THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700


S U M M A R Y


DIARY: March 17, 1989 09:30 AM Friday; Rod Welch

Settlement meeting between DNRC and Sletten.

1...Summary/Objective
2...Faxed a copy of the revised CO Log to Sarah with message that car is


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CONTACTS 

SUBJECTS
Sletten settlement
review for meeting

0504 -    ..
0505 - Summary/Objective
0506 -
050601 - Car crashed this morning.  For some reason the starter is not working.
050602 - There was a severe storm last night, but that would not normally cause
050603 - the starter to fail.
050604 -
050605 - Faxed a copy of the revised CO Log to Sarah with message that car is
050606 - not working, ref DCP 1.  I just sent the summary and not the detailed
050607 - stuff.
050608 -
050609 - Prepared settlement spreadsheet, ref DCP 2, showing the offers Sarah
050610 - and I discussed last night.  Faxed a copy to her for presentation.
050611 -
050612 -
0507 -
0508 - 1648 Norm called
0509 -
050901 - He advised the parties settled pending disputes for $7.2M.
050902 -
050903 -
050904 -  ..
0510 -
0511 -
0512 - 1810 Sarah called
0513 -
051301 - She confirmed a tentative settlement for $7.25M upon recommendation of
051302 - Tudor.
051303 -
051304 - This is $1.14M, or about 10 times, more than DNRC owes the Contractor
051305 - based on the record, and $650K more than the estimated most favorable
051306 - result Sletten could expect if successful in litigation, reviewed on
051307 - 890316. ref SDS 4 4066
051308 -
051309 -      [On 890324 SDS support ended as unnecessary, ref SDS 5 6499]
051310 -
051311 - It includes all unit price adjustments and the rock claim. It requires
051312 - Sletten to complete the work needed to produce power by 890415.
051313 - ..
051314 - I asked why DNRC waived its claim of $650K for liquidated
051315 - damages due to late completion, as reviewed on 890316. ref SDS 4 8501
051316 -
051317 - Sarah said Bill Merriman presented an "as-built" CPM showing the
051318 - demolition of the spillway wall was the critical activity.  Sletten
051319 - sought a final contract amount of $7.4M compared to the $6.1M in the
051320 - Engineer's CO and Claim log.
051321 -
051322 - She indicated that on the basis of this presentation, DNRC thought
051323 - there may be sufficient grounds for time extensions beyond the current
051324 - contract completion date, 881014.  Tudor recommended $7.25M would be
051325 - an appropriate settlement based on the CPM presentation, and Sletten
051326 - accepted this.
051327 -
051328 - I asked if consideration was given to reviewing the CPM presentation,
051329 - as recommended on 880921. ref SDS 2 4896
051330 -
051331 - Sarah said they didn't have enough time.  The Director had another
051332 - meeting, and Tudor said the presentation seemed adequate based on
051333 - their experience on other projects.
051334 -
051335 - I asked if Tudor submitted its as-built CPM as planned on 881006?
051336 - ref SDS 3 8144
051337 -
051338 - Sarah said Tudor did not offer any CPM analysis.  They worked from
051339 - Sletten's schedule.
051340 -
051341 - Sarah will draft a proposed settlement position and send me a copy for
051342 - comment.
051343 -
051344 - I suggested DNRC consider incorporating settlement of the Grover
051345 - Mechanical change order #14 matter.
051346 -
051347 -
051348 -
0514 -

SUBJECTS
Project Completion Schedule
Review meeting

0805 - 1648 Norm called
0806 -
080601 - He has asked JoAnn to tell Ken Carlson that the meeting will be at the
080602 - dam, but the other parties were not informed.
080603 -
080604 - I sent a fax to JoAnn to advise that the meeting will be in Helena
080605 - at 10:00 per the notice.
080606 -
080607 - JoAnn came by about 1745 and advised that Ken said Voith cannot
080608 - attend the meeting on Monday in Helena.
080609 -
080610 -
0807 -
0808 - 1810 Sarah called
0809 -
080901 - She feels the meeting will not occur.  There was some discussion by
080902 - Clyde and Jeff, but it was unclear what the result was.
080903 -
080904 - I advised that they did not call, so I will assume there is no
080905 - meeting on Monday.
080906 -
080907 - The additional time will give the contractors more time to evaluate
080908 - continuing progress.  Sletten has to figure out a construction
080909 - procedure for removing the upstream cofferdam.
080910 -
0810 -
0811 -
0812 -