City optimistic about $10m sewer grant (Penticton)

Penticton Herald Staff Tuesday, December 16, 2008

The City of Penticton is eyeing a possible $10-million senior government grant for the upcoming $30-million sewage treatment plant expansion. Mitch Moroziuk, the city‘s director of engineering and development services, told city council Monday an announcement on the city‘s application is expected by the end of December. “We have been receiving successful consideration to date and there is an expected announcement by the end of the year,” he said.
The city has applied for funding under the Gas Tax and Innovation Strategies program through the Union of B.C. Municipalities. An earlier application for two-thirds federal-provincial funding under the Canada-B.C. municipal infrastructure program was rejected in April. However, Penticton did secure a $10,000 grant for an energy recovery study.

Last March, council approved borrowing the first $15 million for the project, which will be funded through an average $72 per household increase in sewer rates. City treasurer Doug Leahy said if the $10 million grant is received, the city will likely not have to borrow a further $9.6 million which was approved by council in September. Meanwhile, council voted unanimously Monday to award an $879,000 contract (including provincial sales tax) to Aqua-Aerobic Systems Inc. to supply effluent filters for the plant. The Illinois-based company had submitted the lower of two tenders received. The city had budgeted $1.2 million for the equipment. Detail design work on the project is now underway, with construction due to begin next June and be completed by 2010. Moroziuk said the upgrade will replace existing equipment in risk of wearing out and include upgrades to greener technology. In addition to the $21-million upgrade of the 27-year-old plant, project funding includes $6 million for a lift station, mains and effluent lines in the south end of Penticton. The city earlier this year reached an agreement with the Penticton Indian Band to extend sewer service to band lands on the west side of the Okanagan River Channel. The band will contribute capital and operating funds for the project.