A plan to improve/upgrade the Happy Valley Reservoir is going to cost the Town of The Blue Mountains more than three times the original estimates.
At its committee of the whole meeting on March 18, council unanimously approved a budget increase for the Happy Valley Reservoir (located near Blue Mountain Resort) upgrade project from $150,700 to $550,000.
The original budget was set in 2019 and the town only recently completed a tender for the work. The tender ended up with a low bid of $476,225, the total rises to $550,000 when a contingency and fee for a consultant engaged to help prepare the tender document are added to the final tally.
Using a remote-controlled submersible vehicle, the town had the reservoirs inspected in 2019, which led to the initial cost estimate. The reservoirs were again inspected in 2025 and the cost estimate subsequently increased.
Deputy Mayor Peter Bordignon asked staff if the scope of the work required had changed or if the increase was related to the delay.
“Is this solely based on timing?” Bordignon asked.
Allison Kershaw, the town’s manager of water and wastewater services, said that the scope of the project had not changed. She said the initial budget had been based on a 2019 estimate.
Kershaw noted that dealing with repair/upgrade work for active water reservoirs can be an inexact science. She noted that the town could not drain the water out of the reservoirs to get an exact read on the work needed.
“There are a lot of unknowns when doing repair work to existing infrastructure,” she said.
Coun. Gail Ardiel expressed concern about the budget impacts of the added costs.
“It’s disappointing to see that it’s gone up so much,” she said. “Where are we going to find this in the budget?”
Town staff explained that the entire project is being funded through the town’s asset management reserves. Monica Quinlan, director of finance/treasurer, said the reserve has an approximate balance of $4.5 million.
Kershaw also explained that the town will have to use very careful timing when doing the work. She said when the project proceeds, one reservoir will be drained for repairs. Once the work is completed, it will have to be brought back online and fully tested before work can begin on the other reservoir. She said the town would have to find a window when water demand is lower in order to proceed.
“We’ve had a lot of challenges with this project,” she said.