Ritzville City Council provides update on Well No. 9 station

In the recent meeting of the Ritzville City Council Milton Rowland of Foster Pepper, PLLC, presented in regards to the status of the Well No. 9 Pump Station.

The Well No. 9 Pump Station project contract began on April 24, 2014, between the City of Ritzville and the contractor, Kirby-Hunt Construction.

The two parties agreed upon a contract amount of $935,280.06 and for the project to be completed in September 2014. At the contractor’s request the date was extended to Oct. 23, 2014, in order for the electrical equipment to be procured and installed.

Currently, the contractor has been paid $851,448.54 and the project is one year and three months overdue.

The contract includes the provision of the City to receive compensation upon a breach of the contract. This stipulation states the cost is set at $550 per day and currently is at approximately $254,000.

On Nov. 14, 2014, during the first start-up of the pump, the pump malfunctioned.

The contracter deemed the problem as the non-reverse ratchet mechanism assembly and replaced the part. Then the contractor attempted a second start-up on Dec. 23, 2014, which again, did not succeed.

At this time the pump motor was believed to be defective.

On Jan. 12, 2015, the subcontractor and pump installer, Layne of Washington Inc., removed the ratchet to ensure the shaft could spin freely and determined it could not.

Ritzville City Attorney Mark DeWulf sent a letter to the Contractor on Jan. 27, 2015, explaining the City’s possible intent to declare the contractor in default of the Well No. 9 Pump Station contract.

DeWulf then requested the involvement of Layne of Washington Inc. to solve the problem. Layne of Washington then removed the pump and shaft/column assembly in order to more effectively diagnose the problem.

The contractor then reinstalled the pump and recommended the non-reverse ratchet mechanism be removed, which the engineer, Varela and Associates, approved.

A run through then took place on May 13, 2015, and the pump worked well.

The next step included a training session, which took place June 15, 2015. At this time the pump made loud, abnormal noises upon shutdown.

After this, efforts were made to diagnose the problem but Layne of Washington stated they were unwilling to remove the pump/shaft assembly a second time without being compensated.

The City’s engineer provided a memorandum on July 31, 2015, outlining the issues they had with the project.

In this memorandum, the engineer mentioned multiple inconsistencies with their observations and Layne of Washington’s explanation of the problem. They described the issue as a mechanical issue with the pump and not a hydraulic condition.

On Aug. 4, 2015, the contractor and pump installer appeared before the Ritzville City Council and confirmed a problem with the pump. They suggested the city run the well and allow for a “break-in period.”

The engineer could not condone this solution, as it increased the chances for further damage to the pump.

Mayor Gary Cook stated this process has been a test of patience for the City, including the staff, the Council and former Mayor Linda Kadlec.

He said right now the City has guarded optimism about a solution.

At the end of August last year, the performance bond surety, the Ohio Casualty Insurance Company, sent the City a letter.

The letter informed the company of the project errors to date and advised the contractor had been given ample time and opportunity to fulfill the responsibilities outlined in the contract.

Due to this lack of fulfillment the City of Ritzville declared a default and cited their right to have a completed and operational pump station with no defects.

The Ohio Casualty Company acts as the surety for the agreement and will therefore take responsibility for the actions of the contract.

This gives Ritzville the opportunity to pay a separate contractor to complete the job with funds provided by the Ohio Casualty Company.

Upon receipt of this letter, the Ohio Casualty Company conducted an investigation of the pump project. This took place on Nov. 19, 2015, by a hydraulic engineer.

The City engineer then recommended to remove the pump entirely to properly diagnose the issue.

A report from the investigation has not been provided but a second expert was brought in to continue the investigation.

In early January 2016, the investigators stated they would be removing the pump and the associated shafts and columns for further investigation.

After the investigation is complete, the Ohio Casualty Company will inform the city whether they will accept their request for default and complete the project. Cook said he expects results from the investigation in the middle of February.

The City of Ritzville applied for the Drinking Water State Revolving Fund Loan (DWSRF) in partnership with the Washington State Department of Commerce. This loan contains a strict timeline for completing projects.

The planned projects cannot be completed until the pump is functioning. If the timeline is not met it could account for severe consequences for the city.

The City would encounter a massive funding shortfall, as their fund balance for the project is $3,662,000. Failure to meet deadlines can be directly traced to the contractor’s failure to complete the project per the contract.

Currently the City is in constant communication in regards to the DWSRF to ensure they are able to request an extension and they have been told this is possible. The City is advised to wait to make the request to ensure they have requested enough time for the project to be completed.

The funding for the pump will also come from this loan. Currently, Cook said they are unsure which costs will be covered under this loan, as attorneys have been brought in to review the situation.

Cook explained because Foster Pepper had been hired before the creation of the 2016 budget, they have funds to cover the costs of the attorney’s time.

The City remains optimistic the situation will not move into litigation, but Cook said it is a possibility. The City would prefer to resolve the situation outside of court, Cook added.

The City considers the point they are at a fresh start and they are receiving a renewed effort towards the completion of the project.

For now they have no timeline on the completion but are hopeful it will be done by spring or summer in preparation for hotter weather.