Sage Mesa Water System Community Conversation October 30, 2024
Updates
Utility Acquisition Assessment Process
The Regional District has received expression of interest letters from Sage Mesa Water and Public Service Co. Ltd to sell the water system to the Regional District. This utility is located in Electoral Area “F” on the west side of Okanagan Lake.
The Regional District has a Water and Sewer Utility Acquisition Policy that outlines specific activities for the transfer of utility systems. In order to capture and coordinate all acquisition aspects, the acquisition assessment process for the services is complex and methodical.
In January 2023, the Regional District and Sage Mesa Water and Public Service Co. Ltd entered into an agreement to explore the transfer of this utility ownership.
Successful completion of this transfer includes the initiation of due diligence for the Utility Acquisition.
The following outlines the Acquisition Assessment schedule;
- February 2023: Board approval to proceed with the acquisition process
- April 2023: Background information collection
- June 2023: Consultant hired to complete first main milestone: Engineering and Financial Assessment
- December 2023: Draft report review and revisions underway
- July 2024: Engineering Report finalized and presented to RDOS Board
- October 2024: Service area creation and borrowing bylaws received 3 readings at the Board and assent process was initiated
With direction to begin the assent process, where the public votes on the RDOS taking over the utility, public engagement is initiated.
The meeting scheduled for October 30, 2024, will be the first of several events in the coming months to discuss the assent process and financial implications, and answer questions.
FAQ
- If the assent of the voters is received, what does the rollout look like
- If the assent of the voters is not received, what happens?
- Where do the grants come from and what is the likelihood of a successful application?
- Is the RDOS aware of other water systems around the province that may also be seeking grants?
- If assent is not received, would Interior Health (IH) place pressure on the province to make improvements to the water system?
- When would property taxes increase if the assent is received?
- When would residents see improvement in the quality of their water?
- Can projects be made “shovel ready” without first committing to acquiring the system and the loan authorization bylaw?
- Can the availability of grants be more certain before residents have to agree to the loan amount?
- When the Sandstone subdivision was constructed, was the developer supposed to pay for a replacement reservoir?
- Is there currently a reserve fund for the system?
- What is the private owner’s responsibility?
- When West Bench was taken over by the Regional District, was the RDOS successful in obtaining grants?
- Is it possible to just connect to the City of Penticton’s water system instead of going through an assent process?
- Why is the reservoir replacement a priority?
- Would the service area be the whole of the Sage Mesa water system or just a part?
- Is there an opportunity to look at the construction of a sewage disposal system at the same time as water system upgrades?
- Would a new reservoir improve water pressure?
- Who currently performs the water testing?
- Would Interior Health pressure the province for improvement when they see poor results?
- What was the cost of the final report submitted by McElhanney regarding the engineering and financial assessment of the Sage Mesa water system?
- Page four of the McElhanney report recommends connecting to the Penticton water system as the most cost-effective. Why is the RDOS now introducing Penticton Indian Band (PIB) into the equation after the report has been completed?
- Would grants awarded to PIB, only cover upgrades to reserve infrastructure?
- Is following the recommendations from McElhanney’s report the most cost-effective option?
- Has there been an engineering report completed on the costs of upgrades to the PIB water system?
