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The Manitoba Water Services Board Act
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This version is current as of August 19, 2016.
It has been in effect since May 1, 2014.

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C.C.S.M. c. W90

The Manitoba Water Services Board Act

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

Definitions

1           In this Act

"board" means The Manitoba Water Services Board continued under section 3; (« Commission »)

"declared area" means an area which has been declared by the Lieutenant Governor in Council to be an area to which the board is authorized to provide water and sewage services; (« région désignée »)

"department" means the department of government over which the minister presides and through which this Act is administered; (« ministère »)

"minister" means the member of the Executive council charged by the Lieutenant Governor in Council with the administration of this Act; (« ministre »)

"municipality" means a city, town, village, rural municipality, municipal district, or local government district; (« municipalité »)

"newly constructed works" means works constructed pursuant to the provisions of this Act on or after July 20, 1972; (« ouvrages nouvellement construits »)

"previously constructed works" means works constructed pursuant to the provisions of this Act prior to July 20, 1972; (« anciens ouvrages »)

"sewage services" are those services as set out in the clause 6(1)(a); (« services d'égout »)

"water district" means a water district established under The Water Supply Districts Act; (« district d'approvisionnement en eau »)

"water services" are those services as set out in clause 6(1)(c); (« services d'approvisionnement en eau »)

"works" means plants, buildings, dams, dykes, embankments, canals, aqueducts, ditches, culverts, drains, wells, roads, railways, reservoirs, distribution pipe lines, sewage collection lines, sewage treatment facilities, and all structures, equipment, erections, and excavations, acquired, constructed, built, made, or erected by the board for the purpose of carrying out its objectives. (« ouvrages »)

S.M. 2008, c. 42, s. 96.

Designation of newly constructed works

2           Notwithstanding the definition "newly constructed works" contained in section 1, where works are constructed by a municipality prior to July 20, 1972, the minister upon the request of the municipality may designate those works as "newly constructed works".

Objectives of board

3           The Manitoba Water Services Board, is continued, and has the following general objectives

(a) the obtaining, development, transmission, distribution and control of water supplies for the domestic use of the people of the province; and

(b) the collection, treatment and disposal of sewage.

Objectives of board

4           Without limiting the generality of section 3, the board has the following specific objectives

(a) the obtaining of supplies of potable water for domestic and other uses within the province; and the selling of water to municipalities and water districts;

(b) the acquisition or construction and the operation and maintenance of all plants and works necessary for obtaining, collecting, storing, treating, purifying, and transmitting water;

(c) the transmission of water from a source of supply or a point of storage to a point of acceptance by a municipality or water district either within or without the municipality or water district;

(d) the acquisition or construction and the operating and maintenance of work for the distribution of water;

(e) the acquisition or construction and the operating and maintenance of works for the collection of sewage; and

(f) the acquisition or construction and operating and maintenance of works for the treatment and disposal of sewage.

POWERS

General powers of board

5           The board has all powers necessary for or incidental to the achievement of the purposes and objectives of the board.

Powers of board

6(1)        Without limiting the generality of section 5, the board may

(a) make investigations and surveys of all matters relating to, the supply of potable water, the distribution of potable water, the collection of sewage and the disposal of sewage;

(b) purchase or acquire by grant, permit, lease, or agreement supplies of potable water from the Government of Canada, the Government of Manitoba, a municipality, a water district, or any other corporation, person, government, or organization either within or without Canada;

(c) construct, purchase, or acquire by grant, lease, or agreement, and operate, maintain, repair, replace, and reconstruct plants and works for obtaining, collecting, storing, treating, purifying, transmitting, distributing, and measuring water;

(d) sell, give, or barter water or dispose of water by agreement to a municipality or water district;

(e) subject to The Expropriation Act, expropriate land or interests in land for the purposes of the board;

(f) through its agents, servants, and workmen, enter into and upon the lands of any person and survey, set out, and ascertain such parts thereof as it may require for the objects, undertakings, purposes, or requirements of the board, or for the purposes of the works of the board, or for the purposes of conveying electric motive force or other power for the operation thereof, and take, use, acquire, expropriate and hold any such lands, and divert and appropriate any spring, stream, or body of water thereon as the board may deem suitable and proper;

(g) construct, erect, and maintain, in and upon any lands taken or acquired by it, works and equipment of every kind, requisite for its undertakings and convey the waters thereto and therefrom and by means thereof, in, upon, or through, any of the grounds and lands, lying intermediate between the reservoirs and works of the board and the wells, springs, streams, rivers, or lakes, from which they are procured, by one or more lines of aqueducts, canals, pipes or conduits, as may from time to time be found necessary;

(h) for the purposes of the board, and with or without the consent of the owner, enter, and temporarily remain upon, take possession of and use any property, real or personal, erect or place thereon any works, flood and overflow any land, and accumulate and store water thereon;

(i) acquire by purchase, lease, licence, or otherwise, any real or personal property, tangible or intangible, including patents and inventions, licences, franchises, flooding rights, rights of entry, power or water licences or leases, or any lands or easements required by the board for the purposes of a right-of-way or for flooding of land or the storage of water, and any other lands that form part of a parcel of lands that contains land required by the board for any such purposes if in the opinion of the board the whole parcel may be acquired to greater advantage than merely the part required and hold, develop, use, maintain, operate, improve, or construct plants and works thereon, and sell, lease, or otherwise dispose of the same or any part thereof upon such terms and conditions as the board deems proper;

(j) contract with Her Majesty in right of Canada or in right of any province of Canada or with any person, government, or organization, for the use of any right-of-way or property or for the erection of works;

(k) accept gifts or grants of money or real or personal property from any government, municipality, organization, corporation, or person, and use such gifts or grants for the purposes of the board;

(l) enter into agreements with municipalities or water districts providing for

(i) the inter-connection or inter-communication of any part of the works of the board and the works or system of the municipality or water district,

(ii) the joint construction or operation of a water transmission system, and

(iii) the joint development or use of a source of supply of water,

and agree to a division of the revenues from such joint enterprise or inter-connection or inter-communication or to the making of such other adjustments as are necessary for the purpose of such an agreement;

(m) enter into agreements, and do all things, proper or necessary or the due exercise of any of the powers granted to the board under this Act;

(n) construct, purchase or acquire by grant, lease or agreement and operate, maintain, repair, replace, and reconstruct works for the collecting, treating, transmitting, and disposal of sewage;

(o) enter into an agreement with a municipality or water district for the sale, lease or transfer of works to the municipality or water district;

(p) enter into an agreement with a person, partnership or unincorporated association to build, own, operate or transfer water or sewerage infrastructure.

