INNISFAIL – The town will not begin construction of the heliport modernization project until some time in 2022.
At its regular meeting on Aug. 23, town council voted unanimously in favour of delaying the highly anticipated project after being told by administration there was concern over the state of the General Capital Reserve, which is earmarked as the funding source for construction.
Council was told spending big money for the heliport, along with other approved capital projects in 2021, the General Capital Reserve will be depleted to about $845,000, which is significantly down from the traditional amount of around $2 million.
“That is my concern, the depletion of that reserve, coinciding with the anticipation of less surplus at year’s end, which is a mechanism to fund that reserve,” said Todd Becker, the town’s chief administrative officer, who recommended deferring the heliport project until 2022 budget deliberations.
He said this would allow council to receive preliminary 2021 year-end projections and weigh the heliport project against other capital project priorities. In the meantime, heliport services would remain at the lnnisfail Airport, he said.
The Aug. 23 meeting also had council receiving tender quotes for heliport construction. Red Deer’s Timcon Construction Ltd. came in with the favoured bid of $489,955.
Council was told the total project cost -- which also includes a 10 per cent contingency, engineering and approvals, material testing and Operation Manual and training -- would come in at about $641,541. Last May, administration advised council the estimated total project cost had nearly doubled from an original projected price tag of $450,000 to almost $900,000.
Steven Kennedy, the town’s director of operational services, told council the town had 60 days to move on the quote. However, he added the price for the project, if it had to be delayed until next year, would still come in at “relatively the same.”
Kennedy also told council that even if construction started this year only hard surfacing would “probably” be completed and the heliport would not be ready for service in 2021.
The heliport’s operations were suspended in June of 2020 as it was not in compliance with numerous Transport Canada regulations.
Council unanimously approved a motion to direct administration to not proceed with construction this year and include the project in the 2022 capital projects list for deliberation.
“There is a lot of support for (the heliport) out there but I also understand and recognize what is coming at us or the new council over the next four years,” said Coun. Don Harrison. “I’ve said it many times and I will say it again today, it’s not going to be pretty. It is going to be quite a ride, and I think we need to be aware that we want to go into the next four years in a good financial situation.”
Mayor Jim Romane said he was concerned about putting off the project for another year because the price tag would “never get any cheaper," noting the cost presented to council had gone down “substantially” against prior estimates.
“I am concerned. Being that my term is almost up I don’t have much to be responsible for in a couple months here. But to put it off is a shame. It is a worthwhile project,” said Romane. “It’s certainly going to be a priority on your list for your 2022 budget, as long as we don’t jump ship on it and disappoint a lot of people that have been looking forward to it.”
Despite the deferral of the start of the project, it does give time for administration to work out a fundraising plan that could attract the community to become involved and raise a significant contribution toward the project.
Coun. Jean Barclay said she believed there were community members who would “love” to get into involved in a fundraising drive for the heliport, and not necessarily through a service club. She suggested to Becker a community fundraising committee that could look ahead to 2022.
“We have to participate no matter what. It is a town amenity,” said Becker, who recommended that a dedicated fundraising percentage be set for a committee, which should work under a “coordinated” program. “It just can’t be a free-for-all. It has to be a coordinated program. The town has to develop that program and council has to approve it.”
As for a percentage number, Becker said council should pick the number but it should be a “significant” one due to the financial risk that could soon come with other capital projects and large-scale expenditures the town will encounter later this year and beyond. “You decide what is comfortable as council. For me it’s 100 per cent,” said Becker, triggering laughter.
At the end of the discussion, council passed a motion to direct administration to come up with a fundraising program for the heliport project. A report will be brought back to council at a later date.
