A bike lane on Steveston Highway could cost $2.5 million more than first anticipated with a total price tag of $11.5 million.
The original budget for the three-metre-wide separated "multi-use pathway" on the south side of Steveston Highway from No. 2 Road to Shell Road – which is scheduled to be built this year – was about $9 million.
But when the city asked for bids, they all came in significantly over budget. In a report going to city council, staff cited Inflation, a volatile construction industry and supply chain issues as reasons for the increase in costs.
TransLink has promised $5 million for the project, and the province is chipping in $500,000.
If the project is cancelled – which staff isn’t recommending city council do – they will lose this funding.
City staff is recommending council approve the additional $2.5 million, taking the money largely from the roads budget and some from the capital reserve fund.
Originally, city council had approved $3.5 million of city funds – largely developer fees – for the project, but if city council approves the higher budget, it would mean about $6 million will come from city coffers.
Given the anticipated higher cost to build the bike lane, the city has asked TransLink whether there would be additional funds for this project, but they have said there aren’t.
Other options, not recommended by staff, are to reduce the scope of the project or cancel it all together.
The bike lane was approved by city council in three phases – this budget just deals with the first two phases.
The third phase, from Railway to No. 2 Road is budgeted at $5.7 million. This is a separate project that will be done later.
The increased bike lane budget is on the agenda for next Monday’s committee meeting.
