The Township of Cavan Monaghan says it’s concerned about potential cost overruns for the Millbrook dam restoration project.
The dam in the heart of the village of Millbrook — about 30 kilometres south of Peterborough — is owned by the Otonabee Region Conservation Authority (ORCA). Repairs are pegged at $3.3 million for the 200-year-old dam which has been deemed structurally unsound. The provincial and federal governments are each contributing $1.1 million.
ORCA is overseen by a board of directors from the eight municipalities found in the watershed. For the repair project, the township is referred to as the “benefiting municipality” so it’s responsible for 90 per cent of the costs — including if the project goes over budget.
The project is already facing an estimated overrun of $300,000, the township said on Monday.
And township Mayor Scott McFadden has a number of complaints about the process so far. He feels the municipality was not kept in the loop about the possible cost overrun.
He also doesn’t like the fact his township is on the hook for the costs, but only has one vote when the project is discussed by the board of directors.
“We’re responsible for 90 per cent of this overrun and it’s a real concern as you answer to your board but I answer to my citizens,” McFadden said to ORCA during Monday’s council meeting. “I have a real problem with the overages and just getting stuck with the 90 per cent.
“There really needs to be some cost containment on this because $300,000 or $250,000 is a significant hit on our tax bill.”
ORCA chief administrative officer John Marinigh says the township must pay their share for the project.
“Their (township) mill rate is premised upon raising $1 million over five years, to pay their portion of it,” said Marinigh. “As the cost of the project goes over that threshold amount, they have to raise an additional amount of money.”
Work on the dam is expected to begin late this month and be completed by this time next year.