Estevan Mercury 20180718

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Wednesday, July 18, 2018

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Issue 11

SERVING THE ENERGY CITY SINCE 1903

Mailing No. 10769 | Publication No. 40069240

King Street construction slowed Statements reflect positive by severe rain but on schedule financial picture By Brady Bateman

bbateman@estevanmercury.ca

By David Willberg dwillberg@estevanmercury.ca

The audited financial statements for 2017 for the City of Estevan were released at Monday night’s meeting of Estevan city council, and they show that the city made progress in a number of directions last year. Giselle Bourgeois and Ashley Rushton from MNP presented the document to council. Bourgeois reported that the city had $4.95 million in cash at the end of last year, up from the $2.68 million as of Dec. 31, 2016. Bourgeois said better management and monitoring of cash flows allowed the city to have more cash on hand. She suggested setting aside cash for catastrophes such as a flood or a large snowstorm. “So that’s a good thing to have,” Bourgeois said. When asked by Councillor Greg Hoffort regarding a suitable amount of cash for the city, Bourgeois said she believes the city has reached it. “I would suggest maybe putting some of that inside in some longer-term investments to plan for the longer-term infrastructure,” said Bourgeois. City manager Jeff Ward said that when he was hired as the city treasurer in 2013, the procedure was to “bud-

get to zero,” and the city had no money in the bank, which was a “frustrating” way to operate, particularly when emergencies occurred Ward would like to see the city’s cash reserve at between $4 million and $5 million each year. “A lot of that is timing,” said Ward. “There could be bills that come in at year-end that aren’t paid until January, because the bills don’t come until the new year.” As for whether the growing cash volumes would allow the city to not need a property tax increase each year, Ward said that would be a council decision. The city had a one per cent property tax increase this year. The city also saw its net debt – the difference between total financial assets versus liabilities – drop in 2017. The assets were at $12.87 million, while liabilities were at $35.50 million, for a net debt of $22.93 million. The net debt was $25.89 million at the end of the previous year. “That’s almost a $3 million decrease, which is nice to see,” said Bourgeois. Hoffort noted the debt remains the city’s No. 1 impediment to doing business, and almost every decision relates to the debt. Ward said he wasn’t A2 » COUNCIL

Recent heavy rainstorms have slowed construction along King Street but the City of Estevan still hopes to have the project completed by late July. Kiflom Weldeab, the engineer for the city, stated that crews have been hindered by the excessive moisture, as they have to allow time for the ground to dry before continuing any work on sub-grade and sub-base aspects of the King Street rehabilitation project. “We’re not sure what impact the rain will have,” said Weldeab. “There were around five days where we were unable to make progress due to the weather but we are still hoping to stay on schedule.” The construction runs along King Street from Pine Avenue to Kensington Avenue and originally began with an estimated completion time of six weeks. During the construction there is no through traffic access allowed on King Street with a detour route including Peterson Drive and Rooney Road for southbound traffic, and Henry Street from Spruce Drive to Bannatyne Avenue for northbound traffic. “We want to thank the public for their patience and understanding,” said Weldeab. “People are continuing to obey the rules

Construction continues along King Street. Photo by Brady Bateman and we just want to thank them for staying away from construction zones. We understand the inconvenience the construction has caused but the public has been very understanding.” The city also reminds the public that removing barricades in construction zones constitutes an offence under the Criminal Code and the Traffic Safety Act. Members of the Estevan Police Service continue to monitor the area and conduct enforcement of proper driving techniques in these areas. Anyone caught driving through

construction areas or removing safety barricades could face serious charges. The city plans to widen King Street to a “true four-lane” road, he said, with crews pushing the road out on the north side to match the size of the road on the west side with no narrowing. “The only problem we have had with the project so far is the rain,” said Weldeab. “If the weather stays the same it may push us back a bit. A little water isn’t going to hurt anything, but when you get a few inches several days in

a row it slows us down.” During the closure of King Street, the Estevan Shoppers Mall, Canadian Tire, Tim Hortons, Estevan Alliance Church, Midwest Surveys, Canada Capital Energy and Living Hope Church have no access from their properties onto King Street with access only through Peterson Drive. No Frills and Mobil Gas Bar currently have access only through Spruce Drive. This is the secondphase, in a three-phase project to continue improving King Street, with the third phase schedule to take place next summer.

Unit 3 at Boundary Dam remains offline It’s been more than a month since a powerful thunderstorm swept through Estevan and knocked Boundary Dam offline for several hours. While the other units at Boundary Dam are now operating again, Unit 3 is still offline. Unit 3 is the unit connected to the power station’s carbon capture and storage (CCS) facility. In its monthly update on the CCS facility at Boundary Dam that was released on July 10, SaskPower reiterated previous

statements that multiple transmission and distribution power lines and poles went down during the thunderstorm on June 14, which then tripped all four generating units at Boundary Dam. The damage to Units 4, 5 and 6 was less severe than Unit 3, and power to those units has now been restored, but Unit 3 suffered some damage and remains offline to inspect and repair equipment. In an email with the M e r c u r y, S a s k P o w e r spokesperson Jonathan

Tremblay said the storm did damage to a lot of individual turbine pieces, diaphragms and bearings. “The turbine has been dismantled so we could access individual pieces inside,” said Tremblay. “These parts require precision analysis and repairs so they have been transported to specialized workshops throughout Canada and the U.S. “Due to summer vacations, it’s taking a bit of time to get a spot in their work queue, but assessment is underway.”

Tr e m b l a y e x p e c t s SaskPower will have more information this week about what work needs to be done on the parts, and a timeline to return them to the power station. It’s very rare to see such extensive damage and such violent weather directly at a power plant, he said. The damage sustained to the other infrastructure, including the switching station, at and around the plant has also been repaired. SaskPower has also addressed dozens of

damaged poles and lines. When Unit 3 is offline, it means that the CCS facility is going to be offline. The CCS facility remains ready and available to resume capturing once the power unit is restored. Prior to the storm, the CCS facility had been online throughout the month, or 39.8 per cent of the time, and captured 21,586 tonnes of carbon dioxide in June, which represents 22.2 per cent of its maximum capacity for the month. The CCS facility remains ready and available

to resume capturing once the power unit is restored. The one-day peak for carbon dioxide captured at the CCS facility last month was 2,240 tonnes. A total of 2,190,624 tonnes of CO2 have been captured at Boundary Dam since the project went online in 2014. The outage at Unit 3 meant that the monthly average for power produced at the unit was around 45 megawatts, well below the average of 104 1/2 megawatts for the previous 12 months.


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Estevan Mercury 20180718 by Estevan Mercury - Issuu