North Battleford has awarded the tender for the final two components of the Credit Union CUPlex, and ratepayers will foot a 75 per cent recreation levy increase to finish the project.
Council passed a resolution awarding the contract to construct the field house and curling rink components to Scott Builders of Red Deer, Alta. for a total of $17,709,949. The resolution, moved by Councillor Don Buglas and seconded by Councillor Ron Crush, passed by a 5-2 vote Monday night.
Council also passed a resolution to increase the city's Recreation Culture Capital Facilities levy to complete all four components of the CUPlex at Monday's special meeting. A resolution calling for the RCCF levy increase from $100 to $175 per living unit, and for the Commercial, Elevators and Railway/Pipelines mill rate to move from 2.162 mills to 3.784, passed by a vote of 6-1.
The special meeting was held before an overflow crowd of onlookers at City Hall chambers, with the audience including a wide range of interested citizens both for and against moving forward with the project. Among those notables in the audience were former mayor Wayne Ray, former councillor Brad Pattinson, MLA Len Taylor and retired senator Herb Sparrow, as well as several CUPlex fundraisers and supporters.
The meeting was called after the CUPlex issue came up at council's last meeting Jan. 24, at which time director of finance Byron Tumbach updated council with the latest financial numbers on the state of the project.
At that time Tumbach outlined three possible scenarios: to go ahead with all four components with no levy increase and risk a $6 million deficit; to go ahead but raise the levy by 75 per cent; or to go ahead but chip the field house component out of the equation.
However, council's pro-CUPlex majority had already made clear their intent to support all four components and the 75 per cent recreation levy increase Jan. 24.
Crush was one of those councillors who supported proceeding with all four components. He spoke strongly in favour of keeping the field house, and compared removing it from the CUPlex to "sever(ing) a limb."
He also spoke against standing still and referred to Pamela Wallin's keynote speech at the SUMA convention last week as one influence of his reasons to vote for the tender. Wallin referred to the acronym BANANA: "Build Absolutely Nothing Anywhere Near Anything."
"The field house is part of what the CUPlex is," summed up Crush, saying none of the components could be sacrificed.
Buglas also spoke in favor of proceeding, saying it was investment in "all of our citizens."
He spoke out against those critical of the curling component who label curling a "dying" sport, and pointed to the "active volunteerism" in the community during the recent SaskTel Tankard, as well as growing youth involvement in the sport.
He also noted professionals were demanding these facilities before coming to the community.
"You probably already guessed it, but I am in favour of this facility," said Buglas.
Councillor. Rhonda Seidel said she was living up to her election pledges to "move forward" the community by supporting the project.
Councillor Ray Fox said he, too, would vote in favour. Fox was perhaps more sentimental than the rest of council, and spoke of not letting down the supporters of the CUPlex, pointing to the kids who sold rocks to raise money for the CUPlex as an example.
With Mayor Ian Hamilton also in favor, that meant five votes were in favor of awarding the tender for both components. But two councillors, Trent Houk and Grace Lang, broke rank with the rest of council and announced they could not vote in support.
During the debate over the tender, Houk at one point pulled out a memorandum of understanding between the City and the Granite Curling Club and asked why the city was spending $7 million on the facility when the current agreement outlines that the city's commitment shall not exceed $1.3 million.
City Manager Jim Toye explained the history behind the agreement, and the City's decision to develop four facilities instead one. A testy Houk responded that "he didn't answer my question. Why are we spending $7 million on a curling facility when that memo indicates $1.3?"
Mayor Hamilton said the question was "rhetorical" as council was about to decide on how to proceed.
Later, Houk talked about why he is not supporting moving forward. He pointing to the $24 million debt the city would have to assume to finish the project and said adding that to the current $22 million debt would bring the city over the $45 million debt limit approved by the province's municipal board.
"We're going to go over that $45 million limit," said Houk.
He also pointed to the interest and said the current debt actually amounts to $32 million with the interest. He also pointed to the lengthy list of other infrastructure projects the City faces, including the biosolids issue, landfill expansion and any unexpected expenses.
"I cannot support taking on this amount of debt," said Houk.
Lang also said she could not vote in favour. Lang had always supported building what the City could afford, and said the City had agreed to break it down to four separate buildings with the idea that it could proceed as it could afford them.
Lang pointed to her discomfort with the $24 million in debt the city would assume as her reason for not going forward. She said she is concerned about the impact that rising interest rates could have, even though rates were currently low.
"Interest rates go up," Lang pointed out, and she noted how hard it is to make payments when interest rates are high.
"I do not feel we can count on interest rates being low in the next 20 years," said Lang.
She also voiced concern about the rising commitment the City was assuming for the project. The City had initially committed $10 million, she said, but the City's share has gotten bigger and bigger and "nobody else has stepped up and offered more support," she said. She noted potential partners had not come through to the extent expected.
Lang suggested stepping back and taking a look at different partnerships before going ahead, and also pointed to the amount of infrastructure work that still needs to be done by the City in casting her vote. She also said there was no estimates in place for the operating costs and how to deal with it.
A recorded vote was taken on the tender, and the vote to award Scott Builders the tender for the curling and field house passed by a 5-2 margin, with Lang and Houk the only two "no" votes.
With that vote out of the way, the issue of the 75 per cent levy increase became a foregone conclusion given that council was now on the hook for financing the project.
Seidel claimed she had not heard any opposition from the community to the idea. She said in the two weeks since the issue had been tabled "I have not received any phone calls at home," and just one e-mail earlier that day. She said the revenue was needed from the levy so the community would not be behind the 8-ball in funding projects in the future.
The general reaction she heard was "don't stop what you're doing, you have to proceed," said Seidel.
Lang said she would be joining the rest of council in voting in favour of the levy increase because "there are bills we have to pay," but took one last swipe at the process by questioning why the issue of the levy was being decided at the special meeting instead of during the regular budget deliberations to come.
Houk said the reaction he received was overwhelmingly against the RCCF levy increase.
"We're walking on thin ice by moving ahead with this project," said Houk, who called proceeding "irresponsible."
Houk then asked if there were any signed contracts in place where fundraisers would be required to live up to their commitments. Toye responded there were no signed agreements with everyone, but said the City was working with the fundraising committee to make sure anyone with a verbal commitment will have a signed agreement. Those who reneged on signed documents could be sued, he said.
Houk later posed the question whether the City was crossing a line taking on $47.728,000 in debt, higher than the $45 million debt limit.
"Are we not breaking the law?" asked Houk.
However, his question received no answer. It was ruled out of order by Mayor Hamilton on a point of order by Lang, on the grounds that it did not relate to the motion to increase the levy.
The vote to increase the recreation levy was once again a recorded vote. This time Houk cast the lone "no" vote as the rest of council approved the increase by a 6-1 count.
Afterwards, Mayor Hamilton reiterated his belief the community was behind both the four components and the 75 per cent levy increase to pay for it.
"As Councillor Seidel indicated, her comments from the community was that, 'yes.' it was very acceptable to people that she's been talking to," said Hamilton. "I also have not heard a lot of negativity towards that particular proposal. So yes, I do believe the people of North Battleford do value the project and understand the value to future generations."
