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Council approves $399,751.86 payment application, withholds $27,000 for liquidated damages

Caledonia City Council · September 9, 2024
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Summary

The council approved Payment Application No. 31 for $399,751.86 on Sept. 9 but withheld $27,000 in liquidated damages (at $1,000 per day since a July 30, 2023 contract expiration); the motion passed 4-0.

City Clerk/Administrator Jake Dickson introduced Payment Application No. 31 for $399,751.86 at the Sept. 9 Caledonia City Council meeting and recommended approval while withholding $27,000 in liquidated damages.

Dickson said the $27,000 represents liquidated damages calculated at $1,000 per day since the contract expired on July 30, 2023. Member Amanda Ninneman moved to approve the pay application with the withholding; Member Ryan Stenzel seconded the motion. The council voted 4-0 to approve the payment with the $27,000 withheld.

The council did not discuss additional adjustments to the payment during the meeting. The withheld amount will remain until the council or appropriate authority resolves the liquidated-damages issue or authorizes release.