Application of Expropriation Act

6(2)        Any exercise by the board of the power to expropriate any land or interest therein, without the consent of the owner or persons interested therein, shall be deemed an acquisition and expropriation by Her Majesty in right of Manitoba of land required for a public work or purpose of the province and The Expropriation Act applies, with such modifications as the circumstances require, to any such expropriation, and in respect of any such expropriation the board shall have the powers conferred upon, and shall discharge the obligations imposed upon, the minister under The Expropriation Act.

Right of entry

6(3)        Notwithstanding anything contained in this Act or The Expropriation Act, the board may enter upon, take, and use any land required by it as aforesaid, at any time either before or after the commencement of expropriation under The Expropriation Act.

Entry on lands of others for purposes of the water district

6(4)        For better carrying out and accomplishing the objects, undertakings, and requirements of the board and for better effecting the purposes aforesaid, the board, its agents, servants, and employees may

(a) enter and pass upon and over the grounds and land intermediate as aforesaid, and repair them, cut them, or dig them up, if necessary;

(b) lay down the pipes and install the plant and equipment through them and in, upon, over, and under and through highways, railways, roads, and in, through, over, or under public ways, streets, street railways, lanes, or other passages and in, upon, through, over or under, the land, grounds, and premises of any person;

(c) set out, ascertain, use, and occupy, such part or parts thereof as the board deems necessary and proper

(i) for the making, draining, and maintaining of works, or

(ii) for the protection thereof, or

(iii) for preserving the purity of the water supply, or

(iv) for taking up, removing, altering, or repairing the works.

Arbitration proceedings not to prejudice works undertaken

6(5)        The progress of the construction of, or the maintenance or operation of, the works or undertakings of the board shall not be hindered, enjoined, or delayed in any way, or by any court, on account of any pending arbitration or dispute or disagreement as to damages or value regarding any privilege, water, or land entered up or taken or proposed to be entered upon or taken for the purpose of the undertakings authorized by this Act.

Compensation for use of land, etc.

6(6)        The board shall make adequate compensation ascertained under The Expropriation Act for the use of, entry of, and damage to, any land without the consent of the owner thereof.

S.M. 1997, c. 13, s. 2.

Powers to use streets and highways

7(1)        The board has free right-of-way, in, on, or under, all road allowances, highways, streets, lanes and public places for the construction, maintenance, and operation of aqueducts, mains, canals, and pipe lines of the board and for equipment used for the purposes of that construction, maintenance or operation.

Compensation not payable, repairs required

7(2)        No compensation or damages is due or payable by the board to any person for or on account of the use or occupation by the board of any road allowance, highway, street, lane, or public place for the purposes of construction of any aqueduct, main, canal, or pipe line of the board, or as a right-of-way for an aqueduct, main, canal, or pipe line of the board; but the board shall replace, repair, or make adequate compensation ascertained under The Expropriation Act, for any works of the province or of any municipality on, in, or under, any such road allowance, highway, street, lane, or public place that may be dug up, removed, displaced, or damaged by the board by the construction of any such aqueduct, main, canal, or pipe line.

Indemnification of municipalities

7(3)        If any municipality is held liable for damages, arising from anything done or omitted to be done by the board, by any court of competent jurisdiction in an action to which the board is a party, either originally or by a third party notice, the board shall indemnify and save harmless the municipality therefrom, including any costs incurred by the municipality in regard thereto.

Restriction on exercise of powers

7(4)        Where the board enters upon or uses any road allowance, highway, street, lane, or public place for the purposes of any construction or maintenance, it shall restore the road allowance, highway, street, lane, or public place as far as possible to its former condition; and it shall not permit or sanction the interference with the public right of travel or in any way obstruct or permit the obstruction of the entrance to any door or gateway, or the free access to any building existing at the date of the construction or maintenance, except during the period that the construction or maintenance is actually being done.

Dispute as to use of highways

7(5)        In case of a dispute arising with respect to the use of a road allowance, highway, street, lane, or public place between the board and a municipality, The Public Utilities Board may determine the dispute.

Works on closed road, etc.

7(6)        Where any road allowance, highway, street, lane, or public place, or any part thereof, on or under which the board has constructed or placed any works, plant, or equipment, is closed by the Crown, a municipality, or other authority, the board may leave the works, plant, or equipment on the part so closed, and has the same rights with respect thereto as though the road allowance, highway, street, lane, or public place, or part thereof, had not been closed.

Costs incurred by reason of street repairs, etc.

8(1)        Where, by reason of anything done or omitted to be done by any municipality or other authority, it is necessary to take up, remove, or change the location of any works, plant, or equipment of the board placed on or under a road allowance, highway, street, lane, or public place, the costs and expenses incurred by the board with respect thereto shall, subject to subsection (2), be paid to the board by the municipality or other authority on being notified by the board of the amount of the costs and expenses.

Appeal to Public Utilities Board

8(2)        Where a municipality or other authority that is required to pay the board certain costs and expenses under subsection (1) considers the amount excessive, it may apply to The Public Utilities Board; and The Public Utilities Board, after hearing both parties, shall determine the amount to be paid.

Discretion of board

9(1)        Nothing in this Act nor any other Act of the Legislature compels the board to provide water or sewage services to any municipality or water supply district.

