Council narrows city manager authority for Inner Harbor desal spending, asks for regular accounting

City Council members voted on June 24 to change how future purchases, contracts and contract amendments for the Inner Harbor seawater desalination treatment plant are authorized and reported.

The 5–4 decision requires the city manager to follow “normal procurement procedures for all future purchases, contracts, and amendments” related to the desalination project and directs staff to provide “accurate accounting to council for all funding spent and encumbered” on the project. Councilman Gil Hernandez moved the change; council recorded the motion as approved 5–4 after an extended discussion.

Why it mattered: The council action followed weeks of public scrutiny of the desalination program’s scope and cost estimates, questions about when and how the city manager and staff might authorize expenditures, and public concern that large commitments were being made without regular council review. Supporters of the change said it restores an expected level of elected oversight for large capital spending. Opponents — including city legal staff and project managers — warned it could slow a complex progressive design‑build procurement and raise project costs.

How the debate unfolded: Council members pressed staff on the contract structure and where the city stands with the project’s designer/builder, Kiewit, which the city selected to lead the design‑build delivery. Project leaders said the procurement is a progressive design‑build staged in steps and that some early work and long‑lead purchases have been authorized under a previously delegated authority; they said rescinding the delegation entirely could cause time and cost impacts because construction‑phase work can require rapid, high‑value contract amendments.

At the same time, several council members and public speakers insisted the city should not operate with what they described as an overly broad delegation for a project expected to run into the hundreds of millions of dollars. Council members who supported the resolution said they are not trying to stop the project but want the council to receive regular, itemized accounting and to vote on higher‑value amendments.

Public input: The meeting included dozens of public comments both for and against the desalination project; some speakers urged the council to preserve the city manager’s authority so work could proceed quickly, while others said the scale and environmental risks of the Inner Harbor project demand stronger council oversight.

Next steps: Staff agreed to return to council with clearer schedules and the specific accounting requested. Molly and the project team said they will provide updates on the cost model and design milestones, and council members asked for a regular, public ledger of project expenditures and encumbrances.

Ending: Council’s vote alters the city’s delegated authority for future desal‑related spending and signals heightened scrutiny of project costs and procurement steps as the design phase proceeds.