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July 16, 1975
who is going to pay for this? It is a good point. He said he has tried to
ignore it early in the game. There are several involved, the city, his office,
general contractor, also mechanical contractor. He said he would not go into
that. Who should pay is going to be resolved. Mark Achen has asked several
times and he "pushed it aside to try to get problem resolved first ". His
office has omissions and errors insurance to cover any defaults in design
with a $5,000 deductable, because they believe they never make an error.
Whether B -E or Berghorst may be at fault, he hates to be judge of that.
He doesn't care to pass judgment . And whether his company is responsible
for $5,000 or $10,000, his insurance company will represent them and will want
to investigate the situation. They are going to want to recover whatever they can
if we are in error and find out whoever else is in error. They have already started
that in his office and the insurance company is going to send them a form to fill
out. He asked for a copy of Mounds View's insurance policy covering insurance
on the building. He said he talked to some insurance companies to see if Mounds
View's insurance will cover something that was done other than his office. There
is a substantial amount of money involved and it will have to be resolved.
Ommissions and errors insurance does cover a lot of items due to construction,
unfortunately, most insurance doesn't cover flood and he doesn't know whether this
is considered a flood or not.
Attorney Meyers asked B -E if there is any question in their minds that they
have to proceed to a conclusion of the project.
Mr. Miller said they will continue the work to complete the building. The
water problem is separate from the completion of the building. But they
will want some idea of how this thing is going to go. He thinks they would
have some question of proceeding with dewatering until they are sure what is
going to happen.
Attorney Meyers said he interprets the contract documents that B -E will have
to furnish a completed workable product. Change orders may be submitted
with the architect's approval. The City expects a finished building and at
this time doesn't see why the City should be involved in extra cost. The
City wants the building completed as soon as possible. And further, the
City is not in a legal position to pay more money than authorized by contract.
Mr. Miller stated he is not in a position to find fault with the city's
reasoning. They will proceed with completion of the building at this point,
other than the question of dewatering area, and will receive counsel on that
point and whatever counsel advises, they will do. They would like very much
to complete it.
Mr. Erickson said it will take a couple more days to dewater and he doesn't
look for anything to be dry until Monday. The second sandpoint was going
between 12:00 and 1:00 p.m. today.
Attorney Meyers asked Mr. Walijarvi what specific errors and omissions
he was talking about earlier.
Mr. Walijarvi said he thought that this was just another ordinary project. They
had soil investigations taken to find out where the water table was and it was
6.67" above the floor level of the proposed basement. They had perimeter
drain tile and sump pit included in basement plan to allow for this. The water