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City of Powell River Council has increased the liquid waste treatment plant loan authorization bylaw to $30,701,000. This is for the city’s share of the project, over and above contributions made by provincial and federal governments for the project, which amount to about $56 million.
At the May 5 council meeting, councillors passed the loan amendment bylaw, which according to finance committee chair George Doubt, seeks an additional $3 million of borrowing to be authorized.
“We are getting very close to the budgeted amount for the cost of the plant,” said Doubt. “Council and staff are working very hard to control those numbers, but it seems prudent to authorize additional borrowing so we can continue with the construction. That’s what this $3 million authorization would be for.”
Mayor Dave Formosa said he wanted to add that anyone building at this time will notice a significant increase in labour costs and material costs.
“I don’t know how much longer this trend will go but I think it will be until we start to see the world come back, all the ships come back, and all of the workers in the factories; we are all paying the price,” added Formosa. “I think we are doing a great job. I have thanked the manager of engineering services and director of infrastructure, plus the chief administrative officer and corporate officer, for having the forethought to purchase major components ourselves, without paying a middle man 10 or 15 points. We bought direct and we own them.”
Formosa said an example of cost increases is piping. He said if someone is now building a subdivision and is putting in piping under the ground, the city was told it has gone up 400 per cent.
“You can imagine the amount of piping we are putting in the ground,” said Formosa. “It’s just the reality of the times. I’m not making excuses, but people need to know.”
Council unanimously approved the loan amendment bylaw.
At the conclusion of the meeting, during questions from the Peak, chief administrative officer Russell Brewer said the amended loan authorization bylaw is not factored into the current $89 million budget the city is working with. He said it would be additional if deemed to be necessary. If there is a financial requirement, the bylaw can be enacted, he added, but just because the city has amended the loan authorization bylaw, it does not mean it has to be used.
