HomeMy WebLinkAboutDistrict Pipeline Dispute FEB-03-2009(TUE) 10: 51 Law Office of Justin Tierney
P. 001 roo5
Law Office of Justin N. Tierney
2000 u Street
Sacramento, California 95818
Telephone: (916) 01-3426 Facsi►nile: (916) 451-0371
E-Mail: M-erneV&dOM
f ax
to: Directors
Truckee Donner PUD
fax #: (530) 587-1189
from: JUSTIN TIERNEY
date: February 3, 2009
subject: District Pipeline Replacement 2008
pages : 5 (including this one)
NOTES: Please see attached.
Thank you.
FEB-03-2009(TUE) 10: 51 Law Office of Justin Tierney
P. 002l005
Law Office of Justin N. Tierney
2000 U Street
Sacramento, California 95818
Telephone: (916) 451-3426 Facsimile: (916) 451-0371
E-Mail: ATierney0pol.com
February 3, 2009
Via facsimile, Nand Delivery and
us Mail
Directors
Truckee Donner Public Utility District
P.O. Box 309
Truckee, CA 96160
Re: District Pipeline Replacement - 2008 Project for Contracts A. B and C.
Dear Directors,.
This law firm represents Advanced Asphalt in a potential dispute with the Pacific
Rim Construction, general contractor arising from performance of Contracts A, B and C
of the 2008 Water Pipeline Replacement Project.
During construction, Pacific Rim Construction, the PUD staff and the town of
Truckee modified the initial plans and specifications requesting that Advanced Asphalt
alter the trenches and, ultimately, where the asphalt that was applied. As a result of
these modifications, Advanced Asphalt believes it is owed over$250,000.00 (plus more
than $100,000.00 in retentions) but cannot confirm these amounts without the
District staff's measurements, details of change order amounts, and discussions with
the staff and Pacific Rim.
Jerry Krug with Advanced Asphalt requested a meeting with the district staff and
Pacific Rim but has been specifically told that Advanced Asphalt may not participate in
ongoing negotiations between the District staff and Pacific Rim over these change
orders and Advanced Asphalt's unpaid invoices.
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FEB-03-2009(TUE) M 51 Law Office of Justin Tierney
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Instead, Pacific Rim, a Washington State Company, has sent representatives
(who were only at the jobsite a handful of days) to meet with the District staff and both
may have been negotiating without a full understanding of these modifications or costs.
Meanwhile, a request by Advanced Asphalt to Pacific Rim to discuss specific
measurements, change order details and field modifications has also gone
unanswered. (Please see attached January 26, 2009 letter.)
Advanced Asphalt has made every effort to communicate with both the District
staff and Pacific Rim in an attempt to discuss these concerns. But, since December,
2008, Advanced Asphalts requests for additional information, to participate in
discussions and provide input have been met with a "stone wall. (Due to the lack of
communication, Advanced Asphalt has been forced to file "stop notices"while Pacific
Rim holds a check for Contract B. This appears to indicate Advanced Asphalt, a local
contractor, is to have no say and is not allowed to provide any input in these
discussions.)
Advanced Asphalt respectfully requests that the Directors postpone a final
decision on these Contracts, until the staff, Pacific Rim and Advanced Asphalt can
most. Mr. Krug will be present se the
so feel free to contact Mr.MrCKrug or myself ag to rt anyer
questions you may have. Please
time. Thank you for your consideration of these concerns.
Sin y,
Jus ' N. Tierney, Jr.
JNT:rc
Enclosure
cc: Mr. Jerry Krug
Michael Holley — General Manager
Truckee Donner PUD
Ed Taylor - Water Utility Manager
Truckee Donner PUD
Joel Holland — Pacific Rim Construction
(all via facsimile)
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FEB-03-2009(TUE) 10: 51 Law Office of Justin Tierney
P. ooaroo5
Law office of Justin N. Tierney
2000 U Street
Sacramento, California 95818
Telephone: (916) 451-3426 Facsimile: (916) 451.0371
E-Mail: JNTlerney0801.com
January 26, 2009
via facsimile and US Mall
Mr. Joel Holland
Project Manager
Pacific Rim Construction
P.Q. Box 2670
Renton, WA 98056
Re: Distri Pipeline Replacement 2008
Dear Mr. Holland:
This law firm represents Advanced Asphalt in a dispute arising from Contracts A,
B and C. The Initial plans and specifications prepared by the Truckee Donner Public
Utility District (PUD) were changed in the field by PUD and Pacific Rim Construction.
Advanced Asphalt requests payment of $ 102,362.58 (plus the cost of additional
mobilizations)for Contract B.
