GUELPH – At least two county councillors were disappointed with a lack of financial details provided to council about a new $18-million roads garage in Erin.
On May 29, during a county council review of recent committee meeting agendas, councillors and staff had a lengthy discussion on whether or not to delay building the garage.
The plan to rebuild the site, on Wellington Road 124, came to council in May 2023, and construction was planned for this year.
The recommendation presented to council two weeks ago was to award a construction management services contract for just over $5,000 to Waterloo-based Dakon Construction.
“The transparency on the contract award to Dakon Construction for an undisclosed amount with no written report at committee kind of gives me pause,” Lloyd explained.
She noted concern with going into another project without financial accountability, adding, “I question the need for this style of build to go forward.”
Councillor Earl Campbell shared his disappointment in not receiving the final numbers regarding the newly opened Arthur roads garage.
“We’re making a couple-million-dollar financial decision to move ahead based on the budget cost of Erin’s roads garage and we’re not getting any detail up front,” he said.
“I have to support councillor Lloyd’s comments that if we’re going to move forward with this project, we need the numbers …”
Although Campbell was not interested in delaying the construction process, he expressed the importance of having financial statements “before we jump off the next cliff.”
“I would like to apologize to council,” chief administrative officer Scott Wilson said. “It was my intention that the figures councillor Campbell is requesting [would] be included in this report, that’s my fault.”
The delayed figures stated Dakon’s proposal for construction totalled $11.76 million, with a budget of $12.5 million.
This proposal left the most money for the “actual construction,” Wilson said.
Dakon had the lowest pre-construction bid compared to three others ranging from $5,000 to $62,500.
The proposed construction budget ranged from $11.76 to $10.95 million.
After receiving the figures, councillor Steve O’Neill questioned if “we vote to delay this are we saying we’re not going to do the project in 2026?”
Wilson replied, “It’s up to council.
“If you want to delay it until we can provide absolute, final, no-questions-asked accounting … it’s going to be some time.”
“My issue is still why couldn’t we have added this before committee and now before council,” Campbell stated. “I just want to be clear … the only thing we are committing to today is $5,050.”
Wilson again apologized for his error.
“I don’t want anybody to get the thought in the mind that this is a $12.5 million project,” stated country treasurer Ken DeHart.
“The numbers that were passed out today, the budget figure … is the construction budget not the all-in project budget.”
The overall project budget is $18.4 million, he added.
“Aren’t we committing to spending this $5,000 but aren’t we also committing to deciding which horse we’re going to cross the stream with?” asked councillor Andy Lennox.
“We’re not going to spend this $5,000 and then come back and decide we’re going to go with a different construction process.
“We’re committing to them (Dakon) through this process,” he said.
Wilson replied, “Dakon will get the job for $5,050 and when they’re done that process, if they come up with a number that is unacceptable, the deal’s over.”
He added, “But yes, if it goes further, they will be the constructor.”
The motion to award Dakon Construction for the pre-construction phase of their construction management services for the Erin garage project, was put to a vote.
All councillors except Lloyd voted in favour of the motion.
The county currently has eight garages across the municipality.
