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February 12, 1999 <br />Billy F. WaSSO~ <br />Counhouse Square Manager <br />Marion County Annex <br />3150 Lancaste~ D~. NE <br />Salem, OR 97305-1398 <br />~ ~ <br />Courthouse Square Urban Renewal Agency Participation <br />Dear Mr. Wasson, <br />CI~Y <br />OF ~SALEM, <br />OREGON <br />Gry Han i 555 liberty S~. S.E <br />Zip Code 97gOt <br />CITY MANAGER'S OFFICE <br />Tele'Phone (503) 588-6255 <br />The construction bid appendix sheets for the elements o( Agency pa~licipation in the <br />Cou~ihouse Square project were received Friday, February 5, 1999. We have reviewed and <br />compared the six bids and associated line item detail. While Pence/Kelly Construction, Inc. is <br />the apparent low bidder for the total Courthouse Square project they are also the high bidder for <br />the elements of Agency pa~ticipation. Anticipating this condition could arise, our agreement. <br />which remains to be signed and returned for my counter sig~ature, provides the following: <br />Prior to const~uction contract bid award for the items oi Agency pa~ticipation, the <br />low bid recommended for award by the County and Transit District shall be <br />submitted to the Agency. The Agency will designate in writing within five (5) <br />days of submission, acceptance, rejection or designation of bid alternate for <br />which the Agency will provide participation. Agency approval for pa~ticipation will <br />not be un~easonably withheld, however, ~easons for withholding of such approval <br />shall include but not be limited to bid i~regularity or unreasonable unit cost. <br />Agency acknowledges that the low bidder for the entire P~oject construction may <br />not necessarily represent the lowest bid tendered for each of the specific areas <br />of Agency pa~ticipation designated in Section 1, however, in the event the <br />Agency finds unit cost to be un~easonable, Agency may designate an acceptable <br />level of participation for the respective item. <br />After adjusting tor the Agency maximum pa~ticipation in weather protection of $160 per lineal <br />(oot, the base bid for all elements of Agency participation tendered by Pence/Kelly is <br />$1,314,979. By comparison, the other five bids ~ange from a low of $821,910 to a high of <br />$1.003.695. <br />As you will recall in a meeting held with our staff on February 3.1998, this very condition was <br />discussed. It was concluded, to determine an "acceptable level of participation" for the Agency. <br />a comparison would be made to an amount of 120% of the median price oi alf bids. The <br />attached schedules enumerate all bids, the median, and a value representing 120% of inedian. <br />~ <br />swin, a.oon <br />ya-•..[+C. C.~. <br />I ' ' f <br />•~u.. ~~ i <br />-- AN EQUAL OPPORTUNITY EMP <br />ATTACHMENT 4 <br />