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SS9402C-CS 960507 (2) wg May 7, 1996 MAY - 8 1996 Transmitted via FAX-(214)304-3570 cliv MANAGER Followed by Mail CITY OF COPPELL Mr.Jim Witt City Manager City of Coppell P.O.Box 478 Coppell,TX 75019 RE: Bethel Road Project Dear Mr.Witt: This is to acknowledge receipt of your facsimile letter dated May 7, 1996. Upon receipt,I attempted to contact you but was only able to leave a voice-mail message. This is to advise you that we will not be returning the proposed agreement forwarded to us. To say the least,we were rather surprised by the content of your May 7 letter. I received your May 2, 1996 letter with an alternate agreement only yesterday,May 6, 1996. Continuing with our previous efforts to resolve this matter,we have been working diligently and in good faith with Ken Griffin to resolve the issues and contract for the reconstruction of the sewer. Due to the time restraints placed upon the project,I had asked for a meeting with you to finalize any remaining issues so that the reconstruction could begin. While we can understand if you have other time commitments,we believe that another meeting would be productive and is necessary if the City wishes to expedite completion of the project. I have referred your May 7, 1996 letter to our Legal Department for review. They have confirmed that HDR's contractual liability is limited to correction of any design errors and that HDR is not responsible for corrective construction or repair work. They have also confirmed that the City has an obligation to mitigate any damages. We have provided the City with a construction bid from an alternate construction Contractor which we believe is reasonable and certainly more cost effective than utilizing the original contractor who may share some responsibility with HDR and the City for the costs. HDR has also expressed a willingness to contract directly with the alternate construction Contractor to further expedite the project. Although we have no contractual obligation,HDR has offered to share in the costs of reconstruction. We provided to you an Agreement outlining the terms under which we would agree to participate. The City's proposed alternate agreement is not acceptable. HDR remains willing to resolve the matter under the conditions previously discussed. However,should further action be pursued by the City Attorney,we will have no alternative but to withdraw our offer and rely upon our contractual and other legal obligations. Very truly yours, HDR ENGINEERING,INC. William R.Hindman,P.E. Senior Vice President cc: L.Pachman HDR Engineering, Inc. Suite 125 Telephone Engineering 12700 Hillcrest Road 214 960-4000 Construction Services Dallas, Texas Fax 75230-2096 214 960-4471 OILS �E L C ppellll,Texas 75019 C The City With A Beautiful Future P.O.Box 478 214-462-0022 Coppell,Texas 75019 C � May 7, 1996 VIA FAX 214-960-4471 Mr. Bill Hindman Senior Vice President HDR Engineering 1270 Hillcrest Road, Suite 125 Dallas, Texas 75230-2096 Re: Bethel Road Project Dear Mr. Hindman: I have received your request to meet with you this afternoon regarding the Bethel Road project. I have a commitment which could prevent me from being there, but in all sincerity, I do not believe another meeting would expedite the completion of the aforementioned project. If the agreement forwarded to you on May 2 is not received by 5 p.m., the City will have no option but to proceed with the project with our original contractor, and turn this matter over to our City Attorney for further action. Res fully, ( /L---- - Jim Witt City Manager JW:kb hdrengr.507 cc: Ken Griffin Pete Smith