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Council approves Puget Sound Energy contract for Melcher pump-station work after adding cost cap
Summary
Council authorized the mayor to execute a commercial facilities contract with Puget Sound Energy for Melcher Pump Station electrical/replacement work (initial estimate $43,897.76) and adopted a friendly amendment to cap total authorization at $60,000 to allow staff flexibility to close out the work.
The council authorized the mayor on Jan. 13 to execute a commercial electric facilities contract with Puget Sound Energy (PSE) for the Melcher Pump Station rehabilitation project, after a debate about cost exposure and contracting form.
Public works described the scope as electrical work tied to replacement of a 3-phase transformer bank, pole replacement and relocation of primary spans. Mr. Ryan told the council that Puget Sound Energy is the required utility purveyor for certain electrical work on that site, and that PSE's proposal reflects their standard hourly rates for linemen and foremen.
Several council members expressed concern that the PSE form lacks a post-award cap. "This is just clarification that it's not an open checkbook," Council member Morrissey said during the discussion; other council members and legal staff explained that the standard PSE contract is largely non-negotiable but that the council could adopt a motion amendment to set a not-to-exceed cap. Council amended the authorization to cap the total at $60,000 and then approved the resolution authorizing the mayor to execute the PSE contract up to that capped amount.
Staff said a cap would give the contractor room to respond to unforeseen field conditions without repeated remobilization charges while also giving the council a bound on total exposure. Council asked staff to return if additional costs beyond the adopted cap were necessary.
