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+ LO N E R O C K INC. P.O. Box 54503, Irvine, CA 92619 <br /> Tel: 949-310-0804 <br /> Fax: 949-387-6102 <br /> California Contractor's License#A- 834112 dragan@lonerockinc.com <br /> TO: City of Santa Ana, Public Works Agency M-22 <br /> 20 Civic Center Plaza, Santa Ana, CA 92701 <br /> Project: Warner Ave. Improvements Project No. 14-6802 <br /> Date: December 20, 2023 <br /> Subject: Request for Water Main Material Escalation <br /> Attn: Mr. Sean Thomas <br /> Dear Mr. Sean Thomas, <br /> The City has been aware of unprecedented material price increases since bid time and has instructed us <br /> to order materials needed for the project Once the materials have been procured or ordered, we can <br /> submit the price escalation to the City with the original bid price to be compensated for the difference.We <br /> submitted the unprecedented price increases to the City at the beginning of the year and have since <br /> updated the increases with additional requested back-up. <br /> Attached,please find the original bid quote for waterline materials and the escalated cost for the material. <br /> We attempted to secure the material at the quoted prices once the project started,but the price difference <br /> is still significant.In addition,there was a long delay in receiving the ordered material due to shortages in <br /> the industry which increased prices. <br /> The bid price for waterline materials for the project was$311,850.58.The wetland units are taken out of <br /> the price because we purchased them directly from the manufacturer(Bid item 33 and 34).Our cost from <br /> the supplier from 12/02/2023 is in the amount of$528,637.51.The difference between the bid price and <br /> increased material cost is $216,786.93. Please process this escalation cost increase and remit payment <br /> to Lonerock in the amount with mark-up of$251,798.02 as soon as possible. <br /> The$528,637.51 cost consists of the attached invoices for material received in the amount of$442,508.63 <br /> and material remaining to be delivered in the amount of $86,128.88 per the attached pre-shipment <br /> notifications. <br /> If you have any questions,please do not hesitate to contact me at(949) 310-9280. <br /> Regards, <br /> 4% r <br /> Nikola Marjanovic <br /> Vice President <br /> City Council 11 — 17 5/21/2024 <br />