City reviewing change orders

Though the road is finished, the city is far from done with the Indiana 26 (Water Street) project.
Portland Board of Works learned Thursday it must review another change order requested by GAI Consultants, the engineering company hired to draw plans on the sewer and water portion of the project. The change order is for $12,922.50 in water and lighting work.
In December, the board was informed by Indiana Department of Transportation of changes in the contract because of engineering errors the company made. The two change orders total about $128,000 — $91,057.60 for new piping and manholes and $36,923.60 for shutting down the project after realizing there were errors in their work.
The overall project consisted of new road with 11-foot-wide lanes, 16 LED lights, 4-foot wide sidewalks and new sewer and water lines.
“We actually had a session with GAI asking why these change orders are surfacing,” said Portland Mayor Randy Geesaman, “And the next step will be GAI and the city will be talking to INDOT and see if we can resolve these issues. We just feel like these are issues the City of Portland isn’t responsible for.”
Board member Bill Gibson asked when the change orders need to be finalized. After receiving the invoice, clerk-treasurer Lori Aker-Ferguson was informed the amount should be paid immediately. The last time these change orders were brought to the board’s attention, the city had up to 30 days to pay the money. But city attorney Bill Hinkle advised the mayor that the city should not have to pay and instead should meet with the engineering company and the state in an effort to resolve the issue.
The board also approved to start collecting information to give to H. J. Umbaugh and Associates, an accounting firm, for a water and sewage rate study. Geesaman said the study is being conducted to determine if the city’s incoming revenue for water and sewer capital improvement projects will balance out financially. The cost of the study is $12,600.
“It’s something that needs to be done,” said board member Jerry Leonhard.
Expressed concern about the spending and asked if it would be possible to have city workers conduct such a study in the future. Geesaman said it could be a possibility.
In other business, the board — Gibson, Leonhard and Geesaman:
•Approved voiding outstanding checks worth $812.79.
•Approved writing off bad debts worth $418.76. The bad debts are a result of citizens who did not pay their water or sewage bills who the city has been unable to have the option of putting a lien against their property.
•Approved purchasing a used chassis for the city leaf truck at $34,000 from Best Equipment in Indianapolis. Other bids came from Standard Equipment in Chicago at $39,900 and Armor Equipment of Arnold, Missouri, at $46,000. The city leaf truck, a 1986 Chevrolet C60, has had multiple maintenance issues, said street and parks superintendent Ryan Myers. He said a new chassis could cost up to $95,000.
•Approved 2-0, with Geesaman abstaining, to buy a new car for the mayor’s use. The car, a 2014 Chrysler 300 worth $23,900 comes from Fuqua Chrysler Dodge Trucks in Dunkirk. The other option was a 2012 Buick Enclave for $24,300 from Moser Motors of Portland. Leonhard and Gibson approved on the Chrysler on the condition that the city can get updates on the warranty of the vehicle.