After a luncheon on May 20, 2008 attended by about 30 members of the Penticton Indian Band Council, Penticton City Council, PIB Development Corporation and City staff, Grand Chief Stewart Phillip and Mayor Jake Kimberley signed the Sewage Treatment Service Agreement – an historic agreement of environmental, social and economic significance for both communities.

“This is quite an historic day for the City of Penticton and the Penticton Indian Band,” Mayor Kimberley said. “A very significant agreement has been reached … and this agreement is just a stepping stone.” Grand Chief Phillip also commented on the agreement’s significance. “This is indeed a historic day that we celebrate the strengthening of the relationship between our communities,” said Grand Chief Phillip. “We will be able to grow and prosper together.”

The Band and City have since 2004 been working on the 25-year agreement that will provide sanitary sewage treatment for the Band lands on the west side of the Okanagan River Channel. Intense negotiations have been underway since January.

The City will recover all operating expenses, including overhead plus a profit of 10 per cent. The City will also “front end” the cost of up-sizing three pumps, establishing the connection points and other expenditures. These will be recovered from the Penticton Indian Band either in lump sum payments or in payments plus interest amortized over a 20-year period. The agreement includes security in the form of a letter of credit required prior to the construction of the connection lines.

The agreement strengthens each community's commitment to establish a regional vision that creates opportunities for all. "I am greatly encouraged by the progress we are making," said Chief Phillip. "Willingness to commit to common regional goals involves the recognition that we must work together to ensure that all communities benefit from available social and sustainable, environmentally responsible, economic opportunities. Sharing resources and information will benefit us all."

Mayor David Perry stated "Our agreement with the Band reflects the joint work of both parties over several years. I am confident that our efforts will enhance the City's relationship with our neighbours because this is an agreement that promotes collaborative communications between our respective communities."

The agreement notes the following shared values:

• The celebraton and enhancement of cultural and traditional values;
• The protection of the region's visual beauty, environment and water quality;
• The encouragement of sustainable communities that harmonize economic, social and environmental needs; and
• The enhancement of the quality of life for all citizens through the achievement of peace, prosperity and happiness without expense to other communities or the environment.