More than 110 people packed into West Bench Elementary School on June 12 to hear that no matter which way they voted on the Sage Mesa water system referendum, they will be paying a hefty bill of up to $33 million.
If residents don't back a referendum for the Regional District of Okanagan-Similkameen borrowing that money, and taking the system over, they could instead see a $21,900 levy as soon as next year, on top of increases to fees to cover higher operating costs.
What was originally scheduled as a one-hour long information session instead stretched over two, with several residents staying behind after it officially wrapped up to speak with RDOS staff and elected officials.
The Sage Mesa water system currently services 242 properties, pulling water out of Okanagan Lake and pumping it up the hillside.
The lower section of the system has been on a permanent boil water advisory for years after an inspection found the distance between the pump-house and the lower section was too short for chlorine to have time to safely disinfect any contaminants.
Interior Health (IH) has held off on issuing an order declaring the system in immediate need of upgrades, which would trigger a massive tax bill. That order, IH environmental health officer Judi Ekkert said, is drafted and signed and ready to go into effect at a moment's notice.
The province has officially managed the system since 1990 after failures by the owners to keep the system to standards, and the RDOS has been contracted out to operate it.
Ownership of the system, however, has always remained with the Chapmans, residents were told, as the province couldn't legally take the ownership of the system away from them.
That didn't stop the province from pushing at every opportunity to hand it over to the RDOS, as that would mean it would open for grants and its policy was not to raise the water rates above what was needed for operations.
The owners, though, every time the province pushed forward with the transfer, refused to sell, up until this most recent push.
That push coincides with the need for up to $33 million in upgrades over the next decade, starting with replacing a reservoir that is imminently facing failure and needs to be replaced by 2027.
Residents were not happy with what they were hearing.
Issues came from multiple angles. Many were frustrated that they were only now hearing about how dire the situation was, some raised how the watermain replacements wouldn't cover their strata development, and many questioned why the province never did the upgrades themselves.
Al Aderichin, principle engineer of utilities with the Ministry of Water, Land and Resource Stewardship, reiterated multiple times that it was always in the residents' best interest, including financially, for the system to be taken over by the RDOS. While he did not state it outright, effectively, he said that the province's plan for the system was always to hand it over and there was no planning or desire to do any projects on the system beyond that.
Many residents were concerned about the amount that they were being asked to sign off on, and questioned whether it would be possible to sign off on just having the referendum for the RDOS to take over the system, and do the borrowing separately.
RDOS CAO Jim Zaffino said that it would not be possible to the RDOS to take over the system without having the money to do the repairs and upgrades, as that would leave the entire RDOS liable if the system failed and put that tax burden on every resident, not just those in Sage Mesa.
One resident raised the possibility of suing the province or the Chapmans, who owned the system, but that was shot down as only costing more taxpayer money for no gain.
West Bench area director Riley Gettens said she emphasized with residents and shared their frustration, and called on them to send their discontent and frustration in emails to her that she could push on in her calls for action from the provincial and federal government.
At the end of the night, the facts were that if the residents don't vote in the referendum for the borrowing and having the RDOS take over the system, Interior Health will issue their order, and the province will begin levying the funds immediately, starting with over $27,000 to replace the reservoir.
With the borrowing, the costs would be spread out over 30 years, and the whole amount wouldn't be borrowed at once, but instead as projects come up.
If the RDOS takes over, the borrowing could also be cut with grants, with an application currently in the works that would provide up to $7 million. That money would be split, between Sage Mesa, however, if the takeover goes through, and the other two private Skaha systems the RDOS recently took over.
Further savings could be made, too, if a feasibility study currently in the works with the Penticton Indian Band on a shared water treatment plant is productive.
About $18 million of the $33 million is for a new water treatment plant, and a joint facility would cut Sage Mesa residents' share of the costs by spreading it out into the PIB and among other West Bench residents.
The RDOS is currently planning to hold another information session for the system in the fall, with a referendum to take place at a later, currently unspecified date.
The recording of the June 12 info session, as well as more detailed reports and findings, are available from the RDOS' regional connections website.
