FAQs

The Cowichan Valley Regional District (CVRD) is governed by a 16-member Board of Directors from four municipalities; the Town of Lake Cowichan, the Town of Ladysmith, the City of Duncan and the Municipality of North Cowichan, and an elected director from each of the nine electoral areas.  

The regional district provides a wide range of services to its residents.  Some of these services are mandated by the Province (solid waste, emergency planning, land use planning), but the majority of services provided are determined by the Board and can only be provided with the approval of the electors who will receive the service.  A water system is an example of a CVRD service that is provided following approval of the electors.  

The current owners of the system approached the CVRD about purchasing the water system. 

To gain a better understanding of the water system, the CVRD engaged the services of an engineering consultant to complete a feasibility study of the system. The study identified any required upgrades and options for expansion of the system as well a condition assessment of the existing infrastructure. Through the study and further analysis, it was determined that CVRD (public) ownership would provide the best option for long-term water sustainability for the community.  Proximity to other CVRD-operated water systems and future amalgamation possibilities are also a major benefit for the acquisition.  

Amalgamation of smaller systems is desired as increasing a customer group size that pays into one larger system can keep customer rates more stable, provide better economic value to the group, and may increase overall efficiencies to the system.

• As a not for profit organization, CVRD operates its water systems with public health as the priority.

• Experience and knowledge:  The CVRD operates 20 water systems within the region. The Utility Operators are qualified under the BC Environmental Operators' Certification Program, as required by Provincial regulations and are supported by professional technologists and engineers.

• The CVRD water systems use continuous electronic monitoring of all critical infrastructure enabling an immediate response to a problem 24 hours per day, 7-days a week.

• Long-term planning: the CVRD integrates land use planning and the Official Community Plan into the decision-making process for utility servicing and expansion of service areas. 

• The CVRD can apply for grant funding programs for system upgrades and has access to lower interest loans through the Municipal Finance Authority.

• The CVRD is part of the Municipal Insurance Association of British Columbia which provides stable rates for liability and property insurance as well as providing valuable resources for risk management.

The purchase price is $3.2 million.  This purchase price includes approximately $9 million in assets including: approximately 8.4 km of watermain, fire hydrants, water service connections, pressure reducing station, 2 pump stations, 3 water storage reservoirs, and the water treatment building, treatment system and land.

The 2024/2025 annual rate would be $1300/year. As the CVRD must borrow the funds to purchase the water system, borrowing over the long-term means a lower annual repayment amount than borrowing over the short-term; therefore, a 25-year term is anticipated to be used to repay the funds. Borrowing for 25 years at an estimated interest rate of 5.2% will equate to $472/year in debt repayment charges. The remaining $828/year would be used for operating and maintaining the system.  

The following table shows a comparison of debt repayment charges for 20-25-30-year terms:

*Anticipated term

**A 30-year term is not recommend as it would exceed the lifecycle of most of the assets.

As per the Community Charter and Local Government Act, if a local government wants to borrow for a term longer than 5 years, it has to adopt a bylaw and that bylaw has to be approved by the electors or property owners of the system.   Further establishment of the new service must also be approved by the electors that will be affected by service.  The legislation is very specific on how a regional district can secure this public approval. 

The options are: an Alternative Approval Process (AAP); Petition Process; or Referendum.  An AAP will likely be the method to obtain public approval for the CVRD acquisition of Shawnigan Village Waterworks.  

An AAP is a form of approval process that allows electors to indicate they are against moving ahead with a proposal. It is the people who do not support the CVRD acquisition that must sign an ‘elector response form’ indicating their opposition.

If 10% or more of eligible electors complete and submit the response form, then the CVRD must either abandon the bylaws or put them to Referendum. If less than 10% of eligible electors complete and submit the response form, then elector approval is received and the purchase can be finalized.

Eligible electors can be either resident electors OR non-resident property electors who meet the criteria to vote in an election, pursuant to Sections and 65 and 66 of the Local Government Act.

A resident elector is an individual who is entitled to sign an elector response form during an AAP by virtue of living within the Shawnigan Village Waterworks service area. When signing an elector response form, a resident elector must:

• Be 18 years of age or older;
• Be a Canadian citizen;
• Have lived in BC for the last 6 months;
• Be a resident of the Shawnigan Village Waterworks service area;
• Not be disqualified by any enactment from voting in an election or otherwise disqualified by law.

A non-resident property elector is an individual that does not live in the Shawnigan Village Waterworks service area and who is entitled to sign an elector response form during and AAP by virtue of owning property in the Shawnigan Village Waterworks service area. When signing an elector response form, a non-resident property elector must:

• Not be entitled to register as an resident elector in the Shawnigan Village Waterworks service area;
• Be 18 years of age or older;
• Be a Canadian citizen;
• Have lived in BC for the last 6 months immediately prior to signing the response form;
• Have owned real property in the Shawnigan Village Waterworks service area for at least 30 days immediately prior to signing the response form;
• Not be disqualified by any enactment from voting in an election or otherwise disqualified by law.

A Petition Process requires registered owners to sign a petition if they are in favour of the CVRD borrowing funds to acquire, upgrade and maintain the Shawnigan Village Waterworks System. The Petition Process is successful if 50% of registered owners that would be responsible to pay for the proposed service representing 50% of the assessed value of all land and improvements within the proposed service area sign a petition in favour of the proposed service.   

The petition process is labour intensive and more expensive than the AAP process.  Although the CVRD would prepare and distribute the petition forms, the CVRD does not lead the petition process as it is the residents that must petition the CVRD for the service.  Typically, community ‘champions’ are necessary to liaison with property owners to ensure that they have returned their signed petition by the deadline date noted on the form.

A referendum is the same as an Election and must be conducted in the same manner. Cost for holding an referendum would be much higher than conducting an AAP or Petition Process.  Costs for holding a Referendum separate from the General Local Elections are estimated at $80,000 to $100,000.

Pending a successful public approval process the anticipated date for CVRD acquisition is December 1, 2024.

The Comptroller of Water Rights will need to approve the acquisition.  The Comptroller of Water Rights is responsible for the regulation of privately-owned water utilities in BC.  

It is not anticipated that the Comptroller of Water Rights will have any concerns with CVRD acquiring the water utility and it is anticipated that approval will be granted.

Reserve funds will be transferred to the CVRD and kept in the budget for the water system.  Some of the money will be used on the upgrades identified in the feasibility study and the remaining money will be kept in the reserve fund for the water system.

No, public approval is required. If public approval is not given, then the CVRD does not have authority to proceed with the purchase.  The water system will remain under ownership and operation of Lidstech Holdings ltd. 

Long-term, the CVRD will explore a plan to amalgamate Shawnigan Village Water with other existing CVRD-operated water systems that are in close proximity to Shawnigan Village. 

Possible amalgamations include: Shawnigan Lake North Water System, Burnum Water System and Carlton Water System.

The water system will remain under the ownership of, and operated by, Lidstech Holdings Ltd.  The CVRD understands that the current owners may look to sell to a private water utility.  The current owners have also expressed that rising costs and a shortage of employees to keep up with regulatory compliance has resulted in increases to their operating expenses of approximately 40%. Under a private utility, fee increases are subject to approval by the Comptroller of Water Rights.

A public meeting for local residents will be held March 11, 2024, from 7 PM to 9 PM at the Shawnigan Lake Community Centre located at 2804 Shawnigan Lake Road, Shawnigan Lake, BC.

CVRD staff will present more information about the proposed acquisition and public approval process.  A Q&A session will follow the presentation.