Cartmell aside, this extra $242 million is... interesting. I am very concerned how the hell we suddenly need $242 million extra after already scaling back the project, but, how this all came about is interesting. Checked the June 11 council meeting agenda, figured it would be in Spring Capital Budget Adjustment. Nope. Turns out it is a bylaw item. This came to Council May 22 and we approved in camera. Apparently they needed to approve this by May 29 as that was when the bid for winning SLRT team expired.
I assume it was this item from the May 22 Special City Council meeting, under Private Reports
5.2
Procurement Update
Addendum
Sections 16 (disclosure harmful to business interests of a third party), 21 (disclosure harmful to intergovernmental relations), 24 (advice from officials) and 25 (disclosure harmful to economic and other interests of a public body) of the Freedom of Information and Protection of Privacy Act
From the report on the bylaw as part of the June 11, 2024 Council Meeting:
"The Capital Line South LRT: Century Park to Ellerslie Road project went to market in 2022 with the Request for Qualification (RFQ), and two bidders were subsequently invited to participate in the Request for Proposal (RFP) process. The bids received for the main Design-Build contract exceeded the funds allocated within the approved capital project budget. Economic challenges, inflation, supply chain disruptions and labour availability significantly impacted the construction market and costs. To alleviate funding shortfalls, the project team has worked closely with the preferred bidder over the past two months to reduce costs, while maintaining the project benefits in the business case. However, inflationary pressures, risk and market volatility have resulted in a remaining budget shortfall of $242 million. Details are provided in Attachment 4."
From Attachment 4 of the Bylaw 20866 package:
"Capital Line South LRT Extension
At the May 22, 2024, Special City Council meeting, Administration recommended to City Council to increase the budget for the Capital Line South LRT Extension project in order to award the design and construction contract to the preferred bidder prior to the bid expiring on May 29, 2024."
And further on:
"The preferred bidder’s bid was only valid until May 29, 2024. After that date, there was a high likelihood costs would further increase. Council approving the budget adjustment gives the City more time over the coming months to continue advocating for additional funding partner contributions"
From the Project Profile:
"2024 May 22, Council Minutes (Private Reports, #24-08): 16-66-7018 Capital Line South LRT Century Park to Ellerslie Road re-costing budget adjustment for an additional $242 million of tax-supported debt budget, which is made of $179 million in net-new tax-supported debt, and a transfer of $63 million of tax-supported debt from 11-66-1673 Valley Line Southeast"
And related to all of this...
A report on the options and cost analysis for the Ellerslie Road Grade Separation has been rescheduled with a revised due date of October 22, 2024.