Thursday, 07 September 2017 04:56

City to upgrade reservoir and pump house

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The City of Swift Current will borrow additional funds to upgrade the South Hill reservoir and pump house, which will increase pumping capacity to households and provide water to SaskPower’s new Chinook Power Station.

Councillors approved several motions in relation to this project at a regular council meeting, Aug. 28, including a notice of motion to advise the public of their intention to consider a borrowing bylaw for financing within the water/waste water utility.
The total cost of this project will be $2,955,788.20. An amount of $530,000 was already approved in the 2017 capital budget, but the City needs an additional $950,000 to funds its portion of the project.
SaskPower will pay half of the cost of the project. The Crown corporation already submitted a letter of intent to the City for the payment of an amount of $1,477,894.10.
According to Mitch Minken, the City’s general manager of infrastructure and operations, this joint project with SaskPower will have a significant advantage for the City.
“Even though there’s some extra cost associated with having more pumping capacity to handle them it's still a benefit to us, because we would have had to be spending a lot of that money to do this increase capacity for ourselves,” he said.
The upgrades include an additional pump house building, two additional wet wells, two pumps for supplying water to the Chinook Power Station, and two pumps linked to the City’s water distribution system.
“SaskPower has just awarded the pipeline,” he said. “So in the joint project that we’re doing with SaskPower, they’re building their portion of the pump house. They’re also building the entirety of the pipeline out to the Chinook Power Station. We’ll be taking all that infrastructure over when it’s complete and we’ll be in charge of running and maintaining that.”
A motion was approved at the meeting to award the contract for the South Hill reservoir and pump house to the lowest bidder, Hipperson Construction, for $2,664,688.20 (excluding taxes). Additional project costs of $100,000 for engineering design and $191,000 for engineering construction management will be paid to AECOM.
The project will have to be completed within tight time limits, because SaskPower’s intention is to provide water to the power station by May 2018.
A financial penalty of $50,000 per day will have to be paid to SaskPower if this deadline is not met.
The upgrades to the South Hill reservoir and pump house will have significant benefits to the effectiveness of the water supply system in Swift Current.
“It will increase our pumping capacity both for the south zone, the south side of the city, which has needed some additional pumping capacity because we’ve got some lower pressures that we’ve been trying to address in there,” Minken explained. “The South Hill reservoir feeds to the North Hill reservoir, which feeds the rest of the city. So increased capacity to ensure that we’re moving water up to the North Hill reservoir and beyond and looking towards growth in the city. This will improve our capability for pumping capacity in the future.”
Council approves bylaw for Elmwood golf course renovation loan:
Councillors approved a bylaw during the Aug. 28 meeting to amend the terms of financing for Elmwood’s golf course renovation loan.
The City entered into an agreement with the golf club in 2014 to provide financial assistance through a construction line of credit for major renovations at the golf course. This bylaw provides the details for the long-term financing arrangement that will allow Elmwood Golf Club to make repayments.
The City originally agreed to provide the golf club with $2.4 million in financial assistance, but due to unforeseen expenses during the golf course renovation the agreement was amended in 2016 to add another $500,000 to the line of credit. At the same time, the repayment terms were amended to allow the golf club to already start the repayment in July 2018 instead of July 2020.
Bylaw No. 12 of 2017 amends Bylaw No. 27 of 2014 to replace the sum of $2.9 million with the debt amount of $2,677,896.
The bylaw determines that the debt of $2,677,896 must be repaid over the period 2018 to 2047 at an interest rate of approximately 4.35 per cent. There will be annual payments of $142,423 and a final payment of $1,135,313 in 2047.
According to the bylaw the principal and interest on this debt will be repaid through third party payments from Elmwood Golf Club as well as sale of residential lots at the Cypress Point subdivision next to the golf course.

Read 810 times Last modified on Thursday, 07 September 2017 09:36
Matthew Liebenberg


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