CITY AWARDS CIVIC OPERATIONS CENTRE CONTRACT $25M UNDER BUDGET

The City of Saskatoon has awarded the contract for the new Civic Operations Centre (COC) to Integrated Team Solutions (ITS), establishing the City’s first Public-Private Partnership (P3).

“The procurement process was highly competitive and the savings were even greater than we anticipated,” says Jeff Jorgenson, General Manager of Transportation & Utilities. “The City budgeted $185 million for capital and maintenance/operating costs over 25 years; the submission from ITS came in $25 million under budget at $160 million. In addition, the Federal Government will also contribute approximately $38.5 million to the project through the P3 Canada Fund.”

The COC will be developed in phases, co-locating the new Saskatoon Transit Operations Facility and the City’s first Snow Management Facility. The new site located in Saskatoon’s southwest quadrant, will provide direct access to Circle Drive South Bridge which will allow the City to move equipment, materials and vehicles more efficiently around the city.

The facility will have room to store 224 City buses with capacity for future fleet growth. Among the features will be administrative offices, fare collection, fueling, wash lanes, maintenance bays and inspections pits. Relocating Saskatoon Transit from Caswell Hill removes an industrial use from a residential neighbourhood. The Snow Management Facility will have the capacity to store up to 1 million cubic metres of snow and will feature a meltwater collection site where the environmental safety of meltwater can be monitored prior to release into the storm sewer system. The COC also allows for the addition of other civic departments and services in the future.

ITS, a consortium comprised of EllisDon Capital Inc., Fengate Capital, Kasian Architecture, EllisDon Corporation and Cofely Services Inc., will design, build, finance and maintain both facilities at the COC for 25 years. At all times, the City retains full ownership of both facilities and will continue to operate day-to-day activities.

“ITS is excited to be partnering with the City of Saskatoon to design, build, finance, operate and maintain the new Civic Operations Centre,” said Danny Giacomel, ITS representative.  We are committed to delivering the Transit Operations Facility and the Snow Management Facility on time and on budget and then providing seamless operations and maintenance of these first class facilities for the 25 year contract term.”

Mayor Donald Atchison commented, “I want to thank Prime Minister Harper and the Federal Government for their commitment to our strong and diverse economy; this operations centre will ensure civic services keep pace with our prospering city over the next 25 years.” Mayor Atchison continued, “The facility will create jobs and contribute to the continued rejuvenation of the Caswell Hill neighbourhood.”

Value for Money calculations show the P3 model is expected to achieve value for taxpayer dollars equivalent to $92.3 million when compared to the traditional “Design-Bid-Build” approach typically used by the City.

“Another benefit of the P3 is that the agreement between the City and ITS is a fixed price contract so the project will not go over budget; the responsibility of any cost overruns rests with ITS,” says Jorgenson. “ITS is also responsible and accountable for ensuring the facilities are maintained and rehabilitated over the life of the agreement, otherwise the City’s annual payments will be reduced or withheld. The risk rests with ITS and not the City.”

Construction is expected to start in Spring 2015 and is due to be completed by late 2016 with Saskatoon Transit moving in, and the Snow Management Facility operational by January 2017.

For more City of Saskatoon Public Service Announcements, News Releases, Traffic Detours and Service Alerts, visit www.saskatoon.ca or connect with the City of Saskatoon on Twitter and Facebook.