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Wastewater treatment plant contract reviewed at City of Powell River meeting

Bid for linear work would put the total project cost at $89 million
NEW CONTRACT: Construction on the consolidated wastewater treatment plant is continuing, and City of Powell River has received bids for the linear work for the project, involving the piping to the plant, which would push the budget to $89 million.

If City of Powell River council accepts a bid for the linear work and lift stations, the expenditure for the consolidated wastewater treatment plant will come in at $89 million.

At the August 26 finance committee meeting, director of infrastructure services Tor Birtig outlined a contract bid for the linear work, which involves the piping required to get the liquid waste to the plant currently under construction in Townsite. The recommended contract, which will be considered at the September 2 city council meeting, would go to Graham Infrastructure LP in the amount of up to $18,430,314.22, plus GST. Graham Infrastructure is the general contractor for the treatment plant.

Birtig said the bid from Graham Infrastructure came in at $21.7 million.

“We met with Graham construction staff to clarify some issues in the tender and started looking for some savings as this amount would put us over budget,” said Birtig. “What we are proposing to do is to defer the Artaban [Street] portion of the work, which is approximately $3.3 million, and that would bring the total to $18.43 million for the project.

“We would like to defer the Artaban portion while we look for additional funding. We’ve requested from the grant funders to see if we could get additional funds from them. As of today, I don’t believe we’ve had a response. I believe the federal election is going to throw a delay into that process.”

Birtig said the city continues to negotiate with Tla’amin Nation with respect to a prospective capital contribution for the construction to tie the nation into the consolidated plant.

Birtig said in order to carry this linear work out, the city is authorized to borrow up to $27 million for the project. Current allocations are at the $20 million mark. This means the city would have to borrow the full $27 million.

“We’re also proposing moving money from the sewer reserve of $6 million to bring our available funding up to $89 million in order to do this work,” said Birtig. “In a nutshell, that’s the proposal we’ve put forward.”

City has sufficient funds, says finance chair

Councillor George Doubt, chair of the finance committee, said the linear work bid came in considerably higher than what was estimated, but the city has sufficient funds to construct the project on budget.

“We will use all of the previously approved borrowing power to do that and we’ll be using $6 million of the sewer reserve,” said Doubt. “That might have an impact on rates going forward at some point if we need to use it.

“There are two alternative sources of funding being looked into. One is additional grant funding from the federal and provincial governments and the other is a possible contribution from the Tla’amin Nation for the hopeful extension to the Tla’amin Nation of the whole system. Am I right on that?”

Birtig said Doubt was correct. He said if the funds did come in, the sewer reserve would be replenished.

Doubt said the city is in a reasonably good position.

“I’ve been watching other communities dealing with their wastewater treatment plants and the struggles they were having trying to keep them within budget and get them done at all,” said Doubt. “I appreciate the work that staff is doing. I know it must be difficult work for many of you as the days go on.”

Birtig said the initial $76 million figure for the project that the city put forward for grant funding was more than two years ago.

“We faced the two-year delay with inflation,” said Birtig. “As well, we hit COVID-19, which created all kinds of issues with supply chains and contractor availability, et cetera. We were definitely impacted by COVID-19 and the delayed response for the funding.”