HomeMy WebLinkAboutOctober 09, 2025 - Special CouncilTHE CORPORATION OF THE MUNICIPALITY OF BAYHAM
SPECIAL COUNCIL MEETING AGENDA
MUNICIPAL OFFICE
56169 Heritage Line, Straffordville, ON
Council Chambers – HYBRID
Thursday, October 9, 2025
6:00 p.m.
The October 9, 2025 Special Council Meeting will allow for a hybrid meeting function.
You may attend in person or virtually through the live-stream
on the Municipality of Bayham’s YouTube Channel
1. CALL TO ORDER
2. DISCLOSURES OF PECUNIARY INTEREST & THE GENERAL NATURE THEREOF
3. DELEGATIONS
A. Barry Wade re SCC Expansion
B. Cindy Stewart re SCC Expansion
4. OPEN FORUM
5. REPORTS TO COUNCIL
A. Report CAO-41/25 by Thomas Thayer, CAO re Tender Award – Bayham (Straffordville)
Community Centre Expansion – ICIP Community, Culture and Recreation Stream
6. BY-LAW TO CONFIRM THE PROCEEDINGS OF COUNCIL
A. By-law No. 2025-060 Being a by-law to confirm all actions of Council
7. ADJOURNMENT
REPORT
CAO
TO: Mayor & Members of Council
FROM: Thomas Thayer, Chief Administrative Officer
DATE: October 9, 2025
REPORT: CAO-41/25 SUBJECT: TENDER AWARD – BAYHAM (STRAFFORDVILLE) COMMUNITY CENTRE
EXPANSION – ICIP COMMUNITY, CULTURE AND RECREATION STREAM
BACKGROUND
In 2021, the Municipality received formal approval of a grant application for a Straffordville
Community Hub. This grant application was through the Investing in Canadian Infrastructure
Program – Community, Culture and Recreation stream, applied for in 2019, and would be a
renovation/expansion of the Straffordville Community Centre (SCC). Substantial completion of
this project is identified in the Transfer Payment Agreement (TPA) as March 31, 2027.
Approved funding for the Straffordville Community Hub project is as noted below and is all-
inclusive, including architectural costs associated with expansion design, tendering, and
construction administration:
Straffordville Community Hub
Federal Contribution $801,320
Provincial Contribution $667,098
Municipal Contribution $534,881
Total $2,003,299
In accordance with the approval, staff issued RFP-21-02, which was an RFP for architectural
services for the expansion of the SCC. The award was made to a+LINK Architecture Inc.
(a+LINK), who have been working with staff on various stages of the project since Q3 2021.
Council also approved funding for the Municipality’s portion of the expansion. At its February 17,
2022 meeting, Council received Report TR-07/22 re 2021 Surplus Allocation and assented to
transfer $170,910.03 from the 2021 surplus into the Facilities Reserve to ensure that the
Facilities Reserve could address the entire $534,881 allocation required of the ICIP grant
Transfer Payment Agreement (TPA).
In 2022 and after public consultation on the matter, Council received and approved the
schematic drawings for the SCC expansion. On March 16, 2023 and April 6, 2023, Council
received a pair of related Reports on the Costing and Timeline for the Straffordville Community
Centre Expansion. The Reports identified cost over-runs that would have to be covered in whole
by Bayham. After much discussion on the Report, Council passed the following motion:
Moved by: Councillor Chilcott
Seconded by: Councillor Froese
THAT Report CAO-20/23 re Follow-up Report – Detailed Costing and Timeline Update –
Straffordville Community Centre Expansion be received for information;
AND THAT, due to estimated cost over-runs, Council approve the re-scoping of the
Straffordville Community Hub project to remove the Covered Pavilion, LED Ball Diamond
Lighting, and new concrete pad;
AND THAT an application be made to the ICIP Community, Culture and Recreation
program for consideration of the identified reduction in scope.
In accordance, staff made an application to the ICIP Community, Culture and Recreation (ICIP
CCR) program for a scope reduction as directed by Council. The ICIP CCR program received
the scope reduction in mid-April 2023 and reached out in late-June 2023 for clarification on a
few items. Staff were advised of a 3-6 month approval period for the request.
