River Landing woes continue; 19th Street redevelopment costs soar, 2nd Avenue extension & reconstruction of Saunders Place 21-months behind schedule
And the hits just keep coming.
At its August 13, 2007, meeting
According to a report from city manager Phil Richards the City received only one bid for $9.1 million from Graham Construction – 60% higher than the $5.7 million estimate at the time the tender was issued in June 2007. This is 82% higher than the project’s December 2006 estimate of $5 million including soft costs.
A “heated construction market and the incredible demand for subcontractors and materials” are among the factors that caused the price to skyrocket.
The project involves the removal of the
The report also noted that the contractor indicated that they would not be able to meet either a fall 2007 or summer 2008 completion date and, instead, offered a fall 2008 competition.
Council voted to have city administration re-examine certain elements of the design and re-tender it in the fall hoping for a better price.
This comes on the heels of last month’s announcement by the City that the construction of the Shaw Centre Phase II Olympic-sized pool in the Blairmore Multi-District Park/School Site has exceeded its budget again – this time by $8.08 million.
A community services department report on the matter was tabled at a special meeting of city council on July 20, 2007. Since the report was not available ahead of time the public had no opportunity to speak to it.
According to the report the tender bid price submitted by PCL Construction Management Inc. “is 23 percent over the budget estimate reported to City Council on May 28, 2007 ($29,644,100), resulting in a shortfall of $7,833,014. The current project has a remaining contingency of $750,000. With a project of this magnitude, your administration would prefer to have a contingency closer to $1 million. This would result in an additional funding request of $250,000 to the project for an overall funding shortfall of $8,083,014.”
Cost increases were attributed to “areas where single bid prices were received including piling, metal steel deck, metal wall panels and roofing, and electrical. Other areas of significant increase where more than one bid was received are mechanical, reinforcing steel and the high performance south-facing wall. An increase cost for the construction of Phase II has also caused an increase to the design fees paid to the architect.”
City council voted to award a contract to PCL Construction Management Inc. for the construction of the Competitive Aquatic Centre Phase II, at a cost of $36,453,400 (the stainless steel basin and accessories are included in this cost) including P.S.T. and G.S.T.
Council also gave administration the go ahead to borrow $5-million over 15 years with annual payments of $500,000 to cover a portion of the shortfall. The rest will be picked up by shifting other monies around. The debt payments will be funded “directly from mill rate increases in 2008 and 2009 at $250,000 per year.”
The Blairmore is one of several major projects that city council rammed through during Don Atchison’s first term as mayor. The current council has unfortunately been left to deal with the fallout.
The City currently has a number of other large capital projects underway. It’s unclear whether any of them are running into similar budget problems.
Of particular interest are the planned extension of
A timeline for the two projects show that:
1) At its November 15, 2004, meeting City Council considered city manager report F5 - EOI/RFP Process for River Landing Parcel “Y”. The Expressions of Interest states: “New roads and sidewalks include the extension to
2) At its March 7, 2005, meeting City Council considered city manager report F2 - Expressions of Interest Selection and Request for Proposals for River Landing Parcel “Y”. The RFP states: “New roads and sidewalks include the extension to
3) At its March 7, 2005, meeting City Council received the City of
4) The River Landing Update! Spring-Summer Edition 2006 states: “The extension of
5) The Request for Proposals River Landing Gathercole Arches Installation (February 28, 2007) states: “The street development of
[It should be noted that Remai’s project did not seem to get past the design phase nor had any excavation of the site taken place. It’s not clear whether any building permits were applied for let alone issued. The project still required final approval by City Council and the Meewasin Valley Authority. Any yet Mayor Don Atchison was “surprised” when Remai pulled the plug on their spa hotel development in February 2007.]
6) At its April 16, 2007, meeting City Council considered city manager report F3 - River Landing Design/Construction Update that states: “The extension of
7) The City of
As of August 15, 2007, it appears that construction of the extension of