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City engineer reports $232,003.32 in liquidated damages for East Side Lift Station; council to withhold payment until completion
Summary
City engineer Jay told the council the East Side Lift Station project remains subject to $232,003.32 in liquidated damages for incomplete items; council members said they will deduct that amount from final payment per contract and hold the funds until work is finished.
City engineer Jay (introduced by the chair as "Jay from PGR") briefed the council on final documentation needed to close out the East Side Lift Station project and identified liquidated damages of $232,003.32 related to final completion.
Council members discussed options for resolution and agreed the damages would be deducted from final payment unless the contractor provided compelling justification. One council member summarized the practice: "The liquidated damages, we're gonna deduct that from final payment. Right?" Staff and the engineer confirmed the amount has been held back and will not be released until the work meets contract specifications.
The exchange made clear the city regards the withheld funds as leverage to secure completion; the council discussed inviting the contractor to a January meeting or a smaller meeting to negotiate any claim for reduction. No vote to change the hold amount was taken at the meeting; staff said the withheld amount remains in city control pending final resolution.
