REPORTING · 31st August 2012
The Yukon Lift Station came before Council on Monday, August 20th. The lift station is due for maintenance and there has been some construction inflation. $300,000 was budgeted earlier this year, but now the project is estimated to cost $400,000.
Administration recommends the project continue with addition cost coming from the Gas Tax Fund for Capital Works Projects. The other option is to cancel the project until the costs come down.
Two tenders came in, one of them at $299,000 and one at $351,317. Both were considered higher then the estimate. The cost was attributed to cost of construction being lower in the lower mainland and inflation costs for work to be done in Kitimat due to high construction activity.
Councillor Rob Goffinet made a motion to continue the project with an addition cost of $100,000 coming from the Gas Fund.
Councillor Corrine Scott stated one of the tenders was less then $300,000. Administration replied back the construction costs were $300,000 but there were other costs outside of the construction.
Scott followed up with a question asking why the costs doubled over 6 months. “Either we got a very poor report from the engineers we consulted with but I can’t see an engineering firm being out double the amount for the construction costs,” said Scott.
The reply was there was no control on what a contractor will bid on the project. However, proceeding would cost $400,000. Councillor Mario Feldhoff wanted to know if they were to proceed, when the work would be completed. He was told it would be completed this year.
Mayor Joanne Monaghan wanted to know what the ratifications would be if the lift station was not repaired. She was told it was an old lift station, there were no parts for repairs and there would be a sewage spill.
Scott wanted to know where the consultants were from. She was told they were from Smithers. Scott said: “I am absolutely amazed that a company from Smithers would be basing it on lower mainland costs to start with and not taking into consideration where the work is being done.”
She was told this is not the first time this has happened. Last year, they had budgeted for two lift stations and they were only able to do one with the budget.
The motion to continue the lift station work was called and carried.