By Susan Motander
The Monrovia City Council met in a special session on Friday, April 10 at 8:00 am to resolve the question of who ordered work done on the Station Square project without the authorization of the City Council. After a complete review of the city’s relationship with the IBI Group, the entity hired to complete the design and oversee the construction of the Station Square development.
The additional work ordered has resulted in $447,765 in additional cost. According to City Manager Oliver Chi, this work has already been completed by the IBI Group. This situation came to light at the last regular city council meeting on April 7 when city staff requested authorization of payment for the completed work and for an additional authorization for $160,000 to complete the work on Station Square. At that time, Council Member Tom Adams requested a full report on how work was ordered without Council approval of the expenditure.
At first, Chi said that he would need time to investigate the problem. When it became clear that staff had been aware of the overage for several months and had not brought it to the attention of the council until that night, Council Member Alex Blackburn who had moved to approve the expenditure in order to avoid litigation with IBI, withdrew his motion and requested the Special meeting and suggested Friday as the date in order to resolve the matter in a expedient manner.
At the special meeting Chi reviewed the history of the planning of the Station Square. He said the work was done in two phases: the first was conceptual design of the project, the second related to the final design and construction.
He explained there were five study sessions with the City Council to discuss the project, set its design objectives, consider funding sources, discuss outreach results, and ultimately review the overall conceptual design and update its design components. These meetings were held between August 6, 2013 and January 7, 2014. Chi also noted that as these were study sessions, minutes were not kept of these meetings.
According to Chi, the result of these study sessions gave the staff the parameters of the project. He explained that staff was implanting what it felt the council wanted done. He further explained that staff did not have the authority to order changes in excess of 10% of a contract. The changes ordered in this case did substantially exceed that amount.
Chi said that the council was told in October of 2014 that there would be additional costs. He also said that he was aware at that time of at least part of the overage, but that he “was not comfortable” with bringing it before the council at that time. He apologized for the delay and said that it was his responsibility to oversee this work. Chi reported that he thought the overage was approximately $289,000 at that time.
“At that time we did not realize that full scope of it,” he said.
In his review, He reported there were three separate notices to proceed: one signed by the director of Community Development and two by the former interim director of public works. The latter is not longer employed by the city. All three were issued prior to Chi becoming city manager, however he repeatedly stated it was his responsibility and promised that such action would not again occur.
Chi went on to say “We should have come back to council for authorization.”
That was the center of the discussion by the council. Council Member Becky Shevlin said she felt it was a matter of “putting the cart before the horse” in not having firm plans before entering into a contract for the work.
Blackburn noted that the work had already been done and that it fell within the general scope of what was wanted.
Chi said that there had been “significant management and staffing changes” since had had become City Manager and that he was “confident we will not have this kind of breakdown again.”
Mayor Mary Ann Lutz suggested that in the future, closer council supervision of large projects needed to be implemented and that at least two members of the council be appointed to oversee the project moving forward. She also urged that all directors and manager understand the correct procedures.
“Ultimately, that is my responsibility,” Chi reiterated. “You have my commitment that I will not allow this to happen again.”
Lutz also noted that while two of the notices to proceed were issued by an individual no longer employed by the city, the third was signed by a current director. She suggested “appropriate action.”
With that, the council unanimously voted to approve the expenditures.
