Nathan VanderKlippe
Northern News Services

Yellowknife (May 29/02) - Some city councillors think an inquiry into the cost overruns at the arena may be a good idea.

Coun. Blake Lyons opened the possibility of some sort of inquiry when he said, "I would welcome the possibility of a full investigation."

Lyons made the remark while defending people who have made decisions on the arena but did not have the floor at Monday's council meeting.

"Let's make it fair. Let's do it right. If we feel there's some element of it (wrongdoing), let's have some type of inquiry," he said.

Lyons spoke after Coun. Dave Ramsay said, "we were led down the garden path a year ago and we're trying to get led down the same path again."

His comments came during a debate on whether to award a contract to PCL for concrete work at the arena site. Council approved the contract.

Ramsay has taken a highly critical stance on the arena cost overruns.

Current estimates, said to be good to within two per cent plus or minus, say the arena will cost $2 million more than initially budgeted.

Initial suggestions were that the unforeseen costs came as a result of ballooning construction prices, particularly in trades work.

That's plausible, said Lee Sacrey, controller at Nahanni Construction. "The hourly wage per employee probably jumped; in 2000 the carpenter's rate in town was probably $18-$20 an hour, and now it's probably $23-$27, depending on the guy's qualifications."

But a growing number of councillors are voicing their dissatisfaction, some wondering whether these costs could have been anticipated.

Many have questions about where the cost overruns occurred, what steps project managers took to trim costs on the arena and how some of the costs escalated so high.

Coun. Dave McCann, in particular, is concerned that some contracts were awarded to bids that came in 30 per cent over budget.

Some of those questions will be answered by June 10, when administration has pledged to hand councillors two reports, one on the precise costs of the facility, another on the trimmed items.

But Ramsay is already reaching for an axe.

"Ultimately, council made the decision," he said. "But we also have staff that are there to police that, and that includes the senior administrator, the mayor and the director of the department (of community services). At the end of the day, if there's questions to be asked, they should be able to answer them."

Mayor Gord Van Tighem is remaining more cautious on the subject.

Asked if he was persuaded that market conditions were the primary contributor to cost overruns on the arena, he said, "That would have been part of it, but we're looking to find out if it's all of it. Right now we don't know."

Other councillors are also keeping talk of an investigation at a fair distance.

"I don't see the need to have an investigation or public inquiry," said Coun. Kevin O'Reilly, who added that the city would conduct a review after construction is completed as a matter of routine.

"I have every confidence that our staff and our advisors and our consultants are providing the best possible information to us.

"And if there's any evidence to the contrary, I'd like to see it," he said.

Coun. Alan Woytuik said he thinks any investigation will make one discovery: that market conditions drove costs higher.

Coun. Wendy Bisaro agreed, saying the anticipated reports from administration should answer most of her questions.

"I don't want anybody pointing any fingers anywhere. I don't think that's going to do anything," she said.

"If whoever set the price eight or 12 month ago had a crystal ball, we wouldn't be in this situation," she added.

"But it's guess work."