Williams & Neier/Meridian Road ExtensionMarch 5, 1996
Kalispell Orthopedic Pension Plan
Northwest Healthcare Corporation
Weber -Barth Building Partnership
Higgs-Oehrtman Building Partnership
Kalispell Orthopedic Sharing Plan
c/o William Astle
Astle & Astle
705 Main Street
Kalispell, MT 59901
Re: Meridian Road Extension
Dear Bill:
We are in receipt of your letter dated March 1, 1996
discussing your position regarding the extension of Meridian
Road at U.S. Highway #93, and offer the following for your
review.
First of all, although the City prepared the East Meridian
Road Construction Estimate based upon the best information
available, we cannot guarantee that the actual construction
costs will not exceed the Total of $123,225. The City is
obligated under the law to advertise and award construction
contracts to the lowest responsible bidder. We have no
authority to negotiate a price, which on occasion has resulted
in actual construction bids being higher than the estimate.
By a letter dated December 8, 1994, the City and Northwest
Healthcare agreed that Northwest Healthcare would not protest
the creation of an SID for the improvement of Meridian and
Northwest's share of the SID would not exceed $40,000.
According to our calculations, Northwest's share of the SID
will not exceed $40,000 even at the $123,225 figure. We
believe that the property owners along the Meridian extension
will benefit from the placement of a traffic signal at U.S.
#93. Before we enter into an agreement, we would like to
negotiate contributions based upon benefit to the individual
property owners and the general public and assign maximum
costs for installation of the signal and island.
In discussing this matter, we have arrived at a suggestion
Northwest
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that may be worthy of consideration before proceeding further.
You indicated Developers Diversified does not wish to
voluntarily participate in building the Meridian extension.
Further, your letter indicates strongly, you believe the City
is responsible for the placement of the traffic signal and
island at U.S. #93. As indicated above, the City believes
that a private financing of the Meridian extension might be
less costly than an SID. The property owners may save as much
as 20% of the cost by negotiating with contractors. We would
be willing to recommend to the City Council that the City
finance the traffic signal and island, if the property owners
will finance improvements meeting City Standards on the
Meridian extension. Ultimately, the interested parties should
save more than what Developers Diversified contribution would
be in an SID.
We would appreciate your consideration of our alternative
proposal. We intend to work with you in the Meridian
extension.
Sincerely,
Bruce Williams Glen Neier
City Manager City Attorney