Flint, MI– Flint City Council unanimously voted Nov. 12 to approve a change order of more than a million dollars to the contract with Goyette Mechanical Co. for service line replacement services.
The company requested $1,169,686 for “incurred costs servicing two zones of the ten service line replacement zones due to the elimination of hydro-vac services.”
City Attorney Angela Wheeler said the city has received approval from the Michigan Department of Environment, Great Lakes and Energy (EGLE) to be reimbursed for the funds.
On May 2, 2018, city council approved a resolution authorizing a contract with Goyette for servicing two of the ten service line replacement zones for $5,626,830 with disbursement of funding from EGLE.
The next month, there was an internal change to the contract which eliminated hydro-vac services. The change was not part of the bid specifications according to the resolution, and so additional costs were incurred.
In September 2019, Goyette filed a lawsuit against the city of Flint for $1.1 million, the incurred costs from the elimination of the hydro-vac services.
Councilwoman Monica Galloway asked if someone could explain how the city and EGLE “came to the decision to reimburse for this from June 2018,” but she was unable to get answers.
City Administrator Clyde Edwards said the change order was an item that was addressed as a part of a closed session, and therefore there were parts of it that could not be openly discussed.
“So, for the record that is accessible, this is part of a settlement…and this is the proper way to handle this portion of it…and the city of Flint is not going to incur any expenses.” Galloway said. “Is that safe to say on the record?”
Wheeler replied, “it’s reimbursable.”