City Identifies Oversights and Discrepancies in Budget reporting in Riverfront Drive Project Review
Mankato City Council unanimously approved action items to close out the Riverfront Drive Capital Improvement Project (CIP 10994) after identifying final issues.
City Manager Susan Arntz requested approval of Change Orders 5-12, totaling $578,560.51 at Monday’s City Council meeting. This includes $280,000 in incentive pay to the contractor for completing work early, as specified in the contract. These Change Orders increased the project’s adjusted cost from $8.24 million to $8.82 million—about a 7% increase which met the threshold that required council action.
During final invoicing, it was also discovered that traffic signals and streetlights, costing $947,128, were ordered outside the usual bid process without prior Council approval. Arntz requested retroactive authorization to use State Aid and Federal Funds to cover this cost.
An error was also found in the preliminary special assessment figures presented to the public and Council. While city staff originally reported $1,034,700, the correct total was actually $1,742,222.41. The mistake did not affect individual property notices, but staff plan to hold the final assessment hearing earlier than usual this year.
Arntz noted that the City is reviewing its procurement practices, has scheduled staff retraining, and hired an outside investigator to examine the project further.
After the findings were presented to the council, the council voted in favor of the changes, while also noting they looked forward to hearing the findings of the outside investigator.
Arntz will join Lisa Kaye Tuesday morning to discuss the findings further.
