Town council approves east neighbourhood contracts despite bids running 32% over estimate
By Ian MacKay
Town councillors took their decision on whether to approve contracts that came in much higher than the original estimate behind closed doors at their June 1 meeting.
The low bid of close to $1.1 million to install required services around Sixth Avenue East for the planned east neighbourhood development was 32 per cent higher than the engineering firm's estimate, councillors learned during the meeting.
"The main items contributing to this variance are the water main and manhole pump station," according to a document from Aecom, the engineering contractor. "Both bids contained significantly higher prices for these items than estimated."
The town budgeted $600,000 for both jobs -- it and roadwork at 14th Street and Colwell Avenue -- and Aecom engineers estimated $780,000.
The total of the low bids for the two related but separate projects is over $1.2 million.
A document from new chief administrator Damon Werrell suggested using money from the town's reserves to cover the extra costs and proceed, noting that "market conditions" affected the prices and warning that any delay would risk cancellation of the UFA plans and likely mean higher costs.
An Aecom document recommended accepting the nearly $1.1 million bid for the underground service project from Gee Bee Construction of Kipling. Their staff indicated they'd aim to start in July and finish by the end of August. The firm has worked for Aecom in the past, the document said.
MTE Civil Construction and Maintenance of Warman, which has been contracted for the UFA fuel station roadwork, submitted the low bid, of close to $413,000, of four received to do road work around neighbouring 14th Street and Colwell Avenue.
That the company will already be working there likely contributed to its lower bid, Aecom engineers Amy Miller and Trevor Woiden wrote.
Meanwhile, councillors also approved sending letters to owners of seven properties that the town intends to acquire title to unless they pay back taxes.
Liens are already registered that owners were informed of at least six months ago and these will be their "six-month notices," said Damon Werrell, the new chief administrator.