City terminates contractor, approves new contractor on eastside sanitary sewer project

At the March 31 Maryville City Council special meeting, the council approved the termination of a contract with Blue Nile Contractors, Inc. and executed a new one with Pyramid Excavation and Construction, Kansas City, for the completion of the eastside sanitary sewer replacement project.

The vote for both actions was 4-0, with Councilman Jason McDowell absent.

The project replaces an existing 21-inch undersized sanitary sewer main located along the south side of US Highway 136 from Nucor LMP to the Maryville Wastewater Treatment Plant. The existing line is in poor condition and is subject to significant amount of inflow and infiltration of storm water. A new 36-inch sanitary sewer main will be installed to address existing volumes and provide expansion capacity for the system.

History on the project:

•On June 22, 2020, the city council approved a contract with Blue Nile Contractors, Inc. for construction of the project with the amount not-to-exceed $597,264.12. That firm provided the lowest of four bids.

• On September 14, 2021, the city council approved Change Order No. 1 to the contract with Blue Nile in the increased amount of $24,697.05 to upsize four sanitary manholes, making the total contract price $622,185.32.

• Blue Nile Contractors, Inc. completed approximately 65 percent of the project with three paid invoices totaling $281,656.77.

• In early February, construction activities appeared to stop at the project site and the contractor’s equipment was removed.

• The City of Maryville then began receiving unpaid material invoices from suppliers claiming nonpayment from the general contractor. Staff then discovered the contractor had not submitted a valid payment bond and began consultation with the City Attorney Taryn Henry.

• The city attorney is working to determine legal options for unpaid material invoices. She said the city council could now terminate the contract and execute a new contract to complete the project, if desired.

City staff has met with two interested contractors regarding completion of the project. Bids were provided from Pyramid Excavation and Construction, Inc. in the amount of $254,288 and White Cloud Engineering and Construction, in the amount of $315,555.

Pyramid Excavation and Construction, Inc. has indicated they will utilize all existing pipe and materials on site and can begin within the next two weeks. It is estimated the project will take 30 days to complete if the weather is good. Upon approval of the contract, staff will ensure valid performance and payment bonds are provided prior to issuing the Notice to Proceed.