An upgrade to the Town of St. Paul's Water Water Plant has hit some bumps, which will result in a projected shortfall of $1.7 million.
"We have heard from our consultants on the Waste Water Plant upgrade that our projects have been effected by a couple of outside factors," said CAO Kim Heyman, during the March 25 council meeting. "First of all, the cost of the equipment that has been ordered came in over budget, due to the aluminum and steel tariffs put in place by the U.S."
A second issue has to do with the lake itself. With increased water levels being experienced over the last couple years, "the impact to the water systems in now two lakes instead of one," explained Heyman.
Originally, the town only had to monitor Upper Therien Lake, but now Alberta Environment is requiring the town test and monitor Lower Therien Lake as well.
"Our consultants have applied for a ICIP grant to cover the shortfall . . . In the event that we do not get the grant . . . I am recommending that we get a borrowing bylaw in place," said Heyman.
The CAO said she spoke with the town's auditor and was waiting to hear back on how borrowing the amount of money required will impact the municipalities borrowing limits.
"If the grant doesn't come through, we have two options. We can either fund the shortfall through accumulated surplus, or we can take out a debenture," said Heyman. "By taking out a borrowing bylaw now, we leave ourselves the option of proceeding with the debenture borrowing or taking amount of accumulated surplus. If the grant to cover the shortfall doesn't come through, (council) can decide which way to go and if necessary rescind the borrowing bylaw."
The project is being reviewed by the consultants to see where cutbacks can be made.
Town of St. Paul Director of Utilities Bert Pruneau was in attendance for discussions about the challenges, Monday night. Pruneau presented council with a few different options, including the initial estimate of the project, a current estimate, an estimate without grit removal, and an estimate without digesters.
The feasibility study cost estimate of the project was just over $11 million, which is what the new numbers are compared against. The new price tag could surpass $12.8 million, according to November 2018 estimates.
Changing the system could see some cost-savings, according to the information presented on Monday night. Having no grit removal would result in a $333,000 overage; while having no digesters would result in a $529,000 overage.
Pruneau explained that the "no grit removal" option would cut out the part of the process that removes sand, concrete, and even organic materials such as coffee grind and seeds. The grit can be harder on the overall system, and would have to be physically removed on a regular basis.
"It's going to increase your maintenance costs," said Pruneau.
"It's not just money," said Town of St. Paul Maureen Miller, when presented with the various options. She noted that council is making a decision for future generations, and asked if removing any part of the overall system will have an impact on the original target to improve the water quality of Upper Therien Lake.
Pruneau noted that while taking away parts of the system would have an impact on the original target, "anything is going to be better" than what is currently in place. But, he also noted he felt it's usually a benefit to invest the funds "right off the bat."
"It's pay now, or pay later," said Pruneau.
Coun. Ron Boisvert acknowledged that it was "nobody's fault" that the increase in cost is being seen.
"This has been designed for exactly what our community needs," said Miller. "We're trying to leave a better place. That's our job."
Council approved a motion to allow administration to proceed with researching a borrowing bylaw, with the acknowledgement that the borrowing bylaw could be rescinded if it wasn't needed.
Background
According to a story published in the St. Paul Journal in January, the waste water plan upgrade would position the town well for the next 20 years, and the treated effluent being pumped into Upper Therien Lake would be in line with Alberta Environment standards.
Information presented to the town in early 2018 noted the upgrade would result in an 80 to 95 per cent improvement to the effluent entering the lake, compared to what was currently coming from the plant.
“We are doing upgrades so that the Town is able to provide treatment to a standard that is environmentally safe for the public and the aquatic life,” said project engineer Ivan Kagoro, in a Jan. 29 story with the St. Paul Journal.
