BONNYVILLE – The much-anticipated regional waterline is facing yet another setback.
With the project nearing completion, Town of Bonnyville CAO Bill Rogers explained during a special council meeting on July 23 that the final price tag has increased by $10-million to $93-million.
“Unfortunately, the Province of Alberta has advised us that they aren’t willing to provide any additional funding to any of the grants for the project,” he said, adding the current funding arrangement has the province paying for around 90 per cent of the initial $83-million estimate while the town covers about 10 per cent.
“They paid up to the amount originally forecasted, but they haven’t agreed to pay the extra amount.”
Council passed a motion to lobby the government to increase their funding to cover the overages. If the province agrees, the town would only be required to cover around $1-million of the unbudgeted expenses for the waterline.
In the event the province doesn't up the grant, the municipality would have to find ways to pay for the extra costs.
Director of finance Renee Stoyles said roughly $3.2-million would be used from the 2018 ID 349 funding, about $2.1-million from the 2019 inter-municipal cooperation program (IMCP) funding, $2.5-million from the 2019 ID 349, along with $212,211 from the remaining grant interest and $56,123 from the 2020 waterline grant interest. The roughly $2-million remaining from the MD's portion of the project would cover the deficit.
“Should the province come forward and decide to give us grant funding of 90 per cent, we would have $7.3-million that we could use for other infrastructure (projects) in the town,” detailed Stoyles.
According to Mark Power, adviser to the CAO, there was no indication to the town or the Bonnyville Regional Water Services Commission from Alberta Transportation that they weren't going to carry through with the 90/10 funding split until last week.
“We went through all the funding scenarios and reviewed all of the change orders for the project, submitted an ask, and we haven’t had a response to that ask other than an email, which was received by Renee, saying there’s no point in submitting anymore claims because we’ve reached the maximum grant amount given.”
Mayor Gene Sobolewski stressed when the town took responsibility for 10 per cent of the waterline project costs, they discussed the risks that could be involved.
“One of the risks that we definitely talked about was the fact that if something was to go array and we have escalation on the project, we were assured by the Province of Alberta that they would cover the escalations, the way things go, and there isn’t an issue,” he exclaimed. “What the Province of Alberta has done is come in and say ‘oh, by the way, guys, on the escalations you have, we decided not to pay our 90 per cent.’ That’s what this council is dealing with is that the province has once again slapped us on the side of the head and surprised us.”
Coun. Ray Prevost agreed, “The bottom line is the province isn’t honouring the 90 per cent and that’s what’s putting us in this predicament right now.”
The regional waterline construction officially broke ground in 2018, with work beginning on the Cold Lake water treatment plant in October while the actual waterline was delayed by a month or so while crews waited for Alberta Environment’s approval.
The pipeline will transfer water from the Cold Lake water treatment plant through the transfer station located near 4 Wing Cold Lake, along Hwy. 28 before heading along the Iron Horse Trail to the Bonnyville pump house and reservoir.
Power noted that over 90 per cent of the project is complete, and there’s no delays expected in the coming weeks.
“We’re just waiting for two barriers to pass the pressure test, and they’ll finish disinfecting it,” he explained. “Then it will be commissioned, and once it’s commissioned then that’s when the surface works that are deficient, like the trail needs to be fixed in certain areas and that sort of thing, (will be completed.)”
The commission is still anticipating that Cold Lake water will be running to Bonnyville by late August or early September.
