The Denver Auditor’s Office released a report this week detailing how the discovery of a historic brick sewer on 16th Street caused a year‑long delay and an $18 million cost increase to the 16th Street Improvement Project. The additional expense was not disclosed to the Denver City Council before a change order was approved, raising concerns about transparency in city‑wide infrastructure projects.
Historic sewer triggers delay and cost growth
Construction crews uncovered the brick sewer in May 2022 while working on the $149 million improvement plan that the City Council approved in March 2021. The sewer dates back to the 1880s, and because the city does not maintain a comprehensive map of these older utilities, the find was unexpected. The project, managed by the Department of Transportation and Infrastructure (DOTI) and contracted to PCL Construction Services, was delayed nearly a year as workers navigated the uncharted underground structure.
Beyond the $18 million directly tied to the sewer, the audit noted other unforeseen circumstances that pushed the total project cost over budget by more than $27 million. Funding for the overrun came from a mix of taxpayer resources and other municipal sources.
Council’s lack of awareness
The audit found that council members were unaware of the additional $18 million expense until after the change order was approved. While contract amendments require council approval, change orders do not, allowing the department to move forward without direct council oversight. The report states, “Council members were unaware of the deteriorating conditions on the project and the reasons for the delay, which limited their ability to make informed decisions.”
City Council member Shontel Lewis expressed concern that the department should have brought the change order to the committee’s attention. Council member Chris Hinds, whose district includes 16th Street, echoed the expectation that cost overruns and delays be discussed with council leadership.
Recommendations and departmental response
The auditor’s office recommended that DOTI work with the City Attorney’s Office and other stakeholders to revise city standards for project oversight, making cost and schedule impacts more transparent to council members. DOTI agreed with most recommendations, including formalizing the types of project updates that must be communicated to the council, and set an estimated implementation date of February 2027. The department disagreed with the recommendation to involve the City Attorney’s Office in revising standards.
DOTI spokesperson Nancy Kuhn defended the department’s performance, stating that the agency “followed all contract terms and current city policies” and highlighted newly implemented procedures with defined timelines and consultation protocols for future projects that may uncover historic resources.
Broader concerns about project oversight
The audit also raised concerns about other DOTI projects where council members may not have a clear view of true progress because change orders are not routinely presented to them. The findings suggest a need for systematic changes to ensure that elected officials have the information necessary to exercise fiscal oversight and protect taxpayer dollars.
As Denver continues to invest in its aging infrastructure, the 16th Street case underscores the importance of transparent communication between city departments and elected representatives, especially when historic assets intersect with modern development.
Original reporting: Denverite — read the source article.
