City Loses Fourth Avenue Bridge Arbitration Bid
Loss has City asking if Fourth Avenue Bridge best investment of limited tax dollars - Decision adds $12 million to City’s hoped for share
The City’s position throughout the 115 year lifespan of the Viaduct has been consistent and straightforward. Costs of building or structurally rebuilding the Viaduct should be shared equally between CPKC and the City. Both parties have always shared an equal responsibility to coexist at this juncture, and will continue to benefit equally.”
— CITY OF MOOSE JAW'S RESPONSE TO CPKC'S SUBMISSION TO THE CANADIAN TRANSPORTATION AGENCY ARBITRATION HEARING
By Robert Thomas
The City of Moose Jaw has lost their battle to have the Canadian Transportation Agency (CTA) arbitrate that Canadian Pacific/Kansas City (CPKC) pay 50 percent of costs for the rebuilding of the 4th Avenue Bridge.
The CTA did order CPKC pay 15 percent of the reconstruction agreeing with the worst case scenario put forward in the Railway’s legal submission to the CTA.
It’s a decision which will see the City financially on the hook for millions of dollars Administration previously did not forsee as the City’s responsibility.
LEGAL DECISION
Speaking at Thursday’s Budget meeting City Solicitor/Director of Legislative Services Andrew Svenson typified the decision as falling in the middle of what both parties had been looking for. But it was not what the City had been hoping for.
“The decision was one where we were hoping that more cost sharing than was awarded. But perhaps CPKC would be saying it would be less. I think it’s somewhere in the middle of what the parties want,” Svenson told Council.
The City had wanted the costs to be shared on a 50/50 basis whereas CPKC contended their share should be nothing and if there was a decision the Railway had to pay something that it should be no more than 15 percent.
The CTA decision is basically an 85 - 15 split agreeing with CPKC’s legal worst case scenario.
The City has until February 22, 2025 to appeal the decision but first leave must be granted to file an appeal. Svenson indicated any appeal would likely have a chance of success.
“Given the wording of the decision we’re not sure if there is a lot of room given to the City to make that appeal successfully,” he said.
There is no way to seek an appeal based upon the City not liking the decision but rather one where there is an error in law.
“That’s the difficulty we’re finding in even finding that error in law because of the way the decision is worded,” Svenson said, adding “the areas we… don’t like have been phrased as findings of fact more than a finding of law. So those things aren’t typically what an appellant court or body would look at.”
COST ESTIMATES
Bevan Harlton told Council the designs for structurally rebuilding are at 90 percent or tender ready.
A 2020 condition survey on the bridge found it would not be fit to stand in 2035 thereby necessitating the major structural rebuilding and in some areas upgrades.
“It indicated we will require a full replacement in 15 years or 2035. Worded differently that structure won’t be fit to stand by 2035,” Harlton said.
The extensive survey of the Fourth Avenue Bridge was conducted in August 2020 - MJ Independent file photo
The present design has a shelf life of up to five years before a more extensive design will be necessary, he said.
The bridge will continue to degrade with the amount of work and costs necessary increasing.
Preliminary estimates have the 4th Avenue Bridge costing $25 million with the estimated 85 - 15 cost split costing local taxpayers $22 million. Much higher than $12 million that the City hoped 50 - 50 cost sharing with CPKC would cost.
“What we’re looking at with the current costs is $22 million for the City, $3 million from CPKC and about $200,000 for CN Rail,” he said.
“As disappointing as this outcome is it now gives clarity to operations as to what we are looking at here. And what sort of commitment we’re making to build this bridge.”
Transferring the bridge to a pedestrian only structure will only offer “minimal to moderate cost savings,” he said.
“The cost savings going from a vehicle bridge to a pedestrian bridge are often minimal. Because the reality is you are still putting humans on that bridge,” he said adding the Fourth Avenue Bridges decking is still degrading and unless deck work is done “we will ultimately lose this bridge.”
Demolition is not a cost friendly answer.
“Based on my own perception that people are looking for the silver bullet here. I think people are looking for the way out or the way through this and demolition isn’t it,” Harlton said.
He spoke about Saskatoon where they knocked down their Traffic Bridge in 2014 at a cost of $41 million.
Given an 85 - 15 split on rebuilding or demolition costs to demolish will go up.
“I’m hopeful that Administration can have some functional conversations with the rail companies and attempt to solve this bridge now with the solutions we have now. Demolition in 15 years is going to cost twice what we’re putting through to fix the bridge now.”
The City so far has $4.6 million in carry forward to do the work.
The bridge would have to close for 12 - 18 months to complete the work.
The work would give the Fourth Avenue Bridge a 50 - 75 year service life until additional major repairs would be necessary.
The reconstruction work would also result in the Fourth Avenue Bridge upgraded from a 10 tonne to a 30 tonne bridge.
CTA DECISION - TIME TO REFLECT
Harlton said given the CTA decision it is “perhaps time to reconsider where we are attempting to make our investment and the cost benefit of investing in this structure where it is with the services it provides versus putting our money into an alternate structure.”
“There are impacts to the community, to businesses if that bridge doesn’t stand there is a pro there and that is of dollars going to something else,” he said.
City Manager Maryse Carmichael said with the CTA decision’s clarity there would be an internal review.
“Now that we have the ruling, we know where we stand, we need to fully look at it including planning, including the community to understand as the city is growing are we continuing with Thunderbird Viaduct (Fourth Avenue Bridge) and investing in that asset? Or is it time to fully look at…the 16th Avenue Bridge…now we need to take a deeper look with planning and with the community,” Carmichael said.
“It’s a little pause we are going to take on our side to ensure we’re going in the right direction for the future.”
Councillor Chris Warren said the CTA decision meant the issue was up for discussion.
“Do we invest in something like that (a bridge further west in South Hill) as opposed to something like the Thunderbird Viaduct or maybe they’re both needed or only one is needed,” Councillor Warren said.
Councillor Heather Eby said the City shouldn’t be overly surprised with the CTA decision.
“I think this is a really important project obviously but I think it will be great to hear from the community and see how they’re really feeling,” Councillor Eby said.
She spoke about the last major repair closure and the negative impact it had on South Hill businesses as well as residents.
“I thinks it’s going to come through as an important bridge but we’ll have weigh if they think that’s more important than a 16th Avenue brand new bridge plus the cost to demolish this one,” she said.
The dire condition and need to replace the Crescent View Sewer Lift station impacted her decision to just go ahead and immediately green light the Fourth Avenue Bridge restoration.
Councillor Patrick Boyle said it might be nice to look at a new bridge on 16th Avenue SW “until you have some significant development in that area that would justify that is probably not a conversation.”