DSSAB cost overruns explained to towns

By Heather Ogilvie
Staff writer

Valerie Pizey, vice-chair (and former chair) of the Rainy River District Social Services Administration Board, briefed district municipalities of the cost overruns on their new building on Saturday at the 16th-annual general meeting and conference of the Rainy River District Municipal Association held in Emo.
She explained the cost overruns are due to provincial regulations of the electrical and mechanical work in the building at 450 Scott St. that need to be met.
“Without the electrical and mechanical costs, we would only be $22,000 over budget,” she stressed, citing the DSSAB board is continually looking at ways to cut costs.
Pizey noted they intend to pay for the cost overruns through working reserve funds and a term bank loan. But, as of Saturday, she could not provide a figure of how much the bank loan would be.
“We’re mandated to have reserves and we put in approximately 50 per cent to be used for things like this,” she voiced, adding they also intend to rebuild the reserves fund up in subsequent years.
While some municipal leaders didn’t see how much could be done at this point in the renovation process, others seemed to think this is not the best way to handle the cost overruns.
“I’m just saying, the reserve funds are there and all of a sudden—oops . . .,” remarked Emo councillor Gerd O’Sullivan, who speculated on the stability of the reserve funds.
“I have no faith in you right now,” vented Jim Bellez, a La Vallee councillor. “You’re saying this now, but maybe next year it will be $5 million . . . We’re on the same avenue as Rainycrest.
“And I don’t believe this is beneficial to rate payers in the district.”
Pizey countered the new building, in the long run, should save operating costs because of good insulation and a better ventilation system.
“That’s what I’m told by the experts,” she added, noting it will also be great to have all the staff and programs under one roof and that the building will be good for the next 25 years.
In addition, Dan McCormick, DSSAB’s health service manager, provided information on the land ambulance bases.
He noted the tender for the Fort Frances base was awarded to Terra-Deco for $546,000 plus tax and while it is over-budget, it is the lowest bid they received after a second round of tenders.
They intend to use reserve funds—a separate reserve specifically for land ambulance—to fund the project.
He added the Emo base is expected to be tendered out in the near future.
After going 30 minutes over the allotted time for the presentation, questions to the DSSAB board were cut off.
Other Business
In other business at the annual general meeting on Saturday, the RRDMA agreed to endorse, in principal, the Northwestern Ontario Municipal Association’s Regional Recovery Plan.
The plan was presented by Iain Angus, chair of the Regional Recovery Program (RRP) Committee, who explained they have developed a common approach to taking the economy of the region forward.
“Key to this is the creation of a Northwestern Ontario Regional Development Authority (NWORDA),” he expressed.
The concept of NWORDA would see regional representatives working together to identify, promote and develop economic opportunities in and for Northwestern Ontario.
Angus indicated the RRP committee also identified a number of key areas “where work is urgently needed to move the economy of the region forward,” some of which require the creation of a task force or committee with a specific mandate.
The proposed areas of focus include:
•a regional enhancement committee to provide region-wide leadership for community and labour adjustment;
•a task force on energy to examine and develop a regional energy authority;
•a regional health and education task force;
•a Northwestern Ontario highway task force to focus on access to a growing economy;
•a regional tourism council to develop and foster a tourism strategy that would address planning, policy, and product development;
•Northwestern Ontario research investment and development corporation to provide “a co-ordinated entry point into the knowledge economy by marketing the region as a node for partnerships and immigration”; and
•a Northwestern Ontario Policy Research Institute, which would serve as “an arm’s-length source of policy advice to regional leaders and a repository of knowledge and data on the region.”
“I’m asking that you endorse this and the creation of NWORDA,” he stated, but noted the document will not be final until adopted by NOMA.
“In principal, I endorse it,” remarked Pizey from her seat on the floor. “But I haven’t had time to look over the details to endorse the document itself.”
Angus was willing to change the wording of the endorsement and the motion was carried.
The report will be presented at NOMA’s annual general meeting April 25-28 in Dryden and the full report is available to the public at www.noma.on.ca