Mill Street Sewage Pump Station Upgrades

Staff Report ADM.26.054 was presented to Council on Monday, July 13. The report provides an assessment of the bundled projects including the Mill Street Sewage Pumping Station Upgrades, Bay-Grey Street Linear Works and Craigleith Main Lift Station Upgrades. It serves to assess the process and construction environment underpinning the management of the projects and in turn, strategize around the Town’s approach to these types of projects in the future.

Council received the report and directed staff to implement KPMG's recommendations, including making necessary revisions to the proposed Capital Project Reporting Framework, for report back to Council in Q3 of 2026. Council also directed staff to facilitate training opportunities and resources to further develop maturity in the Town’s capital project management program.

Presentation of the report begins at the 6:20:00 mark of the meeting recording.

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Staff Report OPS.26.020 was presented to Committee of the Whole on Tuesday, June 9, 2026. This report provides Council with a financial and progress update on the Craigleith Main Sewage Lift Station Upgrades, Bay-Grey Street Linear Reconstruction Works and Mill Street Sewage Pumping Station Upgrades projects. Committee voted to receive the report for information.

Presentation of the report to Committee begins at the 15:55 mark of the meeting recording.

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The Staff Report was pulled for further discussion by Council at their meeting on Monday, June 22. Following the discussion, the following additional motion was put forward and approved by Council.

The Bay Street Reconstruction project represents a critical municipal capital infrastructure project with significant community interest and financial investment; and 

Council prioritizes evidence-based decision-making, fiscal accountability, and proactive public communication regarding the status, timelines, and budgets of major capital projects works; and ensuring a "no surprises" environment for both Council and the community requires enhanced, data-driven metrics and clear reporting on project variance, milestones, and risk assessments; 

Council direct staff to provide the Q2 Project Report for the Bay Street Reconstruction project with enhanced reporting metrics as outlined in the carried motion to B.4.4 Capital Project Reporting and Enhanced Procedural Controls, OPS.26.018, dated March 17, 2026 and any recommendations which may arise from the KPMG report due to Council on July 13 2026, to ensure full transparency on the project's current scope, expenditures, and delivery timelines.

Discussion of the report by Council begins at the 2:27:40 mark of the meeting recording.

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As requested at their meeting on April 2, 2026, Staff Report ADM.26.024 was presented to Council at their meeting on Monday, April 20. The report seeks direction to move forward with an agreement of up to $100,000 (plus HST) to conduct a capital project delivery review. Council directed staff to move forward with an agreement with KPMG (inclusive of technical expertise), and passed the following motion:

THAT Council receive Staff Report ADM.26.024, entitled “Performance Audit Re: Craigleith SLS, Mill Street SPS and Bay-Grey Linear Works Projects;” 

AND THAT Council direct staff to move forward with KPMG plus an additional outreach of vendors who are subject matter experts with practical, operational, planning and contracting experience to conduct a capital project delivery review; and report back to council with options; 

AND THAT Council endorses a scope that will focus on elements of project management including but not limited to: anatomy of the business case, process integrity, internal decision-making including escalation frameworks, financial oversight, risk management; and the adherence to procurement and other appropriate policies; The organizational structure to support system wide improvements to accountability and governance including staff-Council reporting relationship touch points;

AND THAT the final report is to be delivered to Council no later than July 13, 2026

 Presentation of the report begins at the 4:36:15 mark of the meeting recording.

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The results of the Value Engineering Exercise performed on the Mill Street Sewage Pumping Station Upgrades were presented at a Special Meeting of Council on Thursday, April 2. The meeting agenda included a presentation from MEMAR Value Strategies along with Staff Report CFS.26.022. 

Council received the report and passed the following motion directing staff:

"AND THAT Council directs CAO Smith to provide a staff report directly to the April 20, 2026 Council Meeting regarding this request; 

AND THAT Council reach out to the Auditor General or another reputable source as verified by Council to conduct a performance audit regarding the commencement of the Craigleith SLS, Mill Street SPS and Bay-Grey Street Linear Works projects;

AND THAT the scope of this investigation specifically includes but not be limited to, anatomy of the business case, process integrity, internal decision-making frameworks, financial oversight, risk management, and the adherence to procurement, project management policies; and staff-Council reporting relationship and touch points; 

AND THAT the report, by the Auditor General or another reputable source on the findings be presented directly to Council to ensure transparency and institutional performance improvement.

