More than a decade of work toward a new City Works Building that had been approved for funding in the City鈥檚 most recent budget, came to naught at the regular meeting of Yorkton Council.
After one of the lengthiest discussions on any item before open Council in years, the plan put forward was voted down, with Mayor Bob Maloney, and Councillors Randy Goulden and Aaron Kienle voting to move forward with the long-awaited project and the rest of Council sitting opposed.
A new Public Works building has been discussed for years, but the need was made immediate in July 2019, when Council was informed of the results of a Human Health Risk Assessment conducted at the Public Works building located at 85 York Road East.
鈥淭he assessment included an indoor air quality investigation which identified the presence of hydrocarbon vapors exceeding allowable government regulated limits,鈥� explained Trent Mandzuk 鈥� Director of Public Works with the City at Monday鈥檚 meeting.
鈥淚n efforts to mitigate risk of exposure to hazardous vapors, department operations have been temporarily relocated to alternate locations.
鈥淔leet Services has moved to 350 Sixth Avenue North and Public Works will soon operate from construction trailers situated at the City鈥檚 stockpile site located on Fourth Avenue North.鈥�
Mandzuk noted further testing has been requested at the Parks Department Building, and there is a strong possibility of similar contamination being found.
In December, 2019 Council directed Administration to proceed to tender the City Operations Center project inclusive of the Main Building, Fleet and Cold Storage Building and all required site works.
鈥淭he City retained the services of Collier鈥檚 Project Leaders to review the tender documents prior to advertising the project. The purpose for the review was to identify inconsistencies and areas of possible contention in the tender documents,鈥� said Mandzuk.
Councillor Darcy Zaharia who ultimately sat opposed to the project said safety of workers was important and that he believed that was how everyone on Council feels.
But, Zaharia said his opposition revolved around the scope of the overall project, and the resulting cost. He added he felt as if City Administration was pushing the 鈥渁ll in or nothing鈥� proposal without offering possible alternatives, such as renting or buying existing buildings in the city.
Coun. Ken Chyz also cited using existing buildings, even suggesting the old SGI building, adding he was 鈥渘ot in favour of the scope鈥� of the project as presented.
Maloney said he trusted what was presented.
鈥淚 trust that they鈥檝e done their due diligence,鈥� he said.
Coun. Randy Goulden said while they are unprecedented times with COVID-19 history shows government can do little but invest to stimulate economies, and the public works building would do that.
In the case of the project, Goulden said when you consider rental fees on current replacement space, the low interest rate savings, and other cost savings 鈥渘ow is the time to do this project.鈥�
Zaharia was not convinced.
鈥淚鈥檓 against the project as it is,鈥� he reiterated.
Coun. Mitch Hippsley, who also ended up opposed said, 鈥渨e need a proper public works building. It鈥檚 unfortunate it鈥檚 gone so long.鈥�
Coun. Aaron Kienle said in terms of scope and building needs, he had to follow the recommendation of City Administration and hired consultants.
鈥淚鈥檓 not a contractor ... What do I know about the cost of buildings, or the needs of this building?鈥� he stated, adding ultimately 鈥�... I believe this is the building they need. I think we have to consider having the building built...
鈥淭he project is long overdue and we need to do something about it.鈥�
On February 4, 2020 the project was advertised with Sask Tenders, Regina Construction Association and Saskatoon Construction Association.聽 The initial tender period was four weeks however a one week extension was provided.聽 A private opening was held at Stantec鈥檚 Regina office on March 10.
鈥淭en General contractors from Saskatchewan submitted tender packages.聽 With exception of the highest bid, tender prices were within approximately 10 percent of each other. This is an indication of very competitive bids and good pricing,鈥� said Mandzuk.
Mayor Bob Maloney said it was time to move forward, adding 鈥渄iscussion began a decade ago,鈥� on the need for the facility.
鈥淚t鈥檚 not a want. It鈥檚 a need. It鈥檚 a need now,鈥� he said.
Maloney also argued against existing buildings being a solution.
