Agenda - Council - 09/25/2001 - Laserfiche WebLink

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I I I I I I '1 I I I I I I I I I I I I Paul T. Meyer Page 2 September 2 I, 2001 8. September 21-October 18~. 2000,. Parties discuss City's inability to obtain Project site. 9. October 18, 2000. Infinity Builders proposes a Project start time of March 5, 2001. 10. August 2, 2001.. City advises Infinity Builders that the City now has acquired Project site and inquires if Infinity Builders is prepared to proceed at the original contract price. 11. August 10~ 2001. Infinity Builders responds to City's August 2, 2001 letter indicating some price increase, the amount of which at that time ,,vas yet to be determined. 12. August 13~ 2001. Infinity Builders'giVes final response to City's August 2, 2001 letter by requesting a $41,600.00 increase in the original contract price and requests a Notice to Proceed. 13. August 14, 2001. City Council authorizes new bids for the Project. 14. August 17, 2001. City's Consulting Engineer advises Infinity Builders that it is rebidding the Project. 15. September 6, 2001. City receives letter from Infinity Builders' attorney in which the attorney states a contract exists between the City and Infinity Builders and that the City is either obligated to execute a change order for Infinity Builders' increased costs due to delay, or pay Infinity Builders its lost profit and expenses as a result of not proceeding with the contract. 16. September 19~ 2001. City opens and tabulates bids from new bidders. Lowest bid is approximately $56,000.00 more than Infinity Builders' original bid in July, 2000. 17. September 1% 2001. City receives letter from infinity Builders' attorney stating the contract has been terminated as a result of the City rebidding the Project and requesting that City pay to Infinity Builders its expenses and lost profit. It is apparent that between September 6 and September 19, the dates of your letters to the City on this subject, you have significantly changed your position. In your September 6 letter you want the City to execute a change order and proceed with the contract. In your September 19 letter you only want expenses and lost profits. City staff is recommending acceptance of your September 6 offer to proceed on the contract. This includes the change order requested. There is no legal basis for now retracting the option of proceeding on the contract. The reference in your letter to Article 42.3 which in realty is Section 15.4 of the agreement between the parties is not relevant to the present circumstances. Section 15.4 (42.3) states in part the "... OWNER may, without cause.., elect to terminate the Agreement." In this case the Owner does NOT elect to terminate the agreement. The only change in the circumstances of the parties between September 6 and September 19 is the fact that the City received and opened bids for the Project. This in no way infiSnges upon or "terminates" as you suggest the contract between the City and Infinity Builders. I find no basis -359-