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Moving Forward: A Plan of Action for Improving SEKID Water Quality

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The South East Kelowna Irrigation District (SEKID) is taking another step in the move toward meeting mandatory provincial water quality standards and ratepayers' demands for higher quality water.

Taking into account the feedback received from ratepayers since the Water Quality Improvement Project (WQIP) was introduced in 2012, trustees have developed a feasible funding plan that doesn't require borrowing by constructing the new system in two phases.

Compliance Requirements

As stated during the 2012 campaign and in subsequent newsletters, updates, and media reports, compliance is not an option. Water delivered to SEKID customers for domestic purposes must meet provincial health standards and conditions required by Interior Health for an operating permit. The WQIP will provide water users with a safe, clean and reliable supply that meets all regulatory standards and requirements.

SEKID is still actively pursuing other sources of funding. Should government grants become available, they will be used to accelerate the project and could help reduce rates.

Community System

The new community water system will supply treated groundwater (well water) for domestic use through a new delivery system, and untreated surface water for agricultural use through the existing distribution network. All domestic connections will be metered, as are all agricultural connections now.

Cost & Scheduling

The estimated cost of design and construction is $23.7 million for both phases. Construction on Phase 1-which includes the higher-density McCulloch corridor, Gallagher's Canyon and Hall Road areas-will begin in 2017 and is slated for completion in 2019. Phase 2, which covers the less-populated rural areas, will begin when Phase 1 is finished, with completion expected in 2033.

Water Rates

This non-borrowing solution that relies on existing reserve funds, revenue from land sales, tolls, taxes and a new water quality levy that will cover the majority of WQIP costs.

What would the average water bill be?

The quarterly water billing cycle effective July 1st for a single-family dwelling in Phase 1 will be $202.95 plus the yearly water tax of $79.20 per acre or parcel.

Water Quality Levy

The new monthly water quality levy will be staged, starting with Phase-1 properties and then followed by Phase-2 properties until the project is complete.

Phase-1 Levy

  • Starting July 2015, Phase-1 properties will pay $20 per domestic unit per month until 2024. The Phase-1 levy will be reduced to $10 per month in 2024 until the project is complete.

Phase-2 Levy

  • The Phase-2 levy would be applied when Phase 1 is complete, at a reduced rate of $10 per unit until that unit is on the new water system. Once Phase-2 properties receive new water, they will pay the same levy as Phase-1 properties until the project is complete. Any Phase-2 properties that have not received new water by 2024 will have the levy reduced to $8 per month until they receive new water.

Hall Road Levy

  • Phase 1 includes Hall Road customers who currently receive well water, however, their system does not comply with regulatory requirements and must be updated as part of the WQIP. This well water supply is 'interruptible,' meaning that if the well shuts down, or if there is a fire in the area, affected residents would then receive water from Hydraulic Creek, which does not meet provincial health standards. This area will continue to receive water from the existing well on O'Reilly Road until the new system is developed in 2017, and then the well will be shut down. The levy that Hall Road users pay now will be eliminated July 1st, 2015 when the whole district comes under the new WQIP community system. The new levy will be $20 per month starting July 1st, 2015.

Commercial Levy

  • Phase-1 commercial customers, on the monthly billing cycle, will pay the $20 per month levy per connection in addition to their regular flat-rate or consumption-based bills.

Water Tolls

Tolls will continue to increase 5% per year until both phases are complete. This works out to about $2.30 more per month in 2015.

Water Taxes

The annual water tax will also continue to increase 5% per year to the end of 2020, then decrease to 2% per year until the project is complete. This works out to about $3.80 more for all of 2015.

How do SEKID water rates compare?

The planned average rate for a typical SEKID residential user is $74.25 per month. By way of comparison, average monthly rates in the Okanagan range from a low of about $40 per month to a high of about $130 per month. Given the nature of SEKID’s source and distribution characteristics, the planned rate structure can be considered very reasonable.

 

Quick Links:

April 2015 Newsletter FAQ
September 2012 Newsletter Water Rate Review
Water Supply and Treatment: Summary Report Tech Memo 1
Tech Memo 2 Tech Memo 3
Pre-Design Report: Groundwater Supply System Hydrogeological Report
Phase 1 Address Lookup

 

 

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