Council approves consent agenda and $2.53M demolition change order; one dissent on procurement process

The Duluth City Council approved a series of routine items and a contested change order during tonight’s meeting.

The consent agenda passed unanimously, 9–0. Later, council considered Resolution 25‑43 authorizing a change order to contract #24860043 (Carlton Companies Inc.) related to demolition of the Shoppers Ramp and a connected structure. Vice President Nephew moved the change order, seconded by Councilor Randolph; debate focused on process and the size of the change order.

Councilor Dirwachter (who had pulled the item from consent) expressed concern that the original bid description may have omitted information and flagged Minnesota Statute 471.345 and League of Minnesota Cities purchasing guidance, arguing that rebidding might be required and that competitive pressure protects taxpayers. Planning director Ben Van Tassel and the city attorney said the project used a sealed‑bid competitive process, that bidders were given the same pre‑bid information and that unknown structural conditions discovered during demolition, plus winter‑stabilization needs, drove the larger change order. Administrator Staling said the administration was comfortable proceeding and reviewed the circumstances that led to change orders.

The measure passed 8–1 (Councilor Dirwachter opposed). Councilors discussed conducting a council check‑in on change‑order thresholds going forward and asked staff to review bidding descriptions and contingency handling to reduce future surprises.

Other ordinances taken up for second reading (29, 30 and 31) passed unanimously: an amendment to prevailing‑wage rules for certain single‑family housing projects, a conveyance to Park Hill Cemetery Association and an ordinance authorizing stormwater inspection fees.

Next steps: Council asked staff for a review of change‑order processes and to include clear scope definitions when future projects are bid.