October 3, 2024, Board Report and YouTube of the board's discussion (scroll to -51 to get to the start of this particular discussion).
For detailed project background and financial estimates regarding Sage Mesa Water System's assessment, please visit RDOS Regional Connections. Once there, scroll to the bottom of the webpage. The link to the report is in the right-hand corner. Please note that the file is large and may take some time to load.
Recap of Financials
The estimated maximum total cost of the most expensive option (building an RDOS-owned water treatment plant in partnership with the Penticton Indian Band (PIB) or with PIB and the City of Penticton) is $33,034,000.00. This option is more costly to build and is anticipated to have lower long-term operational costs.
Alternatively, connecting to the West Bench/City of Penticton's infrastructure is a less expensive option to construct, but it would involve higher ongoing costs to purchase water from the City.
It is important to note that the $33 million estimate does not yet factor in any potential grants or partnerships with senior governments. RDOS staff have initiated discussions with senior Ministry of Municipal Affairs staff to explore grant opportunities. A feasibility study is underway to evaluate the potential for a joint water treatment facility with PIB or PIB and the City of Penticton.
The borrowing would be phased over the anticipated 13-year construction period.
The Asset Vote Question (tentatively scheduled for April 12, 2025)
When ratepayers of the Sage Mesa Water System cast their votes, the referendum question will be:
*' Are you in favour of the Regional District of Okanagan-Similkameen adopting Sage Mesa Water System Service Establishment Bylaw No. 3075, 2024, to provide water service for a portion of Electoral Area "F"; and, Bylaw No. 3076, 2024, Sage Mesa Loan Authorization Bylaw, to authorize the long-term borrowing of up to $33,034,000.00 for capital upgrades to the Sage Mesa Water System?'*
If the majority votes in favour of borrowing, RDOS will proceed with the necessary work.
If the majority votes against borrowing, the province will retain control of the system, and the RDOS will no longer be involved in acquiring the Sage Mesa Water System process.
The referendum is tentatively scheduled for April 12, 2025. However, if further public in engagement is required or there is progress in securing grants/partnerships that could reduce costs, the date can be pushed back. The Province requires a minimum of four months for its process, so the timeline could proceed quickly (by April 12) or be extended.
Why is RDOS Asking Ratepayers to Approve Borrowing up to $33 Million?
For RDOS to take over the Sage Mesa Water System (SMWS), a water system service area bylaw must be established. To establish the service area bylaw, ratepayers need to agree to the potential maximum cost of upgrading the system, which is why a vote on borrowing the total amount is required.
Public Engagement Timeline
Before RDOS staff can engage with citizens, the Board must approve the proposed service area and the referendum question. With the Board approving the service area and referendum question today, the public engagement process can begin. The RDOS will mail additional information to all SMWS ratepayers. I want to reiterate that citizens make this decision, and I know you need more information to do so.
There was considerable discussion and several questions from the board table today. This is a significant sum of money to consider borrowing, and citizens need more information before being asked to make this decision. RDOS staff are working with SD67 to set up a community meeting at the school, and as soon as the date is secured, the RDOS (and I) will advise the community.
In the meantime, please watch the board meeting discussion (fast-forward to -51), review the linked board report, and view the system's assessment on the Regional Connections website. Very critical water system upgrades must be completed. I know that SMWS ratepayers will need help with the cost. How we get that help is still underway and is the priority.
Thank you for reading, and more to come.
Riley
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