Cranbrook City Council has authorized staff to begin amending this year’s budget to include hooking the Shadow Mountain development up to the City’s water and sewer services. The project is estimated to cost the City $1.1 million.

“We won’t know how much it will cost until we take it out to tender and that’s what Council did tonight (Monday). That is what we estimate it to be, it may be more or it may be less,” said mayor Scott Manjak.

Council also authorized engaging B.M. Potter Consultants Ltd. for professional services related to the design, tender and construction administration of the mains for $78,400 (plus applicable taxes), releasing tender for the construction, and the commencement of public consultation of the proposed amendment to the budget.

In May of this year, Shadow Mountain Properties Ltd. (SMPL) began construction of a water main from its property to a City-designated point on Echo Field Road. The water main construction is to be followed shortly by sanitary sewer main construction.

If everything had gone according to plan, Havaday Development Inc. (Wildstone Development) would have provided the water and sanitary sewer trunk to bridge the gap between the City and Shadow Mountain. But at the time of the economic downturn in 2008/2009 the trunk water and sewer mains within the Havaday lands were not fully constructed to Echo Field Road and it is unlikely they will be completed anytime soon by Havaday.

The subsequent planning and development of SMPL was based on these municipal services constructed through the Havaday lands to Echo Field Road being available when residential development began. Shadow Mountain is currently going ahead with two registered subdivisions and needs the hook up to services.

As Havaday is not in a position to complete water and sanitary sewer trunk servicing to Echo Field Road, the City is now stepping in to complete the work.

“The reality is sometimes we have these types of situations where development may not be able to proceed for a number of reasons and that is what happened to the Wildstone/Havaday project,” Manjak said. “Because of their failure they have not been able to complete their project and Shadow Mountain required to hook up to our water and sewer, so to allow them to hook up we have to bring the pipe from the middle of the Havaday property to the end of their property.”

The scope of the work consists of constructing approximately 700 metres of sanitary sewer main and approximately 1,100 metres of water main.

Coun. Bob Whetham voiced his concern for this project at Monday’s meeting.

“I’m really disturbed about this particular application. It would seem once again we’ve got the cart before the horse. The Shadow Mountain subdivision was approved before the water sewer connections were established,” he said. “This Council doesn’t really have a choice in this. If we don’t incur the expenditures I think we can expect legal action on the part of the landowners who can reasonably expect to be able to build on and occupy the lots, which were approved by the City. If we do approve them then I think we’re endorsing a flawed process which has kind of backed Council into a corner and really compromised our ability to be objective about whether we wish to support it or not.”

Whetham also expressed concern about drawing down the Development Cost Charges (D.C.C.) fund, which is where much of the estimated $1.1 million for the work will come from.

“The source of funding is D.C.C.s and the important thing to remember about that is that is not tax generated dollars. Those are funds contributed by the development community for these types of projects,” Manjak said. “We have always said that development will pay for development and that is a principal we are guided by and that we’ll always be guided by.”

Of the estimated $1.1 million $633,000 will be taken from the D.C.C. reserve fund and the remaining $467,000 will be funded through either utility or D.C.C. reserves and will be recovered in its entirety through connection fees when development of the Havaday lands proceeds.

“We have two options, either we do it or we don’t. If we don’t then Shadow Mountain isn’t going to have any water and sewer and that development will fail as well. I can’t say it any simpler than that,” Manjak said. “I think the plan that was put forward at Council is a very logical and pragmatic plan. It recognizes the reality that this development needs this to move forward and it will bring tax dollars to this community as people move in and become functional members of this community. In a perfect world would we be dealing with this? No. But as we all know it’s not a perfect world.”

The City is seeking written submissions regarding the amendment to the Five Year Financial Plan and this year’s budget. Public input will be received up until June 22 and will then be presented to Council at the regular meeting on Monday, June 28.