Two press releases have come out in the past two days related to gravel pit issue. I think we owe ourselves and in particular Sheldon and Charles for moving the yardsticks last year. I am convinced today that had we not pushed the issue as we did we would not be reading this news today! The only question we may have to fend off is the reaction from construction industry re: scales and monitoring of loads?

Somehow, at our AGM this should be one of the highlights of this boards achievements in 06/07!!

While I have your attention, agenda for January 16th board meeting at the Frobisher Inn at 12:00 noon is being drafted. If you have any items you wish to add, please forward to me no later than noon on Monday! Minutes of last meeting will also be circulated at that time.

CBC radio newscast yesterday:

City hires consultants to develop interim quarry management plan

The City of Iqaluit has hired consultants to develop a quarry management plan for the interim trail area gravel deposit. It's located northwest of upper base. The municipality is under pressure to make sure that there's a source of gravel for this year's construction season. The city also needs to establish how contractors will pay for the material. Jeff Baker is the city's manager of engineering. Baker says a proposal submitted by Tro Associates (sp) is superior to one from Concentric Associates – the only other bidder. But the Tro bid is $30,000 higher. That troubled some of the city councilors. But Mayor Elisapee Sheutiapik says there's a lot at stake.

“Thirty thousand is nothing compared to what we could lose if we don't get these, the gravel to do the projects because we're losing out on the taxes.”

In the end, council voted to give the $58,000 contract to Tro Associates. Jim Little was the only councilor who voted against the motion. The city hopes to have the quarry operational by June.

Nunatsiaq News Today!

January 12, 2007
City to ditch honour system in gravel sales

DAN BENOIT

Iqaluit city council this week approved the building of a scale for its gravel quarries, a project the city said will save them thousands of dollars a year in lost revenue.

The approval was made at Iqaluit’s regular council meeting Jan. 9.

The scale will keep track of the amount of gravel coming out of the pit.

The city charges $4.75 a cubic metre for its gravel, with between 80,000 to 100,000 cubic metres removed from the quarry each year, acting director of engineering Geoff Baker told council.

Contractors now use the honour system when they pay the city for the gravel they use.

“We really have no way of knowing if a contractor is using the amount he said he did,” Baker said. “Right now, I would say the city is losing significant revenues on gravel.”

The city received submissions from Trow and Associates and Concentric Associates International.

After a formal review of the proposal, the city recommended awarding the contract to Trow and Associates for their proposal of $58,310 plus GST. Concentric’s proposal was $29,560 plus GST.

The city hopes to have the quarry up and running by June 2007, Baker said. “I’d like to stress this is a very time sensitive project.”

Jim Little he’d prefer the job to go Concentric, who made a proposal at half the price.

“I can’t in good conscience, representing the taxpayers of the city, go with Trow.”

But Trow scored higher in an evaluation done by city staff on the two proposals, so Baker said he thinks the city will get a better quality product from them.

“When it comes to engineering contracts, cost is not the deciding factor for me. Trow submitted a much better proposal. Trow, by far, seemed more capable to complete this project,” he said, adding he doubts Concentric could complete the project for $29,000.

Glenn Williams said the money for the project isn’t tax revenue.

“It’s from the gravel fund. This is the same fund we’re going to use to expand the road to the big pit.”

Williams said the city has experience with some engineering companies not delivering in the past.

“I don’t want us to be in a position like we were last year, putting $71 million of projects in jeopardy because we didn’t have granular material.”

Arguing over the price of the project is going to hurt them in the end, he said. “If you want to low-ball it, you’re going to get low-ball.”

Al Hayward said the $30,000 extra for Trow is just a drop in the bucket when you look at what could be lost in taxes and revenue.

“I think the city of Iqaluit has lost a considerable amount of money from the gravel source. There’ll never be a real number without some kind of monitoring in place,” Hayward said.

The city should be able to double the amount of revenue at the very least with the scale, he said.

“We’re missing out, big time.”

All voted in favour of the plan, with the exception of Little, who opposed it.

Don Sinclaire-Chenier, GM

Nunastar Properties Inc.

P.O. Box 4208 ,

Iqaluit , Nunavut

X0A 0H0

Ph: (867) 979-5558

Fax: (867) 979-6604

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