FAQ's

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

Two different sections of watermain on Carmichael Road have experienced extraordinary failures in recent years. In 2019, a 2.4m long (8ft) split in the pipe occurred.  Then, nearby in 2025, a 6.1m long (20ft) split in the pipe occurred. Both breaks caused uplifting (heaving) of the asphalt, and water supply was interrupted to dozens of properties. Significant asphalt damage occurred, along with some erosion of the road base and adjacent sidewalk base materials. The RDN has identified full 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 water quality.

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 proper granular bedding. Since similar conditions were seen at more than one break location, the RDN believes there is a strong likelihood for additional breaks to 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 which reduces support and potentially leads to further damage.

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.

Grants and other funding sources have been pursued. There are no grants 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 amount of 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.

The project costs would apply to approximately 2,600 properties within the Nanoose Bay Peninsula Water Service Area, subject to the approved borrowing bylaw and funding process.

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. 

The Class C estimate for the watermain replacement project is $1,753,924. Using the current Municipal Finance Authority lending rate of 4.20% and a 10-year amortization would result in a debt repayment of approximately $86 per year. 

Yes. At the end of construction (if the project proceeds), property owners would be given the opportunity to pay for their share of the project cost (debt) as a lump sum, thereby avoiding interest charges. Doing so would result in a one-time payment of approximately $681 per property. 

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

If the project proceeds, no costs will be payable by each Nanoose Bay Peninsula Water Service Area property owner until the construction has been completed, and all of the project costs have been accounted for.

If the project goes ahead and an existing property owner does not elect to pay their portion of the construction debt as a lump sum, the annual debt repayment of approximately $86 per year will stay on that property’s tax roll as a watermain replacement charge for the stated repayment period of 10 years. Once the watermain replacement charge is added to a property owner’s 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:

• 18 years of age;
• Canadian citizen;
• Resident of British Columbia for at least six months;
• A resident or property owner in the area defined for the referendum (in this case, the Nanoose Bay Peninsula Water Service Area); and 
• Must not be disqualified under the Local Government Act, or any other enactment from voting in an election, or be otherwise disqualified by law. 

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.

The RDN is proposing to advance the project as soon as reasonably possible. Survey and design work would begin in 2027, and construction would begin in late 2027 or early 2028 for 7-9 months.

Once the project funds have been secured, the RDN can immediately begin the design, procurement and construction scheduling. Survey and design work would begin in 2027, and construction would take place roughly from Nov/Dec 2027 to 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. 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.