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I I. I I I I I I I I. I I I I . . . .- . ,ARDEN HILLS CITY COUNCIL - AUGUST 14.1995 11 Councilmember Malone inquired if there was an outlet in Kerth Lake. Mr. Stonehouse indicated there was not. Councilmember Malone suggested an alternate be added to include some sort of pump station or mechanism for outlet. MOTION: Malone moved and Hicks seconded a motion to adopt Resolution 95-59, Authorizing The Preparation of Plans and Specifications and also direct the City Engineer to prepare preliminAry analysis for a Karth Lake level control mechanism. Motion carried unAnimously (5-0). Midwest Asphalt Pav Estimate Number One (1) City Administrator Fritsinger indicated based upon the work completed as of July 31, 1995, the total amount of pay estimate number one is $376,375.65 and it is recommended by MSA consulting engineers, that retainage in the amount of$37,637.57 be withheld from the Contractor's payment. Councilmember Malone indicated he has no doubt that this reconstruction project is the worst he has ever encountered. He was unsure how to address the outstanding issues, but he noted the retainage fee may be a fair amount to withhold. He indicated if work continues in the same manner, the City use other options. Councilmember Hicks inquired as to the basis for the 10% retainage. Mr. Stonehouse noted the state allows a 5% retainage and MSA Consulting typically retains up to 10% on early pay estimates until such point that 5% of the entire contract is reached. Councilmember Hicks indicated the contractor will expect some retainage. Mr. Stonehouse indicated this is correct. Councilmember Hicks stated he felt work already done should be paid for, but a clear message needs to be sent to the contractor regarding the outstanding issues and the City's displeasure. He indicated the contractor should be told if the outstanding issues are not addressed, the next payment may not be as generous. Councilmember Aplikowski indicated since 10% is typically withheld, to send a clear message, she suggested an additional 5% should be added. She felt the contractor has not done right by the residents. Mayor Probst indicated he originally was inclined to hold the payment over for two weeks, but by the contract the City must pay in a timely manner. He suggested sending a full payment with the noted retainage, with a message from the City indicating future payments may not be as generous if the outstanding issue are not addressed. He noted once the asphalt is down, the City may hold a stronger position.