Gibsons councillors have approved dipping into the drainage development cost charges (DCC) fund for extra money to cover cost overruns for the Gibsons Way improvement project.
The project was originally budgeted at $305,000 and was supposed to be completed last November.
“As the project progressed it became evident that some significant increases in the required amount of culvert to facilitate pending construction of the sidewalk was necessary,” explained director of infrastructure services Dave Newman. “That resulted in a projected shortfall in the budget of $225,000.”
Newman said the drainage DCC fund has a current balance of about $800,000 so could be used to cover the extra costs of the improvements.
Newman said the cost overrun isn’t the result of unexpected circumstances, but an “overly optimistic” projection from the Town’s engineering consultant that led to staff underestimating the original budget.
Watermain work on Gibsons Way and other streets in the town is also behind schedule and over budget, but for different reasons.
Newman said that project is being affected by increased traffic control costs and extra work needed when crew encountered unforeseen situations during excavations, including buried wood found under Gower Point Road. “They were actually excavating using a chainsaw,” Newman said.
Newman said the Town will be looking to recover some of the costs for the delays from the contractor. Staff also wanted pre-approval for the 2018 budget for watermain work in the amount of $275,000. The money would come from the gas tax fund.
The work on Gibsons Way is now expected to wrap up on March 30, but Newman told councillors that date could also be missed, because much of the work is weather dependent.
Mayor Wayne Rowe asked for, and got, Newman’s assurance that “this spring council can expect to see a finished product: sidewalk, paved road.”
