SMITHS FALLS — Smiths Falls council has approved advancing the design of a new Public Works Operations Centre, authorizing an amended contract with IDEA Inc. worth up to $294,000, excluding HST, to move the project from 30 per cent design to full tender-ready drawings and construction oversight.
The decision was made at the Feb. 9 committee of the whole meeting, allowing staff to complete 100 per cent detailed design, prepare tender documents and manage construction, with the aim of breaking ground later this year.
The new facility is planned for Walker Road and would replace the town’s existing public works garage, which was damaged by a structure fire in February 2025.
What’s being approved and why
Public Works and Utilities Director Paul McMunn told council the report seeks approval to amend the town’s existing agreement with IDEA Inc., which was retained through a competitive RFP process in 2024 as part of a planned capital replacement project approved before the fire.
“The report seeks council approval to amend the town’s existing contract with IDEA Inc. to advance the Public Works Operations Centre from a 30 per cent conceptual design to full 100 per cent detailed design, including tendering and construction oversight through the duration of the project,” McMunn said.
Design work was paused following a structure fire at the existing public works garage on Feb. 15, 2025, while insurance and site direction were resolved. In September 2025, council selected a site plan option fronting Walker Road, and the town later received an insurance settlement of approximately $1.29 million from Intact Public Entities, allowing the project to proceed.
The proposed facility is a purpose-built building of approximately 19,500 square feet and includes garage space, warehouse space, staff facilities and an administrative wing.
Administrative offices for Public Works
The administrative offices included in the proposed facility are limited to Public Works and related operational staff. The space would house supervisory, engineering, environmental and administrative support staff tied to Public Works operations, along with one additional office to allow for future growth.
McMunn said staff assessed whether those offices should instead be accommodated through renovations to the second floor of town hall.
“The analysis shows that new construction is both more cost effective and lower risk than renovating the historic town hall space, which carries higher per-square-foot costs and significant uncertainty,” he said.
Chief Administrative Officer Malcolm Morris told council that further town hall renovations are not included in the current five-year capital plan.
“This presents an opportunity to not bring phase four forward for some time,” Morris said. “Eventually, I would predict we’re going to use the space, but it defers that investment until we actually need it.”
Morris said accessibility upgrades, HVAC modifications and the installation of a lift would be required to make the town hall space suitable.
“Lifts are not inexpensive and sometimes they don’t work,” he said. “We think it’s a better use of money to put it into a new build.”
Cost, scope and next steps
IDEA Inc.’s proposed professional services fee of $294,000 represents 3.5 per cent of estimated construction costs, well below typical industry standards of about six per cent, McMunn said. The amount is an upset limit and would be adjusted downward if tender prices come in lower than expected.
A total of $9.17 million has been approved in the 2026 capital budget for the project, supplemented by insurance proceeds. The current Class D construction estimate is approximately $10.46 million.
“As we work through detailed design and move from Class D to Class A estimates, we can make refinements to keep costs down,” McMunn said. “Council will see the Class A estimate before we proceed to tender.”
Questions about how the projected costs compare with similar facilities in other municipalities were raised.
“I’m trying to understand why other communities have been able to meet this need for 40 to 60 per cent less,” Coun. Chris McGuire said, referencing projects in Perth and Montague.
McMunn responded that large capital projects typically begin with high-level estimates that are refined as design advances.
“A Class D estimate is very high level,” he said. “As we work through Class C, Class B and Class A, we can make those minor tweaks along the way.”
Operational benefits and timing
Mayor Shawn Pankow said the administrative component represents a relatively small portion of the overall project.
“The administrative office area is only seven to eight per cent of the total cost,” he said. “Freeing up space here at town hall is a benefit, and as the town grows, it will be used.”
Pankow also pointed to improvements for staff.
“The showers, the change rooms, the things that they don’t have access to,” he said. “Those are long-term benefits.”
McMunn said staff are motivated to move quickly but cautioned there is no guarantee the building will be ready before next winter.
“If we have any chance of getting shovels in the ground this spring, it’s incumbent on us to give this careful consideration,” he said. “We’ll do our best.”
Morris added that the town is currently paying to rent temporary trailers at the site.
“The sooner we get it done, the less money we’ll be spending on renting a trailer,” he said.
Council supported the recommendation, allowing the project to move into detailed design and return with a refined Class A estimate before any tender is issued.
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