CANMORE – The Town of Canmore is looking to end its contract with Flatiron Constructors Canada Ltd. because the Cougar Creek flood mitigation project is two-and-a-half years behind schedule with an expected completion date of 2025.
Following an hour-long in camera session, Town council directed staff to begin negotiating for a without-cause end to the contract that may result in a settlement and release agreement.
“I believe this is the best way forward in order to have the project completed at the earliest possible opportunity,” said Canmore Mayor Sean Krausert after the in camera session where council received an update and legal advice.
Attempts by the Outlook to reach Flatiron were unsuccessful.
The decision follows the Town filing a notice of default against Flatiron late last year. That came after the Town and Flatiron began a formal dispute process with a referee hearing from both sides.
A response was expected early this year, but it was ultimately non-binding by either side.
There were roughly 12 facilitated sessions last spring, which resolved technical items but the larger item of the delay remained unsolved.
In a previous interview with the Outlook, the Town’s manager of engineering Andy Esarte said little work was completed in 2022, leaving the community risks as “unacceptably high.”
“This is a priority project. It’s protecting lives, property, critical facilities, CP tracks, the Trans-Canada Highway, key infrastructure,” he said last November.
“Time is of the essence and the Town will use all tools available to hold the contractor accountable for their obligations and see the project through to completion.”
The Town signed the contract with Flatiron June 23, 2020, but the project has seen significant delays in being completed.
The mitigation work was needed following the 2013 floods that led to millions of dollars in damage and the evacuation of Canmore residents. The CP railway tracks were nearly washed out and the Trans-Canada Highway was also cut off.
The Town has several flood mitigation projects ongoing or upcoming, but Cougar Creek remains the largest and most important due to its proximity to residents and businesses.
The low-level outlet is largely finished and some blasting and earth-moving has taken place on the spillway. The excavation of bedrock finished in 2021, though limited work on the main foundation and embankment structure has been completed.
The project was meant to be finished in 2021, with landscaping and reclamation finished in 2022. However, the completion date has continually been pushed back and is now estimated to be in 2025.
The design includes a 34-metre high embankment and a 20-metre wide spillway on the east abutment. Once completed, the work will reduce the peak flow of water.
The Lady MacDonald trail has been closed for the duration of work. Cougar Creek Canyon is tentatively planned to reopen later this year.
The province approved the mitigation project in 2020 for $48 million after the Natural Resources Conservation Board (NRCB) gave its stamp of approval in 2018 and the OK to a revised project application in 2019.
The former Alberta Environment and Parks ministry contributed $29 million, while $14.5 million came from the federal government, $4 million from the Town of Canmore and $1.37 million from Alberta Transportation.
The tender was awarded to Calgary-based Flatiron Constructors Canada Ltd. for $32.8 million in 2020 and several local sub-contractors are part of the project.
Flatiron has previously worked on the Glenmore Dam in Calgary, Kicking Horse Canyon near Golden, the Ruskin Dam near Mission, B.C. and the Red Deer interchange.
