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HomeMy WebLinkAbout080EA Engineering, Science, and Technology, lnc. 2200 Sixth Avenue, Suite 707 Seattle, WA 98121 Telephone: (206) 452-5350 Fax: (206) 443-7646 www.eaest.com 26 November 2Q14 M Garth Mann sent via e-mail Statesman Group of Companies U.S. Head Office 9300 E. Raintree Drive, Suite 100 Scottsdale, AZ 852690 Corporate Head Office 7370 Sierra Morena Blvd,. SW Calgary, Alberta, Canada T3H-4H9 Subject: Pleasant Harbor SEIS EA Project Number 1501601 Request for Equitable Adjustment Dear Mr. Mann This letter follows up on our letter sent to you dated May 13,2014 regarding the schedule delays and additional scope that have resulted in additional costs to complete the Pleasant Harbor Supplemental EIS (SEIS). The scope of work and schedule for the SEIS has substantially expanded since our contract with Jefferson County was signed and approved in February 2013. For example, the following items were added to the scope of work: . Washington State Fish and Wildlife (WDFW) road within the site boundary. Alteration of the Maritime Village areao Additional reports to be summarized in the SEISo Water Plano Sewer Plano Energy Memoo Economic Reports (August 2013 and April 2014) Also, the secondary peer review of the final technical reports (reviewing final reports for compliance with initial peer review comments) was more extensive than originally assumed (initially budgeted for 8 hours of labor). EA was not provided the extensive initial peer review comments until January 2014, and was not aware of the labor that would be required until that time, which was approximately 11 months after we had prepared our cost estimate. The summary memo and the thirteen sets of matrices detailing compliance with each peer review comment was a significant task, requiring more labor than anticipated. Lastly, the SEIS schedule included as Appendix A to the February 2013 Contract indicated Draft SEIS issuance in Mgg2013, with Final SEIS issuance in September 2013. Due to the delays resulting from the additional scope of work items and the additional technical reports (Water/Sewer and Economic reports not finalized until October 2014), the Draft SEIS was issued in November 2014, approximately 18 months beyond the date indicated in the February 2013 Contract. This extended schedule resulted in additional labor beyond that originally assumed in the February 2013 Contract, including participation in approximately 50 additional weekly conference calls with Jefferson County and the Applicant representative, and coordination with the Applicant's technical team members. You may be aware of the terms of the contract that we have with Jefferson County. Specifically, Section X states that "neither pafiy shall be responsible for damages arising directly or indirectly from any delays from causes beyond their reasonable control. ln addition, if the delays resulting from any such causes increase the cost or time required by the CONSULTANT to perform ifs servrces in an orderly and efficient manner( CONSULTANT shall be entitled to an equitable adjustment in schedule andlor compensafion" (emphasis added). ln addition, Section X of the February 2013 Contract indicates that "if, during the term of this Agreement, circumstances or conditions that were not originally contemplated by or known to, or should have reasonably been contemplated or known to the CONSULTANT are revealed, to the extent that they affect the scope of services, compensation, schedule, allocation of risk or other material terms of this agreement, CONSULTANT may call for renegotiation of affected portions of this Agreement'. Consistent with Section X of the February 2013 Contract, and due to the additional scope items and the extension in schedule detailed above, we are requesting a budget revision not to exceed $19.500 for costs already incurred in completion of the Draft SEIS ($4,500), and anticipated costs to complete the Final SEIS ($15,000)1. While our privity of contract is solely with Jefferson County,, Section V of our contract requires "written approval from the Applicant" for cost overruns that have either occurred or are anticipated to occur. EA is submitting this second request for written approval. According to Jefferson County, signature of this letter will serve as "written approval from the Applicant" .Following written approval, Jefferson County will amend the Contract with EA, and the original contract terms signed by both parties would still apply. Timely execution of this budget amendment will ensure that we can respond quickly to comments received during the Draft SEIS comment period. Since our budget is now depleted, we will await a contract amendment from Jefferson County to proceed. To summarize, the original budget amount was $92,950. With this budget amendment of $19,500, the total contract would equal $112,450. Please do not hesitate to call me if you have questions. Sincerely, EA Engineering, Science, and Technology, lnc. ) Rich Schipanski, Program Manager CC: David Johnson, Jefferson County I Estimate of EA cosfs associated with preparation of the Frnal SE/S. Actual costs could be adjusted (up or down) based on comments received during the Draft SE/S publlc comment period. Contract Amendment Pleasant Harbor SEIS 2 Authorization provided this _ day of Statesman Group of Companies 2014 By Date: Contract Amendment Pleasant Harbor SEIS 3