1998-05-18 Special Called Regular Meeting of City Council

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e e better usage of available space. The buildings are located on a tract of land owned by Subrecipient which land is more fully described on attached exhibit "A". GeneraB Administration The Grantee through the County Engineer shall design the Project subject to the approval of the Subrecipient. The Grantee shall be responsible for the administration of the construction contracts. Grantee will advertise for and receive bids for the construction of the Project. Upon receipt and tabulation of the bids for the Project, Grantee will determine the lowest and best bid for the construction of the Project. In the event the lowest and best bid for the construction of the Project is an amount that would result in the cost of the Project being equal to or less than the sum of $78,909.00, Grantee will notify Subrecipient of the amount of the lowest and best bid for the Project. In the event the lowest and best bid for the construction of the Project is an amount in excess of the sum of$78,909.00, Grantee shall have the following four (4) options: 1. Subject to the approval of the Subrecipient, the Grantee may agree to use those Community Development Block Grant funds designated as contingency in Exhibit B attached hereto, to fund the construction costs to meet the lowest and best bid received by the Grantee; or 2. Grantee shall notify Subrecipient of the bid and undertake to negotiate with the Subrecipient for Subrecipient to agree in writing to pay the additional cost of the Project. ~ the event the Subrecipient agrees in writing to pay the additional costs, then and in that event the Grantee will proceed to let the contract and continue with the construction of the Project. In such event the entire amount. of the additional cost must be transmitted to Grantee, prior to the award of the bid. If the Subrecipient fails to agree in writing to pay said additional costs and Grantee fails to use contingency funds, then in that event, the Grantee may reject all bids and elect not to proceed with the letting of the contract and terminate the Project without any further obligations to Subrecipient; or 3. Grantee may notify Subrecipient of the bid and undertake to negotiate with the Subrecipient for Subrecipient to agree in writing to reduce or delete specific items in the bid proposal so that bids will be within the amount of available construction funds. 'In the event Subrecipient agrees in writing to reduce or delete items in the bid proposal, the Grantee will re-bid the project and proceed as if it wer~ the original bid; or. . .4. Grantee may reject all bids and elect not to proceed with the letting of the contract and terminate the Project without any further obligations to Subrecipient. 2