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Mediation Process Concludes

April 15 2016

Mediation occurred over a number of sessions through March and April 2016 and the mediation process resulted in a resolution of all claims and costs up until April 2016, except one. The mediation process did not deal with one item yet to be resolved, which is the fendering for the bridge.

The mediation process also resulted in a new construction schedule, shifting opening of the new bridge to December 31 2017, and total project completion, including removal of the old bridge, to March 31, 2018.

$27 million were the total claims against the City. As a result of mediation, the City’s share of the total funds required to resolve all claims totals $2 million. In addition, an estimated $462,000 will be paid related to additional technical support to be provided by Hardesty and Hanover.

Anticipated future costs, plus the mediation settlement, result in a request for an $8.2 million budget increase.

The budget increase reflects the mediation settlement, a recommended contingency of $2 million and the remaining costs to deliver the bridge. The funds are recommended to come from the City’s Building and Infrastructure Reserve fund. Fendering and costs for public realm elements around the bridge, will be determined in future.  If approved, the new budget for the Johnson Street Bridge will be $105 million.

A report about the outcomes of the mediation process and a request for increasing the project budget, will be discussed next Thursday, April 21, at Committee of the Whole.  The report can be viewed here:   https://victoria.civicweb.net/filepro/documents/96416?preview=102564

 

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