Rigby City Council agreed to an increase of $20,692 to their East Sewer reroute Pre-treatment Ordinance, based on their contractual obligation, during their Aug. 26 meeting.
Marvin Fielding, from Keller Associates, informed the council members that this was one of those contracts that allowed for an adjustment to be made at the end of the contract, based on construction costs.
“When we wrote the contract, we wrote it based on the $668,000 with no contingencies,” said Fielding. “But if construction costs came in higher than that, we would either decrease or increase the engineering fees based on actual construction costs. So in this case, it came in at $832,643, which was an increase to what was originally stated.”
Council member Doug Burke stated these kinds of contracts are something the council needs to look into from now on; they could always bid lower, that way they can anticipate higher costs.
Fielding stated this is not a typical practice, to adjust the contract after the fact. According to Fielding, when they scope projects with Pubic Works Director Mitch Bradley, they typically include a contingency plan. But in this case, they thought the cost might come in less, so they decided not to include one.
“I don’t have the original plan and opinions of cost that we put together, but it was more than $668,000,” said Fielding. “This was the opinion of cost before the bid, no contingency and no mobilization.”
Fielding reiterated this is not typical, adjusting the contract based on construction, but in this case they did over $832,000 worth of engineering, so the work is already done. In this case, the council agreed to adjust the contract based on actual construction costs.
Burke asked if the Waste Water Treatment Plant contract is written this way, and Fielding said no.
Council member Becky Harrison then moved, based on the council’s contractual obligation, that they increase the East Sewer Reroute contract by $20,692.
Later in the meeting, Kristine Staten, with The Development Company out of Rexburg, then informed the city council of the Professional Service Contract for the Wastewater Treatment Plant the city needs to sign. Staten informed the council it is their typical administration contract.
Staten stated they follow guidelines from the Chamber of Commerce, and it details out exactly what The Development Company will do.
According to Staten, it is a lump sum fee of $90,000, which was negotiated about a year ago. It is for them to administrator funds through the Army Corps of Engineers and USDA. However, they do not have confirmation from the Army Corps of Engineers yet. They have submitted the city’s letter of request, so the Army Corps of Engineers is listed as a future funding source for the time being.
The council unanimously decided to sign the contract and have Staten administer it.