10-24-95 Council Special Minutes

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MINUTES CITY COUNCIL OCTOBER 24, 1995 The City Engineer reported that the performance bond is in effect until the time the City accepts the project. The City then has a two-year warranty on labor and materials after acceptance of the project. Nagle asked the value of the performance bond as well as the 5% retainage that the City will hold. The City Engineer replied that the performance bond is a warranty. The contractor purchases a performance bond from a bonding company. The 5o retainage is withheld pending final completion of the project and acceptance by the City. Nagle stated that his concern is that the street will not be done property and the City will have no money withheld to ensure its completion. If it is necessary for the City to go after the contractor and the performance bond, the City will incur attorneys fees to do so. Scalze suggested that the City could recover attorneys fees from the performance bond. The City Engineer replied that that would be up to a judge. However, usually attorneys fees are not recoverable. The City Administrator pointed out that the project will not be accepted until it meets City standards. Fahey felt there was adequate protection to ensure a good project. Fahey stated that the City will not accept the project unless it is done correctly. Fahey also noted the punch list the City is compiling for the project and asked that property owners be sure to add any concerns or problems they are aware of to that list. Nagle stated that it should be clear that completion dates were not met. Nagle suggested that rather than pay the contractor, payment should be withheld as liquidated damages. Fahey replied that pursuing liquidated damages will be discussed. However, the City wants the contractor to complete the project first. Nagle stated that property owners are concerned about frost, and believe that problems will show up in the street which will not be easily repaired. Nagle stated 25