The Mark Creek Flume Rehab project is $163,689 over budget, and that’s not terrible, says Mayor Don McCormick.
The cost overruns have nothing to do with the additional funds CopCan is seeking because the project is behind schedule. That matter is set to go to negotiations.
These costs are “normal stuff” the Mayor says.
Some of the cost overruns are due to engineering unknowns, such as about $67,000 for concrete shoring around the area near BJs Restaurant, just downstream from the bridge. There was another $30,000 for ‘heat and hoarding’ which essentially is a product of pouring concrete in cold weather.
“It amounts the about four per cent of what the budget was,” McCormick said. “I’m not dissatisfied. That’s within a five per cent contingency. On average that’s pretty good.”
However, he says it is still not entirely certain the project will be finished by year’s end.
“We had the most spectacular fall for weather and we are five to six weeks behind. You have to wonder why. It’s unfortunate it wasn’t completed by the end of November.”
Chief Financial Officer Holly Ronnquist has recommended that the shortfall be funded with $40,000 from the Kimberley Reserve Fund and the remaining $123,689 be funded from the General Fund Operating Capital Reserve.
“A review of the 2015 capital projects show an expected savings on completed projects of $108,000, possibly more,” Stated her report to Council. “The savings on other completed capital projects will be transferred to fund the Mark Creek project cost overrun. Any difference between the $123,689 required and the completed project savings will result in a reduction of General Fund Operating Capital Reserve funds available for the 2016-2020 capital budget.
A Financial Plan Amendment is not required as this will not result in total 2015 expenditures exceeding budgeted expenditures.”
Council will vote on whether to follow that recommendation at their regular meeting Monday, December 14, 2015.