CC_Minutes_2010_0726 - Laserfiche WebLink

Home

Regular City Council Meeting Monday, July 26, 2010 Page 5 City Attorney Bartholdi advised that it was indeed broader than those limitations under Minnesota Statutes, Chapter 466; and noted that the property owner had been asked to comply with limits set forth in State Statute, but they had refused. Mr. Bartholdi advised that it was the consensus of his office and staff that the in- surance provided by the contractor would make up any difference for the short pe- riod of time between the right-of--entry and the City's acquisition of the property. Councilmember Ihlan expressed her opposition to the City taking on additional liability. Councilmember Pust expressed her opposition to setting a precedent in waiving the City's statutory limits of liability. In response to Mayor Klausing's request for other available options, City Attor- ney Bartholdi advised that a hearing was scheduled yet this month asking the court to order a Quick Take of the property for earlier access to the property. Economic Development Associate Jamie Radel advised that this action had been requested by the City to facilitate the most expedient way to move forward with the construction process, noting that the sooner the contractor could access the parcels, the sooner construction could be initiated and completed. Ms. Radel noted that, during the bidding process, contractors were made aware of the mid- August access to the property and had included that provision in determining the timetable for the construction process; however, she noted that this earlier access would facilitate them better. Discussion included the City retaining the right to bring subrogation actions against any contractors and/or subcontractors if there was any liability action brought against the City as a responsible party, if such a provision was included in the contracts between the City and contractors; clarification that this agreement was being sought by the property owner, not the contractor; and provisions of Minnesota Statute 466 limiting the City's liability to $1.5 million. At the request of City Manager Malinen, Public Works Director Duane Schwartz advised that he didn't recall specifically the limits of insurance required from the contractor in their contracts with the City for this project; however he suspected that if there was any liability claim exceeding $1.5 million, they would be re- quired to indemnify the City. Mr. Schwartz suggested deferring action on this re- quest until the August 9, 2010 Council meeting for confirmation by staff of this provision; and noted that this strip of land was very narrow and the contractor had plenty of work to do outside the confines of this property that would keep them mobilized until additional research was completed.