By Dominic Abassi

Province boosts funding as upgrade costs rise for dangerous Nanaimo intersection

Jan 4, 2018 | 4:19 PM

NANAIMO — The province is stepping up with more funding as costs rise for a priority intersection safety upgrade in Nanaimo.

Bill Sims, the City’s director of engineering and public works, confirmed to NanaimoNewsNOW the Ministry of Transportation and Infrastructure will chip in additional money for the Northfield/Boundary/Hwy. 19A project. That comes after a staff report revealed the project will cost about $1 million more than originally budgeted.

When Council rubber-stamped the project in May of 2017, City staff estimated it would cost $3 million to upgrade the much-maligned intersection. However, the recently published report showed the overall cost, including work done to-date, is predicted to be $4.1 million.

Sims said they are asking Council to approve an additional $525,000 of City money. He pointed out the safety upgrades are not taxpayer funded, with the province footing half the bill and the majority of the City’s share coming from development cost charges paid by developers.

“The original cost estimates were based on concepts. Currently we now have a much better handle on actual costs, a greater cost certainty.”

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The other option presented to councillors is to cancel the project, however the report noted “there is considerable expectation in the overall community to complete it.”

Sims said the increase in cost was in no way unexpected, considering the original budget was drafted in 2015. The project was delayed in 2014 due to a funding shortfall. Up for approval again in 2016, Council approved a staff recommendation to defer the project for a year due to uncertainty with the future of the rail line running through the intersection.

“Like our real estate prices are going up every year, we’re seeing construction costs going up every year…Certainly over 2016 and 2017, we’ve seen a real rise…Two years later we’re in a higher cost market but that’s just the nature of the beast,” Sims said.

The City is working on a “tight timeline,” Sims said, noting the plan is to finish the work by July 1.

The upgrades to one of Vancouver Island’s most dangerous intersections are considered one of the highest priority projects on the City’s books.

The new report on the project will be discussed at the Jan.10 Finance and Audit Committee meeting.

dom@nanaimonewsnow.com

On Twitter: @domabassi