The transit terminal /environ project has
soared from its cost estimates of 22.4 million to 29.3 million, a 6.9 million
dollar increase since it was last presented to Council. Of the 22.4 million, the
Provincial Green Trip fund program provided 13.6 million for the
Transit Terminal.
Council was advised of the project cost overrun
in January 2013 and then was faced with the 6.9 million dollar decision at the
March 12th Council meeting.
Why
the Need for this Project?
In 2007/2008 administration was struggling
with the lack of parking at the Transit Centres and awkward routes built for a
much smaller urban area of two decades ago. In 2011, parking deteriorated when
the province ended the lease for the utilities corridor on Wye Road,
eliminating 400 parking spots.
Throughout this time Transit formed a plan to
address the route restructuring that would increase convenience and efficiency
to transit travel. It became clear that more land and a larger terminal
building were required for our growing community. Administration built a case
to construct a large transit centre at the Bethel site with plans to revitalize
and add a building to the existing environmental yard.
But
Why the 6.9 million dollar hit to our reserves?
Early in the planning, a decision was made
to combine the tenders of these two projects, located on the same piece of
land, to gain construction efficiencies. Unfortunately this decision limited
options for Council. The risk of joining these two projects was not recognized
and speaks to a need to review the process.
We could have saved the county roughly
3.9 million dollars had we been able to do as I proposed: defer the Enviro Building to a future
time. We could not do this with the tenders joined as they were. I would have
supported the Transit Terminal and asked for a tender separation to phase in
the Enviro Facility at a later date.
It strikes me as somewhat unbalanced that Council approved increased
urban service with the new 3.9 million dollar Enviro Building while last year decreasing
rural service by slashing our two small rural enviro centres. This is contrary
to a Council budget direction to maintain current services and avoid service increases
that would reflect in operational and capital spending increases.
In addition to this, consultant reports did
not capture the true cost of low land reclamation or provide accurate estimates
on the geophysical issues that both Administration and Council knew were
inherent on that site with the end result adding millions of dollars to the
overruns.
So
where are we now?
So, let’s look at what we have got. In this plan we have a Transit
Terminal that is unique to the region. It is the second largest Park ‘n Ride in
the Capital Region and is the third largest centre in Alberta. There are 1200 parking spaces, which provide
a response to our residents’ complaints. The centre also boasts 20 bays to
handle the proposed improvements to local bus routes that will improve transit
efficiency. These changes are expected to handle our growth needs into the next
few decades.
We are left with some lessons to learn and use in the future.
This was not exclusively “an administrative error”, as noted in an apology from
the Commissioner. The Mayor and Council were privy to every step that was
taken. Leadership means taking responsibility and accountability.
The
way forward?
Strathcona County is a booming community –
it reminds me of where Alberta was a decade or two ago. As we build this
community we must place cautious spending and wise investment at the centre of
a new way of doing business, now and into the future.
References:
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