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2010 Nanaimo Region Water Pricing Workshop

FLASHBACK TO 2010: What was the genesis of the phrase ‘sustainable service delivery’ a decade ago? What was the process for mainstreaming the approach in British Columbia? How did it become an ‘actionable vision’ for local governments? As an outcome of the Worth Every Penny Workshop, Glen Brown synthesized three ideas into a single easy to remember phrase that became a game-changer!


The 20/80 Rule refers to the initial capital cost of municipal infrastructure being about 20% of the ultimate total cost, with the other 80% being an unfunded liability. “Tackling the unfunded infrastructure liability involves a life-cycle way of thinking about infrastructure needs and how to pay for those needs over time. This holistic approach is described as Sustainable Service Delivery. The link between infrastructure asset management and the protection of a community’s natural resources is an important piece in Sustainable Service Delivery,” stated Glen Brown.

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VIEW JOHN FINNIE ON YOUTUBE: “Maintaining a balance between ‘Water Out’ and ‘Water In’ is essential because both sides of the equation are variable and the safety margin is decreasing with population growth and water consumption,” stated John Finnie, CAVI Chair, when he opened the Worth Every Penny Workshop which dealt with conservation-oriented water pricing (September 2010)


“Conservation-oriented water pricing is more than just charging more for water to conserve water. It is a balance between charging enough for water so that it imparts a conservation ethic. It is about balancing user rate revenues with taxation revenues in order to ensure that water systems can be adequately maintained. It is also about having a pricing strategy that provides affordable water for basic household use. That said, water pricing is likely one of the most effective water conservation tools that we have when combined with metering,” stated John Finnie.

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VIEW OLIVER BRANDES & KIRK STINCHCOMBE ON YOUTUBE: “Water pricing is a hot issue in communities across the country. Yet it remains an almost totally untapped option for helping ensure our water service infrastructure — the pipes, pumps and reservoirs — is well maintained and up to date,” stated Kirk Stinchcombe during the Worth Every Penny Workshop which dealt with conservation-oriented water pricing (September 2010)


“If the price signal is correct, and therefore correct, the majority of people and organizations will change they way they value water and change their behaviour – when using water and when buying water-using technologies – because they recognize that efficiency and conservation will save them money, ” stated Kirk Stinchcombe. “When you are thinking about all the considerations that go into water pricing, keep in mind that setting the rate is the key factor. Does the price accurately inform consumers about the costs of their water use and provide a signal that is sufficient to affect their decision making?”

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VIEW MIKE DONNELLY ON YOUTUBE: “The RDN’s Action for Action illustrates the connection between conservation, providing for future growth and the ecological impacts of water consumption,” stated Mike Donnelly at the Worth Every Penny Workshop when he made the connection between water utility pricing and watershed protection (September 2010)


“We have established a provincial precedent by creating a drinking water and watershed protection service area with taxation authority in an electoral area. The Drinking Water & Watershed Protection program is being implemented over time to help improve our approach to land use. Program implementation includes water pricing. It is one tool. For this reason, we describe pricing as a ‘dropdown’ within the overall water management strategy. We put considerable effort into designing a ‘user pays’ rate structure that is fair and equitable,” stated Mike Donnelly.

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VIEW WALLY WELLS ON YOUTUBE: “Infrastructure assets only exist to provide a service to the public. Once you have decided to offer the service – define its quality and manage community expectations for the level-of-service,” stated Wally Wells when he explained ‘sustainable service delivery’ at the Worth Every Penny Workshop on conservation-oriented water pricing (September 2010)


“We have had a lot of discussion in integrated asset management around level-of-service. There are some five ways to define level-of-service in the local government setting. One in particular is a policy issue for elected Councils – that is, what level-of-service is a Council prepared to have constituents pay for. Beware of service creep. My experience is that where politicians don’t understand level-of-service, and constituents complain about the level-of-service, the next thing you know politicians are pushing for an increase in level-of-service. It is very difficult to decrease service once a level is established,” stated Wally Wells.

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FLASHBACK TO 2010: Water Sustainability -“Everything we have heard today fits in like a glove with what we are going to do with this next effort at the Vancouver Island Summit,” stated Eric Bonham in his closing remarks at the Nanaimo Region Water Pricing Workshop held in the City of Parksville, the venue for roll-out of the Worth Every Penny Primer on Conversation-Oriented Water Pricing, and the launch of a national dialogue


“It was Gandhi who said you must be the change that you wish to see in the world. That is the part that we must all play. We all bring our little bit of talent to the table, to look at Vancouver Island as a test case to show the world how we can collaborate and pull things together. Looking ahead to the Vancouver Island Summit, it is about inspiring action and leadership for water sustainability on the island. As we have heard time and time again, if we do not get the water part right, we are in trouble,” stated Eric Bonham.

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VIEW KEVIN LAGAN ON YOUTUBE: “There are magnificent opportunities waiting for us, now and for 10, 20 years in the future,” stated Kevin Lagan, City of Courtenay Director of Engineering, at the Worth Every Penny Workshop when he shared his thoughts on how the workshop had inspired him (September 2010)


“It is amazing when one thinks about the subjects that come up in the CAVI initiative, with common themes and common issues. Today, I see local government being at a major crossroads. After 43 years, I wish I had longer to go in local government, but I don’t. There is a whole list of things that we have heard today which I think will inspire us to move forward; to think about we are doing individually and collectively; and to try to get together to produce a better Canada,” stated Kevin Lagan.

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WORTH EVERY PENNY: For the complete story of conservation-oriented water pricing, from research to practice, download the set of PowerPoint presentations delivered by John Finnie, Kirk Stinchcombe & Oliver Brandes, Mike Donnelly and Wally Wells at the Nanaimo Region Water Pricing Workshop (September 2010)


The desired outcome for the workshop was that participating practitioners would connect the dots between three initiatives (Water Pricing Primer, RDN Action for Water, and Beyond the Guidebook 2010). “Money, it should be about how to get the most value out of every dollar spent. Too often, thinking stops after the capital investment is made. Yet everyone needs to be thinking in terms of life-cycle costs, including future recapitalization of the investment,” stated Wally Wells.

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CONVENING FOR ACTION ON VANCOUVER ISLAND: What do we want this Island to look like in 50 years? Eric Bonham connected the dots between two stepping stones to a desired future – Nanaimo Region Water Pricing Workshop and Vancouver Island Economic Summit (September 2010)


“From all corners of Vancouver Island and in all sectors, leaders are wanting opportunities to collaborate, communicate and share best practices, resources and information. The general consensus is that there is unnecessary competition and that everyone on the Island would benefit from more collaboration and sharing on all levels. We must look outside our boundaries and work with our neighbouring communities for the betterment of all,” stated Eric Bonham.

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NANAIMO REGION WATER PRICING WORKSHOP: Financial Accountability, Infrastructure Sustainability and Service Delivery – Connecting the dots to achieve a vision for ‘Sustainable Service Delivery’


Part of the rollout to stimulate a national dialogue on sustainable water management, the Nanaimo Water Pricing Workshop is described as the first of its kind in Canada. The workshop program is a unique blend of research and practice. “Sustainable service delivery is an emerging issue in BC. Changing and/or additional demands mean the local government workload is expanding. Local governments are being challenged to maintain and/or replace existing infrastructure over time, and to ‘do more with less’,” states Kim Stephens.

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