Concordia City Commission to Take Up Change Order for First Phase of Improvements to the Wastewater Treatment Plant
By Toby Nosker
KNCK News Director
The Concordia City Commission will meet for their next regular meeting Wednesday, December 5th, beginning at 5:30 pm in the Commissioners' Room at Concordia City Hall.
At the meeting, the Commission will be asked to approve a deductive Change Order with APAC-Kansas, Inc. for the first phase of Improvements to the city's Wastewater Treatment Plant, bringing the scope of work to completion.
In March 2017, the Concordia City Commission accepted a bid from APAC-Kansas, Inc. in the amount of $2,348,353.00 for phase one of the project. The project, which includes work to the pump station, biosolids system improvements, clarifier improvements, aeration basin improvements and grit system improvements, among other things, is intended to address immediate needs at the plant.
The original substantial completion date was April 10, 2018.
In a memo, City Manager Amy Lange says completion of this project took approximately three months longer than originally anticipated for a variety of reasons, including equipment delays beyond the control of the contractor, an unexpected waterline break fixed by city crews, and a minor design flaw in solids handling supply piping that required re-engineering. Upon review of delay justification information by the contractor, the engineer recommended extension of the contract for substantial completion by 49 days and final completion by 80 days, which the city agreed to. Per the contract, the engineer has final determination of substantial and final completion dates, as well as review authority for delay justification.
Additionally, the city assessed liquidated damages in the amount of $42,000 per the contract for delays deemed the responsibility of the contractor. The goal of the liquidated damages contract provision is for the owner to recover additional costs incurred by the owner as a result of delayed completion of the project. The delayed completion of the project cost the city $32,400 in additional inspection and construction observation fees by the engineer. No other costs were incurred by the city as the plant was operational during the entire project. The contractor took the position they were not responsible for the delays for which they were being assessed, and believed they owed nothing in liquidated damages. The engineer agreed with the owner's assessment of liquidated damages.
Lange says the mediation clause was removed from the contract between the owner and contractor, thereby leaving only the remedy of arbitration if a settlement agreement could not be reached between the representatives of the owner and contractor for the amount of liquidated damages. Arbitration is binding, meaning it cannot be appealed.
Lange said the city estimated arbitration could cost them a minimum of $10,000 plus opposing counsel attorney's fees if they lost. Following nearly two months of negotiations, a settlement agreement in the amount of $24,000 and extension of the final completion date by an additional eight days was reached.
Lange is recommending the Commission approve the deductive Change Order with APAC-Kansas in the amount of $24,000, bringing the total contract price to $2,346,305.20.
The other agenda items include:
CALL TO ORDER
Pledge of Allegiance
APPROVAL OF AGENDA
PROCLAMATIONS/RECOGNITIONS/PRESENTATIONS/ITEMS SCHEDULED AT A CERTAIN TIME
DISCUSSION AGENDA (Items Deserving of Brief Discussion, Action may be taken)
Personnel Handbook Changes and Possible Resolution Approval
ACTION AGENDA (Action Expected)
Minutes of the November 21, 2018 Meeting
Appropriation Ordinance #22
Resolution 2018-2077 Sun Safety Program Support
Purchase of Sports Complex Scoreboard
CloudCorp 2019 Professional Services Agreement
Campbell & Johnson 2019 Professional Services Agreement
Ordinance 2018-3145 Drainage Easement Vacation
Resolution 2018-2078 Condemnation of 428 E. 11th St.
Housing Authority Board Appointment
Affirmation of Exempt Property Status for IRB Certification
Engineering Services for Mill and Overlay Project
Change Order for Treatment Plant Phase 1
Mayor/Commissioner Comments & Reports
INFORMATION AGENDA (Written Reports Only, No Discussion/Explanation Required)
Preliminary Discussion of Acquisition of Real Estate