Absolute discretion of board

9(2)        Where the board has agreed to provide water or sewage services to a municipality or water district, the board has and shall retain absolute discretion as to the manner in which and the method by which the water or sewage service is provided and as to the time at which the board will begin to provide the water or sewage service.

Design criteria

9(3)        Where the board has agreed to provide water or sewage services the board has and shall retain absolute discretion as to the design criteria used in providing the water or sewage service.

Request by municipality, etc., for a declared area

10(1)       A municipality or a water district, if authorized by a resolution of the council or board thereof, may, in writing, request the minister to recommend to the Lieutenant Governor in Council that an area in which the municipality, or water district, or part thereof is situated, be declared to be an area to which the board is authorized to provide water or sewage services.

L.G. in C. may declare area

10(2)       The Lieutenant Governor in Council, on the recommendation of the minister,

(a) made on his own initiative; or

(b) made pursuant to a request of a municipality or water district;

may declare an area to be an area to which the board is authorized to provide water or sewage services.

Commencement of development

11          The board shall not

(a) commence the development of any source of supply of water or the development of a water distribution system; or

(b) enter into negotiations to acquire a source of water supply; or

(c) commence the development of any sewage service system;

except for the purpose of providing water or sewage services to a municipality or water district that is, or part of which is, within a declared area.

Application to purchase water

12(1)       A municipality or water district that is, or part of which is, within a declared area may apply to the board for assistance in developing a water or sewage system.

Information with application

12(2)       A municipality or water district making an application under subsection (1) shall support the application with such information and data

(a) as the municipality or water district can provide; and

(b) as is requested by the board.

Board to establish estimated prices and conditions

12(3)       Upon receiving an application under subsection (1), the board shall obtain from or through the department or other departments of the government all relevant information and data to permit the board to establish, and the board shall establish

(a) estimated prices or rates, based on estimates of the costs and expenses mentioned in subsection 16(3), at which the board could provide water or sewage services to the municipality or water district; and

(b) terms and conditions under which the board could provide water or sewage services to a municipality or water district.

Inquiries of or other interested municipalities

12(4)       Upon receiving an application under subsection (1), the board shall inquire as to what other municipalities and water districts

(a) that are, or parts of which are, within the same declared area as the municipality or water district from which the board received the application; and

(b) to which the board could provide water from the same source from which it proposes to provide water to the municipality or water district from which it received the application;

are interested in making an application under subsection (1), and, in the manner described in subsection (3), the board may establish estimated prices and rates at which and terms and conditions under which the board could provide water to such other municipalities and water districts.

Agreement for water or sewage services

12(5)       The board shall submit the estimated prices and rates and the terms and conditions established under subsection (3) to the municipality or water district that has applied, and if they are satisfactory to the municipality or water district, the municipality or water district, and the board may make an agreement for the provision of water or sewage services for the use of the municipality or water district under those terms and conditions and at such prices or rates as the board may fix under section 16.

Board may refuse to enter into agreement

12(6)       Where the board is of the opinion that it would not be economically advisable to provide water or sewage services to the municipality or water district at the estimated prices or rates or on the terms and conditions established under subsection (3), it may refuse to enter into an agreement for the provision of water or sewage services to the municipality or the water district under subsection (5).

S.M. 2008, c. 42, s. 96.

Municipality to pass by-laws

13          The board shall not commence construction of any works or plants until all necessary by-laws provided for under The Municipal Act have been approved.

Board to develop source, etc.

14          Where the board has made an agreement under subsection 12(5), and the municipality or water district with which the agreement has been made has enacted a by-law as required under section 13, the board shall forthwith proceed to develop or acquire a source of supply sufficient to provide water or sewage services to the municipality or water district and to construct or acquire any works agreed upon under section 12.

Sale of excess supply of water

15(1)       Where the supply of water obtainable from a source developed or acquired by the board for the purposes of providing water to a municipality or water district with which the board has made an agreement under subsection 12(5) exceeds the demand thereon by the municipality or water district, the board may sell the excess at prices or rates, and under terms and conditions fixed by the board, to a municipality or water district

(a) that is or a part of which is within a declared area; or

(b) that is not within a declared area but through or in which or on or along the boundary of which the board has constructed, placed, or acquired for the purpose of providing water to the municipality or water district with which it has made the agreement any works or plants from which water can be provided;

and that can take delivery of the water in a manner and at a point satisfactory to the board.

Sale for uses other than domestic

15(2)       Where the supply of water obtainable by the board from a source exceeds the demand thereon for domestic purposes, the board may sell the excess at prices or rates and under terms and conditions fixed by the board to any municipality or water district to which it can sell water for domestic purposes, for purposes other than domestic and such other purposes shall have precedence in the same order as that set out in section 9 of The Water Rights Act.

Inquiries of other municipalities and water districts

15(3)       Where the supply of water obtainable by the board from a source exceeds the demand thereon, the board may, for the purpose of selling water to municipalities or water districts under subsection (1) or (2), inquire as to

(a) what other municipalities or water districts to which the board does not provide water and to which the board could provide water from that source, are interested in purchasing water from the board; or

(b) what municipalities or water districts to which the board could sell water for purposes other than domestic are interested in purchasing water from the board for purposes other than domestic;

and, in the manner described in subsection 12(3), the board may establish estimated prices and rates at which, and the terms and conditions under which, it could provide water to such other municipalities or water districts or for such other purposes.

RATES AND PRICES

Board to fix rates

16(1)       The board shall fix the prices or rates at which it will provide water or sewage services and may alter such prices or rates from time to time.

Different rates

16(2)       The prices or rates fixed by the board may be

(a) on a graduated scale based on amount of water provided;

(b) different for different class of users within an area; and

(c) different for different areas.

