One Final Debate On Water Rates

Vernon, BC, Canada / 1075 Beach Radio Vernon Pete McIntyre March 08, 2018 05:26 pm
The Greater Vernon Advisory Committee has given final approval to this year’s water rates.Most customers will see 2.9 percent hikes, while agriculture rates will rise 3.7 percent. Director Bob Spiers felt the increase was higher than it needed to be.“We’re putting an extra million bucks into reserves. That means the water rates have been increased unduly,” Spiers told CJIB News. Director Jim Garlick said most water customers don’t agree with using one percent of the increase for the master water plan, and he feels more emphasis should be put on getting senior government grants before MWP projects proceed. “Moving forward, we’d be foolish to fund master water plan projects on rate increases. We need to have a plan in place to get more grants,” said Garlick. Part of the master plan calls for securing at least two-thirds funding from senior governments before proceeding. Supporters of the increase say building-up reserves reduces the uncertainty of water-use fluctuations from year to year. “When you look at the water rates, you never know how much water you are going to use, and there’s a balance there. You have to maintain the infrastructure, but putting money away for the future master water plan, it’s not a bad thing,” says GVAC director Akbal Mund. The rates are scheduled to go up a similar amount for the next two years.
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• This was a rate decision for the Calendar years 2018, 2019, and 2020.
• Each year for next 3 years will see a 2.9% increase for all domestic customers. Rates will change from being implemented April 1, 2018 to be effective Jan 1, 2019 and Jan 1, 2019.
• Ag Rates will increase by 3.7% for 2018 1nd 2019 and then revert to a 2.9% increase on Jan 1, 2020.
• The Water budget indicates $998,000 will be transferred into reserves in 2018.
• Water Rates Vote at GVAC was 5 to 3. Will have to be ratified at RDNO at next meeting.
• WATER RATES  CAN BE FOUND AT P.24-26

 https://rdno.civicweb.net/document/88919/180214_RPT_GVAC_Re_Rates_and_Fees_Bylaw_2768.pdf?handle=7FB106CE7F90451C8E9E7681A8312EA6

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Water Calculators for 2018 to 2020 at:

1.  2018 https://docs.google.com/spreadsheets/d/1nnItofUqHBkL8mKea_eEcAq-nK3LBa7EVSFqANPjmzw/edit#gid=0
2. 2019 https://docs.google.com/spreadsheets/d/13lx3qhNoCJv7DWBeppimTaqfQg4nsZzc3PRWUY71FFQ/edit#gid=0
3.  2020 https://docs.google.com/spreadsheets/d/1ryXTidYa0fglnPDnS1OWgmfdmK0uyfjfnVtZYd_Jszg/edit#gid=0

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WATER POLL AT 1075 BEACH Radio: Final Results

Do you agree with G-VAC raising water rates by an extra one percent to build-up reserves for future water needs?

• Yes (12)
• No (51)

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Water plans put to public

by Richard Rolke - Vernon Morning Star posted May 29, 2015 at 1:00 AM
The public will play a role in the future of Greater Vernon’s water utility. The Greater Vernon Advisory Committee voted Thursday to form a public committee to review information and provide feedback on the master water plan. “It can create frustration in the public if we stonewall. We need to start the process,” said director Jim Garlick. The committee could consist of various stakeholders, such as large water users, and possibly individual residents. “It’s important that with the concerns we are hearing from the public, that they are addressed,” said Juliette Cunningham, chairperson. GVAC’s handling of the utility, and long-term planning, has generated significant criticism among some residents, particularly since a $70 million borrowing referendum was defeated in November. Also on Thursday, a decision was made to investigate a communications strategy for the master water plan. The goal would be to keep residents up-to-date on any actions taken and any changes to the plan. “We need to draw people in and make them interested,” said Garlick. A number of possible objectives have been identified, including meeting water quality standards, the community’s ability to manage capital costs, current daily and projected demand by source and classification, maximizing quantity of supply and minimizing the use of treated water by agricultural customers. “Yes there is a cost to putting treated water on crops but there’s also a cost to not putting it on crops and that’s separation (of pipes),” said David Sewell, Regional District of North Okanagan chief administrative officer. Director Gyula Kiss insists one issue is paramount above all others. “What is the most secure water source at the lowest cost for treatment?” he said. Kiss wants domestic use to switch from Duteau Creek to Okanagan Lake, but some staff question that concept. “We have not done any water quality studies on the north end of Okanagan Lake,” said Dale McTaggart, general manager of engineering.

Farm Sparks Water Debate

Posted on 4/2/2015 by Pete McIntyre 107.5 KISSFM
Local politicians debated the pros and cons of providing water to properties outside Greater Vernon's boundaries at today's Greater Vernon Advisory Committee meeting. In the end, an 80,000 tree apple orchard in Spallumcheen was allowed to buy two hectares of water allocation. The farm will be supplied with potable water from the Duteau Creek Plant. Director Jim Garlick says they need to have an overall plan for extending the boundaries by talking with neighboring communities. "And that is water that is not treated or treated for industrial or for agriculture, and what we should be doing is involving them and bringing them into the plan so they can plan for it, and we can as well," Garlick tells Kiss FM. Garlick says he's not against expanding the system, but says every time they provide special exemptions, it complicates the master water plan "a little more." Director Gyula Kiss joined Garlick and Bob Spiers in opposition to providing the orchard with water. Kiss is concerned about residents having to subsidize more of the costs to supply a farm with treated water, which in this case, is not in their boundary. "The more we sell (to farmers), the more it has to be subsidized by domestic customers. That's why I can't support it," says Kiss. GVAC also approved extra water allocation for the PRT tree seed nursery on Highway 97 in Coldstream. "The applicant has indicated that they require additional water volume to facilitate projected growth of the business," says Dale McTaggert, general manager of engineering for the Regional District of North Okanagan.
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Don Quixote Note: Full report at page 8-11 of  http://www.rdno.ca/agendas/150402_AGN_GVAC.pdf

http://www.rdno.ca/bylaws/BL_2672.pdf

The applicant already has 6.17 Ha assigned to it. This entitles him to 6.17 x 5500m3 = 33,935m3 of water per annum.  He pays the going farm allocation rate of 66.86 (April 1) per quarter annually. ($267.36) per HA. (4.87 cents per m3) Any water consumed beyond his allocation is charged at a rate dependent upon how much he goes over his allotment. (see table charge).

This applicant was requesting an allotment increase of 2 HA (11,000 m3 maximum) and this would entitle him to pay the 66.86 quarterly fee per hectare  and ensure that the over consumption rate charges would not kick in until he overdrew his allotment.

The allotment charge of 4.87 cents m3 would jump to 30 cents/m3 for the first up to 10% over allotment and to 60 cents/m3 for the 10-30m3 portion etc.

The orchard (despite the article) was not in any danger of not being provided water (he already had 6.17 HA of allocation) but the marginal cost for overuse on his original allocation would have increased if the Board Of Directors does not approve this 2HA increase in allocation.
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Under the proposed allocation increase to 8.17 HA the applicant will pay (8.17X 66.86 x 4 = $2184.98) and will be entitled to use up to 8.17 x 5500m3 = 44,935 m3.  (4.86 cents per m3)

If proposed allocation increase was not allowed and the applicant used the full 44,935 m3 (i.e 44,935-33935 =  11,000m3 over  current allocation)   the charge would be:  6.17 HA x 66.86 x4= $ 1650.10 base  + 3,394m3 x .10= $339.50 + 6786 m3 x .60 =$4,071.90  + 820m3 x 1.22 = $1000.40.  TOTAL  $7,061.90  (15.71 cents/m3)