The following article appeared in the May 14 edition of the Guelph Mercury:
Several of the city’s more than two dozen infrastructure projects are over budget, according to an information report that goes to council later this month.
The city has 25 projects worth $76.4 million in the works, with costs shared with the Ontario and federal governments supporting an infrastructure stimulus effort to make improvements while boosting an economy stumbling out of recession.
The report notes the bad news is offset by the fact several projects are currently under budget and the city also has access to contingency funds.
Coun. Vicki Beard said Friday she’s hopeful the projects will balance out and there won’t be cost overruns in the end.
“Staff are very aware of council direction on not overspending,” Beard said. “I have every confidence in staff. We have a competent staff.”
She added budgets are moving targets on large infrastructure projects. “That’s what happens with budgets. They run under; they run over (as they proceed).” She reiterated her confidence budgets will ultimately be met.
Still, Coun. Ian Findlay said he wanted to have a close look at the city report.
“I certainly look forward to finding out more from city staff,” Findlay said.
“Any time a project goes over budget, we need to clearly understand why.” He noted, for example, that roadwork costs can jump when the clay expectedly turns out to be harder bedrock, making the work more difficult.
Ultimately, Findlay said, a few projects in the red is not unreasonable out of 25.
“I do know some are definitely under budget, which is good news, too,” Findlay said.
The report doesn’t tally the projects in the red, but notes, for example, that the Westmount Road redevelopment from Speedvale Avenue to London has an estimated shortfall of $353,000. That’s in part because of “higher costs due to tender timing and contractor availability” and an original estimate based on insufficient information.
City hall official Don Kudo said Friday only the Westmount Road project is clearly identified as over budget. Several others, including improvements to Malty Road, Victoria Road and Wyndham Street, are in the report as facing possible overruns but are not expected to be on budget, in some cases because of design changes and retendering.
That just leaves two potentially over budget (excluding the Westmount overrun). These are redevelopment of Edinburgh Road and the bicycle lane project for Stone Road and Gordon Street, Kudo noted.
The report notes that several projects are under budget by a combined $2.6 million, of which the city’s portion, $880,000, can be reallocated.
It adds two other projects, improvements on Norfolk Street and the Eramosa/Delhi intersection, may come in at $2.4 million under budget. That would give the city an opportunity to reallocate $800,000.
And, finally, the report states the city has a contingency allowance for the ambitious infrastructure program that comprises almost $4 million.
In all, improvements are underway across the city, including new road work, sidewalks, sewers, water mains, buildings and bike lanes.
Money from higher levels of government comes from an infrastructure stimulus pool and “Recreational Infrastructure Canada” funding programs. Projects are to be completed by March 31, 2011.