The south Rushford street improvement project is still underway and is under the gun from the approaching weather. At the Tuesday, October 18 Rushford Village council meeting, two residents of the area were on hand to question whether or not problematic areas will be addressed and when.
Mayor Gordon Johnson admitted he was not in a position to answer when project issues could be addressed, but was adamant that they would be addressed, even if it came down to the city doing the work and then billing the contractor. The city has been expressing frustration with contractor McHugh Excavating since July when the contractor originally aimed to get the work completed.
The contractor has been under subject of liquidated damages since passing the substantial completion date last month. Now, residents are noting to the city that some work is not done as it said it would be, not done well or is damaged. “It’s not acceptable,” said Public Works/Maintenance Supervisor Travis Scheck of the recent work.
Councilor Chad Rasmussen stated he’d toured the area and had a close look at some of the work, including finish landscaping. “It’s not good. They’re trying to cover it up.” Rasmussen also eluded to an email from the contractor to the city regarding concerns which Rasmussen questioned as some sort of threat. According to Mayor Johnson, it insinuated the Village wouldn’t be the first to impose penalty on the contractor.
Johnson tried to ease resident frustrations. “We’ll be sure when we’re done that you’ll be satisfied with the end result.”
The third Pay Application for McHugh has been approved by the council in the amount of $263,297.89. This includes a liquidated damage deduction of $7,650 in the city’s favor. Engineering firm Bolton & Menk has recommended the pay application be approved by the council, but not sent yet to the contractor. Even with the pay application, the contractor has not been paid half of the contracted amount, according to Mayor Johnson.
In addition, Bolton & Menk recommended the third and final pay application of $7,287.81 for Dunn Blacktopping. Both the council and residents noted satisfaction with the company. “When they say they’re going to do it, they’re there the next day.”
In other news, the city is proceeding with work on the 2017 budget. Seeking more information, the council had previously requested information about the sewer and water loans, as they strive to budget and plan for future improvements. City Treasurer Judy Graham presented the information to the council.
The loan for well #1 matures in 2032. $305,000, it has a rate of 1.49%. A principal payment of $14,000 is made annually. Interest payments are made in February and August. Every two years, the principal amount increases by $1,000, but the interest payment reduces.
The sewer fund, #602, had the original construction loan paid of earlier this month. The upgrade loan for the sewer plant is still active. Aquired in partnership with the City of Rushford in 2011, the loan was for just under $1.4 million at 1.077%. The Village’s obligation of which is 9.39%. Graham noted the annual payment is $73,000 annually and the Village pays 9.39% of that, or $6,855.
The Village is aware that the City of Rushford is planning for another upgrade and it was noted the amount discussed for the upgrade had been estimated at $800,000. More information will be needed as the Village plans for how to accommodate their portion of the upgrade.
“Just to be sure we remain whole is our biggest task,” said Johnson. “It’s important information.”
The council also briefly discussed results from a Planning and Zoning Commission conversation regarding the Interim Use Permit issued to Featherstone Farms. Zoning Administrator Pettit had previously discussed whether some additional ordinance would need to be formulated and defined, but in review, both the state of Minnesota and Occupational Safety and Health Administration (OSHA) oversee what would be covered in an ordinance. “We’re probably in pretty good shape,” said Pettit. “As long as they have to abide by those, we don’t need to put together another ordinance. If there’s a problem, we’ll turn is over to the state or OSHA and let them deal with it.”
The council received a decision on its recent Homeland Security and Emergency Management damage and impact assessment report. According to Public Works/Maintenance Director Scheck, FEMA is asking that the city provide more documentation and photos. “They want us to keep track of man hours, machine hours, receipts; they want a paper trail a mile long,” said Scheck.
“This is why we put in these kinds of hours. Do I stop? Go home?” he added. Scheck had been scheduled to reduce his hours next month to 32 per week, but with road work repair following the extensive September rains and any added FEMA documentation, he’s pressed for time already.
“It has to get done before winter,” said Mayor Johnson. “It’s against us to not allow this to get done.” The council gave its approval for Scheck to continue working his current hours until the work is completed or the weather becomes unfit for the work.
The next regularly scheduled council meeting is Tuesday, November 1, at 7 p.m., at the Village Hall. The public is encouraged to attend.
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