A project to reconstruct sanitary sewers on Napier Street North is going to cost more than expected.
Director of Public Works and Engineering Brian MacDonald came to the Strategic Initiatives Committee last night requesting an additional $170,000 for the job, which was originally budgeted at $1 million.
MacDonald told the committee the town received three bids for the job ranging from $1.1 to $1.3 million.
“Staff is confident the pricing we received is market pricing,” said MacDonald during the meeting. “It’s reflective of increases in construction values that have occurred in the last year.”
The project includes replacing the sanitary sewers along Napier Street North between Hume and Erie Streets as well as reconstructing the street, storm drainage works and some “minor” water main improvements. The work was part of the 2019 capital budget, and is high on the priority list after the sanitary sewer had a structural failure in 2017.
The project is smaller than a typical wastewater capital project, and MacDonald said the town is realizing less savings due to economy of scale than it would on a multi-million project.
The lowest bidder quoted the town $1,108,000 for the work plus contingency. MacDonald was asking for $170,000 extra, to bring the total budget for the project to $1,170,000 in order to award the contract to the lowest bidder.
The increase, MacDonald suggested, could come from the wastewater reserve fund, which had a sufficient balance to cover the increase.
“We only seek these opportunities to come to council when we’re over budget,” said MacDonald, adding a majority of his department’s capital projects come in at or under budget and therefore never end up before council with further requests.
“This is not normal to come before you and ask for an increased budget,” said MacDonald.
The strategic initiatives committee voted unanimously in favour of the increase to the project budget. The increase will have to get final approval by council at the June 24 meeting.
