City approves financing and project management agreements for new public health facilities

Last evening Council approved the new Financing Agreement and Internal Project Management Agreement for the future public health facilities in Guelph and Orangeville, recently negotiated by the City, the County of Wellington, Dufferin County and Wellington-Dufferin-Guelph Public Health. Guelph was the first to approve the agreements, which are subject to the final approval by the remaining three parties, scheduled later this year.

To ensure accountability to local taxpayers, a third-party project manager will be hired to oversee the construction of the two facilities. WDGPH and the municipalities will receive regular progress reports from the project manager. This new role provides added control against potential cost overruns. The cost of this position is included in the overall cost of the project.

The total amount of capital funding to be provided by the three municipalities for the project is $28 million, with up to $24.4 million of that amount being financed by the three municipalities under the Financing Agreement. The amount each municipality is responsible for financing is proportional to their population—the City Guelph will provide 45.9 per cent or $11.2 million. The money will be advanced as needed throughout construction.

Under the Financing Agreement terms, repayment by WDGPH of the financing provided by the three municipalities to WDGPH will begin after both facilities are substantially complete. The two public health facilities will be owned by WDGPH.

The WDGPH has awarded contracts to The Ventin Group Ltd. for the architectural and project consulting services, and Buttcon Limited for construction management services, of both the facilities. The designated internal project manager will oversee the work completed by Ventin and Buttcon.

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