鈥淚 don鈥檛 agree you can fix it by buying an old building,鈥� he said. 鈥淵ou don鈥檛 end up with a building to meet the needs of your community.鈥�
With regards to the funding of large capital projects such as the City Operations Center and Fleet Storage Building, a long-term planning approach is required.聽 In order to fund a project such as this, without a special levy on taxes, years of preparation and planning are required, explained Ashley Stradeski, Director of Finance, with the City.
鈥淎dministration has known about the need for this building for nearly a decade, and as such has been taking measures over the years to provide funding for this without a burden to the taxpayers of a new levy or one-time increase to taxes,鈥� he noted.
鈥淭hrough years of capital planning, budgeted capital increases, and savings, the City has the funding in place to cover the debt payments for this project without any additional increase in taxation.
Zaharia said while no new tax dollars were requited for the outlined project if the City undertook another major project it would require a tax hike.
Stradeski said there are several major projects that are nearing the end of payment terms including the Fire Hall, and it is typical 鈥渢o kind of line them up,鈥� so new projects that would require new dollars would happen as older projects are cleared from the books.
Again Maloney saw it differently.
鈥淚 think we do have a good deal before us,鈥� he said.
The Yorkton Chamber of Commerce were certainly on-side with the project.
To聽cancel聽that聽project聽now,聽would聽damage聽the聽credibility聽of聽the聽city聽in聽its聽commitment聽to聽capital聽project, stated a letter from the Chamber circulated to Council Monday.
鈥淚t would聽also聽mean聽that聽there聽would聽be聽no聽influx聽of聽construction聽employees聽which would聽impact聽hotels聽and聽restaurants,鈥� said Chamber president Mike Stackhouse in a presentation to Council Monday.
鈥溌燜urthermore,聽the聽construction聽of聽the聽Civic聽Operations聽Building聽will聽 mean聽that聽many聽local聽businesses聽will聽have聽the聽potential聽to聽become聽subcontractors聽in聽this聽project聽as聽 electrical,聽plumbing,聽flooring,聽painting,聽things of that nature will聽all聽be聽required . . .
鈥淢ayor Maloney and Councillors, the Yorkton Chamber of Commerce strongly urges you to continue to provide visionary leadership to our community not only today but for the next few years; and to continue your commitment to these infrastructure projects which will provide economic stimulus for the city. Proceeding with these projects, which are so important, will provide much needed optimism and confidence to the business community.鈥�
Hippsley said he holds the opinion of the Chamber 鈥渋n high regard鈥� but did not heed their advice Monday.
Maloney said Council needs to show leadership on such things, adding he was 鈥減repared to do that.鈥�
The bids contained are under budget for this project with room to spare, with planned borrowing of $14,000,000 previously identified being more than enough to cover the project in combination with our reserves, said Stradeski.
Stradeski also noted interest rates are at present very favourable.
With this project requiring borrowing, there has not been a better time to obtain financing.聽 The Bank of Canada has recently lowered interest rates by half a percent in response to the Covid-19 pandemic, and it is expected to lower it further.聽 The United States has lowered theirs by a full one percent, he explained.
鈥淥n a project of this size, a one percent decrease in interest rates, over a 20 year mortgage loan of $14,000,000, would have a net impact of reducing our total cost of financing by $1.8 million over the payment term,鈥� he said.
A report to Council noted; Site work on both parcels of land account for over $4,000,000 of the total project costs. Demolition and removal of contaminated soil is included in the total bid price. The tipping fees at the landfill are extra and this could add $800,000 to the total price, but also provides added revenue to the landfill.
The administrative report also stated; 鈥淭he project has been on the docket for almost a decade and has been refined multiple times over the last four years. While one may be concerned about the timing of these bids, given the uncertainty because of the coronavirus (COVID-19), we are confident that the project would unfold as planned given the capability of the successful general contractor. Further, this is the best pricing we could have hoped for. It has been proven, particularly on large projects that require significant resources including multiple requests on pricing from many sub-trades, that if the same project is tendered at a later date, less contractors are interested (fewer bidders) and the price is almost always higher.鈥�
Coun. Quinn Haider questioned 鈥渋f the vote doesn鈥檛 pass, is there a plan 鈥楤鈥�?鈥�
Mandzuk said given that the presented plan was a decade in the making there was no alternate plan but the fragmented housing of services being used as a new building was planned.
