We at Center of the American Experiment have long chronicled the disastrous Southwest Light Rail Transit (SWLRT) project. Indeed, this boondoggle – nine years behind schedule and a billion dollars overbudget – was the inaugural winner of our Golden Turkey Lifetime Achievement award in 2022.
Monday saw the release of a report on the project from the Office of the Legislative Auditor. “Among the findings,” MPR News reports,
…the audit said the Met Council “did not apply a consistent variance threshold, or establish guidance that includes the factors and conditions to consider, when comparing its change order cost estimates against Lunda/C.S. McCrossan Joint Venture’s estimates.”
The audit noted several change orders where the Met Council approved contractor estimates that were multiple times what the Met Council initially estimated for the work.
“Without an established threshold or guidance for variances when comparing estimates, it is difficult to determine if the Council received fair and reasonable costs for project change orders,” the audit reported.
In addition, the audit found:
Shortcomings in how the Met Council and the contractor monitored and reported the work of subcontractors and suppliers classified as “disadvantaged business enterprises.”
The Met Council did not adequately monitor, and ended up overpaying for, disposal of contaminated soil along the route. That included leaving signed, blank manifests for the contractor at the start of each day — and not reconciling to ensure that what was reported was accurate.
The contractor did not always have required security measures and safeguards in place.
At a hearing on Monday where the audit was presented, Met Council Chair Charlie Zelle told lawmakers: “We have learned a lot from all of the OLA reviews, and I’m pleased to report that we have actually instituted a number of reforms and processes.” It only took nine years and a billion dollars.