The cost to bring the 753 Water System to an “acceptable level” would cost $866,000 spread over seven years, according to a presentation by Opus International Consultant engineer Clive Leung on May 8.
The top three costs of the system amalgamation capital upgrades plan includes the installation of 37 new hydrants, installing 210-metres of 200mm water main on challenging terrain and installing a pressure-reducing valve station. They would cost $349,650, $240,975 and $155,250 respectively. If the District amalgamates that water system, it would cost $48,484 per year in maintenance.
Leung also highlighted the $5.48 million renewal cost for the 753 system. He defined that cost as what the District has to set aside for the replacement of all assets. The 753 reservoir itself has about 15 years of useful life left, while the 150mm water mains have 40 years.
Chief administrative officer John Fortoloczky added that council could also decide not to amalgamate the system, and if the owners go bankrupt, the provincial water comptroller will take over it.
Council could pay for the upgrades by taxing residents, whether just users of the 753 system or all residents. According to operations supervisor Kevin Dicken, there are about 137 households on the system. The average cost per household for the upgrades would be $6,321.
The District could also demand the owners of the system do all the upgrades to the District’s satisfaction, although Fortoloczky warned that they likely do not have the money. Another option would be to establish a special service area whereby the customers of the system agree to borrow money. Grants are possible, but he warned that Hope might not qualify.
The implications for having a water system not up to par is that it limits growth in the Kawkawa Lake area, where it services.
“As a standalone system, the 753 system cannot accommodate any future development, so there have been scenarios where developers have come forward and they haven’t been able to pursue based on that,” said Dicken.
Costs on the new fire hydrants could be reduced, if the current ones prove serviceable, however records assuring that is lacking. Dicken said the most recent records he could find dated back to 2005 and only accounts for a portion of them.
“So we don’t know what’s happened over the 11-12 years to them, some of them, I’m sure have not even operated,” said Dicken, who suggested that the District could request a report on the state of the current hydrants from the owners of the system.
Coun. Gerry Dyble wondered who would be liable if a fire disaster could not be helped because of a misfunctioning hydrant. Dyble further said the water comptroller has not shown responsibility in overseeing the 753 water system.
“I’m feeling like 753 owners are sort of getting away with 35 years of collecting and they’re not being responsible of accountable for anything, and neither is the comptroller. It’s all back to the District,” said Dyble.
Coun. Donna Kropp also wanted to know if the comptroller will take over the system if the District does not, whether they will upkeep the system and how development can happen there.
Council passed a motion to allow Fortoloczky to work with Mayor Wilfried Vicktor to set up ministerial investigative meetings.
“Quite frankly, the water comptroller does not have money for a lot of this, and it’s the minister that does, and whoever forms the next government, we should make them alerted to this,” said Fortoloczky.
