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Mayor Strommen stated during tonight's Work Session, the Council considered the Strategic <br />Action Plan including a discussion on processes. She noted this is one item that can be included, <br />these more complex projects, and a process to assure staff has the back -up needed. <br />City Engineer Westby stated the Engineering Department shepherded several projects quickly <br />through the process in addition to three assessment projects. It is currently preparing the Garnet <br />Street plans and once past the 2015 Street Maintenance Program, Garnet and Jarvis projects, staff <br />will start on next year's construction projects and request authorization to update the feasibility <br />report. <br />Councilmember Riley stated it was indicated that once reimbursed, the City's cost overrun would <br />be $79,000 but it looks like there is cost of $448,000 and reimbursement of $166,000, which <br />leaves $282,000. <br />City Engineer Westby referenced the third page of the report detailing staff's estimate of the cost <br />overrun. He explained that staff worked with the contractor to reduce or omit pay cost items to <br />lower the project cost, noting one was an earthwork item that totaled $130,000. City Engineer <br />Westby stated it is estimated at $245,655 over the awarded contract amount less $166,000, <br />totaling $79,000 (after LLC reimbursement). <br />Councilmember Riley asked staff to respond to the critic who would say the winning bidder <br />underbid the project and found a way of getting back to even. <br />City Engineer Westby stated the winning bidder did not under bid and find a way to recoup their <br />low bid. He explained there were plan errors and the contractor bid the project based on the <br />prepared plan. City Engineer Westby stated he is not about assigning blame, despises change <br />orders as much as the Council, and finds it perplexing because this plan was reviewed internally, <br />by the consultant, and by MnDOT, yet these items were not caught. He stated staff needs to do a <br />better job reviewing the plans. <br />Mayor Strommen asked about the status of the parcel being transferred by Anoka County. <br />City Engineer Westby stated staff met with Anoka County staff on several occasions to work <br />through the property searches to make sure the property was not obtained by Anoka County by <br />an act that would not allow transfer. He stated the County Attorney is drafting the document to <br />allow that transfer to occur and staff has been providing information to assure the title transfer <br />will occur. <br />Mayor Strommen asked about the type of agreement with the LLC on the reimbursements and if <br />there is a better way to handle that. <br />City Engineer Westby stated there is a verbal commitment and the MOU frames this whole <br />discussion but does not provide legal impetus. He stated a cost share agreement was drafted but <br />they were not willing to commit in writing until the City received the property. <br />City Council / March 24, 2015 <br />Page 10 of 14 <br />