Allan Carr, senior vice-president for Midwest Property Management, spoke at the city's priorities, policies and budget committee meeting on May 25 about a water main break that happened in October 2008 at the School Draw Avenue apartment complex.

Allan Carr, right, senior vice-president for Midwest Property Management and Brad Pond, building manager for the company, spoke to city council Monday afternoon about the lack of clarity in who iseligible for funding under a program available to residents to help cover water and sewer service repairs. - Andrew Livingstone/NNSL photo

He said the company was required to pay the $15,000 cost to repair a damaged water main at the complex, even though the break appeared to be the city's responsibility.

The City of Yellowknife set up the Service Connection Failure Assistance Fund as insurance coverage for residents who encounter problems with their water and sewer service. The cost of repairing water main or sewer damage during the winter months could easily exceed $10,000. The city website reads, "The program applies to failure of water or sewer services that occur between the building foundation and the city main."

On Oct. 13, 2008, the basement of Ciara Manor flooded when a break in the water main to the complex occurred. Brad Pond, building manager for Midwest Property, said they pumped out the water and found the break was not inside.

"We found the break outside the building's foundation," Pond said. "It was underneath the front steps of the building."

Carr said he paid the $500 deductible, a requirement in order to receive coverage from the assistance fund, and a work order was signed off on by the city for the water main to be repaired. Work began on repairs but Carr said they were informed later on it was not going to be covered.

"It was determined the break was outside the foundation but under the step," he said. "The step is considered to be part of the foundation. That's not clear in the qualifications."

According to Pond, the concrete steps are in no way attached to the foundation.

"They sit on a pad on the ground," he said. "They aren't connected to anything."

Chris Greencorn, manager of public works and engineering, said the front steps of the building were considered to be part of the permanent structure of the foundation, therefore making the work ineligible.

"Policy states we'll cover anything from the foundation to the road," Greencorn said. "We felt it was directly under the permanent structure. It's not something we cover."

Greencorn said the water main break would have been covered had Midwest contacted the city after it was determined the break was the city's responsibility.

"They went ahead and hired someone to do the work," Greencorn said. "If they had come to us, we would have covered it."

The policy says once it is determined the break is outside the foundation of the building, the city's water and sewer division is to be notified.

"The department of public works will arrange for and conduct the necessary investigations and repairs once the deductible is paid," the policy says.

An invoice was delivered to the city on three separate occasions - twice in January and once in March. Carr said they didn't get anywhere. They were credited back the $500 deductible on their water bill in mid-March.

"The city had their minds made up about this," he said. "The policy needs to change. We want what is fair and equitable."