Sat, Jul 04, 2009

Tucson Region

Marana faces $1.3M sewer-line suit

Firm that finished project blames data for cost overruns
By Josh Brodesky
arizona daily star
Tucson, Arizona | Published: 07.15.2008
The insurance company that had to finish the long-delayed Honea Heights sewer project after the original builder went bankrupt has sued Marana in federal court to recover $1.3 million in cost overruns.
More than 13,000 linear feet of sewer lines were supposed to be laid down by May 2006 for the Honea Heights neighborhood, consisting of 276 homes near West Moore and North Sanders roads. But the sewer was completed only recently after concerns arose that the soil in the area was not of good enough quality to backfill the lines.
Those concerns led to delays and cost overruns as work repeatedly stalled, replacement dirt had to be brought in and the original contractor filed for bankruptcy.
The project originally was handled by Pima County — and the lawsuit erroneously names Pima County — but control of the project was turned over to Marana last winter along with any liability, said Marc Natelsky of the Pima County Attorney's Office's civil division.
Numerous efforts to speak with Marana town attorneys were unsuccessful, although in a phone message, Town Attorney Frank Cassidy said his office is handling the suit.
The suit was filed by Iowa-based United Fire & Casualty Co., which bonded the project and is seeking reimbursement for soil-replacement work it had to pay for after the project's first contractor, Grimm Inc., went broke.
Attorneys with United Fire would not comment.
Essentially, United Fire claims Pima County failed to do a comprehensive soil sample, and, in turn, led Grimm and other bidders to believe the project would cost less than it actually did.
The county's soil report "did not contain enough information to give Grimm and other bidders a reasonable expectation of the actual existing soil's condition," the suit says. "By way of example, only two boring test logs were taken of the 95-acre project site for the entire 13,000 linear feet of sewer main and lateral lines that were to be installed. Two borings is grossly inadequate and far below the 13 to 26 test borings expected for a project of this size."
After Grimm filed for bankruptcy, United Fire hired Highland Engineering in November 2006 to finish the project. Highland, in turn, worked on the project from January through July 2007 before stopping because of spending limits.
The county then found a third contractor to finish the work, but United Fire filed its notice of claim in January.
To keep the construction going, Marana and the county entered into an agreement to transfer complete control of the project to Marana in return for having the town assume the liability issues.
● Contact reporter Josh Brodesky at 807-7789 or jbrodesky@azstarnet.com.