Presentation of the report begins at the 52:55 mark of the meeting recording.

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Staff Report ADM.26.020 was presented at a Special Meeting of Council on Monday, March 2, 2026. This report has been prepared to address the resolution passed by Council regarding Staff Report ADM.26.015 which was presented on February 3, 2026. Council received the report for information purposes.

Presentation of the report begins at the 2:05:20 mark of the meeting recording.

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Staff Report OPS.26.013 was presented to Committee of the Whole on Tuesday, February 24, 2026. This report provides the fulsome financial update requested by Council at the December 15, 2025, Special Committee of the Whole, responds to the Council resolution passed at the February 3, 2026, Committee of the Whole, and serves as a follow-up to Staff Report OPS.26.008 dated February 3, 2026.

Committee received the report and directed staff to report back to Council with updated estimates and financial projections as they move through all capital projects phases, estimate milestones and engineering stages. Committee also crafted and passed a second motion directing staff to provide a report including all documentation associated with the decision for the second forcemain to be routed along Bay Street East as illustrated on page 179 of the 2023 approved budget.

Presentation of the report begins at the 2:16:56 mark of the meeting recording.

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Staff Report OPS.26.008 was presented to Committee of the Whole on Tuesday, February 3. The report provides a fulsome financial update and overview of current project financials as requested by Council. The report also outlines the reporting framework that will be used going forward for quarterly project updates through to project completion. Committee received the report and directed staff to provide financial updates for the duration of the project starting in May 2022. Council also directed staff to: 

• Itemize the original and additional contingency dates of request and approval 
• Provide the detailed financial reporting and project costs starting with the 100% engineering design of the Craigleith Sewage Lift Station and Bay-Grey Street linear works up to the award of the construction tenders 
• Provide the amount remaining in the bundled project total when the construction tenders were awarded 
• Provide detailed information regarding the estimates on the Mill Street Pumping Station Upgrades

Presentation of the report begins at the 0:37:55 mark of the meeting recording.

Staff Report ADM.26.015 was also presented to Committee of the Whole on February 3. The report provides an investigation into the budget increases for the Craigleith Sewage Lift Station, Mill Street Sewage Pumping Station and Bay-Grey Street Reconstruction projects. Committee received the report and directed the CAO to address the following points in the next investigative report: 

1. What escalation processes will the CAO be considering to ensure that all information (financial, engineering, construction and risk management) regarding capital projects is reported on as early as possible to Council? 
2. Further to these processes, how would the CAO incorporate consultation with Council and the public at the real beginning (the thought or identified need) and throughout the projects, as per the example offered about the decision to place the forcemain on Bay Street? 
3. Provide the details of the evidence-based decision making process leading to the choice of Bay Street for the forcemain, including but not limited to how they me the bullet points on slide 14 of the Public Information Centre #1 presentation. 
4. Answer all of the questions put forward by the Community Matters group in their public comment made at the February 3, 2026 meeting of Committee of the Whole. 
5. Explain why the gap occurred between the awareness of the overage in the summer of 2025, and when Senior Management Team became aware in November 2025.

Presentation of the report begins at the 1:57:20 mark of the meeting recording.

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Staff Report CFS.26.009 was presented to Committee of the Whole on Monday, January 12 by the Town's Finance Department. The report requests Council direction to proceed with an agreement with MEMAR Value Strategies Inc. to conduct a Value Management study on the Mill Street Sewage Pumping Station, with funding through the approved project engineering budget. The Value Management study is intended to reduce capital risk, improve lifecycle outcomes and strengthen Council’s confidence in advancing the Mill Street Sewage Pumping Station Upgrades to tender. Committee voted in favour of proceeding with the exercise, and this motion was adopted by Council at their meeting on Monday, January 26.

Presentation of the report begins at the 2:11:35 mark of the meeting recording.

