Testing the waters for agriculture water rate design - Kelowna's water plan

October 26, 2017

 

City Council will consider Monday the public engagement process proposed to help inform a new City agricultural water rate design
.
With the recent receipt of federal and provincial grant funding for Phase 1 of the Kelowna Integrated Water Supply Plan, customers of the South East Kelowna Irrigation District (SEKID) and South Okanagan Mission Irrigation District (SOMID) will be transitioned into the City water utility in 2020.

The separation of the irrigation and domestic water supplies has resulted in the need for the City to review its agriculture irrigation rate design to ensure a fair structure that encourages conservation and supports farming operations.

“Incorporation of SEKID’s and SOMID’s agricultural customers into the City of Kelowna water utility necessitates that the City’s current agricultural rate design be changed,” says Kevin Van Vliet, City of Kelowna Utility Services Manager. “While SEKID will continue to set the irrigation rates for customers in 2018 and 2019, we hope to give customers assurance and advance notice of any changes to the rate design that may affect them and are therefore planning consultation to occur this fall and winter.”

Rate designs can range from pay-per-use, as the City’s current agricultural class customers do, to SOMID’s model which charges a fixed fee per acre of land that has been allocated water. Or it could be options that combine a fixed component with a variable component based on water use, such as the system used for City of Kelowna residential and commercial customer classes , or using increasing prices for increased use, as in Kelowna and in SEKID. 

The engagement process is proposed to start this fall with a variety of direct in-person and online public consultation techniques used to focus on engaging directly impacted agricultural customers, as well as provide opportunities for broader community and stakeholder input.

Learn more about Kelowna Integrated Water Supply Plan - Phase 1 and sign up for email updates at kelowna.ca/water.

***********************************************************************************************************************

Learn more about Phase 1 of Kelowna Water Integration - Public engagement

Residents are invited to attend a public information session regarding implementation of Phase 1 of the 2017 Kelowna Integrated Water Supply Plan.

Phase 1 is a $63.7-million multi-year project that includes the separation of agricultural and domestic systems in Southeast Kelowna and delivery of a sustainable water supply to South Okanagan Mission Irrigation District (SOMID) customers. With domestic water being supplied through an extension of the City of Kelowna’s water distribution system, upgrades to the City of Kelowna’s water utility are required for the additional capacity as well as to accommodate future growth.

An informal, come-and-go format, information session will be held:

           Date: June 20
           Time: 4:30 p.m. – 6:30 p.m.
           Place: South Kelowna Centennial Park (South Kelowna Elementary School, 4176 Spiers Rd.)

Staff from the City of Kelowna, South East Kelowna Irrigation District (SEKID) and consultants will be available to talk to residents and answer questions.

“Many details of the infrastructure project, SEKID transition and agriculture rates are still in planning phases,” said Ron Westlake, City of Kelowna Project Manager. “The information session is intended to give interested residents an idea of the scope of the project, enable them to determine how they might be affected by the different aspects and ensure that they keep up-to-date with future information as it becomes available.”

In order to access funding from federal and provincial sources irrigation districts must integrate with local governments.  Receipt of a $43.9 grant from the Clean Water and Wastewater Fund will see ratepayers of SEKID realize a significant direct cost savings, in addition to completing the project 10 years faster than without government funding.

“During the transition period, SEKID will continue to be the main point of contact for customers,” said Toby Pike, SEKID General Manager. “We look forward to working with the City to ensure a coordinated approach to project construction, merging rates and billing processes and integration of staff until the official integration is complete on January 1, 2020.”

Sign-up to receive email updates about the project and construction information at kelowna.ca/water or visit www.sekid.ca for customer information.

Find out how Kelowna can develop its MWP for a third  (or less) of the cost GVWU is doing it. It will separate the domestic and irrigation systems and will not treat water destined for agricultural use.

*******************************************************************************************************************************************

Kelowna recives $44 million for domestic water separation

March 17, 2017

A successful funding application for Phase 1 of the 2017 Kelowna Integrated Water Supply Plan means clean safe drinking water is one step closer for citizens of South East Kelowna and a plentiful supply of agricultural irrigation water is coming to the South Mission.

The federal and provincial governments approved the City of Kelowna funding application of $43.9 million to bring treated lake water to South East Kelowna Irrigation District (SEKID) ratepayers for domestic use, and to resolve irrigation supply problems for the South Okanagan Mission Irrigation District (SOMID). The project will also allow another five small private water systems to connect. 

The total project cost is $61.3 million, with a combined local contribution of $17.4 million representing 28 per cent of total project costs.

