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Council authorizes settlement and release agreement for Phase 2 treatment upgrade project
Summary
The council authorized the mayor to sign a three‑party settlement and release agreement among the city, Harris Trucking & Construction Company, Environmental Dynamics International (EDI) and Nexom to resolve problems with a floating cover from a 2019 wastewater treatment upgrade project and to enable final completion and retainage release.
The Cody City Council authorized the mayor to sign a settlement and release agreement involving the city, Harris Trucking & Construction Company, Environmental Dynamics International (EDI) and Nexom to resolve outstanding issues with the Phase 2 treatment process upgrade project that began in 2019.
Philip Bowman, who presented the item, said the city awarded the project (Phase 2 treatment process upgrade) to Harris Trucking in 2019 and issued a notice to proceed that August. Bowman said the project’s contract value, adjusted through change orders 1–11, is approximately $5,408,000. After commissioning, the floating cover on the treatment cell—installed by EDI as a subcontractor—showed indications of failure.
Bowman said the parties negotiated a three‑party settlement in which EDI will pay $350,000 to Harris Trucking related to the floating cover that failed to meet project specifications. Bowman said the city attorney and city staff are drafting a separate agreement between the city and Harris that will outline terms for substantial and final completion, including the city making a final payment of approximately $440,000 and releasing retainage currently held (approximately $200,000) back to Harris.
Bowman said those specifics and the draft city–Harris agreement are expected to be ready for council consideration at the second regular meeting in April (April 15).
Council member Lang moved to authorize the mayor to enter into and sign the settlement and release agreement among Harris, EDI and the city; Council member MacIsaac seconded the motion, and the council voted in favor.
Bowman and city attorneys will return with the separate city–Harris agreement that will include the schedule and terms for final payment and retainage release.
