Rate hike on tap

Richard Rolke - Vernon Morning Star Published: January 20, 2011 6:00 PM
Turning on the tap is going to cost more in Greater Vernon.  On Wednesday, the Greater Vernon Advisory Committee proposed to increase water utility rates for all categories, including 20 per cent for the average single-family residential home.  “We need to educate the public that this isn’t expensive,” said director Mike Macnabb.  “We have been undervaluing this commodity for years.”  The quarterly residential base fee could go from $50.15 to $66.20. If the rate is ratified by the North Okanagan Regional District, the average residential bill will go from $480.58 to $579.70 a year.  “The increase is to cover our fixed costs which are 80 per cent of our costs,” said director Jim Garlick, pointing out that the Duteau Creek water treatment facility is now fully operational.  “Everyone who has a tap needs this plant. We need to pay towards the flat rate.”  GVAC is also preparing to meet Interior Health Authority guidelines such as filtration. The base fee does not include the initial use of 20 cubic metres of water. After the base fee, water will be charged based on consumption. Director Gyula Kiss, who voted against the rates, is concerned the higher flat fee will be unfair for people who use less than the average amount of water.  “Low users, people on fixed incomes, will pay a huge amount,” he said.  As a way of lowering rates, Kiss insists money should not be put aside in capital reserves and as funds are required for major projects, a borrowing referendum be held.  “The current customer should not be carrying the weight for future development,” he said.

Wayne Lippert, GVAC chairperson, doesn’t believe the proposed rates are out of line when compared to other communities.  “In Area C (BX-Silver Star), there is a private water utility with a $600 flat fee, restrictions to the hilt and they’re on a boil water advisory,” he said.  A GVAC survey of other communities shows that compared to the average bill of $480.58 in Greater Vernon in 2010, the cost was $577 in Kamloops, a minimum of $352.25 in Salmon Arm, $467 in Lake Country (unmetred homes), $431.10 in Westbank, $686.28 in Summerland, $387 in Penticton, $466 in the Southeast Kelowna Irrigation District and a minimum of $325.94 with the City of Kelowna utility. Rates have not been set in other jurisdictions for 2011.  The NORD board will consider the new rate structure as part of its 2011 budget process, which will be completed by March 31.
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Public gets say on water rates Richard Rolke - Vernon Morning Star Published: January 20, 2011 6:00 PM
Soaring water rates in three North Okanagan communities are on hold so residents can provide input. The North Okanagan Regional District has held off on the adoption of new utility fees for Grindrod, Mabel Lake and Whitevale so discussions can be held with customers.  “We will have public information meetings with residents in those communities,” said Arnold Badke, engineering general manager.  Domestic water fees could climb 99 per cent in Grindrod, while it could be 20 per cent in Whitevale, near Lumby, and 14 per cent at Mabel Lake in the Kingfisher area.  “I’m definitely hearing from Grindrod residents,” said Herman Halvorson, rural Enderby director.  The proposed bylaw could see rates in Grindrod go from $226 to $450 a year.  Officials say the increase is needed to pay for the treatment plant, repair equipment, update the computer system and cover increased costs for electricity and chemicals.  There will be a meeting Feb. 4 from 4 to 6 p.m. at the Grindrod Community Hall. “The hall will probably be too small,” said Halvorson of the anticipated crowd.  For the Mabel Lake utility, rates could climb from $234 to $266 a year.  An information meeting for that utility will be held Feb. 4 from 2 to 4 p.m. at Enderby City Hall.  In Whitevale, the average residential rate could go from $452 to $544 a year.  Rick Fairbairn, rural Lumby director, says there is a need for the Whitevale utility to prepare for new regulations coming from the Interior Health Authority.  “There are operating procedures that must be implemented,” he said.  Fairbairn admits an increase could hit some residents hard.  “Water rates have been very competitive over the years and as time goes on, water is a critical part of life in the Okanagan. We need to have systems in place to ensure the resource.”  The Whitevale meeting will be held Feb. 10 from 6:30 to 8:30 p.m. at Cedar Bridge School.  NORD has adopted a bylaw increasing rates 31 per cent at Silver Star. The residential rate will go from $476 to $625 a year. Mike Macnabb, BX-Silver Star director, says a public meeting wasn’t held because most Silver Star residents know they have to pay for upgrades.  “We have no option,” he said. “There is costs with the Vance Creek reservoir and with ultraviolet treatment. There are also some additional works and we’re looking at our financial reserves because things (equipment) will wear out.”