PROJECTED COST OVERRUNS

An Independent Cost Estimate (ICE) prepared for R&M Consultants concluded that the project would cost $29 Million. The report predicts the project will cost $3.5 Million more than Turnagain's GMP of $25.6 Million (Guaranteed Maximum Price). Turnagain's GMP does not include any contingency, which would allow a buffer in case of unforeseen expenses.

Although Turnagain has assumed most of the risk for cost overruns as the design-builder, the Borough is the sole responsible party for the cleanup of any contaminants found, which could be very costly.

The Engineering Risk Assessment the Borough is required to submit for its RAISE grant names 'Haines' as the Responsible Party for hazardous materials cleanup.

The Lutak Dock is located between ADEClisted Contaminated Sites. Petroleum, PCBs, Dioxin, and other hazardous substances have been found on the nearby Chilkoot

Lumber Dock and 200 acre US Army Tank Farm properties. Contaminants can migrate via ground or surface water, tidal currents, or wind currents.

R&M'S DESIGN estimated to cost $3.75 Million every 10 years (according to the Borough's BCA, pg. 8)

Low level estimate: $1.36 million every 10 years

High level estimate: $2.12 million every 10 years

The Borough has budgeted a mere $5,000 in dock maintenance costs per year for the past 10 years. Interestingly, the Borough expects maintenance costs to be even less than that in the future, due to new construction. Yet...