The city will pay more than double the amount budgeted to upgrade a wastewater pumping station on King Street in Preston.
The work will accommodate future demands on the sanitary sewer system from new developments coming to King and Fountain streets.
Six bids were submitted for the project last fall, all of which were well over the $550,000 budget set in 2022.
Xterra Construction Inc. of Kitchener was the lowest bidder with a projected budget of $1,150,047.76 exclusive of applicable taxes, an amount that is 112.8 per cent over budget.
The city says the bid is an "accurate reflection of the work" and increased costs for materials and supplies are partly to blame for the increase.
Inflation isn't the main reason for the missed budget target however. After staff reviewed the scope of work completed by the successful consultant, they discovered a complete sanitary bypass is necessary and was not included in the original scope of the project.
Councillors are being asked this week to approve a transfer of $620,300 from the Wastewater Capital Reserve Fund to complete this purchase.
