River’s Edge Water Quality Improvement Project

The Regional District of Nanaimo (RDN) is proposing a water quality improvement project in the River’s Edge Water Service Area (REWSA) due to increasing chloride (salt) levels within the aquifer that provides drinking water to residents. The proposed project would include the installation of three to four more wells in various service area locations. Installing more wells over a greater area will allow each well to be pumped at a slower rate, which will reduce the rate of chloride contamination within the aquifer. Approval to borrow project funds from the Municipal Finance Authority on behalf of the property owners within the REWSA is required before construction can occur. A mailed petition process beginning August 16, 2024, and closing September 16, 2024, was used to decide if REWSA property owners support this project.

Background

In 2021, the RDN commissioned a hydrogeological study of the groundwater that supplies water to the REWSA. The study concluded that a hydraulic connection exists between the aquifer that provides the REWSA with drinking water and a nearby aquifer high in chloride. This connection is causing chloride levels to rise in the aquifer that serves the REWSA. If nothing is done, the drinking water in River’s Edge will require treatment via a desalination facility within ten years. A desalination facility would require approximately $6 million to build and would incur significant annual operating, maintenance and renewal costs. Desalination facilities also generate concentrated effluent that is difficult to dispose of, especially where no community sewer collection or treatment is available.

To avoid the eventual need for desalination, the report recommends drilling several new wells located far away from each other and the existing production wells. By pumping the same quantity of water, but from several widely spaced wells, the rate of chloride concentration increase would be slowed down and desalination would not be needed for 80 to 100 years at current water consumption rates. If water consumption rates are reduced, primarily in the summer, this time would be extended further. This solution, while still requiring a capital investment of several million dollars, does not carry any significant annual operating, maintenance or renewal expenses and does not create a waste disposal problem.

Project Funding

While a project like this is cost-intensive, $950,000 in grant funding has already been allocated to this project if it goes ahead. The remaining project funds could be borrowed from the Municipal Finance Authority on behalf of the River’s Edge owners at a low interest rate. The breakdown of anticipated project funding is as follows:

As with all RDN services, funding for infrastructure improvement projects requires contributions from the service area participants. Borrowing $2,440,727 from the Municipal Finance Authority would be needed to carry out this project. Using the current Municipal Finance Authority lending rate of 4.6 percent and a 25-year amortization period results in a total cost of $15,546 per property, or an estimated annual debt repayment of $1,110 for each of the 157 properties in the River’s Edge water service area. The actual amount would be slightly different than this depending on the lending rate at the time of borrowing (after construction has been completed). Property owners would then be given the option to pay their share of the project costs upfront as a lump sum (to avoid interest charges) or to amortize the amount on their taxes over 25 years.

REWSA property owners have been asked to vote via a mailed, paper petition to decide if the RDN can borrow funds on their behalf to complete this project. Petition support is deemed to be sufficient if more than 50 per cent of owners are in favour, and those owners’ properties represent at least 50 per cent of the assessed property and improvement values in the area. If supported by property owners and approved by the RDN Board of Directors, funding would be paid by all members of the REWSA, not just those who voted in support of the project. If the project doesn’t receive the required level of support, it will not proceed.

Four in-person community information sessions were held in the River’s Edge area in July and August 2024 to share project information and give residents an opportunity to discuss the project directly with RDN Water Services staff.

For more information and to Get Involved:

• Visit our What's New updates that will share information on this page as the project moves forward;
• Explore this webpage to find out more about the proposed water quality protection project including staff reports and other documents in the document library;
• Stay informed by clicking on subscribe, to leave your email address and receive email updates as the project moves forward;
• Check out the FAQ's which provide answers to common questions on the Petition Process and the proposed project;
• Ask a question and we will do our best to answer it and share the information with all.