Memorandum

City of Lawrence

Utilities Department

TO:	David L. Corliss – City Manager Diane Stoddard - Assistant City Manager Casey Toomay – Assistant City Manager
FROM:	Philip Ciesielski – Assistant Director of Utilities
CC:	Dave Wagner – Director of Utilities Toni Wheeler – City Attorney Mike Lawless – Deputy Director of Utilities Beth Krishtalka – Assistant to Director
DATE:	January 14, 2015
RE:	Approve Change Order No.1 for additional work on the site, and authorize the City Manager to execute the Settlement Agreement and Mutual Release with Emcon, Inc. for Project UT0919 General Wastewater Pumping Station Improvement Project Priority Group I – PS15

Background

The Department of Utilities operates a number of small (80 to 300 gpm) vac-prime wastewater lift stations to convey sewage to its wastewater treatment plant. These lift stations were installed by the development community to provide service to localized areas of development. The lift stations are typically located in utility easements adjacent to or surrounded by residential property. The existing stations are 15 to 40 years old; many have exceeded their useful lives and are no longer supported by the original manufacturers, and require replacement to bring them up to current KDHE minimum design standards.

The general intent of the project was to replace a number of the existing vac-prime lift stations with rail-mounted submersible pumps, valve vault, overflow prevention, backup power connection, and flow metering in order to meet current KDHE minimum design standards. Pump Station 15 was the last of the vac-prime lift stations included for reconstruction as part of the General Wastewater Pumping Station Improvements. It is identified on the attached map.

Project History

On August 28, 2012, the City Commission awarded the bid to the low bidder Emcon, Inc. in the amount of $395,339.

On January 25, 2013, during the course of the work, Emcon Inc. damaged a City of Lawrence watermain causing it to rupture. Department of Utilities staff repaired the damaged watermain and during the subsequent flushing of the watermain, water was directed onto a neighboring property. Some of this water flowed onto the Pump Station PS15 Project site. Emcon was invoiced and paid $7,261.98 for the subsequent repairs performed by the Department of Utilities.

In the days following the watermain repair, the retaining wall and concrete slab constructed as part of Pump Station PS15 settled. Emcon, Inc. repaired the retaining wall and related project appurtenances at a reported cost of $93,066.08. Emcon Inc. and their insurer forwarded a claim to the City for reimbursement of a portion of these costs. This claim was based on the presumption that the water discharged during the repair of the watermain damage by Emcon, Inc. contributed to the settlement of the retaining wall. The City has denied Emcon’s claim and denies all liability or responsibility for any costs associated with the damage or repair to the Project. The City contends that the settlement of the retaining wall was caused by Emcon’s failure to properly compact the soils in the area.

The work, including the above repairs, was deemed substantially complete on April 30, 2013, 84 days late. The contract provided for the assessment of liquidated damages in the amount of $1,200.00 for each day the Project is not substantially complete beyond the contract time. The accrued liquidated damages were calculated to be $100,800.00.

Project Status

In an effort to settle the dispute and close out the project, the City Attorney’s office recommends entering into the attached Settlement Agreement addressing the claim for extra work related to the settlement and subsequent reconstruction of the retaining wall, and the delayed completion and resulting liquidated damages. The Settlement Agreement provides for the execution of Change Order No.1 in the amount of $17,450.52 for additional work at the site not related to the repairs, and the extension of the contract time to April 30, 2013. In recognition of this extension of time Emcon, Inc. relinquishes all claims related to the costs to repair the retaining wall and related project appurtenances.

Project Funding

This project will be funded from a combination of the 2009 Department of Utilities bonded construction fund per resolution No. 6835 and 2012 non-bonded construction fund.

Action

Approve Changer Order No.1 for additional work on the site, and authorize the City Manager to execute the Settlement Agreement and Mutual Release with Emcon, Inc. for Project UT0919 General Wastewater Pumping Station Improvement Project Priority Group I – PS15.