Ontario Construction News staff writer
The mayors of Collingwood and New Tecumseth have signed an agreement that will ensure a continued supply of treated drinking water keeps flowing.
Both municipalities have been negotiating for about two years, and the two municipal councils approved the new agreement Aug. 18. The deal will continue an arrangement in place for Collingwood to supply water to New Tecumseth for the past 22 years.
The new 10-year deal includes a cost-sharing arrangement for the upcoming $120-million water treatment plant expansion – almost double the original estimate cost of $65 million, with New Tecumseth paying $71 million – over 60 per cent.
The preliminary design of the new plant was presented to Collingwood council last year by AECOM and Ainley and Associates Limited.
Collingwood’s water treatment plant is nearing capacity and the while they await the expansion, council put a temporary ban on new development because the remaining capacity would not accommodate new growth.
The town expects to issue tenders for construction in spring 2023, to be complete by 2025/26.
New Tecumseth has agreed to buy Collingwood’s 18.5 per cent interest in the pipeline outside town boundaries for $6.5 million.
In return, Collingwood will continue supplying 6,000 cubic metres of water per day until the new water treatment plant comes online and capacity is expanded.