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Coos Bay authorizes up to $1.61 million for Pump Station 6 wet-well replacement amid contingency concerns

Coos Bay City Council · August 6, 2024
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Summary

After an unexpected wet-well collapse at Pump Station 6, council authorized staff to approve or negotiate a change order up to $1,610,000 to keep the project moving and avoid escalating bypass-pumping costs, while acknowledging that doing so will reduce emergency contingency funds and shift other capital work.

City staff told the Coos Bay City Council on Aug. 6 that an existing wet well at Pump Station 6 failed between Feb. 28 and Feb. 29 and was found beyond repair. The contractor Pacific Excavation submitted a lump-sum amendment of about $1.6 million; the engineer’s estimate was roughly 20% lower.

Jennifer (city staff) said the contractor had not yet provided full backup documentation required by contract and staff expected that information later in the week; because mobilization had been planned, staff asked for authority to approve the contractor’s amendment or negotiate a lower figure once supporting data arrived. “This has the potential to cause almost a 3-week delay to the contractor which the contractor will charge the city for,” staff said.

Staff noted ongoing bypass pumping costs estimated at about $17,000 per month and said delaying the contract could increase overall costs. Council discussion focused on budget trade-offs: fund 29 can absorb the change order if other contracted capital work is reduced and approximately $450,000 of the city’s emergency unplanned water-quality fund would be used, leaving about $550,000 in that reserve for the rest of the fiscal year.

Council authorized staff to proceed with the change order up to $1,610,000, with the expectation that staff will negotiate the final amendment after receiving the contractor backup. Councilors acknowledged the large price tag and the need to balance completing critical sewer infrastructure against diminishing contingency funds.

Next steps: staff will receive contractor backup, negotiate the final change order if possible, and report any material differences to council. The project manager and engineer will continue oversight, and the city will re-prioritize other capital projects in fund 29 if needed.

Quote: "Once the backup is provided, the staff and the engineer can negotiate the addendum," Jennifer said; "this is kind of the worst case scenario" if costs are not reduced.

Fiscal note: staff said fund 29 can absorb the change order but warned the emergency unplanned project reserve will be reduced by roughly $450,000, constraining contingency funds for the fiscal year.