1984-04-11 Special Called Meeting

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~J wICKWIRE, GAVIN & GIB, P.C. Page 2 • Because the scope of the present contract for televising and cleaning sewer lines is beyond the scope of work previously specified, and because ycu have not announced any intention to charge Mr. Lovelace with the cost of televising and cleaning under the contemplated contract, we assume that it is not the intention of the City to do so. Please advise immediately if this assumption i~ mistaken. In any 'case, we would invite your attention to two aspects of the proposed contract that are objectionable as in violation of EPA regulations: 1. Special Provision No. 1 to Section VII, appears to be inconsistent with 40 CFR 35.938-5(b)(1)(i) which provides for negotiation of new unit price when changes and quantities exceed fifteen percent of the original bid quantity and the total dollar change of that bid item is significant. • 2. General Condition 16 "EXTRA WORK", Section VII, page 4/17 provides that extra work will be compensated by one of three methods: (a) agreed unit prices; (b) agreed lump sum; or (c) if neither method (a) nor (b) is agreed upon, the contractor will be paid "actual field cost" plus fifteen percent. 40 CFR 35.938-5(b) provides for compensation for changes by one of three methods, whichever "is most advantageous to the grantee". These are (1) unit prices, (2) negotiated lump sum, or (3) cost reimbursement. The contemplated contract vrould appear to permit the contractor to convert change order work automatically to cost plus fifteen percent by rot agreeing on either unit price or lump sum method. We reserve the right to raise additional matters as may be warranted by the bidding on the proposed contract. Please address any further matters directly to the under- signed. Sincerely, JSP:kcg cc: C. Charles Dippel, Esq. Ronnie Patrick, P.E. Mr. Jesse Lovelace Joseph M. Zorc, Esq. WICKWIRE, GAVIN & GIBBS, P.C. Jo S. Pachter At orneys for Jesse Lovelace Construction Company, Irc. (Fed . Exp . )