Ontario Construction News staff writer
The Towns of Collingwood and New Tecumseth have reached an agreement for Collingwood to continue to supply New Tecumseth with treated water from Georgian Bay.
The towns have been negotiating since the expiration of the previous agreement in 2020, as both communities plan for growth and increased demand for water.
The final agreement was approved Aug. 18.
“The successful completion of a water supply agreement with Collingwood is instrumental in having both municipalities continue to work together for the betterment of both of our communities to ensure our current and future water supply needs are achieved,” said New Tecumseth Mayor, Rick Milne. “We look forward to continuing to work with the Town of Collingwood.”
New Tecumseth would be required to pay $71 million to cover its share of the upgrades at the water treatment plant and also pay an additional $6.5 million to purchase Collingwood’s 18.5 per cent share of the pipeline.
Collingwood will continue to own the portion of the line to the municipal boundary.
The agreement includes a clause allowing New Tecumseth to back out of the plant expansion if the tender for the project ends up having a project variance of more than 10 per cent.
The Town of Collingwood has been supplying treated water to New Tecumseth since 2000 and will continue to supply the same quantity of water until the newly expanded water treatment plant is completed (expected in 2026). That’s when the volume will increase.
The agreement sets out the costs for each municipality for the expansion of the Raymond A. Barker Water Treatment Plant, as well as the ongoing supply rate and possible future expansions.
Also, a joint operational committee will be formed to focus on operational issues, including a review of the planning process for both the initial and future expansion, a review of the maintenance and capital budget as well as the annual supply rate.
“The agreement to formally extend the existing 20-year supply of water to the Town of New Tecumseth is one that benefits both municipalities and we’re happy to formalize this arrangement. Collingwood is focused on transparency, fiscal responsibility, and sustainable growth, and this agreement aligns with our goals,” said Town of Collingwood Mayor Keith Hull.
