Unexpected costs have pushed the final stage of the award-winning Metral Drive upgrading project in Nanaimo $1.4 million over budget, prompting council to designate money from three reserve funds to make up the shortfall.
The city embarked on the Metral Drive corridor plan to improve safety for those who walk, bike, ride the bus and drive vehicles and finished the first phase last summer, with the second and final phase expected to be completed this fall. Utility services are being upgraded at the same time.
The first phase came in $1.113 million below its $4.5 million budget. The budget of phase two was $7.1 million, but has been pushed to $8.5 million.
Bill Sims, Nanaimo’s general manager of engineering and public works, told council the increase is the result of legitimate additional costs to the contract, which the city is committed to funding.
A staff report to the city’s finance committee in July said unexpected cost increases arose in the second stage of the project when unsuitable soil was discovered during excavation and had to be removed. Excavation was expanded and the area rebuilt with new gravel, it said.
In addition, third-party utility service changes meant retaining walls had to be redesigned while construction was underway, fuel prices have climbed by nearly 35 per cent since summer 2021 and the cost of asphalt rose by close to 45 per cent.
Other material costs and labour shortages also affected the project, the report said. Curb, gutter and sidewalk work was stalled because of a shortage of cement.
Coun. Ian Thorpe spoke at Monday’s council meeting against using the reserve funds, saying the project does not have a lot of public support — although it, along with the city’s complete streets standards, has been recognized nationally and internationally with three awards.
“In the past several weeks I’ve had several conversations with Metral area residents and businesses. They have serious concerns about this project, not just the construction mess, which is temporary, but the long-term result of what they consider and I consider to be harmful effects on traffic flow, narrowing of streets, elimination of right-hand-turn lanes, etc.”
Coun. Sheryl Armstrong agreed with Thorpe’s concerns but said she was voting in favour of the additional expenditure because the project had to be completed.
Coun. Zeni Maartman said that she’s spoken to local residents who “actually enjoy this infrastructure,” which she has seen being used by numerous people, including those pushing baby carriages.
“You just feel safer,” she said. “I don’t mind the narrowing of the streets and I think it is a great project.”
Coun. Don Bonner said that to vote against allocating money out of reserve funds and abandon the project would open the city up to litigation.
Mayor Leonard Krog said he’s optimistic that citizens will appreciate the project once it is completed, noting the street is accessible and safer for pedestrians and cyclists, with an attractive boulevard lined with trees.
Council voted in favour of funding the increase with $875,000 from the community works reserve fund, $35,000 from the sewer reserve and $490,000 from the water reserve.
cjwilson@timescolonist.com
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