1986-01-02_GENERAL DOCUMENTS - C1981017

• Permit No: C1981017
• IBM Index Class Name: GENERAL DOCUMENTS
• Doc Date: 1/2/1986
• Doc Name: Direct Testimony of Robert J. Delaney
• Media Type: D
• Archive: No

26. Section 3.3 of Pitkin's Exhibit A details workers' compensation, state and federal
unemployment costs for employees engaged in work for Resources, and the proportion of total
costs which is charged to Resources based on hours worked for Resources.
27. Section 3.6 of Pitkins' Exhibit A documents insurance charges to Resources based
on the costs for benefits to employees engaged in work for Resources, and apportioned according
to the time spent working for Resources.
28. During the construction season of 1993, Pitkin leased equipment to Resources for
use in reclamation work. This equipment was provided to Resources under an agreement
entered in June 1993. Section 3.5 of Pitkin's Exhibit A indicates the equipment provided and
charges to Resources for rental and insurance.
29. Twelve pieces of equipment were retained for Resources' benefit and placed at
Resources' disposal to be used as needed. In addition} two pick-up trucks were rented to
Resources for transportation of the crew. A flat rate of$3,000 per month was charged for the
equipment, and $700 per month for two pick-up trucks.
30. After December 1993, when the construction season ended, Resources was not
charged for rental of Pitkin's equipment, due to a reduced usage during the winter months. The
charge for pick-up rental was reduced to half, or $350 per month, due to the reduced level of
use. Charges to Resources for vehicle insurance were adjusted to reflect the decreased charges.
31. Liability and hazard insurance on the Pitkin-owned equipment and vehicles was
apportioned and adjusted for purposes of the billings to Resources. The 14 units rented to
Resources from September through December 1993 represented 32.6% of the total number of
units on which Pitkin paid insurance. For those months, Resources was thus billed 32.6% of
Pitkin's $3,099.00 monthly insurance cost.
32. Pitkin was in the process of selling equipment and vehicles, although items which
had been designated for use by Resources were retained. By January 1994, Pitkin had sold 28
of 43 vehicles or pieces of equipment, although the insurance premium continued at the same
level. Insurance for the equipment which had been retained for Resources use was not charged
to Resources after December, with the exception of the two pickup trucks.
33. The rental for the pickups had been reduced to half, reflecting decreased usage,
but both pickups were used by Resources. For that reason, insurance costs were charged. As
the two pickups represented 13% of the total number of units being insured, Resources was
billed 13% of Pitkin's monthly insurance cost.
34. Charges for reimbursement to Pitkin by Resources are for purchases made for
Resources' benefit and applied to Pitkin's vendor account. These include purchase of fuel, parts
and operating supplies for Pitkin's equipment during the time it was used by Resources, and also
for equipment owned and sued by Resources.
4