A level of oversight for the most expensive infrastructure project in Winnipeg’s history has not been done.
Last Friday the city released a report with the latest cost estimate of $1.8 billion for upgrades to the North End sewage plant.
The project is proposed to be done in three phases.
City Auditor Bryan Mansky says his department was not able to review the price projections for phase one in time for the report’s release.
In an addendum report to the Mayor’s Executive Policy Committee, Mansky says his department was notified of the phase one study in late December.
“The magnitude of this project and volume of documentation supporting it, combined with the length of time between when we were notified about the estimate and the intended date to bring the Public Service report forward, simply doesn’t allow sufficient time to complete an audit,” writes Mansky
The auditor suggest, since 2015 it’s been standard practice to review cost projections for large capital projects. Mansky also says the point of the audit is to give Council assurances the estimates are accurate before voting on the project.
The price of the project has more than doubled from original estimates.
“…the revised multi-phase approach to the project and the significant increase in the total estimated budget would typically warrant Audit to undertake a capital project estimate audit to provide assurance to elected officials that the underlying documentation supports the stated class estimate,” writes Mansky
Waverley West City Councillor Janice Lukes is concerned an audit has not been done.
“This is the largest project that the city's ever done, or going down the path to do then we really need to put a lot of scrutiny,” said Lukes
Not everyone around City Hall shares that view. Mynarski Councillor Ross Eadie says the fact numbers have been cleared by internal officials and two contracted firms is good enough for him.
“I'm confident that the class three numbers they're presenting have been gone through,” said Eadie
Executive Policy Committee is set to vote on the project next week, from there it heads to Council.
Mayor Brian Bowman was not available for an interview, but his office released this statement.
“The Mayor is reviewing the report and looks forward to considering it at EPC next week and discussing what role the Auditor can have going forward with regard to the estimate.”
