Grey Highlands council was not comfortable with 2024 budget pre-approval of more than $450,000 in engineering costs for a significant infrastructure project in Markdale.
At its meeting on Sept. 20, Grey Highlands council considered a staff report that recommended selecting a bid for engineering services for infrastructure work in Markdale at Lawler Drive and Brackenbury Street. The total cost of the engineering contract is more than $650,000, with just $200,000 available in the 2023 budget.
Staff asked that council approve the awarding of the contract to B.M. Ross and Associates Limited with the unfunded $450,000 being pre-approved in the 2024 budget.
However, council was not pleased being asked to pre-approve such a significant amount months before the 2024 budget deliberations. In a 4-2 vote, council voted to defer the matter. Deputy Mayor Dane Nielsen and Coun. Nadia Dubyk voted against the deferral. Mayor Paul McQueen was absent.
“I’m still having difficulty with us deciding this pre-budget,” said Coun. Paul Allen. “It seems like an awful lot of money to just do the engineering and we still have to do the actual work.”
The project involves infrastructure upgrades at the subdivision in that area of Markdale. It would involve improvements to the underground water and sewage works, stormwater management upgrades as well as bringing streets up to standard by adding curbs and sidewalks. The subdivision was built in the 1970s and the underground infrastructure in the area has experienced multiple problems in recent years.
It was originally estimated the engineering work needed in advance of the construction would cost approximately $200,000, which was significantly less than the bids received for the work.
With the 2024 proposed budget not scheduled to be tabled for council consideration until November, members of council were reluctant to grant pre-approval to the amount requested by staff.
Municipal staff explained that they hoped to secure grant funding for the project and that some of the costs would be funded by the tax levy, while some would be covered by the user pay water and sewage department.
“Engineering for this project is a very long process,” said Shawn Moyer, director of environmental services. “The project is going to span a couple of years. We need to get moving. It is a long-term project.
Chris Cornfield, director of transportation and public spaces, said the engineering work needed for the project is significant. He said there would be survey work, an environmental assessment process for the stormwater plan, electrical considerations and pre-engineering for the water and sewage components.
“It’s an all -ncompassing project moving forward,” said Cornfield.
Members of council asked if the engineering work could be phased, with the $200,000 allotment in the 2023 budget being enough to cover the early costs until the 2024 budget decision could be made.
CAO Karen Govan said once council awarded the project to a bidder, the municipality would have to stick to the contract or it would be at risk of being in breach. She suggested council defer the matter and staff could have further discussions with the engineering firm about how the work would roll out.
The majority of council agreed with the deferral option.
“I’d be more comfortable if I knew where the funding was coming from,” said coun. Tom Allwood.
