Salem, City of- Intergovernmental Agreement

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February 12, 1999 Billy F. Wasson Counhouse Square Manager Marion Cou~ty Annex 3150 Lancaste~ Or. NE Salem, OR 97305-1398 Courthouse Square Urban Re~ewal Agency Participation Dear Mr. Wasson, CI~Y OF~SALEM, OREGON Gry Han i 555 l.ibeny S~. S.E I~p Code 973p1 c~rir ~-r,ncEFrs oFFicE Telephone (503) 568~255 The construction bid appendix sheets for the elements of Agency participation in the Cou~thouse Square project were ~eceived Friday, February 5. 1999. We have reviewed and compared the six bids and associated line item detail. While Pence/Kelly Const~uction, Inc. is lhe apparent low bidder for the total Courthouse Square project they are also the high bidder for the elements o( Agency pa~ticipation. Anlicipating this condition could arise, our agreement. which ~emains to be signed and returned for my counler signature, provides the following: P~ior to construction contract bid award for the items of Agency participation, lhe low bid recommended for award by the County and Transit Oistrict shall be submilted to the Agency. The Agency will designate in writing within five (5) days of submission, acceptance, rejection or designation of bid alternate for which the Agency will provide participation. Agency approval for pa~ticipation will not be un~easonably withheld, howeve~, reasons ior withholding of such approval shall include but not be limited to bid irregularity or unreasonable unit cost. Agency acknowledges that the low bidde~ for the entire P~oject construction may not necessarily ~epresent the lowest bid tendered for each of the specific areas of Agency panicipation designated in Section 1, however, in the event the Agency finds unit cost to be unreasonable, Agency may designate an acceptable level of participation for the respective item. Aiter adjusting for the Agency maximum participati~n in weather protection of $160 per lineal (oot, the base bid for all elements of Agency pa~ticipation tendered by Pence/Kelly is $1.314,979. By comparison, the other five bids range from a low of $821,g10 to a high of $1.003,695. As you will recall in a meeting held with our staff on February 3,1998, this very condition was discussed. It was concluded, to determine an "acceptable level of participation" (or the Agency, a comparison woutd be made to an amount of 120% of the median price of all bids. The attached schedules enumerate all bids, the median, and a value representing 120% of inedian. ~ s«..- a.oe.~ .u-..Rrc. a.. ' ' ' ' ~NI• ~~~! -- AN EQUAL OPPOqTUNITY EMP ATTACHMENT 4