Capital projects under the Council microscope

Apr 26, 2021 | 7:46 PM

PRINCE GEORGE – How the City deals with capital projects into the future was the focus of much of the Council meeting this evening.

It started with Council receiving a detailed report from the Finance Director on which projects went over budget in 2020 and how that cost overruns were covered off. The total overruns were $8.5 million dollars.

“It’s not a pleassant report,” stated Councillor Cori Ramsay. “We know that it was mostly the parkade but we’re fixing that.”

Next, Council also approved a new delegated authority for the City Manager. Prior to the start of this year, Finance Director Kris Dalio noted the City Manager had the authority to approve capital cost runs at five percent of the total operating budget, which is $165 million, without having to go to Council.

That would translate into $8.5 million. With Council’s approval, the new policy will grant the City Manager the authority to approve an overrun of five percent of a project to a maximum of $100,000 before Council would be brought in.

Council also approved spending $180,000 to conduct a thorough look at the City’s capital management and governance practices. That funding will cover the services of an external consultant. “Talking about this uncomfortable,” noted Council Ramsay noting the decisions of staff will be under the microscope. “But it provides us a chance to learn how to do things differently.”

But many around Council Chambers noted that if this review and what comes of it is not supported at the top, it’s a waste of time and money.

“None of this will matter if Administration is not upfront with Council and the public,” noted Councilor Brian Skakun.

The report is expected back to Council before the end of 2021.