City of Powell River’s consolidated wastewater treatment plant requires $10.7 million of additional funds, bringing the project cost to just shy of $100 million.
At the November 24 city finance committee meeting, city manager of engineering services Nagi Rizk provided his monthly outline, including the financial forecasts.
Councillor George Doubt said there was a big change in the financial picture since the last finance committee report at the end of August.
“The change I’m talking about is the extra $12 million of 2023 costs that showed up with no indication that it would exist in our previous reports,” said Doubt. “The previous report, I think, had the total construction cost with all of the contingencies being $92 million, and now we hear today we need another $12 million. My question is: what is it for, where did it come from, and why hasn’t it been reported before?”
“The $12 million is projected for 2023 and it’s counting; more expenses have come in,” said Rizk. “There are a whole lot of expenses that are in dispute right now. I’m not at liberty to discuss them, but the procedure, when you get into litigation, mediation or arbitration that will be happening in future, we can discuss that in camera. By all means, call me in camera and I would be glad to answer all your questions. That’s the best I can clarify now with this.”
Doubt asked if all of the additions were within the original scope of the project and if there is no project work outside of what was originally planned.
Rizk said the scope has certain tasks and that has not changed. He said detailed construction has changed according to site conditions.
According to a report for the finance committee by Rizk, additional funding would come from maximizing the approved long-term debt, from the approved $27.3 million, to $30.7 million, and adding $7.3 million from the sewer capital reserve fund. No additional long-term debt beyond the approved $30.7 million is being proposed.
Rizk said the project is at about 90 per cent completion on the contracts for the plant and linear work, which involves the piping and lift stations required to bring the wastewater to the plant.
Councillor Cindy Elliott said her understanding is that the total amount of the cancelled contract for the outfall is still in the budget and contained within Rizk’s numbers. He said that is correct. The matter is currently in litigation.
She also asked if the project of extending the piping via the Wildwood bridge is still going ahead, and Rizk confirmed that it is.
Elliott then asked when the treatment plant would be operational. Rizk said there is a start-up date of December 9, when the electricity will be powered up on all the equipment to see if the equipment runs as expected. He said actually getting to treatment and discharging into the ocean is another thing, and that there is probably six months between those two dates.
“It depends on how many glitches in the system we see when we turn it on,” said Rizk.
Councillor Jim Palm said his phone at home had been ringing about the linear work carried out on Alberni Street. He asked Rizk to elaborate on issues being faced with that work.
Rizk said he wanted to mention to the public that he appreciates the patience of people in the city. There are strict policies on how traffic is disrupted and how construction is carried out in populated areas, and those were issued to the contractor on how to deal with them, he added.
“There was definitely disruption and things don’t always happen in construction the way we hope,” said Rizk. “We are at the mercy of weather, the supply chain, COVID-19, paving contractors – there are a whole lot of variables. We do our best.”