The response from ICIP came on September 25, 2024 advising of the approved scope
reduction and requesting signatures on the amending TPA. The original TPA was executed by
the CAO and Treasurer as Municipal signing authorities in 2021. At its October 3, 2024,
meeting, Council considered Report CAO-40/24 re Amending Transfer Payment Agreement –
Investing in Canada Infrastructure Program (ICIP) Community, Culture and Recreation Stream –
Straffordville Community Centre Expansion. Council passed the following motion:
Moved by: Councillor Chilcott
Seconded by: Deputy Mayor Weisler
THAT Report CAO-40/24 re Amending Transfer Payment Agreement – Investing in
Canada Infrastructure Program (ICIP) Community, Culture and Recreation Stream –
Straffordville Community Centre Expansion be received for information;
AND THAT Council authorizes the CAO and Mayor to execute an amending Transfer
Payment Agreement between His Majesty the King, in Right of Ontario, as represented
by the Minister of Infrastructure and the Municipality of Bayham for the Investing in
Canada Infrastructure Program (ICIP): Community, Culture and Recreation Stream.
Council is also aware of another grant received in support of this project. The Straffordville Hall
Foundation (SHF) received and provided to Bayham $25,000 from the Farm Credit Canada
(FCC) AgriSpirit program. The funds are to support acquisition of kitchen equipment for the
expansion and are currently in the SCC Capital Donations Reserve.
Since the amended TPA was approved, staff have been engaged with a+LINK on the project,
including detailed design work for the addition and design work related to water distribution on-
site due to the use of well water. A new well was installed in Q2 2025 in anticipation of the
replacement of the existing well, with additional flows to service the expansion. At its April 3,
2025 meeting, Council also received Report CAO-21/25 re Amendments to Procurement Policy
– By-law No. 2015-030, which confirmed the ability of the Municipality to choose not to award a
Tender. Council confirmed this action by adopting By-law No. 2025-026 later at the same
meeting.
a+LINK issued the Request for Tenders (Tender) in August 2025. A mandatory pre-tender site
meeting was held with prospective bidders on August 29, 2025, and four (4) addenda were
issued in support of the Tender.
The Tender closed on September 16, 2025 at 2pm, and was followed by a public opening on
Bayham’s Youtube channel at 3pm on the same day. The CAO attended the public opening on
Bayham’s behalf.
DISCUSSION
The Municipality received thirteen submissions to the Tender. Twelve were received before the
2pm deadline, 10 of which are summarized in the below table as Total Bid, Contingency
(recommended at 10 percent of the Total Bid value percent), and Total Construction Cost. Two
bids were disqualified due to incomplete submissions.
Total Bid (does
not include
applicable HST @
1.76%)
Recommended 10%
Contingency
Total Construction
Cost (excludes
HST)
Etka Construction Inc. $2,881,000 $288,100 $3,169,100
PK Construction Inc. $2,978,800 $297,880 $3,276,680
Graceview Enterprises $3,024,000 $302,400 $3,326,400
Elgin Contracting and
Restoration Ltd.
$3,094,000 $309,400 $3,403,400
Tradition Construction
Inc.
$3,176,200 $317,620 $3,493,820
Lanca Contracting Ltd. $3,311,000 $331,100 $3,642,100
Reid & Deleye
Contractors Ltd.
$3,312,505.91 $331,251 $3,643,756.91
Niacon $3,340,508.73 $334,051 $3,674,559.73
Anka Construction $3,442,662 $344,266 $3,786,928
Anacond Contracting
Inc
$3,916,447 $391,645 $4,308,092
The Total Bid amount is comprised of the Base Bid amount and cash allowances of $151,000,
but does not include applicable HST at 1.76 percent. The Base Bid includes a number of
Separate Price items for review and consideration by Council. Some of these items were
included to provide construction-related flexibility to the bidders. The Old Chapel parking lot was
separated as it is not formally within the scope of the approved grant, but may make sense to
complete at the same time. The accessible walking path was separated to illustrate the cost
estimate associated with the item as reserves may be required to cover the item. This is an item
included in the grant approval and will be required by Council to be approved as a part of the
tender award. Funding of this item is discussed later. Cash allowances for various items,
totaling $151,000, were identified as over and above the Base Bid, which are to be included in
the Total Construction Cost. Two Alternate Prices were to be included as well. These were
specified metal siding instead of the base Hardie cement board siding, and hydroseed instead
of sod for grounds restoration. These are outside of the Base Bid and, if accepted, will change
the applicable tender amounts relative to their pricing.
