5.4. SR 08-22-1994
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.
.
Honorable Mayor and City Council
August 18, 1994
Page Two
If you have any questions regarding this, I will be in attendance at your August 22, 1994
meeting.
Sincerely,
MSA, CONSULTING ENGINEERS
~J#~
Terry J. Maurer, P.E.
TJM:tw
Attachment
211-1805.aug
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,riS CONTG INC. TEL: 612-427-3806
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RU;L11.94 7:39 No.001 P.02
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P.O. eo. 277. 14230 6...11 St.. flornscy. MN 553l)3..O277 0\0121427-<)109
8 Aug 1994
Mr. Terry Maurer
MSA Consulting Engrs.
Ref: City of Elk River
County Road 12/13 ~Storm Drainage Improvement
.
Attn: Terry Maurer l Elk River CltYIICouncil
.
Thank you for awarding me the storm drainage project
6 June 1994.
1 understand you still have county right away drainage
easement to obtatn.
As a result the project has been put'on hold. Although
all other easement and property owners are In line and ready.
I remain available for a late fall Or early spring start.
I~ve supplied you with all the contract documents and
performance bonds. The bond is money out of pocket and can
not be recovered until the 1st pay estimate.
It would be fair if'you wou(d consider paying this cost
in advance of my flr~t pay estimate. This would keep me and
your project on tract and good news for the project concern.
Thank-You.
b (l~ 12-
David P.Perkins Pres.
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01_11 T7lh Street, Su"e 148
linJ!lll'llInesota S5435
12) ll35-4848 . Fax 836-2822 '.10800-331.2048
lve Perkins Contracting. Inc.
5775 JUDiper Ridge Drive
noka, MN 55303
DATE:6-15-94
ACCOUNT: DAVEPKR50 12
INVOICE
INVOICE
h"ASf Df:1A(H AND InuRN TOP lIve WITH ,,,vMiftl,T
$4,890.00
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City of Elk
5th Serect.
Thank
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Payment/Performance Bond
ivel' Bond
SAR 13 & CSAH 12 Street & Sturm
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