Council approves payment adjustment for Mercer Construction after closed-session review

The Seadrift City Council voted to authorize an additional payment of $128,856.93 to Mercer Construction, a step the mayor said would bring the project up to the previously approved not-to-exceed contract amount of $400,430.05, including one approved change order.

Council discussion earlier in the meeting focused on competing accounting of Mercer’s pay applications, what the city has paid so far and whether penalties applied. Mayor (Speaker 2) summarized the city's records, saying the city had paid $305,448.07 to date and that Mercer’s paperwork listed outstanding amounts that would push the total above the council’s not-to-exceed figure. Council asked whether change orders should be approved retroactively or whether the city should hold the contractor to the original contract limit.

A council member noted Mercer had included a $10,020.30 penalty in its pay application. Another participant criticized Mercer’s paperwork and said, “He admitted dropping the ball. That's not our fault. They didn't follow protocol and get the stub approved.” That comment was offered during debate and was not recorded as a formal finding by the council.

The mayor moved to repay Mercer Construction $128,856.93 to reconcile the accounts and reach the not-to-exceed total; Danny Evans was recorded as the seconder. The motion carried on an affirmative voice vote.

The council also discussed the option of taking further review in closed session before completing payment; the mayor announced an attorney consultation under the closed-session rules, after which the repayment motion was offered and approved. The council did not record additional conditions tied to the payment in the public minutes during this meeting.