All tender submissions were required to adhere the substantial completion date staff identified in
Addendum No. 3, which is August 21, 2026. There are reasons for this. First, staff will require
the full use of the Main Hall for election purposes in October 2026. August provides some buffer
against project delays while ensuring probable Main Hall availability for Advance and Main Polls
in mid to late October. Second, ICIP CCR’s Substantial Completion Date is March 31, 2027, and
there are items that the Municipality will have to complete on its own (specifically IT,
communications, and security works) with its own vendors to finalize aspects of the expansion
project. The August 2026 date gives staff the ability to complete this work in the latter six
months of the project’s timeline.
Consideration of Alternate and Separate Prices / Tender Award
The table, attached, provides a more detailed breakdown of the lowest four bids. The attached
table gives a breakdown of the project credits and debits associated with recommendations for
inclusion or exclusion of specific Alternate and Separate Price items.
Based on a review of the top 4 bids and in discussion with a+LINK, staff recommend that if
Council wishes to proceed with a tender award, it may do so through accepting/rejecting the
following Alternate and Separate Price items based on the rationale discussed between a+LINK
and staff:
Accept Alternate Prices for siding and seeding
o Consistent siding to align with the current SCC footprint at a generally similar to
lower price point
o Nominal cost savings for seed over sod. Time of the year for anticipated
substantial completion of construction works is preferable for seed.
Accept Separate Price items for:
o Accessible walkway around Straffordville Community Park
o Old Chapel parking lot and walkway
o Wider doorways
o Millwork and kitchen equipment
o Plumbing chases in Main Hall
Accept temporary heating only / Reject temporary HVAC
o Closes the Main Hall for construction
o Cost savings for this scenario are greatest as savings more than offset projected
revenue loss associated with rental moratorium
The tender bids received are well over the approved $2,003,300 for all-in project costs, so it is
reasonable to either 1) save money where reasonable to do so, and/or, 2) accept Separate
Prices where required under the grant program or where costs to do a similar project as a
stand-alone would be more expensive. Based on these considerations, staff recommend
accepting the Alternate Prices for siding and seeding, which are generally slightly lower than the
Hardie Board and sod solutions in the Base Bids. Acceptance of the Alternate Prices means
that the expansion’s siding will be consistent with the existing SCC’s siding, which is preferable.
It also means that hydroseed will be used over sod. Hydroseed application in August/September
provides the best opportunity for germination and aligns with the general end of the season for
ball diamond usage. Sod would be preferable to be applied in the spring to ensure aesthetics for
the peak of the park and baseball usage, but as the project will be nearing completion in Q3
2026, this is not the case and hydroseed is a reasonable alternative at a slightly lower price.
Staff also recommend acceptance of Separate Price Items for the accessible walkway, the Old
Chapel parking lot, wider doorways for increased accessibility, kitchen equipment and millwork,
and plumbing chases in the Main Hall. The accessible walkway and kitchen equipment/millwork
are requirements under the grant program and must be included. The other Separate Price
options are reasonable additions given their price points and can be funded under the project by
the Municipality rather than through the ICIP CCR program.
Finally, staff recommend accepting the temporary heating solution for the Main Hall, and
rejecting the temporary HVAC solution. In this scenario, the Main Hall will be closed to rentals
for the duration of the site preparation and construction period, but the cost savings more than
offset expected revenue loss and would therefore be a net benefit to the Municipality’s
financials.
If Council is amenable to the above for the tender award, the revised Total Bid, Contingency,
and Total Construction Cost are re-ranked as follows, and broken down, as noted, in the
attached table:
Total Bid (does
not include
HST @ 1.76%)
HST
(1.76%)
Recommended
10% Contingency
Total
Construction
Cost (inc. HST)
PK Construction
Inc.
$2,928,070 $51,534.03 $292,807 $3,272,411.03
Graceview
Enterprises
$2,991,350 $52,647.76 $299,135 $3,343,132.76
Etka
Construction Inc.
$3,025,750 $53,253.20 $302,575 $3,381.578.20
Elgin Contracting
and Restoration
Ltd.
$3,076,000 $54,137.60 $307,600 $3,437,767.60
If Council wishes to award the tender, staff recommend an award to PK Construction Inc. in the
total tender amount of $2,928,070 plus applicable HST. It is further recommended that any
funding strategy for the project include the recommended 10 percent contingency if the Total
Bid value ($292,807) noted above.
