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Chelan council approves design amendments for Station 1 and moves forward on recycling center rebuild
Summary
Council heard staff reports on unanticipated design scope at Station 1 (contaminated soils, generator relocation, SCADA compatibility) and on a recycling center rebuild change order funded by insurance; staff described monitoring obligations and estimated additional costs.
City staff told the council May 26 that several ongoing capital projects had encountered unanticipated scope that requires contract amendments and continued insurance coordination.
Public Works Director Young said Station 1 design work is over 90% complete but structural and shoreline issues, a late generator relocation and discovery of contaminated soils required additional design and mitigation planning. Staff proposed an amendment to incorporate mitigation and SCADA compatibility work and cited an associated fee increase of about $42,000. Young said contaminated‑soil monitoring and remediation obligations could add ongoing annual costs of roughly $5,000–$10,000 until remediation criteria are met.
Separately, staff reviewed the recycling‑center replacement project, describing a total‑loss fire and a change in delivery method to a GCCM approach to coordinate with insurance. The city received an initial WCIA payout of $1,000,000; staff requested a $387,162 change order to fund early subcontractor engagement (MEP and procurement) from the insurance payout while continuing detailed insurance reconciliation. Staff estimated the full rebuilding cost near $3,000,000 and said some insurance reimbursements operate on a reimbursement basis and are still under negotiation.
Council moved and approved the related authorizations during the meeting; staff noted additional monitoring and insurance reconciliation tasks remain.
