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1999-04-25_GENERAL DOCUMENTS - C1981017
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1999-04-25_GENERAL DOCUMENTS - C1981017
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Last modified
3/19/2021 12:23:46 PM
Creation date
4/30/2012 9:22:33 AM
Metadata
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Template:
DRMS Permit Index
Permit No
C1981017
IBM Index Class Name
GENERAL DOCUMENTS
Doc Date
4/25/1999
Doc Name
Direct Testimony of Greg Lewicki
Permit Index Doc Type
General Correspondence
Media Type
D
Archive
No
Tags
DRMS Re-OCR
Description:
Signifies Re-OCR Process Performed
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e. The division of labor hours into 3 categories was made to the best of my <br /> judgement from knowledge of the work accomplished. The rates per hour include payroll <br /> taxes, unemployment and medical insurance. By industry standards, the hourly rates of <br /> $17.50 to $19.50 are average when including all other payroll costs. <br /> f. The contractor profit (10% of direct costs), public liability insurance <br /> (1.55%), contractor performance bond (0.975%) have been extracted from the DMG <br /> bond calculations for the Coal Basin Mines. Job superintendent costs were estimated at <br /> 2.7% of direct costs using a number of DMG bond calculations and past experience. <br /> g. The subtotal add-on charge of $5200 for the use of two pickup trucks is <br /> legitimate over the 10-month time period. In view of the extensive and treacherous road <br /> system at the mines, the need to clean up other properties in Carbondale and the need <br /> to follow a rigorous water monitoring plan for all sites, the use of two pickups for 10 <br /> months is quite reasonable, even when considering they were not used heavily in the <br /> winter. Most rental agencies will not lease at reasonable rates for heavy duty work at a <br /> coal mine site such as Coal Basin. For this time period, the average monthly Pitkin Iron <br /> charge per pickup is $255. Normal depreciation charges for pickups in mine use are <br /> generally higher than $500 per month. <br /> h. The subtotal add-on charge of $7000 for mobilization/demobilization is to <br /> cover a one-time charge to move the Pitkin Iron equipment from a contractor yard to the <br /> site and return. This cost would not be used to cover items which were rarely used such <br /> as the Hough loader and the Cat 14E motor grader. This is reasonable when considering <br /> that the mob/demob charges for DMG's winning bids at the Sutey Pile and Mine##3 were <br /> $10,000 each and these jobs required less equipment to move. <br /> C) Comments on Input Parameters <br /> 11. 1 feel it is important to include a number of comments regarding the spreadsheet <br /> costs. <br /> 12. First, it is possible that any other contractor in the Roaring Fork Valley area <br /> would have charged MCR higher rates for the equipment needed at the site since the area was <br /> (and still is) in a construction frenzy and contractors simply did not need the work. <br /> 13. Second, since MCR was in bankruptcy at the time, it would have been extremely <br /> difficult to get a contractor to feel comfortable enough to leave a large complement of equipment <br /> at the site for many months. If it could have been done at all, it would have required special <br /> incentives and higher costs than those listed in the spreadsheet. <br /> 14. Third, since much work was continually driven by emergencies driven by <br /> violation abatements, weather problems, scheduling with other equipment, etc., it was necessary <br /> for MCR to have equipment available on site to accomplish certain tasks although there were <br /> 5 <br />
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