Factors to be considered in fixing rates

16(3)       The board shall fix the charges and rates at which it will provide services to any municipality or water district taking into account

(a) its operating expenses including the costs of operating, maintaining, repairing, and insuring the works and plants of the board and the costs of administration;

(b) all principal payments, interest, and debt service charges payable by the board upon, or in respect of, money advanced to, or borrowed by or on behalf of, and all obligations assumed by the board, and used in or for development, construction, acquisition, purchase, operation, maintenance, or repair of any source of water or of works and plants of the board, including its working capital;

(c) the amount to be provided in each year for the repayment of debt;

(d) the amount which in the opinion of the board may be required for the stabilization of rates and for meeting contingencies;

(e) any grants provided under this Act;

based on the agreement between the board and the municipality.

Further factors to be considered

16(4)       In fixing the rates and charges under subsection (3), the board shall also take into consideration

(a) rates and charges that are applicable to previously constructed works; and

(b) rates and charges that are applicable to newly constructed works.

Appeal to Public Utilities Board

17(1)       A municipality or water district that is purchasing water from the board may appeal the prices or rates fixed by the board, in so far as they apply to that municipality or water district, to The Public Utilities Board.

Decision on appeal

17(2)       On an appeal taken under subsection (1), The Public Utilities Board may

(a) affirm the prices or rates fixed by the board; or

(b) increase or decrease or otherwise vary the rates fixed by the board;

and the decision of The Public Utilities Board is final.

POWERS AND DUTIES OF MUNICIPALITIES AND WATER DISTRICTS

Agreement to provide water or sewage services

18(1)       Notwithstanding anything in The Municipal Act, The Water Supply District Act, or any other Act of the Legislature, a municipality or water district may enter into an agreement with the board for providing water or sewage services.

Use of water purchased

18(2)       Unless the water is purchased under subsection 15(2), a municipality or water district that purchases water from the board shall use the water for distribution throughout the municipality or water district or part thereof by means of a distribution system for primarily domestic use.

Charges constitute debt

18(3)       The charges for water or sewage services supplied by the board to a municipality or water district are a debt owed by the municipality or water district to the board, and the board may sue for the amount of the debt and, if the board obtains a judgment, issue execution against the municipality or water district in the manner provided under The Municipal Act or The Water Supply Districts Act or any other Act of the Legislature respecting the municipality or water district.

BORROWING

Temporary bank borrowings

19          The board, with the approval of the Lieutenant Governor in Council, may from time to time raise money for its temporary purposes by way of bank overdraft or a line of credit obtained from any bank, in such amounts, upon such terms, for such periods, and upon such other conditions, as the board may determine; and the government may, on such terms as may be approved by the Lieutenant Governor in Council, guarantee the payment of the principal and interest on any such borrowings of the board, not exceeding in the aggregate $1,000,000. outstanding at any one time.

S.M. 2002, c. 47, s. 30.

Temporary advances by government

20          Within the limits fixed by any Act of the Legislature the Lieutenant Governor in Council, on the recommendation of the Minister of Finance, may authorize the Minister of Finance to advance moneys to the board for its temporary purposes out of the Consolidated Fund; and every such advance shall be repaid by the board to the Minister of Finance at such times, and on such terms, as the Lieutenant Governor in Council may direct, together with interest thereon at such rate per year as may be fixed by the Lieutenant Governor in Council at the time of the making of the advance.

Loans by government

21(1)       Within the limits fixed by any Act of the Legislature the Lieutenant Governor in Council may authorize the raising by way of loan, in the manner provided by The Financial Administration Act, of such sums as the Lieutenant Governor in Council may deem requisite for any of the purposes of the board under this Act; and any such sums may be advanced to, and paid over by the Minister of Finance to, the board, and shall be repaid by it to the Minister of Finance at such times and on such terms as the Lieutenant Governor in Council may direct, together with interest thereon as provided in subsection (2).

Fixing of rate of interest

21(2)       Where an advance is made to the board under subsection (1), the Lieutenant Governor in Council shall, by order in council at the time of making the advance, fix the rate of interest that shall be paid by the board on the sums so advanced, or the balance thereof remaining from time to time outstanding and not repaid, during such period as is stated in the order; and after the expiry of that period the Minister of Finance shall, by an order in writing, fix, and alter from time to time, as may be required, the rate of interest that shall be paid by the board on the sums so advanced, or the balance thereof as aforesaid, during any one or more subsequent periods that may be stated in any such order.

Power of board to borrow and mortgage

22(1)       Subject to the approval of the Lieutenant Governor in Council, and subject to subsection (2), the board, through the Minister of Finance, who shall be its agent in that behalf, may

(a) borrow money on the credit of the board;

(b) limit or increase the amount to be borrowed;

(c) issue notes, bonds, debentures, or other securities of the board;

for the purposes of the board; and, through the Minister of Finance, who shall be its agent in that behalf, it may

(d) sell or otherwise dispose of the notes, bonds, debentures, or securities for such sums, and at such prices, as are deemed expedient;

(e) raise money by way of loan on any such securities;

(f) pledge or hypothecate any such securities as collateral security; and

(g) do any of those things.

Limitation on borrowing powers

22(2)       The powers conferred on the board under subsection (1) may be exercised only

(a) for the repayment of any expenditures made, or that may be made, by the government for the purposes provided for in this Act, or for the repayment, refunding, or renewal, of the whole or part of any loan or advance made to the board by the government, or of notes, bonds, debentures, or other securities issued by the board; or

(b) in cases to which clause (a) does not apply, within the limits, if any, fixed by this Act or any other Act of the Legislature.

Reissue of redeemed securities

22(3)       Where securities have been pledged or hypothecated by the board as security for a loan and the loan has been paid off, the securities are not thereby extinguished, but are still alive, and may be reissued and sold or pledged as if the former pledging had not taken place.

Form of securities

22(4)       The notes, bonds, debentures, and other securities the issue of which is authorized by subsection (1) shall be in such form, and shall bear such rates of interest, and shall be payable as to principal, interest and premium, if any, at such times and places, in such amounts, and in such manner in all respects, as the Lieutenant Governor in Council may determine.

