Authorize Construction Incentive Payment to North Valley, Inc. for City project 08-27, 167th Avenue Reconstruction

The reconstruction of 167th Avenue NW was recently completed, North Valley, Inc., is due a contract incentive for meeting the required Minnesota State Aid (MSA) pavement compaction densities on the project.  Because this was an MSA project, and MSA funds were used for construction, state rules require payment for incentives reached when it comes to paving compaction; the idea being that better compaction leads to a longer lasting road.

 

Staff inquired with MnDOT whether this incentive should be allowed since it was brought to our attention following close-out of the project.  Although the general contractor should have brought it to our attention sooner, it does not void the requirement and we are obligated to pay the incentive reached.  Attached to the case is a copy of the standard incentive worksheet from the MnDOT database.  Staff has reviewed and confirmed the information, which shows an amount due of $5,328.74.  Funding for the project, and this incentive, will come from the City's MSA construction funds.

Staff recommends authorization of payment to North Valley, Inc., in the amount of $5,328.74, for pavement density incentives reached on City project 08-27; 167th Avenue reconstruction.

Motion to authorize payment to North Valley, Inc., in the amount of $5,328.74, for pavement density incentives reached on City project 08-27; 167th Avenue reconstruction.