3.4 Pay Application #3 2021 Trail Improvement Project
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Public Works City Engineer Wagner November 8, 2021
PRESENTER(s) REVIEWED BY: ITEM #:
Consent City Administrator/Finance Director Flaherty 3.4 – Pay Application
Trails Project
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
Is a strong organization that is committed to leading the community through innovative
communication.
X Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City Staff is recommending City Council approval of Pay Application #3 to Novco, Inc.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No
BACKGROUND/JUSTIFICATION:
This payment is being made for work completed through November 2, 2021. Novco, Inc. has substantially
completed the project, including all ADA ramps and restoration.
In accordance with Minnesota Statute, the City is withholding the maximum 5% retainage of work
completed, which amounts to $17,265.35 at this time. The City is also withholding $300 per day of
liquidated damages per the contract, which totals $13,800.00 at this time.
Novco, Inc. has requested staff and Council to discuss liquidated damages assessed. Staff will present
information at an upcoming Subcommittee meeting, with City Council consideration for the November 22
Council meeting.
SUPPORTING DOCUMENTS ATTACHED:
• Pay Application #3
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to approve Pay Application #3 in the amount of $42,199.64 to Novco, Inc. for work completed on
the 2021 Trail Improvement Project.
BUDGET INFORMATION
FUNDING: BUDGETED:
Fund 202 – Trails Management
Fund 203 – Park Development
Yes
Contractor's Application for Payment No.To (Owner): Application Application Date:Period:October 7 through November 8Project: From (Contractor): Via (Engineer):Application For PaymentChange Order Summary1. ORIGINAL CONTRACT PRICE............................................ $Number2. Net change by Change Orders...................................................$3. Current Contract Price (Line 1 ± 2)..........................................$4. TOTAL COMPLETED AND STORED TO DATE $5. RETAINAGE: $a. 5% X Work Completed..................... $b. 0% X Stored Material........................$c. Total Retainage (Line 5.a + Line 5.b)............................$6. AMOUNT ELIGIBLE TO DATE (Line 4 - Line 5.c)............. $7. LESS PREVIOUS PAYMENTS................................................$8. LESS LIQUIDATED DAMAGE (46 DAYS @ $300/DAY)…$9. AMOUNT DUE THIS APPLICATION................................... $Contractor's CertificationENGINEER: HAKANSON ANDERSON Certification: We recommend payment for work and quantites shown.Date:OWNER: CITY OF OTSEGOContractor SignatureBy: Date:Date:3City of OtsegoNovember 8, 2021Otsego 2021 Trail ImprovementHakanson AndersonNovco Inc.$17,265.35Approved Change Orders$316,033.25Additions Deductions$0.00$316,033.25$345,307.07$0.00$17,265.35$328,041.72$272,042.08(Engineer)(Owner)TOTALS$0.00 $0.00$13,800.00NET CHANGE BY$0.00$42,199.64CHANGE ORDERSThe undersigned Contractor certifies, to the best of its knowledge, the following:(1) All previous progress payments received from Owner on account of Work done under the Contract have been applied on account to discharge Contractor's legitimate obligations incurred in connection with the Work covered by prior Applications for Payment;(2) Title to all Work, materials and equipment incorporated in said Work, or otherwise listed in or covered by this Application for Payment, will pass to Owner at time of payment free and clear of all Liens, security interests, and encumbrances (except such as are covered by a bond acceptable to Owner indemnifying Owner against any such Liens, security interest, or encumbrances); and(3) All the Work covered by this Application for Payment is in accordance with the Contract Documents and is not defective.