Collingwood, New Tecumseth and Kenaidan Agree on Additional WTP Tender Extension
In November 2023, the Town of Collingwood was able to negotiate an extension for the Water Treatment Plant Expansion Project Tender with the lowest bidder Kenaidan Contracting Ltd (“Kenaidan”). This extension agreement was put in place to ensure that the bid prices were maintained until January 16th, 2024, allowing the two municipalities additional time to vigorously pursue funding options needed for the project, estimated to be in the range of $270M.
The Towns of New Tecumseth and Collingwood continue to work together on the required expansion of the Raymond A. Barker Water Treatment Plant to ensure the needs of both communities are met. Collingwood has facilitated regular working group meetings with New Tecumseth, local developers, and other potential municipal partners through the Task Force set up in the fall of 2023, to explore possible funding options and programs, as well as having discussions with multiple Provincial Ministries.
As we continue these important discussions with the various stakeholders, we are optimistic that a solution is available in the near future. The Town of Collingwood together with New Tecumseth have been working diligently with Kenaidan and remain committed to the project. Kenaidan has agreed to extend the bid validity for an additional 90 days until April 15th, 2024, with the hopes that we will be in a financial position to continue with the project as tendered.
The project bid extension will result in adjustments to project milestones and any associated costs will be confirmed when the contract is signed. Continuing with this project remains the best solution to increase our water supply for years to come, with the potential to sell capacity to other municipal partners.
New Tecumseth Mayor Richard Norcross and Collingwood Mayor Yvonne Hamlin met with the Ministry of Infrastructure and Development during the recent Rural Ontario Municipal Association (ROMA) conference. The need for the Province’s help to fund this project was reiterated so that both communities can continue to grow and meet the Province’s housing targets.
“With the support of Council, I have been working tirelessly meeting with various Cabinet Ministers to make clear the need for our Provincial partner to step up and assist with the cost of this plant expansion that will ensure the supply of much-needed housing as well as business growth in Collingwood, across South Georgian Bay and beyond,” said Collingwood Mayor, Yvonne Hamlin. “I am further grateful for the continued support of New Tecumseth, our municipal partners, the development community and Kenaidan, as we continue to explore all opportunities to ensure the viability of this project prior to the April 15th deadline.”
“We are committed to ensuring our community has the services and water it needs today and into the future. New Tecumseth and Collingwood have been and will continue to work collaboratively in seeking solutions and continuing the discussions with the Province as we need financial support to complete the necessary plant expansion,” said New Tecumseth Mayor, Richard Norcross.
New Tecumseth and Collingwood are committed to continuing to work collaboratively to ensure the water needs of our respective growing communities is successfully met.
Background
September 12th, 2023, Collingwood Mayor, Yvonne Hamlin and Richard Norcross, Mayor, New Tecumseth issued a Joint Statement which announced that 3 bids were received from the pre-qualified contractors for the Raymond A. Barker Water Treatment Plant Expansion project.
The unofficial low bid was $212M for construction alone. The total project costs are now estimated to be in the range of $270M, and the timeline to complete the project has also been extended by about two years longer than originally projected. The timeline will be further affected by the bid validity extensions.
This project is an essential and urgent project for Collingwood, New Tecumseth, and the surrounding area, as it can supply significant additional drinking water to the existing 60km pipeline southerly from Collingwood, and westerly to the Town of the Blue Mountains. Without this plant expansion, we will have limited ability to collaborate with our municipal partners to build new homes, meet provincial housing targets, and continue to support commercial and industrial expansions.
For more information about the project, please visit https://engage.collingwood.ca/water-treatment-plant-expansion