05-13-1992 Council Agenda - Laserfiche WebLink

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`V G /2 '` -'`' 9;414 ` ievnGC7a 515 Little Canada Road, Little Canada, MN 55117 -1600 (612) 484 -2177 / FAX: (612) 484 -4538 MEMORANDUM TO: Mayor Hanson and Members of the City Council FROM: Joel Hanson, City Administrator DATE: May 6, 1992 RE: Final Payment to Kraus - Anderson MAYOR Raymond G. Hanson COUNCIL Beverly Scalze Bill Blesener Rick Collova Jim LaValle ADMINISTRATOR Joel R. Hanson For the past few months, I have been meeting with Jim Beckwith of Kraus - Anderson to resolve issues I raised related to final payment to that firm. My concern centered around additional charges we were invoiced for on the final bill dated October 11, 1991. After a meeting with Mr. Beckwith on May 5, 1992, the following summarizes the situation at this time. ITEM INITIAL BILLING REVISED BILLING K -A On -site Supervision K -A Project Manager K -A Safety Division K -A Legal Services Dorsey Whitney Legal Sv. Express Messenger MN Dept. of Labor Liability Insurance Total: $22,800.00 20,092.00 719.00 36.25 726.00 222.80 540.00 7,868.00 $53,004.05 $18,600.00 14,092.00 .00 .00 362.25 222.80 540.00 .00 $33,817.30 Based on the concessions made at our meeting of May 5, we would now owe Kraus - Anderson $24,004.44 to close out the project. This would be an increase in payment to them of $33,817.30. Much of this amount is related to job cost items which should be paid with the balance being related predominantly to the additional 14 weeks of construction time that they are asking to be compensated for. Under a general contractor project, we would not be subjected to these types of additional charges. However, I also do not feel we would have had the control or expertise available to us which would allow us to effectively manage the projects obtaining a high degree of quality while minimizing our cost. My initial reaction is that we should Page 15