|COUNTER OFFER ADVISED|
BIKE PATH CONTRACT 1-2-13 LMS
The Salmon City Council has decided to send a contract between the city and the Idaho Transportation Department (ITD) to the city’s Finance Team for further research on the terms of agreement.
The contract is for construction of a bike path along Highway 28 to the City Park. Funding for the project would come from the federal government through the ITD.
Several terms of agreement in the present contract have drawn concerns from City Administrator George Ambrose as to hidden costs the city may have to shoulder under the agreement as presently written.
During discussion Councilman Jim Baker and Ambrose concluded the agreement is probably a standard contract for a state highway and is overwritten for a bike path project. Ambrose feels amendments could be added to the contract by the city for the city’s protection such as; in order for the contract to be valid the federal funds would have to be in place.
The city also has to submit certifications of all rights of way, easements, permits, material sources and agreements necessary for construction of the project. If questions on easements or rights of way along the bike path route are found, the city attorney and city planner will have to draft agreements all of which would be an expense of staff time. The state requires it will designate a resident engineer to supervise construction in accordance with specifications as well as state and federal regulations which could result in an added expense to the city. The reason behind all the requirements is the proposed bike path is on state land
So far the city has paid $3000 for engineering the bike path and those plans have been submitted and approved by the state. The city will have to pay another $1000 to enter into the contract. Those expenditures are non-refundable.
The project cost has been estimated at $171,000. Of that the city will be reimbursed up to $133,225 after the work is completed.
Council members were asked to write their questions and submit them to the Finance Team to be addressed in a counter offer, terms-of-agreement contract that will be drafted by Attorney Snook and City Administrator Ambrose.
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