The mid-May governance meeting had Trail council members reviewing bids and awarding contracts for major capital projects, including one that nears $500,000 to develop a parking area across from the Riverfront Centre.
As the lowest of two tenders, Hil-Tech Contracting clinched the job with a bid of $489,700.
As both submissions were over the $230,000 council set aside in the 2018 capital budget, Trail officials included a provision in their award for work on the undeveloped gravel lot.
Council has advised Hil-Tech that the city will only proceed to enter into a contract “on the mutual understanding and undertaking that the parties will review and negotiate the final price and scope and deal with amendments to the project through the normal change order process or, at the time, the final contract is signed.”
In other words, some aspects of the design will be cut, or deferred as the job progresses.
That said, council agreed to increase the capital budget to $395,000 for now, with additional funds to be transferred into capital revenue from reserves and more specifically, the dedicated reserve account for the Esplanade.
The motion was carried unanimously.
Developing the property will gain the city 36 spots for monthly passes and a handful of parallel parking stalls along the Esplanade. The project includes paving and stall markings, curbing and storm water connections, and the installation of tree planters as well as safety bollards.
In a report to council, Public Works Director Chris McIsaac noted, “A review of the tender pricing received from Hil‐Tech Contracting Limited indicates the potential for cost savings up to $149,000 if the project scope were amended to exclude the optional graphic thermoplastic paint markings, and exclude reinforcing the subgrade.”
Given the current monthly parking rates of $33, the lot will generate approximately $14,000 annually in fees, McIsaac stated.
“Justifying an investment of nearly $500,000 to construct the parking lot would be difficult; therefore, scope reductions should be considered.”