DIDSBURY - The Town of Didsbury's council has accepted a $7.1 million tender for the east reservoir project and has given first reading to the plan to pay for it.
The reservoir will be constructed next to the Didsbury Memorial Complex and will help to meet current and future demand for water in the community.
The project was put out for tender in March and closed on April 11. The town’s engineering consultant reviewed each of the six tenders received.
“Administration evaluated the unit rates for risk exposure,” said acting chief administrative officer Amanda Riley during the recent council meeting. “Numerous items in the tender are lump sum items. There is little risk to the town for the majority of items.
“Although the risk is low for most unit rates, the town is exposed to potential tariff impacts. Administration is acutely aware of the risk tariffs can pose and we are prepared to seek alternative supply lines for acceptable substitutions.”
Of the six bids received, Timcon Construction came in with the lowest tender, of $7,1112,083. The other bids ranged from $8.8 million to $13.6 million.
Construction costs for the project have risen significantly in recent months, requiring administration to review the budget, she said.
“The original approved capital budget for the project was $5.68 million. Given the lowest tender amount came in approximately $1.72 million over budget, the capital budget requires an amendment to move forward with the project,” she said.
Council carried a motion to award the east reservoir project to Timcom.
As well, a second motion was carried to amend the capital budget for the project to a total cost of $7.4 million to be funded with a Alberta Municipal Water Wastewater Partnership grant of $2.5 million, offsite levies of $215,000, water reserves of $1.14 million, and debentures of $3.5 million.
During the April 22 council meeting, council members carried a motion granting first reading to the borrowing bylaw for the $3.5 million debenture.
“This bylaw, because it is required to be advertised, is subject to petitioning, meaning that a petition for a vote of the electors ma be submitted to the chief administrative officer within 15 days of the last day of advertising.
“Following that date, the bylaw will be presented to council for second and third reading at the June 10 council meeting.”
