Sue McKortoff celebrates after being elected as the new mayor of Osoyoos by a landslide. With 1,285 votes, she was nearly 1,000 votes ahead of second-place finisher Ray Vandenberg. McKortoff, who served as a councillor on the last council, is the first female mayor of Osoyoos. (Richard McGuire file photo)
Council must approve referendum or AAP if senior government funding isn’t provided for project
The Town of Osoyoos’ chief administrative officer is confident the community will be able to access more than $3.44 million from senior levels of government to pay for the largest infrastructure project scheduled for construction in 2015 in our community – a major upgrade of the town’s main lift station
Barry Romanko told Mayor Sue McKortoff and members of town council that the application deadline is quickly approaching for the town to access almost $2.3 million from the New Building Canada Fund – Small Communities Fund Program.
A second deadline to apply for more than $1.046 million from the Federal Gas Tax Strategic Priorities Fund is set for the middle of April.
Romanko said the federal and provincial governments are investing up to $218 million under the New Building Canada Fund – Small Communities Fund to support infrastructure projects in communities with a population of less than 100,000 people.
The federal and provincial governments will each contribute up to $109 million of the total program funds, said Romanko.
“Applications for funding will be evaluated on the extent to which the project meets the following program objectives – they include economic growth, a clean environment and building stronger communities,” said Romanko.
It is expected there will be more projects that qualify for funding than there are program funds available. As a result, projects will be ranked according to the extent to which they meet the program’s objectives and the eligibility requirements, he said.
The application deadline is Feb. 18.
A detailed main lift station design brief has been prepared by the town’s engineering firm, True Consulting, and will act as the main technical support document to the project and grant application, said Romanko.
The design brief provides a detailed analysis of three options and all three options were provided to illustrate the potential funding sources and that an intense analysis of options has taken place, he said.
Letters of support will be sought from other users of the town’s sewer system, including the Osoyoos Indian Band, Canada Border Station, U.S. Border Station, Regional District of Okanagan-Similkameen and the provincial government (Haynes Point Provincial Park).
“Applicants must demonstrate that their share of funding has been or is being secured,” said Romanko. “Further, they must demonstrate, where applicable, that funds have been committed to operate, maintain and plan for replacement of the capital assets resulting from the project during its life cycle,” said Romanko.
To be eligible, town council must pass a resolution or bylaw committing to its share of eligible project costs and must identify the source of the proponent’s share of capital costs, he said.
“Applicants must demonstrate that their share of funding has been or is being secured,” said Romanko. “Further, they must demonstrate, where applicable, that funds have been committed to operate, maintain and plan for replacement of the capital assets resulting from the project during its life cycle.”
Town of Osoyoos CAO Barry Romanko
A council resolution committing to complete an Alternate Approval Process (AAP) and bylaw to authorize the borrowing of funds or commitment to hold a referendum to borrow the necessary funds is also part of the process, said Romanko.
The AAP bylaw or referendum must be completed within six months of receiving approval of federal funding for the project unless an extension has been approved by the program director, he said.
“Given the importance of this project to the community and the funding limits that are available, previous discussion by council recommended that this project be submitted to the Small Communities Funding Program and the Federal Gas Tax Strategic Priorities Fund,” he said.
The lift station is the heart of the town’s sewer system and handles 95 per cent of the waste effluent that is handled at the town’s lagoons, he said.
The community needs to ensure that this asset is secure from failure due to asset depreciation.
“Failure of this part of the system would result in sewer flows into Osoyoos Lake,” said Romanko.
The overall budget estimate for the main lift sewer upgrade is $3.440 million.
The grant application needs to be in the amount of $2.293,333 and sewer operating and reserves will provide the remaining needed amount of $1,046,667.
“If grant funding is not received, the only other source of funding will be borrowing, which will require the borrowing bylaw actions of the AAP or referendum,” said Romanko.
Council unanimously passed a motion that directs the administration to apply for federal funding and that the $1.046 million be allocated from sewer operating and reserve funds.
Council also directed administration to make an application to the Federal Gas Tax fund prior to the April 15 deadline to enable the sewer main lift upgrading project to proceed.
McKortoff, who was a member of the previous council before being elected mayor in November, said that council identified upgrading the main lift station as top priority and it would be foolish not to apply for grant funding from senior levels of government.
“This is something we desperately need in this community right now,” she said. “We may even have to proceed with this project even if we don’t get any grants … but we are fairly confident we will receive this grant money.”
McKortoff said the complete report by True Consulting is available on the town’s website.
If the town is successful in getting the full amount of federal funding and gas tax money being asked for, it would pay for the entire cost of the main lift station upgrade.
McKortoff and the four town councillors will be discussing this project and dozens of other major capital projects when 2015 budget deliberations begin next week at town hall.
It will be the first budget process for new councillors Jim King, Carol Youngberg and Mike Campol.
The 2015 draft budget document will be presented to town council during its first budget meeting, which is set to take place in the middle of next week.
KEITH LACEY
Osoyoos Times
