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City to seek approval to borrow $700k
The City of Cranbrook will be utilizing the Alternative Approval Process to determine if taxpayers are okay with it borrowing $700,000 to replace the Motor Control Centre (MCC) for the Spray Irrigation pumping facility.
A fire and failure of the MCC occurred at the irrigation pump station at the city’s Spray Irrigation facility last summer, reported city director of Finance and Computer Services Charlotte Osborne.
“The MCC continued operation after the fire and was able to continue to run after the failure; however, a catastrophic failure is almost certain in the near future,” she outlined to council.
“The MCC is original to the Spray Irrigation Facility, is obsolete and no longer has replacement parts available. The parts for total replacement are long lead items which can take up to six months to arrive and install. With a long wait time on total replacement, the city cannot wait for the MCC to fail before replacement. The MCC needs to be replaced in the winter months when the facility is not operating,” Osborne said.
“If the unit fails during the spray season, which is the only time the MCC operates, overtopping of storage ponds one and two becomes a reality as the city can no longer remove treated water and meet obligations to maintain pond two at 824m. The city needs to be able to remove wastewater from the ponds regardless of our ability to pump from the ponds,” she explained.
No grants are currently available at this time and other funding options, including borrowing, need to be explored, Osborne said, noting the costs for design will be about $70,000 and a “somewhat dated, very preliminary cost estimate for total replacement was $560,000.”
As a result city staff recommended to council Oct. 6 that the city will need to borrow up to $700,000 to complete this project.
The Alternative Approval Process requires people opposed to the borrowing to vote, with 10 per cent of municipal electors, or 1,481 elector response forms required, to halt the process.
“It’s really important we replace this motor prior to the spring/summer season,” said Mayor Wayne Stetski prior to council unanimously approving the first three readings of Spray Irrigation Facility Loan Authorization Bylaw No. 3812.
Coun. Gerry Warner asked prior to the vote if the city’s reserve funds could handle the cost of the project?
City chief administrative officer Wayne Staudt replied that if reserve funds were available that option would have been outlined to council. “There is no other reserve” adequate to handle the work required, he said.
He also noted that if the borrowing is approved, the city will be at 40 per cent of its borrowing limit.
Coun. Diana J Scott noted that the city is in “a good position for borrowing and we have to do this. If something happens it will be a huge catastrophe.”
Elector response forms must be returned to city Director of Corporate Services Roy Hales on or before 4:30 p.m., Dec. 10. The forms are available at city hall or on the city website: www.cranbrook.ca .
Ian Cobb/e-KNOW