Commission approves sewer change order and agrees to loan amendment steps for lagoon project

Osage County staff presented change order No. 3 for the Osage County Main and Lateral Sewer project and asked the commission to authorize execution and to allow staff to negotiate with the contractor if necessary.

Staff said the change order addresses defective liner material and would replace approximately 6,300 linear feet with an upgraded liner; the contractor would provide a 15‑year full materials and labor warranty and the manufacturer also offers a 15‑year warranty. Staff said certain clean‑outs requested by the homeowners association were removed from the scope at residents’ request, lowering cost. The proposed change order also included a reduction in the per‑foot price and required the contractor to cover some inspection fees. After discussion staff recommended approval; the commission voted to authorize execution of change order No. 3 and authorized the chair to sign, subject to contractor acceptance of the terms.

On a related capital‑finance item, staff briefed the commission on a KDHE loan amendment request for the lagoon portion of the sewer project. County staff and the county’s financial reviewer said the lender wanted written confirmation that the county could cover increased debt service and that some financial statements used in review were unaudited. Commissioners discussed options for ensuring adequate assessments and whether the mill levy needed adjustment in future budget cycles. The commission voted to approve the loan‑term agreements and to take steps to increase the mill levy in future budget cycles as necessary to cover amended debt service, with the condition staff coordinate the amortization schedule and estimates with the county treasurer/counselor before final transmission.