The Wayzata City Council, in a 3-1 split vote, approved $165,830.98 in change orders for the Panoway Lakewalk project during their November 12 meeting. The vote highlighted ongoing concerns about project oversight, contingency planning, and the transparency of financial decisions.
Change Orders and Costs
The approved change orders addressed unforeseen construction issues, including:
- Pile Obstruction ($18,498.15): Removal of a boulder obstructing pile installation.
- Ice Breaking ($22,228.93): Clearing ice to allow for precast beam placement during winter.
- Hydrocrane Setup ($23,091.97): Required crane work to place beams near the railroad due to winter conditions.
- Remaining Acceleration ($60,441.93): Costs tied to an additional barge and crane to expedite work.
- Railing Stiffeners ($41,570): Reinforcements added to address structural concerns with cable rail tensioning.
These costs pushed the project beyond its contingency funds, raising questions among council members about planning and accountability.
Budget Overview
City staff reported that the Panoway project remains $55,436 under budget, aided by a $258,971 sales tax credit and reallocated resources. However, the original contingency—a modest 3.8% of the total budget—was exhausted early, necessitating council approval for subsequent expenses.
Some council members questioned the decision-making process, with Council Member Ken Sorensen stating, “If this is work that wasn’t in the contractor’s contract, and it should be very clear if it was or wasn’t, the city probably owes them that money.” Sorensen continued, “I think the issue is, why do we incur these change orders and have they been appropriately scrutinized?”
Discussion on Accountability
Concerns were raised about the transparency of decision-making, particularly regarding the responsibilities of designers and contractors.
Council Member Jeff Parkhill remarked, “I think maybe we were a little optimistic on the 4% contingency. That may have been oversight by anybody involved with this. I’m feeling the same way about not being involved in some of these decisions, and for example maybe we could have gotten rid of the step downs if we knew they were going to cost us, x amount per year, an amount that wasn’t budgeted for and an additional $63,000. I know in building there is always unforeseeable things…“
“At this point I don’t think we have a choice, I think we have to pay for this but I think my biggest request is some transparency and clarity. We are up here forced to make a decision after the fact and it’s really not fair to us, it’s not fair to the community either,” continued Parkhill. “Watching some of these budgets go through it’s like holy smokes… it’s a bureaucracy.”
City staff acknowledged that some issues stemmed from unforeseen conditions, such as DNR permitting delays and deeper-than-expected piling requirements. Bob Janssen from Kraus-Anderson added that the project’s unique nature introduced risks that were difficult to anticipate.
Council Member Molly MacDonald questioned the step down change orders and work that appears to have been stopped, “I’ve noticed some of this skeleton down there that has been started, there’s a large piece of equipment that is sitting behind a sidewalk closed sign for quite some time.” MacDonald continued, “These design changes have not been seen by this body, will that skeleton down there, will that always be there?“
Mouton stated in response, “Decisions are being made outside of the purview of the council, I think is what I am hearing from council member MacDonald, and this council will be asked to approve the cost, we haven’t seen the design revisions, we don’t know any information about it, again, seems like there is a bit of a disconnect, being asked to approve something after the fact… it’s too little too late.“
Future Implications
The council also discussed pending change orders, particularly related to step-down adjustments for seasonal removability, which are under review. Council members expressed frustration at not being consulted earlier, with Mayor Mouton stating, “I don’t think I’ve ever seen this process play out this way.” Mounton continued, “I’m not comfortable saying yes to $165,000, this is work that is already done.“
Council Vote
The motion passed 3-1, with Mayor Mouton opposing. She expressed concerns about relying on funds not yet received and criticized the piecemeal presentation of information. Council Member Parkhill supported the motion but shared dissatisfaction with the process, saying, “We’re left to approve bills for work already completed, and that’s a difficult position to be in.”
Despite the challenges, the council remains committed to completing the Panoway project within budget and delivering a high-quality public space for Wayzata residents. This decision underscores the need for improved planning and communication as the project enters its final phases.
This article has been updated to reflect broader comments by the council members.
