A new fleet maintenance building, as well as office space, will form a slimmed down $90 million ask from the City of Nanaimo to voters as an alternative approval process begins Wednesday. (Alex Rawnsley/NanaimoNewsNOW)

By Alex Rawnsley

third times the charm

‘Fit for purpose:’ City of Nanaimo launches third AAP for slimmed down public works upgrade

Sep 18, 2024 | 5:33 AM

NANAIMO — For the third time in 12 months, the City will ask its residents to approve borrowing for an upgraded public works facility.

After incorrect legal advice and improper procedure scuttled two previous attempts in late 2023 and earlier this year, a third alternative approval process (AAP) opens Wednesday, Sept. 18 to permit the City to borrow up to $90 million.

The major change since the last two AAPs is the scope of the project, now a slimmed-down version of the former Nanaimo Operations Centre vision, including a new fleet maintenance facility as well as a crew and administration building on Labieux Rd.

“It is a bare-bones project, it remains a bare-bones project,” Bill Sims, City general manager of engineering and public works, said. “We’re not building plush carpeting, this is going to be concrete floors and basic drywall with a resilient post-disaster structure. We call it fit for purpose about what we need here.”

A 42-day voting window will close at 4:30 p.m. on Oct. 31.

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Eligible voters opposed to the borrowing must fill out a form and submit it to the City before the deadline, and if 10 per cent of the electorate (7,974 people) do, the borrowing fails.

Forms can be obtained and returned both in person or on the City’s website.

A full breakdown of the project is available here.

The City has said a fleet maintenance building is sorely needed for the City to ensure continued smooth operations in the event of an earthquake or other major disaster. (City of Nanaimo)

Sims said the City reviewed the project after the second attempt at the AAP, and between community and Council feedback opted to change course.

While the maintenance facility and administration offices were deemed essential to help the City respond in the event of a major disaster, other aspects were put on the back burner.

Updates to the parks department facility of Prideaux St., a so-called Parks operations “annex” on Nanaimo Lakes Rd., a walkway running the length of the Labieux Rd. property on the rear of the property and changes to the Nanaimo Fire Rescue training tower were all excluded for now.

Sims said they’ll be added back in over time through the regular capital project schedule, particularly the trail which was a requirement under City bylaw.

“As we have funds available and we can get some grant funding…it’s an excellent project and this was an opportunity to get it done but we heard quite a bit of pushback from the community about ‘why are you building a trail? That’s not a need to have’.”

As part of the new plan, the location of the buildings has also changed in a bid to create a more streamlined construction process.

Both facilities will be built towards the northern end of the Labieux Rd. property.

Upgrades to the fire training building at the south end of the public works yard will be folded into a more long-term capital projects plan. (Alex Rawnsley/NanaimoNewsNOW)

Additional savings from the original $163 million price tag comes from a reduced contingency and inflationary budgeting.

Laura Mercer, City general manager of corporate services, said based on current interest rates the cost to Nanaimo homeowners would be $18 per $100,000 or assessed value, or $139 per year for the typical property.

She said their current available interest rate through the Municipal Finance Authority is 4.58 per cent and would see the City pay back $145 million over an amortization period of 20 years, should they borrow the full amount.

“This project is planned to be built over five years, so we would do draws against that borrowing each year. We’re not borrowing $90 million at the front, we’re borrowing it as we need it so if the project came in less than $90 million, we would only borrow the amount we needed.”

Interest rates for the City are locked in for a period of 10 years, with renewals every five years after.

The first AAP, which ended in November 2023, saw just under four per cent of voters opposed.

City staff say they followed correct procedure, but voided the vote based on legal advice they received at the time which later proved to be incorrect.

The City cancelled a second AAP prior to its completion but later said form responses were comparable to the first time.

It’s unclear, however, how many forms were filled out but not yet submitted.

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