Council Refers Budget Decision

Council Refers Decisions Regarding Creston Emergency Services Building Construction Budget To 2022 Budget Process

Creston, B.C., September 22, 2021: During their Committee of the Whole meeting held on September 21, 2021, Town Council made the recommendation to refer decisions regarding the construction budget of the Creston Emergency Services Building (CESB) and options for the existing Fire Hall to the Town of Creston’s upcoming 2022 budget process.

The recommendation comes after the staff presentation detailing cost implications now that the majority of tenders for the new building have been received. As a result of COVID sourcing and supply issues, these tenders have come in at 10-25% over anticipated, increasing the construction budget required to complete the building. Council also received information on funding options to cover the costs without any increase to taxation or changes to scheduled 2022 capital projects,

“While this is not an optimal situation, it is not completely unexpected,” said Mayor Ron Toyota. “Cost increases are being experienced in the construction industry across North America due to extremely limited product supply. There’s no way around the fact that COVID has impacted the cost and supply of all goods, and there is no data to suggest that costs and supply will improve anytime soon. We can only plan with the best information that we have right now,” he added.

Construction of the new building on Cook Street is well underway as tenders are being issued in sequence.

“We’re extremely pleased to see the building taking shape, with the foundation, walls, and roof in place,” added Mayor Toyota. “We are looking forward to the completion of this new facility that we can all be proud of.”

Chandos Construction along with Town staff and community volunteers from the Technical Building Advisory Committee continue to meet weekly to oversee construction management with an eye to reducing costs while ensuring functionality. To date, this process has reduced costs of previous tenders by approximately $500,000.

“The areas where we are seeing the greatest cost increases are mechanical (approximately $400k higher than anticipated), concrete supply (approximately $300K higher than anticipated), openings (windows, doors, etc. approximately $200K higher than anticipated) and finishes (approximately $150K higher than anticipated),” said Michael Moore, Chief Administrative Officer. “We have also made considerable modifications to reduce costs wherever possible through changing products and methodologies. Since March, we have reduced $500,000 in costs through value engineering, and we will continue this process. Now that the majority of tenders for the big-ticket items are in, we can more accurately plan for completion at the best possible price and value for our community.”

The presentation made to Council gave an overview of the options available for Council’s consideration during the Town’s 2022 budget discussions which will begin in November. The presentation summarized the current funding model including partner contributions from the Regional District of Central Kootenay (29% of project cost) and BC Ambulance (15% of construction cost), as well potential revenue from the sale of the existing Fire Hall and Ambulance Station. Council also made the recommendation to issue a Request for Proposal to determine if there is an alternate community use for these buildings prior to selling.

“We are so close to this building being finished and move-in ready. Council continues to be committed to completing this project to ensure we can meet the health and safety needs of our first responders, while minimizing financial impact to our community,” Mayor Toyota stated.

The Creston Emergency Services Building is scheduled for completion in spring 2022.

To view the PowerPoint presentation presented to Council, please click here.