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River’s Edge Water Quality Improvement Project

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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:

Already spent on engineering in 2022/23$61,414
Electoral approval costs (petition) from Operating budget$10,000
Internal Capital Admin. Charge from Operating budget$34,543
Electoral Area G Community Works Funds (grant)$670,000
Growing Communities Fund (grant)$280,000
Long-term borrowing by property owners$2,440,727
Water Quality Improvement Project Total Budget
$3,496,684


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.

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:

Already spent on engineering in 2022/23$61,414
Electoral approval costs (petition) from Operating budget$10,000
Internal Capital Admin. Charge from Operating budget$34,543
Electoral Area G Community Works Funds (grant)$670,000
Growing Communities Fund (grant)$280,000
Long-term borrowing by property owners$2,440,727
Water Quality Improvement Project Total Budget
$3,496,684


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.

Questions and Answers

If you have any questions about the process or project, please add them here and someone will be back to you with a reply shortly.

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  • Share I just need clarification on what happens to the above grant money if the vote is ‘no’ to proceed with the wells as proposed? Murray alluded to the fact that the money would go back to where you wrestled it from and you would have to negotiate it back again for a different well scenario or that it could possibly be lost to us. Is there a possibility that somehow it could be used up first and then go to petition for the rest if productive wells aren’t found? on Facebook Share I just need clarification on what happens to the above grant money if the vote is ‘no’ to proceed with the wells as proposed? Murray alluded to the fact that the money would go back to where you wrestled it from and you would have to negotiate it back again for a different well scenario or that it could possibly be lost to us. Is there a possibility that somehow it could be used up first and then go to petition for the rest if productive wells aren’t found? on Twitter Share I just need clarification on what happens to the above grant money if the vote is ‘no’ to proceed with the wells as proposed? Murray alluded to the fact that the money would go back to where you wrestled it from and you would have to negotiate it back again for a different well scenario or that it could possibly be lost to us. Is there a possibility that somehow it could be used up first and then go to petition for the rest if productive wells aren’t found? on Linkedin Email I just need clarification on what happens to the above grant money if the vote is ‘no’ to proceed with the wells as proposed? Murray alluded to the fact that the money would go back to where you wrestled it from and you would have to negotiate it back again for a different well scenario or that it could possibly be lost to us. Is there a possibility that somehow it could be used up first and then go to petition for the rest if productive wells aren’t found? link

    I just need clarification on what happens to the above grant money if the vote is ‘no’ to proceed with the wells as proposed? Murray alluded to the fact that the money would go back to where you wrestled it from and you would have to negotiate it back again for a different well scenario or that it could possibly be lost to us. Is there a possibility that somehow it could be used up first and then go to petition for the rest if productive wells aren’t found?

    George Garrett asked 4 months ago

    If the petition results in a “no” vote by property owners, the project in its current form would not take place and grant money earmarked for River’s Edge would no longer be accessible for this project. Grant money is currently available from the Electoral Area G Community Works Fund ($670,000) and Growing Communities Fund ($280,000). Grant money in place for the River’s Edge Water Quality Improvement Project can only be used for the identified project, which depends on petition approval from property owners in the area to move forward. It is not possible to access any grant funds before project approval is gained via petition.

  • Share What assurances do we have that the budget on this project won’t end up like almost every other municipal run project? Way over budget? Who will be managing it? Indépendant 3rd party with performance clauses or RDN staff. If we basically have to pay for it all, we should have a say in that and RDN staff or any municipal government for that matter has a horrible record for staying on budget. What contingencies have they accounted if drilling is tougher than expected or other infrastructure works aren’t as planned. If it is going to become more expensive, we can drill our own wells so we need assurances. on Facebook Share What assurances do we have that the budget on this project won’t end up like almost every other municipal run project? Way over budget? Who will be managing it? Indépendant 3rd party with performance clauses or RDN staff. If we basically have to pay for it all, we should have a say in that and RDN staff or any municipal government for that matter has a horrible record for staying on budget. What contingencies have they accounted if drilling is tougher than expected or other infrastructure works aren’t as planned. If it is going to become more expensive, we can drill our own wells so we need assurances. on Twitter Share What assurances do we have that the budget on this project won’t end up like almost every other municipal run project? Way over budget? Who will be managing it? Indépendant 3rd party with performance clauses or RDN staff. If we basically have to pay for it all, we should have a say in that and RDN staff or any municipal government for that matter has a horrible record for staying on budget. What contingencies have they accounted if drilling is tougher than expected or other infrastructure works aren’t as planned. If it is going to become more expensive, we can drill our own wells so we need assurances. on Linkedin Email What assurances do we have that the budget on this project won’t end up like almost every other municipal run project? Way over budget? Who will be managing it? Indépendant 3rd party with performance clauses or RDN staff. If we basically have to pay for it all, we should have a say in that and RDN staff or any municipal government for that matter has a horrible record for staying on budget. What contingencies have they accounted if drilling is tougher than expected or other infrastructure works aren’t as planned. If it is going to become more expensive, we can drill our own wells so we need assurances. link

    What assurances do we have that the budget on this project won’t end up like almost every other municipal run project? Way over budget? Who will be managing it? Indépendant 3rd party with performance clauses or RDN staff. If we basically have to pay for it all, we should have a say in that and RDN staff or any municipal government for that matter has a horrible record for staying on budget. What contingencies have they accounted if drilling is tougher than expected or other infrastructure works aren’t as planned. If it is going to become more expensive, we can drill our own wells so we need assurances.

    Cparcher asked 4 months ago

    The RDN would be managing the construction budget for this project if it is approved. We continually monitor the costs and cost trends in our projects. If an event or a trend indicates we may run out of budget prior to completion of the project, we will take steps to adjust the scope to avoid that happening, or temporarily halt the project and seek more cost certainty. All construction work is publicly tendered to attain the lowest cost that the market can provide and to maximize cost certainty once the work is awarded.  

  • Share Where are additional wells being drilled? As an adjacent property owner with a large well for for over 35 years, what assurance do we have that you will not affect our well on Facebook Share Where are additional wells being drilled? As an adjacent property owner with a large well for for over 35 years, what assurance do we have that you will not affect our well on Twitter Share Where are additional wells being drilled? As an adjacent property owner with a large well for for over 35 years, what assurance do we have that you will not affect our well on Linkedin Email Where are additional wells being drilled? As an adjacent property owner with a large well for for over 35 years, what assurance do we have that you will not affect our well link

    Where are additional wells being drilled? As an adjacent property owner with a large well for for over 35 years, what assurance do we have that you will not affect our well

    Jtiglmann asked 4 months ago

    Please refer to the Document Library of the project Get Involved page to find a map showing the existing and preliminary proposed well site locations in River’s Edge. Additional wells in the service area would be drilled into the same aquifer that the current production wells access. We are not planning to withdraw any additional water from the aquifer we are currently drawing from, rather the same amount but from distributed locations throughout the aquifer. The provincial government, through the groundwater licensing and protection regulations, has jurisdiction over groundwater allocation.  

Page last updated: 01 Nov 2024, 02:55 PM