City eyes audit of north end sewage plant mega project

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This article was published 30/11/2023 (678 days ago), so information in it may no longer be current.

The most expensive infrastructure project in City of Winnipeg history could be audited next year, if council approves.

In a new report, the city’s auditor proposes to complete a “limited scope engagement” on the $2.336-billion north end sewage treatment plant upgrade in 2024.

The report says the probe would aim to “provide assurance that the city’s resources are being used economically and efficiently” on the mega project.

Coun. Brian Mayes, chairman of the water and waste committee, said it’s not unusual for the city’s auditor to select a specific project to take a closer look at, noting outdoor pool safety and fleet management are among various services audited in the past.

“It’s not that anything’s gone wrong. I think, (it’s) just the sheer enormity of the project … I think they’re trying to just get out in front of it and try to make sure rules are being followed,” said Mayes.

“North end is shaping up at over $2 billion between three phases, so I’m not shocked that the auditors want to start looking around.”

The councillor said he believes the audit is a positive step, which he will vote to support.

“The numbers are so big, it’s sort of hard to get your head around them … I hope (this) gives the public some sense we’re not just heading down a (multi-) billion-dollar pathway without really thinking about it.”

The price of the north end sewage plant upgrade has nearly tripled over time.

The entire three-phase project was once expected to cost $795 million to complete, less than the latest revised price of $1.035 billion just for its second biosolids facilities phase.

“I think there’s some value in having the auditor go in at the front and saying … ‘(with) more than a decade-long project, let’s make sure we have everything moving along as we understand it,’” said Mayes.

A taxpayers advocate applauded the proposed audit.

“I think it’s very important and good to see that the auditor is going to try to figure this out. All too often, (when) prices of different projects skyrocket, politicians kind of just simply shrug their shoulders and take it as the cost of doing business … (this is) a good first step, for sure,” said Gage Haubrich, Prairie director of the Canadian Taxpayers Federation.

Haubrich said he hopes the audit will produce specific recommendations that help council control the mega project’s costs going forward.

“This audit needs to actually come out with actionable items that the city can do to reduce the cost … we don’t want this audit to be just for show.”

While Haubrich noted inflation likely contributed to the cost hikes, he stressed Winnipeggers are also facing high prices for just about everything, increasing the need to ensure property taxes and water/sewer rates are affordable.

The auditor also plans to assess affordable housing initiatives (to ensure the city meets obligations and achieves intended outcomes), the “maturity” of Winnipeg’s fraud risk management and the effectiveness of municipal recruitment and hiring processes.

The report says capital project estimates could also be reviewed upon council request.

A request to speak with city auditor Jason Egert was not granted Thursday.

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In an email, spokesman Adam Campbell said size is a key component that helps determine which projects should be audited.

“In general, the size, complexity, and cost of a project like the north end sewage treatment plant upgrade would all be considered as risk factors when considering areas to audit,” Campbell wrote.

He said Egert will be available to speak about the audit plan after the executive policy committee discusses it Dec. 5.

joyanne.pursaga@freepress.mb.ca

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Joyanne Pursaga
Reporter

Joyanne is city hall reporter for the Winnipeg Free Press. A reporter since 2004, she began covering politics exclusively in 2012, writing on city hall and the Manitoba Legislature for the Winnipeg Sun before joining the Free Press in early 2020. Read more about Joyanne.

Every piece of reporting Joyanne produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press‘s tradition, since 1872, of producing reliable independent journalism. Read more about Free Press’s history and mandate, and learn how our newsroom operates.