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515 Little Canada Road, Little Canada, MN 55117 -1600 <br />(612) 484 -2177 / FAX: (612) 484 4538 <br />MEMORANDUM <br />TO: Mayor Fahey & Members of the City Council <br />FROM: Joel R. Hanson, City Administrator <br />DATE: April 4, 1997 <br />RE: Valley Paving Pay Request <br />MAYOR <br />Michael I. Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morelan <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />Attached is application for payment #6 payable to Valley Paving for the various contracts in our <br />1995 improvement projects. They represent quantity reconciliations that have been verified by <br />the City Engineer as well as additional work items that we had requested during the course of the <br />project. Based on my review of this matter with Harlen Olson of Bonestroo, Rosene, Anderlik & <br />Associates, I am hereby recommending approval for payment. With this pay request, all quantity <br />and pay item requests have been resolved. <br />As an update to the mediation process, I can report that it was largely a waste of time. As you <br />know, we had imposed liquidated damages totaling $96,800. Valley Paving is contending that <br />there should be no liquidated damages imposed and that they should be paid interest on the <br />monies we have withheld to -date. They also indicated at the mediation process, they would be <br />seeking delay damages claims totaling $152,697. In reviewing this matter with the City <br />Attorney, it is my understanding they may not be able to amend their claim to include this <br />amount based on their initial filing. Their argument is further damaged by the fact they did not <br />follow contract notice provisions to legitimize these claims. Additionally, we feel there is very <br />little merit to any of the items they are making claims on. <br />The next step in this process will appear to be discovery action with a trial to occur at a later <br />date. <br />JRH:kpv <br />Enclosure <br />Page 45 <br />