February 19, 2019 Special Meeting

The Lakota City Council held a special meeting on February 19^th, 2019, at the City Hall.  Mayor Russo called the meeting to order at 6:00 p.m. All Council Members were present.

Mayor Russo question who to appoint for the unexpired term,

Member Vasichek questioned who the second highest write-in vote winner in the last election was.  Auditor Vasichek stated Kevin Rysavy received 7 write in votes.  Members D. Mattern and R. Mattern both stated they had contacted Mr. Rysavy about the position, and he stated he was thinking about it.

Member Vasichek made a motion to appoint Kevin Rysavy to the unexpired term council seat, seconded by Member Hess.  All members voting in favor.  Motion carried.

Auditor Vasichek stated employee Herda had a recent incident with the payloader striking Brad Hooey’s camper in his lot.  Auditor Vasichek stated Mr. Hooey received an estimate for the work from Lakota RV and it was between $200-$300.

Member R. Mattern made a motion to approve to pay the expense for the damage to Brad Hooey’s camper estimated at $200-$300, seconded by Member D. Mattern.  On a roll call vote, all members voting in favor, Motion carried.

Member Hess made a motion to cost share the local match for the BND Flex Pace Interest Buydown for the Lakota Hardware Store and Building Materials with Lakota’s portion being $6,228.95, seconded by Member Rainsberry.  On a roll call vote, all members voting in favor.  Motion carried.

Member D. Mattern made a motion to cost share the local match for the BND Flex Pace Interest Buydown for Nelson County Abstract with Lakota’s portion being $3,243.39 seconded by Member Rainsberry.  On a roll call vote, all members voting in favor.  Motion carried.

Engineer Brad Muscha from Moore Engineering entered the meeting at 6:11pm.

Engineer Muscha stated Moore Engineering would recommend allowing the 15 days as requested by Knife River for additional work completed and to remove the disruption cost of $60,000 as suggested by the city council.  Engineer Muscha stated this would bring the total of liquidated damages to $46,500.

Engineer Muscha stated the crack sealing would take roughly 2-3 days and chip sealing would be the same, having the work being one week’s time for labor.  Engineer Muscha stated Moore Engineering recommends countering with $46,500 in LD’s.  Mayor Russo stated Knife River’s initial suggestion for LD’s was $68,000 and he would like to circle back to that number instead.  Engineer Muscha stated the council certainly could counter with that offer, but the $46,500 would be the number Moore Engineering could support by the provided calculation.

Member Vasichek stated he is not happy with the response of Knife River and it was a risk to take negotiating, but still feels it was the right move for the community and the council should continue to negotiate.  Member Vasichek questioned if the next step would be to into mediation, would it be possible to lose the $46,500 and walk away with nothing.  Engineer Muscha stated that the calculation is easily defendable in a negotiation process. Engineer Muscha suggested having Supt. Zeug go back in his records to verify his additional work that was done as put in the calculation.

Member D. Mattern stated the council is $70,000 in price difference with Knife River and would suggest meeting in the middle and countering with $103,000.  Member’s Hess and R. Mattern agreed with Member D. Mattern’s statement.  Member Vasichek stated as long as the city could defend their request with the calculation, he is fine with the counter offer.

Member D. Mattern made a motion to counter offer liquidated damages of $103,000 to Knife River, seconded by member Vasichek.  On a roll call vote, all members voting in favor. 

Engineer Muscha stated he would comprise a letter to have the mayor sign and send it to Knife River. 

Engineer Muscha left the meeting at 6:26pm

Member Vasichek stated if the city loses in the LD’s conversation, he feels the council stood up for the community.

Member Vasichek suggested responding to Knife River immediately after they respond to this letter.   

Member D. Mattern made a motion to adjourn the meeting, seconded by Member Hess.

Meeting adjourned at 6:30 p.m.

            APPROVED BY:                                             SUBMITTED BY:

           

 

Jeff Russo, Mayor                                            Amie Vasichek, Auditor