THUNDER BAY — City staff are seeking authorization for more than $670,000 in additional costs for a contract covering the final phases of a major reconstruction of Balmoral Street, though the work will still come in below the city’s initial estimate of $10 million.
The additional costs are necessary to cover significant additional electrical work, particularly at the Central Avenue and Balmoral Street intersection, and numerous additions to the contract including tree planting and storm and drainage work.
The additional work on the four-lane arterial roadway totals $872,420, bringing the total value of the contract to $8.97 million.
That will require the city to spend an additional $672,420, along with the $200,000 contingency that was already included in the contract.
Because the city had originally budgeted around $10 million for the project, based on a pre-tender estimate prepared by city engineers, the additional funds are available in the existing budget line set aside for the work.
The contract, originally valued around $8.2 million, was awarded to Bruno’s Contracting in June after weeks of delay while the city waited for the outcome of the federal-provincial Investing in Community Infrastructure Program (ICIP).
The city was ultimately successful in that application, receiving around $700,000 to support the addition of trails on both sides of the road.
The work is the last phase in a major reconstruction of Balmoral that started in 2016, beginning at William Street and advancing north. The entire project was originally supposed to take three years but faced various delays, including for budgetary reasons.
In addition to a full reconstruction of the roadway from Alloy Drive to Beverly Street, the latest phase of the work included adding storm sewers, street lighting, and the reconstruction of the Balmoral and Central intersection.
The $200,000 contingency amount included in the contract was well below the city’s typical 10 per cent benchmark. Staff said that was an oversight after the project’s scope was expanded during last year’s budget deliberations.
In a report, staff stated unforeseen electrical work at the Balmoral and Central intersection added around $320,000 in costs.
Workers encountered plugged electrical ducts, making it impossible to pull through new wiring, as well as “significant underground conflicts.” Staff said that required a full rebuild of the intersection and the use of taller poles and longer signal arms.
Additional “general civil work” in the contract accounted for another $350,000 in overages. That included tree planting, storm and drainage work, additional sidewalk, watermain lowering at conflict areas, retaining walls, signage, and permanent hydro poles access pads.
