Special General Meeting
Date: Thursday September 19, 2024 at 4:00 PM
Location: NATC Auditorium and online (Zoom)
PLEASE NOTE: YOU MUST PRE-REGISTER ONLINE TO ATTEND AT
Registration: https://sspoa.ca/rdno-silverhawk-purchase/
The SSPOA has Many Unanswered Questions
The Silver Star Property Owners Association (SSPOA) has corresponded and met with the Regional District of the North Okanagan (RDNO) over the proposed purchase of the community’s wastewater treatment owned by Silverhawk Utilities. The RDNO has negotiated the sale/purchase in private with no input from the ratepayers or the resort operator, Silver Star Mountain Resort (SSMR). The RDNO presented their offer to the ratepayers when seeking voter approval via an Alternative Approval Process (AAP). The RDNO publicly asserted that the purchase could be made without the existing rates being changed.
The proposed offer, negotiated by Mr. David Sewell (the RDNO CAO) and Amanda Shatzko (Area C director), was explained at a Town Hall Meeting held on November 14, 2023. As those who attended can attest, both RDNO representatives highlighted the potential to create value from the acquisition and that this would be achieved under the current rate structure.
The Alternative Approval Process (AAP) officially closed on Monday, November 20, 2023, and gave approval for the following:
- the Silver Star Sewer Utility Service Establishment Bylaw No. 2971, 2023
- Silver Star Sewer Utility Loan Authorization Bylaw No. 2972, 2023
- the RDNO to enter into an agreement with Silverhawk Utilities Inc. (“Silverhawk”)
The SSPOA Board of Directors, on reviewing the pro forma that the RDNO was using for the purchase, discovered that the RDNO had overstated revenues. The SSPOA had completed a survey of the Silverhawk Fixed fees from the ratepayers in early 2018. After applying the rate increases since 2018, the SSPOA analysis indicates that revenues were overstated by $445,000 per year. Rates would need to be increased substantially to meet the RDNO’s revenue projections.
On December 22, 2023, the SSPOA wrote a letter to Mr. Sewell voicing our concerns. Since then, very little has been disclosed as to progress on the sale agreement, including the apparent revenue shortfall that calls into question the viability of the purchase to be concluded on the basis of maintaining the status quo with regard to sewage charges to the community.
In the interest of full disclosure, the Board of the SSPOA has decided to hold a Special General Meeting (SGM) on Thursday September 19, 2024, to provide the ratepayers a complete picture of the purchase agreement and its ramifications on rates both now and in the long term. The meeting will be held at 4:00 PM in the NATC auditorium and ZOOM attendance will be available. Representatives from the RDNO will be invited to attend and make a presentation if they choose.
The proposed motion for that Special General Meeting is:
“We move that the Regional District of North Okanagan is advised that no purchase of the Silverhawk sewage utility that serves the community should be entered into without full disclosure of the impact that any such transaction may have on sewage charges levied on the community. The community has relied on the public verbal statements made by the elected representative for Area C and the Chief Administration Officer at open community meetings where it was widely understood that no increase in charges, or a change in the way that the cost of sewage services is calculated, would be anticipated to complete any purchase and bring the utility into public ownership.”
SPECIAL GENERAL MEETING
Date: Thursday September 19, 2024 at 4:00 PM
Location: NATC Auditorium and online (Zoom)
PLEASE NOTE: YOU MUST PRE-REGISTER ONLINE TO ATTEND AT
Registration: https://sspoa.ca/rdno-silverhawk-purchase/
MEDIA LINKS
RDNO Frequently Asked Questions Silverhawk purchase agreement (PDF)
Silver Star Sewer Utility Service Establishment and Loan Authorization Bylaws – Alternative Approval Process Results (RDNO)
Regional district takeover of Silver Star sewer approved (Vernon Morning Star)