SOS Related Costs
An excerpt from the report:
Cost Implications of the Judicial Review
The most vocal opposition to the establishment of reserved streetcar lanes on St. Clair Avenue was a group called Save Our St. Clair (SOS). When the Minister of the Environment rejected SOS’s request for more work on the environmental assessment, SOS requested a judicial review of Council’s authority to undertake the project. This legal proceeding is proving to be unusually complex and time-consuming and, while this issue is before the courts, the project, whose construction was started in October 2005, has been stopped and is on hold.
As a result of this uncontrollable situation, the project is incurring additional costs which were never planned or budgeted for. These are:
· legal costs associated with the judicial review process;
· contract penalties which result from the court’s decision that the project should not proceed and the associated requirement to suspend the contract construction work which was already underway;
· the cost of replacing streetcars with buses for a longer-than-planned period of time because the streetcar tracks had begun to be dug up and rebuilt and, with construction suspended, the streetcar tracks are not usable;
· the cost of restoring the intersection of Yonge Street/St. Clair Avenue to a safe and operable condition pending resumption of the construction work which was halted; and,
· inflation of costs resulting from the fact that work scheduled for this year will now have to be done in 2006, and the work scheduled for 2006 will have to be shifted to 2007. Additionally, construction material and equipment which were ordered and on property for use in 2005 are currently sitting unused, and there is a cost associated with the TTC carrying these materials.
The cumulative financial effect of this externally-driven disruption and delay to the project is estimated at $2.7 million, the majority of which is attributable to delay-related cost inflation. These costs were not in the original budget and are over and above the originally-projected EFC for the project.
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