30 November 2007
PoCo Overpass Price Tag $132M
An artist's rendering by SNC-Lavalin of the
planned Coast Meridian Overpass, a north-south connector spanning the CP Rail tracks in Port Coquitlam. Construction is
expected to start next year and end in late 2009.
Port Coquitlam British Columbia - The price tag to build
the largest - and most controversial - infrastructure project in Port Coquitlam's history has ballooned to $132 million.
And PoCo taxpayers will be on the hook to make up for part of the $33.3 million shortfall.
According to city documents released Friday, the city plans to hike property taxes by 2.4% over the next two years - about 1.2% in each
of 2008 and 2009 - to pay for the Coast Meridian Overpass (CMO), a north-south viaduct spanning the CP Rail yard that's
aimed at easing the city's current gridlock and accommodating future development in northeast Coquitlam.
That translates to $28 more next year and an additional $27 in 2009 for an owner living in a home assessed this year at $440,673.
The city said it doesn't anticipate the bill to go any higher as the design-build contract is a fixed price.
The contract, which is expected to be awarded to SNC-Lavalin Constructors (Pacific) Inc., includes the cost of building
the four-lane viaduct, land acquisitions, CP Rail access, and impacts, utility relocation, legal, and engineering
services, and contingencies.
The proposed funding sources are:
- $65 million from TransLink and external agencies;
- $33.6 million from city reserves (land sales, major transportation, other);
- $33.4 million from developers' fees and external borrowing through the Municipal Finance Authority.
"This is going to cost us a lot of money," said CMO opponent William Issa, who's in negotiation with the city to buy a part
of his property for the viaduct. "The city is going to be in debt for the next 50 years because of this and it's going to damage
the properties on Coast Meridian Road."
With the new numbers rolled out, "I think there will be a good turn-out at the public meeting," he said.
The city is hosting an open house at the Hyde Creek rec centre (1379 Laurier Ave.) 6 Dec 2007 at 7 p.m. to provide
information to the public on the overpass design and costs.
Coun. Darrell Penner, co-chair of the city's public works committee, said he doesn't know what kind of reaction the new
budget will yield. "It's difficult to know for sure," he said. "I've had people talk to me and they just want to get it
done. We are at a point now that we get it done or not, and with the $60 million from TransLink, we can't turn that down."
Penner said if the project doesn't go ahead as scheduled, the city would have to forfeit the $60 million grant.
Until now, the city has stayed mum on the final numbers until a preferred contractor was chosen (the other two bidders were Bilfinger
Berger-BA Blacktop Joint Venture, and Peter Kiewet Sons Co.).
The project - due to be complete in late 2009 - was originally budgeted to cost $40 million in 2003, when it was planned to be a
two-lane viaduct.
Since then, the bill has swelled from $60 million to $70 million to $91 million and, earlier this year, to $98.73 million. The latest
figure was based on a conceptual design, said Igor Zahynacz, PoCo's director of operations, noting the actual scope of the project
couldn't be ironed out until the city reached an agreement with CP Rail about how and where to build the overpass.
As well, the city said the current construction climate - in the lead-up to the 2010 winter Games in Vancouver and
Whistler - pushed the figure higher.
In June, PoCo city council said it would consider killing the project if the numbers were too high. City manager Tony Chong said then
the bill was rising between $700,000 and $1 million for every month the city waited to get the overpass
built.
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