Well-drilling bid is $50,000 over city’s planned budget

The city could be spending almost $50,000 more than it planned on a pilot project to develop new wells for the local water supply and to monitor the well program.

The city could be spending almost $50,000 more than it planned on a pilot project to develop new wells for the local water supply and to monitor the well program.

City administration is recommending council award the project to the only company to bid on the pilot project: SDS Drilling Inc.

SDS bid $230,400 for the project, which was originally estimated at $181,170, notes a report presented to council at its meeting last week.

More wells are being developed because the city has long-term plans to move away from using Schwatka Lake to avoid the high treatment costs in meeting the federal drinking water guidelines for surface water.

This year’s budget include plans for two new production wells.

“Prior to drilling the new large diameter production wells, smaller diameter pilot wells need to be drilled at the proposed well sites to determine the exact aquifer characteristics such that the production well contractor can order and install well screens to the length and sizes required,“ reads the report.

It notes the pilot project will see test wells drilled near the existing wells in the Selkirk well field and near the new Whistle Bend subdivision as part of the design and geothermal work being done. There will also be monitoring of groundwater near the Crestview and Whitehorse lagoons.

While the contract is more than the city had budgeted, the report also points out that SDS has stated mobilization costs could be reduced if there are additional drilling contractors in the territory that could do some of the work.

“The city is under discussions with drill contracts possible in Beaver Creek and Faro which will help reduce the high mobilization costs from Alberta,“ notes the report.

Along with the test wells, council members will also vote on a separate contract for two new wells in the south end of Riverdale.

With Encore Drilling as the only company to put a bid in on the work - again over-budget at $516,635 instead of the estimated $420,310 - it’s recommended that council approve the contract.

Funding for the project will come out of the federal gasoline tax revenue going to the municipality.