The City of Windsor could be paying more for a series of drainage upgrade projects than earlier anticipated.
A report was submitted to Windsor City Council at its meeting Monday afternoon, which provided an update on the Disaster Mitigation and Adaptation Fund (DMAF), a fund that supported projects designed to transform stormwater and wastewater drainage in the east end after being hit by several devastating floods in the last few years.
But, cost overruns, supply disruptions caused by the COVID-19 pandemic, and inflation have pushed the total cost estimate skyward, from the previously-determined $89.8-million to an estimated $176.3-million. The difference is $86.5-million.
"The City has begun to see the long-term impacts of COVID-19 and how severely it has affected the global economy," read the report submitted to councillors. "From disruptions to supply chains in the manufacturing sector and the labour market tightening to the rise in inflation, the impacts are being felt across the country in all sectors, particularly the construction industry. These changes are directly affecting the timing and cost of doing construction."
The original $89.8-million price tag was figured in 2018, with 40 per cent covered by DMAF grant funding. The catch was that the 40 per cent covered will affect the original 2018 figures, not accounting for the subsequent overruns and inflation increases.
At Monday's council meeting, Ward 6 Councillor Jo-Anne Gignac, whose ward includes many areas that were hard hit by flooding in the past few years, expressed her disappointment with the new estimates.
"This came as quite a shock," said Gignac. "A number of the DMAF-1 projects are in my ward, and it would provide relief for the adjacent Ward 7...We're indicating that because costs have escalated so much, and so far we haven't heard anything in terms of that 60-40 agreement with the feds. It's on hold."
Gignac told the administration that she had been fielding some calls and messages from concerned Ward 6 residents.
Chris Nepszy, City Engineer and Director of Infrastructure Services, said his main concern is getting back into talks with Ottawa, though he did acknowledge that any delays could have a domino effect on projects set to start this year and beyond.
"There's the potential for a ripple effect on some of these projects," said Nepszy. "Noting that the projects are on hold, and depending on the direction of council and what we heard back from the feds, that may change."
Projects completed so far include work on Matthew Brady Boulevard, Tranby Avenue, Eastlawn Boulevard, and Belle Isle View, stormwater management at Tranby Park, and a climate change study.
Infrastructure Canada has extended the City's project completion deadline from 2028 to 2032.