Plans and specifications contain an implied warranty of accuracy. Advanced
Asphalt is not responsible for defective plans and specifications that were not used In
the field or for modification in the field. As set forth in your December 31, 2008 letter,
agreements were entered into between the PUD and the town in an effort to repair the
streets to the satisfaction of the town. These field modifications were contrary to the
details provided to Advanced Asphalt when It bid on this job. (The PUD and Pacific
Rim appear to take the position that it doesn't matter where the asphalt is placed so
FEB-03-2009(TUE) 10: 51 Law Office of Justin Tierney
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long as the quantity matches the initial square footage. Not only does this contradict
the practice In the industry, it does not make any sense. By extension of this logic, the
PUD can simply ignore the plans and specifications and place trenches wherever it
wants to within the district regardless of the contract documents.)
As represented by Ed Taylor to Jerry Krug today, Mr. Krug has been expressly
told that he is not permitted,to a#end tomorrow's meeting between the District and
Pacific Rim regarding Contracts''A and C. ( I assume the meeting is closed to the
public.) I urge you both to reconsider your position and allow Mr. Krug to attend to
explain Advanced Asphalt's position.
Please have your attorney contact me at his or her convenience to discuss
dispute resolution proceedings including potential mediation and arbitration. Also,
please provide a copy of the agreement between the District and Pacific Rim.
Please contact me, or Mr. Krug, if you have any questions or would like to
discuss Contract B and the other two contracts. Thank you for your immediate
attention to this matter
Sincere ,
Jus 1 iemey, Jr.
JNT:rc
cc: Jerry Krug - (via facsimile and US Mall)
Ed Taylor—Water Utility Manager
Truckee Donner PUD — (via facsimile and US Mail)
FEB-OA-2009(WEO) 09: 06 Law Office of Justin Tierney
P. 001 l003
Law Office of Justin N. Tierney
2000 U Street
Sacramento, California 95818
Telephone: (916) 451-3426 Facsimile: (916) 451-0371
E Mall: JNTierne1@A01.c0m
f ax
to: Directors
Truckee Donner PUD
fax #: (530) 587-1189
from: JUSTIN TIERNEY
date: February 4, 2009
subject : I District Pipeline Replacement 2008
pages: 3 (including this one)
NOTES : Please see attached.
Thank you.
FEB-04-E009(WE0) 09: 06 Law Office of Justin Tierney
P. 0021003
Law office of Justin N. Tierney
2000 U Street
Sacramento, California 95818
Telephone: (916) 451-3426 Facsimile: (916) 451.0371
E-Mall: JNTI_ e_rn_e_y,CWaol.com
February 4, 2009
Via facsimile and US Mail
Directors
Truckee Donner Public Utility District
P.O. Box 309
Truckee, CA 96160
Re: District Pipeline Replacement - 2008 Proiect for Contracts A, B and C.
February 4, 2009 Board Meeting
Dear Members of the Board:
After forwarding my February 3, 2009 letter to you discussing Advanced Asphalt
and Contracts A, B and C, Advanced Asphalt and I have had the opportunity to review
the staff recommendations contained in agenda items No. 7a and 7b which are set to
be discussed later today at the Board meeting.
As a result of this review, Advanced Asphalt withdraws its request that the
Directors postpone a decision on these contracts. (While Jerry Krug, Vice President
with Advanced Asphalt, will be present at the meeting, he will be there only to answer
questions that the staff or you may have concerning Advanced Asphalt's work on the
project.) Although Advanced is withdrawing its objections to the Board's possible
approval, the staff documents do not contain sufficient details for a complete analysis.
Questions remain and Advanced still seeks additional information from the staff and,
more specifically, Pacific Rim, concerning its intentions regarding payments to
Advanced.
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FEB-0.d-2009(WED) 09: 07 Law Office of Justin Tierney
P. 0031003
Second, after discussing this matter with the District's counsel, Steven Gross, I
apologize for not making clear in yesterday's letter that any meetings between
Advanced Asphalt and the PUD staff would also include Pacific Rim Construction's
personnel. (Alternatively, any such meeting between the District and Advanced
Asphalt would be with the express permission and consent of Pacific Rim,)
Third, by copy of this letter to Pacific Rim, Advanced Asphalt withdraws Its
request for formal alternative dispute resolution including mediation or arbitration.
Further, although Advanced Asphalt has counsel, I have no objection to
communications directly between Pacific Rim personnel and Advanced Asphalt to
discuss Advanced Asphalt's work, its bills, the change orders, unpaid invoices and to
hopefully agree on payment on all these contracts.
