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building and there were several changes made to the project. She felt it would be better to accept <br />the offer and move forward. Councilmember Hendriksen replied that he felt they could make a <br />strong argument that having fire equipment sitting outside and unavailable to respond to a fire is <br />a significant safety concern. City Attorney Goodrich stated that he had brought up that same <br />issue, but the Fire Chief informed him that no equipment was left outside. Director of Public <br />Works/Fire Chief Kapler replied that one vehicle was pulled from service and stored at Public <br />Works. Councilmember Zimmerman stated that in the letter from the City Attorney to Thomas <br />Olson it states that on January 31, the exterior panels on the top of the walls were not installed <br />and outside weather was able to invade the building, which was five or six weeks after the due <br />date. City Attorney Goodrich replied that there is no question that Ebert made mistakes. <br />Councilmember Hendriksen inquired as to how much SEH had invoiced the City for during <br />negotiations. City Attorney Goodrich replied approximately $15,000, but not that entire amount <br />has to do with negotiations. Councilmember Hendriksen stated that based on what the City <br />Attorney is telling them they are finding themselves in this position partly because of Ebert, but <br />also because of some of the actions of SEH. He thought the next question would be what should <br />they do about the $15,000 invoiced by SEH. City Attorney Goodrich replied that if the City is <br />going to continue litigation they need SEH and to go to them saying they owe the City money, <br />they probably will not be as willing to help the City. That said, Mr. Goodrich did not think SEH <br />should not be paid the full amount based on what he has observed with the relationship of Ebert, <br />which has placed a cloud over the City to receive the $36,000 they are due. Councilmember <br />Hendriksen inquired if Ebert would accept the $17,000. City Attorney Goodrich replied yes, <br />noting that their subcontractors have placed liens over the Fire Station so they do not want to <br />give them the $17,000 until that issue is resolved, which Ebert has agreed to. Ebert has also <br />agreed to indemnify the City from those subcontractors. Councilmember Zimmerman stated that <br />he thinks there is a perception that the pocket books of the government are deep and businesses <br />take advantage of that. He felt that the City should stand up to that perception. <br /> <br />Motion by Councilmember Hendriksen to amend the original motion to seek the remaining <br />amount of the $36,000 from SEH. <br /> <br />Motion failed for lack of second. <br /> <br />Further discussion: Mayor Gamec stated that he would support that motion after the main <br />motion was voted on. <br /> <br />Motion carried. Voting Yes: Mayor Gamec, Councilmembers Anderson, Hendriksen, and <br />Kurak. Voting No: Councilmember Zimmerman. <br /> <br />Motion by Councilmember Hendriksen, seconded by Mayor Gamec, to direct staff to seek the <br />balance of the $36,000, which would be an amount of $19,000, from SEH. <br /> <br />Motion carried. Voting Yes: Mayor Gamec, Councilmembers Hendriksen, Anderson, Kurak <br />and Zimmerman. Voting No: None. <br /> <br />Finance Committee/October 9, 2001 <br /> Page 3 of 4 <br /> <br /> <br />