All's Quiet on the Western Front. (For Now)

At the GVSC meeting this morning after raucous debate and some suggestions that some of their fellow members were incapable of understanding what a 'contract' was and the history of why such a contract for the water Nor the parks functions have yet been signed for over 5 years, the question was demanded to be called by Vernon's Mayor Wayne Lippert and was passed by a 5-2 vote. The 3 Vernon Reps joined with the 2 Coldstream reps to fend off a deferral motion by the Area B and C reps and then passed the main motion that allowed for a new formula for the overhead Calculation that could be charged by the City of Vernon and the City of Coldstream to the Water Utility function at Nord.

According to the staff report which was the compromised solutions of the 3 CFOs involved (Harris-Nord, Bertles-Vernon and Lord - Coldstream) the City of Vernon will see their allowable overhead charge increase from$541,050 to $733,007 ( $191,957 or 35.47%) and the City of Coldstream will see their allowable overhead charge increase from $102,860 to $162,368 ($59,508 or 57.85%).

These costs will be increased each year by a CPI adjustment for 2009 and 2009 and reviewed in 2010. An amendment to examine this cost indexing yearly by Coun. Cochrane of Vernon was forgotten in the end as the combatants at the table fought with each other over first a tabling motion that would not allow charges to be imposed until the contract was signed and then the main motion on the compromise of the 3 CFOs. In exasperation the main motion was finally called and passed and the sparring between Mayor Lippert and Director Kanester and his fellow naysayer Director Mike Macnabb (fill in for Stan Field Area C) retreated into the recesses of one mind as no more than a fading memory of having watched a schoolyard turf war between elementary school children.

This overhead calculation formula that brings an increase of $191,957 to the City of Vernon is well short of the original subsidy of $716,638 that was the claim of the City of Vernon CFO in his original submission. (Also well short of the recent adjustments of a net $320,667 that has been tentatively put into the 2008 Vernon Budget calculations?) Perhaps this difference between the $320,667 and the $191,957 are the overhead charges that will be allowed to the Parks side of the GVSV Parks and Recreation function and/or additional anticipated that will be gained from the City Claim for development revenue increase or anticipate revenue from their load labour work on planned and unplanned Capital Projects work for NORD ??

The additional $59,508 to be realized by Coldstream in found money could be used to reduce their tax increase for District Taxes by 2%.