City to consider $10-million transfer for sewage project

The city could shell out another $10 million to ensure its south end sewage treatment plant upgrade is finally completed, citing fears a contractor could leave before the work is done.

Water and waste officials are seeking approval to transfer $10 million that was set aside for a separate major project to reduce combined sewer overflows and instead add the money to the south end upgrade budget, if city council approves.

A contractor told the city its staff will leave the south end work site by May 2, a city report notes.

The additional money would allow the city to hire others to get any outstanding work done, writes Cynthia Wiebe, manager of engineering services for Winnipeg water and waste, in the report.

“There is significant risk to the city if the contractor defaults on the contract and doesn’t complete the scope of work,” writes Wiebe.

Despite deeming the upgrade “almost complete,” the city doesn’t believe it can be finished by that date, even though the contractor expects to substantially do so, she notes.

In an interview, Wiebe deemed the funding as a “temporary” measure to cover immediate costs for additional consultant and contractor work, which the city expects to eventually reclaim.

“We think we will be able to recoup a lot of the cost but we just don’t have it right now,” she said, suggesting the money should be reimbursed under the terms of the existing contract.

The city is still working with the contractor to complete as much work as possible, said Wiebe.

The plant is meeting requirements to greatly reduce algae-promoting nutrients in its effluent but it’s not yet operating as well as it could, said Wiebe.

Hundreds of deficiencies must still be corrected, while the city is also waiting for outstanding reports, testing, manuals, drawings, cleanup and other work, the report notes.

“It’s working but it’s not optimized the way it should be… It just puts more strain and stress on the overall system so you may impact the overall lifespan,” said Wiebe.

The city plans to use money set aside for an up-to $2.3-billion combined sewer overflow reduction plan to fund the cost increase for now, noting a sewer separation project has come in $33 million under budget.

Coun. Ross Eadie, chairman of council’s water and waste committee, noted the south end sewage treatment plant upgrade has proven a challenge to complete.

“We’ve had trouble with this. I think it’s… years behind. We were supposed to be up and running (by now),” noted Eadie (Mynarski).

The councillor said he believes the contractor wants to leave to avoid losing money on the project. He said approving the $10-million transfer is a “must” for the city.

“I don’t see where we really have a choice. We don’t have anywhere else to find money,” said Eadie.

However, another city councillor fears the proposal risks delaying work to reduce combined sewer overflows and is urging the city to find the money elsewhere.

“I’m appalled by (it). We are 50 years behind schedule (on the city’s combined sewer overflow reduction plan)… (We’re) projecting to be done in the 2090s when we have a provincial deadline of the 2040s. (If) we’re under budget maybe we could pick up the pace… to actually try to meet the provincial deadline,” said Coun. Brian Mayes.

The province has set a 2045 deadline for the city to complete the combined sewer overflow reduction plan, while the city expects it won’t be done until 2095 if the municipal government funds it alone.

Combined sewer overflows occur in older Winnipeg sewers that collect both precipitation and wastewater in a single pipe. Heavy rain or snow events can cause such pipes to overflow into rivers.

“Why would we then take the money we do have in hand (to reduce this) and start trying to do other things with it? Let’s just admit that we have no desire to slow down the pumping of raw sewage into the river… Our actions do not make it look like we’re taking this seriously,” said Mayes (St. Vital).

Eadie said he was initially concerned about using money earmarked to reduce combined sewer overflows for another project. However, he said local industry doesn’t have the capacity to build more overflow projects within the next two years, on top of what’s already planned.

“Right now, the industry is not capable of taking on more (of that) work,” he said.

In 2012, the province expected the city to complete the entire south end sewage treatment plant upgrade by 2015, long before the current contract was even tendered.

That contract was initially due to finish in 2021, said Wiebe.

The city now hopes to complete the south end sewage treatment plant upgrade sometime this summer, she said.

Adding $10 million would raise the upgrade’s price to $385.6 million.

joyanne.pursaga@freepress.mb.ca

X: @joyanne_pursaga