MOOSE JAW — A revision of project priorities and increased construction costs mean city hall will spend almost $300,000 more than budgeted to build extra office space at the city complex on High Street West.
During its Aug. 25 regular meeting, city council voted unanimously to approve the transfer of $280,000 from the city complex mechanical and building upgrades project to the city complex office renovations project.
The city had planned to spend $383,975 on the upgrades project and $212,417 on the renovations project, a council report said. However, the transfer of $280,000 from one to the other means the budget for the former will now be $103,975, while the budget for the latter will be $492,417.
“This transfer will enable the award and timely completion of the renovation project (this year), which addresses urgent space needs created by recent staffing changes,” the report stated.
The report noted that the city wanted to upgrade five components at the city complex, but after multiple unsuccessful tenders — over two years — due to compliance issues, tariffs and lack of bids, the organization decided to pursue just the boiler replacement this year for $72,030.
The boiler is the highest-risk mechanical component of the five items and could fail before council approves the 2026 budget, so enhancing it will ensure the administration areas can continue to receive heat, the report stated.
The city will re-tender the remaining mechanical work next year, with an anticipated additional budget requirement of $286,000.
Administration told council that whatever money remains from the boiler project will be carried forward to support other maintenance projects.
Meanwhile, recent staff restructuring and growth in operational functions at the complex have created an urgent need for extra functional office space, the report said. Existing areas are at capacity, which limits the venue’s ability to accommodate new staff and creates inefficiencies in workflow and collaboration.
The report noted that the renovation project will:
- Connect a new prefabricated skid in the southeast corner, providing a modern, purpose-built workspace
- Relocate the boardroom to create an open workstation area that enables teams to work closer to each other and improve communication
- Construct a dedicated office for certain staff within the warehouse and improve oversight of inventory and co-ordination with operations
- Optimize underused floor space, improve accessibility and reduce operational disruptions that the cramped work environments create
“These changes will result in improved staff efficiency, enhanced service delivery and better alignment of workspace with operational needs,” the document stated.
Pursuing the renovation project this year allows the municipality to avoid additional costs due to inflation and rising construction prices, avoid extra storage costs, minimize disruptions to workspaces, and transition staff into the new work area during the winter when operational demands are lower, said the report.
The report noted that the renovation project tender closed in July, with the lowest bid received of $350,425 “significantly exceeding” the consultant’s estimate of $215,000, the document continued.
The city had anticipated awarding the upgrade project to the lowest bidder on July 29, with an expected completion date of Dec. 31, but because of the required budget transfer, officials will award the contract on Sept. 1 and expect the contractor to complete the project by February 2026, the report said.
The approaching winter season creates a moderate-to-high risk to the project’s completion schedule since cold weather can delay or increase costs for foundation work, the document continued.
Further delays to awarding the contract could also affect the availability of contractors and lead times for materials, which could push the completion into the late spring of 2026, the report added. Proceeding with the transfer of money now minimizes these risks by allowing the contractor to mobilize before freeze-up.
“I know that these are necessary upgrades and renos,” said Coun. Heather Eby. “Any of us who have toured the complex know that it is in need, probably more than what this is actually going to address.”
The next regular council meeting is Monday, Sept. 8.
