Ladysmith town council unanimously agreed to move forward with a $500,000 budget increase for the Fourth Avenue reconstruction project.
The more-than-20-per-cent increase to the budget was discussed at the March 21 council meeting; councillors were disapointed, however they were not surprised.
“It’s a terrible, unfortunate situation, but at the same time not unexpected,” said Coun. Tricia Mckay at the council meeting. “I’m confident with anything in town where you’re looking at something that’s been in the ground for a long time, you never know what you’re going to find.”
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According to the staff report to council, the contractor “has encountered multiple unanticipated conflicts or changes that require additional expenditure,” including several previously unknown service connections and replacing asbestos cement.
Coun. Jeff Virtanen believes the project was “well underbid,” and it’s a “broader issue” for council to discuss in a later meeting.
“We’re seeing this more and more with projects, with these cost changes,” said Virtanen at the meeting. “[We get] really low bids, and we give [projects] out, then these things happen.”
According to Ryan Bouma, the town’s director of infrastructure services, “there are some indications that things will improve” as construction moves farther north.
The additional funds are to come from water reserves, sewer reserves, and more than $300,000 is to come from prior year surplus.
bailey.seymour@nanaimobulletin.com
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