GUELPH/ERAMOSA – Council here has awarded a contract for the rehabilitation of two roads for just over half a million dollars.
On May 2, council reviewed tenders and awarded the Blue Forest Crescent (Hamilton Drive subdivision off Highway 6) and Promenade Road (between Wellington Road 124 and Speedvale Avenue) projects to Steed and Evans Limited for $515,000 including HST.
Council also approved the allocation of $67,000 in additional funding to complete the Blue Forest Crescent project from the infrastructure renewal reserve fund.
The 2022 budget included separate capital projects for the resurfacing of the two roads, budgeted for a combined total of $536,000.
As the projects are similar, they were combined into a single tender.
“They were two separate projects and as such they were funded from two different sources, Blue Forest being funded from [the Ontario Community Infrastructure Fund] and the Promenade portion funded from gas tax,” public works director Harry Niemi explained. “It’s more than just the resurfacing. There is some removal and replacement concrete curb and adjustments to some settlements around manholes and catch basins.”
The report noted the total project cost is below the approved combined budget for the two capital projects.
However, taking into account engineering design, construction inspection and testing, contract administration and contingency, the total cost would likely exceed the approved budget.
“In essence the Promenade tender was under budget by approximately $48,000,” Niemi explained, but “the Blue Forest was about $67,000 over budget from what we had intended to take from the OCIF funding. “So the net result is we’re only about $19,000 over budget when it’s all said and done.”
While the projects were budgeted at $536,000, the actual costs were $395,000 for Blue Forest Crescent and $160,000 for Promenade Road, for a combined total of about $555,000, the report noted.
Considering the different funding sources, Niemi said additional funding of approximately $67,000 is required for the Blue Forest Crescent project.
Councillor Corey Woods took issue with the selected contractor noting a previous job completed on Speedvale Road years ago generated several complaints.
“So I want to get both of these projects done but … I’m not hot on the idea of giving that to them,” he said.
Niemi noted that from what he could remember, the root cause of the previous issue was with an asphalt spreader that caused a “driveability issue.”
“That was a bit of a one-off issue,” he explained, adding, “I don’t anticipate any problems and we’ve had a good relationship aside from the one issue …
“I wouldn’t expect or certainly wouldn’t hope for a similar issue.”