OSOYOOS TIMES-October 28, 2009

By Laurena Weninger and Paul Everest – Osoyoos Times

The effort to extend the Town of Osoyoos’s sewage system to the northwest shore of Osoyoos Lake took a big step forward last week.
At its Oct. 22 meeting, the Regional District Okanagan-Similkameen (RDOS) board of directors gave its unanimous consent to the Town’s Northwest Sewer Service Authorization Bylaw, which allows for the extension of the Town’s sewage system to 130 lots on the lake’s northwest shore.
That bylaw was given second reading by Osoyoos town council on Oct. 8 after being rescinded twice to adjust the number of properties which would be serviced by the project.
Council gave the Town’s authorization bylaw third reading at a special council meeting on Oct. 26.
At that meeting, council also gave first and second readings to a new Willow Beach Sewer Service Authorization Bylaw which will give the Town authorization to connect three parcels of land at the Willow Beach property to the Town’s sewer system.
If the owners of the Willow Beach property want to increase the number of parcels to be hooked up to the Town’s system, they will have to make a separate agreement with the Town.
Details of the agreement between the owners of the Willow Beach property and the Town are being worked out, said Barry Romanko, the Town’s chief administrative officer.
While it has been agreed in principle that the sewer extension will service 40 units, the finer details are still being negotiated.
The RDOS has to give consent to this bylaw in order for the Town to proceed with the service provision.
Council also authorized the signing of a contribution agreement between the Province of B.C. and the Town of Osoyoos for a $4.5 million Municipal Rural Infrastructure Fund grant for the sewage project.
The grant had been awarded to the RDOS, but through the planning and design portion of the project it was determined the Town was the best option for bringing the sewer service to the area and the grant money will be transferred to the Town.

CONFLICT CONCERNS AGAINST WELLS RESURFACE

Osoyoos Mayor Stu Wells wasn’t present for any of the discussion or decisions about the sewer project after allegations of conflict of interest were brought up.
As a late item added to the meeting’s agenda, council dealt with a letter from Osoyoos residents Ray Vandenberg and Jean Clarke detailing their concerns that Wells’ participation in motions related to the Northwest Sewer Project are a conflict of interest because he owns property in the area that will be serviced.
“I left today because again the (suggestion) of conflict of interest is out there,” Wells said. “The high road is not to be in the room when this is being voted on.”
But his absence isn’t an indication that he agrees with the accusations.
“I’m playing it on the safe side,” he said.
Vandenberg and Clarke brought up a similar allegation earlier this year.
It was alleged that Wells was in conflict whenever he voted on the proposed sewer project because he is a one-third owner of a house located in the area the project would affect.
The Town’s lawyers identified this issue as having possible grounds for conflict of interest since the property Wells shares title on could gain value from the connection of the Town’s sewage system to the northwest shore of the lake.
But the lawyers noted that Wells sought legal advice on the matter of conflict before attending previous votes on the project and the lawyers felt that seeking the advice proves a show of good faith and was enough to excuse him from any possible conflict claims.
On March 20, council voted unanimously not to pursue any action against Wells on this issue or other conflict allegations brought forward at the time.
Council agreed to revisit the conflict of interest matter bought up on Oct. 26 at a future council meeting and it will address the letter from Vandenberg and Clarke at that time.

RDOS GIVES READINGS TO SEWAGE SERVICE BYLAW

An RDOS bylaw to establish sewage service to the lake’s northwest shore was also given first, second and third reading at the board’s Oct. 22 meeting.
The bylaw was necessary in addition to the Town’s authorization bylaw to allow for the borrowing of capital costs for the sewage project.
Alan Patton, director for rural Area C (Oliver) asked what the average cost per year for each household in the service area would be and was told roughly $575 per parcel per year to service the debt created for financing the project.
The maximum debt that will be created for the project is $1,248,000.
Overall, that would mean the residents serviced by the project would pay a combined maximum of $110,000 per year over 20 years.
Taxpayers in that area will have the option to pay all the money upfront if they wish.
The RDOS board also gave unanimous approval to a motion that will allow cash from rural Area A’s Community Gas Tax Funding to be used to help pay for the first phase of the sewer extension project.
Phase 1 of the project is expected to cost roughly $600,000 and the RDOS portion of that cost is $200,000.
Part of that portion will be paid for from roughly $130,000 in Area A’s gas tax account.
According to an RDOS staff report, the provincial government agreed Area A could apply its Community Gas Tax, which comes from the federal government, to a wastewater project.
Area A can only withdraw from the fund and can’t pay into it, however, and so the RDOS board also approved the creation of a new account where taxes collected from residents in the area serviced by the sewage project could be deposited to make up the $130,000.
Other monies for the project will come from a pledge from the Okanagan Basin Water Board to cover 18 per cent of the costs of the sewer extension as well as the $4.5-million Municipal Rural Infrastructure Fund grant from the province and the federal government.
That grant expires in March, 2010, and if work on the project has not begun by that date, the province may withdraw the grant.
Property owners along the lakeshore where the sewage system is intended to be installed have been reluctant to enter into easement agreements with the Town without some form of guarantee that the project will go forward.
For these reasons, the board agreed to allow for gas tax monies to be contributed to the project, even though it was not the intent of Area A Director Mark Pendergraft to allocate gas tax funds towards the sewer extension.
There will be an information meeting on Nov. 17 hosted by the Town and the RDOS for all residents living in the area to be serviced by the project.
Details about the meeting will be announced in the coming weeks.
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