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Council raises liability concerns over proposed VWO change order and limited-release clause tied to ARPA-funded project
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Summary
Officials and staff warned a proposed change order with a 'limited release' could shift liability to the city and jeopardize ARPA funds for the project; members urged attorneys to pursue liquidated damages against contractor TWM and to expedite ordering a lift station estimated at a 12‑week lead time.
Lebanon council members and staff on April 6 debated whether to accept a proposed change order and a limited‑liability release from a contractor working under a VWO contract, expressing concern the release appears to transfer risk to the city.
City staff (S4) said the change order and a limited release were returned by outside counsel, but cautioned the language “reads” as removing contractor liability for future damages. “If you did not read the limited release, you need to read that very carefully,” staff said, warning that the clause appeared to hold the city harmless rather than the contractor. The city attorney agreed in preliminary remarks that the amendment was not the preferred route.
Councilmembers pressed for tougher remedies against the contractor TWM, whom several speakers blamed for project delays and defective work. One councilmember (S2) noted the contract includes liquidated damages and urged staff and the attorney to put the contractor on notice: “Figure out a way to make it happen… put them on notice.” Another member (S4) encouraged ordering the lift station immediately — staff said the lead time to receive the unit would be about 12 weeks — as a priority so work can proceed during suitable weather.
Members also linked the discussion to ARPA funding timetables. Staff warned that if the project is not complete before ARPA deadlines, Lebanon could be at risk of repaying funds; S4 estimated the ARPA allocation for the project was on the order of “4 or $500,000” in the packet but did not provide a precise figure.
The council asked attorneys to revisit the release language, consider pursuing liquidated damages where available and return with recommended next steps at the subsequent meeting. No final authorization for the change order was recorded in the transcript.
