Contractor suing Marysville for $1.1 million

nated its contract with RGW last December without paying the company what it said it was owed.

RGW’s work consisted of converting the city's wastewater treatment plant in the Feather River bottoms into a pump station with pressurized pipe.

“The city was responsible for inspection and testing of compaction but failed to properly test and inspect and incorrectly reported the results of the inspection and testing to RGW, on which RGW relied, causing the compaction to be less than required by the contract and requiring part of the work to be recompacted and performed a second time,” the suit said.

RGW alleged it was damaged by about $508,000.

The company also alleged it was delayed on the project in the amount of about $157,000, of which the city paid $80,400.

Last December, the suit said, Marysville canceled the contract “for the city’s convenience,” owing RGW $1.2 million, of which about $133,000 was paid.

Government contracts usually have a standard clause which gives the government the right to unilaterally terminate the contract at any time with or without giving any reason. The contractor is generally entitled to a negotiated settlement for an equitable recovery of costs and losses incurred.

Marysville, the suit said, breached its contract with RGW by “failing to properly inspect, test and report as to compaction, delaying RGW and not paying properly ... and not paying in full RGW’s termination for convenience costs.” The suit seeks $1,119,387.64. The project stems from a cease and desist order issued by the state Regional Water Quality Control Board ordering the city to remove treatment ponds from the flood plain. The order came amid state concerns that sewage from the ponds could leak into the Feather River during high water.

A 2012 agreement with the Linda district to take the city's sewage provided a lower-cost option to remedy the state's concerns, city officials said. The route for the new line will go through the Yuba River, over the top of the levee and along Feather River Boulevard to the Linda plant.