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Lakeville council approves settlement with Phoenix Fabricators, redirects surplus bond funds to water projects
Summary
The Lakeville Town Council on July 6 approved a settlement with Phoenix Fabricators over a delayed water tower project, authorized use of surplus sewage-work revenue bond proceeds and a supplemental engineering agreement with DLZ to design and inspect additional water system improvements.
The Lakeville Town Council voted July 6 to authorize a settlement with Phoenix Fabricators and to use surplus bond proceeds and contingency funds to complete additional waterworks projects.
The chair introduced a settlement agreement intended to resolve delays under the contract dated Oct. 2, 2023, between the town and Phoenix Fabricators and Directors LLC. In lieu of assessing liquidated damages, the company offered to complete additional projects to benefit the town’s water system at no cost to the town; the council moved and approved the settlement by voice vote.
Council members also approved a resolution described as a special purchase and a separate resolution reallocating surplus proceeds from the town’s sewage works revenue bond series 2020. The chair read background showing the original bond ordinance adopted Aug. 21, 2023, authorized up to $9,500,000 and closed Sept. 29, 2023.
A consultant from DLZ explained that the water tower project included a general contingency and that one of the changes is adding lighting with the town logo on the east side of the tower. DLZ also presented a list of additional projects the town could fund using remaining SRF and bond-eligible dollars: preliminary engineering report amendments, surveys and designs for Lake Street and Grama Street water-main replacements and service abandonments, valve replacements at the treatment plant, filter-media coordination, and SCADA upgrades. A staff member said the projects came in under budget, reporting “about, it’s about three quarters of 1,000,000,” and that SRF had approved consideration of additional projects.
The council moved to authorize DLZ’s supplemental engineering and inspection services and to use the available funds for the described water projects; the motion was seconded and approved. Council members noted remaining contingency (about $20,000) would be retained for any final small items.
What happens next: staff will finalize the settlement paperwork for signature and proceed with the supplemental engineering work and design tasks; some projects are expected to be bid later in the winter and completed by the following August, according to the staff presentation.
Provenance: Topic introduced in transcript at SEG 052 and concluding coverage at SEG 346.
