The City of Nanaimo could be putting forward another Alternative Approval Process with the hopes of securing funds for a new public works yard.
Last year city council decided to make a first attempt to gather electoral consent to borrow $48.5 million for the first stage of a four-phase plan to build a new Operations Centre to replace the current one, on Labieux Road, built in the 1960s. It was rejected by the public.
During a Governance and Priorities Committee meeting council was presented with three options to build what the city calls a needed facility, including the original option of borrowing $48.5 million to construct the fleet building, but general manager of public works and engineering Bill Sims said they were willing to make some concessions to save money.
“We proposed keeping the same options, but cutting out some of the other elements,” Sims says. “It was recommended to have council waive their bylaw requirement to build works and services.
“This would allow us to not do part of the Beban Park trailway, and it would also fund the fire training centre from another funding source.”
Sims says omitting that component, the project would still be the same, but just reduce the cost by $4 million.
The other option, according to Sims, would see both the fleet maintenance building and the administration building projects combined having a price tag of $90 million and Sims adds this option has the potential to save an estimated $10 million in future costs.
“it would be building the two highest priority items into a single project at $90 million,” he says. “The other components would be funded in the future but would not utilize borrowing.
“While $90 million is higher than $48.5 million, we would borrow the money now and that would save the interest costs on the other phases.”
He says this plan would also avoid any other inflationary costs in the future.
Sims says if successful, the amount borrowed represents the final cost with no surprises, but any other future expenses will be dealt with when they arise.
“In the future there will be other expenses to complete the redevelopment of the public works yard but they will be folded into the overall project plan, and they won’t be borrowed,” he says.
Sims says both projects are equally important, especially with the administration building holding a total of 150 workers who are charged with maintaining the city’s infrastructure and services.
If successful, the city says designs will be started next year with construction to start as early as 2026.
