Sioux Falls staff notify council of major change orders on Washington Pavilion cornice project; no council approval required
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Summary
City staff told the council that the Washington Pavilion cornice and parapet restoration, originally bid near $5.9 million, has produced substantial unforeseen work and a large change order; staff said the work will be covered from identified entertainment-tax funds and that the council’s role is notice under city code, not approval.
City staff notified the Sioux Falls City Council on Aug. 13 that renovation work to the Washington Pavilion’s cornice and parapet has produced substantial unanticipated repairs and a significant change order.
Scott Rust, finance, reviewed the project history, saying an April 2019 study by Encompass prompted the rehabilitation work after the study found steel and substrate deterioration. The project was bid at roughly $5.9 million and has been funded with American Rescue Plan Act funds and the city’s entertainment tax, Rust said.
Rust told the council that contractors uncovered degraded clay, tile and limestone substrate and corroded roof joists when crews removed the exterior detailing, requiring replacement with concrete beams and structural repairs before the planned fiberglass cornice can be installed. He described the work as labor-intensive and said the team has addressed issues as they were exposed during demolition.
Several council members pressed staff about schedule, cost containment and whether the 2019 study missed conditions. Rust said the study had been paid for and served as a catalyst but some concealed conditions could not be discovered without removing the cornice; staff estimated the north-side work was roughly three-quarters complete and hoped to finish the remaining exterior work before Thanksgiving.
City Attorney’s Office staff reminded the council that Sioux Falls ordinance 36.020 requires notice to the council for change orders in excess of $100,000 but does not require council approval of those change orders. City staff said they have identified funding within the entertainment-tax fund and do not anticipate a funding shortfall.
No formal action was required of the council on the change order notice.
