COLD LAKE - Cold Lake council approved an amendment to the 2024 Capital Budget, allocating an additional $4 million from unrestricted surplus to the Lakeshore Drive Phase 1B Project. This decision increases the 2024 Capital Budget from $12,186,000 to $16,186,000, to support the extensive infrastructure work planned for the area.
At the May 14 regular council meeting CAO Kevin Nagoya provided insights into the project's scope and budget requirements.
The first phase was the installation of a sea wall. “The wall is a component that will be coming to completion soon,” said Nagoya.
The second phase deals with a list of other items. “The civil component, being the water, sewer, road, and landscaping, has been tendered and there are budget requirements, because it is going to be a two-year project," explained the CAO.
"Phase 1B is what we called it. Phase 1A being the wall, as we split it out to try to save money because we had people trying to carry each other in a contract. The wall was separated and created as a Phase 1A project and then a Phase 1B being the civil component. We did get very competitive bids.”
Nagoya further emphasized the competitiveness of the bids received.
"It was considerably competitive. We do have to solidify budgets. Council recalls us clearing restricted surplus at your council meeting a few meetings ago in preparation for this."
Regarding budget allocation, Nagoya noted, "We do have to have budget that is part of the 2024 budget, and then you also have to have some budget for the 2025 budget so that way you have the total cost to be established.”
Administration recommended council approve taking from restricted surplus for 2024, then passing an interim 2025 capital budget securing $3.25 million for the Lakeshore Drive Phase B project.
"So we know that cash flow will have to occur next year."
Coun. Vicki Lefebvre inquired about the overall cost of the project. "Someone asked me the other day and I couldn't remember the actual total we thought it was going to cost us for the full project, because we have to do all the underground and rebating and all that kind of stuff."
Nagoya responded succinctly, "$25 million."
Mayor Craig Copeland raised a question about the project's staging and completion timeline.
“Are the undergrounds - the road work, whatever - are they doing in stages, or will they open up the entire run? It says here they might be able to get 60 per cent of the project completed this year, which I thought was kind of very optimistic."
Nagoya confirmed the extensive nature of the work.
“Yes, they are going to dig up a considerable amount. They are going to go at it pretty hard. If we, I should say, make them do block by block, and you're putting things back, it's just the cost will be astronomical. You kind of have to have a progression of all the materials coming in and whatnot. So, the residents in the area do have to be ready for an 18-month project here. It won't be done until next summer.”
According to the executive summary provided in the council agenda, the tenders for Phase 1B of the Lakeshore Drive Project closed on April 8, 2024, with the lowest bid coming in at $12.65 million. The project includes deep underground utilities, road surface reconstruction, landscaping, and beautification work. With the approval of the additional $4 million, the City aims to ensure the continuation of construction activities and the timely completion of Phase 1B.
