With one day to go until the offer expires, councillors sat for a three-hour closed session meeting on Monday night to discuss the Collingwood water treatment plant expansion project.
Councillors emerged from the closed meeting to pass a series of motions related to the expansion which would see consultants hired to look at a new advance development charge bylaw for the expansion, as well as to look at possible rehabilitation of the existing plant.
Kenaidan – the lowest bidder for the project work – will also be asked by town staff to again extend their bid validity beyond the current Jan. 16 date, while New Tecumseth, the Town of the Blue Mountains and Clearview Township will all be asked to confirm how much water they intend to draw from the new plant, now with the full cost picture in mind.
“The water treatment plant is something council has had so many discussions on. When we started this we were following the footsteps of previous councils,” said Mayor Yvonne Hamlin. “When it came time to expand this plant, it only made sense to go back to New Tecumseth and see if they would partner.”
“Everyone has proceeded in good faith, but we’ve been left with the unprecedented increases in construction costs for infrastructure that have thwarted our efforts to be able to accept (Kenaidan’s) bid thus far,” she said.
According to information released by the town on Sept. 12, 2023, updated costs for the Raymond A. Barker water treatment plant expansion ballooned to $270 million, with an extended timeline to completion in 2028, which has recently been shifted to August 2029.
The lowest bidder – Kenaidan – bid $212 million for the project. While their initial bid was set to expire in Nov. 2023, Kenaidan agreed to extend the bid validity to Jan. 16 at the request of the Town of Collingwood. Monday's request will be the second time the town has asked for an extension.
Collingwood, New Tecumseth, Clearview and the Town of the Blue Mountains have been working together with some local developers on a task force charged with finding funding solutions, which includes lobbying the provincial and federal governments for assistance with the costs of the new plant.
At a joint council meeting between all four municipalities on Jan. 11, Collingwood’s chief administrative officer, Sonya Skinner, noted that so far, efforts to gain federal and provincial funding for the project have been unsuccessful.
Senior town staff discussed the possibility of advance development charge payments for the water treatment plant expansion in an interview with CollingwoodToday back in October 2023.
“The town would encourage developers to get involved in showing their commitment to the community by working with the municipality on projects that would benefit the community at large,” wrote the town’s communication manager Christa Carter at that time.
Council directed staff to work with two consulting groups through their motions passed Monday night. Staff are being asked to work with Hemson Consulting Group to finalize and advance a development charge bylaw for the water treatment plant. Staff were also directed to retain AECOM to review opportunities, limitations and costs related to interim capacity and plant rehabilitation options should the existing plant be required to meet Collingwood’s needs for eight years or more.
The costs of hiring the consultants was not addressed during the open portion of the meeting. CollingwoodToday is pursuing follow-up questions.
Mayor Yvonne Hamlin put forward an amendment that she would confirm to the provincial minister of infrastructure the town’s request that the province partner in the funding shortfall for the expansion of the plant, which was passed unanimously by council.
Hamlin noted there is an upcoming meeting planned between the Town of Collingwood and the minister of infrastructure at the 2024 ROMA (Rural Ontario Municipal Association) conference.
“I think it would be appropriate that I re-confirm to the province through the minister... that we’re looking to the province to partner in this expansion because of the unanticipated costs,” said Hamlin.
“This kind of project only makes sense now with provincial backing, so I’ll be doing my best. I know every council member will be,” she said.
