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MEMORANDUM <br />DATE: December 20, 1993 <br />TO: RIX BOARD OF CONTROL <br />FROM: LEE SLATE <br />SUBJECT: DISTRIBUTION OF THE DEDUCTION IN THE COLICH & SONS BID <br />Bids for the conveyance pipelines (RIX & SARI) were received on <br />October 27, 1993. The Colich & Sons bid indicated a deduction on <br />the total amount of $500,000. This contract benefits all three <br />parties to our Cost -Sharing Agreement. One of the concepts of the <br />cost sharing which the participants have agreed to is <br />proportionate shares of benefits/costs. Rather than making an <br />arbitrary division of the deduction, I requested the bidder to <br />identify the bid items affected by the deduction. This request was <br />made to identify any direct bid item impacts. Tom Colich adjusted <br />the bid items and submitted them to me (copy attached). The <br />adjustment was made to the pipe and the mobilization bid items. <br />An analysis of the adjustments indicated that the proportioning of <br />the deduction could more closely follow the overall bid proportions <br />with only a minor adjustment in whole dollar amounts. This <br />adjustment was tabulated and sent to Colich for comment. There has <br />been verbal concurrence. <br />Please review the bids and the distribution issues as well as the <br />overall cost-sharing issues for the combined project. These issues <br />will need to be addressed by all three parties prior to making <br />submittal to the SRF Program. <br />On behalf of the SARI Project I have made recommendations to the <br />SAWPA Project Agreement 8 Committee and the Commission addressing <br />the apparent low bidders, proceeding towards awards and the cost <br />distribution for the construction and consulting expenses for the <br />combined SARI/RIX Project. These recommendations have been made to <br />avoid delays to the combined project and particularly to the <br />deadlines for the cease and desist orders on the RIX Project. If I <br />have overlooked anything or there is a mutually beneficial desire <br />to recommend an alternative cost sharing, I will take it before the <br />SAWPA Commission. <br />