Guelph-Eramosa has approved road improvements on York Street in Eden Mills that are almost double the 2017 budgeted amount.
But director of public works Harry Niemi explained the actual tender amount of $214,670 (including HST) from Drexler Construction contains several projects not originally included in the $109,000 budget estimate.
York Street will see improvements between Cedar Street and Chapel Street, Niemi explained at the Sept. 5 council meeting.
The construction was included in the 2016 and 2017 capital budgets, with the $109,000 estimate based on road re-surfacing, pulverizing, paving and replacing some of the sidewalk.
However, after working with a consultant and following public meetings at the Eden Mills Community Hall, township officials realized there is a need for drainage improvements, two culvert repairs and curbing along York Street.
“It was estimated at about ($)180,000 which is a jump from [$109,000], but the features that kind of came into it readily explain that increase,” Niemi told council.
Drexler Construction Ltd. offered the lowest of five bids for the work, at $214,670.
“We did consider not proceeding this year if we were paying the premium,” Niemi said. “I think it’s beneficial to just get the job done this year. Working with finance, the road reserves are available there. It’s money you could spend this year or next so I recommend we move forward with this project in 2017.”
Councillor Mark Bouwmeester did not support going over budget.
“Why are you recommending to do it now? Why not bank the [$109,000] that’s in the budget already and do the project next year?” he asked.
Niemi explained he didn’t think there would be any benefit to waiting until next year to reissue the tender.
“It may not come in at [$214,000]; there’s a chance it could come in at [$200,000] but there’s also a chance it could come in at [$240,000] if asphalt goes up or other things,” he said.
Mayor Chris White said he didn’t consider the project to be over budget because of the additions.
“The [$109,000] was a placeholder when we first looked at it a couple of years ago as just a basic resurfacing,” he explained.
“But when we went in, figured out what the community hall was doing and then … we added in curbs which we didn’t have, some culverts that need to be repaired and some sidewalks and stuff … That’s why the budget’s gone up.”
Bouwmeester said he still didn’t understand the justification for using unbudgeted funds.
Councillor Corey Woods said he could understand Bouwmeester’s hesitation if every project was over budget this year, but some have come in under budget.
“We’re doing extra work here,” said Woods. “If you need curbs and gutters … I’m fine spending the money … if that is what’s needed.”
Councillor David Wolk suggested providing a total budget for each department at budget time.
“It might be useful to say at some stage you know we budgeted ‘x’ amount of dollars in total for what we’re going to do and we had one that was over and another that was under but here’s where we are today,” he said.
“I think we need to get away from this idea of trying to hang everything we do out there as an individual item.”
White explained completing the project this year or next year made no difference because it’s the same money that’s sitting in reserves.
“The community has been waiting for it for a number of years as well,” White said. “We’ve actually been trying to get this on the road probably for three or four years because they put a lot of work into that community hall.
“This would be a nice thing for the township to step up and partner and get this road cleaned up at this point when monetarily it’s the same thing.”
Council approved the $214,670 tender from Drexler Construction with just Bouwmeester opposed.
The other bids (including HST) were:
– Cox Construction for $225,883;
– Capital Paving Inc. for $257,012;
– Steed and Evans for $271,000; and
– Gedco Excavating for $284,553.
