Owen Sound Council May 25: Key Decisions and Deferrals
Council approved Catholic school servicing, awarded the 16th Street tunnel tender, raised water bills, passed new parking and bylaws, and deferred two items.
Owen Sound City Council worked through a substantial agenda at its May 25 meeting, approving infrastructure agreements for a new Catholic secondary school, awarding a major tunnel rehabilitation tender, endorsing a water bill increase, passing a series of bylaws covering parking, bylaw enforcement and an economic development partnership with Grey County, and deferring decisions on two contentious items.
The following is a summary of decisions made and items deferred.
Catholic high school servicing strategy approved
Council directed staff to bring forward bylaws executing a capital cost recovery agreement and conditional building permit agreement with the Bruce-Grey Catholic District School Board for the new secondary school at 2753 15th Street East.
The 108,000-square-foot school on three levels — with a separate shop building, two parking areas, a bus lay-by and two athletic fields — is targeting occupancy in fall 2028. Site plan approval was granted in April, subject to conditions the board is now working to fulfill.
Under the approved strategy, the school board will pay upfront for water main extensions along 8th Street and 28th Avenue, connecting the East Hill and industrial pressure zones. The city’s direct financial contribution is limited primarily to a pressure-reducing valve and five service laterals, with a planned capital budget of $250,000.
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Eleven adjacent properties have been identified for future capital cost recovery as they are redeveloped. Staff estimated the school board will ultimately recover 89 to 90 per cent of the water main cost through that mechanism.
Council also authorized the use of wastewater rate revenues to credit just over $111,000 against outstanding Sydenham Heights servicing debt — offsetting the development charge the school would otherwise owe but for which school boards are exempt under provincial legislation.
A temporary 1.5-metre asphalt pedestrian path will connect the school to the 16th Street sidewalk network until adjacent commercial lands are developed. Staff acknowledged that the nearby rail trail, which serves as a snowmobile corridor in winter, cannot be maintained by sidewalk plows and is not an ideal walking surface for students in the colder months.
16th Street tunnel tender awarded; 2027 resurfacing affected
Council awarded the contract for the 16th Street East pedestrian tunnel rehabilitation to E.C. King Contracting, a division of Miller Paving Limited.
The project scope expanded after the original design to include pedestrian sidewalk connections on either side of the rail trail — anticipating foot traffic from the new Catholic high school. Staff said $875,500 of the additional cost will ultimately be recoverable from future developers north of the school and between Heritage Grove and the rail trail.
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To fund the project upfront, the city will draw approximately $300,000 from a capital contribution reserve and $575,500 from the 2027 federal gas tax allocation. Staff said that decision essentially eliminates the 2027 road resurfacing program, with only small portions of resurfacing likely to proceed. The program historically receives about $700,000 annually from gas tax revenues.
Council also accepted roughly $300,000 in scope reductions to the tunnel contract, including approximately $184,000 in painting work removed via change order and a provisional item for tunnel lighting. The existing tunnel lighting has not functioned for years and will not be replaced under the rehabilitation.
The culvert design will accommodate a possible future widening of 16th Street.
Water bills up about 3.1%
Through approval of the Operations Committee minutes, Council endorsed a 5% increase to the water rate alongside a reduction in the sewer surcharge from 124 to 120% of water charges, effective with the July 2026 billing cycle.
The combined effect is an estimated total bill increase of approximately 3.1%. A typical residential customer using 200 cubic metres annually will pay roughly $52 more per year.
Staff said the rate report came to Operations Committee about a month later than usual to capture additional consumption data from newly installed meters. Despite the new meters, overall recorded consumption has not increased, and the rate study is working with less than a full year of data.
The next opportunity for public input on water rates will come at the water and wastewater capital review on June 23.
River District Constitution revisions
Council directed staff to bring forward a bylaw adopting revisions to the River District Constitution. The amendments are largely administrative and operational, intended to improve clarity, strengthen election administration and reflect current board practices.
The revisions include a small annual reserve — approximately $1,500 — to fund third-party administration of River District elections, which currently run in parallel with municipal elections and place additional strain on city staff.
New short-term parking at library and gallery
Council passed a bylaw adding two short-term parking spaces on 1st Avenue West adjacent to the Owen Sound and North Grey Union Public Library and the Tom Thompson Art Gallery.
During public forum, the library’s chief librarian told Council the change is a step in the right direction but inadequate. He urged Council to designate the full stretch from the corner to the bandstand as short-term parking, with four properly sized accessible spaces, arguing the two new spaces will always be filled and offer little practical benefit to drop-in visitors.
An amendment to extend the short-term parking designation from 8th Street to the bandstand and review accessible parking against AODA standards failed. Council subsequently carried a separate motion directing staff to incorporate a comprehensive report on a redesign and realignment of parking along 1st Avenue West — involving all relevant stakeholders — into the 2027 work plan.
Other decisions passed
Council enacted bylaws appointing a bylaw enforcement officer and executing a memorandum of understanding with the County of Grey respecting economic development initiatives under the Team Grey partnership.
Council also voted to forward correspondence from Prince Edward County — a motion advocating for expanded municipal authority to levy a vacant commercial storefront tax — to the River District Board of Management for discussion.
Consent agenda
Council approved a number of routine items through the consent agenda, including the 2026 fees and charges schedule, a policy consolidation governing council seating and county council appointments, an encroachment application at 792 2nd Avenue East, the dedication of land as a public highway, and non-standard procurement approval for the wastewater treatment plant digester clean-out.
4th Avenue West reconstruction deferred
Council deferred a decision on the 4th Avenue West reconstruction to the June 23 capital budget meeting, following debate over two design options.
Staff had recommended Option 1A — a wider road with a multi-use path — but also presented Option 2A, which would narrow the road, replace the multi-use path with a regular-width sidewalk, eliminate on-street parking, and cost less.
The project uses Ontario Community Infrastructure Fund (OCIF) revenues. Staff confirmed the funding has a maximum buildup period, but the city has not reached that limit.
Crash analysis working group deferred
A notice of motion proposing a working group to analyze the city’s three highest-collision intersections was deferred to the June 15 committee meeting.
The motion would direct that, following the 2026 municipal election, the Operations Committee strike a three-to-five-member working group in 2027 to examine contributing factors and potential safety interventions at the intersections of 10th Street and 9th Avenue East (15 collisions in 2025), 16th Street and 9th Avenue East (14 collisions), and 10th Street and 4th Avenue East (14 collisions).
The deferral allows time for input from the City Manager on how the proposal would be operationalized.
The capital budget meeting is set for June 23.
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