Huge cost overruns on upgrades to the Port Dover water treatment plant need to end, said a Norfolk councilor before another $5 million was approved for the project.
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“This project went from less than $10 million to now being $21 million,” said Coun. Alan Duthie at a council meeting on Wednesday. “The last time this came up in September or October I thought I said the same thing I would say now – when does this end? Is this the last time I’m going to hear about this project and a request for further funding?”
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Port Dover has been experiencing water supply issues since 2019. The issue was so severe, the county temporarily halted approvals for new development in the community.
The first phase of improvements to the treatment plant were completed in 2022. An additional water treatment process was temporarily added to the plant to provide an extra 1,200 cubic meters of water daily, allowing additional properties to connect to the municipal drinking water system.
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Phase 2 of the improvements, to be completed by December, will result in an additional 2,100 cubic meters of water per day, bringing capacity of the plant to 7,500 cubic meters per day.
But while the plant’s capacity grows, so has its cost. A report from Norfolk’s environmental and infrastructure services staff shows a history of the project budget, starting at $8.3 million in April 2020 and increasing to the current budget of $21.2 million, including the additional $5 million approved on Wednesday.
Project director Mariana Balaban said there are a number of factors contributing to the project’s higher cost, including construction prices “coming in three to seven times higher” than the estimates; increased scope and complexity to due constraints at the plant site; and specialized work required for lead paint removal and electrical work.
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Included in the additional $5 million for the project is a $1-million contingency fund in case other issues arise.
To offset the budget increase, upgrades to the administration building at the Simcoe water treatment plant will be eliminated.
Duthie, who said the cost overrun is a long-standing issue that predates the hiring of Balaban and Andrew Grice, general manager of environmental and infrastructure services, asked staff how they can assure the public “we won’t end up in this situation again .”
“What will we do differently next time?”
Balaban said the environmental services department will continuously work with purchasing and finance staff on project cost estimates before going to tender. She said meetings will be held ahead of tenders to determine project “risks and unknowns and how we are going to manage them with the proper budget in place and contingencies.”
“There are lots of lessons learned that we took away from this and we are committed to implement many measures for future projects,” said Balaban.
While Mayor Amy Martin said council “appreciates the transparent public reporting” on the project costs, “ultimately, the public doesn’t care who was responsible.”
“They care that they’re getting the best bang for their buck on their tax dollars and this has to stop. I, too, don’t want to see this on an agenda again.”
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