In For A Penny In For A Pound.....

...and in the private sector heads would roll.

Woeful record of bungled projects

By SUN MEDIA

The $10-million pricetag for the Entertainment District shelter the city's building to assess and house the homeless is enough to make Torontonians scream.

The bigger problem is the ongoing issue of the city mangling its important projects.

As the local councillor, Adam Vaughan, correctly identifies it, the city's inability to deliver its capital projects on time and on budget is a massive obstacle for the city's future.

"The city needs to do a better job of managing its capital program. When we don't get services built, we don't get services delivered," Vaughan said.

The 40-bed shelter and assessment and referral centre cost the city $4.7 million to buy and was supposed to cost $560,000 to renovate. Opening was set for December, 2008.

This week, city council tacked another $1 million on to the already ballooning budget to complete the renovations and staff peg opening day for some time in March.

Total cost is now 90% over budget and the shelter will open 15 months late.

Vaughan questioned Shelter Services' "ability to get projects done on time, and getting it done within original budget estimates, and doing their due diligence before purchasing a building."

But when that issue is extrapolated on a city-wide basis, the magnitude of the problem is frightening.

The gold standard, so to speak, is the St. Clair streetcar dedicated lanes project, where the $65 million estimate became a project that's cost taxpayers more than $100 million and still isn't finished.

Wrestling this monster problem is especially important as the city embarks on a massive amount of spending over the next few years.

Billions of dollars will be invested replacing water and waste water pipes, on Transit City projects, and on preparing for the 2015 Pan Am Games.

Smaller projects, like refurbishing Nathan Phillips Square, can also easily grow.

The city's inability to manage its projects, keep its politicians from piling on frills, and stay even close to budget, has to be corrected immediately.

Toronto still has a good credit rating, and can borrow money at a reasonable cost. Without buckling down on its capital projects, the debt and borrowing costs could throw this city into a hole it will never be able to escape.