HomeMy WebLinkAboutPay Sunk Cost - Costs Incurred Prior to Recission Awarded Contract for Ignition Park – Rieth-Riley Construction Co., Inc.
ELIZABETH A. MARADIK GARY A. GILOT JORDAN V. GATHERS JOSEPH R. MOLNAR MURRAY L. MILLER
1316 COUNTY-CITY BUILDING
227 W. JEFFERSON BOULEVARD
SOUTH BEND, INDIANA 46601-1830
PHONE 574/ 235-9251
FAX 574/ 235-9171
CITY OF SOUTH BEND JAMES MUELLER, MAYOR
BOARD OF PUBLIC WORKS
June 8, 2021
Mr. Ruben Alvarado
Rieth-Riley Construction Co., Inc.
25200 State Road 23
South Bend, IN 46614
ralvarado@rieth-riley.com
RE: Pay Sunk Cost
Dear Mr. Alvarado:
At its June 8, 2021 meeting, the Board of Public Works approved the above referenced
reimbursement for sunk costs related to the EV Charging Lot - Project No. 120-044R, in an
amount not to exceed $1,000.
If you have any further questions regarding this matter, please call this office at (574) 235-9251.
Sincerely,
/s/ Anne Fuchs
Anne Fuchs, Clerk
Enclosures
AF/lh
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 The contract to be rescinded had been awarded to Rieth-Riley Construction Co.,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
25200 State Road 23 A Service charge of 1-1/2% per month (18% annual
South Bend, IN 46614 rate) will be made on all account balances not paid,
(574) 288-8321 * FAX (574) 233-3464 according to the terms stated.
WWW.RIETHRILEY.COM
TO:City of South Bend Engineering Dept CUSTOMER NUMBER 4033
227 W Jefferson Blvd INVOICE NUMBER 361076601
South Bend, IN 46601 INVOICE DATE 5/26/2021
CUSTOMER PO NUMBER 120-044R
JOB NUMBER 3610766
TERMS OF INVOICE NET ON RECEIPT
QUANTITY DESCRIPTION UNIT PRICE TOTAL
1.00 Non-Refundable Deposit for Shelters $1,000.00 $1,000.00
Sunk Cost on Cancelled Ignition Park Project
SUBTOTAL $1,000.00
Questions concerning this invoice? Contact: TAX $0.00
FREIGHT $0.00
$1,000.00
MAKE ALL CHECKS PAYABLE TO:Rieth-Riley Construction Co., Inc.PAY THIS
25200 State Road 23, South Bend, IN 46614 AMOUNT
INVOICE
Matt Hostetler
BOARD OF PUBLIC WORKS
AGENDA ITEM REVIEW REQUEST FORM
Date: May 28, 2021
Name: Finnian Cavanaugh Department of Public Works – Engineering Division
BPW Date: June 8, 2021
Phone Extension: 5961 or
fcavanau@southbendin.gov
Required Prior to Submittal to Board BPW Attorney X Attorney Name Clara McDaniels
Dept. Attorney Attorney Name
Purchasing
Check the Appropriate Item Type – Required for All Submissions
Professional Services Agreement Contract Proposal
Open Market Contract Amendment/Addendum Special Purchase, QPA
Bid Opening Bid Award Req. to Advertise Title Sheet
Quote Opening Quote Award Reject Bids/Quotes
Proposal Opening C/O & PCA No. PCA
Chg. Order, No. Traffic Control Resolution
Other: Pay Sunk Cost Ease./Encroach
Required Information
Company or Vendor Name Rieth-Riley Construction Co.
New Vendor Yes If Yes, Approved by Purchasing
No
MBE/WBE Contractor MBE
WBE Completed E-Verify Form Attached Yes
No
Project Name Ignition Park EV Charging Lot
Project Number 120-044R
Funding Source TIF River West
Account No. PR-00009652 (324-10-102-121-443001--PROJ00000208)
Amount $1,000.00
Terms of Contract NTE
Purpose/Description Recommending payment for costs incurred by Rieth-Riley
Construction Co. prior to recission of awarded contract.
For Change Orders Only
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Current Percent of Change:
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