City of Powell River councillors were given a progress report from staff on the proposed new fire hall.
At the June 1 committee of the whole meeting, Powell River Fire Rescue fire chief Terry Peters said the emergency services facility has been a large process and ongoing for many years. He said at the direction of city council, the fire hall/emergency services facility select advisory committee has been meeting and recommendations have been brought back. Peters said he wrote a report and was going to go over it with the committee so the process of building a new fire hall can be started.
Peters said the committee was formed in October of 2019 and has been reviewing technical decisions and going over site locations. It has also been reviewing funding strategies, future community benefits and strategies to provide the public with information and gather feedback.
The goal, said Peters, is to build a facility within two years.
He said the original site location was on Barnet Street, adjacent to the RCMP detachment, but the committee decided, and it was endorsed by council, that it would be on Duncan Street, on the corner of Ontario Avenue, on the city’s public works yard. Peters said geotechnical and environmental studies have been done on the property and there is nothing to inhibit construction at the site.
Peters said chief financial officer Adam Langenmaier had undertaken some financial strategies. A number of options were specified for councillors to consider, including the sale of surplus city-owned properties, use of city surplus funds and reserves, the Powell River Community Forest reserve, grant opportunities and borrowing.
Peters said in terms of construction, staff is recommending a design-bid-build project. He said this form of procurement is the most preferred and most competitive method of construction delivery in BC.
Council discusses costs
In terms of the facility itself, Peters said the committee came up with a figure of $7.5 million for construction. He said the architects in 2018 came up with a figure of just over $9 million.
Peters said it is the staff recommendation that the city consider using an alternative approval process (AAP) to borrow up to $10 million for the fire hall. An AAP is different than a referendum; a question is put out to voters and if 10 per cent or more oppose the initiative, the approval fails. The AAP is the most cost-effective way to proceed, costing about $4,000, which is considerably less expensive than a referendum, according to Peters.
Peters said the cost of borrowing $10 million from the municipal finance authority for an average-value house in Powell River ($383,0000) would be $72.69 per year over a 30-year term.
Mayor Dave Formosa said the fire hall committee suggests $7.5 million for the project and that Peters’ report suggests borrowing up to $10 million. He said some of the thinking around that might be that as of late, costs of construction have “gone nuts.”
Councillor George Doubt asked if the committee endorsed Peters’ report. Peters said the report would be going to the committee on June 9.
“You’re not telling me the committee is 100 per cent behind this,” said Doubt.
Peters said the committee brought forward $7.5 million for construction and city staff are recommending up to $10 million.
“If it costs $7.5 million, we’re all happy with that, but the options are we should be going for the $10 million number,” said Peters.
Doubt said he’d rather not be in a position of council making a decision about the project budget and finding out the appointed committee disagrees.
Councillor Maggie Hathaway said the committee debated the number a lot and she thinks the $7.5 million figure is low.
“I believe the thinking of the committee was an amount that the public will accept, and that’s why we are looking at alternatives, such as reserves or land sales – the kinds of things that could possibly make up the difference,” said Hathaway.
She said she was pleased with Peters’ report and it gives the committee some direction.
Formosa said one strategy might be to say that there is $7.5 million that the public is able to stomach and ask the architect what the city can get for that figure.
Alternative process surprises councillor
Councillor CaroleAnn Leishman said she was surprised to see the suggestion of the alternative approval process when she thinks that for many years the city has said it will go to referendum.
“I’m struggling with the suggestion that we would go with the alternative approval process route when the public has been told all along there would be a referendum,” said Leishman. “I don’t think I could support an alternative approval process.”
Doubt said he thinks it’s prudent that if the experts suggest the project will cost a certain amount, that the city makes that its target for funding. He said pricing is important but it’s also important to find out if the committee agrees or disagrees with the higher figure. He said he also shared Leishman’s concerns about the AAP, as did Hathaway.
Hathaway said she’s hearing from a number of people who are suggesting the city get on with building the fire hall.
“Maybe people really get it that we need a new facility and the sooner the city does it, the less it will cost,” said Hathaway.
The committee gave consent for Peters’ report to go back to the fire hall committee to see what its members have to say, bring it back to the committee of the whole again and consider options recommended in the staff report.
