By Martha Wickett OBSERVER STAFF Oct 18 2006 http://www.saobserver.net/
Water treatment: Stricter policies mean city needs to upgrade current services.Salmon Arm taxpayers are being asked to approve the borrowing of $13 million needed to construct a new $20-million dollar water treatment plant. In 2003, in response to the Walkerton, Ont. tainted water tragedy, the provincial government imposed stringent new policies governing water treatment. At the same time, the then-District of Salmon Arm had been looking at options for upgrading the existing water treatment plant at Canoe Beach. A study was carried out in late 2004 by Stantec Consulting Ltd. when Interior Health requested the city develop a water-treatment plan. The results favoured a combination of direct filtration and ultraviolet light at the Shuswap Lake source at Canoe Beach as well as ultraviolet light disinfection only at the East Canoe Creek (Metford Dam) source. The current estimated cost of construction is $19,926,700. Although the estimate in early 2005 was $9,550,330, Chris Cadotte, the city's manager of financial services, informed council that due mainly to increased labour and material costs, the estimated project cost has doubled, bringing it the $20 million figure. Charlie Ward, the city's director of operations, noted that many municipalities are building water-treatment facilities and the cost increases are something of an unknown. "By the time it's finished in 2009, we just don't know. Hopefully we have built enough in the bylaw to more than cover the anticipated cost." The city has been approved for a B.C. Community Water Improvement Grant for $6,560,000, which will reduce the $20 million needed. The city will use the alternative approval process, whereby 10 per cent, or 1,274 electors, must request that council not proceed with the borrowing of $13.2 million. If such a petition was presented, the question of borrowing the money would go to referendum. The deadline for elector responses is Jan. 5, 2007. At city council's Oct. 10 meeting, Coun. Alan Harrison pointed to the importance of the expenditure. "This may be the most important bylaw we pass in our three-year term," he said of the loan authorization bylaw. "It's certainly the most expensive." He asked how many people attended the open house at Canoe outlining the project. Charlie Ward, the city's director of operations, told him very few. Harrison said he thinks the turnout shows that people see protecting water quality as a proactive move the city must do. The projected annual repayment of the $13 million debt would be $1,136,000 annually - $443,000 principal and $693,000 interest at 5.25 per cent. The city proposes financing the repayment with a combination of user fees and frontage tax increases. Frontage taxes would increase by $1.73 per taxable foot, Cadotte told council. That means a property with 60 feet of taxable water frontage will pay a total increase of $150 toward the project. The increase would be phased over two years in conjunction with the 2008 and 2009 construction period. In 2006 and 2007, such a property would pay $51. In 2008 it would be taxed $103.20 and in 2009, $154.80. Operating and maintenance costs for the water treatment plant are projected at $170,800 per year, starting in 2009. Cadotte reported to council that user fees would need to be increased by $12.67 per cent, with the recommendation that they be phased in over the two-year period of 2008 and 2009. The financial impact proposed would see a residential unit that pays $180.90 in both 2006 and 2007, paying $189.94 in 2008 and $203.83 in 2009. A metered 3,000-sq.-ft. commercial unit paying $241.29 in 2006 and 2007 would pay $253.35 in 2008 and $271.87 in 2009. Coun. Chad Eliason also expressed his support for the project, noting the importance of water quality and meeting Interior Health standards. Council passed the loan authorization bylaw unanimously.
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