Minutes - Public Works Committee - 09/18/2012

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Jeffrey Wise, 7901 156 Avenue, stated there are some issues with sign easements and with his purchase of a COR lot, he does not want to pay for a sign that he cannot see. Development Manager Lazan stated the City agreed to allow Connexus a location on HRA property, but not this location. Councilmember McGlone stated the Council took this project back, on the City's part, and decided to be the inspectors and manage the construction so liability is with the City for construction management. Councilmember Elvig stated it is a $10,000 issue and definitely involves a protocol and process that should be resolved. He felt the bottom line is that the HRA is the client and the client does not pay unless there was an oversight. Councilmember Elvig stated the City would be the next in line if it is doing construction management, and four vendors are also involved. He supported addressing the protocol because there may be similar future issues. City Administrator Ulrich suggested directing staff to negotiate with Connexus on a reasonable settlement and bring it back for Council approval. Chairperson Backous stated he thinks that would be a reasonable next step. Interim Engineer Nelson stated staff attempted to do that negotiation with Connexus prior to tonight's meeting. Connexus had acknowledged the CAD drawings but said there were newer discussions and went back to the job site discussion. He stated he is happy to attempt further negotiations. Motion by Councilmember McGlone, seconded by Chairperson Backous, to recommend that the City Council direct staff to negotiate with Connexus to cover the cost to relocate its cabinet from HRA property. Further discussion: Councilmember Elvig asked if something similar occurred with the Oasis property. City Administrator Ulrich recalled it was with the Ramsey Raceway project and Connexus ended up covering the cost. Interim Engineer Nelson stated WSB staked the location and the contractor prepared the pad. Chairperson Backous asked if Connexus has errors and omissions insurance. Development Manager Lazan stated this amount is below their deductable. Councilmember Elvig agreed that multiple vendors were involved and should be included in the negotiation. Substitute motion by Councilmember McGlone, seconded by Chairperson Backous, to recommend that the City Council direct City Administrator Ulrich to have all parties in the room at one time and negotiate a settlement for City Council consideration. Motion carried. Voting Yes: Chairperson Backous, Councilmembers McGlone, and Elvig. Voting No: None. Public Works Committee / September 18, 2012 Page 13 of 16