One of the contractors that put in main sewer lines in Sisters last year is suing the city for some $689,278 for alleged breach of contract.

Commercial Redi-Mix of Salem, Oregon, claims that the city owes compensation for extra work required to remove volcanic rock on part of the project; for extra trench excavation; for deflecting lines to meet stubs that were off line; relocating manholes and for delays that increased the company's overhead.

The City of Sisters does not accept those claims.

"After reviewing their case, we feel there's no merit to the issues they're raising," said Sisters Mayor Steve Wilson.

However, the City of Sisters plans to hire an attorney specializing in construction law to ensure that the city's position is correct, according to the mayor.

"We are seriously re-examining and reviewing all our records of the project to make sure we haven't missed something," he said.

There is more at stake for the city than is usually the case in lawsuits, most of which are turned over to an insurance company for litigation or settlement.

"The City of Sisters is taking this lawsuit particularly serious in the light of the fact that a lawsuit of this type is an uninsured liability against the city," Wilson said.

That liability threatens to wipe out most of the city's $847,000 cash reserve, should a decision go against the city.

Wilson said the city will only settle if it is determined that some amount is legitimately owed.

"It's always been the city's policy that, if we're wrong, we'll make it right, but if we're right, we'll take it to the end conclusion," he said.

Author Bio

Jim Cornelius, Editor in Chief

Jim Cornelius is editor in chief of The Nugget and author of “Warriors of the Wildlands: True Tales of the Frontier Partisans.” A history buff, he explores frontier history across three centuries and several continents on his podcast, The Frontier Partisans. For more information visit www.frontierpartisans.com.

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