The tender for the second phase of the Walton Street Reconstruction project closed on November 3, 2023. However, there was only one compliant bid, and the quoted project costs were significantly more money than the Municipality had initially planned for this project. The proposed budget is too high for what the Municipality approved. Staff have written a report to Council, suggesting that they cancel the current bid and break the project into two parts over two years to better manage costs. Council will discuss and decide on this report at the upcoming meeting on Tuesday, November 21, 2023.
Project Budget Details
The approved 2023 budget for the second phase of the Walton Street Reconstruction Project is $6,409,000. Out of this, $3,011, 255 still requires funding, and this amount is part of the proposed budget for 2024. However, the bid for the project came in at $8,953,854. On top of that, there are extra costs not included in the bid:
- $896,000 for unexpected issues (10% contingency)
- $481,192 for contract administration and inspection
- $25,000 for communication purposes
- $40,000 for material testing
- An estimated $100,000 for refurbishing streetlights
Based on the bid received, this would bring the total budget requirement to $10,496,046.
Staff cannot support awarding the project to the sole bid received and recommends cancelling the contract and not awarding the project based on having insufficient funds. This is the most fiscally responsible course of action.
Proposed timeline
To better manage construction and costs, a revised proposed timeline has been recommended. The upcoming phase of work is set to focus on the reconstruction of Walton Street between Queen Street and Cavan Street in 2024. Looking ahead to 2025, the budget will earmark resources for the third phase, addressing the stretch from Cavan Street to Pine Street. Notably, the segment of Walton Street spanning Queen Street to Mill Street will undergo a different treatment, limited to milling and re-paving the asphalt surface. This particular work is scheduled to be carried out as part of the 2025 project.
For more details, read the full staff report. Council will consider the report at their meeting on November 21, 2023.
2023-11-17
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