City staff recommend Jake Jay Construction be awarded tender for Thomas Brook

City of Revelstoke Staff are recommending local contractor Jake Jay Construction be awarded the tender for the Thomas Brook water and sewer project.

Jake Jay Construction had the lowest tender bid at a total of $1.084 million. There were only two other bids received. Mountainside Earthworks of Salmon Arm came in with a bid of $1.1 million, while Trainor Mechanical Contractors of Nelson came in with a bid of $1.57 million. An engineer pre-tender estimate for the required work came in at $1.13 million.

In a report to city council, Mike Thomas, director of engineering, states the total construction cost is estimated to be $1.25 million. This is 24% higher than the estimated $1,008,000 that will be raised from the Local Area Service and Columbia Shuswap Regional District Gas Tax contribution approved by council. City staff are recommending council approve the use of Federal Community Gas Tax funds to make up the $242,000 shortfall.

The report said that currently there is approximately $900,000 in the current Gas Tax reserves, making it possible to put money towards the Thomas Brook project.

“It should be noted that it is not unusual for Local Area Service projects to be partially funded by general taxes or utility reserves,” said Thomas. “Gas Tax funds are an appropriate source of funds for this project that are not raised by property taxes or utility rates.”

Should council not approve the recommendation it would mean Thomas Brook residents would have to give approval for borrowing for the revised costs.

Revelstoke city council will discuss the recommendations at their council meeting this Tuesday.