Total Project Cost
The above recommendations are for construction-related costs and do not include costs
associated with architectural services, the new SCC well, and the levy-supported work on the
Straffordville Community Park outbuildings. To date, the Municipality has incurred the following
costs and/or approved the following costs associated with the project:
Architectural - $120,000, with an estimated $75,000 outstanding (Facilities Reserve)
New SCC Well - $18,477 (operationalized, levy)
SCP Outbuildings - $27,535 (RFQ 25-01, awarded August 21, 2025, levy)
Staff will also be required to finalize certain items associated with this project through its own
contractors. Specifically, these are final items related to information technology, security, and
communications to ensure continuity between the technology and service between the
expansion and existing building envelope. Staff estimate this cost at $100,000, which is yet to
be approved.
If accepting of the above and including the total construction costs, the estimated total project
costs are $3,614,000, inclusive of contingency, instead of the original $2,003,300 estimate in
the 2019 grant application and the associated TPAs. There is an estimated overage of
$1,610,700, which will need to be funded either through the tax levy, reserves/funds, or debt, or
a combination of these options.
Funding Options
Given the above, staff present a pair of funding options for Council’s consideration. Neither of
these options proposes to use any 2026 tax levy support outside of the operating budget
requirement to identify debt service costs.
Option No. 1 – Primarily Debt Financing
This Option primarily considers debt, but also identifies the possibility or requirement to use
reserves or reserve funds in specific cases. Greater debt utilization ensures that greater
reserve/ fund monies remain available in key reserves/funds for unforeseen municipal capital
expenditures. Given current interest rates and recent approval of the Asset Management Plan
Financial Strategy, referenced later, debt utilization is an attractive option at this time.
Reserves/Reserve Funds
For this Option, the following Reserves/Reserve Funds are possible to use, or should be used:
Item Amount Reserve/Reserve Fund
Kitchen Equipment and Millwork $50,337.29 SCC Capital Donations
Reserve / SCC Reserve
Fund
Fire Cistern $129,000 Facilities Reserve
General Construction $43,119 Facilities Reserve – already
allocated in Capital Item No.
FA-04
Total $222,456.29
The SCC Capital Donations Reserve and the SCC Reserve Fund have a combined 2024 year-
end balance of $50,337.29. This includes the $25,000 FCC AgriSpirit grant contribution. Staff
recommend using both accounts in full to fund the majority of the Kitchen Equipment and
Millwork Separate Price item. By way of Report TR-07/25, Council approved the allocation of
$129,000 to the Facilities Reserve for the Fire Cistern. Based on Council’s direction, staff
recommend using these funds as a part of Option No. 1. The additional $43,119 from the
Facilities Reserve is already allocated in Capital Item No. FA-04.
The identified additional reserve/ funds utilization of $222,456.29 decreases the estimated debt
requirement to $1,389,000.
Debt
In accordance with direction provided from Report TR-09/25 re Ojibwa Refinancing Plan – By-
law No. 2015-027 / Guarantorship Reserve, the Municipality has retired the debt associated with
the HMCS Ojibwa as of March 2025. Staff confirm the Municipality has access to its entire debt
capacity and Annual Repayment Limit (ARL), which is effectively $26 million at today’s interest
rates.
Infrastructure Ontario (IO) debt is available for this project as it is infrastructure-related. Current1
5-year and 10-year lending rates are below:
Term Rate (%)
5-year 3.14
10-year 4.09
Both rates are significantly better than prevailing interest rates through our financial institution,
which are currently around 5.5 percent. The 5-year is 95-basis-points better than the 10-year
rate and, given the size of the loan, is preferable to provide immediate lending relief.
Based on the estimated $1,389,000 to be debt financed, the annual debt service is expected to
be approximately $169,439.65. The Municipality would likely have to incur the debt in Q2 2026
to align with anticipated construction and therefore payment milestones, which means that
approximately 6-9 month of debt service would have to be accounted for in the 2026 Draft
Operating Budget. This is $84,719.83 to $127,079.74 and approximately equivalent to 1.25-1.88
percent on the draft 2026 tax levy.
As a consideration in this Option, Council may also choose to authorize more debt and utilize
reserves/funds less. Funds previously allocated to reserves or reserve funds for certain aspects
of the project, specifically the Facilities Reserve allocation for the Fire Cistern, can be
repurposed for other facilities needs in future years, and re-allocated to another reserve for
priority use as deemed appropriate.
Option No. 2 – Increased Reserve/Reserve Fund Use / Less Debt
While still primarily funded by debt, this Option identifies the possibility of greater reserve/fund
use to decrease the need for debt and therefore the tax levy impact in 2026 and future years
associated with debt repayment.
