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Regional District of Nanaimo to borrow money to pay for Whiskey Creek water system upgrade

Island Health wants permanent solution to area’s water issues
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The Whiskey Creek Water Service Area is scheduled for a much-needed upgrade to meet Island Health’s requirement deadline.

The facility has been under notice from Island Health to address deficiencies in the water supply since 2013. The water supply system to Whiskey Creek has required improvement since 2012.

In 2021, the Regional District of Nanaimo (RDN) commissioned a new groundwater source, but due to lack of funds, a temporary overland transmission water main and portable diesel-powered electric generator as a power source were installed.

Island Health issued an operating permit for the new groundwater source late last year, but it includes a requirement that the RDN install a permanent transmission water main before Dec. 31, 2022.

In 2020, the RDN received $931,000 in grant funding for the project under the Investing in Canada Infrastructure Program - Rural and Northern Communities to pay to convert the temporary system into a permanent operation.

READ MORE: Whiskey Creek still not able to draw clean drinking water

The project was put to tender and the RDN received two price quotations. But they were way above the amount earmarked for the work.

To make up for the shortfall, the RDN staff proposed a short-term loan of $200,000 on behalf of the property owners that are in the area serviced by the water system. As well, staff suggested $46,000 from the Whiskey Creek Water Service Area Capital reserve to be allocated to the project. These would allow the project cost to increase to $1,177,000.

Close to 130 parcels in the service area would be impacted by the loan. Once approved by the RDN board, owners can expect to see their rates go up by approximately $350 to $375 per parcel in the next five years. The current tax amount being paid by residents is approximately $970.

Staff indicated the permanent system will reduce operating costs because funds to pay for temporary equipment rentals, fuel and purchased bulk water will be eliminated.

The Whiskey Creek area had to endure high turbidity in its Crocker Creek water supply, which happens often during the rainy season. It got worse in 2020, which led to the RDN trucking in water to keep the reservoir full.

Staff recommended awarding the construction contract to Tritech Group Ltd at a total value of $997,403.27, not including the GST.

The RDN board authorized borrowing up to $200,000 and also additional funding of $46,000 to be drawn from the Whiskey Creek Water Service Area Capital reserve.

Michael.Briones@pqbnews.com

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Michael Briones

About the Author: Michael Briones

I rejoined the PQB News team in April 2017 from the Comox Valley Echo, having previously covered sports for The NEWS in 1997.
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