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Upgrades to Metral Dr. are set to cost around 20 per cent more than originally thought thanks to global stressers and rising material costs. (Ian Holmes/NanaimoNewsNOW)
BALLOONED BUDGET

Rising cost of construction materials sending Metral Dr. upgrades over budget

Jul 20, 2022 | 4:10 PM

NANAIMO — An increase in key elements to ongoing Metral Dr. upgrades is contributing to a $1.4 million bump in the budget for the project’s second phase.

City staff went before Council’s finance and audit committee on Wednesday, July 20, asking to increase funds allocated to phase two of complete street upgrades to Metral Dr., from $7.1 million to $8.5 million.

Laura Mercer, City director of financial services, told councillors phase one came in around $1.1 million under budget, meaning much of the increase is covered.

“We didn’t carry forward that money specifically for phase two, but whatever money was unspent remained in the reserve and that money can be used to fund the shortfall for phase two.”

The Community Works Reserve will contribute $875,000, while $490,000 will come from the Water Reserve and the remaining $35,000 funded by the Sewer Reserve.

Upon completion, it’s expected the entire Metral Dr. project will be around $300,000 more than first thought.

The City expects major civil works for phase two of the Metral Dr. project will be done by September, with landscaping and site clean-up taking place in the fall.

Annalisa Fipke, City project engineer, told councillors rising costs of materials along with unsuitable soil conditions contributed to more required funding.

A City report noted fuel and asphalt prices have soared upwards of 45 per cent since phase one of the project was completed in 2021.

Labour shortages, material costs and uncertainty around supply lines are also contributing factors and is a story becoming increasingly familiar in most aspects of post-pandemic life.

Fipke addressed some ongoing concerns with the project, namely congestion at the current project site around busy commercial hubs near Aulds Rd. and Enterprise Way.

“When we had to go through the intersection [Enterprise Way and Metral Dr.], we trenched through the intersection and disturbed the induction loops…that trigger the lights. Right now the intersection is working on timers only, which is causing issues in the queuing because it’s not communicating with, say, the Island Hwy.”

New controls for the lights are being installed this week, according to Fipke, and should see the end of backups for vehicles trying to navigate the area.

Several councillors shared concerns they’d heard from the community regarding disruptions to the area as a result of the project.

General manager of engineering and public works Bill Sims told councillors the current phase of construction is less than ideal but is necessary to complete the project.

“Once things normalize and get back to a stable state things calm down, traffic finds its way and people find their way back to those businesses.”

Sims also added extensive discussions were conducted with emergency services prior to shovels going in the ground, responding to another common complaint on the project.

Mayor Leonard Krog said he’d also heard community frustrations around the project but asked for patience.

“Can you please just wait until it’s finished and fully operational? Then I’ll be happy to take criticism about what things may or may not happen but I think there’s a certain level of unnecessary negativity around some aspects of this project which time will show, in fact, weren’t warranted.”

Coun. Ian Thorpe was the lone dissenting voice to spending the additional money, calling his stand a “bookmark” to return to once crews leave the site.

“Pretty pictures are one thing, efficient operation of a transportation system is another. I’ll be very curious when this is finished how efficient it is for all parties concerned.”

Finishing the upgrades to Metral Dr. will effectively link the north end of Nanaimo with the remainder of the City by bike, linking neighbourhoods in the north to the central E&N Trail.

Phase one upgrades wrapped in summer 2021 and included dedicated bike lanes and sidewalks from Mostar Rd. to Turner Rd.

The second phase extends from Turner Rd. to Aulds Rd. with similar upgrades.

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