Increased Construction Costs for Pool offset by Senior Government Grants
Williams Lake, B.C. - The Cariboo Regional District (CRD) Board of Directors endorsed a resolution from the Central Cariboo Joint Committee to make adjustments to the Sam Ketcham Pool Upgrade Project budget. The increase is required in light of the current project cost estimate and is considered to have a high level of accuracy based on final working drawings and the receipt of tenders to date.
The Board reviewed the updated overall project cost estimate from March 11 as provided by construction managers, Tango Management. The estimate anticipates a project cost of $13.1 million including appropriate contingency funding, which is approximately 12 per cent over the initial cost estimate of $11.7 million. These changes can be accommodated within the existing 2016 Central Cariboo Recreation and Leisure Services financial plan.
With the Federal Gas Tax grant factored into the budget, accommodating a $13.1 million project can be achieved without a previously planned draw from the recreation function capital reserves and the anticipated borrowing will be reduced to $6.75 million with a term of 15 years. The reduction in the principle amount borrowed saves $6.45 million, including $3.2 million in interest charges. Taxation increases over the term of the five-year financial plan have been reduced from one per cent per year, to zero per cent.
“The current financial plan reflects the recently approved grant for $4 million from the Federal Gas Tax Strategic Priorities Fund administered by the Union of British Columbia Municipalities,” states Central Cariboo Co-Chair and CRD Director Joan Sorley. “We are thankful to the funding partners for their contributions and support and the major positive impact their funds have on the project budget and that we will be able to significantly reduce the cost to local taxpayers. I’m also confident that the project working group will continue to be diligent in ensuring that all design details are the best value for the project and will take advantage of any other cost-saving opportunities.”
“It is disappointing, but not fully unexpected, that the cost estimates have gone up since the initial concept plan in 2012,” stated Central Cariboo Joint Committee Co-chair Mayor Walt Cobb. “But it’s also critical that the project meets all the expectations of the community and the scope that was brought forward in the referendum and I’m glad this will be achieved while actually reducing costs for local taxpayers.
To support the project, the Regional District and the City of Williams Lake continue to pursue funding from other sources and have confirmed $250,000 from Northern Development Initiative Trust, $500,000 from the Canada 150 Federal Grant program, $427,500 in Regional District Community Works Funds for specific energy efficiency upgrades and $4 million from the Federal Gas Tax Strategic Priorities Fund. These grants are in addition to the $500,000 donated by West Fraser to support the project in recognition of the long standing connection between the facility, the company and the Ketcham family. This major grant funding will help reduce the amount of funding the Regional District must borrow for the project and save local taxpayers those financing costs.
A Facebook page dedicated to helping provide information to residents and an opportunity for residents to ask questions can be found at facebook.com/SamKetchamPool. A Twitter feed can also be found at @SKPProject. Project updates will also be posted on the Cariboo Regional District website at cariboord.ca and on the City of Williams Lake site at williamslake.ca.
Page last modified: October 30, 2018 09:50:58 PDT