Forms of bonds and debentures

22(5)       The bonds and debentures authorized by subsection (1) shall bear the seal of the board, which may be engraved, lithographed, printed, or otherwise mechanically reproduced, and, together with any coupons attached thereto, shall bear the manual, engraved, lithographed, printed, or otherwise mechanically reproduced, signatures of the chairman and of the secretary of the board; and any such mechanically reproduced signature is, for all purposes, valid and binding upon the board if the bond or debenture bearing it, or to which the coupon bearing it is attached, is countersigned by an officer appointed by the board for that purpose.

Power of Lieutenant Governor in Council

23(1)       Within the limits fixed by any Act of the Legislature, the government may, on such terms as may be approved by the Lieutenant Governor in Council, guarantee the payment of the principal and interest, of any bonds, debentures, and other securities issued by the board; and the form and manner of any such guarantee shall be such as the Minister of Finance may prescribe.

Signing of guarantees

23(2)       The guarantee shall be signed by the Minister of Finance, or such other officer or officers as may be designated by the Lieutenant Governor in Council; and, upon being signed, the government is liable for the payment of the principal and interest, of the bonds, debentures, and securities, guaranteed, according to the tenor thereof.

Discharge of liability guarantee

23(3)       In a case to which subsections (1) and (2) apply the Lieutenant Governor in Council may discharge the liability resulting from the guarantee out of the Consolidated Fund, or out of the proceeds of securities of the province issued and sold for the purpose; and, in the hands of a holder of any such bonds, debentures, or securities of the board, a guarantee so signed is conclusive evidence that the terms of this section have been complied with.

SINKING FUND

Establishment of sinking fund

24(1)       The board shall reserve and set aside, out of the reserves or funds established and maintained under section 51 and out of such other revenues and funds of the board as may be available for such purposes,

(a) such annual or other periodic amounts as may be required to be reserved and set aside as a sinking fund under any agreement or undertaking entered into by it relative to the repayment of money borrowed by it; and

(b) such additional annual or other periodic amounts as the Lieutenant Governor in Council may from time to time direct to be reserved and set aside as a sinking fund for the repayment of any other moneys borrowed by or advanced to the board and applied to the cost of acquisition or construction of property and works of the board or other indebtedness assumed by the board in respect of the cost of any property or works of the board.

Minimum annual amount for sinking fund

24(2)       The aggregate of the amounts so reserved and set aside as a sinking fund or funds pursuant to subsection (1) shall be not less than 1% of the capital indebtedness of the board outstanding at March 31 of the next preceding year, together with interest at the rate of 4% per annum payable annually on March 31 in each year calculated on the total sinking fund balances set aside and reserved as at March 31 in the next preceding year.

Payment of sinking fund moneys to Min. of Fin.

24(3)       The moneys reserved and set aside for sinking fund purposes under subsections (1) and (2) shall be paid to the Minister of Finance as trustee for the board in each fiscal year of the board before the end of that fiscal year.

Sinking fund trust accounts

24(4)       The Minister of Finance shall establish appropriate sinking fund trust accounts, and shall invest and keep invested the moneys reserved and set aside pursuant to subsections (1) and (2), including the interest payments at 4% therein referred to, in securities authorized by The Financial Administration Act for the investment of funds; and interest earnings on such investments shall be paid by the Minister of Finance to the board.

Repayment to province out of funds in hands of board

24(5)       The board, in addition to the payments provided for under subsections (1) and (3), may pay to the Minister of Finance such moneys as it may have available for application on advances made by the government to the board.

Omission or deferment of sinking fund payments

24(6)       The Lieutenant Governor in Council may direct that

(a) in respect of any moneys advanced or borrowed by the board pursuant to section 19 or 20, no amounts need be reserved or set aside as a sinking fund;

(b) in respect of moneys advanced to, or borrowed by, the board and applied to the cost of previously constructed works of the board, the period to which reference is made in subsection (2) shall commence at the end of such fiscal year of the board, being not later than five years after the making of the respective advances or borrowings, as the Lieutenant Governor in Council may direct; and

(c) with respect to newly constructed works of the board, moneys borrowed shall be payable by annual instalments of principal and interest.

BOARD

Appointment of board members

25          The board shall consist of not more than five persons appointed by the Lieutenant Governor in Council.

Chairman

26(1)       The Lieutenant Governor in Council shall appoint one member to be chairman of the board.

Vice-chairman

26(2)       The Lieutenant Governor in Council shall appoint a member to be vice-chairman to act for the chairman when he is absent or unable to perform his duties or exercise his powers.

Salaries of members

27(1)       The chairman and each other member of the board shall receive such remuneration as may be fixed by the Lieutenant Governor in Council.

Salaries to be part of operating expense

27(2)       The remuneration of the chairman and other members of the board may form part of the operating expenses of the board.

Duties of members

27(3)       The chairman and other members of the board have and shall perform such duties as the Lieutenant Governor in Council may direct.

Financial interest of members

28(1)       No member of the board shall have any monetary interest of any description, directly or indirectly, in any property, business, or undertaking that pertains to supplying, transmitting, distributing, or controlling water or that pertains to the manufacture or invention of, or the patent or other rights in, equipment used for those purposes, or in any contract to which the board is a party.

Exception to interest in persons

28(2)       Nothing in subsection (1) prohibits a member of the board being an employee or officer

(a) of a municipality or water district that supplies, transmits, distributes, or controls waters; or

(b) of a department of the executive government of the province; or

(c) of a board, commission, or organization that reports to a member of the Executive Council, or to the government, or to the Lieutenant Governor in Council.

General manager

29(1)       The Lieutenant Governor in Council shall appoint a general manager of the board who may be a member of the board.

Remuneration of general manager

29(2)       The general manager shall receive such remuneration as may be fixed by the Lieutenant Governor in Council, and that remuneration may form part of the operating expenses of the board.

