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Caledonia council approves Pay Application #29 for wastewater plant but withholds $1,000 per day for delay
Summary
The Caledonia City Council approved Pay Application No. 29 for the wastewater treatment plant totaling $203,943.32 on July 22, 2024, but voted to withhold $1,000 per day in liquidated damages effective July 30, 2023, citing a late invoice and schedule concerns; staff will coordinate with the engineer and legal counsel.
The Caledonia City Council on July 22 approved Payment Application No. 29 for work on the city’s wastewater treatment plant while imposing a $1,000-per-day withholding for delay.
City Clerk/Administrator Jake Dickson introduced Pay Application No. 29 and told the council the invoice was submitted late because of an error and that the payment amount was not aligned with the project completion timeline. Finance Officer Stephanie Mann had earlier reported the city’s budget was on track.
Council Member Robert “Bob” Klug moved to approve the payment “with $1,000 withheld per day since July 30, 2023.” Member Dave Fitzpatrick seconded the motion; it passed unanimously. The council instructed staff to continue working with the Engineer of Record and the city’s legal counsel to reconcile timing, contract compliance and any outstanding documentation.
The amount listed on the Pay Application was $203,943.32. The withholding direction is intended to address project schedule slippage and the late submission of the application; the council did not specify an end date for the withholding in the record provided.
Next steps identified at the meeting include staff coordination with the engineer and legal counsel to determine whether additional documentation or adjustments to the payment schedule are required. The council did not take further budget action at the meeting.
