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Kingman approves $300,000 increase to finish Powerhouse entrance project after unforeseen underground work
Summary
City council approved a $300,000 budget increase to finish a Highway Safety Improvement Program project relocating the Powerhouse entrance after uncharted underground conditions caused change orders and delays; ADOT negotiated the contractor change orders and work is scheduled to finish paving this month.
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Kingman City Council voted to approve a $300,000 amended budget increase to cover change orders and delays on the Powerhouse entrance relocation project, city officials said.
The additional funds cover work that was not included in the original contract after contractors found unknown underground items while pulling up the roadway, Anthony Brozic, district engineer for the Arizona Department of Transportation (ADOT), told the council. City Manager Tim Walsh said ADOT negotiated the change orders with the contractor and the city’s intergovernmental agreement (IGA) with ADOT requires the city to cover costs above the HSIP award.
Council members were told the project relocates the Powerhouse entrance to align with First Street to enable a future signal and to remove a mid-block HAWK crossing. Walsh and Brozic said crews returned to work and planned paving is expected "this month," with final striping remaining afterward.
Vice Mayor questioned whether ADOT’s design or its consultant had missed existing utilities; Brozic said ADOT performs selective potholing but record drawings are often incomplete and abandoned infrastructure (pipes, drains, concrete) is sometimes found only when pavement is removed. Brozic said bidding and potholing are discussed with ADOT staff, designers and city staff during development, and low-bid contracting is part of HSIP projects.
Council discussion noted the bid originally came in roughly $60,000 over estimate; Walsh said the next lowest bidder was substantially higher and likely would have faced the same unforeseen conditions. The council approved the $300,000 increase, funded from the city highway user fund.
The city recorded no roll-call vote tally in the meeting minutes; the motion to approve carried.
The council directed staff to rely on ADOT’s schedule updates; Walsh and ADOT said paving is expected by the end of the month, though they added a caveat that schedules can change.

