Calgary’s water woes continue and residents are asking questions about who is on the hook for floods, repairs, and lost earnings as restrictions ramp up again.
On Aug. 26, the City of Calgary will once more implement Stage 4 water restrictions in order to try to protect its water resources. Crews will be carrying out more than 20 repairs along the nearly 11 kilometres of the Bearspaw south feeder main. The pipe carries 60% of the city’s water to 1.6 million residents.
This is a return to the conditions Calgarians are now familiar with following a massive water main rupture on June 5. We were all prohibited from any form of outdoor watering, including the use of backyard sprinkler systems and garden hoses, until just before the Stampede started in July. Those restrictions will be starting again Aug. 26.
City crews conducted a full-length scan of the feeder main in late June using a device called PipeDiver, which included about six kilometers of pipe that had not been scanned previously. Upon reviewing the data, the City has identified 21 pipe segments in urgent and immediate need of repair in order to prevent another break. This time, however, residents have a way to prepare.
Who pays for flooded homes?
The Canadian Underwriter is warning that these problems are likely to continue as aging city infrastructure struggles to keep up with growing populations and increased demand.
“Governments have to make the hard choices to stop building and rebuilding on flood plains, invest in disaster mitigation including upgrades to stormwater infrastructure, and roll out programs to fire- and flood-proof homes,” the Insurance Bureau of Canada said in a recent statement.
Several residents of the communities of Bowness and Montgomery saw their basements flooded after the June 5 water main break. Their homeowners’ home insurance policies will cover for repairs without the need for an overland flood endorsement. Water main breaks are included as part of the “plumbing water damage” portion of a typical policy, the Canadian Underwriter reports.
Of course, those homeowners will have to pay their deductible, which is often $1,000 and higher for home insurance policies.
It is not uncommon for bylaws to be introduced that prevent residents from subrogating against municipalities, however this is not the case in Calgary at the moment. As infrastructure is increasingly under pressure, it could be something to be tabled in the future.
In addition, the CBC recently reported on recommendations put forth by the Canadian Federation of Municipalities, which recommend increasing direct annual transfers to municipalities by $2.6 billion, nearly doubling the amount it is right now. They also suggest indexing federal transfers with Canada’s gross domestic product and broadening the eligible expenses to include operating costs and infrastructure. The argument is that as Canada’s population is booming due to increased immigration, the federal government must do its share to ensure cities remain able to support their new citizens.
What about businesses?
Thousands of Calgary businesses were impacted when the restrictions were first imposed, including irrigation companies, landscapers, window-washing companies and car washes that rely on a steady supply of treated water.
City officials have promised the upcoming round of restrictions will not be as punishing for businesses, but some local enterprises argue messaging has been confusing. For example, a window washing company says it is out approximately $200,000 after the June and July restrictions, as many Calgarians assumed that nobody was allowed to wash windows and cancelled their appointments (or failed to make one). Licensed window-washing companies are exempt from the restrictions, however sidewalk and building cleaning is not allowed.
Car washes using non-potable water are able to continue operating as well, and the City will provide non-potable water stations once again and will expand the program.
The City of Calgary has provided a comprehensive list of what is and is not allowed during Stage 4 restrictions and offered helpful tips for reducing water use for businesses. For example, bars and restaurants are encouraged to use receptacles to catch rainwater for their outdoor plantings and to consider using bottled water instead of tap water. Everyone is asked to ensure appliances using water, such as dishwashers and washing machines, are in good working order, and to only run full loads.
If you find your business struggling due to the water restrictions, it’s worth it to give your business insurance provider a call. Certain coverages, such as business interruption insurance, may apply, depending on your company and your plan.
Lane’s Insurance covers Alberta
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