Settlement Questions:
Why did NCTD need to settle with West Coast Rail Constructors (WCRC)?
Both NCTD and WCRC were committed to successful completion and close out of this important project and agreed that executing this agreement was in the interest of taxpayers and fair to the contractor.
What are the major terms of the agreement?
Settlement Agreement II:
- Settles all disputes related to the Sprinter Mainline Project for $7,384,378.00, which is $17,615,622 less than the original claim of $25 million.
- Settles all disputes regarding WCRC's entitlement to Constructive Acceleration Compensation, under the terms of SPRINTER Settlement Agreement I, in the amount of $3.3 million.
- Provides that the closeout of the SPRINTER Project Owner Controlled Insurance Program will proceed in accordance with the Project Contract Documents.
- Preserves NCTD rights against WCRC related to third party actions, warranties and latent construction defects.
- Establishes Total Contract Value for SPRINTER Mainline Project of $238,985,000.00 (inclusive of nearly $29 million of reimbursable work.)
Did WCRC meet its contractual obligation to complete the SPRINTER
Mainline Project on time?
Ultimately, NCTD agreed that WCRC met its contractual obligations regarding the timely completion of the SPRINTER Mainline Project because the SPRINTER began revenue operations on March 9, 2008. However, the Project did incur significant delays during construction that were largely beyond WCRC's control which were resolved under Settlement Agreement II.
Is this agreement good for taxpayers?
Yes. NCTD reviewed WCRC's claims and agreed that some of their claims were valid. Additionally, given the total amount of the WCRC claim as compared to the final settlement amount and the risk of litigation, Settlement Agreement II was good for taxpayers.
Will this agreement further limit NCTD's ability to fund current operations?
No, the SPRINTER was constructed using local, state, and federal one-time capital funds. This agreement has no impact on NCTD's current operating budget deficits that are primarily attributable to the state's decision to eliminate transit funding assistance and the significant decline in sales tax revenues that are used to fund NCTD's operating costs.
With this settlement did the SPRINTER go over its federally
approved budget of $484.2 million?
The project remains under its federally-approved budget of $484.2 million. |
