Coast Meridian Overpass Cost Rises – Again

Coast Meridian OverpassThe City announced late on Friday that the cost of the Coast Meridian Overpass has gone up again by at least $3.4 million taking the cost of the CMO to over $135 million.  This latest cost increase is due to relocating utilities along Kingsway Avenue and land acquisition costs.

What is bothersome is that at the December 7, 2007 Public Hearing; the September 9, 2008 Open House and the Fall 2008 CMO Update email newsletter all mentioned that this was a fixed cost project at $132 million.  This was explained to mean that the City would not be on the hook for ANY cost overruns.  Apparently, this was not correct.

The debate on whether this project is good or bad is moot as construction has already started.  The questions on how could this Council allow the cost overruns and how communication has been poor still remain.

When I sat on the Official Community Plan (OCP) Committee in 2003, the cost of the project was $40 million.  It then went to $60 million then $70 million before I finished with the OCP.  I said at that time if construction did not start by 2007 this project will be in the area of $100 million.  In early 2007 the project budget jumped to $98.73 million.

At a City Council meeting in mid-2007 I asked of Council during the question period of a City Council meeting what the cost of the project would really be.  Port Coquitlam’s Chief Administrative Officer, Tony Chong, said that a proper figure could not be given however for each month of delay, he confirmed that cost was increasing by $700k to $1 million.  Quick math then dictated the cost would be roughly $110 million by the end of 2007.  In November 2007 the City announced the “fixed cost” contract was $132 million.

Residents in PoCo will be paying 1.2 percentage points each year on our property taxes for the next 30 years to pay for the project.  This means before we add any new services, improve any existing roads, buildings, etc. we have to start at 1.2%.  With this latest increase we are now looking at 1.4% to 1.5% each year for the next 30 years.  An increase that will be forced upon the new Council to approve.

Mr. Chong says, “We certainly don’t expect any most cost increases.” – this means that we could indeed have further increases, as has been the case over the last six years.

The figures and process relating to the Coast Meridian Overpass have been secretive throughout.  This has resulted in mistrust of the Council and questioning the competency of the negotiation process.

Communication is key.  If elected, I will ensure that such cost increases on future projects are minimized and communicated quickly and effectively with the residents.  There is no going back on the CMO but we need to learn from these mistakes and correct the process for the future.

About Dave

Dave Teixeira is President of Dave.ca Communications Inc.

6 Responses to Coast Meridian Overpass Cost Rises – Again

  1. shawn October 20, 2008 at 9:56 am #

    The connector was passed and the public was well informed dating back to the previous council before our current council if I stand correct.

    Obviously, the construction cost has gone up for the past few years and no such project is under budget. However, the province should be helping us out.

    About the negative signs, when we have a large number of candidates, someone is out to get another and I don’t allow that. But, look at our federal election, their ads and words deos set a bad example to our people especailly James moore handouts from his party. This guy may pretend to know you before, but once elcted, he doesn’t even know your face. Is this a negative comment? No, because it’s true. I have email him and never had a reply or a phone call even though I’ve elected him three years ago.

    I am getting tired of elections.

  2. Dave Teixeira October 20, 2008 at 10:56 am #

    Shawn – thanks for your comment.

    This council and the previous council are one in the same as all seven elected officials have formed the same Council since 2001. As the CMO was brought forward as more than just an idea during that time, “this council” is indeed responsible for the budgeting and communication surrounding the overruns.

    Sorry to hear that you have had negative experiences connecting with James Moore. I have found him and his office – especially his assistant Eva – to be nothing but professional and responsive. I know he holds a number of coffee talks, etc. perhaps that would be a good time to connect. I realize this does not replace getting a return call however I know your goal is to speak with him to accomplish something so this tact may work to that end.

    Thanks again for your comment.

  3. Arlene Crowe October 20, 2008 at 12:09 pm #

    As a resident that has raised a family in Port Coquitlam and found it to be the best, I am concerned with politicians and wannabes who put their own interests ahead of the community. Creating negative responses with local media or web sites, seems to me, not to have the interests of Port Coquitlam at heart. I have always believed, if its not positive, let it go and take the high road. The electors always have the option to call local politicians to clarify details, if indeed they are truly concerned with decisions. Thanks Arlene Crowe

  4. shawn October 20, 2008 at 6:10 pm #

    I have another issue. Someone help me out. Who the %$### approved the new Liquor Store near the Cat and Fiddle? Doesn’t that place caused enough trouble? If that family is involved, then get them the hell out of this city. They don’t give a sht about families, kids and neighbours and drinking and driving. How many liquor stores do we need for this small city? Who are the councillors that has a close relationship with this new liquor store owners, what did they pay them under the table to open it up.

  5. Dave Allen October 20, 2008 at 7:30 pm #

    It does not surprise me that the costs of the Coast Meridan Overpass have increased due to overruns ; I do not believe we as taxpayers have seen the end and will be faced with increase to our property taxes , due to ongoing cost pressures and the global credit crunch

    This is not an effective use of taxpayers hard earned dollars that in essence takes drivers from one side of Port Coquitlam to the other ,leaving a mess with drivers trying to merge into a bottleneck called the Mary Hill By-Pass Taxpayers could have been provided better options around transportation solutions without the financial headaches now facing residents. Dollars would then have been available for items such as supporting homelessness initiatives or having funds available to develop solutions around heritage which at present council does not appear to be interested in ensuring we do not lose our reference to our past

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  1. Coast Meridian Overpass not fixed-price? | Dave.ca Communications Inc. - November 24, 2010

    [...] to a figure of over $135 million – and a possibility of further price increases exist.  I wrote in a piece earlier this week where I stated I was shocked the cost had gone up since the City indicated this was a final figure [...]

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