Council green lights $15M in contracts

THUNDER BAY – Council has slashed one of the city’s primary reserve funds by more than half, though they are counting on the federal government for it to be replenished.

More than $15 million in contracts for six city infrastructure projects were awarded at Monday night’s council meeting, including proceeding with all three stages of planned Northwood sewer improvements.

A push by Northwood ward Coun. Shelby Ch’ng to take $735,000 from the stabilization reserve fund to restore the final part of the planned upgrades was unanimously supported by her colleagues.

Contract tenders for the total project came in about $1 million over the allocated budget, with administration recommending delaying the extension of a relief line from McGill Crescent to Dalhousie Drive.

Ch’ng urged councillors that not going ahead with the complete scope of the project could increase liability for the city and that stormwater management is a primary concern in her ward.

“It’s caused a lot of stress for a number of homeowners in the city. I understand there’s work to be done and that it’s more complex than originally estimated,” Ch’ng said.

“While it’s upsetting and unplanned to spend this money, council did vote to keep money in the stabilization reserve fund for these issues.”

The reserve fund entered the meeting with a balance of $7.7 million but was cut to $3.2 million by the end of the night.  

In addition to paying for the third piece of the Northwood sewer upgrades, each of the contracts includes what is hoped will be a temporary appropriation from the stabilization reserve fund while the city awaits the results of applications through Ottawa’s Clean Water Wastewater Fund.

The total amount of those funding applications is nearly $3.8 million.

“If the money is approved, it will be replenished into the stabilization reserve,” city treasurer Linda Evans said, adding that would bring the fund back up to about $7.1 million.

City director of engineering and operations Kayla Dixon said the verdict on those funding applications is expected to be “coming shortly,” which will determine whether the city needs to fill in all or a portion of their request.

“We expect to hear by the time we are making decisions around the beginning of construction,” Dixon said. “Certainly, there will come a time when we need to make decisions to either carry forward projects into 2018 or to try to re-plan those with other funds this year. That time will come probably near the end of June.”

With construction season looming, Coun. Frank Pullia found the timing of the process to be puzzling.

“It’s a bit surprising this federal fund – while appreciated – we prioritized our projects to tap into this funding,” Pullia said.

The other projects that got the greenlight include Crescent Avenue and Empress Avenue storm relief at $2.1 million, sewer and watermain replacement work on Egan Street, Prospect Avenue, Munro Street, Carlton Street and Simpson Street at $1.3 million, Court Street and Banning Street reconstruction for $2.6 million and asphalt surface rehabilitation for about $4.8 million.