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Northland borrowing bylaw goes missing
Councillors ask administration, what's the holdup?

Simon Whitehouse
Northern News Services
Published Friday, July 27, 2012

SOMBA K'E/YELLOWKNIFE
No one, including city council, appears to know what happened to a borrowing bylaw that would allow the city to begin work on repairing Northland Trailer Park's crumbling water and sewer line lines.

Council was expecting to vote on first and second reading of the bylaw Monday night but it failed to make it on to the agenda.

City councillor Bob Brooks pressed administration when the item didn't appear. He said it's important to get as much work done as possible on the mobile trailer park's broken water and sewer pipes before winter brings the prospect of a catastrophic infrastructure failure.

"We still want to get the project done as quickly as possible because we want to take advantage of the construction season as much as possible," he said.

Mayor Gord Van Tighem said he is hopeful the issue will be approved before the end of the summer. The next regular council meeting is not until Aug. 27, however, another special council meeting could be called in the meantime.

A draft borrowing bylaw, which gives the city the authorization to borrow money to finance the water and sewer line repairs - $15.7 million over 25 years - was brought to council along with a local improvement bylaw at the June 25 municipal services committee meeting. The latter bylaw, which gives the city the ability to make the actual improvements on condominium property, had to be passed first, said Van Tighem. It received third reading approval during a special council meeting, July 16.The borrowing bylaw, however, has still not come before council for a vote.

Back in April, senior administrative officer Bob Long chided Northland's negotiating committee for the time it took to approve a deal with the city to finance the repairs.

"I think the window is quickly, rapidly disappearing in terms of doing too much in this construction period," said Long during a municipal committee meeting April 9.Only when council approves both bylaws can the city begin to look at securing finances for the project and issue a request for proposal for design and engineering services.

"We had asked that these items be brought forward together and I was surprised to see that it wasn't brought forward when the local improvement bylaw was brought forward," said Brooks on Monday night.

"My concern is that we want to lock in the interest rates and get moving forward."

With Bank of Canada governor Mark Carney ensuring Canadians last week that borrowing costs will remain low, Brooks says it is highly probable the city will be able to get a low interest rate if it acts now.

Grant White, who was sitting in for Long at council this week, couldn't say what the status of the bylaw was, and both Long and corporate services director Carl Bird were absent.

Coun. David Wind said he had been expecting a vote on Monday as well.

"One of the reasons why we had the special council meeting (July 16) was so that we could get the local improvement bylaw done," said Wind.

"We were expecting (the borrowing bylaw) Monday."Based on the city's proposed timeline set out in the memorandum of understanding with Northland, it appears project dates right now can still be met. The proposed timeline for both the request for proposals for the design and engineering services, and the financing for the project are to be done by July 30. The design and contract are to be awarded by Aug. 20, with tendering to be issued for construction on Sept. 3. A contract is to be issued by Oct. 1.

Wade Friesen, a member of Northland's negotiating committee, said he was expecting the city to be meeting with the Canada Mortgage and Housing Corporation during the first or second week of August to discuss the content of the bylaws for insurance purposes.

"I knew they were doing two separate bylaws at two separate times and they passed the one and were doing the one right after," he said. "I don't think there have been any hangups or any problems."

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