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12-186.00 Geo Engineers: Sprague Ave ReconstructionC'ICITY OF70 0^vs� k Kane 3po ,,;OoValley November 13, 2012 Mr. Matt Blankenship GeoEngineers, Inc. 523 East Second Ave. Spokane, WA 99202 Public Works Department Capital Improvement Program 11707 E Sprague Ave Suite 106 ♦ Spokane Valley WA 99206 509.921.1000 ♦ Fax: 509.921.1008 ♦cityhatt@spokanevalley.org RE: Change Order No. 1- Additional Fees Request for Special Inspection and Testing Services Sprague Ave. Reconstruction Project #0115, Contract #12 -010 Dear Matt, As Project Manager for GeoEnginners I rely on you to communicate to me if the actual accrued costs on this contract might exceed the authorized budget. Each of the first two invoices was approximately $18,000 for 25 days of work. As I saw it there was not a cause for alarm since the authorized budget was $58,383 and the remaining working days was less than 25 days. I anticipated one more invoice to complete the project. Unfortunately I did not hear from you as to a possible overage until the final bill was presented to me on October 11. The project was completed on September 6. There were ample opportunities to report the possibility of GeoEngineers exceeding the budget. I asked for an updated report at one of the morning meetings and even asked Seth to remind you to supply me with an estimate on current and projected fees. Had these reports been given to me during the project I believe between the two of us we could have come to an understanding of how to remedy the situation. We could have either eliminated some tests or lessened the frequency of tests and still built a quality product. One option would have been to free up the MRF, another could have been to amend the Contract. But not knowing until the end of the project took away my ability to work together in finding an amicable solution. The Management Reserve Fund (MRF) is in place in case there are unforeseen costs that arise during the project. For these funds to be available I need to know, during the project, that you are projected to go over the authorized amount. At that point I can make a determination as to how much of the MRF might be needed or if I need to amend the Contract. At this late date I am comfortable with only authorizing the use of the full Management Reserve Fund of $5,838.30 for a total Contract amount of $64,221.30. I am willing to authorize this amount due to the fact that the Contract was extended seven working days due to the Avista gas line matter. I looked at the hours and equipment required for the entire project and considers this fair compensation for the extra work. Sincerely, Pete Fisch Engineering Technician H CIP, Project Manager I2- - IBS(, GEOENGINEER 523 East Second Avenue Spokane, Washington 99202 509 - 363 -3125 December 7, 2012 City of Spokane Valley n 11707 East Sprague Avenue, Suite 106 /�' Spokane Valley, Washington 99206 Attention: Pete Fisch, Engineering Technician II - Capital Projects /Project Manager Subject: Letter Request to Authorize Management Reserve Fund and Final Payment Special Inspection and Testing Sprague Avenue Reconstruction between Sullivan and Evergreen Roads Spokane Valley, Washington File No. 11264- 026-00 GeoEngineers, Inc. respectfully requests the City of Spokane Valley {City) to authorize the release the Management Reserve Fund (MRF) associated with special inspection and testing services we provided for the Sprague Avenue, Sullivan to Evergreen Roads reconstruction project. The contract between the City and GeoEngineers dated April 9, 2012, is in the amount of $58,383 with a MRF of $5 l9$ 3Dr a total contract amount of $64,221.3_0. Based on the foregoing, we further request final ,payment for our services in the total contract amount. We appreciate the opportunity to provide special inspection and testing services to the City on this project. Please call if you have any questions regarding the contents of this letter or the attached final invoice. City of Spokane Valley j December 7, 2012 Page 2 The parties hereto have made, executed and agreed to this Agreement as or the day and year first auove written. tsy signature oelo%v, anent accepts me scope of services and all terms described herein. in addition, Client's signature shall constitute as authorization to proceed on the date listed below Client's printed /typed name unless such authorization has been separately provided verbally or in writing. Cit f Sp ane Valley *AUTHORIZING SIGNATURE TYPED OR PRINTED NAME 1Z/i1 /1Z T DATE *Individual with contracting authority. GeoEngineers, Inc. Matthew 1-6fankenship, LEG Associate Geologist December 7, 2012 DATE Proprietary Notice: The contents of this document are proprietary to GeoEngineers, Inc. and are Intended solely for use by ourciient to evaluate GeoEngineers' capabilities and understanding of project requirements as they relate to performingthe services proposed for a specific project. Copies of this document or Its contents may not be disclosed to any other parties without the written consent of GeoEngineers. Disclaimer. Any electronic form, facsimile or hard copy of the original document (email, text, table, and /or figure), if provided, and any attachments are only a copy of the odginal document. The original document is stored by GeoEngineers, inc. and will serve as the official document of record. Copyright© 2012 by GeoEngineers, Inc. All rights reserved. Please return one signed copy of this letter for our files. Thank you. ML8:tim Disclaimer. Any electronic form, facsimile or hard copy of the original document (email,'text, table, and /or figure), if provided, and any attachments are only a copy of the original document. The original document is stored by GeoEngineers, Inc. and will serve asthe official document of record. Copyright© 2012 by GeoEngineers, Inc. All rights reserved. File Nn. 11264 -02600 GMENGI.NEER .