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-7- <br />July 16, 1975 <br />B -E asked if it would be alright to leave the floor open a couple of weeks to <br />see if the system would work. <br />Administrator Achen said leaving the floor another week or two is not as critical <br />as finding a solution to the problem. <br />Attorney Meyers asked if there was any structural damage to the building. <br />B -E Enterprises said they haven't observed any structual damage and are <br />not in a position to say if there is any. <br />Mr. Walijarvi said the sump tank area is not chopped open yet but will be <br />checked. <br />Attorney Meyers said that any requests for payment by B -E must come through the <br />architect, with his recommendation. <br />Mr. Walijarvi said he would leave the matter of payment for contractor to <br />the City's judgment. As an architect, if B -E states that this amount of <br />money is due, he has to sign the request and that the City should pay it. <br />He is in sympathy with B -E because of the extraordinary amount of money expended <br />on this situation. It may not be resolved for months. He would hope it could <br />be resolved through arbitration. It is the technical problem that all <br />parities involved will understand. The money has to come from somewhere. <br />If it comes from his office it has to come through his insurance company. If <br />Mounds View would pay in the sense that it is emergency work he thinks it <br />might not be a bad gesture. He said B -E needs moral encouragement and <br />financial help if possible. <br />Attorney Meyers told Council they could: 1. Pay additional money and carry <br />through on the architect's recommendation and hope to recover from someone <br />else. 2. Refuse to pay and go through B -E's performance bond to get the <br />necessary work done. He doesn't feel taxpayers should be stuck for this. <br />Mr. Walijarvi didn't think City will be the goat for this, that either the <br />City's insurance company or his insurance company will pay. <br />Meeting was recessed at 7:50 p.m. <br />Meeting was called back to order by Mayor Johnson at 8:32 p.m. <br />Mayor Johnson explained to the gentlemen present that Council informally discussed <br />the situation with advise of counsel. And the following was decided: <br />1. The City will not transmit any funds to the contractor for any <br />additional costs that may be incurred currently to solve any of <br />the problems in the basement. It is recommended that the architect <br />posthaste speed up filing of any claims with his insurance company. <br />If there are no results, and if the contractor does not want <br />to assume the cost until a determination is made as to who <br />is legally liable, then the contractor should seek to recover its <br />costs from the architect. The contractor must continue the <br />construction of the building to completion. <br />