SMWS Update: an RDOS Priority, Senior Government Update, & Citizen Support

2025 08 07

Today, the RDOS board approved a letter from the RDOS Chair to the province, emphasizing the urgency of the SMWS and requesting a meeting with the Chair, me, and senior RDOS staff to explore options for provincial support for the SMWS infrastructure upgrades. This motion was introduced because, despite several requests to Ministers and discussions with provincial staff, a meeting with a relevant Minister had not yet been scheduled (as of last week when the agenda was published).

Board Meeting Recording.

Update: A meeting was confirmed on Friday, August 1, with Minister Anderson, RDOS CAO, and me for September 3. The Board will still send a letter to the province, as a coordinated response to the SMWS issue remains an ongoing request.

Current Status: After several months of emails and meetings with senior ministry staff, as well as meeting requests with ministers, here is the update on provincial support requests. 

My main message to the Ministers of Housing and Municipal Affairs, Water, Land, and Resource Stewardship, and the Minister of State and their senior staff:

• Unlike private utilities regulated by WLRS, which are required to maintain infrastructure and financial reserves to ensure system sustainability, the province made no similar considerations for Sage Mesa ratepayers over three decades. The result is a severely degraded system with remediation costs now shifted to residents.

• Under provincial oversight since 1990, the Sage Mesa Water System is in critical condition and requires $33 million in repairs/upgrades. This cost is proposed through a local borrowing referendum, which would place an unsustainable financial burden on a small community of 242 homes.

   My ongoing requests to the province:

• Provide urgent, special financial assistance or grant funding to help alleviate the extraordinary costs facing residents of the Sage Mesa Water System ratepayers. i.e., Are there contingency funds or unallocated/returned grants that could be redirected to SMWS?

• Work in partnership across Ministries to develop a coordinated, whole-of-government response that reflects the urgency and complexity of the situation.

Provincial responses in brief:

Summary of letter from the Deputy Minister, Toni Collins, from the Ministry of Housing and Municipal Affairs (HMA) on behalf of Minister Kahlon: There are no HMA infrastructure grants currently available for application, and replacing aging infrastructure is primarily the responsibility of ratepayers.  My reply, in brief: The province did not ensure long-term sustainability, citizens acknowledge that contributions are necessary, and this level of debt threatens to render homes unaffordable and unsellable.  Current state: awaiting a response from the new Minister of HMA, Minister Boyle and/or Deputy Minister Collins (recognizing that Minister Boyle is new to the role). Update: August 18 – the RDOS CAO and I are meeting with Mr. Bedford, Executive Director, Local Government Infrastructure and Finance, Ministry of Housing and Municipal Affairs. The RDOS and I will again request urgent, special financial assistance/grant for SMWS, as well as a coordinated whole-of-government response that reflects the urgency and complexity of the system.

Ministry of Water, Land, and Resource Stewardship Minister Neill declined a meeting and invited me and the RDOS CAO to follow up with Assistant Deputy Minister James Mack.  Note that on July 2, the RDOS board endorsed the SMWS as one of the three projects to put forward for the UBCM Strategic Priorities Fund (up to $7 million per project).  Current state: ongoing conversations between Mr. Mack (WLRS ADM), the RDOS CAO, and me have resulted in pending letters of support for the UBCM grant (contingent upon the Ministry/Minister’s satisfaction with the RD’s application and the eventual transfer of the utility to the RD).  The request for a meeting with the Minister remains unfilled, but we are hopeful.

Minister of State, Hon. Anderson. The RDOS Board met with Minister Anderson in July, and I am grateful to my fellow board members who allocated a significant portion of the meeting time for me to advocate on behalf of Sage Mesa ratepayers.  Current state: As of August 1, Minister Anderson has agreed to meet with me and the RD’s CAO on September 3.  

I have also spoken with our elected MLA and MPs on several occasions, including advocating to MLA Boultbee and MLA Wilson (who represents Boundary-Similkameen and serves as the opposition critic for WLRS) last March, as documented in the Hansard from the May 1 Committee of the Whole. All your elected officials are raising awareness of this issue and requesting support for ratepayers.  

Next Steps

• In the coming weeks, the RDOS will complete the SMWS UBCM grant application ($7 million) and submit it to WLRS for potential endorsement and letters of support. 

• August 21 - the referendum date will be confirmed by the RDOS Board (2025 or early 2026). 2025 08 15 - Note, this decision has been deferred; the referendum date will be set at a future board meeting.

• On September 3, the CAO and I will meet with Minister Anderson. 

• The third Sage Mesa Water System community meeting is scheduled for September 10.  Your MP, MLA, and each Minister have been invited to attend this meeting.  The same invitation was extended to the last community.

• The end of September will be UBCM, and the RDOS will request a meeting with Ministers about small water systems.

Citizen Support | Regional Connections

Please familiarize yourself with the information on the RDOS Regional Connections page.  If you have questions or information to share, submit them to the RDOS, which will then post the answers and information on the site.  This allows RDOS staff to verify accuracy, ensure legality, and evaluate feasibility, ensuring that all ratepayers have access to the same information simultaneously.  Information shared elsewhere should be considered opinion or speculation.

If you wish to contact your senior government representatives, please find their contact details below. MLA Boutlbee, MLA Wilson, and MP Konanz have been very supportive and responsive. Although they are unable to access any special funding, they are seeking ways to raise the profile of SMWS. If there is additional financial support beyond the $7 million UBCM grant, it is likely to come from the provincial ministerial level.

MLA: Amelia.Boultbee.MLA@leg.bc.ca

MP: helena.konanz@parl.gc.ca

Minister Randene Neill, WLRS: WLRS.Minister@gov.bc.ca

Minister Brittny Anderson, Minister of State: MSP.Minister@gov.bc.ca

Minister Christine Boyle, Housing in Municipal Affairs: HMA.Correspondence@gov.bc.ca

Water Supply | Water Treatment Facility | City of Penticton

The bulk water agreement between the City of Penticton and the Regional District of Okanagan-Similkameen (RDOS) is set to expire on March 31, 2037, and will be subject to renegotiation. The City is not obligated to accept the same terms.  

Completing a pre-feasibility study for a shared Water Treatment Facility with PIB allows the RDOS to consider an alternative water supply option. In this scenario, the RDOS is not merely a customer of a single supplier (the City). Instead, the RDOS is a co-owner of a shared water treatment facility. A feasibility study is currently underway to determine the viability of this option.  The study does not delay or prohibit ongoing conversations with the City.

2012 Water Agreement Background

The 2012 Water Agreement between the City of Penticton and the RDOS included provisions for supplying bulk treated water to the West Bench and Sage Mesa areas. West Bench connected immediately; Sage Mesa did not. The 2012 agreement presents an opportunity for Sage Mesa to secure its water supply service once RDOS owns the system and negotiates acceptable terms with the City of Penticton.

Thank you.

Riley

Electoral Area "F" Director

rgettens@rdos.bc.ca