Sylvan Lake’s North Municipal Water Reservoir is going to cost more than originally planned.
Council had originally budgeted $10,000,000 for the project, including a 10 per cent contingency.
However, Council was notified by administration that the project is expected to cost over $1 million more than budgeted.
“The recommended proponent’s fees of $9,396,997 along with the approved engineering fees of $880,000 for preliminary design, detailed design and construction management, the value of land the Town is required to purchased of $55,000 and with a 10 per cent contingency of $1,033,199.70 gives a total project budget of $11,365,196.70,” the report to Council states.
Council approved a budget amendment of $1.4 million, which will cover the costs with a contingency, according to the council package.
The increase in budget is more to cover any contingency costs.
“Finance is recommending no additional funds be borrowed for the project and that any funds spent in excess of $10 million be taken from utility/offsite reserves,” the report says.
The borrowing bylaw for the North Municipal Water Reservoir says the funding for the project is to be split between debentures and provincial grants, with the split roughly equaling 70-30 per cent.
As of the May 13 meeting of Council, the Town has spent just over $600,000 on the project.
Town Council awarded the contract for construction of the reservoir and pump house to Alpha Construction LTD. for an “amount not to exceed $9,396,997 excluding G.S.T.”
Mayor Sean McIntyre noted this project is an important on for the town, given some issues in the past with water supply.
He said the building of a new reservoir is meant to address the water supply issues seen in the past.
“I want to point out how important this project is for our community, both in the long term and the short term,” McIntyre said.
“…I am comfortable moving forward with the project despite the changes. Operations are projected in the future, and there are issues that we have already experienced.
“This reservoir will supply our water needs as our population grows,” McIntyre said.