Centre Wellington council is refusing to allow one refusal for a grant stop it from trying again – especially since that grant could run into millions of dollars.
Council voted on Monday night to try again for a grant from the Building Canada Fund – Communities Component, for a total of $15.6-million to do upgrades to the Elora sewage treatment plant.
If successful in its second attempt a number of rounds of funding from that program, council would receive $5.2-million from each of the federal and provincial government, and pay another $5.2-million itself as its one-third share of the work.
Council has the money on hand because of the slots facility in Elora that pays it five per cent of slots profits. All the money from the slots is used for infrastructure, and council has been using that cash to leverage two dollars for every one it receives from the slots through the grant programs.
Council also named its top priorities for the Infrastructure Stimulus Fund. That, too, is a joint grant program with the federal and provincial governments.
Treasurer Wes Snarr pointed out that in the Building Canada Fund grant program, municipalities may apply for only one project, but the Infrastructure Stimulus Fund allows each municipality to apply for three. Both grant programs operate with each level of government paying one-third shares of the projects’ costs.
In the second program, Centre Wellington is applying for three major projects. They are:
– replacement of the Forfar Street Water Tower in Fergus, for $2.6-million;
– road reconstruction of Sideroad 19, Burnett Court, and Victoria Crescent, all formerly in old Nichol township, just north of Fergus, for $2.332-million; and
– extension of sewermains and laterals along Sideroad 19, Burnett Court, and Victoria Street, for $611,600.
Council learned about the grants about two weeks ago and Mayor Joanne Ross-Zuj commended staff for working so hard to get them ready for the May 1 application deadline. She noted staff had been working weekends in order to meet the deadline.
Ross-Zuj added that council had held “quite a few meetings” to determine which projects to pursue.
Federal and provincial officials stated early in the year that municipalities should have “shovel ready” projects prepared and warned that grant programs would be announced suddenly and with short deadlines. The idea is the money will be able to stimulate the economy quickly with work ready to go.
Ross-Zuj was pleased the township was prepared with the projects, and optimistic that it will gain some grant money.
Snarr noted that the deadline for completing the projects is March 31, 2011.
Councillor Fred Morris said that on one part of the application, council had made some changes to the for the sewage plant.
Triton Engineering’s Dale Murray said the application is “pretty much the same,” but he “spelled out” more details for this grant attempt.
Councillor Bob Foster noted that the administration building for the plant is costing nearly $2-million, and wondered why it is so much.
Snarr said that was the estimate by Triton, and had not changed from the first application.
Public Works Director Ken Elder explained that the building will house not only offices, but laboratories, electrical equipment, controls and intakes, as well as monitoring equipment and a diesel room.
That caused Foster to suggest “administration building” is “a vague title.”
He then noted the high cost for engineering and contingencies, and said some costs add up to $4-million.
Elder said those are estimates, and a 10% contingency fund and 15% engineering fee is standard. He also pointed out that the estimates take into account that the project might not be built for a while, and they consider possible extra costs if there are delays.
Ross-Zuj thanked the staff for its work with only two weeks notice, and said, “Sometimes our processes get condensed.” She added, “We hope for success.”
