A budget overrun for another capital project has prompted concerns about the city’s cost forecast methods.
Council on Monday approved an extra $200,000 for new pool filters at Fountain Park Recreation Centre, bringing total funding to $650,000. The budget overrun prompted a stern reaction from Coun. Roger Lemieux, who noted it comes just a few weeks after the city topped up funding for Riel Recreation Park by more than $2 million and a few months after the Kinex/Akinsdale Arena project came in $320,000 over budget.
“There’s something wrong here,” Lemieux said. “I cannot understand how we could have, once again, underestimated a project by over 40 per cent.”
Chris Jardine, general manager of community and protective services, explained the Fountain Park project required more funding due to tenders coming in more than expected.
Jardine said the nature of the project played a role in the price since few contractors within Alberta are able to do the work.
“This isn’t just a cookie cutter project,” Jardine later said. “Every one of those filters has to be put together a certain way … it has to be designed differently for each pool.”
In an interview Jardine said the city’s track record for project estimates is on target more often than not. Out of the roughly 50 capital projects this year, only three of them have resulted in cost overruns.
“I don’t think that’s a bad track record,” he said.
Lemieux later said he wasn’t blaming anyone for the cost overruns, saying it could happen at any point during the project. However, he believes the city needs to improve its estimates.
City manager Bill Holtby noted the cost estimates for the Fountain Park project were created using conceptual designs created by a consultant. Plans are in the works to ensure that future capital projects have full detailed designs completed before a final figure is brought to council for budget approval.
Council approved the additional funds using the federal Recreation Infrastructure Canada grant awarded earlier this year and the city’s pay as you go fund.
The new filters at Fountain Park were originally set for replacement in 2008, when they were at the end of their lifecycle. However, the project was pushed back twice because of a lack of funding.
Without the replacements, the filtration system could stop working, forcing the closure of Fountain Park, Jardine said.
