Guelph-Eramosa came in far under budget for the Township Road 1 replacement.
Originally the two separate projects, about 1,480m from Wellington Road 124 to Fife Road, and about 1,390m from Fife Road to Paisley Road, were given a combined budget of $925,000 in the 2017 budget.
However, on June 5, the township approved the lowest bid of $521,144 from Cox Construction for both projects.
“Maybe a bit of oversight on my part, but I kept them as two projects as they were two assets,” director of public works Harry Niemi said.
“So we completed some design work, figured out exactly what we were going to do with that road and advertised for tender.”
The township received five bids, with Cox Construction’s being the lowest. With engineering and inspection Niemi said there would be $355,000 left over from the budgeted $925,000.
Niemi attributed the savings to asphalt costing less than the budgeted amount, no gravel being required, and the combining the two projects.
“That’s a good News story,” Mayor Chris White said.
Councillor Corey Woods asked if the savings were enough to replace a culvert on Township Road 3 that is failing. The township applied for a grant for that project but was unsuccessful.
However, Niemi said there wasn’t enough left for the $500,000 price of the culvert replacement.
“If we’re going to put money towards anything I think it should be towards that culvert,” Woods said.
Niemi said there’s still a possibility to receive Ontario Community Infrastructure Fund (OCIF) funding.
“That discussion we had when we decided not to move forward was that there is another uptake of the OCIF funding, but I believe from the integrity of that culvert it needs to be done next year regardless … and I’d like to apply again for the OCIF and beef that up in the hope that we get it,” Niemi said.
Councillor Mark Bouwmeester was more focused on the savings rather than how to spend the money immediately.
“Happy is an understatement,” he said. “To be ($)355 (thousand) the other way; if it went the other way where we end up being short then we have big problems.”
He asked how the $355,000 would affect the 2017 budget.
“We won’t spend it and it will stay in the reserve so that we have it to spend at council’s discretion next year or should they decide to do the culvert now,” said director of finance Linda Cheyne. “So, it will stay in the (gas tax) reserve until the 2018 budget.”
White said the unspent funds will make it easier to move ahead with the culvert replacement in the future even if OCIF funding doesn’t come through.
“We get an important stretch of road fixed, it gives us a little bit more flexibility in terms of the culvert next year, no matter where this money goes,” he said.
Niemi said the construction on Township Road 1 is set to being in July once school buses are off the road for the summer.
The other tenders include:
– Steed and Evans Limited for $567.260;
– Brantco Construction for $572,017;
– Capital Paving Inc. for 581,012; and
– E and E Seegmiller Ldt. for 656,277.
