01-30-1980 Council Minutes - Laserfiche WebLink

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� - • ' Page 16 Malkerson stated he should have thought that through prior to his accepting this contract and telling the city that it would have an extension during which time it could still let the con- tract to the contractor. - Benson stated that the city is very concerned about the lack of communications from the contractor to the city, the city smells a rat, the city wants letters confirming what the contractor has been saying. He said otherwise next June and July, he knows that the contractor is going to fight over every little bill and addi- tional expense the contractor can insert because of the city ' s rightful claim to liquidated damages . � Malkerson then reviewed the letter from the bonding company con- cerning the bonding company ' s agreement to cover the liquidated damages and stated that the letter was inadequate and that the city would draft a letter for the bonding company and the con- tractor to sign. Johnson and McCalpine agreed to it. There then followed a general discussion concerning the proposed construction schedule for 1980 . Malkerson noted that if the city is able to release any monies , it is not doing so because it feels it has a legal duty to do so. The city' s position is clear: There has been a major breach of the contract by the contractor; liquid- ated damages are now due and will continue to be due to the city in the future; the city is willing to consider releasing the funds as long as the city receives the necessary assurances in writing that such a release will not in any way jeopardize the financial stabil- ity of the project, the completion of the project, the coverage of the contract by the bonding company, and that such a release will in no way endanger the city' s right to liquidated damages. McCalpine stated that he would agree in writing to state that the city' s project will be its first priority project in the spring of 1980. That it will work on no other projects except ours until it is completed. It will take ten to 15 construction days or approximately three weeks of time to complete the project. That the seeding will be pursuant to the contract specifications. Malkerson stated there may be additional expenses incurred because of the fact that the right of entry agreements have specific deadline dates which may not now be able to be met including but not limited to the White property, the Sweizel property, the Johnson property. Malkerson will check on that and inform the contractor of problems related th�reto. McCalpine stated that they will be using all of their men with the grading subcontractor to do the gradi.ng work iinmediately in the spring. McCalpine noted that last spring was a bad season with late starts. He anticipated three to four days of total paving -4-