The level of transparancy within the WestLRT project has always been terrible, but I'm still astounded by the conflicting reports on costs and the reasons for over-runs. The media has identified several causes for the budget shortfall, but these all answer more questions than they answer.
1. Trenching the LRT at 45 St caused the shortfall by eating into the contingency fund. This is not what the city said at the time. Funds were available because the quotes came in below budget, with additional funds added to the project from a separate transport reserve fund. These costs were fully known about before a shovel hit the ground.
http://www.cbc.ca/news/canada/calgary/story/2009/10/05/calgary-west-lrt-trench-ctrain.html
2. Land purchase costs have pushed up the price tag. Yet further reading of reports shows that overspends in this area are not included in the $1.46bn price tag. These costs will not be settled until next year, at which point the project team may have to come back to the city for additional funding.
3. Public art was not included in the budget. Whatever you may think of public art, it boggles the mind that their budget simply ignored an element that the city requires in all projects. However, it's not clear to me that the current budget includes the 1% either, since there seems to be some discussion about whether to ignore the requirement.
4. The Sarcee trail interchange was unfunded. I've seen this reported in the Herald, but surely it can't be true. The new interchange was included in the project scope from the outset, and the LRT could not have crossed Sarcee without it unless they closed the 17 Av intersection.
5. The city reportedly gave a $5 million underspend on the 69 St parkade to the CBE for the additional wing on the school. This is a small part of the budget, but it seems that it was done without council approval and despite school building not being a city responsibility. How and why did this happen?!
6. Landscaping costs have also been mentioned. Surely these would have been included in the additional budget? From the outset, landscaping has been upheld as a form of visual screening and sound attenuation. What else were they planning to do with the land adjacent to the tracks?
Two additional items don't seem to have been mentioned, but are also pertinent to understanding what went wrong.
1. The change of route between 11 st and Westbrook Mall. Reports initially indicated that this had added $20 million to the estimated cost -
http://www.cbc.ca/news/canada/calgary/story/2008/05/14/cgy-lrt-expansion.html - although we have been told by our Alderman that when the quotes came in, the revised route actually reduced the cost. Either way, this is not news and should have been in the approved budget.
2. Sound attenuation. The project tried to cut costs by not providing sound walls, in stark contrast to the other end of the line which has 8-10' high sound walls protecting all residential areas. Along WestLRT, the only sound barriers proposed from the outset protect Shaganappi golf course and the area by the new school. That's despite this line being closer to houses than any other in the city. Subsequently, the city has relented and started construction of sound walls along Bow Trail by Sovereign Cr. There is a further meeting about another short length of proposed sound wall later this month. These were not in the budget, but clearly should have been. Are the costs included in the budgets now being reported in the media?