“Funding of this magnitude is something we rarely see – in fact, this is the largest single grant anyone at the City can remember receiving,” said Kelowna Mayor Colin Basran. “I want to thank the federal and provincial governments for acknowledging this essential need in Kelowna and for committing to help ensure our citizens have safe clean drinking water for a rapidly growing population a resilient and redundant water supply system to meet our agricultural needs in the face of climate change.”

A transition plan, a requirement of the provincial government and the grant application, is underway to map out the process for SEKID and the City of Kelowna to work together on Phase 1 of the 2017 Kelowna Integrated Water Supply Plan.  Pending the timely completion of a successful transition agreement clean drinking water is anticipated to be delivered to the majority of SEKID ratepayers by the end of 2019, or earlier if possible, with a target completion date to all SEKID customers by 2020.  In addition to the significant direct cost savings to ratepayers the project would also be completed 10 years faster than without government funding. The work to service SOMID is also expected to be completed by 2019.

“The plan achieves more than just good water quality – it will also achieve rate equity, a more resilient and robust system and maintains the interest of our agricultural community,” said Project Manager Ron Westlake.

The grant announcement will allow for the initial phase of the long-term integration plan to be implemented and set the groundwork for future integration.  Phase 1 includes the separation of agricultural and domestic systems in SEKID; in the short-term domestic water will be supplied through a new transmission line connecting to the City of Kelowna’s water distribution system from Okanagan Lake.  Agricultural water will continue to be supplied from Hydraulic Creek with emergency connections to the domestic supply in the event of service disruption. Phase 1 will also see a sustainable agricultural water supply delivered to SOMID, along with upgrades to the City of Kelowna’s water utility to supply both SEKID and SOMID and accommodate future growth.

The overall direction for an integrated system is established by the 2017 Kelowna Integrated Water Supply Plan and will inform future phases. The plan was developed using existing plans during a Value Planning exercise held in January, as a provincial requirement to determine the best lowest cost city-wide solution. The study was conducted by an objective engineering firm from the United States, with the participation of local water experts. 

The new plan will achieve:

Clean drinking water for all citizens

Agricultural interests maintained and protected

A resilient and redundant system that will help Kelowna navigate an uncertain future when it comes to climate change and increased regulation

Equitable rates, supply and service – some residents are paying twice as much as others for water that doesn’t meet Canadian guidelines, depending on which irrigation district is supplying the water.

“This plan will eventually ensure all our citizens have clean drinking water at equitable rates, while our domestic and agricultural needs are met with an integrated system that has the flexibility to draw water from a number of options to meet demand,” said Mayor Basran.

----------------------------------------------------------------------------------------------------------------

So much for GVWU staff's arguments that government grants would not be available for domestic water separation. 

We will be the only community in the valley to spend millions of dollars to treat agricultural water with ultra violet irradiation and eventually filtration only to use 80% of it on agricultural irrigation. Good job, consultants and staff!

SEKID customers, who earlier rejected a borrowing referendum of about $25 million, will now be getting a brand new domestic line attached to the City of Kelowna's domestic water supply from Okanagan Lake courtesy of senior governments grants of $44 million.

To date we spent over $70 million on our soon(?) to be updated Master Water Plan. (Only $35 million was authorized by ratepayers in the 2004 referendum). About 60% of these monies were spent on altering the perfectly functioning irrigation system. The remainder was spent on the domestic water supply improvements from Kal Lake. 

GVWU staff recently released the expected long term budget for the Master Water Plan. 

In addition to the already spent $70+ million we can expect to spend an additional $147 million for a grand total of over $215 million for the plan. And these are the estimates by the same people who estimated the cost of the Duteau Creek Treatment Plant at $16 million (final cost almost$30 million). About $111 million of this money will be spent on the irrigation system (the old VID) for a grand total of about $156 million. The cost of the original VID system was $7.9 million.

There is one more important thing to remember: staff and politicians do not want to fail this time. So instead of going out for another referendum the proposal is to collect money from us in advance through water rates. The annual amount would be about the same as our annual cost of financing would have been for the rejected $70 million (in the range of $4-5 million annually). When sufficient reserves are collected in future years then portions of the plan will be constructed as money allows.

The problem with this approach is that many of us will never see the improvements we are paying for in advance. It's like someone setting aside money for a house so he/she would not have to borrow. In the meantime he/she lives in a rental home while the cost of the dream house keep escalating and part of the mortgage is spent on the rental. Instead, if the plan is the right plan, we should borrow the funds and pay while enjoying the benefits of a new MWP. I would be the first one to vote for a normal, separated domestic/agriculture water system. This plan is not the right plan!

Look for future discussions on this very important issue for our community right here in this blog.

