Moyie sewer contract with engineering company amended

MOYIE SPRINGS — The City Council voted to amend its sewer contract with the Keller Associates to reflect additional costs. 

The original lump sum agreement for the sewer project was $673,133.

At the Oct. 4 meeting, Keller requested a total of $1,066,618.44 for an adjusted agreement amount and increased the cost of line items after the original agreement and services rendered.

The council agreed that if the Department of Environmental Quality wished to provide additional funding to Keller, while not taking funding away from the city, then Moyie Springs would agree to the increased cost. 

DEQ did not provide additional funding to the engineering company. 

At the Nov. 8 meeting, a new amendment to the contract was proposed, which did not include sections that were questioned by the council, such as additional costs for work already completed. 

When Moyie Springs was first approached by Keller for additional funds, completed projects such as the preliminary design phase increase, originally at $156,773, and final design phase increase, originally at $252,290, had increased to $186,773 and $250,419 respectively.

The city did not approve the former amendment and requested additional funds from Keller. 

In the amended contract the study and report phase was not applicable to additional cost increases. The preliminary design phase and final design phase did not receive a cost increase nor change. 

Other line items did see an increase of funds. 

Bidding and negotiations phase increased from $17,805 to $24,500. The construction phase increased from $95,765 to $138,271. SRF Outlay decreased, as the city is going through a subcontractor, originally costing $19,875 and is now at $8,760. 

The post-construction phase increased by $10,000 and is now at $13,730. The resident project representative increased from $105,680 to $153,600. 

Additional services reduced to $20,565.44 from $28,015. 

The new amendment moved the original lump sum agreement for the sewer project was $673,133 to an adjusted amount of $768,489.44. 

Project manager Kyle Meschko presented the amended contract to the city council. 

He said the amended contract’s goal is to match the timeline of upcoming bids and align with contractor schedules. 

“Contractually our role doesn’t change. We are contractually responsible for the design [of the project] that doesn’t change regardless,” Meschko said. “Legally, our contract defines our roles. The main driver for these cost increases is extending the duration of construction.” 

He said the whole reason for additional costs moving forward is that the project duration has been extended.

“Our services were based on a 12-month construction period. During the final design meeting, it was elected to increase that period to provide more opportunities for procurement of supplies. 

“That wasn’t an issue two years ago,” he said, touching on the shortage of supplies that has plagued many construction projects across the country due to shipping delays and lack of materials. 

City Councilwoman Deb Rauth agreed weather and supply chain issues affected the project and construction timelines. 

David Sims, member of the city's sewer committee, agreed the amended contract was logical. 

The city council unanimously approved the amendment to the contract.