Reimbursment For Moving Expenses10 DATE: September 26, 1984
TO: William P. Craig, City Manager
FROM: Jim Kerrigan
RE: Reimbursement for moving estimates
•
Per the recent Council concern over payment of a bill to Appolo Movers
($50.00 x 2) for two moving estimates, following your request, I looked
into this matter further.
I have talked to four moving companies about their policy as relates to
providing estimates for a governmental institution involved in
relocating individuals from property acquired. American Movers,
Minnetonka, and Barrett United Movers, Eden Prairie both stated they do
not charge for such a service. Two other movers, Appolo (from which we
, received the bill) and Atlas Movers both stated that they do charge for
such a service. They informed me that the reason for such action is
because many times governmental bodies get moving bids because they are
required to be obtained as part of the relocation process, but most
times any move is completed by the individuals being relocated without
professional assistance. Thus the fee reimburses them for the time they
spent providing the estimate.
I also called Dave Fredlund who is involved with the relocation process
for the Minneapolis HRA. He stated that to date they have not been
charged for estimates for residential moves, but have for those related
to commercial businesses.
I also talked with Don Wilson about the rational behind this type of
fee. He sent me a follow -up letter, which I have enclosed. Basically,
he told me that most moving company's estimates are just estimates and
the price quoted can vary considerably at the time of the actual move
(he said this is usually an increased cost). He stated that he requires
a firm to provide a "not -to- exceed" figure. This provides a more
reliable number from which to prepare and approve relocation costs.
However this requires a fairly competent moving firm. Mr. Wilson said
that these type of firms, which he has dealt with in the past, usually
have a fee for estimating when they do not receive the moving job.
. L
WILSON MANAGEMENT SERVICES
Research, Development, Management
September 19, 1984
Mr. James Kerrigan
Community Development Director
Hopkins HRA
1010 First Street South
Hopkins, MN 55343
Re: Moving Estimate Cost
ear Mr. Kerrigan:
I am writing in response to your telephone inquiry, regarding the payment for the
cost of moving bids. Payment for moving bids has become common practice because
there are two factors that make the situation unique or different from a typical
moving situation.
Many times movers are requested to bid jobs where no move may result. The HRA may
just be using the numbers to budget some future project. In many instances the
homeowner decides on a self move to increase the amount of money he receives out
of the total settlement. When the public calls for estimates, the mover at least
has the assurance that someone will conduct the move.
The preparation of bids for us requires more time, since we are asking for a "not
to exceed" figure. When movers give a typical estimate, it is just that. The
actual price could be more or could be less. When they must set a not to exceed
number and yet are competing with other companys additional time is required.
In light of the above, many moving companies require a fee for moving bids in
the event they do not get the job. The fee is usually minimal and reasonable
when considered in the context of the total cost of relocation.
The agent from North American made it clear that there would be a charge for
the estimate, if they didn't get the job.
ill If you ave any furth rf questions, please call.
aniel H. Wilson
Relocation Consultant
DHW /lh
Box 204, Waconia, MN. 55387 • Office 448 -4630 448 -5577 • Home 442 -2760
r
WILSON MANAGEMENT SERVICES
Research, Development,
Management
August 29, 1984
Ms. James Kerrigan
Community Development Director
Hopkins HRA
1010 First Street South
Hopkins, MN 55343
Re: Hazuka and Milbert Move Estimates
Dear Mr. Kerrigan:
Enclosed are invoices #001553 and #001554 from Apollo Moving Specialist.
They were the unsuccessful bidders on the two moves.
It is a condition of most moving companies to charge for their estimate
when unsuccessful. This is the only way we can get them to provide
estimates. Please see that these are paid in a timely fashion.
Sincer¢ly,
JJ
Daniel H. Wilson
Relocation Consultant
DW /lh
Enclosure
Box 204, Waconia, MN. 55387 • Office 448 -4630 448 -5577 • Home 442 -2760