Members of city council expressed concern Tuesday over yet another project that has come in substantially over-budget.

The preliminary cost of a new lift station on Range Road was pegged at $2.4 million.

As detailed design of the project progressed, it was determined an additional $500,000 would be required, which council approved in February.

But when the lone bid came in, the price was $4.5 million – requiring a further $1.5 million to cover the project. Council approved the $1.5 million on Tuesday.

The funding will be taken out of the capital reserve until it can be replenished after the city receives approval from the federal Community Building Fund, formerly the gas tax fund.

It was determined in 2020 by an engineering assessment that the best course of action to deal with the aging lift station was a complete replacement.

Mayor Laura Cabott expressed concern that council will see more and more projects come in over-budget, and that members will have to be strategic in how they deal with them.

In this case, she pointed out, there was only one bidder, but the project was still 38 per cent over the original estimate.

But there have been safety issues raised with the current state of the lift station, as well as the need to upgrade the mechanical systems such as electrical, Cabott noted, explaining her reluctant support for approving the budget increase.

Coun. Dan Boyd said there have been three or four of these types of projects being over-budget.

He asked if it might be a good idea to review the city’s capital budget and big projects where the city might be facing additional costs.

It would be his preference to have administration put together a list so council would have a greater sense of where the city stands rather than dealing with the projects one at a time.

In that way, the councillor said, council will have an opportunity to get a better idea of prioritizing which projects are the more important.

Acting city manager Jeff O’Farrell explained that from an operational perspective, departments are always reviewing their capital budgets.

The cost estimates for the lift station were prepared by a cost consultant, he said.

The administrative report prepared for council noted companies were contacted to see why they didn’t bid on the lift station replacement, and the main response was that they were already too busy.

Tracy Allen, the city’s director of operations, explained Tuesday significant corrosion is occurring in the lift station.

The mechanical system, in particular the electrical system, needs to be upgraded, she said.

Allen said once the lift station replacement is complete, the city will save between $20,000 and $25,000 per year in operating expenses.