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Council authorizes 30‑day notice to terminate contractor on Nature Center project; surety to be engaged
Summary
Council authorized the city engineer to send a 30‑day termination-for-default notice to J. Payne Organization LLC for the Nature Center building project and authorized the mayor to make a claim against the contractor’s surety so the surety can intervene to finish the project.
The council authorized staff to issue a 30‑day notice to terminate the contract with J. Payne Organization LLC for the Nature Center building project and to pursue a claim against the contractor’s surety so the surety can step in to complete the work.
Staff described a history of frequent owner‑architect‑contractor (OAC) meetings, extensive documentation of incomplete items after the contract time elapsed, and proactive discussions with the surety. Staff said the surety has been responsive and will meet with city staff to review outstanding items and to consider providing a party to complete the project under bond protections.
“We’ve already taken the preemptive action to keep the surety abreast,” staff said, adding the city would meet with the surety to walk through identified items and ask the surety to intercede quickly. The presenter described the step as contractual and protective for the public entity: issuing a termination notice and calling the bond is part of the standard remedy under construction contracts when contractors fail to complete work within contract terms.
Council voted to authorize sending the 30‑day notice and pursue the surety claim. Staff said they will meet with the surety and report back to council.
