Army Corps Delay May Cost Chardon City $100,000
The U.S. Army Corps of Engineers has delayed issuing a permit for construction of Meadowlands Drive Extension, which could cost Chardon City $100,000.Last Thursday, an…
The U.S. Army Corps of Engineers has delayed issuing a permit for construction of Meadowlands Drive Extension, which could cost Chardon City $100,000.
Last Thursday, an ordinance was put on first reading by Chardon City Council authorizing the city manager to pay Loreto Development Company, Inc. $100,000.
The sum is a fine connected to a lawsuit settlement that dates back to 2002, city Law Director James Gillette said Friday.
In the settlement, the city was obliged to complete the short section of the extension south off Water Street within 30 days of the third anniversary of the closing date of the contract, Gillette said.
Because the ACE has not issued the permit, the city is unable to meet the deadline and will likely have to pay LDC the liquidated damages, he said.
“We’re considering various options,” Gillette said. If the ordinance is read at the next two council meetings, the $100,000 would be paid in June.
However, the ACE did issue a permit for the southwest sanitary sewer project from Wilson Mills Road to Water Street across the same parcel, he said, adding work is scheduled to begin the second week of April and be substantially complete by the end of August.
DiGioia-Suburban Excavating, LLC won the bid.
The city has hired an attorney in Akron who specializes in such cases to deal with the permit for the Meadowlands Drive Extension, Gillette said.
In other business, council voted unanimously to have the city manager enter into a contract with Eclipse Company, LLC. to build the 10-foot-wide, asphalt Maple Highlands Trail connection from Fifth Avenue south to Water Street.
Five bids ranging from $444,863 to $537,030 were opened March 25 with Eclipse from Chagrin Falls being the lowest, according to the manager’s report.
