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Canton denies Beaver Creek trunk sewer change order after dispute over railroad permitting fees
Summary
The Canton City Commission voted to deny Change Order No. 3 for the Beaver Creek trunk sewer project after city staff said permitting delays and account handling with BNSF/Wilson & Company led to additional mobilization charges. Commissioners voted to table final construction acceptance.
The Canton City Commission on Tuesday voted to deny Change Order No. 3 for the Beaver Creek trunk sewer project after a debate over who should bear added mobilization costs tied to railroad permitting. The motion to deny the change order passed on a roll-call vote.
City staff (Speaker 1) told commissioners that two items comprised the change order: extra mobilization resulting from a 15‑month permitting delay with Burlington Northern Santa Fe and Wilson & Company, and adjustments to balance bid quantities with as‑constructed quantities. "Wilson and Company invoiced the city, to the total of about a $144,000," Speaker 1 said, adding that "about 71 of that was reimbursed." Staff also said BNSF invoiced roughly $76,000, which was later reduced to about $12,000 after negotiations.
Commissioners and attendees pressed staff on why payments had been held in a single account and whether the city or contractors should be responsible for splitting funds and coordinating permits. An attendee (Speaker 9) questioned why the city was absorbing the additional mobilization charge and suggested the general contractor or subcontractor processes may be to blame. "I don't feel like it is [the city's fault]," the attendee said during the exchange.
Staff described a practical reason for keeping permitting with the city: doing so preserves the city's ability to recover certain reimbursements. "If we would have left the contract or the permitting with the contractor, they would have paid that total in those total invoices, and the city wouldn't receive" the reimbursement, Speaker 1 said.
After discussion the commission moved to deny Change Order No. 3 (the mobilization and the net quantity changes). The roll-call vote recorded Commissioners York, Carlson, Garbers and Mayor Lundstrom as voting "Aye." The commission then tabled the final construction acceptance of the Beaver Creek project until the final chamber and payout information are available.
The action marks a pause in the city's acceptance process for the trunk sewer while staff and the commission sort remaining accounting and contract‑administration issues.
