11-16-1981 CC MIN - Laserfiche WebLink

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Page Six November 16,1981 11. Greenhead Acres 3rd Addition Pay Estimate and Cost Overrun The City Administrator indicated that an error had been made by Consulting Engi- neers Diversified in the specifications for the Greenhead Acres 3rd Addition pro- ject for the tree and stump removal. The City Administrator explained that the specifications called for clearing and grubbing trees per tree, with an estimate of 30 trees clearing and grubbing and 30 trees grubbing. Mr. Jeff Roos, of Con- sulting Engineers Diversified, indicated that the specifications were written on a per tree basis as an honest attemp to reduce the cost on the project. Mr. Roos .indicated that Mr. Lloyd Anderson had informed Consulting Engineers Dive~sified that many trees had already been cut in thep~oject and, as they reviewed the site for trees and stump removal, it was impossible to judge the actual street limits:. Therefore, it was Consulting Engineers decision to put a large enough quantity in the specifications to assure a legitimate'"1.mit price.. Mr. Roos indicated that the discussions with Mr. Lloyd Anderson had been held regarding the overrun cost for the tree and stump removal and Consulting Engineers Diversified has agree to credit $5,700 of their fee to the City of Elk River. Mr. Roos indicated that in their con- versations with Mr. Lloyd Anderson, Mr. Anderson indicated that he did not want the controversy to become a legal matter and that Consulting Engineers Diversified made their offer of a reduction in fees in good faith. Mr. Roos further indicated that Mr. Anderson, at this point, is not satisfied with the offer and has indicated that he will meet with his attorney regarding the controversy of the cost overrun. Mr. Roos indicated that Consulting Engineers Diversified would try to release the City from any legal action should legal action be required. Mr. Lloyd Anderson indicated that he felt Consulting Engineers Diversified made a mistake in requesting that the project be bid on a per tree basis rather than a per acre basis, and further indicated that he felt it was inconceivable that Consulting Engineers Diversified should estimate that there would only be sixty trees to be removed in the project. Mr. Lloyd Anderson indicated that he felt there is a $42,000 cost estimate mistake, and further indicated that he does not feel he, the developer, should pay for this mistake. Mayor Hinkle questioned how many acres were in the project if the tree removal was bid on a per acre basis. Mr. Lloyd Anderson indicated that he felt he had six acres and Consulting Engineers Diversified be- lieved there were 12 acres, and further indicated that he believed the trees and stumps removed should have been done at a fee of approximately $800 per acre to $1,500 per acre;~ Mr. Lloyd Anderson indicated that his attorney indicated that the City could not be released from any legal action should legal action be required to solve the controversy. General discussion was carried on between the City Council, Mr. Jeff Roos of Consulting Engineers Diversified, and Mr. Lloyd Anderson, the developer of Greenhead Acres 3rd Addition, regarding the wording of the contract on the trees and stump removal of a cost per tree versus a cost per acre basis. The City Administrator indicated that the second pay estimate, in the amount of $56,107.74, did include the change order for the tree removal overrun costs. General discussion was carried on regarding the number of trees actually removed in the project. Mr. Terry Mauer indicated that the pay estimate does include the actual amount of trees removed and grubbed. Councilman Toth indicated that he