Reserve/Reserve Funds
The following reserves/funds can be leveraged for this Option:
Item Amount Reserve/Reserve Fund
Accessible walkway around
Starffordville Community Park
$65,000 Parkland Reserve Fund
1 Rates are current as of September 25, 2025 and may be subject to change.
Old Chapel parking lot and walkway $60,000 Road Construction Reserve
Kitchen Equipment and Millwork $50,337.29 SCC Capital Donations
Reserve / SCC Reserve
Fund
Fire Cistern $129,000 Facilities Reserve
General Construction $43,119 Facilities Reserve – already
allocated in Capital Item No.
FA-04
Total $347,456.29
Use of the SCC Capital Donations Reserve, SCC Reserve Fund, and Facilities Reserve are
consistent with Option No. 1. The additional reserve/fund options are consistent with the
approved reserve/fund use identified for this project in the 2025-2034 Capital Budget – $65,000
from the Parkland Reserve Fund, and $60,000 from the Road Construction Reserve – as noted
in Capital Item No. FA-04. Both of these reserves have adequate funds for the identified
expenses without hindering any further planned municipal capital projects. At its August 21,
2025 meeting, Council received Report TR-17/25 re 2025 Mid-Year Parkland Dedication and
Cash-in-Lieu of Parkland Funds Report. The Report identified the mid-year balance for the
Parkland Reserve at $208,193, identified $65,000 in allocated funding from the Reserve in 2025
for this project, and further noted that $143,193 was uncommitted. There are no further funds at
this time requested from the Parkland Reserve for this project unless Council directs otherwise.
Total reserve/fund allocations under this Option are $347,456.29.
Debt
Under this scenario, debt will also be required. $1,264,000 is estimated to be required to
address the project over-run. Based on current IO rates presented in Option No. 1, and the
estimated $1,264,000 to be debt financed, the annual debt service is expected to be
approximately $154,091.31. The Municipality would likely have to incur the debt in Q2 2026 to
align with anticipated construction and therefore payment milestones, which means that
approximately 6-9 month of debt service would have to be accounted for in the 2026 Draft
Operating Budget. This is $77,045.69 to $115,568.53, and approximately equivalent to 1.15 -
1.73 percent on the draft 2026 tax levy.
Others Considerations
Cashflowing to Reduce 2026 Debt Service
The Municipality holds an amount of cash-on-hand to fund regular day-to-day operational
activities. Cash-on-hand is not allocated to specific reserves/funds; it is commonly for immediate
and regular operational needs. The current estimated cash-on-hand is approximately
$1,400,000. With this amount of money, there is the ability to use some cash-on-hand to front-
run construction milestones and associated payments associated with this project and therefore
delay when Council considers a debt borrowing by-law to authorize debt for the project. The
debt service figures assume a by-law authorized in Q1 or Q2, giving a 6-to-9-month window
where Bayham will be required to carry debt and service debt in 2026. There may be the option
to extend the reliance on cash-on-hand for an additional few months before formally obtaining
debt. For example, a 3-month delay in calling debt is approximately $40,000 saved in 2026 levy-
supported debt service, and therefore an estimated 0.5-0.6 percent savings on the levy. The
degree to which staff can stretch cash-on-hand is not something that can be reasonably
estimated at this time as it depends on municipal revenues and the timing of budgeted and
unforeseen expenses.
Substantial Completion Date
While this Report focuses on the merits of Alternate and Separate Price and primarily makes
recommendations in regard to those items and municipal preference, Council should be aware
of competitive bids that did not provide a mobilization and construction timeline that aligned with
the expected substantial completion date noted in Addendum No. 3. In regards to the top four
bids received, Etka Construction and Elgin Contracting and Restoration Ltd. provided timelines
that went beyond August 21, 2026 and will place added strain on the Municipality to meet its
overall Substantial Completion Date requirements through the ICIP CCR stream, which is March
31, 2027. Council may choose to uphold the expected substantial completion date and therefore
consider bids that do not meet the expected substantial completion date as non-compliant. This,
however, is a likely non-consideration as the recommendations from staff focus on Alternate
and Separate Pricing preferences rather than strict compliance to the expected substantial
completion date. It is nonetheless noted for information purposes.
2025 Surplus Allocation
At this time, the Municipality anticipates another budget surplus. However, staff cannot
reasonably estimate the amount with one quarter left in the fiscal year and the ever-present
chance of unforeseen expenditures related to operations and capital programs. Council will
receive the 2025 surplus report in February 2026, which will identify the surplus, if any, and
seek direction for its allocation. Council may, at that time, allocate the surplus to the Facilities
Reserve to be used for this project and to decrease the debt requirements under either Option
presented.
