Carmichael Road Watermain Replacement Project

1. We don’t have sufficient information to conclude that the utilities that were originally installed were substandard. The typical service life for watermain pipe is assumed to be 50 years. However, the actual service life can vary significantly. Some watermains remain in service for an additional 10 to 20 years beyond their expected lifespan, while others may require replacement before reaching 50 years of age. The actual longevity of a watermain depends on several factors, including pipe material, soil and site conditions, installation quality, and operating pressures, etc.

2. The infrastructure is owned by the Nanoose Bay Peninsula Water Service Area and funded by the taxpayers.

3. Yes, the Gracewood lots will be included for loan repayment. 

4. There are proper QA/QC processes in place to ensure adherence to the RDN utility standards.

Under this bylaw, the costs associated with providing this service are recovered through a parcel tax, with each property within the service area paying an equal share of the total costs. This parcel tax applies to all eligible properties within the service area, including commercial properties.

1. The 2,574 properties represent the current number of parcels within the Nanoose Bay Peninsula Water Service Area (NBPWSA). The only criteria is that these properties are included in the NBPWSA and collectively fund the operation, maintenance, and capital improvements of the NBPWSA water system.

2. At this time, the RDN is not aware of any other prematurely failing watermains in the Fairwinds neighbourhood (assuming "Fairview" was intended to refer to Fairwinds). Any future water system infrastructure repairs or replacements would be funded by all parcels within the Nanoose Bay Peninsula Water Service Area and, currently, this service area includes 2,574 parcels. 

3. Each service within the Regional District is operated as a financially separate entity under the Local Government Act. As a result, properties that do not participate in or receive a particular service do not contribute to its costs. This ensures that the costs of providing a service are borne by the properties that benefit from that service.

4. Although the watermain is located in a specific area, it forms part of an interconnected water distribution system that serves the entire Nanoose Bay Peninsula Water Service Area. A failure at any point in the system can affect overall service reliability, water quality, and operational performance for all users. In addition, repeated emergency repairs, service disruptions, and ongoing road restoration work increase operating and maintenance costs for the water system as a whole. Replacing this watermain can help reduce future repair costs, improve system reliability, and avoid more costly emergency interventions. Since each water system has a single operational budget, these costs are ultimately borne by all users within the service area.

1. This watermain was originally constructed by the Carmichael Road/Collingwood Dr subdivision developer (or a contractor hired by this developer) as part of the subdivision development conditions and, later, transferred the ownership to the RDN for operation and maintenance. 

2. While we have a reasonable understanding of the factors contributing to the watermain failure, we do not have sufficient evidence to conclusively establish negligence or assign liability to any party involved in the original construction. In addition, watermain construction is typically subject to a maintenance or warranty period of 1-2 years, during which the contractor is responsible for correcting any deficiencies. This watermain was installed approximately 36 years ago, in 1990, and any applicable warranty period expired decades ago.

3. Our municipal insurance policy does not cover repairing or replacing a watermain that has failed due to deterioration, settlement or historical construction deficiencies.

4. The failures of the Carmichael Road watermain have not been caused due to a capacity issue. New subdivisions are approved only after ensuring sufficient capacity is in the existing infrastructure. 

5. A watermain failure at any location within the water system can affect the reliability and safety of the entire system. Watermain breaks can increase the risk of contamination entering the distribution network and may impact service delivery to all users in the water system. In addition, repeated emergency repairs, service disruptions, and ongoing road restoration work increase operating and maintenance costs for the water system as a whole. Addressing the underlying issue through a permanent solution can help reduce future repair costs, improve system reliability, and avoid more costly emergency interventions. Since the Nanoose Bay Peninsula water system has a single operational budget, these costs are ultimately borne by all users within the Nanoose Bay Peninsula Water Service Area. 

The $86/year repayment amount was estimated based on 2,574 properties. The final annual repayment amount will be calculated based on the exact number of properties in the Nanoose Bay Peninsula Water Service Area at the time of project completion.

The length of watermain proposed for replacement is 510 m, and the proposed pipe size is 200 mm (8-inch) diameter, which is the same as the existing pipe size. 

