SASKATOON – The contract to build Saskatoon’s new civic operations centre has been awarded. Integrated Team Solutions (ITS) was announced as the successful bidder on Wednesday with a submission coming in $25 million under budget at $160 million.
“The city saved money at all levels,” said Jeff Jorgenson, the city’s general manager of transportation and 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.”
According to the city’s calculations, the public-private partnership (P3) model is expected to achieve a value for taxpayers dollars equivalent to $92.3-million when compared to a traditional design-bid-build approach that is 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,” said 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.”
It marks Saskatoon’s first public-private partnership.
The centre will be home to the new Saskatoon Transit operations facility. It will have room to store 224 buses and feature administrative offices, wash lanes and maintenance bays.
It will also be home to the city’s first snow management facility, with enough space to store up to one-million cubic metres of snow.
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ITS is a consortium comprised of EllisDon Capital, Fengate Capital, Kasian Architecture, EllisDon Corporation and Cofely Services. They will design, build, finance and maintain both facilities for 25 years with the city retaining full ownership throughout the term of the contract.
Construction of the centre on Valley Road is expected to begin this spring and be completed by late 2016.
With files from Joel Senick
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