The request of staff for Council is to review and consider award and the approval of the attached deductive change order in the amount of ($11,000.00) and final pay request in the amount of $55,237.00 from Peak Power Services, Incorporated for the Wastewater Treatment Plant's (WWTP) Storage Garage Project. 

As City Council may recall, on March 7, 2017 the WWTP’s detached storage garage caught on fire destroying the structure. Subsequent to the Fire Marshal’s investigation, the cause of the fire was undetermined.  Once the investigation was concluded, staff worked with the City Human Resources staff to submit a claim with the City’s insurance carrier Public Risk Management’s Gallagher Bassett.  Included in the claim submission were items such as maintenance equipment, small hand and gas powered tools, and additional equipment damaged by the fire, as well as the replacement cost to reconstruct another storage garage.

On February 6, 2018 at its regular meeting City Council awarded project bid #18-007 to Peak Power Services, Incorporated in the amount not to exceed $66,237.00.  Subsequent to the contract execution, construction of the structure began and was completed on August 7, 2018.  The owner’s contingency in the amount of $10,000.00 was not utilized in the project.  This resulted in the majority amount of the ($11,000.00) deductive change order.