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Lyon County utilities: Rolling A wastewater expansion delayed; supplier issues push completion months past contract date

2247825 · February 6, 2025
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Summary

County utilities reported a supplier-related delay on the Rolling A wastewater treatment-plant expansion, extending the contractor’s schedule by approximately seven months from Sept. 2025 to April 2026; project contingency and change orders were discussed.

Lyon County utilities staff told commissioners on Feb. 6, 2025, that the county’s Rolling A wastewater-treatment-plant expansion — a $24 million project to increase capacity from 1.0 million gallons per day (MGD) to 1.4 MGD — is under construction but experiencing schedule delay tied to a key supplier.

Kishore Panga, utilities engineer, summarized multiple utility projects and reported the Rolling A expansion had been under construction since October 2023 and had progressed satisfactorily until a major supplier missed contractual deliveries. The general contractor submitted a revised schedule that Panga said represents a roughly seven-month delay, moving the contractual completion from September 2025 to April 2026. Panga said the county and engineer are working with the contractor to reduce the delay where possible.

Budget and contingency: the construction contract is about $20 million and includes a $1.8 million contingency. Staff have approved change directives (work-authority directives) totaling about $413,000; Panga said $322,000 of that has been paid so far. The department is evaluating whether the contingency and previously approved changes will cover additional engineering costs due to schedule adjustments.

Contract remedies and liquidated damages: Commissioner Hendricks asked whether liquidated damages apply for the delay. Panga confirmed the contract includes a liquidated-damages provision and staff are evaluating the contractor’s justification for the time extension. The county will determine whether to assess damages after review of the contractor’s delay documentation and potential force-majeure or supplier-excuse claims.

Other utility updates (brief): - Rose Peak water-main replacement (Dayton): planning stage; estimated budget ~$3.2M with an EPA grant of roughly $2.5M. - Silver Springs GID studies: engineering studies for effluent disposal and sludge dewatering underway; ARPA funds used for studies. - Highway 50 / Denton Valley Road sewer replacement: design contracts in place; permit approvals received, moving to 90% design.

Ending: Utilities staff said they will continue to work with the engineer and contractor to minimize delay and will report back to the board on the schedule, contingency usage and any recommended contract remedies.