Alignment with Asset Management Plan Financial Strategy
At its September 4, 2025 meeting, Council received Report CAO-36/25 re Ontario Regulation
588/17 – Asset Management Plan Financial Strategy, and approved the Financial Strategy for
the Asset Management Plan. The Financial Strategy identifies only a small percent of the
Municipality’s asset portfolio as non-core – 14 percent. Over the last ten years, the Municipality
has reduced the size of its asset portfolio, including a heavy focus on non-core facilities.
Expansion of the SCC is expansion of the non-core portfolio. Given the funding gaps identified
in the Financial Strategy and the relatively small percentage of the Municipality’s assets that are
non-core, there are two considerations for Council to weigh.
The first is identifying a reasonable amount of debt to allocate to non-core. It is reasonable to
use debt for non-core, but the amount of debt principal should be considered relative to the
percent of non-core assets that comprise municipal infrastructure, and the Municipality’s overall
debt capacity. The Municipality currently has no debt and can, at today’s rates, draw an
estimated $26 million in debt for various capital needs through IO. Based on a 14-percent non-
core allocation, Council may consider up to $3.64 million in debt for non-core capital projects.
The amount of debt presented in Options Nos. 1 and 2 in this Report is well below this threshold
and therefore, they may be considered reasonable amounts.
The second is considering upcoming and known core capital projects, which will almost certainly
require some degree of debt support. The following projects are already in the 2025-2034
Capital Budget:
Year Capital Item No. Capital Item Name Amount
Multiple WW-10, 11, 13,
and 14
Wastewater Treatment Plant –
expansion-related items
$36,376,000
Multiple PW-21, 28, 40, 50,
71, 79, and 104
Port Burwell Stormwater Phases
1C-F, and 2-6
$37,010,000
2028 W-10 Replacement of 7km transmission
main - PBASWSS
$16,883,000
Total $90,269,000
The above-noted core infrastructure projects are costed based on the 2025-2034 Capital
Budget and may be subject to price inflation and any capital grants applied to reduce amounts.
The Municipality has two grant applications out in joint with Malahide and Central Elgin for W-10
at this time.
The Port Burwell Stormwater phases also include full road reconstruction including curbs,
gutters, and sidewalks, which is costed into these individual Capital Items. An item is not
included at this time for Vienna stormwater renewal (including full road reconstruction), which is
approximately ten years away and currently estimated at a cost of $15,000,000, for a total core
infrastructure estimate of $105,269,000.
As the total debt need for core infrastructure projects vastly outstrips the Municipality’s
maximum debt utilization of an estimated $26 million, it may be prudent to leave as much debt
capacity as possible for core infrastructure rather than allocating any debt to non-core. This
being noted, the Municipality does not have the total reserves/funds to fully fund this project’s
cost over-run on its own. Debt is a requirement to proceed, and if Council wishes to proceed,
non-core debt is unavoidable.
Individual SCC Capital Projects
The final item is the consideration of what capital projects would be required at the SCC should
the tender not be awarded and the project not proceed as planned. These are costs to be
incurred by the Municipality regardless of the direction of Council and therefore, expenditures
that will likely happen regardless of whether the project proceeds.
SCC HVAC replacement
Potential Servery expansion
Concession Booth rehabilitation
New SCC well
The SCC HVAC replacement was previously a stand-alone capital item before the ICIP CCR
grant was awarded. The asset is past its useful life and has incurred regular maintenance above
budgeted projections to ensure the continued operation of the system and the SCC Main Hall.
Staff estimate the costs of a full system replacement at $135,000.
While not a requirement for functionality of the Main Hall, there has been interest from the SHF
in a new kitchen facility at the SCC, hence the ICIP CCR grant application. Should the project
not proceed as planned, the Municipality will have over $600,000 in the Facilities Reserve for
use, and may seek to renovate or expand the existing Servery to incorporate functional kitchen
appliances and perhaps expand the Municipal Office on the second floor, if possible.
The existing concession booth is currently closed and requires significant rehabilitation. The
costs associated with a stand-alone rehabilitation of the current concession booth are generally
unknown, but could be between $125,000 and $200,000, including a structural review and the
identified scope of work required to make the facility serviceable.
