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Ili tii"` N.%J?Vla• <br />Mr. John Johnson <br />November 2, 1983 <br />Page 2 <br />engincering costs and the additional costs to the city which have <br />already been paid should be added together and reduced by the unpaid <br />portion of the contract price. The remaining balance should be <br />submitted to the American Druggist Insurance CcuTony with a demand to <br />pay that figure. 'Mis should be done through our office. <br />When considering the bids on this project I would remind you that the <br />performance bond was purchased in the amount of the original contract <br />which was $11,962.74; in the event that the costs to complete this work <br />exceed that amount of money, the city will have to look to the original <br />contractor for crnpensation. <br />In reviewing the file and in talking with you about this project, I see <br />that the city had retained a consulting engineer from the firm of Short-Elliott-Iienderickson, Inc. when this project initially began. <br />Perhaps for the purpose of keeping a clear and accurate record of the <br />additional engineering costs which would be attibutable to this project, <br />the city should consider continuing the use of a consulting engineer to <br />complete this project. <br />After we have obtained the appropriate dollar figure and node the demand <br />ror payment from American Druggist Insurance we will he in a position to <br />aymrnce a lawsuit based on their failure to pay according to our demand. <br />If you have any questions regarding this recommendation please call me. <br />Yours truly, <br />RUS & KArM <br />1 <br />SWR/sly Sharon W Rushton <br />cv: Richard Meyers <br />• <br />tq� <br />