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Council approves review of capital project management

The City of Prince George will be hiring external consultants to review the city's capital management procedures, after council approved the move on Monday night. The decision came after council received a report that the city spent an additional $8.
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The City of Prince George will be hiring external consultants to review the city's capital management procedures, after council approved the move on Monday night.

The decision came after council received a report that the city spent an additional $8.58 million on overbudget or unbudgeted capital projects in 2020 (see story).

"This is long overdue," Coun. Brian Skakun said. "It's really unfortunate we had to hit a bottom, if you will, to get to this point.

The estimated cost of the review is $180,000, acting city manager Walter Babicz wrote in a report to council. On Monday, Babicz said the plan is to have the report completed by the end of the year.

The review is expected to include a look at the current state of the city's project management; identification of best practices and review of other communities' practices; a list of recommendations; proposed changes project management policy and procedures; and a new manual and training for city staff, Babicz wrote.

The review will also look at things like when to hire external consultants or obtain legal advice regarding contracts, he added on Monday.

"This is a step in the right direction," Skakun said. "(But) none of this will matter... if administration is not upfront with us and upfront with the public."

Coun. Cori Ramsay said the city's current processes for managing capital projects "need some work," but progress is already being made.

The reports that came before city council on Monday night, detailing the cost overruns and  use of the city manager's delegated authority, were a step towards greater communication and transparency, she said.

"Things could have gone a lot better, and we know that," Ramsay said. "It's not a fun place to be, but it is an opportunity to do things differently. I think it is really going to change how we do business for the better."

The review will hopefully lead to changes that will streamline the process, shortening the time between the initial budget estimate and the beginning of construction, Coun. Frank Everitt said. Shortening that timeframe should result in more accurate budget estimates, he said.

"It's one of the steps we're taking, but it's not the only step we're taking," he said.

While major cost overruns like those on the parkade and new firehall grab the public's attention, Coun. Murry Krause said, it's important to remember the city also brought in many projects on or underbudget as well.

The international standards and guidelines developed by the Project Management Institute, which were endorsed by the B.C. Auditor General for Local Government before the office was disbanded, call for transparency and accountability throughout the process, Coun. Garth Frizzell said.

"At each stage in the cycle, there is a tremendous amount of reporting," Frizzell said.

Mayor Lyn Hall said the final report will provide the city with continuity around project management.

"This could be a very, very workable tool for staff," Hall said.

Once the report is complete, it needs to get the buy in at all levels of the city, Coun. Terri McConnachie said, not just "sit on a shelf."

"The $180,000 is going to be money well spent," she said. "This is what our community deserves."