Construction at the Shannon Lake-Bartley-Stevens roundabout on Apr. 28, 2021. (Photo/City of Kelowna Facebook)

Construction at the Shannon Lake-Bartley-Stevens roundabout on Apr. 28, 2021. (Photo/City of Kelowna Facebook)

Money makes Shannon Lake-Bartley-Stevens roundabout in West Kelowna go ‘round

‘It freaks me right out that we’re seeing these increases and we’ve got so much on the go’

It’s costing the City of West Kelowna an additional $408,000 to finish work connected to the Shannon Lake-Bartley-Stevens roundabout.

The work includes a pedestrian/cycling path to Highway 97 down Bartley Road, and a sanitary sewer pipe to the public works building. The original budget was done in Sept. 2021 and came in at $400,000. The contractor came back to the city months later indicating construction costs are significantly higher in 2022, including increased fuel prices, a doubling of asphalt oil costs, and general inflation affecting the price of construction materials.

The cost to complete that portion of the project is now estimated at $808,000.

Coun. Doug Findlater questioned staff if council would see an escalation of costs with other city projects.

“This could be huge,” said Findlater. “It freaks me right out that we’re seeing these increases and we’ve got so much on the go. We’re spread out so thin.”

Staff responded that projects are designed with the ability to reduce their scope, and also contain a contingency and escalation component.

“Those three things working together, we’re trying to minimize those impacts, but those costs are very real,” said Paul Gipps, city administrative officer.

The entire project will now cost just over $7 million, with the additional $408,000 coming from development cost charges and capital reserves.

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@GaryBarnes109
gary.barnes@kelownacapnews.com

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City CouncilCity of West KelownaConstructiondevelopmentinfrastructure