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Cody council approves preliminary design task order, accepts $500,000 settlement and completes closeout for wastewater phase 2 project
Summary
Council approved a $15,000 task order for preliminary engineering of a replacement floating cover at the wastewater treatment facility, accepted a $500,000 settlement from the contractor and authorized final payment and release of retainage to close out the phase 2 upgrades.
The City of Cody City Council approved two related actions to complete closeout of the wastewater treatment facility phase 2 project and to move forward with replacement of an aerated lagoon floating cover.
The council voted to approve Task Order No. 1 under the master agreement with Engineering Associates for preliminary engineering and design of the aerated lagoon floating cover with a not-to-exceed fee of $15,000, and separately approved final payment and release of retainage to the general contractor, Harris Trucking and Construction, while accepting a $500,000 negotiated settlement tied to the cover installation.
The approvals matter because the floating cover installed during the phase 2 upgrades did not meet the city's specifications, prompting a negotiated resolution between the city, the general contractor and a subcontractor. Philip Bowman, staff reference, told the council the city will use the settlement funds for replacement work and that the preliminary phase will include outreach to multiple cover manufacturers to find one that accommodates the facility's irrigation equipment.
Bowman said, "As part of that negotiated resolution and settlement and release of claims, the city will be receiving 500,000 of funding, and we will apply that to this project to replace the cover." He described Task Order No. 1 as the step to identify manufacturers and complete preliminary design in calendar year 2025, with a final design and bid phase planned later in 2025 or early 2026 and construction anticipated in 2026.
Council members approved final completion, a final payment included on the voucher list of $52,705.34 and a retainage release form that allows Harris Trucking to draw retainage from a local escrow account. Bowman also said the city will sign a letter of relinquishment for remaining loan funds: "That loan was approved by Office of State Lands and Investments in the past, and there are $3 remaining on that loan, available for drawdown. We're just going to relinquish that $3 and then, put that loan into repayment." After the council approved the retainage release, city staff expected to meet with Harris Trucking to exchange the release form and final payment in return for the $500,000 settlement payment to the city.
Council votes on both the task order and the retainage release were taken by voice vote. The motions carried with council members voting "Aye."
