True Engineering offers the Town of Oliver three scenarios (choices) of what it could to:

a. Fix the syphon damaged in 2016 and

b. Qualify for a large $ grant programme that could help with the project.

Council choose Scenario 3 ( cost outlined below with an add on of contingencies fees )

On December 5th, True Engineer wrote to CAO Cathy Cowan:

The Town of Oliver is currently pursuing federal funding through the Disaster Mitigation and Adaptation Fund (DMAF) for the Gallagher Siphon Project. This fund was developed to invest in public infrastructure that is susceptible to economic, environmental and social impacts related to climate change, natural hazards and extreme weather events.

Projects eligible under the DMAF must have a minimum $20 million in expenditures. The federal government cost sharing and stacking limits will be up to 40% of this eligible expenditure. An Expression of Interest (EOI) Application was submitted to the DMAF by the Town. Infrastructure Canada performed an eligibility assessment on all EOIs received.

The Gallagher Siphon Project was deemed conditionally eligible to proceed with the full application.

As the Town moves forward with preparation of this application, three options are presented for structuring of the project scope. It is noteworthy that contingency allowances typically do not exceed 15% of the project value in these applications.

During a discussion of this report a number of points made by members of council:

Mayor Martin Johnansen indicated a serious concern as to the Town’s capacity to do such a large project and its effect on the Water Utility and how it is integrated into the daily operations of the municipality.

Water Councillor Rick Machial expressed concern that he did not have all the “numbers” when it comes to the portion of this money, local ratepayers would be responsible for. He urged senior staff to bring forward the hard figures for review.

Councillor Dave Mattes sought similar information on the present 5 year capital programme for the water utility. How many projects already planned would be integrated into this large grant application. He suggested that if the cost is 5-6-7 million dollars then going with the large grant is the best idea – basically meaning you only have to raise 1/3 of the project cost locally that would likely be financed over a long term.

Staff promised such a review but because of application deadlines it was determined to apply now, see what happens, with all options open in 2019.