Art Work - Laserfiche WebLink

Home Browse Search

A JOINT PROJECT BY Marion County Board of Commissioners Randall Franke Patti Wiilne Mike Ryan 4/5/99 March 29, 1999 The Honorable Mike Swaim Mayor, City of Salem Salem Civic Center 4.4.f ~; ~ RECFIVED MAR 3 0 ~gg9 555 Liberty St. SE ~AYOR-CITY MANAGERS OffIC: Salem, OR 97301 Re: City of Salem Streetscape funding for the Courthouse Square project Dear Mayor Swaim, Salem Area Mass We are writing to you to seek your assistance in resolving an issue which is of Transit District both fiscal and substantive concern to our respective jurisdictions. ~ Board of Directors Luis Caraballo As you know, we have completed the bidding phase of the Courthouse Square Kenneth "Casey" Campbell ro ect and have awarded the bid for construction to Pence/Kelly Construction p ~ Marcia Kelley Dennis Koho , of Salem. At City staff s request, we included in that bidding a detailed Eric Swenson breakdown of the streetscape cost elements. Nancy Towslee Mark Wieprecht Unfortunately as it turns out, the low overall bidder on the project- Pence/Kelly-was the highest "bidder" on the streetscape portion of the project. ' ~ his has brought about a difficult situation for the County and the Transit District, and the City as well. Through our own purchasing rules, not to mention Federal Transit Administration regulations, we were obligated to award the project to the low bidder, even though the streetscape element of the project was the highest (the Pence/Kelly bid for streetscape was $1,711,751...the lowest streetscape bid in the range was $1,174,530) Faced wit~ this dilemma, City staff made an admi:~:s::ative decis~on t~ incorporate a process of averaging all six bids on the streetscape, and allowed the County and District an allowance of 120°l0 of that average as a basis for payment. In so doing, the partnership is l.~ft $247,000 short of the revenue needed to pay the actual bid cost of Pence/Kelly. We feel that the City's process of averaging bid costs is unreasonable given the nature of the bidding process that was used, and is not consistent with the original intent of the City's agreement to provide for the actual costs of streetscape, up to a maximum of $2 million. While we very much appreciate the cooperation and work effort that City staff has provided us in trying to resolve this issue, we feel that the product that has resulted violates the previous agreements between the City and our jurisdictions, and are asking that you review the City's position. ~PR 0 5 1999 n „1,~~ ~ . ~..: r V \l. D ~:1J ~ ~ ~j ~~ ^„/~~-. ,, ~ ~ y, :( . ~,`.~