FAQ's

The proposed project is a full replacement of 510 metres of watermain and related utilities on Carmichael Road, between Collingwood Drive and Cambridge Road, and the associated road and pavement restoration.

Two different sections of watermain on Carmichael Road have experienced significant failures in recent years. In 2019, a 2.4-metre-long (8-foot) split occurred in the pipe. In 2025, a nearby section experienced a 6.1-metre-long (20-foot) split. Both breaks caused the asphalt to heave, interrupted water service to dozens of properties, and damaged the road base and sidewalk base materials. The RDN has identified full watermain replacement as the most practical long-term solution to reduce the risk of future watermain failures, reduce emergency repair costs and service interruptions, to address erosion, void and road/sidewalk support issues, and to reduce the risks to traffic access, property and possible water system contamination.

Pipe bedding is the granular material placed around and beneath a pipe to support it evenly. If bedding is inadequate, the pipe may be more likely to crack or fail. During the 2019 and 2025 emergency repairs, staff observed areas where the pipe was resting directly on large, angular rocks and did not appear to have adequate granular bedding. Since similar conditions were seen at more than one break location, the RDN believes there is an increased likelihood that additional breaks could occur in this corridor.

When a pressurized watermain breaks, flowing water can wash away soil and granular material. On a steep road such as Carmichael Road, erosion can leave voids under the road, reducing support and potentially leading to further damage.

At this time, the RDN is not aware of any other prematurely failing watermains in the Fairwinds neighbourhood. The RDN is advancing its asset management program to renew infrastructure based on condition, risk, and expected service life.  Each year, contributions are made to capital reserve funds to support future infrastructure replacement and renewal. Construction standards have evolved over the past 30 to 40 years. Current practices include more detailed design reviews, site inspections, and quality control testing.

The watermain was originally constructed in 1990 by the subdivision developer or its contractor as part of the subdivision development requirements. It was later transferred to the RDN for operation and maintenance. Based on the information available, the RDN does not have sufficient evidence to assign liability for the current condition of the watermain.  Any applicable warranty would have expired decades ago.

The estimated total project budget is $1,753,924. Final costs would depend on tender pricing, construction conditions, and the borrowing rate in effect when financing is arranged.

The RDN has reviewed potential grant and funding opportunities. No grant funding is available for this project at this time. 

The RDN is proposing to borrow the project funds through the Municipal Finance Authority. This would allow the work to proceed sooner and spread the cost over time, rather than delaying the project until enough reserve funding is available.

The Municipal Finance Authority of British Columbia (MFA) was created in 1970 and provides pooled, low-cost borrowing to local governments in B.C. 

A small reserve fund is available for projects in the Nanoose Bay Peninsula Water Service Area.  However, these funds have already been allocated to other water projects within the service area.

Project costs would be shared among the properties in the Nanoose Bay Peninsula Water Service Area, subject to the approved borrowing bylaw and funding process.  There are currently approximately 2,574 parcels in the service area. The final cost per parcel would be based on the number of parcels in the service area when the project is completed.

The Carmichael Road watermain is an asset that belongs to the entire Nanoose Bay Peninsula Water Service Area. Improvements made within the water service area are paid for by all participants in the water service area. 

Based on the current Class C estimate, a Municipal Finance Authority lending rate of 4.20%, and a 10-year amortization, the cost would be approximately $86 per year per parcel. Property owners could also choose to pay an estimated lump sum of approximately $681 to avoid interest. 

No. Under the water service area bylaw, the costs are recovered through a parcel tax (not a property-value tax), with each property within the service area paying an equal share of the total costs. This parcel tax is applied equally to all taxable parcels within the service area, including condos, townhomes, single-family residential lots, and commercial properties. 

If costs begin to approach the approved budget, the RDN has the option to reduce the scope of the project, pause the work, or temporarily suspend the project until additional funds can be secured. 

If the project proceeds, property owners would not be required to pay their share until construction is complete, and all of the project costs have been accounted for.

If the project proceeds and a property owner does not choose the lump sum payment option, the annual debt repayment of approximately $86 per year would remain on that property’s tax roll for the 10-year repayment period. Once the watermain replacement charge is added to the tax roll, it cannot be removed or paid off early.

A referendum is a public process that allows electors of a specific area to indicate whether they are for or against a local government proposal moving forward.  Votes can be cast by answering the question on the voting slip, which will be, “Are you in favour of the Regional District of Nanaimo adopting “Nanoose Bay Peninsula Water Service Area Carmichael Road Watermain Replacement Loan Authorization Bylaw No. 1969, 2026”, which will authorize the Regional District of Nanaimo to borrow up to one million, seven hundred and fifty-three thousand, nine hundred and twenty-four dollars ($1,753,924), plus interest, repayable over a period of no more than ten (10) years, to finance the Carmichael Road Watermain Replacement project in the Nanoose Bay Peninsula Water Service Area?”

• There are three steps in the referendum process:

1. Notification: Local governments must publish notice about the proposal to the community in accordance with RDN Public Notice Bylaw and Section86(3.1) of the Community Charter. 
2. Referendum Question: The referendum question will be published ahead of time, so the electors know what to expect to see on the voting slip on voting day. 
3. Certification: When general voting day is over, the local government corporate officer must determine and certify whether elector approval has been obtained. Elector approval in a referendum is obtained if more than 50% of the electors have voted YES on the referendum question on voting day. 

An individual who is entitled to vote in general local elections, by-elections, or assent voting can vote in a referendum by virtue of living or owning property within the area defined for the referendum, which is the Nanoose Bay Peninsula Water Service Area. Individuals must meet the following requirements to participate in the referendum:

• Be 18 years of age or older;
• Be a Canadian citizen;
• Have been a resident of British Columbia for at least six months;
• Be a resident or property owner in the Nanoose Bay Peninsula Water Service Area); and 
• Not be disqualified from voting under the Local Government Act, or any other enactment. 

The referendum will be held on the next general local election date, October 17, 2026.

On general local election day (October 17, 2026), votes can be cast by answering the question on the voting slip. Vote YES if you support borrowing for the project. Vote NO if you oppose borrowing for the project.

If the referendum is successful, the RDN would advance the project as soon as reasonably possible, including survey, design, procurement, and construction planning.

The annual cost to build up reserve funds cannot be determined at this time. The cost would depend on the planned construction year, inflation, construction cost escalation, emergency repair costs, and the number of properties in the service area at that time.  Completing the project sooner could help reduce the risk of additional emergency repairs and future cost increases.

Once the project funds have been secured, the RDN could begin design, procurement, and construction scheduling. Survey and design work would take place in 2027, and construction is expected to occur between late 2027/early 2028 and fall 2028.

Yes. Some temporary traffic disruptions and construction-related impacts would be expected during the work. The RDN would aim to manage access carefully and provide advance notice of construction staging, timing and any temporary restrictions.

Yes. Water service will be temporarily interrupted during tie-ins to the new watermain. Advance notice of these interruptions will be given to residents.

Yes. Emergency access would be maintained during construction. One lane of traffic is expected to remain open at all times while construction is underway.

Road restoration is expected to include rebuilding disturbed base materials, repaving and repairing affected curb, gutter, sidewalk, boulevard and stormwater features, as needed. The exact scope would be confirmed during detailed design and construction planning.

At this stage, the proposed project relates mainly to public infrastructure within the road corridor. If any property-specific access, service connection, or construction coordination becomes necessary, affected residents would be contacted directly.