8/21/2006 - City Council - Special - Minutes • CITY OF SPRING PARK
SPRING PARK, MINNESOTA
MINUTES
SPECIAL MEETING
OF THE COUNCIL
AUGUST 21,2006
11:30 A.M.—CITY HALL
Council Members Present: Mayor Rockvam, Council Members Hughes, Reinhardt,
Williamson,
Council Members Absent: Widmer
Staff Present: Utility Superintendent Goman,Administrator Friesen
Others Present: City Attorney Tom Seifert, City Engineer Ken Adolf, Bolander V.P.
Curt Wercinski, Bolander Project Manager Fred Dyck, Bolander Utility Superintendent
John Molamphy
Call to Order
Mayor Rockvam called the meeting to order at 11:40 a.m.
• Lift Station #6
The purpose of the meeting was to negotiate the payment amount for change order#2 and
pay request #8. The Council and the representatives from Bolander prefer to settle the
dispute by negotiation rather than expending more dollars for arbitration and attorney
fees. Fred Dyck stated that $220,000 was acceptable. Mayor Rockvam said we need a
starting point to negotiate a settlement. We can talk details such as soil borings and
changed soil conditions and construction methods but we need to negotiate a price.
We're just down to costs.
Fred Dyck offered to take off $20,000 and to lower the payment to $190,000 if paid
quickly. This would cover Bolander's direct costs, overhead and profit were a
concession.
It was questioned by council members if the project had reached a conclusion or were
there some issues to be resolved yet. Attorney Seifert and Engineer Adolf stated there
was retainage for miscellaneous punch list items.
The insurance claim for the sewer backup at 4636 Shoreline was discussed. Curt
Wercinski stated Bolander is responsible due to a bypass failure.
Engineer Adolf stated the lift station is working. The construction was completed in
January. It has been eight months and if anything was to go wrong it should have shown
up by now.
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Mayor Rockvam reminded the council that Presbyterian Homes paid $30,000 towards the
project. This is a credit to the overall project cost.
D.J. Goman stated the old lift station cover needs to be replaced. This would be an
additional project cost to the city,but not associated with Bolander.
The council wants to agree on a dollar amount and then bump up .the retainage to cover
any additional punch list items.
The three employees from Bolander excused themselves from the room to allow the
council time to discuss their offer of$190,000.
The council had previously proposed $121,523.65 to settle Bolander's claims. After
further discussion the council agreed to offer$160,000 to settle:
$121,500 + $8,800 (1/2 cost of wetwell sections that broke during removal) = $130,000
rounded. The halfway point of the city's offer ($130,000) and Bolander's offer
($190,000) is $160,000. The council agreed to propose $160,000 to settle.
The three Bolander employees rejoined the meeting and were told of the new offer of
$160,000. The three then left the room to consider the offer.
• Upon returning to the meeting Curt Wercinski stated that Bolander would accept
$175,000. They were not happy, but that amount would get it done.
The Council discussed the pros and cons of the offer one final time. Motion by
Reinhardt, seconded by Hughes to accept$175,000 as the payment for change order
#2 and pay request #8 conditional upon a waiver or dismissal being signed by
Bolander that the payment was full and final and that $10,000 be withheld from the
payment for retainage. Upon roll call Reinhardt, Hughes, Williamson and
Rockvam voted aye. Motion declared carried.
Mayor Rockvam adjourned the meeting at 1:05 p.m.
Gl L'C _ 'l.i?-c"k
S rah Friesen
Administrator/Cl erk/Trcasurcr
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