CCP 03-28-1994 - Laserfiche WebLink

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Oak Grove Trust Members . March 22. 1994 Page 5 this survey was incorrect. that the cap was larger than the survey indicated. and that therefore pursuant to the terms of the contract Ames deserved additional compensation. The Trust advised Ames that its survey had been submitted to EPA as part of the construction completion package. which EPA subsequently relied on in issuing the certificate of completion. and therefore if Ames incorrectly surveyed the Site it would be liable for any action EP A may take against the Trust for submitting inaccurate documentation. The Trust nevertheless indicated that if the actual area of the cap was larger. the Trust would pay Ames based upon the actual work completed pursuant to the terms of the contract Ames' surveyor subsequently submitted an updated survey which did indicate that the cap was larger than the original survey indicated. The Trust engineer. CDM. contirmed that the revised survey was accurate. Thereafter. the Trust notified EPA that the original "as constructed survey" was inaccurate. and submitted revised drawings. Not unexpectedly. EPA was very upset about this. but indicated that there would be no recommendation from suff to seek penalties (thank goodness we have a good working relationship with EPA). There still exists the slim possibility that if an outsider reviews the file. such as the EP A inspector general, some action may be taken against the Trust - ... After receiving the assurance from EPA staff that it would not seek penalties. the .~" .. . Trust prepared the document enclosed as Exhibit J for execution by Ames. Exhibit J has the affect of finalizing the amount due pursuant to the contract for the size of the cap. - Thereafter. the Trust took its final position on the other outstanding issues and prepared the document attached as Exhibit K for execution by Ames. Exhibit K has the affect of resolving the fmal amount due to Ames. except for the approximately $120.000 claim by Ames for costs related to the storm damage. The fmal amount due to Ames is therefore $2.864,863.91. plus any amount the Trust may agree to pay for storm damage. The Trust has already paid Ames approximately $2.5 million of this amount The total construction cost will therefore be within the amount budgeted. including a contingency. of $3.0 million. The Trust's original construction budget was $4.2 million. By competitively bidding the project during the early winter when contractors are anxious to line up work for the summer. the Trust was able to receive a very favorable bid of approximately $2.6 million. The Trust then spent much of this "savings" by entering into the Consent Decree and originally agreeing to pay $1 million of EPA's past costs. The $250.000 in construction costs beyond the bid relates almost exclusively to the lime sludge issue. which we were fortunate to be able to resolve in a cost effective manner. Overall. the construction project went very well. and COM. your Trustees. and Ames deserve credit for bringing this project in on time and within our budget . 3501220400593/22194 -------------- ----- ~- ------~ - - ------------