In the end reducing project costs by one million dollars was the tipping point that allowed a last ditch effort to see the City Operations Centre Project move forward.
The project was green lighted Friday at a Special Meeting of Council, called by Bob Maloney which is within his purview as Mayor.
“The outcome of the meeting of Council on March 30, 2020 regarding the City Operations Centre Project has led to the call of this Special Meeting of Council in order to review and consider a reduced scope of work for the City Operations Project,” explained a report to Council circulated Friday.
“It is recognized that the current state of the Public Works operations and conditions for our employees is not sustainable, and so a decision must be made regarding another option.”
The meeting being held only four days after the regular meeting of Council was called because “As with any bid process, there are restricted timelines in order to make decisions while a bid is still legally valid,” detailed the report.
It was also noted Council held a conference call and had agreed to review the project if a compromise was possible.
Mayor Bob Maloney presided in Council Chambers with Councillor Goulden and Kienle present and Councillors Chyz, Hippsley Haider and Zaharia joining the meeting remotely.
The compromise was ultimately to reduce costs by $1 million.
“Administration has deducted all costs associated with the stockpile site location including the building, the site work, and the weigh scale structure,” said City Manager Lonnie Kaal.
“The tender amount has been decreased by $500,000 as per alternate prices provided by the lowest bidder.
“Further, the budget for additional work has been decreased by $500,000 for the stockpile site expenditures outside of the contract.”
As a result of the adjustments the total project cost was “decreased by $1,000,000 and Administration will endeavor to find further cost savings as able,” said Kaal.
When including PST plus our own landfill tipping fees, permit fees, plus external project management supervision; the total project costs had been reduced to $18,730,000 excluding contingencies.
The savings over budget would be set aside for whatever Council might require, said Kaal.
As is typical, savings on a capital project are set into reserves for future capital projects, but with current uncertainties because of COVID-19 Kaal the money could go into an undedicated reserve for any future project. She suggested the $2.2 million in under budget dollars be set in such an account.
The new numbers had Council considering a recommendation “that Council direct Administration to award the tender for the City Operations Centre project to PCL Construction Ltd. for $16,250,000 plus applicable taxes, and further that the Mayor and City Clerk be authorized to execute said contract.”
The motion would pass in a four-to-three vote, but not before nearly an hour of questions, debate and statement involving all seven members of Council.
Councillor Darcy Zaharia remained staunchly against the project, and questioned the special meeting.
“I’m really disappointing in the process,” he said, adding he was unsure how, given the scope of the project, a revamped set of numbers could be achieved in only four days, and what that said about the process.
Coun. Ken Chyz wanted to know if the overall savings under budget were indeed $3.3 million, and if that saving could be used to ensure no tax increases in 2021?
After confirming the under budget amount with the revisions unveiled Friday, Kaal how the money was used “would be up for Council to decide.”
Chyz also questioned if the tendered amount was a solid price, or could the project end up costing more.
Kaal said while a small portion of the project, site excavation might change, there was a contingency fund in case of such an occurrence. As for the main building the tender is the price.
Coun. Mitch Hippsley, calling in from Calgary said the situation of workers needing a new place to work was “very real,” but later said the safety issue had to be separated from the question of whether the project as presented Friday should move forward, or not.
Coun. Aaron Kienle said he along with Maloney and Councillors Randy Goulden and Quinn Haider visited workers at Public Works to see the need first hand this week. He said once there the question of whether workers are safe and healthy is easy to answer.
“The answer is no,” he said.
Kienle added he sees the concern as more than physical heath, but of mental health as well, exasperated by their employers, the City and Council not doing anything to alleviate the health issues.
“We as City Council are responsible,” said Kienle.
As she did Monday, Coun. Randy Goulden said Council has a role and that role “is around recovery,” in the face of something like COVID-19, and an investment in a building that is needed that stimulates the local economy is one good way to lead.
Maloney said he had more calls on the project than any other in his time on Council.
“I’ve never has as much feedback as I’ve had on this,” he said, adding most were supportive. “... They say we need to do this, and need to do it now.”
Maloney added the City can afford the project too.
“I think we have the best deal ... in front of us ... We have the financial capacity to do this,” he said.
Coun. Quinn Haider, who would ultimately carry the project forward as the Councillor changing his vote from Monday, said when he was running for Council he said, a vote for me was a vote for family and safety and the centre was about both.
Haider said he wanted to see a compromise to move the project forward, and there was a lower cost in the proposal presented Friday.
“It’s not as low as everybody would like,” he said, but added with a compromise “not everybody is going to be happy.”
With Haider on-side at vote time, the project passed with Councillors Goulden and Kienle, and Mayor Maloney also in favour.
