CRD REPORT TO REGIONAL WATER SUPPLY COMMISSION

REPORT TO REGIONAL WATER SUPPLY COMMISSION MEETING OF WEDNESDAY, APRIL 19, 2023

SUBJECT

Bylaw No. 4541 Water Supply Local Service Area Establishment Bylaw Amendment

ISSUE SUMMARY

To amend Capital Regional District (CRD) Bylaw No. 2537, “Capital Regional District Water Supply Local Service Area Establishment Bylaw No. 1, 1997”, to specify activities included in the Regional Water Supply Service and update the provincial legislation referenced in the bylaw from the Municipal Act to the Local Government Act.

BACKGROUND

Bylaw No. 2537 establishes the Regional Water Supply Local Service Area but is not consistent with modern establishing bylaws with respect to the authorized activities of the service and does not provide examples or guidance on what is an acceptable activity of a regional water service. The lack of a listing of authorized service activities creates uncertainty and could be questioned where management activities are indirect to water supply, such as the management of the water supply area lands.

The Strategic Plan for Regional Water Supply provides direction to more actively manage the forested water supply lands to mitigate climate change and reduce wildfire risk. Intended management activities such as ecological restoration thinning, will result in the sale of logs. While the existing service has the power to sell logs resulting from forest fuel reduction activities as a result of Zimmermann v. Greater Victoria Water District, 1994 CanLII 2115 BC Supreme Court (BCSC); it is worth clarifying that power, along with others in the service’s establishing bylaw under modern drafting standards.

In the Greater Victoria Water Supply Area (GVWSA), merchantable logs that result from watershed management activities have historically been disposed of to reduce forest fuels and offset costs, and the ongoing ability to do this will reduce the capital funding required to finance these management activities.

ALTERNATIVES

Alternative 1 The Regional Water Supply Commission recommends to the Capital Regional District Board:

1. That Bylaw No. 4541, “Capital Regional District Water Supply Local Service Area Establishment Bylaw No. 1, 1997, Amendment Bylaw No. 3, 2023”, be introduced and read a first, second, and a third time.
2. That Bylaw No. 4541 be referred to the service participants for approval by way of council and electoral area director consent on behalf, and that if successful, Bylaw No. 4541 be referred to the Inspector of Municipalities for approval.

Alternative 2 That the report be referred back to staff for additional information.

IMPLICATIONS

Governance Implications The proposed amendment promotes good governance by updating the language to refer to the Local Government Act and in providing transparency and certainty of the activities that are authorized and contemplated by the water supply service. While the forest/ecological activities planned for the GVWSA could proceed without the amendment, specifically authorizing these activities in the bylaw proactively manages public expectations, uncertainty and risk.

Legal Implications In 1994, the predecessor corporation to the CRD’s operation of the regional water service, the Greater Victoria Water District (GVWD), was directed by the BCSC that commercial logging was not within the scope of activities of a water district, though forest health activities, including the sale of logs, was acceptable. The GVWD from 1949 to 1992 undertook commercial timber harvest on catchment and non-catchment lands and took the position prior to the BCSC decision it could engage in commercial timber harvesting on its own merits.

Though the activities currently being planned to manage the water supply area lands are not for commercial timber (rather for forest health, resilience, management of forest fuels, wildlife habitat and biodiversity), gaining certainty of authority regarding the sale or disposition of any resulting logs is necessary and is an opportunity to modernize the bylaw’s example powers in line with other modern establishing bylaws. For clarity, while legislation has changed since 1994 and does permit regional districts to operate enterprises, there is no intention to initiate commercial timber harvesting operations in the GVWSA for the sake of profit-making.

When revising a service establishment bylaw, two-thirds elector approval is required. Elector approval can be obtained by referendum (which is costly), alternative approval process (which is time consuming), and participating area consent on behalf, in this case consent of Councils and the Electoral Area Director for Juan de Fuca. Should the change be approved by two-thirds consent, the bylaw amendment is then reviewed by the Inspector of Municipalities, and if accepted, the amendment can be adopted at a future Board meeting.

CONCLUSION

Bylaw No. 4541 amends “Water Supply Local Service Area Establishment Bylaw No. 1, 1997” to list and authorize activities of the Regional Water Supply Service and updates the bylaw references from the Municipal Act to the Local Government Act.

RECOMMENDATION

The Regional Water Supply Commission recommends to the Capital Regional District Board:

1. That Bylaw No. 4541, “Capital Regional District Water Supply Local Service Area Establishment Bylaw No. 1, 1997, Amendment Bylaw No. 3, 2023”, be introduced and read a first, second, and a third time.
2. That Bylaw No. 4541 be referred to the service participants for approval by way of council and electoral area director consent on behalf, and that if successful, Bylaw No. 4541 be referred to the Inspector of Municipalities for approval.

ATTACHMENTS

Appendix A: Bylaw 4541, “Water Supply Local Service Area Establishment Bylaw No. 1, 1997, Amendment Bylaw No. 3, 2023”

Appendix B: Bylaw 2537, “Water Supply Local Service Area Establishment Bylaw No. 1, 1997” (Unofficial Redlined Consolidation)