2011-08-29_REVISION - C1982056 - Laserfiche WebLink

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submitted to the Division for review. The total of these costs is what becomes the contract amount or the project amount. The Division then adds on additional indirect costs, based on this contract amount, for engineering work and administrative expenses. These are costs that are above the cost of performing the on the ground reclamation and are necessary to ensure the reclamation is properly completed. The line item "engineering work and/or contract/bid preparation" is a cost associated with changes to the reclamation plan (based on unknown items such as not completing a mine plan or on the ground conditions are not what was initially permitted), surveying to determine actual volumes, etc. that are required prior to putting a reclamation project out to bid. This line item also includes staff time to prepare the bid document(s) for the reclamation project. The percentage rate for the engineering line item was derived from Means (Section 01 11 31.30 0010) and represents a fixed value of 4.25% of the contract. This value is an average of the listed minimum and maximum values for engineering work. The Division calculates this percentage based on the contract amount (direct reclamation costs plus the fixed contractor costs listed above). The Division follows the Means method for applying this item, as the guide states that this amount should be based on the cost of the entire contract. During the conference call a process called design/build was mentioned, where one company is given a project to design and then build, all in- house. While this is a good process for some work, such as building an office building, it is not a process that would be feasible for a large reclamation project. These projects are complex and often broken down into smaller reclamation projects to be completed over several years, where each part of the project is bid out separately. The line item "reclamation management and/or administration" is a cost associated with the required inspections and oversight during the work on a project as well as the required monthly inspections following a projects completion (until the Division's termination of jurisdiction, which is a minimum of 10 years after project completion). The percentage rate for the administration line item was derived from Means (Section 01 11 31.20 0010) and represents a fixed value of either 3.25% or 6.0 %, depending on the size of the contract, and is applied to the contract amount (direct reclamation costs plus the fixed contractor costs listed above). These values are the respective averages of the minimum and maximum administrative expense values listed in Means. As with the engineering line item above, the Division follows the Means method for applying this item, as the guide states that this amount should be based on the cost of the entire project. The statutory requirement for adding the engineering and administrative line items is found in the Colorado Surface Coal Mining Reclamation Act, Section 34- 33- 113(1) and Rule 3.02.2(2), promulgated there under, which states: "In order to assure sufficiency, the amount shall be based on, but not be limited to: (a) The estimated costs submitted by the applicant in accordance with 2.05.4. (b) The additional estimated costs to the Board which may arise from applicable public contracting requirements or the need to bring personnel and equipment to the permit area after its abandonment by the permittee to complete the reclamation plan. (c) All additional estimated costs necessary, expedient, and incident to the satisfactory completion of the requirements identified in 3.02. (d) Such other cost information as may be required by or available to the Division." Pursuant to Rule 3.02.2(2), the Division has determined that engineering and administrative fees are a necessary cost to ensure the proper reclamation of a site.