Minutes - Council - 01/27/2009 - Laserfiche WebLink

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City Engineer Jankowski replied this is a well-defined stream and it was important to keep the culvert matched up to both ends of the stream. Councilmember Look asked why this is being financed through the storm water utility fund. He also stated it appears the original construction was faulty. City Engineer Jankowski stated the storm water utility fund is used for problems already existing in the City for drainage and is not eligible for new construction. Councilmember McGlone asked if the cost for the 12" pipe should be deducted since the contractor was required to use a 24" pipe instead. Public Works Director Olson stated that is how the specifications were written and the price derived. He added if the City desires to maintain the pipe, the cost would have gone up dramatically. Motion by Councilmember Jeffrey, seconded by Mayor Ramsey, to adopt Resolution 09-01-024 approving Change Order No 1 increasing the contract price with Dryden Excavating for Improvement Project 06-30 to $149,394.08; and approving Partial Payment No 2 in the amount of$50,768.75. Motion carried. Voting Yes: Mayor Ramsey, Councilmembers Jeffrey, Dehen, Elvig, Look, McGlone, and Wise. Voting No: None. Absent: None. Councilmember Elvig stated it was important to note that the overall project was estimated at $150,000, which represented a pretty good estimate. Case #6: League of Minnesota Cities-Insurance Trust (LMC-IT) Waiver Form- Consider Waiving/Not Waiving the Statutory Tort Limits Assistant City Administrator Nelson requested Case #6 and Case #7 be heard next in order to accommodate Mr. Lenz, the City's insurance agent of record. Assistant City Administrator Nelson stated as part of the annual renewal of the City's property, casualty, and liability insurance coverage, the City Council is required to pass a resolution waiving or not waiving the statutory tort limits for its liability coverage. She noted that the City Council approved not waiving the statutory tort limits for 2008. Mr. Mark Lenz, insurance agent of record for the City, appeared before the City Council and stated about one fourth of cities in the state buy excess coverage and approximately 10-15% choose to waive the tort liability limit. Councilmember Dehen stated he was not generally in favor of limiting the tort liability from the perspective of a citizen, but it prevents some cities from being exposed to a large verdict over and above its insurance policy limits. He stated a good example of this is the 35W bridge City Council / January 27, 2009 Page 9 of 20