By Lyonel Doherty
Oliver Chronicle

The Town of Oliver is going big in its funding application to reroute the siphon at Gallagher Lake and upgrade the remainder of the canal.

On Monday, council passed a motion to choose scenario 3, which includes the rerouting project, remediation of the entire canal, and covering the canal at Hester and Tinhorn Creek for a total cost of $19.4 million. The Town’s contribution would be $6.6 million.

After the canal at Gallagher Lake was damaged by a rock slide in 2016, the Town chose a $10 million option to reroute that section along Highway 97 south. 

The provincial government committed $5 million to the project, but nothing was forthcoming from the federal government.

So the Town is now applying for funding through the Disaster Mitigation and Adaptation Fund. But the minimum eligible amount of expenditure under this program is $20 million. Therefore, the Town is expanding the scope of the project to include upgrading the remainder of the canal and capping the section at Hester and Tinhorn Creek to prevent debris from entering the siphon. (Two years ago a mudslide compromised the canal in this area and put it out of commission for a week.)

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The Town looked at three scenarios, the first being the Gallagher Lake siphon construction for $12 million with an $8 million contingency. The Town’s share would be $2.2 million.

The second scenario is the Gallagher Lake project plus remediation of the entire canal system for a total cost of $17.9 million, plus contingency. The Town’s share would be $5.7 million.

Water councillor Rick Machial reiterated what he said recently about not having enough information to see the long-term impact to the Town.

“There are so many numbers. How are we going to make a decision when we don’t know the answers to those numbers? I have a real problem with it.”

Machial said if the Town makes a commitment to apply for this grant and is successful, it will be saddled with $5.7 million in scenario 2.

“We already have $4 million in long-term debt in our water fund, so I really need to know those numbers.” 

Machial wants to see a spreadsheet on how the grant project will impact water rates for users.

“It’s a tough decision to make. That’s a lot of money to burden our town with,” he said.

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Machial referred to an infrastructure grant program that can pay 100 per cent for eligible projects.

Chief Administrative Officer Cathy Cowan said the Town is looking at applying for this particular grant to upgrade its sewer infrastructure to the tune of $4 million. 

“It is in a little bit more dire need of funding as opposed to the water system itself.”

But Machial said the Town definitely qualifies for this infrastructure grant (for the canal repair) because one of the criteria is improved food security.

“I can think of no other thing, making sure our canal improves food security. Without that canal we don’t have food security in our community.”

Cowan said borrowing funds for this project, because it’s not potable water, would require a referendum. She noted if it’s for potable water or sewer infrastructure, you don’t need to hold a referendum.

Councillor Dave Mattes said the Town should be moving ahead and applying for the maximum amount of funds for scenario 3 and then decide exactly how much to use. 

“When I look at the three scenarios, it would be foolish of us to turn down 33 cent dollars.” 

(He noted in scenario 2 and 3, the Town’s contribution would be 33 cents on the dollar.)

Mattes said he would even expand the project by looking at fencing the canal for security and public safety. 

“I think it’s time to secure our asset.”

Mattes made the motion that staff proceed with the grant application for scenario 3. The motion carried unanimously.