3.3. SR 12-18-2006 - Laserfiche WebLink

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13065 Orono Parkway Elk River, MN 55330 December 1, 2006 Ms. Lori Johnson City Administrator City of Elk River 13065 Orono Parkway Elk River, MN 55330 RE: PUBLIC WORKS SITE PAVING PROJECT Dear Ms. Johnson: Work has now been completed on the Public Works paving project. As you are aware, Phil Hals and Mark Thompson have coordinated this project, but the Engineering Department was involved in the competitive bidding of the work. The original contractor for the project was Universal Enterprises of Mid-MN. They ceased operations in early 2006. The bonding company became involved in the project and hired Hardrives, Inc. to complete the work. Attached is the final invoice from Hardrives, Inc. in the amount of $61,890.50. Since Hardrives unit prices for completing the work are slightly higher than the contract unit prices submitted by Universal Enterprises, I have communicated with CNA Surety, the bonding company, on the method of finaling the project. They have agreed that we should pay Hardrives in full, utilizing the retainage we are holding from previous work done by Universal Enterprises to make up the difference between the original bid prices and the Hardrives unit prices. Attached is an email from Mr. Douglas Mraz of CNA Surety, concurring with this method of finaling the project. Even after paying Hardrives in full, we will have $2,214.35 of retainage remaining. That sum should be paid toWestem Surety Company with a reference to Claim 9A713427 on the check as noted in Mr. Mraz's email. The original bid was in the amount of $227,480. The final estimate converting all costs to the original contract unit prices is $235,264.17. This represents approximately a 3.5% overrun on the original contract price. This over run is due to substantially more bituminous wear course being placed in areas not originally planned to be paved, offset by a substantial under run in the amount of gravel base used. Phone: 763.635.1000 Fax: 763.635.1090 www.cLelk-river.mn.us