By Cheryl Jahn

Fire Hall Overruns

Fire Hall #1 $2 million over-budget

Jun 17, 2020 | 4:01 PM

PRINCE GEORGE – The new fire hall #1 is an impressive structure, but it comes with an equally-impressive cost overrun. Two million dollars to be exact. It was something Mayor and Council learned about during Monday evenings regular meeting, with Administration saying the building grew in size, from 21,000 square feet to 26,000 square feet.

And, was pointed out by Councillor Terri McConnachie, that was due to the dispatch needing more space.

“There was one particular, very serious misstep from the outset. A pretty big matza ball out there,” says McConnachie. “And that was specifically to do with one of the major tenants that’s going into the new Fire Hall. And that’s the emergency Operation-Communications Centre. Five thousand square feet is a pretty big difference.”

Administration noted that, to some extent, the project was the victim of COVID-19 as there were delivery delays and challenges with labour.

“COVID interruptions due to supply chain issues and other delays, of course. Thoise things are going to happen. The whole world is grappling and across the industry, we’re all grappling with these types of issues. But not to the tune of two mill,” says McConnachie.

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The fire hall, as well as the new Four Seasons Leisure Pool, went to referendum. Specifically, the electorate gave the City the nod to borrow $15 million dollars for the new fire hall. The City says it will still only borrow $15 million and the remaining two million will come from other internal sources, such as projects that came in under-budget.

It has prompted further discussion around Administrative discretion. Currently, the City Manager has the discretion to approve cost overruns to a certain degree. But Council will be looking into whether those rules should be tightened up.

“At one point, in capital projects hit, and let’s use the fire hall, it hits $15 million, at what point if it goes over $15 million does it come back to Council?” explains Mayor Lyn Hall.

But that discussion was set aside for a later date to be hashed out firstly through the Finance and Audit Committee.