Port Hope council was asked at Tuesday night’s committee-of-the-whole meeting to approve a budget increase of $275,000 for the Rural Roads Office Addition to be pre-approved as part of the 2026 capital budget and also approve the contract to Dalren Limited in the amount of $559,680.
The report states the Rural Roads Office Addition budget has consisted of approvals in multiple years for project funds starting in 2022 and total $300,000.
The 1,280 square-foot addition includes two offices, staff space with kitchen amenities, a changeroom/locker room, and a washroom for rural roads staff. The project also includes a backup generator costing $30,000 that will support the new addition and selected circuits within the existing garage.
There is a budget shortfall of $275,000 which includes the tendered price, contract administration, and small contingency, the report states, adding that staff have reviewed all funding options and determined that 2026 pre-budget approval is the most viable solution.
The tendered price is guaranteed only until Oct. 9.
Mayor Olena Hankivsky asked what other options had been considered. Director of Works and Engineering Jeanette Davidson said they looked at different types of construction and the size of the addition and this was the smallest that would meet the needs of the roads staff.
Hankivsky asked if portables were considered and Davidson said they were, but they were more expensive.
Councillor Todd Attridge asked about the risk of not approving the motion.
“It’s the working conditions of our rural roads staff,” Davidson said. “They don’t have any meeting space, there is insufficient office space and they really don’t have a sufficient washroom out there.”
Hankivsky said she is empathetic and appreciates the roads staff, but it’s also a significant cost overrun to be contemplating outside of budget discussions.
“This is a lot of money for, as you say, a washroom and additional office space and I’m being very prudent about all of my decisions around spending, especially given what we know is going to be a very, very difficult budget season for our municipality and indeed the County,” Hankivsky said.
Davidson said if the contract isn’t awarded by the October deadline, the tender would need to be re-issued.
The mayor said she wouldn’t support the motion as she believes it should be a part of the overall budget discussions.
Councillor Claire Holloway Wadhwani noted Davidson started talking to council about the project three years ago putting it on the radar for future budgets and asked if costs will continue to rise if there is a delay.
“We were very surprised ourselves when the tender closed,” Davidson said. “We were not expecting such a high bid as the low bid and this was one of four bids. The high bid was over $800,000 for a very, very small addition. We did speak with the low bidder and it is not anticipated to come down at all.
Construction costs are going to continue to rise.”
Councillor Adam Pearson asked if costs would be much different if a new tender was sent out in a couple of months if not pre-approved for the 2026 budget now.
“The challenge is we could also be accused of bidshopping and be sued,” Davidson said. “We would have to substantially change the contract in order to reissue it.”
In the end, Mink, Pearson and Holloway Wadhwani supported the motion for the budget pre-approval.
Councillors Les Andrews and Darrell Toms were absent for the meeting.
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