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