C150240 Approval Letter - Laserfiche WebLink

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Based on the late, start the Company negotiated an amendment to the original contract to finish the remaining items in 2008. In January 2009 the Company terminated its relationship with its Consultant due to performance. In addition, the Company has refused payment in the amount of $23,615 to the Consultant for tasks not being completed in a timely manner and billings for services which exceed fair market. The Company and CWCB staff are strongly united on this issue. In March 2009, the Company hired Vista Engineering to complete the project, which was reviewed and approved by SEO. During the months of March through June, Vista Engineering developed a new construction strategy for the project, hired new material testers, and brought a more defined partnering atmosphere to the job. The Contractor commenced construction again during the first week of July 2009 and has been working diligently to complete the project. Discussion The Bull Creek Reservoir No. 4 Project has taken on many different forms over the past five years. There have been changes in project scope, engineering frustrations, board member changes within the Company, and performance and funding concerns by CWCB. It has been a long road to completion. The goal of CWCB and the Company has been to construct a project that meets the long term needs of the Company, with a long term financing package from CWCB that works with the Company's annual revenue stream. The project is currently 95% complete, and though there have been additional cost overruns, which are described in detail below, the completed project will still provide for a long term benefit to the Company. The following is a brief explanation of additional costs that have occurred on the project: Embankment: The original contract to complete the embankment work was based on a unit cost of $3.00 per yard to excavate on-site material and an additional $4.50 per yard to place that material. The original contract was based on the engineer's estimate of 30,000 yard of excavated material and 26,000 yards of compacted embankment. Based on a fresh survey and computer model of the completed dam embankment, the actual quantity required was 37,040 yards for placed embankment material and 42,500 yards of excavated on-site material, resulting in an increase in $87,180 to the project. Spillwav: At the beginning of this construction season, Vista Engineering did an extensive investigation of site conditions in the spillway area, which had not been done previously in the development of the original project design. This investigation revealed a subsurface porous gravel lens at the spillway site. SEO recommended that the gravel material be removed and backfilled with suitable on-site borrow material. The removal of the gravel lens required the excavation of an additional2 yards of material. The Company renegotiated the contract price of $30 per yard to excavate the material to $15 per yard and reduced the structural backfill unit cost from $20 per yard to $10 per yard. This resulted in an added cost to the project of $55,590.