News

City water project under budget

February 27, 2008
News Release

QUESNEL, B.C. – City of Quesnel residents on the Stennersen (DVC) water system will see a large difference in what they will pay for the extension of City water to their homes thanks to the project coming in well under budget.

The transition to City water for those residents came on February 20, 2007 following a lengthy process involving the City taking over a private water system after it had been abandoned by its owner.

The City had budgeted $504,000 to complete the new work required to connect the residents’ homes to City water. The final work was completed for $282,800, a savings of $221,200 that will be passed directly on to the residents by way of lower annual payments. Included in the amount to be paid by the residents receiving this service, is $450,000, which is their share of the original South Hill expansion costs.

There were a number of reasons for the project coming in under budget including  project management being done by City Staff, better contract rates for the work, and the budgeted contingency fund was not needed.

“I am very pleased with the results of this project,” said Mayor Nate Bello. “Not only are we providing an essential and high quality service to those residents by providing City water, we’re doing it for less than the amount they had already agreed to. This is a win-win situation to be sure.

The annual parcel tax charge will now be $625 as compared to $780, the original estimated amount, which was approved by the residents. The City sent letters to the affected residents this week informing them of the new cost information.  Residents may also choose to pay a lump sum payment of $7,255 before April 18th, 2008 rather than having an annual charge being added to their property taxes.

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