On July 22 following an in-camera session, councillors here approved additional funds of up to $85,000 for the completion of Fire Station 50 in Hillsburgh.
In Erin Fire Chief Dan Callaghan’s report to council on July 16, he noted that $2,697,335 was previously approved for the construction of the Hillsburgh station.
“Due to cost overruns, we require an additional $81,161 to bring this project to completion,” said Callaghan.
Though ready to share most of the report in open session, Callaghan said due to potential litigation, at least part of the report would require a closed session discussion.
The original project cost, provided in a report from finance director Sharon Marshall in January 2010, was $2,090,495.
By May 2013, that amount had risen to $2,408,884 and with the most recent funding approval, the revised cost for the fire hall is now over $2,700,000.
Mayor Lou Maieron asked what the additional $81,000 request covered. Callaghan said part is covered under the litigation.
“Tell us the part that doesn’t involve litigation,” Maieron responded.
Callaghan said some involves finishing of the radio and telephone system, which were not done with the contractor. He also noted several thousand dollars has been spent on shelving and such.
“These items were not part of the original budget forecast?” asked Maieron.
Callaghan said money was set aside, but these are the actual costs. He noted additional costs were allocated for signage, blinds, antennas and to finish off the office furniture.
“I hate to be difficult, but this is a report I would have sent back for more information,” Maieron said.
The mayor then asked where this additional money will come from since it is not part of the 2013 budget.
Director of finance Sharon Marshall recommended it be financed with additional debt.
Maeiron said the fire hall is now over $500,000 over the original estimate. He contended a better communication plan was needed to explain to councillors why the project was this much over budget.
“To be fair, I can’t understand this.”
Callaghan said work was done to try to forecast the costs.
At the same time, Maieron agreed Callaghan and his staff did tremendous work to build the fire hall.
“But the report needs to explain why it is so much over budget,” Maieron said.
Callaghan said the project encountered significant costs due to soil issues at the site – over $100,000.
