Carbonear heading to the bank for capital works
By Craig Westcott / August 25, 2023
The Town of Carbonear has been offered a cache load of federal and provincial capital works funding, but it will mean borrowing some $485,628 to contribute its share towards the costs of the projects.
Council voted to accept the various funding arrangements at last week’s public council meeting, as well as a motion to seek provincial approval to borrow its share of the funds from Scotiabank at a rate of prime plus 0.25 per cent for three years, but with an actual amortization period of 10 years.
The Town had planned to sign for an initial five-year term on the loan, which it has usually done on big borrowings, but couldn’t this time.
“We received correspondence from the bank today that they’re doing three-year terms due to the volatility of the rates,” explained chief administrative officer Cynthia Davis.
Among the projects approved for funding by the higher levels of government are screenhouse and chlorine building upgrades for the town’s water supply valued at $279,678, with some $50,724 of that being the Town’s share; $480,789 for Beach Road sewer sizing, with $87,199 of that coming from Carbonear taxpayers; Cross Road water and sewer upgrades valued at $889,033, of which Carbonear will pay $162,874; and some $924,153 in multi-year capital works funding to complete the extension of water and sewer lines on LeMarchant Street. Carbonear will contribute some $162,874 towards that work.
In other public works news:
Council agreed to submit to the provincial government its spending plan for Gas Tax money in the amount of $447,639 on phase III storm sewer and street upgrades at Powell Drive.
Council approved a change order to extend the length of time for doing the phase II upgrades to Water Street by four days. There was no additional cost associated with the extension.
A change order for the phase I water, sewer and street upgrades on Adelaide Street, meanwhile, will cost an additional $26,746. The change order was necessary to cover work that was not identified during the original design of the project’s specifications.
Worse news for Adelaide Street residents, though, is that the tender call for phase II had to be cancelled last week because it was over budget by approximately $500,000, Noel reported.
“Whereby there are no additional funds to complete this project, be it resolved to cancel the tender call and reevaluate the project scope for rendering,” Noel added.
Council also approved last week a list of streets, or parts of streets that will get asphalt repairs under the 2023 asphalt budget. They include Whites Road, Earles Lane, Chapel Hill, Warehams Road, Mutreyville, Kimberley Place, Southside Lower Road, the street off Bunker Hill to civic numbers 14 and 16, Woodley Drive, and a paved walkway to an accessible parking area at the Recreation Complex.