INUVIK
After more than a decade on the town's books, Inuvik is going to get its much-needed water treatment plant.

GRANT HOOD: Senior administrative officer says project will limit future spending. - NNSL file photo

However, the cost has increased to $19 million, almost double the cost originally estimated in 2007 and at least one councillor is worried the ballooning cost of the project could force future councils to increases water rates to pay the bill.

Inuvialuit Development Corporation-owned Nappaq Construction was awarded the construction contract of the new facility after council voted Jan. 28 to move the project forward. TK was one of two companies that submitted tenders on the project.

The Inuvik-based company proposal was more than $1 million cheaper than the other company that made a submission, making it the administration's recommendation to complete the treatment facility.

The worry that the costs could put the town in a tight financial situation are real, said Coun. Derek Lindsay.

"It's been put off for a few years so it would be nice to know when we will see some activity," he said, adding he is also worried about how future councils may have to handle paying for the high cost of the project now in terms of spending restraints.

Senior administrative officer Grant Hood said the project will limit spending in the future. However, the project will be a needed investment and serve the town for the next half century.

"It's designed to last 50 years and we can triple the size of the town and it will handle it," he said.

"It's a selling point for the future."

The town has spent approximately $2.6 million on the project already. The money spent was to secure the required equipment. The town still has at least one payment remaining. The money already spent, combined with the cost projected by Nappaq to build the treatment facility of approximately $17 million, brings the project cost to more than $19 million.

An additional $100,000 or so has been spent on storage of filtration equipment already built in Montreal. The equipment was built more than a year ago but when the town re-tendered the construction of the actual building, it delayed the project.

Hood said while the project has increase in cost, the town has mechanisms in place under the tender process to try and find ways to save money.

"There is an opportunity to go back to the tender and try to find cost reductions," he said.

"It's standard practice."

Coun. Terry Halifax said he was concerned that this final estimate could increase as work on the project begins when Nappaq begins initial groundwork, like putting in pilings for the structure. With a project of this magnitude, acting senior administrative officer Gary McBride said it's likely a contingency plan is in place for potential increases in cost which Mayor Floyd Roland confirmed.

However, he said if Nappaq isn't able to begin work on time it could delay the project and increase costs.

Coun. Joe Lavoie echoed this sentiment.

"If we keep delaying this, the costs could increase, and this is something the town desperately needs," he said, adding the costs have already increased from an initial estimate of $10 million back when the project became a council priority.

Council briefly discussed whether pulling the contract and putting it back out for tender was a possibility. However, Roland said it could become a dicey situation if they go back to the drawing board and could cost the town money depending on how the tender process was laid out.

"We have to be careful with contract laws if we talk about pulling this contract," he said.