With new cost projections coming in at more than $3 million over the original estimate for a new public works garage in Mapleton, Wellington County is revising its financing plan for the project.
The county’s current five-year plan includes funding to build a new 11-bay, 20,000-square-foot county roads garage at the Mapleton Township administration and public works site on Sideroad 16. The new shop will replace the county’s current facility in Drayton.
“The project was allocated $4 million, and this amount has proven insufficient to complete the project as planned,” states a report to the roads committee from county operations manager Paul Johnson.
The report, presented to county council on June 29 indicates the project cost has climbed to $7.12 million.
Current phase-by-phase projections for the project include:
– Phase I, decommissioning of the existing site and the land purchase and related legal fees for the new site, $270,000;
– Phase II, building construction phase, $6,000,000;
– Phase III calls for work to be completed in 2018 and includes the purchase and installation of a new sand dome and the paving of the parking lot, $850,000.
Roads chair councillor Gary Williamson told council the committee had a lengthy discussion on the revised estimates at its June 13 meeting.
“This was an interesting discussion to say the least,” said Williamson. “It was a bit of a shock; [it’s] significantly more than what was budgeted.”
Williamson said the committee and staff considered numerous options to reduce costs, including building a smaller shop, doing an internal redesign or deferring the project.
“The facts are that we need the shop. We’ve purchased land. We’ve already shared costs for a wash bay with the new Mapleton shop and we’re building a building for the next 50-plus years, not for the next five or 10 years,” he stated.
Williamson explained the committee recommended continuing the project with the original design and following the original tender schedule.
However, it will be made quite clear “the lowest or any tender may not be accepted and, depending on tenders, we may want to re-tender in the spring,” he noted.
Under the schedule, tenders are set to be called in July or August and awarded in September.
“So in September the tender will be (sent) to committee for approval and it will be up to council to make a decision at that time about moving forward,” said Williamson.
“We’ll also be able to review the funding options, (including) pushing back the Erin and Brucedale shops and possibly moving back some road capital projects. The goal is to reduce the impact on the taxpayer as much as possible.”
The staff report notes a development charge study update completed in 2017 identifies eligible growth-related capital funding for Drayton.
“To help ease budget pressures staff are recommending the issuance of development charge-funded debt to the maximum amount eligible ($3.45 million), reducing the draw from the roads capital reserve and future levy requirements to fund debt servicing costs,” the report states.
Since the existing Drayton garage property on 30 John Street will no longer be required, staff also recommended potential sale proceeds from this property be directed to completely fund Phase I of the project and be put towards Phase III.
“The final decision is in September, so it will be done in time for budget deliberations and discussion, so we will know where we are at moving forward in 2018,” said Williamson.
Council approved the committee report and recommendations.
