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The Regional District of North Okanagan will be seeking voter assent for an $18 million loan.
If approved, the money will go towards the estimated $85 to $100 million update to the Mission Hill Water Treatment Plant to add a filtration system – the plant currently treats drinking water from Kalamlaka Lake.
At the meeting, RDNO general manager of utilities Zee Marcolin, explained the need for the update saying Kalamalka Lake is seeing a lot more algae. She said there’s recently been two significant blooms, one in the fall – a season which doesn’t normally see algae - and the second in June.
“We have started planning to quickly have to shut down the intake in the summer, and it will have crippling water restrictions for the City of Vernon and it will put the entire system on boil water,” said Marcolin. “You can’t wait.”
According to a staff report, the filtration update is needed to meet Interior Health water quality standards. Filtration would target particulate removal and reduce suspended solids, turbidity, colour, taste and odour.
Directors agreed at Wednesday's meeting to implement a financial strategy for the project, which includes seeking public assent through an Alternative Approval Process for the $18 million loan authorization bylaw.
In an AAP, only people opposed to the proposed borrowing would need to vote – so long as less than 10 per cent of the population shows up, the borrowing is approved. If 10 per cent or more vote no, the borrowing would fail.
For the approved financial strategy, the RDNO will also be paying off an outstanding debt early to help mitigate the impact of the new loan. RDNO will begin drafting the loan authorization bylaw to go to AAP, and move forward with detailed design and obtaining major equipment for the project.
Aside from potentially borrowing $18 million, the RDNO plans to pay for the project with a $30 million grant from the feds which has already been secured. Remaining funds needed will come from the RDNO Greater Vernon Water reserves which have a combined $37 million ready to contribute.
If the project ends up costing closer to $100 million, the RDNO can pull funds from other reserves which will give a combined $24 million.
