Going ahead would pile $4 million tax burden on community
KAGAWONG—Citing costs that far exceeded what had been expected and that would leave as much as a $4 million price tab, for the township to make up, Billings township council rejected tenders for the Main Street Hill Reconstruction project during a special council meeting last week.
Billings Mayor Ian Anderson noted at the beginning of the meeting, “we are holding this meeting here today for a single purpose. To review the Main Street Hill reconstruction construction tenders and the three bids we received. I would also like to provide a little history on this,” noting the township had received provincial funding of up to $927,000.
The main purpose of the project was to correct the ongoing problem of water drainage issues and pedestrian safety on the hill leading to the village, explained Mayor Anderson. “Some time ago Tulloch Engineering had been hired to complete the application for the township. Tulloch Engineering estimated the project cost would be approximately $1.2 million.”
Mayor Anderson noted the township had been successful in its application for funding with the provincial government committing up to $927,000 toward the project.
EXP was then hired by the township to provide the reconstruction plans and the value before tender was estimated at $2.1 million (in February 2019), an increase from the previous estimate of $1.2 million.
The three tenders Billings council considered at its meeting last week included: Dominion Construction 1650939) Ontario Ltd. at $4,958,244.01, Dennis Gratton Construction Ltd at $4,826,340.11 and R. M. Belanger Limited at $4,405,960.40.
“As we can see, there is a huge gap exists between the projected tender cost and the actual tendered cost,” said Mayor Anderson. “This huge gap in funding would be the responsibility of the township. So now I will ask, how does council feel that we should proceed?”
“How did this happen, that there would be such a change in the (estimated) amounts?” asked Councillor Sharon Alkenbrack. “Is it because everything was changed in the plans? No. I don’t think we can afford this. It is very disappointing.”
Councillor Sharon Jackson raised a concern regarding the amount the township would have to come up with in terms of the costs of the project.
“You can call it a possible $4 million tax burden to the community,” said Councillor Bryan Barker. “This is totally unacceptable. This is a huge increase.” He called it frustrating and disappointed. “I am dumbfounded how the costs could increase to this amount.”
Councillor Barker acknowledged, “there has to be something done to the Main Street Hill in terms of the necessity for safety reasons and drainage. I don’t want the public to get the idea we are walking away from this project. We will have to investigate other funding options and avenues.”
“I also agree this would be too much of a tax burden. These costs are way higher than we ever expected they would be,” agreed Councillor Michael Hunt.
It was pointed out that there was a recently announced government funding release and council discussed applying for funding under that funding envelope.
“The provincial share of funding will need to be much more significant,” said Mayor Anderson. “So are we committed to reapplying for funding with hopes that the province is agreeable to providing more funding? Regardless, obviously it will delay the project. It is not feasible to take on this project at this time with the costs being on the backs of our taxpayers. To saddle the township with a 25-year debt is not something we want to do.”
Councillor Barker said council rejecting the tenders at this point because it would force such a huge debt load on the township, “shows responsibility on our part. We all recognize that we can’t afford this. I think we should (reject the tenders) and reapply for funding.”
Council passed a motion to reject the tenders it has received for the project and to reapply for funding through the government. The township will explore all its options.