Duties of general manager

29(3)       The general manager has and shall perform such duties as the Lieutenant Governor in Council may direct.

Comptroller

30(1)       The Lieutenant Governor in Council shall appoint a comptroller of the board who has and shall perform such duties as the Lieutenant Governor in Council may direct.

Remuneration of comptroller

30(2)       The comptroller shall receive such remuneration as may be fixed by the Lieutenant Governor in Council, and that remuneration may form part of the operating expenses of the board.

Corporate status of board

31(1)       The persons who are, from time to time, members of the board constitute a body corporate.

Ancillary powers

31(2)       Subject as otherwise provided by this Act, the board has, ancillary to any objects, purposes, and powers vested in it by this Act, powers set out in Part III of The Corporations Act.

Extra territorial capacity

31(3)       The board has the capacity of a natural person to exercise its powers beyond the boundaries of the province to the extent to which the laws in force where the powers are sought to be exercised permit, and to accept extra provincial powers and rights.

By-laws and employees

32(1)       The board may

(a) make such by-laws, not, contrary to law or this Act, as it deems necessary or advisable for the conduct of its affairs, and without limiting the generality of the foregoing,

(i) with respect to the time of the calling, and place of holding, of all meetings of the board;

(ii) procedure in all things to be followed at such meetings; and

(iii) generally with respect to the conduct in all other particulars of the affairs of the board; and

(b) appoint or employ, either permanently or temporarily, such officers, servants and employees including a secretary, as the board deems necessary for the transaction of its business and prescribe their duties and fix their remuneration.

Use of government employees

32(2)       In so far as is possible the board shall, with the consent of the minister of the department concerned or of the chief officer of the board, commission, or organization concerned, obtain all information or services from, and have all work or services, other than construction, operation, maintenance, repair, reconstruction, or replacement of works of the board, performed by, officers or employees of the departments of the executive government of the province or officers or employees of boards, commissions, or organizations that report to the government.

Employing outside personnel

32(3)       Where it is not possible, or where the consent of the minister of the department concerned or of the chief officer of the board, commission, or organization cannot be obtained, to obtain information or services or have work or services performed as prescribed in subsection (2), the board may obtain the services of such engineers, accountants and other professional persons as the board deems necessary to obtain the information or services or perform the work or services.

Agency for Crown and holding of property

33(1)       The board is an agent of Her Majesty in right of the province; and property acquired by the board is owned by, and vested in and shall be held in the name of, Her Majesty in right of the province.

Disposition of property

33(2)       The board as agent for and in the name of Her Majesty in right of the province may execute any conveyance, transfer, bill of sale, agreement, lease, caveat, withdrawal of caveat, discharge of mortgage and any other document relating to any property acquired by the board or that may be sold, leased, or otherwise disposed of, by the board under this Act.

Where approval of Lieutenant Governor in Council not required

33(3)       The approval of the Lieutenant Governor in Council is not required to any sale, lease, or disposition, by the board of any property that is acquired by the board under the powers granted to the board under this Act.

Acceptance of certificate by district registrar

34          The district registrar of any land titles office may accept as conclusive the certificate or affidavit of the chairman of the board as to whether any particular property has been acquired by the board, as to the purpose for which it has been acquired, and as to whether it was acquired by the board pursuant to the powers granted to the board under this Act.

Contracts to enure to the use of the Crown

35          All contracts respecting works or property, real or personal, under the control of the board, entered into by the board or by any other person on behalf of the board and duly authorized for that purpose, enure to the use of Crown in right of the province.

Meetings

36(1)       Meetings of the board shall be held at the call of the chairman or, in his absence, of the deputy chairman, at such place and upon such notice as to him seems proper.

Meetings on request of members

36(2)       The chairman or, in his absence, the deputy chairman, shall call a meeting of the board immediately upon being requested so to do in writing by another member of the board.

Quorum

36(3)       Where the board consists of three members the chairman or, in his absence, the deputy chairman and one other member of the board constitute a quorum at any meeting of the board; and in other cases the chairman or, in his absence the deputy chairman constitutes a quorum.

Executive officer of the board

37(1)       The chairman is the chief officer of the board, and shall sign all orders or directions issued by the authority of the board; and he may act for, on behalf of, and in the name of, the board in the execution, performance, and carrying out, of any act, matter, or thing that is within the power of the board; subject only to such express directions and decisions as may have been given or made by resolution of the board passed at a regularly held meeting thereof.

Powers, duties and functions, of the deputy chairman

37(2)       When the office of chairman is vacant, or the chairman is absent from the province, or is incapacitated for any reason from executing his functions as chairman, the deputy chairman has, and shall exercise and discharge, all the powers, duties, and functions that are by this Act conferred upon the chairman.

Evidential value of certain documents

37(3)       Any order, regulation, direction, or other document whatsoever, purporting to be signed by the authority of the board shall, when signed by the chairman or deputy chairman, be admitted as evidence of the contents thereof without any proof of the signature of the chairman or deputy chairman, as the case may be, or of the authority of the chairman or the deputy chairman, as the case may be, to sign it.

Keeping of minutes

38(1)       The board shall keep at its offices full and complete minutes and records of all business transacted at its meetings.

Public nature of minutes and records

38(2)       All such minutes and records shall be deemed to be of so public a nature as to be admissible in evidence by the mere production thereof by the chairman, or by any member of the board, or by any employee thereof authorized by the board to produce them.

ACTIONS

Institution of legal proceedings

39          All actions and other proceedings by or against the board for the enforcement of any agreement or contract or for the recovery of damage for any tort or breach of contract, or for the trial of any right in respect of property under the control of the board, or for the prosecution of any offence under this Act or relating to the works or affairs of the board shall be instituted in the name of the Crown.

Injunctions, etc., prohibited

40(1)       Subject to The Proceedings Against the Crown Act, no act or proceedings of the board shall be restrained by injunction or prohibition or other restraining process or proceeding of any nature whatsoever in any court.

