By Western News Staff Nov 01 2006 Penticton Western News
Mayor Jake Kimberley said it is possible the city could scale back the South Okanagan Event Centre project to make sure it is within its proposed budget of $56.1 million. While Kimberley said that will “hopefully” not happen, he held out that possibility as the city moves closer to signing a contract with a consortium headed by Giffels Partnership Solutions. Cutting back the project is not the only possibility facing the city though, said city administrator Leo den Boer. The city also choose to absorb any additional costs caused by rising construction costs, said den Boer, adding constructions costs have risen 1.25 per cent per month.
“I can say there has been a huge escalation in prices,” said den Boer. Other options include revising or delaying off-site improvements at the proposed SOEC site. “That is a political choice,” said Kimberley. This is the second time the city publicly acknowledged the cost of the project may go up. The first came last month when a deadline to sign a contract with Giffels came and passed without an agreement that included a price guarantee for the actual facility. When the city introduced the Giffels consortium as its preferred partner to help design and build the facility, company officials publicly promised to guarantee a construction price of $39.6 million. Den Boer refused to comment on whether the guarantee is still on the table. City staff are still negotiating a final construction price for the facility after input from users, he said. Den Boer said an agreement is imminent and a contract could be in place by Nov. 18 provided everything goes according to plan. That plan includes an independent review now under way — city staff refused to disclose the identities of the third party — and a special council meeting later this month when staff will present council with a list of possible additions and deletions to the project.
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Deal for construction said to be imminentBy
John MoorhouseWednesday, November 1, 2006 http://www.pentictonherald.ca/article_2349.php
Mayor Jake Kimberley remains hopeful the South Okanagan Event Centre can be built without impacting the project's overall $56-million price tag, as the city enters the home stretch in contract negotiations.The city announced Tuesday the signing of a design/build contract with Giffels Partnership Solutions is "imminent" following Giffels completion of the event centre drawings and specifications. The city has now commissioned an independent review of the drawings to ensure everything is in order.City administrator Leo den Boer said it's hoped the contract can be signed by Nov. 18 with on-site work to begin shortly afterwards. He said an intense round of negotiations with Giffels officials was held in Vancouver last week.The city missed an Oct. 18 deadline in which Giffels had guaranteed a firm price on the event centre itself, estimated to cost $39.6 million. Although the Toronto-based firm has suggested the base price could now increase by about 1.25 per cent, den Boer said the city hopes the hike won't be as significant as final negotiations continue."We're well aware construction costs are escalating," said Kimberley. "We're working towards a price and trying to meet that objective."Although the final decision will be up to council, Kimberley didn't rule out the possibility of postponing roadwork or other infrastructure projects included in the overall project, in order to keep costs in line.The city is limited to borrowing $36.1 million for the project, as approved by voters in the Sept. 11 referendum. Kimberley said despite any additional costs, council wants to keep the tax increase to two per cent, phased in over three years.A special council meeting to deal with the event centre contract will likely be held sometime after next Monday's regular council meeting."We've reached a stage where we feel we'll have no difficulty finalizing an agreement by mid-November," said Kimberley.A detailed geo-technical report has been completed and an independent quantity surveyor is reviewing the detailed drawings and technical specifications. City staff have been meeting with user groups over the past several weeks, seeking additional input into the final plans. Den Boer noted minor changes could be added right up until construction is practically completed.The city has suggested a ground-breaking ceremony with Premier Gordon Campbell be held in conjunction with the B.C. Liberal Party convention, which begins Friday at the Penticton Trade and Convention Centre. Some site preparation work has already begun at Queen's Park, as city crews removed the backstops and fencing surrounding the two larger baseball fields which will be relocated elsewhere in the city
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