In a surprising turn of events, the Wichita City Council has quietly waived up to $5 million in late fees for the delayed Wichita Water Works plant project, which is now more than a year behind schedule. This decision has sparked controversy and raised questions about transparency and accountability. But here's where it gets controversial... The Eagle's investigation reveals that the council approved a change order on September 17, 2024, which waived the late fees, despite the fact that the project was not yet complete under the original contract terms. And this is the part most people miss... The original contract stipulated that late fees would be charged for any delays after the agreed-upon date of 'Substantial Completion,' which was set for September 17, 2024. However, due to a design flaw in the plant's clarifiers and limited water availability during the drought, the contractors fell behind schedule. So, what happened next? The council declared that Wichita Water Partners had reached substantial completion, even though they hadn't under the original terms. To do so, they changed the definition of substantial completion in the contract, deleting the language that required the plant to be 'utilized for the purposes for which it is intended.' This move allowed the city to certify to the EPA that the water plant had been 'inspected by authorized representatives of Owner, Contractor, and Engineer, and found to be substantially complete.' But wait, there's more... The city no longer had to file quarterly construction reports with the EPA, which meant the latest delays went unreported. This lack of transparency led the federal agency to inaccurately celebrate the completion of the project in a 2024 annual report, which has since been corrected. And now, the real question is... What does this mean for the city and its taxpayers? The contract as it stands says the city and Wichita Water Partners agree that liquidated damages are the 'sole and exclusive remedy for delay.' However, the late fees for delays after the city granted substantial completion are $0 a day. City Hall declined to answer questions for this story, but suggested that the city 'retains remedies to address its damages.' The decision to waive the late fees was motivated, at least in part, to free up funds so that contractors could be paid for their work up to that point, city officials said at the time. However, Council member JV Johnston, the only council member to vote against the change order in 2024, said he agrees the council should have been made aware of the change to late fees. 'So, we weren’t really advised that we were going to waive $5 million in late fees,' Johnston said. ‘It should have been in our write-up. We should have been told, there’s no doubt.’ The plant is not expected to be operational until 2027, and the city is now left with an aging plant with significant deficiencies. The council members respond to the late fees, with Mayor Lily Wu expressing concerns about the process and asking the new City Manager to figure out what recourse the city has at this point. Council member Mike Hoheisel said he did not know he was voting to waive future late charges when he voted for the change order in 2024. He said he and the rest of the council didn’t think it would be necessary. But Hoheisel said he has since been assured by Gary Janzen, director of Wichita Public Works & Utilities, that Wichita Water Partners and city officials have been in talks about recouping any losses or damages the delays have cost the city. He said he wants any agreement in writing and presented to the council for a vote. 'I think this council has been pretty clear that the days of handshake deals are over at City Hall,' Hoheisel said. So, what's next for Wichita and its water plant project? The city is now left with a complex situation, and the council members are trying to navigate the best course of action. The public is left wondering whether the city has the right to seek compensation for its damages and whether the contractors will be held accountable for the delays. It's a story that will continue to unfold, and one that will keep the public engaged and curious.
