As costs escalate, Sechelt council approved additional funding for the active transportation expansion project in order to meet grant deadlines.
Elected officials approved $1,010,000 to cover the shortfall for segments one and two of its active transportation expansion project in an April 19 council meeting. A contract for $2,947,690 plus GST was awarded to Maycon Construction for the project's first segment, along Mason Road between the highway and Reeves Road. Mayor John Henderson and Coun. Darren Inkster were opposed to the recommendations. Henderson suggested completing segment two before segment one.
The overall project will connect West Sechelt and West Porpoise Bay. When combined with other transportation infrastructure projects, it will also connect to the downtown area. The second segment links Reeves Road, Crowston Trail, and Ripple Way, as well connecting Kinnikinnick Elementary and West Sechelt Elementary Schools. Council also chose not to proceed with the third segment of the project, in East Porpoise Bay.
In July 2021, federal and provincial representatives announced $3,238,000 in funding for the project from the COVID-19 Resilience Infrastructure stream.
Staff said 75 per cent of the design is completed. But at that point, they saw the costs were escalating and that the project would likely go over budget. An estimate to undertake all three segments of the project came up to over $6 million, staff said. Certain elements were removed to try to bring the cost down.
On March 9, district staff contacted the province to discuss escalating costs, and were told there is no additional funding available. If the capital work does not start, the district could be required to pay back the design and permitting costs incurred so far, which are estimated to be $325,935. Non-completion of a project with approved grants could factor into future grant applications.
The extra funds are to come from the Local Government Climate Action Program Reserve and from the Growing Communities. Staff are suggesting that the second segment of the project be addressed through capital reserves in the 2024 budget or another active transportation grant.
There was some discussion about which segment should be completed first, but staff told council that the first segment has gone to tender and any changes to the scope would need to be brought to the legal department. The current contract with Maycon is guaranteed for 90 days and expires on May 25. The contract value can be reduced by a maximum of 10 per cent, staff said. But the funding governments will also need to be contacted.
According to funding requirements, that work must begin by Sept. 30 this year and be completed by the end of 2024.