1. This project should take approximately two years from initiation to completion. If the referendum is successful, archaeological investigations, surveying, detailed design, and tendering activities would be carried out in 2027 and the construction would take place in 2028. Construction is currently estimated to take approximately 5-8 months to complete, although the schedule may vary depending on factors such as the contractor’s schedule, permit approval, material procurements, and site conditions, etc.

2. Some disruption in vehicle traffic can be expected during construction. Prior to the start of construction, a traffic management plan will be completed to help minimize impacts on local residents and road users. In addition, a construction permit from the Ministry of Transportation and Transit will be obtained before work begins.

Poor workmanship and inadequate Quality Assurance & Quality Control (QA/QC) practices may have contributed to this premature watermain failure; however, it cannot be concluded with certainty that these are the only contributing factors. Watermain installation standards for bedrock conditions and steep-sloped terrain have also evolved significantly over the past 30 to 40 years. Current construction practices are more rigorous and comprehensive, incorporating detailed design reviews, ongoing site inspections, and stringent QA/QC testing to verify that construction activities comply with applicable standards, specifications, and industry best practices.

The standard warranty and maintenance period is one year following construction. During this period, the original contractor is responsible for repairing any deficiencies identified in the work.

1. The annual cost to each property in the case of reserve accumulation can’t yet be determined. The cost would depend on the planned construction year, inflation, cost escalation, and number of properties in the service area in the future years. 
2. Based on our assessment, implementing this project in 2027-2028 is the most responsible course of action.  Construction cost escalation is expected to continue due to inflationary increases and delaying the project would almost certainly increase the operational costs to taxpayers. 
3. Following the 2025 watermain break, the provincial Ministry of Transportation and Transit (MoTT) agreed to defer permanent road repairs for a limited period pending replacement of the watermain. If the replacement project is delayed, MoTT may require the RDN to complete permanent road restoration sooner, particularly if road conditions resulting from previous watermain failures continue to deteriorate. Repaving the road without first addressing the deficient watermain would not only increase operational costs but could also expose the RDN to liability related to property damage claims arising from future failures. Such costs would ultimately be borne by taxpayers. Repeated watermain failures also present a public health risk. Each break introduces a potential contamination pathway that could compromise water quality of the entire water system.
4. At this time, the RDN is not aware of any other prematurely failing watermains in the Fairwinds neighbourhood. 
5. If long-term borrowing is approved through the referendum, the RDN will retain an external engineering consultant to complete the detailed survey, design, and tender preparation for the watermain replacement project. To date, the preliminary assessment and project development work have been completed by RDN's in-house professional staff. The RDN is also advancing its asset management program to systematically renew infrastructure based on asset condition, risk, and expected service life. Each year, contributions are made to capital reserve funds to support the planned replacement and renewal of infrastructure assets. These reserves are intended to help fund future capital projects and reduce the financial burden on taxpayers over the long term.

The annual cost to each property in the case of reserve accumulation would depend on the planned construction year, cost escalation, and number of properties in the service area in the future years. Based on our assessment, implementing this project in 2027-2028 is the most responsible course of action. Given that this watermain has had two failures within a relatively short period, it is reasonable to expect additional failures in the near future if the full length of the watermain is not replaced. Since this watermain is located in a steep longitudinal grade, a failure at any point along Carmichael Road would allow water to flow downhill, potentially causing damage to the asphalt over a significant portion of the road. Repeated failures would result in ongoing asphalt repairs and repaving, increasing operational costs that would ultimately need to be funded through taxation. These additional costs would be incurred on top of the tax increases required to support annual reserve contributions if long-term borrowing is not approved through the referendum. In addition, following the 2025 watermain break, the Ministry of Transportation and Transit (MoTT) agreed to defer permanent road repairs for a limited period pending replacement of the watermain. If the replacement project is delayed, MoTT may require the RDN to complete permanent road restoration sooner, particularly if road conditions resulting from previous watermain failures continue to deteriorate. Repaving the road without first addressing the deficient watermain would not only increase operational costs but could also expose the RDN to liability related to property damage claims arising from future failures. Such costs would ultimately be borne by taxpayers. Repeated watermain failures also present a public health risk. Each break introduces a potential contamination pathway that could compromise water quality of the entire water system.

Long-term borrowing through the Municipal Finance Authority is the most cost-effective funding approach. Construction cost escalation is expected to continue due to inflationary increases and the delaying of the project would certainly increase the operational cost, as explained above.