City goes to Water Arbitration

Media Release City of Vernon:
News Release Document - 30Kb PDF

Recent news articles regarding the Water Arbitration Process arising from the City of Vernon’s notice to withdraw from the Greater Vernon Water Service require clarification.The GVW issues were first raised by Vernon in June, 2006. By November, 2006, there was agreement among the participants on how to move ahead, which included devolution of water distribution. In February, 2008, prior to giving notice to the Ministry of Community Services, the GVW participants attempted to resolve the water utility issues that had dragged on for 18 months. It has now been over three years since the City of Vernon attempted to have the issues addressed through GVW.

At that time, Vernon City Council opted for the return of responsibility for domestic water distribution to the City. The responsiblity of bulk water would remain with the Regional District, as it does in the Greater Vancouver and Greater Victoria Regional Districts. This is the structure that was agreed to by all participants in November, 2006.

The City’s reasons for giving notice included:

• Significant changes to the service governance and administrative structure that has departed from the City’s understanding of the founding principles;
• Lack of coordination of capital and replacement projects between Greater Vernon Water and the City of Vernon;
• Lack of accountability to water customers in the City of Vernon;
• Limited ability by the City to respond to constituents needs;
• Customer confusion over governance structure and lack of coordination of service; and
• Concern with timely response to developers with regard to on and off site water requirements.


The City turned its waterworks system over to RDNO in 2003, and since then the Vernon water users have shouldered the majority of the cost of the utility. Upon the establishment of the Greater Vernon Water Service, the City users have paid in excess of $3 million each year to subsidize discount water rates in Coldstream and Areas “B” and “C”.

Going into the arbitration process, Mayor Wayne Lippert expressed his hopes for a productive outcome for Vernon residents. “I’m looking forward to getting this issue resolved, which will give us clarification of the governance structure we’ve been looking for. By bringing water distribution back to the City, we willl be able to provide a more accountable service, protect Vernon residents’ financial interests and respond much more efficiently to people’s needs.”