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Proposed infrastructure improvements in Tunstall Bay water system
The Tunstall Bay Water System Local Advisory Committee (TBLAC) have requested a new treated water reservoir tank that provides adequate storage to support flows needed for fire protection. The new tank will also increase the water supply buffer resulting in a more resilient water system.
$760,000 was included in the 2021 Tunstall Bay Water System Budget for construction of a new reservoir tank.
Urban Systems was hired to complete the reservoir design, prepare tender documents, and provide pre-tender cost estimates. This work has now been completed, and $47,000 has been spent on the design phase.
On August 17th, 2021 Bowen Island Municipality posted the tender for the supply and installation of a new 595 m3 glass fused bolted steel tank, at the same site as the existing tank. The tender is scheduled to close on Sept 7th. The tender documents are posted on the Municipal website at https://www.bowenislandmunicipality.ca/rfps-and-tenders.
RECOMMENDED FINANCING APPROACH
The estimated construction cost for the new reservoir tank is $620,000.
There is currently about $270,000 in the Tunstall Bay Water System Capital Reserves. This is below the level that should be in place for the capital maintenance and replacement needs of the water system. Therefore, BIM staff recommend that the reservoir construction costs be fully financed with an Equipment Financing Loan through the Municipal Finance Authority of BC, which provides the best available rates.
A 60-month term loan of $620,000 would require monthly payments of approximately $10,580.
For the 135 properties on the Tunstall Bay Water System this would work out to approximately $950 per year per residence for 5 years.
Once the tender closes, the construction costs will be known with more certainty and the terms of the financing terms will be adjusted accordingly. The tender will not be awarded until the financing is secured.
The Tunstall Bay Water System Local Advisory Committee will meet via Zoom on Thursday, September 9, 2021 at 4:00pm to discuss this financing option for the purchase and installation of the reservoir tank. As most Committee meetings are, this meeting will be open to the public. You can watch it on Youtube or sign up for Public Comments and participate via Zoom.
To sign up for Public Comments, please email Stef Shortt at sshortt@bimbc.ca.
