CC Minutes - 06/23/03 Mtg - Laserfiche WebLink

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Councilor Pap~ raised concern that the project was untimely and over budget. He clarified that the Oregon Department of Transportation had served as the contracting agency and managed the project. Public Works Director Kurt Corey said the engineer was under contract with the City of Eugene. Councilor Pap~, seconded by Councilor Nathanson, moved to amend the motion by pulling the settlement money from the supplemental budget and having a work session on the item after the first of the fiscal year. Dee Ann Hardt, Finance Management Services Director, said there was a liability in FY03 that needed to be recognized. She noted that the obligation could be paid out of another funding source. In response to a question from Councilor Pap~ regarding whether the final change order had the approval of the council, Mr. Corey, as the lead negotiator on the final change order, noted that the item was not something that was typically brought before the council but noted, in anticipation of council questions, he had sent a report out three weeks previously and had not received word of any concerns. In response to a question from Councilor Pap~ regarding how the authority for the change order was handled, Mr. Corey said the change order was processed with the assumption that staff would come to council to get the appropriate spending authority. In response to a question from Councilor Pap~ regarding whether there was any shared liability by the County or Oregon Department of Transportation, Mr. Corey said there were intergovernmental agreements with ©D©T and Lane County which prescribed that the level of funding they were bringing to the table be a fixed amount and anything over that would be the obligation of the City. In response to a question from Mayor Torrey regarding whether the motion was possible, Ms. Hardt said there was an obligation to pay the change order by the end of the fiscal year. She said the liability could not be ignored. In response to a question from Councilor Bettman regarding whether the funding would be taken from the road fund, Ms. Hardt said the money would be taken from the General Capital Projects Fund. Councilor Meisner said he would support the motion. He noted that the City Attorney needed to do a better job of protecting the city in its contracts. In response to a question from Councilor Solomon regarding why the settlement would not come out of the risk fund, Mr. Carlson said project money had to cover the cost of a change order to the project. He noted that the liability did not come from a lawsuit and therefore the Risk Fund could not be used to cover the cost. Councilor Pap~ questioned the reason why it took three years to process a change order. Mr. Corey said the change order was put in virtually at the completion of the work being done, but that it had taken much time to complete the negotiations. Councilor Bettman reiterated Councilor Meisner's comments that the City did not advocate well for itself in contract negotiations. MINUTES Eugene City Council June 23, 2003 Page 11 Regular Meeting