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Staff Report OPS.25.049 was presented to Committee of the Whole on Monday, December 15, along with a special presentation by the Town's Director of Operations. The report requested a construction budget increase of $19 million to support the remaining untendered work within the Craigleith Main Lift Station, Mill Street Sewage Pumping Station and Bay Street East Reconstruction project. Based on early estimates, the original approved budget for the three aspects of the project was $34.79 million. As the design and scope evolved, the Town's engineering consultant provided a revised estimate of $53.56 million. Construction contracts for the expansion of the Craigleith Main Lift Station and the reconstruction of Bay Street and Grey Street have already been awarded. The remaining untendered work primarily includes the expansion and upgrading of the Mill Street Sewage Pumping Station. Moving forward with this work is critical as it will significantly reduce the risk of basement flooding, help prevent sewage bypasses to the Beaver River and Georgian Bay, and strengthen the Town’s ability to manage increasingly intense rainfall events. The Town has been awarded $25.3 million for the project through the province's Housing-Enabling Water Systems Fund, and must complete the work by March 31, 2027 to be eligible to receive the full funding. 

Committee voted to approve the additional funding and passed the following motions:

THAT Council receive Staff Report OPS.25.049, entitled “Request for Construction Budget Increase for Craigleith SLS, Mill St SPS and Bay-Grey Linear Works”; 

AND WHEREAS Staff Report OPS.25.049, entitled “Request for Construction Budget Increase for Craigleith SLS, Mill St SPS and Bay-Grey Linear Works” does not meet Council expectations of rigorous project management and fiscal responsibility, resulting in a failure of demonstration of: 

POL.COR.24.05 Accountability and Transparency of Town Actions to the following Public Policies and Town Values, 

• Accountability” means the Town of The Blue Mountains and its elected Council’s commitment, undertaking and duty to answer to those it serves for its actions, inactions and general state of affairs. 
• Transparency” means the Corporation and its Council’s commitment and undertaking to be open to those it serves in the execution of its offices, duties and activities and its commitment to public participation and input in its decisions and activities 

AND Town Values which where the governing principles that guide an organization on a daily basis, the Town’s values have been developed through collaboration with Council and Staff to work towards the common goal of striving to be the best local government for the residents it serves.

• Integrity: Being honest, consistent and fair in all we do; 

AND Policy, POL.COR.25.02 Page 7 of 22 Employee Code of Conduct

• 2. Integrity a) Always act with integrity and in a manner that will bear the closest public scrutiny 

WHEREAS Council recognizes that the Town will have to move forward with the project or bear the consequences of the loss of an additional $25m in public funding; 

WHEREAS Council approves an increase of $19,000,000 to the project budget, as referenced in staff report OPS.25.049;

AND THAT as a result of the above approval, Council directs staff to provide a “what/ when/where” investigative report, no later than February 3, 2026 (interim report), with a more fulsome staff report to the February 24, 2026 Committee of the Whole meeting, outlining consequences of staff actions as well as recommendations for corrective measures that strongly emphasize accountability and prevention so no event of this nature “ever happens again”; 

AND THAT the above requested report also brings forward the impact of the additional $19m requirement on the revised 2026 capital plan; 

AND THAT Council direct staff to bring forward, in an Excel format, the total amount in each reserve, identifying the amounts which have been allocated by project and the amounts which are available for other uses, including sources of funding, reserve strategy and long term financial projections for all capital projects while outlining how the town will responsibly absorb this overrun with a full understanding that this plan will not impact the future tax levy; 

AND THAT Council directs staff to report on any variance to the Bay Street Reconstruction project budget and all related works at the next available Committee of the Whole meeting until completion. The staff report is to include: an explanation, recommendations and options for savings from other capital projects to fund the overage before additions to the original budget will be considered; 

AND THAT Council directs staff to report out on the Bay Street Reconstruction financials and any related works throughout the project delivery time period with the first report coming no later than February 3, 2026 (interim report), with a more fulsome staff report to the February 24, 2026 Committee of the Whole meeting and quarterly from this date onwards until the completion of the project. Although the projects were combined updates are to be provided at both the whole and individual tendered levels; 

AND THAT Council directs staff to undertake a review of the Capital Project department’s reporting processes and procedures back to the Committee of the Whole meeting on March 17, 2026, at the latest; 

AND that this report also provides recommendations for revised procedural controls that will ensure timely, accountable communications with Council and the public on all financial pressures associated with major capital projects; 

AND THAT Council directs staff to bring the identified eligible development charges for the Bay Street East Reconstruction project, and any related works, as they are received against the $19m annually until the amount is made whole.