Lastly, the new SCC well has been installed for this project. It was noted at the time Report PW-
05/25 was received that the current well is nearing end of life and a new pump and casing, or
new well in general would be required within five to ten years. The costs incurred for the new
well were $18,477, which was operationalized as a levy-supported item within this year’s
budget. If the grant was not received, these works would have proceeded in a future year and
possibly at a higher cost.
Based on the above estimates, the total cost for works likely to proceed if the project does not
proceed under the ICIP CCR program is estimated between $879,000 and $954,000, all of
which will have to be funded by the Municipality through levy, reserves, or debt, or a
combination thereof. These estimates do not include the possibility of an accessible walking
path or a parking lot off of Old Chapel. If Council proceeds with these additional projects as
stand-alone items, the costs will likely be higher than if they were bundled in the tender award,
which would push Municipal costs over $1 million.
Recommendation
Based on the information in this Report, staff provide no recommendation on if Council should
proceed with the tender award for the Bayham (Straffordville) Community Centre Expansion.
Staff confirm the availability of reserve/funds for the SCC expansion project as outlined in
Options Nos. 1 and 2 of this Report. Additional reserve/funds do exist but are not recommended
for use. Avoiding additional reserve/fund use ensures adequate reserves/funds for other
municipal projects should the need arise.
Staff confirm adequate debt capacity for the project, and have identified a preference for a 5-
year IO rate over a 10-year at this time. Staff question whether the project aligns with prudent
infrastructure spending due to the costs associated with expanding non-core infrastructure and
in light of significant core infrastructure needs. However, staff do note that up to $3.64 million in
non-core debt allocation may be reasonable, given the percentage of Bayham’s asset classes
deemed non-core. Staff also note that potentially over $1 million may have to be expended on
stand-alone SCC-related projects if the ICIP CCR grant project does not proceed. Not
proceeding with the ICIP CCR project would result in Bayham losing $1.47 million in upper-level
funding.
However, should Council choose to award the tender and proceed with the project in full, staff
recommend proceeding with funding Option No. 1, and that Council:
Awards the tender to PK Construction Inc. in their effective tendered amount of
$2,928,070 plus applicable HST, which is subject to the following inclusions and
exclusions:
o Accept Alternate Prices for Siding and Seed
o Accept Separate Price items for
Accessible walkway around Straffordville Community Park
Old Chapel parking lot and walkway
Wider doorways
Millwork and kitchen equipment
Plumbing chases in Main Hall
o Accept temporary heating only / Reject temporary HVAC for Main Hall
Authorizes use of the following reserves and reserve funds to fund aspects of the
project:
o SCC Capital Donations Reserve in the amount of $48,129.42
o SCC Reserve Fund in the amount of $2,207.87
o Facilities Reserve in the amount of $707,000.
Allocates, on top of the award and to be funded through debt,:
o $100,000 for finishing works associated with information technology, security,
communications, and other necessary items.
o 10 percent of the tender award value of $2,928,070 to act as contingency for the
project.
Authorizes the use of up to $1,389,000 in debt through Infrastructure Ontario (IO) and
further requests that staff report to Council in Q1 2026 with the 2025 surplus report,
identifying any 2025 surplus funds that can potentially be allocated to the SCC
expansion project to reduce the requirement for IO debt; and,
Direct staff to include in the 2026 Draft Operating Budget a debt service estimate
associated with the upper limit of the authorized IO debt.
If Council proceeds in this manner, a by-law to enter into an agreement with PK Construction
Inc. would return before Council for approval, and Council would ultimately be required adopt a
by-law to authorize borrowing from IO for the project. At this time, staff cannot confirm when this
second by-law may come before Council as staffing will be looking for ways to stretch cash-on-
hand to limit debt service requirements in 2026. A realistic target, however, may be Q2 2026,
which is after the 2025 surplus report is received and Council provides direction for any
additional municipal funds allocated to the project, thereby reducing the IO debt requirement if
deemed appropriate to do so, and also after the audited financial statements are received by
Council. Q2 2026 would also align with our requirement under Ontario Regulation 588/17 to
conduct an annual assessment of the Municipality’s Asset Management Plan and Financial
Strategy.
Finally, if Council does not choose to award the tender due to cost pressures or any other
reason, the project is effectively unable to proceed. Council will be required to pass a resolution
to cancel the project and return the grant funds to ICIP CCR. Based on previous experience
with the scope reduction application under this program, there is not enough time between now
and the grant’s Substantial Completion Date to properly apply for, review, receive approval for,
and proceed with a reduced or otherwise altered project scope, including any request to alter
the grant fund allocation to another municipal non-core project.
