City to dip into reserve funds for two projects

City reserve funds will be used for waterworks replacement projects — one at the airport and one in the vicinity of Yorston Street.

Money from the reserve funds will be used for waterworks replacement projects — one at the airport and one in the vicinity of Yorston Street.

City council has awarded Peterson Contracting Ltd. the two contracts for a total of $204,965, excluding applicable taxes, and approved transferring $35,000 from the water reserve fund to help cover the costs of replacing 185 metres of water main at Yorston Street and $22,000 from the airport operating reserve fund for sewer main replacement work at the airport.

The work at Yorston Street will cost $35,000 more than originally estimated. “We put a budget together and our budget figures were low,” acting chief administrative officer Geoff Goodall said.

At the airport, a section of the sewer main has settled and requires replacement and realignment.

“It should be noted that the sewer main that has failed is the only sanitary outlet for the entire airport, and is considered critical,” engineer technologist Jeff Bernardy outlined in a report to council.

The two projects were combined for economy and to attract bids, Bernardy reported.

Three other bids received by the city were from Bree Contracting Ltd. for $214,150, Lauren Bros. Construction Ltd. for $215,885, and Colmar Construction Ltd. for $314,670.

Coun. Geoff Bourdon reminded council the city is reaching the threshold it had established for a minimum amount in the airport operating reserve fund.

“Because the airport is a self-sustaining structure we have to look at how we move forward in planning for that,” Bourdon said.

Acting mayor Ivan Bonnell said the airport rate increases approved in January have yet to be realized.

Goodall agreed saying there will be a shortfall in 2013, but that should not be the case in the future.

 

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