Transcript Deep Bay Improvement District

Deep Bay Improvement District
November 20, 2013
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BSI Developed Wells
(suggested area)
Recommendations from hydrologists
(Pacific Hydrology and Guiton
Environmental Consulting) are that new
wells be developed outside the current
small well field of the District.
The area suggested could be on
BSI lands.
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Protecting the Water Supply
 Does the water supply need protecting?
 What would be the cost to replace the entire
infrastructure of DBID?
 What is the current status of bylaws?
 What bylaws are needed?
 Request that DBID servicing standards bylaw be
established for very large developments
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Does the water supply need
protecting?
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Does the water supply need
protecting?
 The RDN Bylaw 500 provides protection for areas
where the RDN provides water. The RDN provides no
protection to improvement districts or other water
purveyors.
 It is relatively rare for an improvement district to be
faced with a development that would more than
double demands for water.
 Developers are there to make money. Shortcuts will
be taken unless explicit rules are required.
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$$$
What would be the cost to replace
the entire infrastructure of DBID?
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What Is the Cost of a Water System?
Estimated Replacement Value
of DBID’s Infrastructure
From the Deep Bay Capital Replacement
Schedule: Original Cost to Build
 The estimated cost to build the
system uses the costs estimated
by the McElhanney Water
System Evaluation reported in
February 2008 (based on 2007
costs).
 These values were brought up to
2014 costs based on a 2%
compounded inflation rate/year.
 Wells built in 1973 cost
~$75,000
 Wells built in 1997 cost
~$145,000
 Wells brought on line 2013:
EPCOR $300,000
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2014 Estimated Replacement Value of
DBID Water Works (adjusted for inflation @2%/yr.)
Description
# Units
Unit Cost
Total Cost
New Wells
development
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$300,000
est. from EPCOR 2013
$2,100,000
Pipelines
18,930
meters
$625/m (2007)
$732/m (2014)
$13,862,676
Reservoirs
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$1,296,165 (2007)
$1,518,717 (2014)
3,037,433
Est. ?
2,000,000
Office/ Fire hall
$21,000,109
This is probably understating the replacement costs. With inflation compounding
at 2%/ year, the cost would go up by about $420,000/year.
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Original estimates were 4 times over current usage.
How Much Water Is Required
By BSI?
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Was BSI Acting in Good Faith?
The original request was for more than 22 L/s or 4 times
current usage. Was there a hidden agenda here to
obtain twice as much water than was necessary in order
to “transfer” what they didn’t need for the current
property to other properties they may develop within
the DB District?
There appears to be no protection in current DBID bylaws
to prevent “transfer”
of water
rights to additional
Lantzville-Nanaimo
Agreement
included:
properties owned by the developer
 Restrictions on provision of water (i.e., properties
within the boundaries of the District of Lantzville) and
no resale of water.
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RDN BYLAW NO. 500 SCHEDULE ‘7D’
COMMUNITY WATER SYSTEM STANDARDS
The RDN determines the requirement of “how much
water is required” not the developer.
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Phased Development Process
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However,
 Baynes Sound Investments (BSI) has just hired a new
hydrologist…Gilles Windling – GW Consultants
 GW Consultants are now testing Deep Bay’s water system-for “surplus” water
 This would indicate BSI is going for a “phased development”
pattern to get their foot in the door for a 700 unit proposal
 What are the potential ramifications to residents of Deep
Bay?
BSI will continue with their high density development
application and re-apply in the near future.
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Phased
Development
Process
Sometimes called “the
pay as you go” plan for
developers
 More than doubling the number of units currently
serviced by DBID would also more than double
demands for water. This would require a service
structure that includes:
•
•
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•
7 wells
Equivalent sized reservoirs to DBID
Pipelines within the strata itself
Pipelines to link to the DBID water system
Current estimated
replacement value of the
DBID infrastructure:
$21 million
• The developer will only be required to pay $6,500/unit
even if the actual cost to supply water services costs
much more. This payment includes infrastructure he
builds within the strata.
There is no timeline given for
this commitment in current
bylaws. Shouldn’t this
commitment only commit the
district to maybe 5 years?
RDN has requested a servicing commitment for the
full 700 unit development. This would be a legally
binding $21 million commitment for the DBID based
on doubling the infrastructure for DBID.
Phase I may only be for 10 units. DBID may receive
only $65,000
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“Surplus” Water
 It is not “surplus” water when engineered into a purveyor's
water system; the water supplier must plan for sufficient
water supplies over average daily requirement to provide
for:
1) Peak water usage after 150 days without rainfall
2) Expected growth from fill in lots and smaller subdivision of 2
to 10 lots
3) Extended dry periods that last 2 or more years without
sufficient precipitation to fully recharge the aquifer
Some developers attempt to call this engineered water supply “surplus”.
This is “water piracy” . Without good bylaws requiring large
developments to find and develop new water supplies then the district
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would be vulnerable to this form of piracy.
(more on this later)
What are DBID’s bylaws regarding
new developments?
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Current bylaws in Deep Bay Improvement District
Who is Responsible For Finding and
Developing New Sources Of Water
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Baynes Village Centre Water Services
Current process for the
development of new water
 Deep Bay Improvement District
finds the water, applies for
crown land approval, obtains
engineering services, obtains
hydrological services for well
drilling, hires the well driller…
etc.
 oops.. No water $$$
Costs to Find Water
 The management and
administration of the process
would likely require additional
staff time or possibly additional
staff
 What would be the result of not
being able to find additional water
supplies – after committing water
service to the development?
It now costs approximately $300,000 to bring
a new well into production. (EPCOR) 18
 Legal action by the developer may
result.
