Council approves $70,578 change order for Medford Navigation Center renovation

The Medford City Council on March 19 approved a $70,578 change order for renovation work at the Medford Navigation Center, 685 Market Street, bringing the project total to about $585,000.

Michelle King, the city’s funding director, told the council the additional cost mainly stems from increased steel needs for a bike shelter, an exterior staircase and a storage area. King said a prior change order of $196,241 had already been issued after contractors found 5,000 square feet of asbestos in the building and other unforeseen material increases.

The change order will be charged to a mix of dedicated grant and recovery funds available for the project. “These are CDBG dollars that we’re obligated to spend,” the city attorney, Eric Minton, said during the staff presentation, noting that the federal Community Development Block Grant program encourages timely expenditure. Minton and King said staff concluded the contractor did not err in its bid and that the overages were unforeseen.

Why it matters: the renovation will convert about 5,100 square feet in the front portion of the facility to space nonprofit partners will use to deliver social and navigation services to people experiencing homelessness. King told council the shelter portion of the building was placed in service in summer 2022 and the current work will complete the front portion used for services.

Councilors pressed staff for procurement clarity. Councilor Kevin Keating asked whether the original contract was “silent or ambiguous” about cost increases; King said the contract did not allocate responsibility for escalation. Minton said the contract’s scope had ambiguous language at the interface between the city form and the contractor’s scope, and that city staff will tighten contracting language in similar projects going forward.

Motion and vote: Councilor Nick Card moved to approve Resolution 2025-19 authorizing the change order; Councilor Garrett West seconded. The roll call showed seven yes votes and the measure passed.

Project background and funding: King said the property was purchased in summer 2021; renovations for the shelter portion completed in February 2023. Funding for the Navigation Center renovation has included CDBG, American Rescue Plan Act (ARPA) money and OHC funds. Staff said the CDBG allocation is sufficient to cover the additional $70,578. King estimated no further change orders are expected and that the project is near completion.

Council members said they will seek clearer contract language and more explicit escalation clauses in future professional services and construction solicitations.

Votes and next steps: Resolution 2025-19 passed on a 7-0 roll-call vote. Staff will proceed to close out work and monitor remaining scope items.