Finally, towards that end, Advanced Asphalt reiterates its request to Pacific Rim
for payment of the invoices previously submitted to Pacific Rim under.Contracts A, B
and C. Jerry Krug would be more than willing to meet, discuss and provide additional
information, if requested, that supports Advanced's invoices and request for payment.
Thank you each for your time considering these difficult issues. Please contact
me if you have any questions.
Sincere ,
usti . Tierney, Jr.
JNT,rc
cc: Mr. Jerry Krug
Michael Holley — General Manager
Truckee Donner PUD
Ed Taylor -Water Utility Manager
Truckee Donner PUD
Joel Holland — Pacific Rim Construction
Steve Gross, Esq.
(All via facsimile)
2
FEB-O.d-2009(WED) 13; 1d Law Office of Justin Tierney P. 0011003
Law Office of Justin N. Tierney
2000 U Street
Sacramento, California 95818
Telephone: (916) 451-3426 Facsimile, (916) 451-0371
E Mail: JNT1erne)@XQ__l.com
f ax
to: Directors
Truckee Donner PUD
fax #: 1(530) 587-1189
from: JUSTIN TIERNEY
date: February 4, 2009
subject: District Pipeline Replacement 2008
pages: 3 (including this one)
NOTES: Please see attached.
Thank you.
FEB-O,d-2009(WED) 13: 1d Law Office of Justin Tierney P. 0021003
Law Office of Justin N. Tierney
2000 U Street
Sacramento, California 95818
Telephone: (916) 451-3426 Facsimile: (916) 451-0371
E Mail: JNTlerney@aol.com
February 4, 2009
Via facsimile and US Malt
Directors
Truckee Donner Public Utility District
P.O. Box 309
Truckee, CA 96160
Re: District Pipeline Replacement - 2008 Project for Contracts A, B and C.
February 4, 2009 Board Meeting
Dear Members of the Board:
After forwarding. my February 3, 2009 letter to you discussing Advanced Asphalt
and,Contracts A, B and C, Advanced Asphalt and I have had the opportunity to review
the staff recommendations contained in agenda items No. 7a and 7b which are set to
be discussed later today at the Board meeting. (Please disregard a letter faxed earlier
today. We are still trying to understand the district staff's analysis.)
As a result of this review, Advanced Asphalt continues to request a meeting and
further discussions between-the District staff, Pacific Rim and Advanced Asphalt. Jerry
Krug, Vice President with Advanced Asphalt, will be present at the meeting to answer
questions that the staff or you may have concerning Advanced Asphalt's work on the
project. The staff documents do not contain sufficient details for a complete analysis.
Questions remain and Advanced still seeks additional information from the staff and,
more specifically, Pacific Rim, concerning its intentions regarding payments to
Advanced.
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FEB-Qd-2009(WED) 13; 1d Law Office of Justin Tierney P. 003I003
For example, Advanced Asphalt's onsite work may have saved the District a
considerable amount of money, approximately $40,000.00, But, the staff also appears
to have improperly allocated the actual asphalt installed (contrary to the plans and
specifications) and in their analysis arbitrarily changed the location and the square
footage of the actual asphalt installed.
Second, after discussing this matter with the District's counsel, Steven Gross, I
apologize for not making clear in yesterday's letter that any meetings between.
Advanced Asphalt and the PUD staff would also include Pacific Rim Construction's
personnel. (Alternatively, any such meeting between the District and Advanced
Asphalt would be with the express permission and consent of Pacific Rim,)
Third, by copy of this letter to Pacific Rim, Advanced Asphalt withdraws its
request for formal alternative dispute resolution including mediation or arbitration.
Further, although Advanced Asphalt has counsel, I have no objection to
communications directly between Pacific Rim personnel and Advanced Asphalt to
discuss Advanced Asphalt's work, its bills, the change orders, unpaid invoices and to
hopefully agree on payment on all these contracts.
Finally, towards that end, Advanced Asphalt reiterates its request to Pacific Rim
for payment of the invoices previously submitted to Pacific Rim under Contracts A, B
and C. Jerry Krug would be more than willing to meet, discuss and provide additional
information, if requested, that supports Advanced's invoices and request for payment.
Thank you each for your time considering these difficult issues. Please contact
me if you have any questions.
Sincerely,
Justin N. Tierney, Jr.,) ,Qc--
JNT:rc
cc: Ed Taylor— Water Utility Manager Michael Holley— General Manager
Truckee Donner PUD Truckee Donner PUD
Jerry Krug Joel Holland — Pacific Rim
Advanced Asphalt Construction
Steve Gross, Esq.
(All via facsimile)
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