GEID Transition
The City of Kelowna and the Glenmore Ellison Improvement District (GEID) have come to an early agreement to create a more unified water utility. GEID and the City of Kelowna have signed a Transition Agreement with the goal of transferring the operation of GEID to the City over the next three years.
Kelowna’s Integrated Water Supply Plan and provincial policies align with the transition, in seeking to ensure a smooth transfer of water supply and improvement districts to local governments over time. Based on a unanimous vote, the GEID board has determined that the best way to ensure a strong and lasting water system is through integration. GEID is in a strong financial position and all major projects to deliver high-quality drinking water and reliable agricultural water supply have been completed.
GEID will continue to operate as usual, with its own board and staff, for an effective transfer of ownership and operation over time. The transition plan includes continued employment for all existing GEID staff. The next step is for the province to consider an Order in Council, until then a transition agreement is in place.
The transition process is expected to occur over about three years, and both GEID and City of Kelowna customers will not experience disruption or changes in their water quality or delivery during this transition period.
The shared benefits for both City and GEID rate payers in joining forces include:
- improved supply and resiliency through better interconnectivity and interoperability
- increased emergency response for both systems with a larger pool of highly trained water operators
- new access to provincial grants for major capital projects within GEID
- better ability to plan and coordinate infrastructure projects including water, road, sewer and stormwater
The transition is consistent with the Integrated Water Supply Plan and provincial policies which call for improvement districts to convert to local governments over time. The provincially funded 2017 Value Planning Study confirmed that over time the most efficient and economical way to create more reliability and resiliency in both supply and quality of water throughout the city is to have an integrated water system.
Additionally, as part of the transition, the City and GEID have completed a financial and asset audit to ensure rate payers do not take on any undue risk.
GEID has a long history of serving the Glenmore valley with experienced staff who know their water systems well and will continue to be vital in supporting operation of the system through transition and beyond. The City and GEID are committed to ensuring that all current staff members of GEID are treated fairly during the transition, with continued employment at existing terms and conditions to ensure a seamless and successful transition.
The transition itself will not increase rates for either utility. In the long term it should help improve resiliency and keep rates lower than otherwise due to economies of scale. Additionally, GEID ratepayers will gain added benefits from access to senior government grants and lower interest rates.
Within three years, the City will create a financial plan to merge GEID and City water rates, ensuring similar treatment for water customers across both systems.
The transition itself will not increase rates for either utility including agricultural rates. We have a long-term goal of one rate structure for all water customers. During the three-year transition, we are committed to working with agricultural ratepayers to determine the best rate structure that meets the needs of the agricultural community.
The City of Kelowna water utility intends to continue providing quality water and service to those GEID customers who live outside its municipal boundary and will seek support in doing so from the Central Okanagan Regional District.
GEID and the City are both aligned with the Okanagan Basin Water Board and Okanagan Waterwise programs, which promote water conservation throughout the entire Okanagan Valley. GEID and the City water utility have a similar drought management plan with consistent water restrictions.
Since our region has some of the lowest rainfall and highest water use per person in Canada, both utilities urge customers to watch their usage and take measures to lower their consumption.
With this transition signaled, we invite any additional questions or feedback which will be jointly received by the City and GEID.
If you would like to connect with the City of GEID directly, please refer to this Fact Sheet for contact information.
