Las Vegas City Commission Minutes, February 17, 1954 to September 21, 1955, lvc000009-122

Mr. Perliter was asked for his recommendation MR. PERLITER - My answer is this— if this suit will delay this pro­ject a considerable length of time, then it is a matter of balance; the first is the proposal for $42,000.00. If you can continue, I would say to fight. In regard to the information I have fur­nished concerning borings, if it is wrong, and there is no proof it's wrong; the very fact of the point that the borings were in and I used those borings to determine my $658,000.00 estimate is proof, I should know how to figure on a unit price basis. If the project is going to be delayed an indefinite number of months, that should be balanced against $42,000.00 that is claimed. One other way to look at it, and that is thie—the cost to the City of $42,000.00 added to the $518,000.00 bid by Dixson totals $560,000.00. That is not in line with the average of all bids received— I still think the City is saving approximately $100,000.00 of what would be a legitimate price for the Sewer. As far as my intent was concerned, I did my best— I visited the project while the borings were going on to see what progress was being made. MR. JARRETT - Do you feel you have any financial obligation to the City for the mistakes you have made? MR. PERLITER - I still do not have any proof on my borings. MAYOR BAKER - In the matter of a lawsuit, would you decide, or is there a meeting ground where you would be willing to negotiate to pay a portion of the $42,000.00? At this point the question on the reliability of Mr. Perliter's choice of Contractor to perform the "borings" was raised. MR. PERLITER - I do know there are two large companies in California that do borings with their own force, and yet there has been cases where a contractor has challenged their borings. As this was explained, I got the in­formation that the Contractor will always attack it if he is in a spot. However, the cost to the tax­payer is less than if we didn't have it. I do have the recommendation of what the man gave me trans­ferred into the borings. Discussion was then held with City Engineer George Wade on the percentage of the project completed to date on Schedules A, B and C of the Sewer Improvement Program. MAYOR BAKER - I believe there should be some consideration made by Perliter for the reasons stated— just for a figure, in the neighborhood of $5,000.00, not to argue, but to get a basis to work on. MR. BUNKER - I would be satisfied, myself. MR. JARRETT - I don't think it's enough. MR. WHIPPLE - To get back to the point, if we should tell Cannon to stop negotiations, and we lose, what would be your reaction? MR. PERLITER - I advise not to negotiate on a basis of what is finished— to take it to Court. MR. WHIPPLE - Do you advise the City to go ahead and fight through the Court: MR. PERLITER - One point's got me worried, since one of the men who made the borings cannot be located— his name is Lawler. I could not foresee that this man was going to disappear. If that man cannot be located, it is, I understand, a vital factor toward the settlement. Speaking for myself, I went to a legitimate operator, George E. Miller— I did not chisel around, and he said he could do it. I had been working with him for two to two and a half years, so I contracted with him to do this work. MAYOR BAKER - This was poor judgment on your part. MR. BUNKER - It is evident that you refuse to answer whether we should fight or settle. MR. PERLITER - I will answer— if I was put up on a stand, my answer would be "yes", and if asked if my allotted 5-13-54