The City of Vernon will fund water hookup for some Okanagan Landing residents on a one-time basis.
And the city hopes to work together with the Regional District of North Okanagan in regards to the long-term debt of the utility.
RDNO gave the city its approval last week to expand Greater Vernon water lines to Adventure Bay while sewer services are currently being built.
Forty properties are without potable water after the private water utility that services the properties failed.
“The costs for 400 meters of pipe and associated services would be around $464,000,” said City of Vernon financial technician Greg Thompson. “With 40 parcels sharing on an equal basis, that would be $11,600. If they opt for a parcel tax over 15 years, the cost would be $1,100 per year.”
Funding would come from a couple of City of Vernon sources, said Thompson.
The cost to repair the private water system is estimated at between $150,000 and $200,000.
Attempts to rebuild the system have failed.
Thompson said the request is not a takeover of the private utility, but a request to hookup to Greater Vernon water.
The utility’s debt is $4.5 million, which has raised concerns.
“For clarity, this is really a Greater Vernon water extension to an area where the residents are going to pay the whole costs themselves,” said Coun. Catherine Lord. “The question is who’s going to carry the long-term debt.”
The city has asked RDNO to use its best and reasonable efforts to assume the long-term debt for the water service extension.
“There’s a full commitment to cooperation from RDNO,” said Coun. Patrick Nicol, who is also chairperson of the RDNO board.
Work will begin immediately with the current sewer project underway to the same properties.
Completion is expected in a couple of months.