Water Devolution Benefits Vernon Water Users

City of Vernon
DATE: September 9, 2009
FOR IMMEDIATE RELEASE
MEDIA CONTACT: Liz Williams, Media Liaison
TELEPHONE: (250) 550-3539
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Water Devolution Benefits Vernon Water Users

A recent news article in the Morning Star regarding the current Water Arbitration Process reported an assumption that legal fees arising out of arbitration will reach $1 million. To dispel any alarm that this exaggeration might have given area tax payers, the City of Vernon wishes to confirm that the costs of arbitration to date have been moderate and within reason. If, however, Coldstream Council and Areas “B” & “C” continue to keep the water devolution issue in arbitration for a prolonged period of time, legal costs will continue to grow for all jurisdictions involved. Of particular note to Vernon tax payers, however, is the reassurance that, with $3 million in annual subsidization savings at stake, any further legal costs incurred will be a small price to pay to resolve this important issue.

As arbitration continues, Mayor Wayne Lippert expresses 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 since 2006. By bringing water distribution back to the City, we’ll be able to maintain our eligibility for government grants for water infrastructure, provide a more accountable water utility service, protect Vernon residents’ financial interests and respond much more efficiently to people’s needs.”

It is important that Vernon water users understand the benefits of water devolution, which are the following:

Lower water rates for Vernon water users
Customer accountability
Improved and timely coordination of customer service
Significant and positive changes to service governance
Significant and positive changes to the administrative structure
Coordination of capital and replacement water infrastructure projects
A saving of $3 million annually in subsidization of other jurisdictions

The City of Vernon has, all along, proposed water devolution for a number of sound reasons. The GVW issues were first raised by Vernon in June, 2006. By November, there was agreement among the participants on how to move forward, which included devolution of water distribution. Within weeks, however, Coldstream Council and Electoral Areas “B” & “C” reneged on this agreement. By February, 2008, prior to Vernon’s giving withdrawal notice to the Ministry of Community Services, the GVW participants attempted to resolve the water utility issues that had now dragged on for more than 18 months, but in the end, were unsuccessful.

The City had originally 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. Since the establishment of the Greater Vernon Water Service, Vernon water users have paid in excess of $3 million each year to subsidize discount water rates for irrigation in Coldstream and Areas “B” and “C”. With savings of this magnitude, the City will be in a position to provide benefits to Vernon water users, AND through its ability to increase it’s capital works budget for infrastructure projects - the entire community.

For further information, please contact:
Leon Gous, CAO
(250) 550-3515
lgous@vernon.ca
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Don Quixote Note:
Coldstream's Position on Water Devolution can be found at WATER DEVOLUTION ARBITRATION

Distribution of water provided through Greater Vernon Water Service is currently subject to arbitration to resolve the terms and conditions of a withdrawal from this water service filed by the City of Vernon. The three partners in Greater Vernon Water - Regional District of North Okanagan, City of Vernon, and District of Coldstream - have submitted their position papers to the arbitrator for a decision.

As noted in the attached Statement of Position (550Kb PDF) of the District of Coldstream, Coldstream's key objections to Vernon's proposal for water devolution are Vernon's claim of subsidization of its more rural partners and the potential for significant increases in water rates for Coldstream customers, particularly impacting agricultural users. Additional issues and objections are identified on pages 68 in the Statement of Position.