No personal liability

40(2)       Neither the chairman nor any member or official of the board, nor anyone acting under his or its instructions, or under the authority of this Act or the regulations, is personally liable for any loss or damage suffered by any person by reason of anything in good faith done, or omitted to be done, by him or them, pursuant to, or in the exercise or supposed exercise of, the powers given to them by this Act or the regulations.

No liability on board

40(3)       Neither the government nor the board incurs any liability by reason of any error or omission in any estimates, plans, or specifications, prepared or furnished by the board.

Liability for failure to provide water

41          Neither the government nor the board, nor any member, officer, or employee of the board is liable to any person, for failure to supply or provide water where the failure is caused by circumstances, conditions, or events that are

(a) unprecedented; or

(b) of an abnormal character; or

(c) beyond the normal control or operation of the board.

Limitation of time within which action may be brought

42          Where an action or suit is brought against any person, or the board, for anything done under this Act, or for indemnity for any damage or injury sustained by reason of, or caused by, or arising from, the construction, existence, maintenance, or operation of the works or of any of the properties, works, plants, equipment, or appliances of the board, it shall be brought within the six calendar months next after the cause of action arises, or if there is a continuation of damages, then within one year after the original cause of action arises.

REVENUES AND ACCOUNTS

Collection of revenues

43          The income and revenue arising from the operations of the board, whether from the sale of water or otherwise, shall be collected by the board.

Banking

44           The board, with the approval of the Lieutenant Governor in Council, may make such banking arrangements as it deems necessary for the conduct of its affairs.

Accounting records

45(1)       The board shall establish and maintain adequate accounting records.

Fiscal year

45(2)       The fiscal year of the board shall end on March 31 in each year.

Funds and expenditures

46          Except in the case of trust funds, all funds, whether from income and revenue, borrowings, advances from the province, or otherwise, coming into the hands of the board shall form one fund from which the board may make any and all expenditures necessary or expedient for the purposes and objects of the board.

APPLICATION OF REVENUES

Application of revenues of the board

47(1)       The board shall apply its revenues towards payment of the operating expenses, interest, and other charges, referred to in clauses 16(3)(a) and (b), and the establishment and maintenance of the reserves and funds referred to in section 51, and to the reservation and setting aside of the sinking fund referred to in section 24, and towards all other obligations of the board; and the board may pay the Minister of Finance, for investment for the board, such additional moneys as are available for that purpose and as are not immediately required for the purposes and objects of the board.

Funds to be held in trust

47(2)       Additional moneys paid to the Minister of Finance for investment under subsection (1) are held in trust in the Consolidated Fund; and interest earnings thereon shall be credited to the account of the board in the Consolidated Fund or shall be paid over to the board by the Minister of Finance.

Right of board to use funds and securities

47(3)       The moneys referred to in subsection (2), and any investments therefrom held for the board, may be used as required by the board for the purposes of the board.

AUDIT

Audit

48(1)       The accounts of the board shall, at least once in each year, be audited and reported on by an auditor, who may be the Auditor General, appointed by the Lieutenant Governor in Council; and the costs thereof shall be an operating expense of the board.

Special audit

48(2)       Notwithstanding subsection (1), the Lieutenant Governor in Council or the Auditor General may at any time order an audit or investigation into the affairs and accounts of the board and the making of a report thereon.

S.M. 2001, c. 39, s. 31.

ANNUAL REPORT

Annual report

49          The board shall annually, after the end of its fiscal year, make a report to the minister upon all its transactions during its last fiscal year; and the report shall include an audited balance sheet and an audited statement of operating revenues and expenditures together with such other information as the Lieutenant Governor in Council may require.

Tabling of report in the assembly

50          The minister shall lay a copy of the report of the board before the Legislative Assembly forthwith, if it is then in session, and if not, then within 15 days of the commencement of the next ensuing session thereof.

RESERVE

Stabilization reserves

51(1)       The board may establish and maintain and may adjust as required, such reserves or funds as are sufficient, in the opinion of the board, to provide for the stabilization of rates and the meeting of contingencies.

Use of reserves

51(2)       The reserves established pursuant to subsection (1) may be used by the board in such manner as the board deems proper.

TAXATION AND CHARGES

52(1)       [Repealed] S.M. 1989-90, c. 24, s. 96.

Grant in lieu of cost of municipal services

52(2)       The board, as an operating expense, shall make annually to any municipal corporation (including The City of Winnipeg) in which land or personal property of the board is situated or in which the board carries on business, such grant towards the cost of municipal and school services as the Lieutenant Governor in Council may approve.

S.M. 1989-90, c. 24, s. 96.

EMERGENCY CONTROLS

Emergencies

53(1)       Where at any time the Lieutenant Governor in Council is of the opinion that a state of emergency exists in respect of water supply by reason of damage to, or destruction, failure, or breakdown of, any works of the board, wastage of water, demand for water being in excess of supply thereof, drought, or other matters restricting the supply or transmission of water, Her Majesty may, by proclamation issued by the Lieutenant Governor, pursuant to order of the Lieutenant Governor in Council, declare a state of emergency in respect of water supply; and, in that event and during the continuance of the state of emergency, and until Her Majesty, by proclamation issued by the Lieutenant Governor pursuant to order of the Lieutenant Governor in Council, declares the cessation of such state of emergency, and notwithstanding this Act or any general or special Act, or any agreement entered into by the board or by any person to whom the board supplies water, the board may by order or regulation

(a) allocate and distribute water, establish preferences and priorities between different users and classes of users of water, and interrupt or decrease delivery of water under any agreement;

(b) regulate, restrict, prohibit, and control, the transmission, distribution, supply, sale and use of water;

in order to effect what is, in the opinion of the board, the most economical, efficient, and equitable use and distribution of water.

