April 9, 2020 · 0 Comments
By Mike Baker
Orangeville Council has moved to potentially defer two capital projects, totalling approximately $1.4 million, as the financial impacts of COVID-19 start to hit home.
With some councillors expressing concern, at council’s first online virtual meeting held on March 23, over the municipality’s ability to fund all endeavours previously approved in the 2020 budget, Orangeville CAO Ed Brennan identified two areas where the Town could scale back spending this year.
“With COVID-19, and everything going on, there are lots of questions about the area of financing for the Town, and whether we can proceed with all of our (approved) projects. I think it’s important, if we can, to carry on with as many capital projects as possible to move forward and get work done,” Mr. Brennan said. “We have had discussions in past years about our asset deficit and infrastructure gap, and we’ve done a lot of work to close that gap, address our assets and move forward.”
He added, “However, I do understand there is a need, because of the COVID-19 pandemic, over whether we can get all of our projects done, and if there’s a need for the municipality to tap into some extra money would it be better to not proceed with a couple of projects right now.”
Those “couple of projects” identified are the boulevard brick replacement along Broadway, budgeted at $900,000, and a municipal trail restoration, budgeted at $500,000.
Mr. Brennan stated it “made sense” to push the boulevard brick project back, as the Town wanted to gather public feedback before moving ahead with the initiative. He suggested that Council approve funding initial design and engineering for both projects – $90,000 for the Broadway brick replacement, and $50,000 for the trail work, to ensure that work for both projects can begin in the spring or summer of 2021.
Doug Jones, the Town’s General Manager of Infrastructure Services, said there were other benefits to pushing off the brick boulevard project specifically, aside from simply financial.
“We had planned to do construction (for this project) in the fall. We typically carry out construction in the fall for any projects on Broadway, because during the summer we have a number of events downtown. If this emergency ends soon enough, there may be a desire for one or more events to take place in the fall, and we wouldn’t want to be doing anything to get in the way of that,” Mr. Jones said. “Many businesses along Broadway are currently closed, and the last thing we want to do is inconvenience them by moving ahead with construction (when they’re potentially trying to reopen). It makes sense to move forward with construction next year.”
The trail project is centred around Veteran’s Way, says Ray Osmond, the Town’s General Manager of Community Services, and will come to within 500 feet of Broadway, with a connection to Blind Line.
Coun. Joe Andrews asked if there were any other capital projects that could be delayed, or if any would be forcibly delayed due to the provincial government once again redefining what qualifies as being an essential service last week. Mr. Osmond noted the most significant project on the go in his department is the redevelopment of Every Kid’s Park.
“That will continue on. The workers are working within social distancing protocol. They’re fenced in and can do their work without impacting anyone in the immediate environment,” Mr. Osmond said. “In terms of other projects – we’re doing some things in our municipal buildings, and finishing off a lighting (replacement) project. We’re doing each project based on its own merits.
Mr. Jones indicated that, for the most part, municipal construction work is not impacted by the essential service motions brought forth by the provincial government.
“As we are a branch of government, construction work for us is not and will not be suspended. Much of the work done within my group – water, wastewater and roads, all of those projects can continue on,” Mr. Jones said. “There are enhanced health and safety measures in place for contractors. We’re trying to do everything we can to make sure their safety is maintained.”
Mayor Sandy Brown made a motion that Council release the funds, totalling $140,000, to complete design and engineering work for the Broadway brick and trail restoration projects, and hold the release of any further funds for those particular projects for 90 days. He also asked if staff could compile a report highlighting exactly where the money for each capital project approved for 2020 is coming from, whether it be provincial or federal grants, development charges or the tax levy.
Coun. Lisa Post, at least initially, didn’t seem to be in favour of the motion, expressing her belief that capital projects budgeted for this year shouldn’t be pushed off indefinitely.
“The last thing I want to see is for us to defer them and then we see a major tax increase happen in two or three years in order to keep up with infrastructure (projects). Putting them on hold right now is a good idea, but be prepared for what that is going to look like if we defer them,” Coun. Post said.
Mr. Brennan sought to reassure Coun. Post that, even if projects are deferred this year, money has already been set aside to ensure their completion, so, if something is pushed off, the money to cover it would simply carry over too.
“Deferring projects won’t have any impact on the tax base, but it will have an impact on staff’s ability to get the work done. It’s important that we do what we can right now, but do it in a just way,” Mr. Brennan said. “In this case, if we do the design work of certain projects and then understand the impact of the COVID-19 pandemic months down the line, we will be in a better position to make recommendations moving forward.”
He added, “But, for roads, water and wastewater, renovations, IT digitalization, I recommend that we move forward as scheduled. We need those projects to move forward. We need digital solutions in place so that we can operate more effectively and efficiently.”
Mayor Brown’s motion was approved unanimously.