flagged concerns about cost uncertainty, the speed of the process, and the absence of confirmed outside funding. One opposed the motion. Most voted yes, citing the urgency of the water supply situation.

Chief Financial Officer (CFO) Wayne Steffler presented the report, describing it as a "time-sensitive" Keystone initiative to increase treatment capacity at Mannheim while longer-term solutions are developed.

The approved package includes adding a new capital project worth $15.1 million, funded from the water capital reserve. Of that, $7.9 million goes to H2O Innovation for containerized filtration units, and $2.5 million goes to H2 Ontario for general contractor and construction services. Electrical and engineering work are also included.

The pilot will add capacity in stages. Staff said the first container — delivering 25 litres per second (L/s) — is targeted to be operational in June 2026. A second container adding another 25 L/s is targeted for the third quarter of 2026. All four containers, capable of up to 300 L/s combined, are expected to be fully operational by July 2027.

Once the long-term repair — the DAFF (Dissolved Air Flotation Filtration) project — is complete, the containerized units are expected to be removed. Staff noted the containers could potentially be redeployed at other regional facilities.

Staff explained that these units are being ordered by municipalities across Canada and the United States. The region had already lost one container to another buyer. Amy Shaw, representing regional technical staff, told council that without a signed contract, the region risks losing the June delivery slot as well.

Project Manager Aean Keter told council there is no firm deadline — the vendor will sell to anyone willing to sign a contract and show funds. "We just need to execute a contract to show that we have the intent and the funds," he said.

Because the work is urgent, was not previously budgeted, and includes a negotiated component above the regional bylaw threshold, council was required to approve both the capital budget amendment and the procurement approach.

Councillor Vanbeck pressed staff for a transparent account of the selection process, noting that members of the public were watching.

CFO Steffler and project manager Keter outlined the following:

When Councillor Vanbeck asked where H2O Innovation's price ranked among the three finalists, Keter said he could not disclose competitor pricing publicly but confirmed H2O scored highly on price as well as on technical criteria. References from other municipalities were also checked as part of the evaluation.

Several councillors raised concerns before voting.

Councillor Salinin questioned why a $15 million ask with a six-page report was being put to council two days before the vote, without prior committee review.

She moved to refer the matter to Tuesday's committee. The motion died without a seconder.

Councillor Hunick asked whether provincial funding was available. Steffler confirmed no specific funding has been identified, though regional leadership has raised the issue with the provincial minister. "They've been very open to working through MECP and MMA," Chair Redmond noted, referring to the Ministry of the Environment, Conservation and Parks (MECP) and the Ministry of Municipal Affairs (MMA).

Councillor Foxton raised the possibility that total costs could reach $25 million once all work is accounted for, including electrical upgrades that may require a new transformer. She called for a separate financial meeting to address where the money will come from and what other levels of government might contribute.

Councillor Leot raised concerns about winter concrete work. Pre-cast concrete installation in freezing temperatures requires heated enclosures and propane heating — a significant additional cost. Staff said the figures in the report represent a worst-case scenario with contingency buffers included, and that these issues were being actively worked through at a large on-site meeting the day before.

Councillor James asked staff to confirm that the approved amounts include an upset limit — meaning no additional approvals would be required. Staff confirmed the container costs are fixed, and contingency buffers have been built into the construction elements, though some electrical costs remain uncertain.

Councillor Rodriguez asked whether council would have a formal checkpoint before the second, third, and fourth containers are ordered. Staff said the go/no-go decision for subsequent containers would follow the pilot results from the first container. Given the 12-week lead time on ordering, staff indicated they would likely need to move quickly once the pilot proves successful.

The Vote

The motion to approve was made by Councillor McCabe and seconded by Councillor James.

Vote Result: Carried

In Favour: Councillor Craig, Councillor Herb, Councillor Foxton, Councillor Gowing, Councillor Harris, Councillor Hunick, Councillor James, Councillor Liot, Councillor McCabe, Councillor Noak, Councillor Rodriguez, Councillor Sha, Councillor Vanbeck, Councillor Wolf.

Opposed: Councillor Salinin.

Note: Individual vote names were partially confirmed through the escribe voting system and verbal declarations recorded in the transcript. Some councillors experienced technical issues accessing escribe during the meeting. The full recorded vote breakdown was not read aloud in full by the Chair.

Following the vote, Chair Redmond asked Commissioner Rod Gatsky to update council on a white paper being prepared for the development community. Developers have requested a document they can use when communicating with their banks and lenders about the water capacity situation.

Gatsky confirmed a first draft exists but has not yet been shared with the development industry, area municipalities, or council. He said refinements are ongoing and the document will be discussed at a coming meeting of the development stakeholder group.

Councillor Vanbeck raised concern that area municipalities — which hold exclusive planning control since January 2025 — are not consistently included in related meetings, despite a request from mayors that they be involved. She asked that the draft be shared with council and area municipalities as soon as it is in reasonable shape.

Gatsky confirmed that planning heads from area municipalities are in contact with regional staff on a weekly or bi-weekly basis and that the white paper will be shared widely once refined.

Councillor Sha asked whether the white paper would be available to smaller developers, including a local church that has been working toward a building permit for 10 years. Gatsky said the document is intended for all developers, large and small, to use with their financial institutions.

Multiple councillors left the meeting with unanswered financial questions. No provincial or federal funding is confirmed.

The $15.1 million comes entirely from water reserves designated for future projects. Staff acknowledged those reserves may need to be reprioritized when a clearer picture of total costs emerges — potentially by 2027.

Councillor Foxton and Councillor Leot each called for a separate, dedicated financial report on this project — not bundled with broader water updates. CFO Steffler agreed to produce a separate report elaborating on the financial strategy and possible approaches.

Staff also noted that this containerized filtration pilot is one of several parallel projects underway, including repairs to the Greenbrook and Parkway facilities. A report covering those additional items was scheduled for the committee meeting the following Tuesday.

Upcoming Key Dates

Source:
This analysis is based on the February 6, 2026 Special Council Meeting and supporting documents. All quotes, timestamps, and figures are drawn directly from official meeting transcripts.