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with no use of the basement since last May and June. I really don't
see that the City is liable for the problems in any way and should
not be front ending the costs. I think the funds should be withheld
and, if they refuse to complete the building, have it completed by
other means.
Administrator Achen: The total of the payment due them is $12,272.20.
Walijarvi: I think B -E are due money. I agree with the three Councilmen
that the differences will be resolved. Let's get the building completed.
Mayor Johnson: In an effort to get the building completed at this point,
will you accept $8,181.42 and put in three more days and get it done?
Miller: We have to stick with our original amount.
Mayor Johnson asked Council if there is any action to be taken.
Attorney Meyers: We have paid already $8,800 over and above the anticipated
cost. We are placed in a position tonight with a 99% building.
Administrator Achen stated that the three days necessary to finish is only
B -E's portion and does not include the other contractors.
Attorney Meyers stated that our architect, who is the City's agent, feels
that they should be paid. Remedy is to notify the bonding company that
the contractor refuses to go ahead with the job and face the risk of
hiring another contractor and maybe not collecting on the bond.
Councilman Pickar: To the best of my knowledge I didn't intend that we
were not going to pay.
Attorney Meyers: We could argue that we anticipated taking the change
order out of the normal commission of the contract. We unilaterally
conditioned the acceptance of it. It is not a clear cut, one -sided
question.
Councilman Pickar: By withholding payment, we could be required to pay
it twice.
Attorney Meyers: The bonding company could argue that they had legitimate
grounds. They had done the work. Does the system that we now have work?
Until we get a downpour we won't know. We would not sign any releases
until we know. Everyone wants to see B -E finish the building but on what
terms is up to the Council.
Walijarvi: My opinion is that those change orders were signed on the basis
that they be paid. If the Council feels they are out $22,000 -- as of this
date our firm has not requested payment from the City of Mounds View
of $12,000 due us. Again, like the contractors, we have performed work.
We indicated to you earlier that we would not apply for any payment at
this time so the $22,000 for the extra changes can be partially covered
by the amount of monies that our firm has not received. I offer this as
a gesture of good will in trying to compensate for some of the errors
we have made.