PITT MEADOWS, BC – On March 28, Council heard a presentation from the Vancouver Fraser Port Authority (the port authority) that outlined significant affordability challenges related to the Harris Road underpass that is putting the project at risk. The port authority requested that Council commit by mid-April to become a funding partner and provide 25 percent of the project costs, up to $49.6 million, to help close the project funding gap.
“Becoming a major funding partner for the Pitt Meadows Road and Rail Improvements Project, represents a significant departure from Council’s key principles and the previous project agreements,” says Mayor Nicole MacDonald. “However, the Harris Road underpass remains a critical piece of infrastructure that will improve livability, business viability as well as enhance the public safety of our residents. Without the underpass, the Harris Road at-grade crossing will remain one of the top three percent riskiest rail crossings in the country.”
Key Cost Drivers
In 2018, when the Harris Road underpass was first announced, the project’s estimated cost was $63.3 million and was estimated to be completed by March 2023.
Estimated project costs have since tripled to over $195 million due to numerous cost drivers including:
- Significantly higher construction costs due to supply chain issues, and record levels of inflation;
- Recent changes in seismic design and code requirements;
- More challenging soil, groundwater, and environmental conditions than anticipated;
- Increased construction complexities in relation to archaeological conditions; and
- An extended project schedule with the earliest possible completion now expected in 2027.
Cost Reduction Opportunities Explored
In late 2022, the port authority confirmed project affordability concerns with the City. Since then, the port authority, Canadian Pacific (CP), and the City have worked collaboratively to explore options for cost reductions without compromising the core project objectives, with the results of these efforts showing that there are no substantive opportunities to reduce project costs.
Tax Payer Implications
To borrow $49.6 million over a 30 year term and meet the port authority’s requested commitment, Pitt Meadows taxpayers would be required to pay an approximate tax increase of $300 or 12 percent for the average single-family home.
“Every year, staff and Council work hard to prudently manage taxpayer funds while maintaining current service levels and balancing a multitude of competing priorities such as ensuring the sustainability of City infrastructure and saving for the future,” says Chief Administrative Officer Mark Roberts. “Even though Pitt Meadows is ranked among the lowest for single-family home taxes in the Metro Vancouver region, adding an additional tax burden will be difficult for residents, especially amid rising cost of living and interest rates.”
Next Steps
Possible Outcomes
If Council supports becoming a funding partner, the next step would be to seek assent of the electors through an assent vote process to borrow $49.6 million. A $5 million contribution to help cover a portion of the costs spent on the project to date has also been requested, regardless of the outcome of the assent process.
If the project partners cannot close the funding gap, the port authority has indicated it will not be able to lead the Harris Road underpass into construction.
If the Harris Road underpass does not go forward, Pitt Meadows would not receive noise mitigation nor the relocation of heritage buildings, and CP still has the right to build additional tracks within their right-of-way. This will mean a continued increase in train traffic and delays at the Harris Road crossing.
This challenging decision will be weighed carefully by Council while considering other future needs such as the sustainability of the City’s aging infrastructure and community livability. The City is committed to continuing to advocate to senior levels of government for additional funding for this project.
Community Feedback
Residents are encouraged to share feedback and preferences for the project’s future. Feedback can be shared at haveyoursaypittmeadows.ca/underpass.
To watch the recorded March 28 Council meeting visit pittmeadows.ca/councilmeetings. To learn more, visit portvancouver.com/pittmeadowsroadandrail or pittmeadows.ca/roadandrail.
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For more information please contact:
Carolyn Baldridge
Manager of Communications & Community Engagement
City of Pitt Meadows
cbaldridge@pittmeadows.ca