CC - Agendas - City Council - WORKSHOP - 10/28/2008

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Prescott City Council Combined Study Session/ Regular Voting Meeting — October 14, 2008 Page 16 tack on the understood profit/overhead, they cannot manage the project for Tess than that. They would not enter into a guaranteed not to exceed amount on the Iron Springs Road project. As the unit quantities change, the overall cost of the project will change. Councilman Luzius thanked Mr. Hudder for his candor and coming forward. He said that it was not his intent to say anyone was pocketing funds, but a citizen had come to him, who is very knowledgeable on contracts, to say it can happen. He said that some of the members of the Council are getting tired of cost overruns with the economy being the way it is and the City is looked on as having deep pockets. Mr. Hudder said that they are doing the work on Copper Basin and at any given time they will do the project they said they will do at the unit costs involved, but as the project starts changing, the dollars start changing. Councilman Lamerson said that he lives directly on Copper Basin and he appreciates the hard work being done there. It has been a mess for 30 years, and that infrastructure is old and miserable, and they cannot see under the dirt. He appreciated Mr. Hudder coming forward and defending his competitor and the situation, and said it was an honorable thing to do. Mr. Norwood clarified that after the September 30 workshop, he and Mr. Nietupski met and they are going to do a better job on identifying the projects in the future. When they are doing a residential street that does not have utility issues, they do not see these cost overruns. When they get into the older streets such as Park Avenue, Mt. Vernon, they will have these same issues. They will build in contingencies to the contract, but to think there won't be changes is unrealistic. Councilwoman Suttles said that she thinks they are getting to where they need to be. Councilman Luzius told Mr. Nietupski that it was nothing personal; he does a great job. COUNCILMAN LAMERSON MOVED TO APPROVE AMENDMENT THREE TO CONTRACT NO. 07-089, IRON SPRINGS ROAD IMPROVEMENT PROJECT, WITH FANN CONTRACTING, INC., IN THE AMOUNT OF $194,387.84; SECONDED BY COUNCILWOMAN LOPAS; PASSED 4-2 WITH COUNCILWOMAN SUTTLES AND COUNCILMAN LUZIUS CASTING THE DISSENTING VOTES. K. Approval of reimbursement to Granite Dells Estates Properties, Inc., for expenses for construction of the Airport Zone 18" Second Feed and 12" Water Main Project in an amount not to exceed $1,691,846.40. Mr. Nietupski reviewed this project, noting that it was also a unit -cost contract. Staff's recommendation is for a five percent buffer on the