Overages Raise Questions: Who Pays the $75,000 Bill?

by Trinity Gruenberg

trinity@inhnews.com

The Verndale City Council held their regular meeting on Monday, August 11.

Safe Routes to School

Over Budget

Ryan Odden from Moore Engineering reported that the project encountered significant cost overruns due to unexpected issues, including extra driveway replacements, sewer cleanouts, and increased costs for seeding and signage that were not anticipated in the original plans. These overruns led to a budget shortfall of approximately $75,000.

Odden explained that the contract was structured as a unit price agreement, meaning the city is responsible for covering the additional costs. He outlined steps being taken to address the overages, including reaching out to the grant administrator for potential additional funding and planning further discussions with higher-level representatives to determine how to manage the financial impact.

The interactive traffic signs are currently being installed. While reviewing the punch list items, it was noted that some panels were cracked, and those will be replaced at the company’s expense. The seeding has taken well.

There were issues with the projected 937 cubic yards of material that needed to be removed but the actual amount removed was 1,836 cubic yards. This significant discrepancy resulted from an error in the computer model used for planning and unexpected site conditions, such as extensive root systems that required additional excavation...

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