Excellent water ROI

In response to a letter by Mr. Graeme James (Clean, clear water) published April 18, the City believes its $115,000 spent to receive almost $44 million in senior government funding represents an excellent return on investment. In fact, it’s unprecedented.
 
The value planning “workshop” was a condition of receiving senior government grants. The City and SEKID each invested this amount recognizing the potential benefit of a grant to South East Kelowna residents.
 
Thanks to senior government funding, ratepayers in the South East Kelowna Irrigation District are now paying less than 20 cents on the dollar to receive clean drinking water. In contrast, Glenmore Ellison Irrigation District’s relatively small ratepayer base is paying the entire $18-million cost of gaining access to Okanagan Lake and building a UV treatment facility to replace its open-surface McKinley Reservoir.
 
In 2010, the City of Kelowna proposed providing drinking water to GEID from the City’s existing Poplar Point intake – an option that potentially could have provided GEID ratepayers with the opportunity to access senior government funding as well. 
 
In our view, the most affordable water system comes from the City of Kelowna’s ability to access to senior government funding and the ability to spread capital costs over a larger population. The City is also reviewing options for equitable agriculture irrigation rates in preparation for the integration of SEKID.
 
The City and South East Kelowna Irrigation District each paid $115,000 for the Value Planning exercise required by the provincial government. The VP study was the final step agreed upon for the Kelowna Integrated Water Supply Plan, with all local water purveyors signing on to the terms of reference.
 
Unfortunately, after initially agreeing to fund and participate in the planning exercise, GEID, Rutland Water Works and the Black Mountain Irrigation District chose not to attend at the last minute. 
 
Lastly, contrary to statements in the letter, domestic ratepayers in the GEID who use an average of 41 cubic metres per month pay almost 30 per cent more than those in the City of Kelowna water utility. Heavy domestic water users in the GEID would see the cost inequity between the two systems widen even further because the GEID’s large volume rates are higher than the City’s and kick in sooner. 
 
The Value Planning has created a framework for moving forward.  It is hoped the other major Irrigation Districts, including GEID, will participate in future planning exercises to ensure the best lowest cost city-wide solution is delivered over time regardless of the current boundaries.

Ron Westlake
Integrated Water Project Manager
City of Kelowna