The City of Nanaimo is seeking elector approval via an Alternative Approval Process (AAP) to take out up to a $90 million loan to rebuild its aging public works yard, which it says is no longer adequate to support a city of its size.
The loan would cover the costs of building new fleet maintenance and crew and administrative buildings on the property on Labieux Road.
The new buildings would allow modern garbage and fire trucks to fit inside the fleet maintenance buildings and consolidate over 100 staff from the city’s Public Works and Parks Operations departments.
The city’s public works buildings underwent a seismic study in 2012 that found the fleet maintenance building scored the worst in the city and that “it wouldn’t take much of an earthquake to knock it down,” per the city’s website.
In the event of an earthquake that damages the building and prevents proper maintenance of the city’s fleet of vehicles, the city said waste collection could be impacted and roads could not be maintained.
The current crew and administrative building “is well beyond its useful life,” according to the city, and also failed a seismic study. Originally built in the 1960s, the building is too small to accommodate a growing number of staff and modular additions and trailers have been added over the years to try and provide more space for a growing and diverse workforce.
How much will it cost?
The estimated cost of the Public Works Yard Updates Project is $90 million, with $48 million for construction, $14 million for project delivery (including design, insurance, utilities and permitting costs), $10 million to allow for inflation over the life of the project and $18 million in contingency funding.
The city notes that these amounts cover potential cost overruns and the city “will only borrow what’s needed, when needed.”
The cost of borrowing would be spread out over 20 years and if the full amount is borrowed the city estimates it will cost the average homeowner $139 per year (or $18 per $100,000 of assessed value of their property).
A more detailed breakdown of costs is available on the city’s website.
What is an Alternative Approval Process?
An Alternative Approval Process (AAP) is a process used by municipalities in B.C. that allows electors to oppose proposals from local governments. It is covered by the provincial Community Charter or the Local Government Act.
An AAP can be used to “test the waters” for a proposal. If community members are opposed to the project, at least 10 per cent of electors (7,974 people in Nanaimo) would have to sign a form stating their opposition. If that happens, the proposal fails and the city has the option to move to a referendum on the item which would require a vote of 50 per cent, plus one, to approve the loan. City council could also choose to drastically increase property taxes in the short term to fund the project, or abandon the upgrades.
One reason cities like Nanaimo have used the AAP in the past is that the cost of running a referendum is significantly higher than an AAP, with the cost of a referendum estimated at $297,000 in a staff report to council from December 2023.
According to the city’s Get Involved Nanaimo website, an AAP also gives eligible electors a minimum of 30 days to submit a response form instead of having to show up on one of three designated voting days.
For the Public Works Yard Updates AAP, a total of 42 days is provided running from Sept. 18 to Oct. 31, 2024 at 4:30 p.m.
How did the city communicate this proposal to electors?
The City of Nanaimo communicated the details of the proposal for the Public Works Yard project through its website, email newsletters, social media, newspaper and radio ads and a mass mailout of flyers.
According to city staff, the city sent 35,465 flyers to homes in Nanaimo about the project and the total cost spent on advertising was $19,000 (not including the official notice ad in the newspaper).
The city is also holding tours of the public works yard on Oct. 2, 5 and 23. To register for a tour go to recreation.nanaimo.ca or call 250-756-5200. To register online scroll down to “special events” and then you can select the tour that you want to attend.
Background on previous AAP proposals
This is the third AAP for a Public Works Yard Update, with the first two being abandoned by the city after it was discovered that the city twice failed to meet legislative requirements.
The two previous proposals were for a $48.5 million loan for Phase 1 of a three-phase project that had a total cost estimate of $163 million. This new proposal scales back the plan to a single “one and done” proposal for $90 million.
Why are some people opposed to the project?
A group that has been opposed to the Public Works Yard AAP since the first one was held early this year is the CON (City of Nanaimo) Oversight Society. The group argues that the AAP is an “undemocratic” process and would like a referendum held instead.
How to send a form in opposition to the AAP
An AAP Elector Response Form can be downloaded from the city’s website and dropped off in person at the Legislative Services Department at City Hall on Monday to Friday during regular business hours, excluding public holidays. You can also mail the form to 455 Wallace St., Nanaimo, BC, V9R 5J6, or submit it electronically at https://www.nanaimo.ca/goto/AAP-submissions.
All forms must be received by the deadline of 4:30 p.m. on Oct. 31, 2024 and postmarks are not accepted as the date of submission. For electronic submissions, a handwritten signature is required and electronic signatures will not be accepted.
If you are in favor of the proposal you do not need to do anything, forms are only required to be submitted in opposition to the proposal.
For more information on the AAP go to the city’s website.
