The Finance Advisory Committee (FAC) was seeking some answers after not being consulted on the construction company selection process for the new Community Centre.
Golden Globe Construction was awarded the tender with a bid of $14.4 million. The project is now estimated to cost $18.7 million overall.
The municipality listed several factors for the rising costs, which are up nearly 30 per cent since the 2020 referendum on the matter, and well above the 2018 estimate of $10.5 million.
These included time escalation, necessary building upgrades, capacity for municipal staff, greater demand for construction material, and supply chain disruptions.
The FAC says they should have been part of those discussions. Instead, “non-elected members have not heard any information relevant to the specific detailed reporting and recommendations that led to those awards or the increase in the budget,” says Fred Wagner, committee chair, during the mid-January virtual meeting. He says he found out about the new total in an Undercurrent article from Dec. 2.
“The project has a number of implications, certainly one of the largest in history for the municipality,” said Wagner, adding there’s “potential for construction risk and cost overruns on everything from furniture and fixtures to other areas.”
Wagner says the FAC would have discussed not only the increased cost of the project, but also the funding sources to make up this shortfall, including the municipality’s plan to take $1.2 million from the COVID Safe Restart Fund.
“The committee had previously recommended its involvement in the process to utilize these (Safe Restart) funds to provide its objective perspective, recognizing that political influences exist,” says Wagner.
“I think in the future we want to have some understanding that this not reoccur. Otherwise I have to raise issues about the relevancy of this committee generally, which is sometimes included and sometimes not included,” Wagner stated.
“This is a substantial undertaking by the municipality, with inherent risk,” he says of the community centre.
Chief Administrative Officer Liam Edwards acknowledged the FAC should have been consulted. “I want to apologize and I do take responsibility for this. I believe that it was a tremendous oversight on my part,” Edwards said to the committee.
He explained that “to secure the contract in a tight timeframe I found myself and the team working hard to move as expeditiously as possible with going through the Select Hearing Committee for its review and recommendations to council, and then to council, and then back to the negotiating table to secure the contract.”
“It is such a difficult environment to move quickly enough to secure bids in timely fashions,” added Edwards. “Depending on how many committees you might have to engage with, that can really slow things down… In the tender world of construction that’s difficult.”
Committee questions their role going forward
FAC member Joyce Ganong echoed Wagner’s concerns, particularly regarding when the committee should be called upon. “Quite frankly on one of the most important projects that’s come forward, our terms of reference were not followed… as a member of this committee I’m not prepared to do the work that I’ve done… and then have this happen.”
And Ganong made no secret of who she blamed for what occurred. “I hold the council members who are part of this finance committee as accountable as the CAO. The fact that we were forgotten about is not acceptable.”
Councillors Michael Kaile, Alison Morse and Rob Wynen sit on the FAC.
But not all committee members had such a problem being left out of the discussion. “I sort of view us as a backstop on overall policy direction and giving a bit of community input on that side,” says John O’Donnell.
“I guess yes, we could have been consulted. But I’m not sure we would be in any way saying yay or nay to going forward in a particular direction… This whole notion of consultation implies if we don’t agree, then it won’t go forward. Where of course in this case it wouldn’t be so – it’s council that has the final decision,” says O’Donnell.
Wagner concluded he wasn’t trying to debate whether the community centre budget increase or funding sources were right or wrong. “The point here is that we were not given an opportunity to provide our input.”
“Council has a right to make its own decisions, but we have a responsibility to provide our best perspective and an objective view of whether we are supportive or not supportive, or if we identify risks of matters of significant financial impact to the community and to the residents of Bowen Island,” says Wagner.
“I just hope we have an understanding in the future that this is not a situation that will recur.”