Deficient Bylaw
DBID Bylaws Regarding Developments
Bylaw 201: Comprehensive Capital Expenditure Charge “The capital
Theproviding
RDN has stated
expenditure charges may be fixed for the sole purpose of
funds
in Staff reports that
to the improvement district to pay the capital cost of providing,
all infrastructure
constructing, altering, or expanding water facilities in order
to service
must be completed
directly or indirectly, the development in respect to which the charges are
before construction
fixed” (March 2008 – now more than 5 years old)
of homes will be
Current charge: $6,500/unit
allowed to begin.
How is this bylaw
 Phased development:
going to work under
 Only 10 units built out of 700 – Charge: $65,000 this condition?
 Full Build out of development- Charge: $4,550,000
The application of this bylaw would not provide sufficient funds to
develop even one well in a phased development. There are no
timelines required regarding completion of the development. The
developer will profit when the land is19 sold with water rights.
Deficient Bylaw
DBID Bylaws Regarding Developments
Bylaw 169: Bare-Land Strata Subdivision Water
Regulations
6. To assure adequate maintenance of the distribution
mains, fire hydrants, and other fittings within the
subdivision, the improvement district may enter into
legal agreement with the Strata Corporation or strata
council respecting maintenance and repair of the works.
Problem:
• The distribution mains, etc., must become the property of the district – this
would include necessary right-of-ways for access and fire protection.
• The last phased strata development (36 units) utilizing this bylaw resulted in
incomplete payment of charges, legal actions and costs. What could
happen with a 700 unit strata?
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What bylaws are needed?
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Learning from other water purveyors
and their bylaws
REGIONAL DISTRICT OF NANAIMO
BYLAW NO. 500
SCHEDULE ‘7D’
COMMUNITY WATER SYSTEM STANDARDS
Both the RDN and DBID operate under the Local Government
Act. We can operate with similar bylaws and standards.
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RDN BYLAW NO. 500 SCHEDULE ‘7D’
COMMUNITY WATER SYSTEM STANDARDS
Features Not Found in DBID
Bylaws
In addition
 Explicit requirements for:
 The developer is required to
build the water system with
theses specifications
 Explicit requirements for:
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water demand
fire flows
Well drilling
Professional designs
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Water storage volume
Water distribution piping
Service connections
Fire hydrants
Valves & Fittings
Trenching and Backfill
Water meters
RDN BYLAW NO. 500 SCHEDULE ‘7D’
COMMUNITY WATER SYSTEM STANDARDS
The developer makes the financial commitment, not the community.
Who will own the water
system on completion?
Financial Commitment of the
Developer
 Transferring the Water System
 Completion Date requirement
that all work to be carried out
and completed by that date.
 If project is not completed by
the “Completion Date”, the
RDN may use the funds
secured by the Letter of Credit
to complete the work at the
expense of the Developer.
 Final Inspection
 Transfer Agreement by
Developer
 Maintenance Agreement
 Letter of Acceptance of the
Works by the RDN
 Dedications, easements and
right-of-ways
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RDN BYLAW NO. 500 SCHEDULE ‘7D’
COMMUNITY WATER SYSTEM STANDARDS
The Developer pays the costs for development, not the community.
Forms included in Bylaw 500
 Subdivision Servicing
Agreement
 Irrevocable Letter of Credit
 Letter of Assurance
 Certificate of Design
 Certification of Installed Works
 Fire Hydrant Use Permit
 Hydrant Certification Form
The developer pays for water used
during construction
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Transfer Agreement
System of Works
Certification of Installed Works
Maintenance Agreement
Wellhead Protection Report
Standby Irrevocable Letter of
Credit
 Latecomer Agreement
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RDN BYLAW NO. 500 SCHEDULE ‘7D’
COMMUNITY WATER SYSTEM STANDARDS
Appendix 1
Subdivision Servicing
Agreement
Developer Commitments
 That all works become the
property of the RDN
 That the Developer shall give all
prospective purchasers a copy of
this agreement and covenants
and bring to their attention that
this agreement restricts their
ability to apply for a building
permits.
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Appendix 2 & 3
Standard Drawings (16p)
Approved Products List (5p)
Appendix 4-6
Letter of Assurance (commitment of
compliance)
Certificate of Design
Appendix 7 & 8
Fire Hydrant Use Permit (charges
$2/cubic meter and damage deposit:
water used during project
development)
Fire Hydrant Certification
Appendix 9 & 13
Transfer Agreement
Maintenance Agreement
Various other required Agreements
This would prevent the developer from selling properties until the
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water supply has been completed.
RDN BYLAW NO. 500 SCHEDULE ‘7D’
COMMUNITY WATER SYSTEM STANDARDS
Why an equivalent bylaw
should be used by DBID.
 RDN Bylaw 500 is
 Provides protection from
developers lawsuits
 Developer assumes all risks
and financial commitments
 The DBID would maintain
control with much less
administration overhead than
would be required under
current bylaws of the district.
 comprehensive
 Has been vetted by legal
advisors
 Has been developed by
professional engineers
 Has been tested by the RDN to
protect the RDN interests and
services
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RDN BYLAW NO. 500 SCHEDULE ‘7D’
COMMUNITY WATER SYSTEM STANDARDS
This Bylaw has been applied to the following developments:
1. Lakes District
2. Schooner Cove
3. Fairwinds
 Phased Developments must have a Phased
Development Agreement (PDA) before the property
goes to zoning. This would include timeline
requirements.
 www.rdn.bc.ca/cms/wpattachments/wpID1185atID57
92.pdf
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DBID
 Request that DBID servicing standards bylaw be
established based on the RDN Bylaw 500 Section ‘7D’
 Without a similar bylaw DBID would be vulnerable to
 Large financial commitments
 Water commitments it may not be able to provide
 Additional costs, including additional staff to manage
the development of new water sources
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Questions?
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