#19 - Whistling Valley Street and Utilities Pay Request 12

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STAFF REPORT DATE: November 6, 2024 CONSENT AGENDA ITEM: Approve Pay Request No. 11 (Final) for the Whistling Valley Street and Utility Improvements SUBMITTED BY: Chad Isakson, Project Engineer REVIEWED BY: Nicole Miller, City Administrator Sarah Sonsalla, City Attorney Clarissa Hadler, Finance Director Marty Powers, Public Works Director Jack Griffin, City Engineer ISSUE BEFORE COUNCIL: Should the City Council approve Pay Request No. 11 (Final) for the Whistling Valley Street and Utility Improvements? BACKGROUND: Jacon, LLC was awarded a construction contract on January 4, 2022 to complete the Whistling Valley Street and Utility Improvements. The contractor has completed the work in accordance with the contract, plans, and specifications, including all punch list items. The warranty period has expired and final payment effectively closes out the project. PROPOSAL DETAILS/ANALYSIS: Jacon, LLC has submitted Partial Pay Request No. 11 (Final) in the amount of $74,339.16. Final documentation has not been provided by the contractor, which includes the consent of surety, contractor lien waivers, and IC-134s. These documents are required by the contract to release final funds. The city has received communications from the surety company demanding project funds to be held or, if released, paid to the surety. The city has also received communications from subcontractors informing the city that they have not been paid by the general contractor for their work on the project. The city has been seeking resolution on the matter from the general contractor but has received limited communication in return. On October 2, 2024 the city attorney sent communications to the surety company to verify they will accept funds in exchange for a release from all outstanding payment claims. A formal response has not yet been received. In order for the city to seek reimbursement for all Project expenditures, it is critical that final payments be processed prior to the MPCA Grant Agreement expiration on December 31, 2024. Therefore, staff is recommendation that the city council approve the final payment subject to making the payment to contractor’s surety, provided that the surety accepts payment and releases the city from all outstanding claims or future payment obligations related to the Project. FISCAL IMPACT: None. Final payment is being recommended within the authorized project scope and budget. The final total project cost is projected to be $3,295,000 of which $1,641,400 is related to street improvements, $1,238,300 is public watermain improvements and $415,300 is private water connection and well sealing costs. The project is being paid through the MPCA Grant (3M Settlement funds) and the total project costs have come in below the authorized grant amount of $3,660,000. RECOMMENDATION: Staff is recommending that the City Council approve, as part of the Consent Agenda, Pay Request No. 11 (Final) for the Whistling Valley Street and Utility Improvements subject to