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Contractor sues Valley Springs for unpaid bill
By By Alica P. Thiele
Challenger reporter
Challenger reporter
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EmailMarch 10. 2010 6:00AM
A lawsuit filed by a Sioux Falls contractor claims that the city of Valley Springs owes them $52,414.98 for work done in 2005.
The complaint was filed in the second judicial circuit court in Minnehaha on Feb. 3 by H&W Contracting LLC, a company that did excavation and paving work for the city in conjunction with the Valley Springs 2005 Sanitary Sewer Replacement Project.
According to the complaint, work was underway in the fall of 2005 when the city told the contractor to stop work Oct. 14, on advice of the project engineer. On Oct. 31, the city again followed the eingineer’s advice and told the contractor to resume work.
Because of the down time, the suit says, H&W had to redo some of the work and had to finish the project on a short deadline.
In addition, the suit states, Valley Springs imposed $9,000 in liquidation damages, a type of late fee, on the contractor.
The sewer project was completed, according to Sandy Severtson, Valley Springs city finance officer.
Todd Meierhenry, attorney for Valley Springs, said the city and H&W have negotiated over the past five years regarding the higher costs and late fees but haven’t come to an agreement.
During their Feb. 9 regular meeting, Valley Springs city commissioners directed Meierhenry to admit service, or acknowledge, the complaint against the city. He did that the first week of March, he said. The city then has 30 days to file a response with the courts.
The commission has its next regular meeting March 9, but it’s unlikely the city will settle on a response then, Meierhenry said. Commissioner Dean Helgeson said commissioners probably will talk about the matter, though. “This project was done before I was on the commission,” he said, so he wants to learn more of the background of the dispute.
Valley Springs Mayor Neal Scadden was unavailable for comment.
William G. Beck, attorney for H&W Contracting, said he is confident the city will file a response within the 30-day deadline. “I’ve talked to Todd (Meierhenry),” he said, “and I’m sure he’ll be filing the necessary documents.”
The reply may not be what H&W seeks, however, Meierhenry said. “Cities aren’t like regular corporations,” he said. “We don’t have the statutory power to pay them. … We’re limited by the contracts and the bid amounts.”
Severtson said the city engineer and the city attorney are requested to attend the April 13 regular meeting of the city commission to discuss the matter and make recommendations.
The complaint was filed in the second judicial circuit court in Minnehaha on Feb. 3 by H&W Contracting LLC, a company that did excavation and paving work for the city in conjunction with the Valley Springs 2005 Sanitary Sewer Replacement Project.
According to the complaint, work was underway in the fall of 2005 when the city told the contractor to stop work Oct. 14, on advice of the project engineer. On Oct. 31, the city again followed the eingineer’s advice and told the contractor to resume work.
Because of the down time, the suit says, H&W had to redo some of the work and had to finish the project on a short deadline.
In addition, the suit states, Valley Springs imposed $9,000 in liquidation damages, a type of late fee, on the contractor.
The sewer project was completed, according to Sandy Severtson, Valley Springs city finance officer.
Todd Meierhenry, attorney for Valley Springs, said the city and H&W have negotiated over the past five years regarding the higher costs and late fees but haven’t come to an agreement.
During their Feb. 9 regular meeting, Valley Springs city commissioners directed Meierhenry to admit service, or acknowledge, the complaint against the city. He did that the first week of March, he said. The city then has 30 days to file a response with the courts.
The commission has its next regular meeting March 9, but it’s unlikely the city will settle on a response then, Meierhenry said. Commissioner Dean Helgeson said commissioners probably will talk about the matter, though. “This project was done before I was on the commission,” he said, so he wants to learn more of the background of the dispute.
Valley Springs Mayor Neal Scadden was unavailable for comment.
William G. Beck, attorney for H&W Contracting, said he is confident the city will file a response within the 30-day deadline. “I’ve talked to Todd (Meierhenry),” he said, “and I’m sure he’ll be filing the necessary documents.”
The reply may not be what H&W seeks, however, Meierhenry said. “Cities aren’t like regular corporations,” he said. “We don’t have the statutory power to pay them. … We’re limited by the contracts and the bid amounts.”
Severtson said the city engineer and the city attorney are requested to attend the April 13 regular meeting of the city commission to discuss the matter and make recommendations.
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A Sioux Falls contractor is suing the city of Valley Springs for work done in 2005. Photo by Alica P. Thiele |  |
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