WELLINGTON NORTH – Wary of excessive construction costs, council here deferred dolling out dollars for its 2022 asphalt program at a March 7 meeting until the price for the coming Highway 89 (Queen Street East) reconstruction project was known.
Township director of operations Matt Aston cautioned council at the time any dollars allotted to the asphalt tender would be good as spent and unavailable for the priority Queen Street reconstruction project.
Council heeded the input and delayed committing over $1.26 million to the over-budget asphalt program (plus taxes and an additional ask for $490,500) until the window had closed on March 14 for Queen Street East tenders, giving staff time to understand the financial demands of both prior to voting away limited funds.
Following the arrival of only one quote, staff returned to council on March 21 and presented an amended asphalt program recommendation, trimming the three most expensive portions from the program and recommending council direct “any additional budget dollars” to fund the Queen Street East project.
“After reviewing the bid received from Queen Street East, which has come in significantly over budget, and assuming council’s priority project in 2022 is the full reconstruction of Queen Street East, township staff are recommending that some parts of [the asphalt program] not be awarded,” a March 21 report to council states.
Three of the nine total portions of the program were removed, freeing up $1.07 million for the Queen Street East project.
“The recommendation that’s before you cuts the asphalt program from what we set out to accomplish but what we’re seeing is significant price increases over what we expected,” Aston told council on Monday night.
The portions removed from the program include:
- Sideroad 5 west (landfill entrance west to Concession 9);
- Line 12 (between Wellington Roads 14 to 16); and
- Sideroad 7 east (between Highway 6 and Concession 2).
Approved portions include:
- London Road North (Birmingham ROW to Durham Street East);
- Albert Street (near Oakview Crescent);
- Birmingham Street East (Egremont Street north to Church Street North);
- Church Street north (from Birmingham Street East to Durham Street East);
- Durham Street East (from Church Street North to London Road North); and
- Preston Street South (south of Smith Street).
Although a hefty reduction from the original program, the less costly six portions still came in $57,085 over the $162,500 planned for those portions in this year’s budget, bringing total spending on this year’s asphalt program to $219,585.
Aston blames over-budget project quotes on the increased market price of asphalt cement, noting an increase from $617 per tonne in February of 2021 to $917 per tonne this past February – an increase of almost 50 per cent.
Councillor Dan Yake voiced concern over delaying the three portions until next year, when he suspects material costs will be even higher.
Resigned, he said, “I know pushing [them] off to another year is probably the best solution at this point in time.”
Councillors Steve McCabe and Sherry Burke and Mayor Andy Lennox all voiced support for the recommendation, saying the Queen Street East project couldn’t wait, especially with the province willing to chip in $1.42 million toward the cost.
“We’re not forgetting them,” Lennox said of the removed portions.
“We’re just delaying them for a little bit and hopefully a year from now we can come back at it with more certainty.”
Council carried the recommendation as amended, permitting staff to sign an agreement with The Murray Group Ltd. for the six portions.
