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Snug Cover Sewer Upgrade cost issue

posted Dec 9, 2010, 5:51 PM by Owen Plowman   [ updated Mar 3, 2011, 11:22 AM ]
At the 2010 AGM, Wolfgang Duntz provided some background information concerning the soon-to-be-completed Snug Cove Sewer Upgrade.

Operating costs will rise when the upgraded plant is put into operation, early in 2011. Discussion during a Snug Cove Sewer Management Committee meeting, at some earlier date, focused on this cost increase, and the point was made at that meeting that existing users should not have to pay an increased fee: the cost of the additional capacity upgrade should be borne by new users, since the existing plant capacity is sufficient for current use. Wolfgang suggested that the Neighbourhood Association gain clarity on this issue from the Municipality.

Accordingly, Owen Plowman (Secretary) has written a letter to the Municipality's Chief Financial Officer requesting clarification. The response received is show below.

The Municipality's response (Mar 1, 2011)

(Received by email)

Dear Owen:

I apologize for the slow response to your Snug Cove Sewer questions on behalf of the Cates Hill Neighbourhood Association.

With regard to the points in your inquiry letter;

point 1 – yes, the existing plant is sufficient for the current users.

points 2 and 3 - the analysis of the operating costs by EcoFluid Ltd, the design engineers and operators of the plant, suggest that actual operating costs of the upgraded plant will be similar if not lower than the present costs.  It is anticipated that more efficient processes will allow the plant to handle the existing users in a cost neutral fashion.

However, it should be noted, normal incremental costs associated with labour, equipment and material will occur - but these costs changes are not a product of the plant upgrade.

As the user group is increased, any additional operating costs will be absorbed by the new users.  Because the initial plant operation will be for the current user group, we will be able to develop a good understanding for the effects of increased flow on costs and operating process.

point 4 - a review of Development Cost Charges and latecomers agreements will be requested during 2011.  This review will focus on Snug Cove development in general and the Sewer Plant cost recovery for Bowen Island's share in the plant upgrade.

point 5 – to restate comments made above, at this stage the operating costs for running the plant to serve the existing users is anticipated to be equal to the present operating costs.  The Increased operating expenses expected with the addition of more users will be absorbed by the larger user group. 

Any decisions around operating costs will be analyzed against the initial costs to operate the plant for the current users.

Yours truly,

 

Brent Mahood
Chief Administrative Officer

Bowen Island Municipality BC

T: 604.947.4255

E: bmahood@bimbc.ca

Ċ
Owen Plowman,
Dec 9, 2010, 5:54 PM
Ċ
Owen Plowman,
Dec 9, 2010, 5:54 PM
Ċ
Owen Plowman,
Dec 9, 2010, 5:55 PM
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