TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: May 25, 2026 Report No. EPW-26-004
TO: Council
FROM: Joel Clary, Director of Engineering & Public Works
SUBJECT: E&N Storm Sewer Replacement - Contract Award
RECOMMENDATION:
Recommendation
That Council award a construction contract to Allterra Construction Ltd. for $285,726 (excluding GST) and future change orders, within the approved budget funded from the Storm Sewer Infrastructure and Sanitary Sewer Infrastructure Programs, to replace a storm sewer main that crosses underneath the E&N Railway, as described in Staff Report EPW-26-004.
Body
EXECUTIVE SUMMARY:
The purpose of this report is to award a construction contract to replace a failed section of the storm sewer main that starts behind 857 Admirals Road and crosses underneath the E&N Railway, where it has failed, and terminates on the Esquimalt Graving Dock property. The failed main was identified following flooding during the rain events in December 2025 and January 2026.
BACKGROUND:
The Township’s storm sewer network consists of 64km of gravity mains with 58 outfalls. Each outfall has a corresponding catchment. The catchment that provides drainage for a majority of the Parklands Neighborhood utilizes an outfall that travels underneath the E&N Railway and through the Esquimalt Graving Dock. For reference, the catchment is shown in bright blue (cyan) in the below image.
Following heavy rain events in December 2025 and January 2026, the storm sewer main that flows under the E&N Railway within this catchment failed, causing flooding in the area. The main failure occurred underneath the E&N Railway where the main is up to 7m below the surface. Due to these complexities, it is not feasible to expose the main and make an emergency repair.
When the main failed, Public Works initially managed the flow of water through contractor vacuum trucks and a nearby catchbasin that had a separate outlet with very limited capacity. In addition, Public Works installed sandbags around the adjacent property for additional protection in case of future floods. Public Works then rented two 8” pumps that can each pump up to 200L/s. Following coordination and approvals from the Capital Regional District (CRD) and Island Corridor Foundation (ICF), the pumps were installed on the Admirals Road side of the E&N Railway, along with bypass pipes across the E&N Railway connecting back into the existing network on the Esquimalt Graving Dock side. These pumps are still in place.
To provide a long-term solution, the Township hired Kerr Wood Leidal Associates Ltd (KWL) as a consultant to explore replacement options and complete a detailed design. After the completion and analysis of borehole samples, it was determined that guided horizontal auger boring is the best design option, as it limits the scope of excavation to each side of the railway and allows the use of shorter segments of pipe to be pushed underneath the railway while maintaining ground stability and minimizing disruption to the surface. This method is commonly used to avoid open-cut excavations, which due to the depth of the main in this case, is not a feasible option. For reference, the design drawings can be found in Attachment 1.
On April 9, 2026, a tender was posted for the sewer main replacement under the E&N Railway. The Tender closed on May 6, 2026. The following is a summary of the four bids received:
Bidder Total Bid Amount (excludes GST)
Allterra Construction Ltd. $ 285,726
Northridge Excavating Ltd. $ 373,520
Milestone Equipment Contracting Inc. $ 399,522
Don Mann Excavating Ltd. $ 457,731
These tenders were based on MMCD Contracts, which permit the Township to change the quantities if the quantity change is 15% or less. Any change beyond 15% requires approval from the contractor and is subject to unit rate changes.
ANALYSIS:
Staff recommend awarding the contract to the low-bidder Allterra Construction Ltd. for $285,726 (excluding GST). This number is below the Class B estimate provided by KWL of $321,535, excluding contingency. Further, receiving four bids on a specialized project like this reflects a highly competitive process, from staff’s perspective.
If the contract is awarded, construction would occur during the summer months. Further coordination will be required with ICF, Esquimalt Graving Dock, and CRD; however, discussions on this project have been ongoing.
Environmental Impact:
With the increase in intensity, duration, and frequency of rain events due to climate change, the existing storm sewer main will be upgraded to a larger diameter pipe to ensure adequate capacity. This need was confirmed through the ongoing updates to the Township’s storm sewer model as part of the Storm Sewer Asset Management Plan project.
OPTIONS:
1. That Council award a construction contract to Allterra Construction Ltd. for $285,726 (excluding GST) and future change orders, within the approved budget funded from the Storm Sewer Infrastructure and Sanitary Sewer Infrastructure Programs, to replace a storm sewer main that crosses underneath the E&N Railway, as described in Staff Report EPW-26-004.
2. That Council request additional information from staff.
3. That Council provide alternate direction to staff)
COUNCIL PRIORITY:
Good Governance & Organizational Excellence
FINANCIAL IMPACT:
The 2026-2030 Financial Plan identifies the following budget for storm sewer renewals in 2026:
- $100,000 for Storm Sewer Infrastructure Renewals
- $50,000 for Storm Drain Replacements
As the replacement of this storm sewer main was not planned, the full budget amount is not identified in this plan. With the development of the Storm Sewer Asset Management Plan, the intent of the Storm Sewer Infrastructure Renewals program is to grow the program over time. By 2030, the Financial Plan identifies $1,000,000 in this program and will be dependent on the results in the final asset management plan. For 2026, staff recommend using the full $100,000 planned for this project to replace the main underneath the E&N Railway.
The $50,000 for Storm Drain Replacements identified above is a historic program that is available in the event of smaller repairs that may be needed throughout the year. Staff recommend not utilizing this funding as it may be needed for other repairs throughout the year.
To fund the remainder of the project, staff recommend prioritizing funding that is identified in the 2026-2030 Financial Plan for Sanitary Sewer Infrastructure Renewals, which in 2026 is:
- $2,878,883 (note: this includes carry forward amounts from 2025)
The program is not fully assigned for the year, although there are projects in the queue, including replacing sewers on Gosper Crescent and sewer renewals as part of the Turf Field grant application at Esquimalt High School. As the results of the Turf Field grant application have not been determined, this project is still on hold and is unlikely to utilize the remaining sewer funding available in 2026. As such, staff recommend utilizing $100,000 from Storm Sewer Infrastructure Renewals and the remaining $185,726 from the Sanitary Sewer Infrastructure Renewals program to fund the project underneath the E&N Railway. All additional costs, including consultant fees, pumping costs, and change orders will be funded from the Sanitary Sewer Infrastructure Renewals project. These additional costs are expected to be around $150,000, at this time.
COMMUNICATIONS/ENGAGEMENT:
Communications during construction will be managed by staff and the contractor. Of particular importance will be any necessary detour of the E&N Rail Trail during construction. CRD requires an All Ages and Abilities detour to be in place in the event of a detour and adequate notice to be posted well in advance of the closure.
TIMELINES & NEXT STEPS:
The next step if Council awards the project is to issue a Notice of Award to the contractor. In the meantime, coordination with CRD, ICF and Esquimalt Graving Dock will continue on an ongoing basis.
REPORT REVIEWED BY:
1. Ian Irvine, Director of Finance, Reviewed
2. Deb Hopkins, Director of Corporate Services, Reviewed
3. Dan Horan, Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
1. Attachment 1 - Design Drawings