District municipalities were told Saturday that provincial regulations covering electrical and mechanical work were behind the cost overruns at the Rainy River District Social Services Administration Board’s new building in Fort Frances.
“Without the electrical and mechanical costs, we would only be $22,000 over budget,” DSSAB vice-chair Val Pizey told delegates attending the Rainy River District Municipal Association’s 16th-annual general meeting in Emo.
She added the board continually is looking at ways to cut costs.
But that wasn’t good enough for some of the delegates.
“I have no faith in you right now,” fumed La Vallee Coun. Jim Belluz. “You’re saying this now, but maybe next year it will be $5 million. . . . We’re on the same avenue as Rainycrest.
“And I don’t believe this is beneficial to ratepayers in the district,” he added.
Pizey, who also is mayor of Lake of the Woods Township, said DSSAB intends to pay for the cost overruns through working reserve funds and a term bank loan.
But she could not provide a figure Saturday on how much the bank loan would be.
“We’re mandated to have reserves and we put in approximately 50 percent to be used for things like this,” Pizey remarked, adding the board also intends to rebuild the reserves fund up in subsequent years.
While some municipal leaders did not see how much could be done at this point in the renovation process, others seemed to think this is not the best way to handle the cost overruns.
“I’m just saying, the reserve funds are there and all of a sudden—oops . . .,” said Emo Coun. Gerd O’Sullivan, who questioned the stability of the reserve funds.
Pizey countered that the new building, in the long run, should save operating costs because of good insulation and a better ventilation system.
“That’s what I’m told by the experts,” she added, noting it also will be great to have all the staff and programs under one roof and that the building (located at 450 Scott St.) will be good for the next 25 years.
Meanwhile, Dan McCormick, health service manager for DSSAB, provided information on the land ambulance bases to the delegates at Saturday’s meeting.
He noted the tender for the Fort Frances base was awarded to Terra-Deco for $546,000 plus tax. And while it was over-budget, it was the lowest bid DSSAB received after a second round of tenders.
The board intends to use reserve funds—a separate reserve specifically for land ambulance—to pay for the project.
McCormick added the Emo ambulance base is expected to be tendered out in the new future.
After going 30 minutes over the allotted time for the presentation, questions to the DSSAB were cut off.
Also at Saturday’s meeting, the RRDMA also heard updates from the Rainy River Future Development Corp., the Atikokan Economic Development Corp., Thunder Bay-Rainy River MP Ken Boshcoff, the Ontario Forestry Coalition, the Rainy River Valley Safety Coalition, the Riverside Foundation for Health Care “Just Imagine” Campaign, and the OPP.
As well, La Vallee Reeve Emily Watson was elected president of the RRDMA on Saturday while Fort Frances Coun. Sharon Tibbs was elected vice-president.
Gerd O’Sullivan was chosen as the Northwestern Health Unit rep (Alberton west to Rainy River), Freeda Carmody as the Rainy River Valley Safety Coalition rep, Linda Armstrong as the Rainy River Valley Agricultural Society rep, and James Gibson as the Rainy River District Veterinary Services Committee rep.
Morley Reeve Gary Gamsby will remain vice-president of NOMA while Fort Frances Coun. Tannis Drysdale and Atikokan Coun. Charlie Viddal are staying on as the RRDMA’s reps on the NOMA board.
Fort Frances Times
Local News from Across the Rainy River District
