NANAIMO — Harsh realities of cost pressures are hitting the City once again, this time with upgrades to heavily used Nanaimo Aquatic Centre (NAC).
Essential upgrades to the HVAC systems at NAC are on the horizon, with the project’s cost spiralling from a projected $5.7 million in 2022, to roughly $12 million in 2025, an increase approved by Councillors during a Wednesday, May 21 Finance and Audit Committee meeting.
Jennifer McAskill, City manager of facility asset planning, said not doing the upgrades was “not an option”, it was just a matter of timing with an expected two month closure sometime next year.
“The primary portion of this work is to replace two major air handling units that are currently inside the building. Picturing it as a B-line-sized semi truck inside the building and we need to remove all of that and replace it. There’s also quite a few hot water tanks and a lot of piping that needs to be done, so that’s where the shutdown piece comes in.”
The units remove excess humidity from the pool area and ensure comfortable indoor conditions.
McAskill said at present, they have a Band-Aid solution.
“Right now we’re managing it through exhausting 100 per cent of our inside air and bringing in new, makeup air but that requires a lot of energy because we then essentially open the door, throw it all outside then bring in new, re-heat it and bring it into the pool space.”
Further complicating matters is a grant from the provincial government’s CleanBC Communities Fund, covering just over $3.86 million of the total cost.
Opened in 2001, the Nanaimo Aquatic centre needs costly upgrades to its air handling units. (File photo/NanaimoNewsNOW)McAskill said delaying the project too long would jeopardize the funding, with a condition of the grant being it must be spent by March 31, 2028.
The required equipment also takes significant time to order and deliver, resulting in the project being brought forward for consideration now, as opposed to during fall budget discussions.
Darcie Osborne, City director of parks, recreation and culture, called the project “a must have” to ensure continued operation of the facility.
She said they would look at the best time of the year to complete the work, some of which would require a full shutdown of the centre.
“There are portions of this project that can be completed that would not impact facility operations and the service levels, and there are portions that require complete shutdown. We would do what we could to accommodate the public and their needs for their aquatic services through other aquatic facilities.”
Councillors were unanimous in their support for the increased budget, which will all come from reserve funding.
A total of $5.24 million will come from the General Asset Management Reserve Fund, while the remaining $1.5 million will be funded through the Facility Development Reserve.
Mayor Leonard Krog indicated he wasn’t happy with the cost increased, but admitted there was little the City could do.
“This is the kind of thing where the public says ‘you’re just spending money willy-nilly at the city and my taxes have gone up way too fast and too high and blah, blah, blah, and this is an example’, but this has to be done. We have a multi-million dollar investment that is used by thousands of citizens week in week out, we have no alternative.
He said the City does not control market pressures, available contractors or supply chain logistics, all factors which go into pricing for large-scale projects.
Krog added only a “good, first-class recession” would reduce cost pressures, but added “nobody wants a recession, but we need the facilities and we have to have these facilities so we don’t have much choice.”
Spending of reserve funding must still be approved at a future City Council meeting, but will likely form part of the consent agenda and not be debated again.
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