Grey County is seeking a new agreement with the Town of The Blue Mountains to relocate a town water booster station as part of a major road project.
At its meeting on May 9, county council approved a staff report recommending that negotiations begin between The Blue Mountains and the county to strike a new memorandum of understanding (MOU) for the relocation of the town’s water booster station as part of the construction of a roundabout at County Roads 19 and 21 near the Village at Blue.
County council discussed the matter in both open and closed sessions before passing the resolution to terminate the existing MOU between the town and county and negotiate a new agreement.
The Blue Mountains Mayor Andrea Matrosovs and Deputy Mayor Peter Bordignon both declared conflicts on the issue, as it involved an active negotiation between their town and the county.
As part of the roundabout project, the county must relocate the town’s water booster station located at the intersection of 19 and 21 on the corner of the driving range property now owned by The Blue Mountains.
In 2022, the town and county agreed to a 50/50 cost-sharing agreement for the move of the booster station, which was estimated at $2 million.
However, since that time, the cost estimates have increased due to inflation. In addition, costs have gone up as the town is upsizing the booster station to handle future development in that area of the community.
The new estimated price tag for the project is $6.9 million. The town purchased the driving range property and is providing land to the county for the new booster station.
“It totally makes sense – upsizing for future development,” said Pat Hoy, the county’s director of transportation services. “It is quite a change in scope from what is there.”
Hoy said the scope of the project has changed so significantly that the existing MOU between the town and county no longer applies and needs to be redone.
County council approved a resolution directing staff to notify The Blue Mountains that the existing MOU would be cancelled and to commence negotiations on a new agreement with the town that will come to council for approval in the future.
