3.3 Pay Application 2023 Street Maintenance ProjectRequest for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Public Works City Engineer Wagner August 28, 2023
PRESENTER(s) REVIEWED BY: ITEM #:
Consent City Administrator/Finance Director Flaherty 3.3 – Pay Application
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 #1 to Pearson Bros, Inc.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No
BACKGROUND/JUSTIFICATION:
The 2023 Street Maintenance Project has been completed, including striping. Payment for striping has not been
requested yet. In accordance with Minnesota Statute, the City is withholding the maximum of 5% retainage of work
completed, which amounts to $1,687.60 at this time until a final payment request and final documentation is received
from the Contractor.
Change Order #2 revises the scope of the project. Bituminous material for seal coat will be removed from the project in
its entirety. Due to revisions in the scope, a payment for hauling aggregate away from the project is included. Change
Order #2 will decrease the construction cost by $23,228. The current contract amount net of change orders is
$142,770.76.
SUPPORTING DOCUMENTS ATTACHED:
•Pay Application #1
•Change Order #2
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to approve Pay Application #1 in the amount of $32,064.40 to Pearson Bros, Inc. for work completed on the
2023 Street Maintenance Project and to approve Changer Order #2.
BUDGET INFORMATION
FUNDING: BUDGETED:
Fund 201 – Pavement Management Yes