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CONTRACT DISPUTE SETTLED WITH RED LINE STATION BUILDER

 CONTRACT DISPUTE SETTLED WITH RED LINE STATION BUILDER
 LOS ANGELES, Jan. 31 /PRNewswire/ -- RTD and Guy F. Atkinson Co., a


contractor based in South San Francisco, reached agreement over costs resulting from construction of the Civic Center Metro Red Line subway station at 5th and Hill streets in downtown Los Angeles.
 Following a lengthy mediation by retired California Supreme Court Justice David Eagleson, the Los Angeles County transportation Commission (LACTC) and the RTD board of directors agreed to pay Guy F. Atkinson $19.8 million for additional work performed as a result of unforeseen conditions at the site, plus interest in settlement of claims totaling $41 million.
 The unforeseen conditions included the discovery of toxic materials, abandoned fuel tanks and underground vaults that had to be removed before station construction could continued.
 Atkinson's original bid on the contract and change orders amounted to $43.8 million. Atkinson subsequently filed a claim for an additional $41 million to cover the cost of added work.
 The LACTC-RTD total settlement of $25.7 million for the additional work claim was composed of the previously noted $19.8 million in principal and $5.8 million for interest.
 "It is important to note that the principal payment was less than the established reserve of $20.6 million and effected a savings of $21.2 million from the original claim," said RTD Board Member Carl W. Raggio, chairman of the board's legal committee.
 He also said the interest paid was offset by $4.02 million the LACTC earned on the final settlement amount while the claim was pending. This resulted in a total net cost of $21.5 million for the settlement.
 "Under the circumstances, we are pleased with the results of the negotiations," said Raggio. "This could have cost the taxpayers far more than it did. It is a good deal for the public, and a fair settlement to the contractor.
 "For example, no one could have foreseen that the contractor building the Civic Center station would run into so many underground obstacles," Raggio added. "The obstacles were uncharted on any of the maps they used, and some of the obstacles were left buried beneath the surface for more than 100 years."
 Raggio applauded the work of RTD negotiators who worked on the Red Line subway project before its was turned over to the LACTC in July 1990, as part of an agreement between the two agencies.
 "The overall cost of the portion of the subway project that was under RTD's control is still within the original estimates, and was budgeted by LACTC as part of its current role as the lead agency for the completion of the first phase of the Metro Red Line subway project," said Raggio.
 "I attribute this to the foresight of those who allowed for a 10 percent contingency in their original Red Line budget estimates, and to the cooperation of LACTC staff, which was kept apprised of every step in the settlement talks with Atkinson."
 Raggio, a retired Jet Propulsion Laboratory engineer who helped oversee negotiations with the contractor, thanked Eagleson for mediating the settlement.
 "We are grateful to Justice Eagelson, an expert in the law regarding these matters, who met with the RTD board," Raggio said. "His role in the resolution of the dispute promoted a settlement that we believe was fair and equitable."
 -0- 1/31/92
 /CONTACT: Greg Davy or Jim Smart of RTD, 213-972-4400/ CO: Southern California Rapid Transit District ST: California IN: SU:


AL-EH -- LA019 -- 5811 01/31/92 17:13 EST
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Date:Jan 31, 1992
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