Carleton Place council approves historic $145M expansion of water and wastewater treatment plants
Major infrastructure project set to transform eastern Ontario town ‘forever’
The wastewater plant is slated for completion by fall 2027, with the water treatment plant to follow in 2028.
Motion carried!
Upon the raising of seven hands May 20, Carleton Place council awarded the tender for the largest capital project in the town’s history — the expansion of the water and wastewater treatment plants — to ASCO Construction in the amount of $123,505,090.
The project’s all-in cost of $145,868,367 includes net HST, contract administration and inspection, permitting and utility allowances and a contingency of $10 million to address any change orders due to unforeseen conditions.
PROJECT COST BREAKDOWN
- Tender amount — $123,505,090
- Contract administration/inspection — $9,522,000
- Net HST — $2,341,277
- Permitting allowance — $100,000
- Hydro One service allowance — $300,000
- Enbridge Gas service allowance — $100,000
- Contingency — $10,000,000
- Total — $145,868,367
In August 2024, the province provided $35 million in funding toward the project.
Before the vote was called, Mayor Toby Randell stated: “We are going to alter our town because of the decision we are about to make — forever. I think that is important. There are a lot of people in Carleton Place who have grown up and lived here, and we cannot forget that they do not like what is going on in their town. I respect that. I know everyone else around the table does, too.”
Council’s decision was postponed from a previous meeting due to the possible impact of changes to the collection of municipal development charges on the funding of the project — a consequence of the Ontario government’s Bill 17, known as the Protect Ontario by Building Faster and Smarter Act.
Development charges for new housing are required to be paid when the building permit is obtained for the construction of a new residential unit. If Bill 17 passes, the province is providing developers with the option to defer that payment until the unit is occupied, said chief administrative officer Diane Smithson.
“With respect to being able to pay any debt we take out given that delay, we can still apply (development charges) to it after the fact,” treasurer Trisa McConkey said.
The municipality plans to ask the Canada Infrastructure Bank for financing.
McConkey noted the town’s 10-year plan necessitates an annual contribution of $4 million to a reserve account for the replacement of underground infrastructure, which was predominantly constructed in the 1980s and is still in remarkable condition.
“We have this $4 million a year we could use to service the debt until we get development charges back in,” she continued. “We then pay back this reserve, so we have funds for the future.”
The portion of the project that benefits existing ratepayers will be paid from user fees collected over the past number of years.
“User fees will not increase for this project,” Smithson said.
The cost for current users amounts to $8 million, which includes $3 million allocated for the expansion of the water treatment plant and $5 million designated for the expansion of the wastewater treatment plant.
“I was very happy this council decided to defer for two weeks until we got all the information, and we would be able to make an educated decision for our citizens,” Coun. Mark Hinton said.
According to Lanark County’s residential growth projections, Carleton Place’s population is estimated to increase to 20,964 by 2038.
The wastewater treatment plant was built in 1992, with the water treatment plant upgraded around 2002.
In April 2021, the town embarked on environmental assessments for the expansion of the treatment plants to accommodate growth.
In March 2023, the municipality awarded the contract for detailed design and tender for the expansion of the water and wastewater treatment plants to Stantec.
A study conducted by the town in 2024 identified the projected total cost for expanding the wastewater treatment plant was $73 million, while the expansion of the water treatment plant was valued at $40 million.
After a nearly 12-week tender period, which closed April 23, submissions were received from: ASCO Construction, $123,505,090; North America Construction (1993) Ltd., $144,441,854; and Pomerleau Inc., $145 million.
The increase in the project’s price was attributed to escalating material expenses, fluctuations in the market, and a lack of competition in certain trades.
Randell praised the work of the public works department, finance department and administrative staff.
“We have had hours and hours of meetings, hundreds of pages of documents, consultants, the province, the county, and everybody has commented,” he said. “We are going to change Carleton Place, and the seven of us are going to do it.”
Construction is expected to begin this year. The wastewater plant is slated for completion by fall 2027, with the water treatment plant to follow in 2028.
Originally posted on Inside Ottawa Valley
