South Okanagan residents to vote on water system and $33 million loan for repairs

A controversial situation with a failing private water utility is coming to a head in South Okanagan’s Sage Mesa neighbourhood this weekend.

On April 11, The Regional District of Okanagan-Similkameen will have its referendum vote on whether it should acquire the Sage Mesa Water Utility, then authorize a $33 million loan required to fix it.

The water utility is in a state of disrepair with unsafe water delivered to the residents of the 242 homes who rely on it, and there are conflicting accounts of who’s to blame.

Residents launched a lawsuit against the Ministry of Water on March 31, citing boil water advisories and low water pressure that would be insufficient to fight a fire in case of emergency.

Local resident Daniel Gore created an online petition urging the provincial government to pay for the repairs. He said that splitting $33 million between 242 households, which ends up being around $137,000, would ruin lives.

“This exorbitant fee is beyond what most families in our community can afford, including mine. Many of us are at risk of losing our homes. This levy would also effectively make our properties unsellable, trapping us in a situation where we cannot afford to stay, but will have no way of leaving,” he wrote in his petition. “Since learning that I may lose my home, many nights I can’t sleep, and my skin has broken out with itchy hives.”

But, there are competing views on who is actually at fault, and who should pay the $33 million needed to fix the system.

The confusion surrounds the fact that the Ministry of Water seized management of the water system in 1990, and then contracted out its day-to-day management to the regional district in 2009, even though it’s still technically owned by the original developer.

The Ministry of Water said it isn’t responsible.

“The Sage Mesa water utility is privately-owned, and all private water utilities in B.C. are responsible for independently maintaining their infrastructure and ensuring that their ratepayers and communities continue to receive water services,” the ministry said in an email.

But the regional district said it and the owner aren’t responsible either.

“Neither the owner nor the RDOS has any part in planning capital improvements, budget, setting rates, billing, or collecting fees for water on this system,” the regional district wrote in a fact sheet.

Residents are concerned about the cost to fix the water system ending up on their bills. The ministry said that if the system is acquired by the regional district following the referendum vote, it would be eligible to apply for government grants to help with the cost.