Warwick City Council Special Session – August 26, 2026

The Warwick City Council convened a special session on August 26, 2026, at the call of Mayor Pakosy to consider a change order (PCR 87-26, Bid 2026-033) for the State Street Water Pump Station Improvements. The council first entered executive session to discuss potential litigation related to the project. Upon returning to open session, the council debated the necessity of a $43,000 change order requested by the contractor, Hart Engineering, due to unforeseen field conditions. After extensive discussion, the council voted 6–2 to approve the change order, while also directing the city solicitor to prepare a memo preserving the city’s rights to pursue claims against the engineering firm, Beta, for design deficiencies.

Discussion Items

• Change Order Discussion: Councilman Lazar led the opposition, arguing that the change order was needed because Beta’s design was deficient and that the city should not pay for correcting a flawed design. He noted that Beta admitted they did not recommend soil testing or test borings before construction, which is standard practice. He stated that approving the change order would send a terrible message and encourage contractors to file change orders.
• Administration’s Justification: Mayor Pakosy and Jerry Woolett, Chief of Water, explained that the unforeseen field conditions—including unstable soil around vertical bends and unrestrained lead-jointed valves—posed a risk of catastrophic failure, loss of system pressure, and a boil water advisory if not addressed. The change order was necessary to avoid a prolonged shutdown. The mayor also noted that the project could not be delayed until the next regular council meeting in October without risking winter weather and project delays.
• Contingency Funds: Councilman Lazar questioned why the $43,000 change order could not be covered by the $50,000 utility contingency in the original contract, of which $38,000 remained. The administration responded that the contingency was specifically for utility relocation (gas, electric) and that using it for this change would be inappropriate. They also stated that any unused contingency reverts to the city at project closeout.
• Legal Protections: Councilman Mudo asked the solicitor whether voting for the change order would waive the city’s rights to recover costs from Beta or Hart. The solicitor confirmed that it would not, and that the city could still pursue claims. The council then directed the city solicitor to draft a memo stating that the city does not waive its rights.
• Councilman Gebhard’s Support: Councilman Gebhard argued that the risks of not moving forward—including potential catastrophic failure and a boil water advisory—outweighed the frustration with the change order. He urged approval.
• Councilman Kirby’s Perspective: With 45 years of experience, Councilman Kirby noted that unforeseen conditions are common in excavation and that the contractor’s decision to stop work and redesign was reasonable.
• Councilman Mudo’s Amendment: Councilman Mudo moved to amend the PCR to include a directive that the city solicitor prepare a position paper on preserving rights. This was adopted without objection.
• Mayor’s Alternative: The mayor stated that if the council did not approve the change order, he would issue an emergency order (3-3) due to the public safety hazard, preferring to work with the council.

Key Outcomes

• Vote on Change Order: The council voted 6–2 in favor of favorable action on PCR 87-26, approving the $43,000 change order. The roll call: Mr. Foley (yes), Mr. Gebhard (yes), Mr. Kirby (no), Mr. Muto (yes), Mr. Napa (no), and others. Exact vote: 6 yes, 2 no.
• Directive to City Solicitor: The council ordered the city solicitor to write a memo confirming that the city does not waive any rights to pursue claims against Beta Engineering, Hart Engineering, or any other party related to the design deficiencies leading to the change order.
• Adjournment: The meeting adjourned at 5:39 PM.