2012-2014 Utility/Street Project general contractor, subcontractors owe electric, fire department bills
The focal point of the rescheduled Mountain Lake City Council meeting on Monday evening, September 8, was an attorney/client closed meeting, which council members convened within the regular meeting to discuss the summons received, and impending lawsuit brought, against the City of Mountain Lake by Kuechle Underground Inc. of Kimball. Kuechle was the general contractor for the 2012-2014 Utility and Street Project.
Kuechle maintains that the city breached the contract by “failing to provide plans and specifications that were adequate” In the complaint, Kuechle alleges that the company performed Utility/Street Project work according to the contract, its obligations and the plans and specifications as was noted and given to them by the city. And, despite that work, certain portions of the work performed in both 2012 and 2013 settled (includes 2nd Avenue, 5th Avenue, 6th Avenue and Prince Street).
The complaint continues with the statement that Kuechle did not cause the settlement on the project, and reserves its right to seek reimbursement for the related extra costs of the remedial work necessary to correct the settlement. According to the complaint, as of its date, the city has not paid Kuechle for the extra costs incurred because of the settlement.
Kuechle attests that, because of the city’s breach of the contract, the general contractor has been damaged in an amount greater than $50,000, with the exact amount to be determined at trial.
When the regular meeting reopened, it was noted that no action was taken.
Project retainage withheld until unpaid bills are paid
On a related topic, council members reviewed Utility/Street Project unpaid bills owed the Utility’s Electric Department, as well as the Mountain Lake Fire Department.
Kuechle owes a total of $11,726.81 (including $118.30 in interest added until January 2014), while subcontractor Koehl Construction owes $4,668.41 (including $469.48 in interest added until January 2014). Together the unpaid bills totals $16,395.22.
The council decided that these bills will be addressed before project retainage is paid.
In other business
* Handled sidewalk replacement also connected to the Utility/Street Project. The sub-contractor hired to replace missing sections of sidewalk could not complete the work this spring because there were properties where the private sewer line work had not been done. Since that time, many of the properties have had this work completed. However, the sub-contractor is not returning. Local contractors have been contacted to provide quotes for the work. Affected property owners have received letters encouraging them to get their sewer work done so that the sidewalk on their property can be poured yet this fall.
* Approved payment of partial pay of $813,688.60 to Kuechle Underground for work done connected with the Utility/Street Project.
* Learned that well drilling for new Well #7 began on Tuesday, September 2.
* Received proposals from five auditing firms for auditing services on the 2015 Budget. The city and utility should be able to reduce costs. Mountain Lake City Administrator/Clerk Wendy Meyer will be checking the firms’ references. A recommendation is to be made at the council’s Monday, September 15 meeting.
* Adopted the 2015 Levy.
* The regularly-scheduled Tuesday, September 2 council meeting was not held due to a lack of a quorum. The meeting was then rescheduled for Monday, September 8, following the housing rehabilitation informational meeting.
