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Council approves $1.19 million contingency increase for 20th Avenue South project after utility delays
Summary
The Des Moines City Council approved a significant contingency increase for the 20th Avenue South improvement project to cover delays and added costs tied to utility relocations; staff said the city will pursue reimbursement from Puget Sound Energy.
The Des Moines City Council voted to increase the construction contingency for the 20th Avenue South improvement project by $1,185,080 to cover delays and additional costs caused primarily by utility relocation conflicts. Council also directed staff to bring a budget amendment to incorporate the change into the city’s capital plan and 2025 budget.
Project background: The 20th Avenue South improvement project (segment 2) reconstructs the roadway between South 214th Street and 203rd/Third Street, adding a two-way left-turn lane, bike lanes, curb, gutter and sidewalks. Staff and engineers told the council that despite early coordination with franchise utilities, Puget Sound Energy (PSE) relocations and attached communication lines repeatedly delayed construction and required suspensions of work.
Costs and causes: Staff presented a line-by-line explanation of contractor claims and costs the city has negotiated and verified, including loss of production, temporary asphalt to maintain access, standby costs during suspensions, inflation-related cost increases and rights-of-way/temporary construction-easement extensions. The staff summary estimated the total additional cost related to utility conflicts at about $1.2 million.
Council action and funding: Councilmember Mahoney moved to increase the project contingency by $1,185,080; Deputy Mayor Steinmetz seconded. The motion passed 6-1. Council later approved a budget amendment to add the amended project to the CIP and 2025 capital budget (passed on recorded vote 7-0). Staff said the city will use transportation/overlay funds initially and pursue reimbursement from PSE via a formal claim process; staff described ongoing negotiations and the possibility of settlement, arbitration or litigation.
Why members supported and opposed: Supporters described the action as necessary to finish a safety-critical project and to restore full roadway function for school drop-off routes and local access; opponents and some councilmembers expressed frustration about the delays and said they expected stronger franchise coordination. Councilmembers asked for a lessons-learned review and documentation to reduce the chance of repeating this exposure.
Next steps: Contractor mobilization was reported to resume on March 24, and staff expects substantial completion later in the year; staff will pursue reimbursement from PSE and return to council with outcomes.
