The city of Carroll has agreed to pay $50,000 to a Menlo company to settle a lawsuit that stemmed from a water pipe project from which the city withheld partial payment after a significant delay in the project’s completion.
Drake Construction was hired in 2015 to lay a 16-inch-diameter plastic pipe that was more than a mile long to connect two new municipal wells to the city’s water system at the cost of about $753,000.
Its contract with the city stipulated that the work was to be complete by that November, but records show the new wells did not come online until two years later.
City records from November 2017 show that the total cost of the project swelled — because of city-requested changes — to about $793,000, but that the city withheld about $40,000 of that because the project hadn’t been completed.
Drake Construction filed suit in 2018 to obtain the remaining amount. It recently reached an agreement with the city to dismiss the lawsuit, which happened last week.
The new wells boosted Carroll’s municipal water capacity by about 40 percent.