Councillors call for B.C.’s auditor general to investigate North Shore wastewater plant cost

There is yet another wrinkle in the ongoing fight around the rising costs of the North Shore wastewater treatment plant.

Seven local city councillors representing five different cities have penned an open letter calling on B.C.’s auditor general to conduct an independent review of the facility’s finances.

The group wants Michael Pickup to determine why the plant is over budget. Three months ago, it was revealed the estimated costs for the facility had ballooned by $700 million to $3.86 billion.

Inflation is among the reasons speculated for the cost overrun, but these councillors think there’s more to it.

Couns. Linda Annis and Mike Bose of Surrey, Daniel Fontaine and Paul Minhas of New Westminster, Kash Heed of Richmond, Ahmed Yousef of Maple Ridge, and Richard T. Lee of Burnaby, say the project lacks transparency and accountability.

“The mismanagement of this mega project is staggering, and taxpayers deserve to know how it all went wrong and why they are stuck with the bill for the next 30 years,” said Annis.

“There hasn’t been any accountability for the nearly 450 per cent increase over the original budget of this project. The only thing we have heard is how much every taxpayer will have to pay over the next three decades,” stressed Lee.

“The North Shore project also casts serious doubt on the capacity and ability of Metro Vancouver to deliver the new Iona wastewater plant in Richmond, which now has a 15-year construction schedule and a $12 billion budget that is growing every few months,” said Heed.

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The $12 billion figure came from former Metro Vancouver Board chair George Harvie during a meeting held in mid-May. Metro Vancouver disputes that, telling CityNews via email, “The cost estimate is $9.9 billion ($6.7 in 2021, escalated to the end of project) and that number has not changed.”

The councillors haven’t retained legal counsel but say auditing the facility is within Pickup’s scope because the provincial government has contributed more than $200 million towards the project.

The group says this is likely, “the largest single budget overrun of a public infrastructure project in the history of British Columbia,” and believes it’s on them as elected officials to hold someone accountable.

The open letter comes after a motion calling for a public inquiry failed at New Westminster City Council following a 3-3 tie on Monday night.

Initially, North Shore residents were facing possible increases to their annual utility bills of $725 to cover the excess costs, however, under a new cost-sharing agreement reached late last month, they will see an increase of $590 annually. Residents living in areas serviced by the Vancouver sewerage area will see an increase of $150 annually, while those living in the Lulu Island and Fraser sewerage areas will see annual impacts of $80 and $90 respectively.