Council approves up-to-$47,120 supplemental inspection agreement after Meridian lighting problems; city to pursue liquidated-damages recovery

The Valley Center City Council approved a supplemental inspection agreement with PEC, not to exceed $47,120, to cover additional inspection work on the Meridian project that arose after lighting components were misordered and required rework.

Christie Scaz of PEC told the council the supplemental inspection arose because of problems with the lighting system on the Main-to-Fifth portion of the Meridian project. Those problems included poles that were misordered, partially installed and then removed, which required reinspection and additional wiring work. “Throughout the course of the project, there’s been some additional inspection performed by PEC staff due to some issues with the lighting system on the Main to Fifth portion of the project,” Scaz said.

Council members asked how the expense would be covered. City staff and PEC representatives said the city is pursuing liquidated-damage (LD) credits from the contractor as part of the KDOT-managed project. The council was told those LDs — estimated by staff during discussion at roughly $60,000–$80,000 for the project area — will offset additional inspection costs and that Pearson Construction is passing costs to its subcontractor PSE, who in turn will pursue reimbursement from the manufacturer because the poles were misordered.

Council member Gina asked where the money would come from because the regular city budget did not anticipate the additional hours. Staff replied the work is billed hourly, the city would pay out the supplemental inspection fees up front, and those amounts would be credited back against the contract via the liquidated damages process once calculations are complete with KDOT and the county. “The city will get a credit for the liquidated damages,” a staff member said.

Council member Robert said he was concerned about the size of the supplemental but accepted the explanation that manufacturer and contract remedies were the proper path to recoup costs. The motion to approve the not-to-exceed amount of $47,120, authorizing the mayor or city administrator to sign the supplemental agreement, passed on a voice vote.

Background: The Meridian project received county and KDOT (Kansas Department of Transportation) involvement; council members said parts were misordered for light poles and that the county had provided earlier oversight for inspection services. The supplemental agreement covers PEC’s additional hourly inspection time and will be billed at the end of the project.

Next steps: PEC will continue additional inspections as needed; staff will account for the supplemental under the project contract and pursue liquidated-damage credits and manufacturer reimbursement as described to the council.