Construction of the new downtown pool is now $2.8 million over budget, according to a report going before council on Monday.
City council will decide whether to approve the updated budget, which will mean borrowing more money for the project, which now has a total cost of $39.126 million.
Roughly two-thirds ($1.7 million) of these costs are attributed either directly or indirectly to the steel primer deficiency, according to the report. As reported to council last July ($1 million in cost estimate at that time), following the delivery of structural components to the work site, it was determined that the primer was specified in error and would require significant remediation work. The city is seeking compensation to reduce the overall primer remediation cost overrun.
The $1.7 million attributed to the steel primer deficiency includes the primer remediation costs incurred to date, plus a contingency for future potential expenses including cost recovery. This total is subject to potential recovery action.
The remaining $1.1 million of the cost overruns are largely due to external material or labour cost
escalations for items such as wood, A/V equipment, painting, and signage, and unforeseen conditions such as unsuitable soils and existing piping beneath the pool tanks.
Original cost estimates for the project are from 2017. Since that time, with the impact of the
pandemic and labour shortages, construction costs have escalated substantially.
City administration is recommending an amendment to the Four Seasons Leisure Pool Replacement
Project budget with an addition of $2,876,000, to be funded by the MFA Debt Proceeds under the
previously approved Loan Authorization Bylaw #8888. This brings the total borrowing to $28.376
million of the approved possible borrowing of $35 million.
Construction is currently 84 per cent complete with $28.3 million spent. The expected completion for construction remains by late summer 2022 with occupancy to follow in the fall 2022.