Council Gives Green Light to Issue Tenders
Phase Three of Cast Iron Replacement from 2018 - File Photo
The need to issue tenders and find contractors early had Council approving issuing tenders before they are finally approved in the the 2019 Civic Budget.
Addressing Council City Manager Jim Puffalt said the tenders will be issued prior to the Budget being finalized as it was important. At the January 7th Budget Committee meeting Puffalt said tenders needed to be out early in order for the City to get lower bids and not finalizing them early could mean paying a premium for the work. READ MORE HERE
“It is important to get projects out to the marketplace as soon as possible,” Puffalt said, adding the proviso they “cannot be awarded until the Budget is complete.”
In discussion Councillor Heather Eby inquired about the City issuing multi-year tenders when it came to Cast Iron Water Main replacement.
City Engineer Josh Mickelborough stated it was something the Engineering Department did look at.
“It is something we look at when it comes to these projects,” Mickelborough stated, adding “we would require Council’s approval for a multi-year tender.”
Councillor Brian Swanson entered the debate inquiring how many meters of cast iron water mains Engineering was planning on replacing in 2019.
Mickelborough responded the Engineering Department was looking at completing 3.2 kilometers of cast iron water main replacement with a budget of $6.5 million.
Councillor Swanson questioned whether the amount of cast iron water mains replaced would allow for the project to be completed within the stated 20 year project length.
“This is sold as a 20 year project. There is 80,000 meters to replace, 80,000 meters is 4000 meters per year,” said going on to add at the present rate of less than the project 3000 meters annually would not accomplish this. He estimated the project to take 55-60 years at the present rate of replacement.
“We need to increase the scope of this project significantly there is a payback to the community in reduced costs for breaks,” Councillor Swanson stated, adding “(we are) living a sham when we are (actually) funding a 55-60 year program.”
Administration was asked if there would be delays by issuing a multi-year tender.
“This would probably not come as a huge delay. We could put it through as two options (on the tender),” Mickelborough stated.
Council was told a multi-year tender would not guarantee $6.5 million of construction per year in a multi-year contract “but some portion of that,” he said.
City Manager Jim Puffalt entered the debate stating “it guarantees rates to some degree for the three year term.”
Councillor Swanson spoke about the amount to be tendered for road paving.
“(It) $2.48 million is a sizable amount of money but less (than needed) to get us to a sustainable amount of roadway.”
Councillor Swanson then turned his attention to the cast iron water main replacement program.
“Multi-year tendering is something I have suggested and supported on this…I hope to encourage a huge company (to tender)…and lower the rate per meter that we pay.”
“We should be looking at three year contracts for $10 million a year and we would get at the situation in a significant way…the payback would be more than investing and new water meters in the City of Moose Jaw,” Councillor Swanson stated.
Budget Committee recently approved loaning $5 million to the Waterworks Utility to install new solid state water meters in all homes as well as a radio system to communicate with the smart meters back to a central location. The potential saving is $1 million to the Waterworks Utility in less loss due to inaccurate mechanical meters and staffing savings.
Councillor Chris Warren felt it was too early to say Cast Iron Water Main Replacement was going to take 55-60 years as predicted by Councillor Swanson.
“It is pretty early to be pegging it as a 55-60 year project…what is sustainable and affordable…what can the City realistically get done in a year?” Councillor Warren replied, adding “I think this program is going along at the right amount.”
At previous Budget Committee discussions Councillor Warren has spoken about the need to get the infrastructure work done but he has expressed concerns about taxpayers to finance and pay for the $230 million needed by the Waterworks Utility over the next five years.
Councillor Swanson responded that a large amount of the cast iron lines requiring replacement are approaching a century in their life.
“It is getting to be 90-100 years old and the rate of breaks is not linear but exponential…the idea that we will ramp up over a number of years is unrealistic…we waited too long to get started. We are in year four it is time to ramp this program up as we are spending more where we cannot afford it.”
Puffalt said despite the concerns they might in reality be misplaced.
“I think that what you find in these programs is you get to a point you rapidly reduce breaks and you divert that money into the underground repair and replace program,” Puffalt said.
“I understand that, the point is we are not there,” Councillor Swanson replied, adding “we have to put more money into this program…2.7 kilometers per year won’t do it.”
It should be noted that during Budget Committee discussions the Engineering Department estimated the point where replacement would reduce breaks to the point where it would cost less to do repairs was projected to be in five years.
On the issue of Sidewalk, Curb and Gutter replacement Councillor Swanson said it was one he could pare back.
“One doesn’t have to look fr when it comes to the state of Moose Jaw sidewalks,” Councillor Swanson stated, adding “this one could be pared back as much as I hate to say it (and funds redirected to Cast Iron Water Main Replacement).”
At the request of Councillor Swanson the individual tenders were voted on separately.
The vote to issue the tender for Cast Iron Water Main Replacement was 7 - 0. The tender has an estimated value of $6.5 million.
The vote to issue the tender for Sidewalks, Curbs and Gutter was 6 - 1 with Councillor Swanson opposed. The tender has an estimated value of $488,300.
The vote to issue a tender for paved roadways was approved 7 - 0. The tender has an estimated value of $2,450,000.
The vote to issue a tender for Sewer Lining and Manhole Restoration was approved 7 - 0. The tender has an estimated value of $789,000.
The vote to issue a tender for the East Main Feeder Line was approved 7 - 0. The tender has an estimated value of $2,000,000.
The total estimated value of the tenders combined is $12,227,300.
The East Main Feeder line drew comments from Councillor Swanson who said the project was initially predicted to cost $4.5 million but the tenders came back higher than expected. He estimated $7.5 million has so far been spent on the line. It needs to be noted the project also had one contractor walk away from the job.
“This would be a perfect example that infrastructure renewal is very expensive,” Councillor Swanson stated.