New sewage plant construction nears tender call in Tottenham
Posted March 26,
Construction of the $22.5 million new wastewater treatment plant (WWTP)
in Tottenham will begin in July, with tenders issued to prequalified
general contractors starting April 3rd.
The WWTP will be built on the same site - Industrial Road area, just
north of Mill Street, with substantial completion expected in 2016. And
once fully commissioned, the current facility, which has been on the
Ministry of Environment's watch list since 2000 for phospherous loading
issues, will be demolished.
When in operation, the new plant will have capacity to accommodate a
population over 11,000 by 2031, which is at build out of the Tottenham
Secondary Plan. The bulk of that growth will be generated by three
subdivisions: Six Nights Developments, located north of Mill Street and
east of the CPR railway line, consisting of approximately 45 ha;
Nordstar Developments located south of Mill Street and east of the CPR
railway line, consisting of approximately 30 ha; and LRG Tottenham
Developments, located north of Third Line and West of the CPR railway,
consisting of approximately 38 ha.
It's estimated to cost $8.5 million to cover works planned this year,
with the remaining costs expended over 2015 and 2016.
"Finance staff will arrange a construction loan to temporarily finance
the project during the construction period. Construction loan rates are
currently very low and provide an excellent form of low cost temporary
financing. Available development charge reserves will be used to reduce
the amount of the construction loan," according to the financial
considerations included in the report to council Monday night. "At the
completion of the project, a combination of long-term debt financing
and available wastewater development charge reserve funds will be
arranged and used to permanently finance the project. The long-term
debenture is expected to be issued for a 20 to 30 year period, but will
be more thoroughly reviewed during 2016 when the construction process
is ending. The Town currently has the borrowing capacity to finance the
project. All principal and interest payments relating to the
construction loan or long-term debt are fully funded from development
charges with no taxation impact."