City reports stormwater repair at Magnolia required unplanned work; contractor and staff negotiated extra costs

3261055 · May 10, 2025
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Summary

Public works staff described an unexpectedly complex drainage repair at Magnolia that required deeper excavation and additional materials; staff said the contractor worked with the city to reduce what could have been a much larger change order and reported a budget overrun discussed at the council meeting.

Public works staff briefed the council on a recently completed stormwater replacement at Magnolia that encountered saturated soils and unexpected subsurface conditions, requiring deeper excavation and additional pipe work.

Staff said crews found saturated soil and groundwater when they excavated, requiring the contractor to extend excavation and install additional pipe and rock base. According to the presentation, the contractor planned a short job but reported onsite that the work took substantially longer than anticipated.

Why it matters: Staff said the drainage issue had been affecting nearby properties and that completing the work was necessary to stop recurring flooding. The city manager and public-works representatives emphasized communication with the contractor and that the firm agreed to negotiate its charges so the city would not absorb a much larger unexpected cost.

Numbers presented at the meeting were reported verbally and were internally inconsistent in places. Staff read an original proposed contract amount as $99,008.86 (the figure was read aloud in the meeting transcript), and then reported a final contractor amount of $165,767 with an additional construction cost of $65,881 and a budget overrun of $49,837.19. Staff characterized the conditions encountered as atypical and said the contractor worked with the city’s engineer and staff to limit further escalation. The public-works presenter concluded, “It was just a mess, but it looks good now.”

Councilmembers said the project needed to be completed and thanked staff for working with the contractor to keep costs lower than some worst-case estimates staff had read aloud during the meeting. Staff indicated the invoicing will appear on an upcoming consent agenda for final payment.