Council approves Marcus Construction change order and final pay applications to close project with USDA financing

The Olivia City Council approved change order #11 for a Marcus Construction project and authorized final pay applications needed to close the job and switch to USDA financing.

Brian Peterson, controller for Marcus Construction, told the council the contractor originally presented a materials increase of about $56,000. After internal reconciliation, Marcus identified roughly $38,000 of those material charges as items that may have resulted from contractor error and about $12,000 that had been presented during construction as contingency items. Peterson said the firm reconciled the accounts and proposed offsetting credits against labor so the net additional charge would be minimal; by the meeting Marcus agreed not to add further change at the close of the project.

"We ultimately want to ... leave on good terms with the city of Olivia," Peterson said. He summarized the reconciliation as reducing the net new change to a small amount and said Marcus submitted a change order that increases material contract value and decreases labor contract value by roughly matching amounts.

Council then moved and seconded approval of change order #11 and later approved pay application 10 for both materials and labor. City staff said the submitted credit invoices and pay applications are needed to reconcile the contract and close out with USDA financing so the city can switch from interim financing to USDA financing.

Council thanked Marcus Construction and staff for their work on the project. The transcript records voice votes approving the change order and pay applications; specific numeric tallies were not provided in the record.