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October 15, 2012 - City of Laredo

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September 20,201 2<br />

DANNENBAUM ENGINEERING COMPANY - LAREDO, LLC<br />

Mr. Tomas Rodriguez<br />

Utilities Manager<br />

<strong>City</strong> <strong>of</strong> <strong>Laredo</strong> <strong>of</strong> Utilities Department<br />

P.O. Box 2950<br />

<strong>Laredo</strong>, Texas 78044<br />

LAREDO OFFICE:<br />

8610 MCPHERSON, SUITE 130, LAREDO, TEXAS 78040 (956)712-9817<br />

Re: El Pico Water Treatment Plant - Cify <strong>of</strong> <strong>Laredo</strong><br />

Subj: Additional Services for Construction Management /Inspection Contract<br />

"Supplemental No. 1 to the Main Contract dated June L2011- Revised<br />

As Per September 19,<strong>2012</strong> Phone Conversation"<br />

Dear Mr. Rodriguez,<br />

Enclosed please find two partially executed originals <strong>of</strong> the Supplemental No. 1 (Revised 09/20/<strong>2012</strong>) to the Main<br />

Contract dated June 1, 201 1 for additional construction management and inspection services, for the North <strong>Laredo</strong><br />

(El Pico) Water Treatment Plant. Also, attachment A-I; B, D and E <strong>of</strong> the main contract dated June 1, 201 I are<br />

being modified and replaced in their entirety to account for changes in this Supplemental No. 1. Also, page 2 <strong>of</strong> 9 <strong>of</strong><br />

the main contract dated June 1, 2011 is being replaced in its entirety to account for modifications to Section IV<br />

"Period <strong>of</strong> Performance."<br />

The additional services are due to the extension <strong>of</strong> this contract from 26 months to 30 months to match the El Pico<br />

Construction Contract and the increase in complexity and number <strong>of</strong> working locations by the El Pico Water Plant<br />

contractor. Supplemental No. 1 to the Main Contract requests that the maximum payable lump sum fee <strong>of</strong><br />

$ 2,165,379.84 be modified to $2,704,327.30, an increase <strong>of</strong> $538,947.46. The total projected construction cost <strong>of</strong><br />

the El Pico Water Plant at bid was $89 million and after construction Change Order No. 1 was approximately $85<br />

million. After adding Supplemental No. 1; the revised fee <strong>of</strong> $ 2,704,327.30 represents 3.18% <strong>of</strong> the construction<br />

cost which is well within the acceptable percentage for CMI work on such a large complicated project.<br />

Please review the attached Supplemental No. 1 to the Main Contract and if satisfactory; Dannenbaum respectfully<br />

requests that you to execute the attached Supplemental No. 1 to the Main Contract - Revised 091<strong>2012</strong>012 and return<br />

one original to my <strong>of</strong>fice for our records.<br />

We appreciate the opportunity to provide services to the <strong>City</strong> <strong>of</strong> <strong>Laredo</strong> and look forward to a continued mutual and<br />

beneficial relationship. If you have any questions or need clarification <strong>of</strong> the contents herein, please do not hesitate<br />

to call me at (956) 682-3677.<br />

Sincerely,<br />

President ,//'<br />

-9'<br />

cc: Charles Celauro, P.E.<br />

Richard D. Seitz, P.E.<br />

M:\<strong>15</strong>40\4636-01 <strong>Laredo</strong> WTP - CMI &Cathodic Prot Svs\Ol Proj Admin\01.03 Contracts\03.3 Supplementals\Modified by Supplemental No. 1 (Revised<br />

09<strong>2012</strong>)\0920<strong>2012</strong>\00~Corr- Uones to TRodriguez (09-20-12)(GR).doc

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