Pay Sunk Cost - Costs Incurred Prior to Recission Awarded Contract for Ignition Park – Rieth-Riley Construction Co., Inc.

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INTER-OFFICE MEMORANDUM DEPARTMENT OF PUBLIC WORKS DIVISION OF ENGINEERING TO: Anne Fuchs, Clerk Board of Public Works FROM: Finn Cavanaugh, Project Engineer, Division of Engineering SUBJECT: Request to Pay Sunk Cost 120-044R: Ignition Park EV Charging Lot DATE: May 28th, 2021 On May 25th, 2021, the Board of Public Works approved the recission of the awarded contract for the above project. The contract to be rescinded had been awarded to Rieth-Riley Construction Co., on April 27th, 2021, in the amount of $398,617.41. As stated at the May 25th, 2021 Board of Public Works meeting, City Administration has decided not to move forward with the Ignition Park EV Charging Station Project (No. 120-044R) at this time. The City Administration is following discussions in Congress regarding funding for electric vehicle infrastructure closely, to understand how to best leverage City funds to further comprehensive investments in this new type of infrastructure. The project has been put on an indefinite hold. After the award of this contract and prior to notification of this request to rescind the contract, Engineering requested that Rieth-Riley begin preparation to procure materials. This request was given in the interest of ensuring the project could be completed in a timely manner, with the anticipation of long lead times for certain fixtures, primarily the shade structures. As a result of this preparation to procure materials, prior to the project being on hold, Rieth-Riley paid a deposit to the manufacturer of the shade structures to place their order. When the City gave notice to Rieth-Riley that the project was to be put on hold, Rieth-Riley contacted the manufacturer to cancel the order. At this time, the manufacturer had nearly completed engineering design of the shelters. $1,000.00 was held by the manufacturer from Rieth-Riley’s deposit for engineering expenses. The remaining portion of the deposit was reimbursed to Rieth-Riley. Rieth-Riley is requesting payment from the City to cover the $1,000.00 that was not reimbursed by the manufacturer. The Division of Engineering recommends that the sunk cost of $1,000.00 be paid to Rieth-Riley Construction Co. Sufficient funding has been secured in PR-00009652 from TIF River West Development (324-10-102-121-443001--PROJ00000208). Please respond with any questions. Enclosed: Sunk cost invoice of $1,000.00