Despite a significant rise in cost of the planned Drayton water tower, Mapleton council decided it was too important and risky to delay the project any further and approved it.
A report to Mapleton council recommended awarding the Drayton elevated tank at a cost of around $6 million.
This is 30 per cent higher than an earlier estimate of $4 million.
COVID impacts to the supply chain were directly attributed to causing a rise in the cost of material necessary for this project.
CAO Manny Baron said engineering consultant firm CIMA+ has agreed to take a percentage based on the original estimated cost and not the current bid.
However, it’s not just costs that are concerning staff. Baron said they are “teetering in the danger zone” when it comes to having adequate water pressure to battle any potential fires.
“It’s a fear of ours that if we don't do something with the water tower, the elevated tank, we’re going to run out of water pressure at some point,” Baron said to council.
The result of approving the tender would mean raising water and wastewater rates for users by an average of $0.77 per day or $282.27 yearly effective Jan. 1, 2022.
Baron said this is unfortunate but, “for the safety of the residents I do believe it is a must.”
Coun. Marlene Ottens asked if there was anything that can be done in regards to the contract where the contractor would return funds to the township should the price of commodities drop.
Stuart Winchester, from CIMA+, said because of the volatility of the commodity prices currently, the contractor would be securing the products as soon as he’s advised of the tender award.
He also cautioned that re-tendering at a later date would be risky as there is no guarantee the prices will drop in the near future.
When asked if the township could go with a different technology than the water tower, Winchester advised that a recent analysis showed the long-term costs would be cheaper than other alternatives.
Coun. Paul Douglas wondered if there were any reserve funds that could be shifted around to help relieve the tax burden.
John Morrison, Mapleton’s director of finance, said the burden on ratepayers would not be any different if they borrowed money from themselves and this would further risk compromising other planned projects.
Mayor Gregg Davidson said this is a tough situation the township has been put in and noted he has been meeting with their MP John Nater and MPP Randy Pettapiece to discuss this issue.
“This is core infrastructure and there’s no funding out there federally or provincially to assist us at this point in time,” Davidson said.
Nater has recognized this financial challenge by writing to Prime Minister Justin Trudeau and Catherine McKenna, minister of infrastructure, asking for them to meet with Davidson and Baron.
In the letter he details the problem the township is facing and declares existing federal infrastructure as too restrictive and are leading to situations like this one.
Nater noted the application-based approach to municipal infrastructure funding is burdensome for small and rural municipalities.
“Municipal councils and administrators in my riding have grown increasingly frustrated with the restrictions placed on federal infrastructure transfers,” Nater wrote.
“Municipalities require the freedom to invest in the critical infrastructure of their communities and should not be limited to the priorities of the federal government.”
At the meeting, Davidson said it may be too late for the water tower but any changes could help their future wastewater projects still to come.
“If we get some funding for that we might be able to offset some of the costs of this,” Davidson said.
“It’s going to be really hard for us to pass on these costs to the community.”
Mapleton council unanimously approved the tender.
