Wayzata approves $165K in Panoway project cost overruns
The Wayzata City Council approved nearly $166,000 in additional costs for the Panoway waterfront development project on Tuesday, though Mayor Muton dissented over budget concerns. The vote highlighted tensions between council members over project management and the timing of approvals for work already completed.
The council voted 3-1 to authorize change orders totaling $165,830.98 for the Panoway Project, which includes improvements to Lake Street, Lake Broadway, and other waterfront areas. Council Members McDonald and Sorenson supported the measure, but Mayor Muton voted against it, arguing that the city's budget relies on money not yet received, creating an effective over-budget situation.
The additional costs stem from unforeseen construction challenges, including unexpected underground obstructions, ice-breaking expenses due to project delays, and equipment rental for a hydro crane. Staff also requested funds for rail stiffeners and modifications to step-down structures that require annual removal and reinstallation. According to project representatives, these modifications will significantly reduce long-term maintenance costs.
Mayor Muton raised a procedural concern that troubled other council members: "These are all items that have already been done so why do you need our approval now?" City Manager Doll explained that unforeseen issues required immediate action during construction. Council Member Park Hill captured the council's reluctant position, stating: "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."
In other business, the council unanimously approved Resolution 46-224, officially canvassing the November 5 election results. Andrew Mullen was confirmed as the incoming mayor, while Alex Pish and Ken Sorenson were re-elected to the council. City Manager Doll praised election staff for their exceptional service, noting that Wayzata residents "are treated like you're the person that matters." The council also recognized Police Chief Mark Schultz, who is retiring after 27 years in law enforcement, including five years leading Wayzata and Long Lake police departments.
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Full analysis
Votes (2)
Consider Authorization of the Execution of Panoway Change Orders
Dissent: Mayor Muton voted 'Nay', stating that the budget relies on money not yet in hand, leading to an effective over-budget scenario when that factor is considered.
Moved by Council Member McDonald [1:48:50] · Seconded by Council Member Sorenson [1:48:53]
The discussion centered on approving change orders totaling $165,830.98 for the Panoway Project. Council members expressed strong concerns about approving work that had already been completed and the project's depleted contingency fund. Specific issues included unexpected pile obstructions, ice breaking costs due to project delays, use of a hydro crane, acceleration costs, and the need for rail stiffeners due to design limitations. Staff explained that some changes were necessary for project progression and long-term operational efficiency, with further discussion on step-down design changes deferred to a future meeting.
Consider Adoption of Resolution 46-224 Canvasing the Returns and Declaring the Results of the November 5, 2024, City General Election
Dissent: None
Moved by Council Member Sorenson [1:59:08] · Seconded by Council Member McDonald [1:59:11]
The City Manager presented the certified election results, confirming Andrew Mullen as Mayor-elect and Alex Pish and Ken Sorenson as re-elected Council Members. The presentation also included Wayzata's federal and state election results, highlighting the city's consistently high voter turnout. The Mayor congratulated all candidates, emphasizing the importance and challenge of public service. Acknowledgment was also given to election staff and judges for their efficient and courteous management of the election.
Notable Quotes (6)
These are all items that have already been done so why do you need our approval now shouldn't you have gotten shouldn't we have provided our approval before the work was done?
and there were issues that came up that needed to be done we thought uh there wasn't a choice.
the step Downs especially the lower platform and the bridge aspect of them have to be removed and reinstalled every year... modifications that are being made are to make it more efficient and uh ultimately save pretty pretty substantially on costs on an annual basis.
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.
everybody should do it once in their life it is a hard thing to do to put yourself out there... it is an incredibly humbling experience but one that we all grow from.
here in wetta you are treated like you're the person that matters and our staff led by city clerk leig really has a great team they treat people very kindly and I just want to give them a lot of acknowledgement and recognition because it's one thing to to work your tail off and you know be exhausted after a long season it's another thing to do it with such Grace and kindness and really customer service driven.
Ordinances & Resolutions (9)
Provides an exception to the open meeting law for performance evaluations of individuals subject to council authority.
Special events ordinance, approved on second reading and adoption.
Approving Grant agreements for intensive comprehensive peace officer Education and Training.
Canvasing the returns and declaring the results of the November 5, 2024, City general election.
Agreement between the City and the Wayzata Conservancy regarding maintenance, operations, and dock funding for the Panoway Project.
Agreement for 2025 Recreation services with Wayzata Community Education.
Amendment to lease agreement with Hennepin County for the Wayzata library.
Northern State's power company Excel Energy amended and restated easement.
For Police Department IT services and IT services for administration, Public Works, and Municipal liquor operations by Laugher.
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Other Topics from This Document
Police Chief Mark Schultz Retirement Recognition
Wayzata Conservancy Panoway Project Fundraising Update
Panoway Project Budget and Change Order Authorization
Canvass of November 5, 2024, City General Election Results
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