Modification of restrictions

53(2)       During the state of emergency, the board may at any time modify, restrict, rescind, suspend, or re-impose any order, regulation, restriction, prohibition, or control, given, made or exercised under subsection (1).

Cessation of delivery

53(3)       During the state of emergency, the board may order the interruption or decrease of delivery of water, in such manner and to such extent as it sees fit, to any person who fails to comply with any direction, order, regulation, restriction, prohibition, or control given, made, or exercised by the board under this section, by such means as it may deem proper; and may enter upon the land of any person and do whatever is necessary for that purpose.

Entry by distributor

53(4)       During the state of emergency any municipality or water district distributing water may interrupt or decrease the delivery of water in such manner, and to such extent, as it sees fit, to any of its customers who fail to comply with any direction, order, regulation, restriction, prohibition or control given, made, or exercised by the board under this section, by such means as it may deem proper; and may enter upon any land of any such customer and do whatever is necessary for that purpose.

No breach of contract

53(5)       Nothing lawfully done under this section or under any direction, order, regulation, restriction, prohibition, or control made or exercised by the board under this section, or done to enforce or give effect thereto by the board under this section, or done to enforce or give effect thereto by the board, its servants or agents, or by any municipality or water district or the servants or agents thereof, shall be deemed a breach of contract by the board or any such municipality or water district, or entitle any person to rescind any agreement or release any guarantor from the performance of his obligation, or render the board, its servants, or agents, or any such municipality or water district or the servants or agents thereof liable in any action-at-law or other legal proceedings for damages or otherwise.

Restriction of use

54          Notwithstanding that a proclamation has not been issued under subsection 53(1) declaring a state of emergency in respect of water supply, the board may, by general regulation made by by-law, restrict the use of water by users or any class of users within any municipality or water district to which the board provides water.

PENALTIES

Offence and penalties

55          Any person who refuses, fails, omits, or neglects to comply with any direction, order, regulation, restriction, prohibition, or control, made or exercised under this Act is guilty of an offence and, in addition to any other liability, is liable, on summary conviction, to a penalty of not less than $10. and not more than $500., and a further penalty of not less than $10. and not more than $500. for each day upon which the refusal or neglect is repeated or continued.

Penalties for offences

56          Any person who

(a) wilfully or maliciously hinders or interrupts, or causes or procures to be hindered or interrupted, the board or its servants, agents, contractors, or workmen, or any of them, in the exercise of the powers and authorities granted herein as to works, plants, equipment, or water supply; or

(b) wilfully or maliciously lets off or discharges any water so that it runs waste or useless out of the works of the board; or

(c) throws or deposits any injurious, noisome, or offensive matter into the water or upon the ice of any reservoir of the board, or in any way fouls them or commits any wilful damage or injury to the works or water, or encourages any of those things to be done; or

(d) bathes or washes, or cleanses any cloth, wool, leather, skin, or animal, or places any nuisance or offensive thing, in any lake, river, pond, source, or spring, from which the water used by the board is obtained and within 500 yards from the sources of supply of the board; or

(e) conveys, casts, throws or puts, any filth, dirt, dead carcasses, or other noisome or offensive thing in any of the waters mentioned in clause (d); or

(f) causes, permits, or suffers, the water of any sink, sewer or drain to run or to be conveyed into any waters mentioned in clause (d); or

(g) causes any other thing to be done whereby the waters mentioned in clause (d) may in any way be tainted or fouled;

is guilty of an offence and is liable, on summary conviction, for each such offence to a fine of $50. and costs of conviction, or to imprisonment for a term not exceeding 30 days, or to both; and he is also liable to an action at law, at the suit of the board, to make good any damage done by him.

Penalty for taking water wrongfully

57          If any person lays, or causes to be laid, any pipe or main to communicate with any aqueduct, pipe, or main of the board, or in any way obtains or uses any water thereof, without the consent of the board, he shall pay to the board, the sum of $50., and also a further sum of $10. for each day the aqueduct, pipe, or main so remained or remains; and the board may recover those sums, together with costs of suit, in addition to the value of the water taken, by civil action in any court of competent jurisdiction.

GENERAL

Regulations

58(1)       For the purpose of carrying out the provisions of this Act according to their intent, the Lieutenant Governor in Council may make such regulations and orders as are ancillary thereto and are not inconsistent therewith; and every such regulation or order made under and in accordance with the authority granted by this section has the force of law.

58(2)       [Repealed] S.M. 2013, c. 39, Sch. A, s. 92.

S.M. 2013, c. 39, Sch. A, s. 92.

Application of Water Rights Act

59(1)       Subject to subsection (2), the board, in the exercise of its powers and the furtherance of its purposes and objects, shall be subject to The Water Rights Act.

Precedence of board under Water Rights Act

59(2)       Notwithstanding anything in The Water Rights Act, an application made under The Water Rights Act by the board for acquiring water shall have precedence over any other application made under that Act for acquiring water for domestic purposes.

Precedence over other water users

59(3)       Notwithstanding anything in The Water Rights Act, the board shall, for the purposes of that Act, be conclusively deemed to be a person requiring water for a purpose that has precedence under section 9 of that Act over any other purposes for which any water is used, including use by a municipality, a water district, or any other corporation or person, for domestic purposes.

Public Utilities Board Act not applicable

60          Except as provided in subsection 7(5), subsection 8(2), and section 17, The Public Utilities Board Act does not apply to the operations of the board.

Agreements with Canada

61          The minister, for and on behalf of the government, may with the approval of the Lieutenant Governor in Council, enter into agreements with the Government of Canada, whereby the Government of Canada may make available to the Government of Manitoba, moneys to be used for the purposes of this Act or to assist the Government of Manitoba or the board in achieving the objects and purposes of the board.

Grants to the board

62          From and out of the Consolidated Fund with moneys authorized to be paid and applied for such purposes the minister may make grants to the board to subsidize the rates and prices and construction costs of all works acquired, constructed, built made or erected by the board for the purpose of carrying out its purposes and objectives.