May 22, 2014 - 4:17 PM
PENTICTON - The City faces new costs for sewage connection lines to Skaha Hills, an agreement being made between the City and the Penticton Indian Band.
The Skaha Hills project is being developed by the Penticton Indian Band on the Southwest end of Penticton. The development consists of a vineyard and winery, a golf course and residential housing, which went up for sale last month.
The Skaha Hills Connection Agreement was presented to council committee yesterday by Mitch Moroziuk, Director of Operations.
The city is paying 77 per cent of the $369,000 project — $284,000. The Band picks up the rest of the cost, a much smaller 23 per cent, or $84,870.
If the City and Canada create a cost-sharing agreement, the City will have to pay the Band the amount received from Canada and the amount spent by the Band.
The City is fronting the majority of costs because of anticipated sharing by city customers, like Barefoot Beach Resort, who have agreements for existing connections.
Barefoot Beach contributed $25,000 to the project, which will also be split 77:23 between the City and Indian Band.
If Council approves the recommendation, the 2014 budget will need to be changed to add $285,000 for the project. Funds will come from the accumulated Sanitary Sewer Surplus.
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News from © InfoTel News Ltd, 2014