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Commission authorizes payment of $19,185.64 to Haley Irrigation; marina contractor to seek reimbursement from Aban Marsh
Summary
The commission authorized payment to Haley Irrigation for June marina irrigation work after Auban/Aban Marsh declined earlier payment commitments; staff said Marsh now will reimburse two-thirds and the city will pursue reimbursement or legal remedy where appropriate.
The commission authorized payment of $19,185.64 to Haley Irrigation to close out irrigation work at the Boyne City marina completed in June. Staff explained the payment was required because grant reporting requires invoices be closed before grants can be finalized.
City staff said representatives for Aban (transcript alternately spelled) Marsh initially indicated they would pay the irrigation invoice but later stated their on-scene representative lacked authority. Aban Marsh has now offered to reimburse two-thirds of the invoice after the city pays Haley; staff and the city attorney advised the commission that the city must pay Haley to meet grant requirements and then seek reimbursement from Marsh.
Commissioners expressed frustration about repeated contractor disputes with Marsh and said staff should pursue documentation of any promises, seek reimbursement and tighten future contract change-order practices. The commission approved authorizing the city manager or clerk-treasurer to execute payment to Haley and asked staff to pursue recovery of funds from Aban Marsh and to produce reconciliation of outstanding amounts for the larger marina contract.
The motion passed; staff said they will follow up with the city attorney regarding recovery and present a reconciliation of outstanding obligations to the commission.
