TOWNSHIP OF ESQUIMALT STAFF REPORT
MEETING DATE: November 16, 2026 Report No. EPW-26-016
TO: Council
FROM: Charles Davie, Manager of Engineering
SUBJECT: Gosper Sewer Upgrades - Construction Contract Award
RECOMMENDATION:
Recommendation
That Council award construction contract ENG 26-04, including optional work and future change orders within the approved budget, to Alterra Construction Ltd. in the amount of $351,747, excluding GST, for Gosper Sewers Upgrades, as described in staff report EPW-26-016.
Body
EXECUTIVE SUMMARY:
The purpose of this report is to award a construction contract for the replacement of aging sanitary and storm sewer mains on Gosper Crescent. The work involves pipe bursting of a sanitary and storm sewer main, each approximately 127 metres in length, associated service reconnections, drainage improvements and surface restoration.
BACKGROUND:
The Township's sanitary and storm sewer networks contain aging infrastructure that requires replacement to maintain service reliability and reduce the risk of failures. The existing sanitary and storm sewer mains along Gosper Crescent consist of approximately 127 metres each of vitrified clay pipe. These mains have been identified for replacement due to their age and condition. To address these concerns, the Township retained McElhanney Ltd. to complete the detailed design, tender preparation and construction administration for the replacement of both mains.
The proposed works involve replacing the sanitary and storm main with new 200 mm diameter high-density polyethylene (HDPE) pipe using pipe bursting. Pipe bursting involves pulling a new pipe through the alignment of the existing sewer main while breaking apart and displacing the existing pipe. This method reduces the amount of excavation required compared to conventional open-cut construction, limiting impacts to the roadway, driveways and surrounding properties. The project also includes reconnecting existing sanitary and storm services, modifications to existing manholes and catch basins, and restoration of disturbed surfaces.
Tender
On September 23, 2026, the Township issued Invitation to Tender ENG 26-04 for the Gosper Sewers Upgrades. The tender closed on October 28, 2026.
The following is a summary of the two bids received:
Bidder Total Bid Amount (excludes GST)
Alterra Construction Ltd. $351,747
PW Trenchless Construction Inc. $547,680
Staff and the Township's consultant reviewed both submissions and determined that they meet the tender requirements. Alterra Construction Ltd. submitted the lowest bid at $351,747, excluding GST.
ANALYSIS:
Staff recommend awarding the contract to Alterra Construction Ltd. as the lowest compliant bidder. The scope of work is described in this report and shown in the design drawings included as Attachment 1.
The low bid is within the approved budget and allows for sufficient contingency during construction. McElhanney Ltd. completed reference checks and determined that Alterra Construction Ltd. has acceptable qualifications to undertake the project.
If awarded, construction is anticipated to begin in the second quarter (Q2) of 2027 to avoid potential weather-related challenges during the fall and winter of 2026/2027. Construction is expected to take approximately five weeks to complete.
Environmental Impact:
Replacing aging sanitary and storm mains will improve infrastructure reliability and support the Township’s efforts to manage inflow and infiltration and reduce cross-contamination. Pipe bursting is intended to minimize excavation and associated surface disturbance. The contractor must provide an Environmental Management Plan and complete archaeological awareness training before excavation, with procedures in place for any archaeological chance finds.
FINANCIAL IMPACT:
The 2026-2030 Financial Plan identifies the following budget for Sanitary Sewer Infrastructure Renewals in 2026:
• $2,545,883 - Sanitary Sewer Infrastructure Renewals (including carry-forward funding from 2025), funded through the Community Works Fund.
After accounting for current expenditures and outstanding commitments, including consultant fees and anticipated change orders, approximately $1,103,177 remains available within the approved capital budget.
The tender submitted by Alterra Construction Ltd. in the amount of $351,747.00, excluding GST, is within the available budget and will leave approximately $751,430 in remaining funding potential change orders and other outstanding projects.
OPTIONS:
1. That Council award construction contract ENG 26-04, including optional work and future change orders within the approved budget, to Alterra Construction Ltd. in the amount of $351,747, excluding GST, for Gosper Sewers Upgrades, as described in staff report EPW-26-016.
2. That Council request additional information from staff.
3. That Council provide alternate direction to staff.
COMMUNICATIONS/ENGAGEMENT:
Staff and the contractor will coordinate construction communications with affected residents. Advance notification will identify the anticipated work schedule, traffic and pedestrian impacts, driveway access requirements and any temporary service interruptions. The contractor must submit a Traffic Management Plan before receiving the Notice to Proceed.
TIMELINES & NEXT STEPS:
The next step in this project is the issuance of a Notice of Award, pending Council approval. Substantial Performance date is July 30, 2027.
REPORT REVIEWED BY:
1. Joel Clary, Director of Engineering & Public Works, Reviewed
2. Ian Irvine, Director of Finance, Reviewed
3. Deb Hopkins, Director of Corporate Services, Reviewed
4. Dan Horan, Chief Administrative Officer, Concurrence
LIST OF ATTACHMENTS:
Attachment 1 - Gosper Sewers Upgrades Contract Drawings