An outcry from Black Diamond business owners in response to proposed increases in their water and sewer bills has the Town going back to the drawing table.
An outcry from Black Diamond business owners in response to proposed increases in their water and sewer bills has the Town going back to the drawing table.
At its April 18 meeting, Black Diamond town council was prepared to approve third reading to increase the flat rate for water and sewer, which is currently $43 and $86 once every two months respectively for one-inch and larger meters, but received pushback by several citizens in attendance.
The rates reach as high as $2,150 for water and $4,300 for sewer for four-inch meters, every two months, in the Town's initiative to obtain full cost recovery for both services.
Dozens of people opposing the bylaw change attended last week's meeting, with some speaking out during council's question and answer period.
Hard Knox Brewery co-owner Pamela Lyken, who plans to open the business later this spring, is among those concerned.
If the bylaw goes through, Lyken said she will pay a flat rate of $344 for water and $688 for sewer every two months for her two-inch meter.
"We really need to understand the justification of taking a flat rate and increasing it by close to 1,000 per cent," she said. "Basing it on the fact that you have a two-inch water meter seems completely unfair. There needs to be some serious rationale presented to all of us."
Lyken explained that, with the exception of high producing months, the brewery will use less water than the average household and it will recycle water, resulting in little going into the sewer.
Also concerned is Glenys Russell with All About Packaging in Calgary, which owns a building in Black Diamond with a two-inch meter. Russell said the bylaw change, if approved, would bring the annual flat rate for both water and sewer from $774 to $6,192.
She said the building consists of a toilet, shower for first-aid purposes and washing machine.
The largest water bill received for the building, she said, was 9.5 cubic metres of usage.
"They cannot expect businesses to pay for this," she said. "This, to me, is a huge slap in the face. Although we are very environmentally friendly, we feel we are being targeted for the budgetary monies the Town requires."
Russell said the burden should not be solely on business owners and multi-units and expressed concerns that it would deter new businesses coming to Black Diamond.
Quenten Brown, a general contractor who presented to council on behalf of affordable housing, agrees the change could impact the town.
"What's happening with this bylaw is it's directly effecting how businesses look at the town as a place to develop," he said. "When you start taxing the water meter and the sewage consumption behind it you're actually stifling development because we're being charged on the meter size."
Mayor Ruth Goodwin said the decision for the increase came down to charging more to those who use more, represented by a full cost recovery method that reflects a factor multiplier similar to American Water Works Association standards.
"We're looking at the inequality of the water usage and who is using water and the amount of water that's being used," she said. "Large water volume users puts a larger load on our sewer system."
Goodwin explained that the larger meters require more pressure and speed, and therefore cost more.
The flat rate covers fixed operating costs and maintenance of capital assets, which is currently being offset by Municipal Sustainability Initiative (MSI) funding, the province's initiative to support infrastructure needs in municipalities. Goodwin said the province is establishing a different rate structure for the funding, which could mean less money. Therefore, the Town is moving to full cost recovery.
Goodwin said she hopes those who will be affected by the increase consider conservation alternatives like low flow showerheads, toilets and sink attachments to reduce consumption and costs. As for multi-family unit owners and merchants who feel they're an exception to the proposed bylaw, Town council suggested administration amend the bylaw and return to council with new information in May, delaying the effective date of the price changes from May 1 to July 1.
"We should take a closer look at some of these anomalies, considering the impact on individuals," Coun. Ted Bain told council last week. "There are certain individuals that are impacted perhaps a little bit more than was intended, particularly businesses."
Sharlene Brown, Black Diamond chief administrative officer, said the delay will create a billing shortfall of $22,000 for water and added she doesn't have a calculation yet for sewer.
According to the proposed bylaw, the consumption rates for both water and sewer will remain at $2.35 per cubic meter for all meter sizes.
