Approval has been given to add $922,000 to cover the cost of building a new fire station on Norman Street.
A report to councillors from fire Chief Shane Caskanette said that while the project came in close to budget, “there is a construction budget shortfall with no funds for construction contingencies.”
Caskanette said substantial increases in construction costs, Ministry of Transportation intersection requirements, and increasing consulting fees added to the price tag.
The total estimated cost of fire station No. 2 is now $6.3 million. The additional money will come from three areas: $230,200 from the proceeds from the remnant parcel of land at 34 Norman St., $200,000 from the fire development charges reserve, and $492,500 from the issuance of debt.
The new station will replace the 58-year-old fire hall on St. Paul Avenue, which has reached the end of its life. It will be built on the playground area of the former Ecole Fairview property, which the city purchased from the Grand Erie District School Board for $2.2 million.
The report said staff recommends an additional contingency allowance of $537,500 be added to the project. Contingencies cover potential issues such as errors and omissions in construction documents, modifications to the project and unknown site conditions.
“Commencing construction as soon as possible is recommended to avoid escalating construction costs,” said Caskanette. “Additionally, there is some urgency in beginning construction as soon as possible before winter.”
Vicano Construction Ltd. submitted the low bid for the project at $5.375 million.
Vicano Developments Inc. bought the former school building and adjacent land for $1.76 million.