Risk Analysis:
There is a moderate risk to the integrity and reputation of the City for working in good faith with its community partners.
Financial Matters:
City Council already approved $4,310,000 for this project (7162006 - LRWRP Diesel#2Dist Switch Gear) in various iterations of the Capital Budget. Several factors have impacted the total project costs from the original budget estimates and include the following: the participation in the Global Adjustment program, poor soil conditions, changes in the US- Canadian dollar exchange rate, and additional scope requirements for related equipment replacement. Fundiung for the LRWRP Diesel & MCC Upgrade project was approved by City Council as part of the 2011, 2013, 2016 and 2019 Capital Budgets as follows.
| YEAR | BUDGET APPROVED |
|---|---|
| 2011 | $1,500,000 |
| 2013 | $500,000 |
| 2016 | $500,000 |
| 2019 | $1,810,000 |
| Total | $4,310,000 |
A detailed breakdown of the project’s current financial position and tender costs is provided below:
| DESCRIPTION | AMOUNT |
|---|---|
| Consultant (Dillon) - Original | $297,500 |
| Consultant (Dillon) – Addendum #1 | 53,800 |
| Consultant (Dillon) – Addendum #2 | 62,187 |
| Consultant (Dillon) – Addendum #3 | 55,800 |
| Construction (Rorison) | 3,821,640 |
| Non-Recoverable HST (1.7602%) | 75,529 |