Comment
There’s time
The digging hasn’t begun, yet the cost to build the first two bits—a new water tower and the pipes connecting it to the Wellington waterworks plants—is already more than double the amount planned just two years ago. It is time to reconsider the assumptions. The options. The possible alternatives. It is time for an open conversation.
All summer long, Wellington residents were admonished for asking questions—for seeking answers. Demanding better governance of this utility.
Now, they must come to terms with a project going sideways before the first major component is up and running. The water tower was supposed to cost $7 million. It will cost more than $10 million when the final bills are tallied. Meanwhile, the pipes to be installed beneath the Millennium Trail were estimated to cost $12 million. The low bid received last month for these trunk lines was $18 million. But wait, there’s more.
Those pipes now require a pumping station on the Millennium Trail. It was not anticipated in the Master Servicing Plan, nor accounted for in development charges or water rates: the current estimate for this new bit is $6.3 million. Oh, and Belleville Street between the beach and the water tower must be ripped up again for another new pipe. The cost is not yet known.
At this very early stage of the largest infrastructure project Prince Edward County has ever undertaken, the cost was estimated at $19 million. Instead, the tally has ballooned to more than $34 million—plus the cost of opening Belleville Street again.
It seems a good moment to pause. To reconsider.
There are good reasons to press on despite the cost overruns. Despite the enormous risks that lie ahead.
The water tower is already built. Without pipes connecting it to the water plant, it is just a tall empty tank. Creating a loop in the water line—to improve quality and reliability— remains a compelling improvement to the overall water system. Then, there is the opportunity to free Kaitlin to build homes and to write a cheque for $10 million in upfront development charges.
On the other hand, the physical challenge of pounding through hard rock the length of the village remains an unknown hazard. Who will pay for the inevitable cost overruns? A looping water system is desirable, but the village has managed for decades without one. Meanwhile, abandoning the tower, or backing this storage into the existing system, seems a poor outcome—but so is chasing good money after bad. Meanwhile, the least persuasive argument is letting Kaitlin loose to build new homes north of the Millennium Trail.
There are other developers in the village who don’t require a new pipe under the Trail to build homes. They represent more than 400 units—singles, townhomes and apartments. These are infill projects—within the traditional bounds of the village. Shouldn’t we consider this option?
The province wants new homes. So does this writer. So do most residents. But we need not hitch our wagon just to one developer.
The risk is that the waterworks utility loses $10 million from the developer north of the Trail. It is not an inconsequential choice. But Shire Hall and Council—until a better governance structure comes about—should use this time to consider the options. To test the assumptions.
We have time. Credit markets are rickety. Interest rates have increased sharply. (This impacts builders, purchasers, and County finances. The 2021 Wellington plan figured the County would pay 3.5 per cent on its waterworks debt. It will now pay closer to 7 per cent.) Home sales are falling. It will take time to adjust.
Let us use this time well.
Comments (0)