Lac La Biche County Council has awarded a construction contract for Granular Course Base (GBC), Asphalt Concrete Pavement (ACP), and other work within the County subdivision of Young’s Beach.
On Tuesday, April 5, Brian Shapka, Associate CAO, Infrastructure Services Division presented to elected officials the information on the project.
Council approved the information and awarded the construction contract to Knelsen Sand & Gravel Ltd. in the amount of $4,002,755 plus GST.
Council also approved a $361,446 capital project budget transfer from Lac La Biche Shoreline Erosion to Young’s Beach Subdivision Base and Pave.
Mayor Paul Reutov raised a concern during the discussion that Council had on the project.
“Ultimately, what option do we have right now? I am concerned that we’re 10 percent over budget and we never even put a shovel in the ground yet,” Mayor Reutov said.
Associate CAO Shapka told the Mayor that fuel costs have increased recently. “It’s just the cost of oil has gone up 50 percent.”
As an approved Lac La Biche County 2022 Capital construction project, Youngs Beach Subdivision GBC, ACP, and other work were tendered and opened during the County Council meeting on March 22.
Upon a detailed review of tender documents excluding potential site occupancy days and reference checks, it has been determined that the lowest bid was provided by Knelsen Sand & Gravel Ltd. In total, five bid submissions were received.
“The total project cost including engineering fee, ten percent contingency, and the potential of early completion is $4,681,696 plus applicable taxes. The 2022 approved project budget of $4,320,250 will cover major construction and engineering fee with no construction contingency or early completion funding,” Shapka said.
County Council approved a project budget increase and reallocated $361,446 from the Lac La Biche Shoreline Erosion capital project.
Hamlet documents show that the Lac La Biche Shoreline Erosion project will likely be delayed due to environmental permit delays.
The motion was carried unanimously.