With five days left until the bid for Collingwood’s water treatment plant expansion expires, councils from the four municipalities impacted haven’t indicated publicly yet whether they plan to accept Kenaidan’s bid for the project, or explore other options.
During a joint special council meeting on Jan. 11 between Collingwood, New Tecumseth, Town of the Blue Mountains and Clearview Township, councillors from all four municipalities were presented with an update on the Collingwood water treatment plant expansion, and how it will impact all four of them.
Following an update on the project from Collingwood's chief administrative officer, Sonya Skinner, the four councils went into closed session for nearly two hours, but did not emerge with a motion to take any action at this time.
“This is a complex project,” Skinner told councillors.
According to information released by the town on Sept. 12 this year, updated costs for the Raymond A. Barker water treatment plant expansion ballooned to $270 million, with an extended timeline to completion in 2028.
Three bids received Sept. 12 from pre-qualified contractors started at $212 million.
At that time, Skinner said the three bids took the town “aback.”
She said many municipalities across the province have seen similar infrastructure project cost increases.
“It didn’t make it any easier for us to open those bids and see those prices,” she said at the time.
The town's water treatment plant has been nearing capacity, running over 80 per cent in 2021. Since then, the town has added some more capacity with more infrastructure at the plant, but the plan was to have an expanded treatment plant operating by 2026.
The lowest bidder for the Collingwood water treatment plant expansion – Kenaidan – agreed in November to give the Town of Collingwood more time to figure out funding solutions for the project, agreeing to extend their bid and price to Jan. 16, 2024. Kenaidan bid $212,581,172 for the work.
Skinner clarified during Thursday’s meeting that the conservative cost estimate for the entire project is still $270 million, which includes the $212 million bid by Kenaidan, in addition to other costs.
“The work for $270 million includes the engineering and construction that has been completed and is underway now, pre-ordered equipment of membranes and UV pieces that allowed us to take some risk out of the bid so (bidders) knew what they were designing for and building to,” said Skinner.
Skinner said the total amount also includes costs for inspection, records, and a contingency amount.
Through Skinner’s presentation on Thursday, she outlined the capacity of Collingwood’s water treatment plant both currently, and anticipated in the future.
Currently, Collingwood’s plant capacity is 31,100 cubic metres per day, with Blue Mountains taking 1,250, New Tecumseth drawing 9,500 and Collingwood taking the remainder.
In phase 1 of the expansion (the subject of the current tender), the new capacity would be boosted to 59,000 cubic metres per day, split between Blue Mountains taking 4,000, New Tecumseth taking 23,500 and Collingwood taking 31,500. Skinner noted that if Blue Mountains decides to back out, Collingwood’s capacity would rise to 35,500.
Skinner explained that the way the expansion is currently planned will allow for a possible additional expansion without major construction down the road when the municipalities find it necessary.
“It’s a good way to set us up for the long-term,” Skinner told councillors.
If the plant is expanded further in a proposed second phase down the road, capacity would rise to 101,000 cubic metres per day, with Blue Mountains taking 16,000, New Tecumseth taking 28,500, Collingwood taking 52,500 and Clearview Township taking 4,000.
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 Thursday’s meeting, Skinner noted that so far, efforts to gain federal and provincial funding for the project have been unsuccessful.
She said the estimated opening date as of now for the water treatment plant expansion is August 2029, assuming the town accepts Kenaidan’s bid this month. If the councils decide to also move into phase two of expansion, substantial completion of that phase is expected mid 2031.
Following the public portion, all four councils went into closed session to discuss the situation further regarding tender options, contract provisions and next steps.
There was no rise and report following the closed session portion of the meeting. Collingwood Mayor Yvonne Hamlin said each individual council would be discussing next steps in the coming days.
“As soon as practical, as decisions are made and contracts are awarded/confirmed, more of the information will move into the public realm,” said Skinner.
