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STAFF REPORT <br />DATE:April 7, 2026 <br />CONSENT <br />TO:City Council <br />FROM:Chad Isakson, Assistant City Engineer <br />AGENDA ITEM: Accept Improvements and Approve Pay Request No. 19 (Final) for the <br />Water Tower No. 3 Project <br />REVIEWED BY: Nicole Miller, City Administrator <br />Clarissa Hadler, Finance Director <br />Pete Tholen, Public Works Director <br />Nate Stanley, City Engineer <br />CORE STRATEGIES: <br />☐ Vibrant, inclusive, connected community ☐ Efficient, reliable, innovative services <br />☐ Responsive, transparent, adaptive governance ☐ Balanced Finances now and future <br />☒ Managed Growth ☒ Resilient Infrastructure <br />BACKGROUND: Phoenix Fabricators & Erectors, LLC was awarded a construction contract on January <br />18, 2022 for the construction of Water Tower No. 3. The contractor has now completed the work in <br />accordance with the contract, plans, and specifications, including all punch list items. <br />ISSUE BEFORE COUNCIL: Should the City Council accept the improvements and approve Pay Request <br />No. 19 (Final) for the Water Tower No. 3 project? <br />PROPOSAL DETAILS/ANALYSIS: Phoenix Fabricators & Erectors, LLC has submitted Partial Pay <br />Request No. 19 (Final) in the amount of $52,962.66. The Project Engineer has prepared a Certificate of <br />Completion indicating that all work is completed, including all punch list items, and is recommending the <br />acceptance of the improvements and release of final retainage. The contractor failed to complete the project <br />by the completion dates outlined in the contract. As such, liquidated damages were applied in the amount <br />of $30,912.24 as detailed on the pay request. <br />The facility has been online and operational since 2024. The 2-year warranty period will expire later this <br />year and a warranty inspection has been scheduled to review the facility for any corrective measures <br />required prior to expiration of the warranty. <br />FISCAL IMPACT: None. Final payment is recommended and remains within the authorized scope and <br />budget for the project. The final total project cost came in at $3,743,000 versus the post-bid approved project <br />cost of $3,910,000. The final construction cost component of the project paid to the contractor is <br />$3,397,208.63 versus the contract award amount of $3,465,762.76. The total final project cost includes <br />contingency funds for professional services required to be performed throughout the warranty period. The <br />project is funded by the Water Enterprise Fund.