Penticton City Hall. (File photo)

Penticton City Hall. (File photo)

Project delays and budget overruns due to COVID-19 in Penticton first quarter update

The city also received an influx of additional grant funding for projects

Penticton has had to delay a few of its planned 2021 initiatives due to COVID-19 restrictions.

In the city’s first quarterly economic update, provided by staff to council at the April 20 meeting, there were several projects focused on recreation that were put on hold.

The city was forced to delay two projects, including its recreation and culture service recovery plans and plans for support events and future destination development due to the recent health orders.

Updates to the 2021 budget were also presented to council, including additional grant funding and expenses.

The city received $2,954,250 from the Province of BC and UBCM for the Edmonton Avenue Child Care Centre, $49,000 from the BC Arts Council, and $1,543,097 to reflect the recently announced doubling of the Federal Gas Tax Fund funding for 2021.

READ MORE: Major investor picks up Penticton, Vernon rental housing

The report also noted that building permit revenues are being updated for another $100,000 following a strong start to the season.

Cancellation of the Junior A Hockey Championship in Penticton is expected to save the city $100,000, while the city’s upcoming byelection is estimated to cost $176,500.

Operation of the South Okanagan Events Centre is also expected to have an $86,012 overrun on costs due to COVID-19 restrictions.

Two other projects started by the city were completed over the first quarter, while the other 38 projects are still going ahead on schedule.

The third delayed project for the diesel peak shaving pilot project at the Okanagan Lake pump station hit COVID-19 delays with operations of the water treatment plant. That project was intended to see what impact the diesel generator at the pump station would be able to have during peak demand on the city power grid.

The pump is required to be run at least one hour every month, and the pilot project was originally planned to be completed in November, 2020.

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