The town has awarded another work contract for Phase 2 of its ambitious multi-million dollar capital project for the reclamation of the sewage treatment plant and lagoon lands.
In doing so, it has managed to save almost $400,000, thanks to continued aggressive competitive bidding for capital projects.
In April, the town awarded a $101,000 contract to a High River company for the demolition of the sewage treatment plant and saved $1.2 million on that work, which had an original estimated cost of $1.3 million.
The latest contract put out to tender was for the temporary removal of sludge from the east part of the sewage lagoons and to construct a storm water management pond in the southeast corner of the site, as well as to redirect a drainage ditch.
In a report to council, administration noted 29 companies expressed interest for the Phase 2 contract with 15 making tender submissions on the project the town originally estimated would cost $1.75 million. At council's regular meeting on May 24, a bid of $1.36 million from Red Deer's Howitt Construction Ltd. was recommended and subsequently approved.
“It is excellent financial news,” said mayor Brian Spiller of the ongoing competitive bidding by contractors for important municipal infrastructure projects that has led to large savings. “These items were all in this year's budget to have done, and we are saving money doing every one of the them. It is a good year to get a bunch of projects done that need to be done.
“Alberta Environment has told us these items have to be done after we hook up to the regional sewer line. We are not doing things for the sake of doing them,” added the mayor.
The latest good fortune for this year's major infrastructure projects follows the $850,000 savings the town made in February with the approved tender for the reconstruction and replacement of the northeast trunk main sanitary sewer line. The town had budgeted just over $2.1 million for that project but accepted a bid of $1.154 million from Sylvan Lake's Urban Dirtworks.
The funding for the sewage treatment plant reclamation project, as well as for the replacement of the northeast trunk main sanitary sewer line, came largely from last year's approved $9 million Build Canada grant, a three-way funding partnership between the federal, provincial and municipal governments.
Spiller and senior administration staff have previously said that agreement allows the town to use the savings for necessary future work that is part of the overall scope of the approved Build Canada funding deal.
Mayor Brian Spiller
"These items were all in this year's budget to have done and we are saving money doing every one of the them. It is a good year to get a bunch of projects done that need to be done."
