Laserfiche WebLink
Councilmember Riley asked if the focus of the program would be on items that will provide the <br />most efficiency. <br /> <br />City Engineer Westby provided additional details on the information received from other cities <br />that have previously received grant funds from this program, highlighting some of the items that <br />provide the most water savings. He noted that the program could contain specific information on <br />the type of appliances and equipment that would be eligible and even the brand/cost. <br /> <br />5.02: Staff Update on New Retainage Requirements for City Construction Contracts <br /> <br />City Engineer Westby reviewed language related to retainage from the League of Minnesota <br />Cities website. He noted that all parties to public construction contracts entered into after August <br />1, 2019 are subject to these new statutory requirements and limitations regarding the withholding <br />and release of retainage, which is the portion of earned contract funds withheld by the owner <br />from the contractor pending completion of the project. The most notable changes to the <br />retainage laws that apply to the City of Ramsey construction projects are: <br /> <br />The City must release all retainage within 60 days of substantial completion. <br /> <br />The Prime Contractor must release to its Subcontractors all remaining retainage as the <br />Prime Contractor receives retainage from the City. Once the Prime Contractor has <br />received retainage from the City, the Prime Contractor must pay retainage on undisputed <br />work to its Subcontractors within 10 days. The Prime Contractor does not need to pay <br />retainage on disputer work, but it must pay the undisputed portion and provide its <br />Subcontractor with a written statement detailing the dispute. <br /> <br />when the work can be occupied and used for its intended purpose, but a provision was <br />added for highway, street and bridge work to define substantial completion as when <br />construction traffic control and inspections are no longer needed. <br /> <br />If punch list work remains after substantial completion, the City may continue to <br />withhold up to 250% of the value of the punch list work. The City must provide the <br />Prime Contractor with a written statement of the amount and reason for the withholding, <br />and the Prime Contractor must provide a copy to any affected Subcontractor that requests <br />it. <br /> <br />The City may withhold the lesser of one percent of the contract, or $500, until the final <br />project paperwork is provided. <br /> <br />Withholding for warranty work is not permitted, but neither is any warranty claim <br />waived. <br /> <br />City Engineer Westby stated that the new law does not require payment for work yet to be <br />completed or for which no invoice has been submitted, and the City does not need to pay for <br />those portions of the work funded with federal or state aid until those funds are received. In <br />summary, though the new laws mean that Prime Contractors and their Subcontractors may not <br />have to wait as long for their retainages to be paid, there is an increased risk of the premature <br />release of retainages being held to ensure compliance and completion of work, which may <br />construction contracts are consistent with and reflect these changes in the law. <br /> <br />Public Works Committee / October 15, 2019 <br />Page 3 of 6 <br /> <br />