Next: The hidden costs of the current proposed MWP! Who is paying for what and the cost to you!

*****************************************************************************************

New city-wide water plan unveiled for Kelowna

February 27, 2017

 

Council heard a presentation Monday from Don Stafford, Strategic Value Solutions, on the 2017 Value Planning Study which outlines a new path forward for the delivery of domestic and agricultural water in Kelowna.

“The Value Planning Study and resulting 2017 Kelowna Integrated Water Supply Plan recommendations provide the City with a roadmap, supported by the Province, that will deliver high quality drinking water to all citizens, at equitable rates over time and will maintain agricultural interests,” said Mayor Colin Basran. “Most importantly, the plan will create a resilient and robust system serving both citizens and industry well into the future. The City recognizes there is more work to be done, but we’re pleased to have the overall direction set to guide future discussions.”

“The conclusion of the Value Planning Study marks a significant milestone for an exercise that began in 2010 to determine how best to proceed with the delivery of both domestic and agricultural water in Kelowna,” said Peter Fassbender, Minister of Community, Sport and Cultural Development.
The Value Planning Study, found on the City of Kelowna’s website at kelowna.ca, calls for a city-wide integrated water system to achieve:

• The best lowest cost city-wide solution
• Meet Canadian Drinking Water Quality Standards to achieve public health outcomes
• Flexibility from administrative and operational perspectives
• Maintain agricultural interests
• The city-wide integration plan has a number of other benefits, including:
• Water quality, rate, supply and service equity
• Resilient and redundant system that meets domestic and agricultural needs
• Efficiency in operations and administration

“I commend all participating parties for the significant progress made to date – the plan will be a key consideration when senior levels of government are trying to determine the allocation of grant funding,” said MP Stephen Fuhr.

“While, technically, water quality issues can be solved independently by each provider, these independent technical solutions will be very costly, creating rate inequity for customers,” said Stafford, Water System Planner. “The more cost effective solution is to create an integrated water system that meets the customers’ water service expectations, protects public health, improves the esthetic qualities of the water, ensures equity in services and costs and creates a resilient and redundant supply system. The preliminary numbers show a $95-million cost savings compared to the plan the team reviewed.”

The 2017 Kelowna Integrated Water Supply Plan, implemented over time, would see drinking water drawn from two main sources; Mission Creek when water quality is good and from Okanagan Lake during the remainder of the year. This significantly reduces the cost of pumping water from the lake for the majority of the year. Existing wells and other creeks would also be used as supplemental water sources, helping to defer advanced treatment. The use of two main water sources greatly reduces the costs of advanced treatment when required by limiting the number of water sources requiring treatment. 

“Climate change is the biggest unknown when it comes to confidently planning water supply for Kelowna,” said Stafford.  “The best preparation for an uncertain future is to integrate the systems to create resilient and robust networks for both domestic and agricultural water.”

The plan calls for the separation of drinking and agricultural systems, allowing lower quality untreated water to be used for agriculture, greatly reducing costs over time. The primary agricultural sources include Hydraulic, Scotty and Kelowna creeks, along with the ability to draw from existing wells, Mission Creek and Okanagan Lake if agricultural sources are compromised.

The City re-submitted its Clean Water and Wastewater fund grant application to reflect the recommendations in the Value Planning Study. The City has requested $43.9 million to provide clean drinking water to citizens living in South East Kelowna and to provide a reliable supply of agricultural water to the ratepayers of the South Okanagan Mission Irrigation District (SOMID). 

“Interior Health is happy to see the completion of an area-based plan,” said Dr. Trevor Corneil, Chief Medical Health Officer. “We are supportive of any work that will ensure clean, safe and reliable drinking water for Interior Health residents. We know that water system improvements come at a cost, and funding would help ensure South East Kelowna residents have access to clean drinking water that meets the Guidelines for Canadian Drinking Water Quality.”

********************************************************************************************************

Kelowna's updated water restrictions

Click on above image to view full document.

***********************************************************************************************************

The City of Kelowna's water service.

Source-to-Tap Program

Local health authorities have described the City of Kelowna Water Utility’s “source to tap” program as one of the best in British Columbia.

The water utility supplies water to more than 65,000 residents and more than 1,700 industrial, commercial and institutional properties in north, central and south Kelowna. The raw water source is Okanagan Lake.

Committed to protecting public, environmental and economic health, the utility’s source-to-tap water management approach includes watershed protection, water quality monitoring, treatment, distribution system maintenance, cross-connection control and water-use efficiency. 

Today's Turbidity Index 0.261NTU Rating: Good

**************************************************************************************************************