Serving the Platte Valley since 1888
The town of Saratoga will likely come to a settlement with Reiman Corporation worth $31,000, the town council announced at their Sept. 9 meeting after an executive session.
“Talking with (town clerk Suzie Cox), we felt the easiest way would be we would pay Reiman their retainage, and they would write a check back to the town,” town of Saratoga Engineer Chuck Bartlett said.
Though the settlement is not final, the town council voted in favor of releasing the retainage fee for the water meter project, which totals more than $180,000. In return, Reiman Construction would reimburse the town $31,000 of that fee.
Bartlett told the council he was confident the money from Reiman would come back after the retainage fee was paid.
Councilwoman Sue Howe said in her discussions with the Carbon County Saratoga Impact Joint Powers Board (water and sewer board), the settlement was offered in an attempt to keep the matter from going to court.
“That could be a no-win situation,” Howe said.
Bartlett said he was informed by their attorney to take the $31,000 retainage fee from Reiman if it was offered.
Saratoga resident and mayoral candidate Don Sherrod asked the council if there would be a written agreement between the town and Reiman before they released the retainage.
“I would suggest you do not approve this at this time, until you have a written agreement between the council and the construction company,” Sherrod said. “If you do it, like you intend to right now, I would assume that you have no other recourse than going into litigation to settle it.”
In a response to Sherrod’s comment, councilman Steve Wilcoxson said if the matter is taken to court they could get the entire retainage fee.
“We’ve been looking at it … this looked like the best route to go,” Wilcoxson said.
“We don’t have a lot of leverage, so this here is the best [decision],” Wilcoxson added after discussion.
Councilwoman Judy Welton said the town would not release any of the funds before a written agreement had been reached.
The council changed their motion to release the retaining fee given a written agreement between the town and Reiman.
The next town council meeting will take place on at 6 p.m. on Sept. 16 at Saratoga Town Council.
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