Item 3.5 Martin Farms Lift Station No 4 Improvements Project Pay Application 1
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Utilities Utility Manager Neidermeier June 8, 2026
PRESENTER(s) REVIEWED BY: ITEM #:
Consent
AE2S Engineer Hanson
City Administrator/Finance Director Flaherty
3.5 – Pay Application for
Martin Farms Lift Station
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
Is a strong organization that is committed to leading the community through innovative communication.
X Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and expectations in a
cost-effective manner.
Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City Staff are recommending City Council approval of Pay Application #1 to Pember Companies.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No
BACKGROUND/JUSTIFICATION:
The amounts requested in Pay Application No. 1 are reflective of partial payments for building and control panel
issued upon completion of project milestones, including execution of purchase order and completion of shop drawing
review. Contractor submitted pay application alongside photographs of items purchased as evidence of work
progress. The current request totals $252,857.53, reflecting 30.0% of the contract value completed or stored to date.
The remaining balance to finish, including retainage, is $590,724.27.
In accordance with Minnesota Statute, the City is withholding 5% retainage on completed work, which totals
$13,473.17 for this pay application.
During this period, one (1) change order was processed in the amount of $5,156.80, including no change to contract
times, that was approved administratively. Current changes represent a cumulative net change of 0.62% increase in
overall project bid cost. A 5.00% construction contingency is included in the approved project budget and financing
package.
SUPPORTING DOCUMENTS ATTACHED:
• Pay Application #1
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to approve Pay Application #1 in the amount of $252,857.53 to Pember Companies for work completed on
the Martin Farms Lift Station (No. 4) Improvements project.
BUDGET INFORMATION
FUNDING: BUDGETED:
Fund 601- Water Utility (10-12%)
Fund 602 – Sanitary Sewer Utility (88-90%)
Yes
Detail Page 2 of 3 Pages Invoice:2Draw:
AmountAmount
CONTRACTED
Unit of
Measure
Bid
Quantity
Unit
Price
Amount
CURRENT TOTAL TO DATE
Quantity Quantity Units to
Finish
DescriptionItem
ID
REQUEST FOR PAYMENT DETAIL
Project:26-0006-01 / OTSEGO, MN-MARTIN FARMS LS 15955 Period Ending Date:5/26/2026
20 MOBILIZATION 67,500.00 1.00LS 67,500.00 1.00
30 SURVEYING 6,500.00 1.00LS 6,500.00 1.00
40 ELECTRICAL 300,000.00 107,820.00 0.64 0.36LS 300,000.00 1.00 0.36 107,820.00
50 ASPHALT & FINE GRADING 21,000.00 1.00LS 21,000.00 1.00
60 FENCE 8,800.00 1.00LS 8,800.00 1.00
70 REMOVALS 11,500.00 1.00LS 11,500.00 1.00
80 CONCRETE 20,500.00 1.00LS 20,500.00 1.00
90 BUILDING 385,125.00 158,510.70 0.59 0.41LS 385,125.00 1.00
100 START-UP 5,000.00 1.00LS 5,000.00 1.00
110 RESTORATION & PUNCH LIST 7,500.00 1.00LS 7,500.00 1.00
120 BYPASSING 5,000.00 1.00LS 5,000.00 1.00
9910 CO # 1 Generator Receptacle 5,156.80 1.00 5,156.80 1.00
266,330.70Totals 843,581.80 266,330.70
0.41 158,510.70
Detail Page 3 of 3 Pages Invoice:2Draw:
AmountAmount
CONTRACTED
Unit of
Measure
Bid
Quantity
Unit
Price
Amount
CURRENT TOTAL TO DATE
Quantity Quantity Units to
Finish
DescriptionItem
ID
REQUEST FOR PAYMENT DETAIL
Project:26-0006-01 / OTSEGO, MN-MARTIN FARMS LS 15955 Period Ending Date:5/26/2026
CO CO AmountCO Item and Description
1 CO # 1 5,156.80
5,156.80Total Change Order amount