City has to rejig and reapply for capital works money because of inflation

By Mark Squibb/January 13, 2023

Mount Pearl City council has finally managed to move around some infrastructure funding to reallocate it towards another project, but it took some doing.

Folks may remember that back in November, council voted to cancel and re-apply for two Investment in Canada Infrastructure Program (ICIP) projects due to rising costs. 

Council also voted to cancel a third project outright —water, sanitary and storm sewer, asphalt, curb, and sidewalk replacement along Barbour Drive Area — and re-allocate some of that project funding to yet another project —full replacement of water, sanitary and storm sewer, asphalt, curb, and sidewalk on Jackman Drive.

At the December 13 meeting, councillor Isabelle Fry set in motion another attempt at transferring the just over half a million dollars.

Fry went on to explain that council had requested to have the unallocated funding transferred to the Jackman Drive project, but it didn’t prove to be quite as simple as that.

“In subsequent e-mails and discussions with Kim Kieley, who is the Director of Municipal Infrastructure, the only way the City can transfer the remaining unused funding of $514,253 remaining in the Barbour Drive account and add it to the Jackman Drive project is to cancel the existing Jackman Drive funding agreement and reapply for the Jackman Drive funding with the updated increased funding amount,” explained Fry.

The deadline for doing that was December 9.

Fry then brought forward a number of recommendations including cancelling the original Jackman Drive area project, which had been budgeted for $4.5 million HST included, and then re-applying for the same project at a cost of $5 million, HST included).  

“I think this is just another example of some of the inflationary pressures we’re seeing with anything to do with resourses, manufacturing and labour these days,” said Mayor Dave Aker. “So, this is very appropriate, and of course we want to tag along and get the money from the federal and provincial governments, so that’s why the motion is here tonight.”

Council voted unanimously in favour of the recommendations.

The first of the two projects council cancelled and reapplied for at higher costs back in November were water, sanitary/storm sewer, asphalt, curb, and sidewalk replacement along Farrell Drive (from Holden Street to Evans Place), funded at $5.1 million, HST Included. When it reapplied, the cost was set out as some $6.9 million, HST Included. The other project as for water, sanitary/storm sewer, asphalt, curb, and sidewalk replacement along Spruce, Birch and Roosevelt Avenues, Carroll Drive, and watermain lining Billard Avenue, originally funded at $5 million, HST Included, but reapplied for at $6.7 million, HST Included.

Posted on January 19, 2023 .