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ARDEN HILLS CITY COUNCIL—August 10, 2009 7 Councilmember Holden asked for clarification on why the City was settling and if it was because the warranty on the driveway had been voided. City Attorney Filla stated that if it costs the city $1,200 to do the work and turning it over to the League of Cities would cost the City more. The idea was to have the residents assume the risk of having their contractor do the work and the City was no longer involved. Councilmember Holden clarified that the next time the city does a PMP project and there is a similar situation then what does the City do. She asked if this would be setting a precedent for the future. She stated that if the settlement was for voiding the resident's warranty then that would be understandable in this situation. City Attorney Filla stated that the City was not setting a precedent because the unusual circumstances in this situation were that the residents had just finished putting in a new driveway. Councilmember Holmes asked if this went to the League of Minnesota Cities what would be their cause of action. City Attorney Filla stated that their cause of action would be that the City did damage to the residents driveway by the City repair project. Councilmember Holmes asked if the City did do any damage and if so what specific damage was done. - Mayor Harpstead stated that the summary indicated that the residents had lost their warranty on the new driveway that they had installed. Councilmember Grant clarified that the warranty for the entire driveway was voided because of the work the City had done in their right-of-way. He stated that the warranty was a two year warranty and they were into the second year already. Public Works Director Hoag stated that this was correct. Councilmember Grant stated that if the residents did not collect on the warranty they did not loose anything and the warranty is mute. He stated that the Council should have been provided with pictures of the driveway in order to better understand the situation. Councilmember Holmes asked if using asphalt would be cheaper than the special blacktop.