Petaluma pays sewer plant builder $4 million to settle dispute

Petaluma has agreed to pay a contractor that built the city's $160 million wastewater treatment plant an additional $4 million to settle a legal dispute over final billing.

Kiewit Infrastructure West was seeking about $13 million in compensation it said it was due after completing the massive Ellis Creek sewer treatment plant on Petaluma's east side.

Ellis Creek opening


The city hired Kiewit in 2005 and the plant went into service in 2009.

Kiewit submitted documents with the city claiming it was due additional payment for construction delays and changes in the design that cost more than initially anticipated.

The company was threatening to sue over the dispute and had entered into closed-door meetings with city leaders over how to reach a compromise.

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