The city will move forward with the proposal from SaskWater to purchase the city's water treatment plant, water ponds and intake pumps. (Nikita Ganovicheff/meadowlakeNOW Staff)

By Nikita Ganovicheff

SaskWater Deal

City moving forward with SaskWater proposal

Jun 25, 2019 | 11:53 AM

City council has decided to move forward with a proposal from SaskWater where the organization will buy the city’s water treatment plant, water ponds and intake pumps.

The proposal outlines a 30-year deal between the city and SaskWater with a rate phase-in plan for the first seven years. After that point, the two will negotiate water rates based on actual consumption and required investment.

At a city council meeting on June 24, the city made the decision to move ahead with the proposal after holding a public hearing. Meadow Lake resident Patricia Fry asked about potential drawbacks that come with a separate organization owning the water treatment plant at the hearing.

“You already are doing everything right anyhow, so why would we want to give that control to somebody outside of our city?” Fry asked.

“The biggest thing is HR,” Acting Mayor Merlin Seymour answered. “So if Tracey wanted to go on holiday for a month we need to bring in a contractor that has a level four certification to run the plant, if you can find one. They’re few and far between and if you can get them it costs a lot of money.”

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Last year, the city paid $19,500 to bring in a qualified contractor to run the plant for two weeks. Chad Braun, account manager for SaskWater, said SaskWater employs several people who have a class four certification and would be able to transfer one to the plant when needed.

Under the proposal, current water plant employees would continue with their positions at the plant and would be SaskWater employees. A concern was brought up whether the plant employees would still work on projects with the city’s public works department. Braun said they can work together on projects, however the plant will take priority.

Jessica Walters, acting city manager, brought up the financial risks for the city if water consumption drops as well as risks with the underground infrastructure.

“We would also retain all the underground infrastructure which is, probably at this point, the oldest water infrastructure in the community and while we would be able to transfer the risks associated with the water plant,” Walters said. “We would be keeping the risk and the maintenance with the underground infrastructure whether or not we sold the plant to SaskWater.”

Councillors Chiverton and Read asked Braun for clarification on SaskWater’s policies for emergency situations like a parasitic outbreak and the breakdown of equipment.

Braun said they have emergency preparedness plans, some of which involve bringing in potable from other communities if an outbreak should happen. SaskWater has several partners who are able to get replacement parts quickly and at a discounted price.

Before finalizing the deal with SaskWater, the city will need to discuss the current water supply agreement with Flying Dust First Nation.

Current rates in the agreement with Flying Dust are set until June 30, 2021. In the SaskWater proposal, the city will continue to sell water to Flying Dust rather than SaskWater taking over the agreement which means the city would see a loss on water sales for the next two years.

“We will be in personal contact with Flying Dust as soon as possible to get this going,” Seymour said.

Flying Dust First Nation currently uses 10 per cent of the total production from the water treatment plant.

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nikita.ganovicheff@jpbg.ca

Twitter: @Nikitaganov