HomeMy WebLinkAbout#11 Water COP Water General Fund Transfer Agenda Item # 11
TRUCKEE
Public Utility District
CONSENT
To: Board of Directors
From: Bob Mescher
Date: November 18, 2009
Subject: Consideration of a Transfer of Funds from the 2006 Water COP to
Water General Fund
1. WHY THIS MATTER IS BEFORE THE BOARD
Transfers from restricted funds require Board authorization.
2. HISTORY
Pacific Rim Construction (PRC) was awarded the contracts A, B, and C for the 2008 District
Pipeline Replacement.
All construction for these contracts is complete and Notices of Completion have been filed
with Nevada County.
On May 15, 2009, PRC submitted a claim for additional compensation based upon a "superior
knowledge" allegation. Their claim was rejected by operation of law.
On September 14, 2009, PRC served the District with a cross complaint to an existing lawsuit
between PRC and their subcontractor.
3. NEW INFORMATION
Peter Cuttitta of Porter Simon will be representing the District in the PRC lawsuit. His estimate
of the litigation cost is approximately $200,000.
4. FISCAL IMPACT
The estimated cost of litigation is $200,000.
Litigation related to a capital project is also capitalized with the project.
Since the project was paid through the 2006 COP Fund, it is appropriate to fund the litigation
from the same source. Any unused portion of the estimated litigation cost would remain in the
2006 COP Fund.
5. RECOMMENDATION
Authorize the District to transfer funds up to $200,000 from the 2006 COP fund to the Water
General Fund as invoices are received and paid.
Mary Chap n ichael D. Holley
Administrative Services Manager General Manager