THAT, further to Staff Report OPS.25.049, entitled “Request for Construction Budget Increase for Craigleith SLS, Mill St SPS and Bay-Grey Linear Works”, Council directs staff to bring forward an updated Budget Policy that establishes appropriate variance reporting thresholds, including both percentage and minimum dollar-value triggers, to ensure material variances are reported to Council in a timely and meaningful way; 

AND that the Budget Policy be brought no later than the Committee of the Whole meeting of March 16, 2026; 

AND THAT Council directs staff to provide a further staff report to the March 16, 2026 Committee of the Whole Meeting on how certainty in future projects will be managed if they are based on a 30% engineering estimate, and how they are included in a grant application and capital budgets, given the overruns recently experienced in the Bay Street project; 

AND THAT Council direct staff to address tender approval thresholds and delegated authority through the upcoming Purchasing Policy update, including enhanced Finance sign-off and reporting requirements for major procurements; 

AND that the Purchasing Policy be brought no later than the Committee of the Whole meeting of March 16, 2026; 

AND THAT Council direct staff not to combine projects until a policy outlining best practices for project coupling, stacking and or bundling has been approved. 

AND THAT Council direct staff to bring forward the reserve policies to the Committee of the Whole meeting no later than the meeting on March 16, 2026.

This motion was adopted by Council at their meeting on Tuesday, December 16. Presentation of the Staff Report begins at the 2:20:10 point of the meeting recording.

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Staff Report CSOPS.24.078 was presented to Committee of the Whole on Tuesday, October 29, 2024. The report requested Council authorization for the Mayor and Clerk to execute the necessary agreements regarding the Housing-Enabling Water Systems Funding grant for the Craigleith Main Sewage Lift Station, Mill Street Pumping Station and Forcemain. The Town of The Blue Mountains has been successful in receiving $25,397,523.99 from the Ontario Ministry of Infrastructure for this project. Committee voted in favour of the recommendation. In a subsequent motion, Committee requested that the Town Clerk review the release of the Town's application for the HEWSF grant to Council members prior to their meeting on November 12.

Presentation of the report begins at the 1:37:20 mark of the meeting recording.

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The report was pulled for further discussion at the Special Meeting of Council on November 25, 2024. Upon review and following discussion with staff, Council voted to confirm the Committee motion. 

Review of the Committee motion begins at the 40:35 mark of the Council meeting recording.

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Staff Report CSOPS.23.044 was presented to Committee of the Whole on Tuesday, August 15. The report requested Council approval for the following items:

• Addition of engineering for the full reconstruction of Bay Street from Mill Street to Grey Street to a full urban cross section.
• Increase the engineering services budgets for the Craigleith Sewage Lift Station, Mill Street Sewage Pumping Station, Mill Street Forcemain and Thornbury Wastewater Treatment Plant (TWWTP) Outfall.
• Initiate negotiations with WT Infrastructure to complete the engineering for the full reconstruction of Bay Street from Mill Street to Grey Street, and with IBI Arcadis to complete the engineering for the TWWTP Outfall.

Committee of the Whole voted 6-0 in favour of the recommendations. This was adopted by Council at their meeting on August 28.

Committee discussion of the report begins at the 1:11:00 mark of the meeting recording.

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Staff Report CSOPS.23.019 was presented at a Special Meeting of Council on April 14. The report requested Council approval to increase the engineering services budget for the Craigleith Sewage Lift Station, Mill Street Sewage Pumping Station and Mill Street Forcemain projects. Council voted 6-0 in favour of the recommendations.

Council discussion of the report begins at the 51:20 mark of the meeting recording.

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Staff Report CSOPS.22.041 was presented at a Special Committee of the Whole meeting on May 3. The report asked that Town Council approve the cancellation of the "Craigleith Main Sewage Lift Station Upgrades" project that was included in the 2021 Town Budget, and approve the creation of a new project titled "Mill Street Sewage Lift Station and Craigleith Main Sewage Lift Station Upgrades." The purpose of combining these projects was to streamline the engineering process. The report also asked Council to approved a budget of $2,000,000 for engineering and contingency, with $1,000,000 coming from the Wastewater Asset Replacement Reserve Fund and $1,000,000 coming from Wastewater Development Charges. Committee voted 3-3 regarding the recommendations. The report was pulled for further discussion at the May 24 Council meeting where staff provided further background information about the projects. Council voted 5-1 in favour of the recommendations. 

Discussion of the report at the Committee meeting begins at the 4:59:30 mark of the recording.

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Discussion of the report at the Council meeting begins at the 3:24:00 mark of the recording.

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