Cost overruns at Hillsburgh fire station reach $300,000

Cost overruns at the Hillsburgh Fire Station are now in excess of $300,000 – primarily due to soil contamination issues.

On Nov. 20, councillors here had a chance to review correspondence by architect Joe Somfay and presented by Erin fire chief Dan Callaghan.

In his report Somfay noted that, as stated in previous correspondence in April, “extra costs were encountered in the first phase of the project due to the discovery of poor organic soils buried deep in the site and because of grade changes mandated by the Credit Valley Conservation.”

At that time, council agreed to increase the project’ contingency fund by $150,000, which was thought to be adequate to complete the project.

Somfay’s report indicated that further testing of the subsoil conditions within the footprint of the then existing building and its front driveway/apron identified similarly poor soils at similar depths to Phase I in addition to cadmium contaminated soils in the area of the driveway.

“The excavation and disposal of the organic fill, found at about nine feet below grade in Phase II, was determined to be the most cost effective (a number of other structural options were examined and were considered more costly) and we issued a change directive for the contractor to proceed with Soils Engineering supervision to ensure that the work was done efficiently, effectively and accurately,” Somfay said in his report.

“Extensive testing for chemicals was undertaken to locate the exact area of cadmium contamination to minimize the area of excavation and subsequent removal of this material. The localized area of cadmium contaminated soil was excavated, the material stockpiled on site and used as backfill at the west end of the new building. This contaminated soil can legally remain on site. Its disposal costs and trucking to facilities located in Chatham would have been exorbitant.”

Somfay continued, “More recently, the same layer of buried organic material is the reason for changing the septic system design and construction such that this soil need not be taken out entirely. We believe that the new system will be within the originally estimated septic system costs. The septic system is located between the new building and Trafalgar Road. This new system will also accommodate the retention of the eastern row of trees and be appropriately located to not interfere with the neighbour’s well.

“All of this work was deemed necessary by the structural engineers, soil engineers and civil engineers.”

Somfay stated the extra costs encountered and forecast to the end of the project, identify that the extra costs due to soil conditions will total $254,000 (plus HST) whereas extra costs related to the building only total $66,000 (plus HST).

As such, Somfay anticipated that after the reconciliation of the various cash allowances (plus and minus) that a further $40,000 is required to be added to the contract.

Callaghan said the additional cadmium contaminated soils were the result of a fire which occurred in front of the Hillsburgh station in the early 1990s.

“To deal with those contaminated soils and the buried inorganic material, we have again come to council looking for additional funds.”

Mayor Maieron said in viewing the extra costs, the project appeared $320,000 over budget.

Callaghan said money is being moved into different categories as the project moves along. He said money had been set aside for a number of the different changes [aside from the soil].

Somfay’s report stated the total value of the extra costs amounted to $319,853.

Callaghan agreed the total value of the extra cost is correct, but much of that was budgeted for in the building project.

Maieron wanted to know how much over budget the project is.

“We are going into our budget discussions [for 2013] so council needs to know how much over budget this project is,” said Maieron.

Councillor Barb Tocher estimated it would be $190,000 – based on the initial $150,000 contingency approved by council and the further $40,000 requested.

Councillor John Brennan asked about the contaminated soil. He asked where it would go.

Callaghan said that because there was contaminated soil, a lot more testing was done. He said if the soil was to be taken off-site, it would have to meet another set of regulations.

Callaghan said some of the soil has remained on site.

“It is not a danger on-site, but a type of slurry wall has been put up to contain it.”

A nine-foot-deep trench was dug into the soil and filled with cement, which Callaghan said would keep the contaminated soil in its current location.

Callaghan said some of the lesser contaminated soil was allowed to be used as backfill.

He added the contaminated soil will be underneath a parking lot. But it cost money to contain it.

Callaghan said the hope is to recover some of the money from the original polluter – a battery fire from the 1990s which occurred in front of the fire station.

The challenge, he said, is to find that original polluter.

Council agreed to further increase the contingency amount of $40,000 to deal with ongoing soil issues.

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