5.4. SR 08-22-1994 - Laserfiche WebLink

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US,; CONSULTING ENGlNBEM Civa ENGINEERING fNVi'RONN,ENTAl A1UNIC,lPA[ PlAN,~ING STRUCTURAl .SURVEYING TRAFFIC TRANSPO,HATio.r.;' 1326 Energy Park Drive 51. Paul, MN 55108 612-644-4389 Fax: 612-644-9446 .9800 She lard Parkway Minneapolis, MN 55441 612-546-0432 Fox: 612-544-6398 ITEM 5.4. August 18, 1994 File: 230-211-30 Honorable Mayor and City Council City of Elk River 13065 Orono Parkway P.O. Box 490 Elk River, MN 55330 RE: COUNTY ROAD 12/13 DRAINAGE IMPROVEMENTS Dear Council Members: As directed, we have contacted the low bidder on the County Road 12/13 Drainage Improvement project, Mr. Dave Perkins of Perkins Contracting, Inc., to inquire about his willingness to extend the award period for this project. As you are aware, the City Attorney has started the petition process with the County to allow us to discharge water into County Ditch 10. This is the one remaining issue that needs to be resolved prior to signing the notice to proceed. Attached is a letter we received from Dave Perkins Contracting, Inc., regarding this issue. Essentially, Mr. Perkins indicates his willingness to extend the award date until late fall or even until the spring of 1995. However, he is asking for a change order in the amount of $4,890 to extend the award date. The request is based on the fact that Mr. Perkins has a Performance/Payment Bond in place with the City in the amount of $339,590. Essentially, this eliminates Mr. Perkins' ability to utilize that amount of bonding authority to bid other projects. Mr. Perkins is asking for a change order to compensate him for the cost of obtaining a bond to hold it for a period of approximately three to six additional months. I've discussed this issue with Mr. Perkins and indicated that if the Council agreed to this, no payment would be made on that change order until such time that a contract was executed with him. I also indicated to him that there is a potential, although maybe not very large, that the project would never move forward. In that case, he would receive no compensation. He understood both of these issues and is still willing to hold the prices in exchange for the change order. We do not believe that rebidding this project later this fall or early next spring would provide any lower total project cost. Therefore, we would recommend City Council accept Mr. Perkins' offer and authorize a change order in the amount of $4,890, contingent upon a successful petition from the County to discharge water into Ditch 10 and the execution of a contract with Dave Perkins Contracting, Inc.