Council Initiative – Subject to Petition Against process proceeds for Rose Valley Water Local Area Service

West Kelowna Council has endorsed a process for the City to determine if there is sufficient petition against from Rose Valley Water Treatment Plant (RVWTP) property owners to use long-term borrowing of up to $23.5 million for the plant’s design, construction and financing. This process also establishes the new RVWTP Local Area Service (LAS) that includes the water service areas of Pritchard, Lakeview (local Rose Valley), Sunnyside and West Kelowna Estates.

Once operational in 2022, it will be one of the most significant infrastructure projects delivered by the City of West Kelowna.

“The Rose Valley Water Treatment Plant remains Council’s top priority project and the decision of Council to proceed with a long-term borrowing recommendation is another positive step forward to opening day in 2022,” says Mayor Gord Milsom. “Long-term borrowing reduces high short-term payments to users as we continue to look for ways to minimize the hardships some may be experiencing from COVID-19.”

“Council also expresses its gratitude to the Government of Canada and the Province of British Columbia for the $41 million grant that was extended under the Clean Water and Waste Water Fund,” says Milsom. “Without their support we would not be where we are today. This plant will serve more than half of our community, and we very much look forward to celebrating with our government partners and our community as we work to provide clean, safe and reliable drinking water in 2022.”

Future RVWTP users currently pay $116 per year toward the plant. In 2022, the amount required to repay long-term borrowing will be $150 per year or less. That planned increase of $34 over two years will then stop and no further increases will be required during the 25-year borrowing term. Further, the $150 will be taken off users’ utility bills and be transferred into a parcel tax, which allows eligible users to defer the tax. This high-capacity plant will enable the City, as a water service provider, to meet the needs of the growing West Kelowna community for generations to come without high short-term costs.

Council approved a Council Initiative – Subject to Petition Against process, particularly during the COVID-19 pandemic, given that this is a legislative mail-in process in the Community Charter. The process will inform Council if there is sufficient petition against long-term borrowing from future RVWTP property owners. This method would require at least 50 per cent of all RVWTP property owners representing at least 50 per cent of the local area service property value to sign and submit the written Petition Against form to the City within the 30-day period.

The timing of the 30-day period is anticipated to occur in August/September 2020, subject to Inspector approval with the Minister of Municipal Affairs and Housing. RVWTP local area service property owners will receive a legislative package in the mail, which will include the Petition Against form that property owners would submit to the City should they object to the long-term borrowing. Alternative options such as short-term borrowing and one lump-sum payment were not endorsed by Council, as it would result in much higher short-term costs for all RVWTP users.

For RVWTP local area service property owners who are in favour of long-term borrowing, no action is required.

Staff will also be providing details about how the annual $150 fee will be removed from their water utility bill and transferred into a parcel tax in 2022.

Property owners will also be able to pay a one-time lump sum of $2,815 in 2022 if they prefer not to use long-term borrowing.

The legislative package will be mailed to future RVWTP property owners later this summer.

This process does not affect Powers Creek Water Treatment Plant users, nor does it affect Westbank First Nation water users.

For more information about the project cost, borrowing and process, including background about the Federal and Provincial Canada Infrastructure Grant and a GIS map of the RVWTP local area service, please visit the project webpage at westkelownacity.ca/rvwtp.

Future RVWTP users are also encouraged to subscribe to receive e-updates at westkelownacity.ca/subscribe.