Budget Overrun for new Fire Hall

On Tuesday, WL Council, meeting in Committee of the Whole, will receive a report from Randy Isfeld (Director of Protective Services) outlining the final numbers on the budget for the new Fire Hall.  For the record, the City ran over the $6.5 million budget for the new Fire Hall by $528,034

See the Report here

It should be noted that the Fire Hall Project Oversight Committee (Brian Carruthers, Randy Isfeld, Geoff Goodall, City Councillor Tom Barr and former City Finance Director Darcy Lazzarin) had received assurances from January - October 2009 that the Fire Hall Project was on time/budget with a contigency budget remaining of $117,340.00 in October 2009. 

Four Recommendations to prevent this from occuring again that City Staff will recommend to WL Council are:

1. For a project of significant value or complexity, utilize a Principle Contractor model whereby the contractor assumes responsibility and risk for excess costs other than those approved by the City through change orders;

2. In the event a Project Management model is utilized, the City should retain all financial administration responsibilities. Project Management should be limited to oversight and coordination of construction activities;

3. In the event that staff are aware of expected cost-overruns, Council must be informed prior to further work commencing so that appropriate budget authorizations can be provided by Council; and

4. Establish a project oversight committee with Council representative for all projects of significant value or complexity as a common practice.

Also - City Staff will make it clear to WL Council that the budget overun has been fully financed (2010 Capital Budget & 2010 Operations Budget (summer of 2010)) and no further taxpayer intervention is necessary

I would encourage taxpayers' to review this report and ask appropriate questions when the City engages residents for the City's 2011 Budget and at election time, later on this year

SBF