There is very little progress to report on the proposed waterline to the hamlets north of Westlock as members of the Westlock Regional Water Services Commission (WRWSC) have been unable to come to an agreement on the project for more than six months.
In December 2017, the first motion to begin work on Phase 3 of the waterline north project to Jarvie was defeated 3-3 and there has been very little movement since then with WRWSC county representatives Dennis Primeau and Jared Stitsen, along with Clyde representative Allan Van Eaton voting for the motion and town representatives Clem Fagnan, Curtis Snell and David Truckey voting against it. The motion needs 75 per cent of the vote to pass.
“There’s nothing happening on the waterline at the moment,” said Primeau, of the now $9 million project.
At a recent commission meeting, the same motion was voted down once again, along the same municipal lines, he said.
“The town has the last vote on it and they blocked it again,” he said. “There’s nothing that I can do about it. I have no idea. At some point, somewhere, someone is going to have to say ‘This is enough.’ It’s dead in the water at the moment.”
Both Westlock County council and Westlock town council recently received a letter from county residents Philippe and Sharon Nadeau, who live just north of town.
They expressed their concern for the project’s delay saying, “someone is missing the big picture here and your residents are paying the price.”
“After in-depth conversations with the councillors of the Town of Westlock plus conversations with county councillors we are of the sincere belief that there is a lack of understanding about the dollar figures that is going unaddressed,” stated the letter.
“It’s a major concern because the town and the county can’t seem to figure it out,” Sharon Nadeau said later when contacted by the Westlock News.
She called the conversations between herself and councillors from both municipalities private, but said she has had good feedback from both sides.
“I know both sides of the story and I know what the problem is and it’s always finances,” said Nadeau.
The waterline started as a $7.1 million project, based on 2012 figures, but after the project went to tender it increased to over $9 million.
The Water for Life grant has been approved and will cover 90 per cent of the original project costs. For the work to go forward the commission would have to increase its debt limit, which is already at $11.8 million, by another $500,000.
“It’s still there and I would assume it would have to be acted upon shortly,” said Primeau, referring to the $6.2 million grant.
“I’ve been reassured by the county that it is a top priority for them to get the waterline through, so I have faith in them that they’ll get the job done, hopefully,” said Nadeau.
“I’m optimistic.”
The tender for the project expired Dec. 24, 2017 and the commission is in the process of applying to extend the grant, as well as the March 31, 2018 deadline.
Mayor Ralph Leriger stressed that he does not sit on the commission, but feels a responsibility, as the chief elected official representing the town, which represents 93 per cent of the users of the water system, to address the issue.
“It’s a pretty complex issue. It’s not as simple as folks might think,” he said. “This is a matter of financial prudence. When I say that I mean there’s a number of moving parts.”
There are three important factors to consider, said Leriger.
First, since the tender came out higher than expected, it is likely to require another increase in the debt limit. A commission, or board, is not allowed to exceed its debt limit without ministerial approval.
Debt limits are calculated, just like loan or mortgage approvals, based on one’s ability to repay the debt, he said, usually one or two times your revenue.
The commission’s current debt limit is in debt four or five times its revenue.
“The concern is that even though with grant money, the concern is we’re exceeding our ability to repay that debt. So, representing 93 per cent of our water users, we feel that our water rates are already considerably in excess of what was anticipated when the commission was formed,” said Leriger.
Next, is the grant itself, he said. It is not accurate to say the grant will cover 90 per cent of the cost because that is based on the original estimates.
The commission has not received approval for any additional grant money or an extension of the project deadline.
“Those things to me are critical before even contemplating on proceeding,” Leriger said.
Lastly, said the mayor, “somebody has to look at the cost-effectiveness.”
He pointed out the last federal census showed the four hamlets to the north — Pibroch, Dapp, Jarvie and Fawcett — were losing population at a significant rate.
“It’s somewhere around 210 people. If you estimate 2.6 people per household, that’s about 80 residences, so divided by the $9 million estimated cost that’s $112,500 per household,” said Leriger.