STRATEGIC PLAN
1.1: Quality of Place > To invest in community infrastructure initiatives that create an
effective foundation that contribute to Bayham’s quality of life and economic
prospects.
Initiative(s): Focus on core infrastructure base on the Asset Management Plan and
compliance with legislation
2.1: Quality of Life > To work collaboratively with community organizations and others
in ensuring the availability of a diverse range of passive recreational, heritage,
cultural and other community services that contribute to enriching Bayham’s
valued quality of life.
Initiative(s): Strategic improvements to recreational amenities to promote healthy living
3.2: Quality of Governance > To continually demonstrate financial responsibility to the
community.
Initiative(s): Actively seek and apply for grants to support operational and capital projects
ATTACHMENTS
1. Table – Lowest Four Bids, with Select Alternate and Separate Price Data
RECOMMENDATION
1. THAT Report CAO-41/25 re Tender Award – Bayham (Straffordville) Community Centre
Expansion – ICIP Community, Culture and Recreation Stream be received for
information;
2. AND THAT Council provide direction in regards to the tender award, any alternative
and/or separate items to formally include or exclude from the award, and appropriate
funding mechanisms for the project.
Respectfully Submitted by:
Thomas Thayer, CMO, AOMC
Chief Administrative Officer
Table – Lowest Four Bidders with Select Alternate and Separate Price Data
RANK CONTRACTOR NAME
TOTAL TENDER
PRICE
(Incl.
Allowances,
excluding HST)
ALT PRICE #1
(Siding)
ALT PRICE #2
(Seed vs.
Sod)
SEP PRICE
#6 (remove
temp
HVAC)NET HST (1.76%)REVISED NET
CONTINGENCY
(10% NET)
REVISED TOTAL
CONTRACT
AMOUNT
1 PK Construction Inc.2,978,800.00$ 4,650.00-$ 7,500.00-$ 38,580.00-$ 2,928,070.00$ 51,534.03$ 2,979,604.03$ 292,807.00$ 3,272,411.03$
2 Graceview Enterprises 3,024,000.00$ 6,000.00$ 15,000.00-$ 23,650.00-$ 2,991,350.00$ 52,647.76$ 3,043,997.76$ 299,135.00$ 3,343,132.76$
3 Etka Construction Inc.2,881,000.00$ 119,000.00$ 32,000.00$ 6,250.00-$ 3,025,750.00$ 53,253.20$ 3,079,003.20$ 302,575.00$ 3,381,578.20$
4
Elgin Contracting & Restoration
Ltd.3,094,000.00$ 4,000.00$ 3,000.00$ 25,000.00-$ 3,076,000.00$ 54,137.60$ 3,130,137.60$ 307,600.00$ 3,437,737.60$
THE CORPORATION OF THE MUNICIPALITY OF BAYHAM
BY-LAW NO. 2025-060
A BY-LAW TO CONFIRM ALL ACTIONS OF
THE COUNCIL OF THE CORPORATION OF
THE MUNICIPALITY OF BAYHAM FOR THE
SPECIAL COUNCIL MEETING HELD OCTOBER 9, 2025
WHEREAS under Section 5 (1) of the Municipal Act, 2001 S.O. 2001, Chapter 25, the powers of
a municipal corporation are to be exercised by the Council of the municipality;
AND WHEREAS under Section 5 (3) of the Municipal Act, 2001, the powers of Council are to be
exercised by by-law;
AND WHEREAS the Council of The Corporation of the Municipality of Bayham deems it
advisable that the proceedings of the meeting be confirmed and adopted by by-law.
THEREFORE THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF
BAYHAM ENACTS AS FOLLOWS:
1. THAT the actions of the Council of The Corporation of the Municipality of Bayham in
respect of each recommendation and each motion and resolution passed and other
action by the Council at the Special Council meeting held October 9, 2025 is hereby
adopted and confirmed as if all proceedings were expressly embodied in this by-law.
2. THAT the Mayor and Clerk of The Corporation of the Municipality of Bayham are hereby
authorized and directed to do all things necessary to give effect to the action of the
Council including executing all documents and affixing the Corporate Seal.
READ A FIRST, SECOND AND THIRD TIME AND FINALLY PASSED THIS 9th DAY
OF OCTOBER, 2025.
____________________________ _____________________________
MAYOR CLERK