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http://www.omniture.com --> Sections Home Page Local News AP News Archives Business Classifieds Event Calendar Forums Life Opinion Obituaries Photo Gallery Readers Photo Gallery Sports Tempo Weather Special Coverage 2006 Britt Festivals --> Shop Our Valley AutoFinder HomeFinder JobFinder Search Our Valley Special Sections Readers' Choice Homelife Magazine Joy Magazine Neighborhoods Employment Guide Oregon Golf Info Oregon Wine Info Other Publications Local Links Ashland News eSouthernOregon Newspapers In Education Personals Moving Here Movie Listings TV Listings Volunteer Customer Service Advertise With Us Media Kit Place Classified Ad Contact Us FAQ's Home Delivery Site Map --> Email Story to a Friend October 24, 2006 Johnny Cat files claims against city of Gold Hill Company claims contract fraud over bidding By SANNE SPECHT Mail Tribune GOLD HILL — A local construction company has filed claims totaling $700,000 against the city alleging contract fraud during the building of its new water-intake facility on the Rogue River. Johnny Cat Inc. of Jacksonville is suing the city for overages of $687,553 and for damages from winter storms estimated at $29,486, according to court documents. The lawsuit, filed in Jackson County Circuit Court Sept. 22, also seeks indemnity against recent fines levied against Johnny Cat by state regulatory agencies for violating environmental laws. The city contracted with Johnny Cat to build an intake pump station and transmission line for $1,095,000, said Royal Gasso, public works director. "The major portion of the claim is based upon Johnny Cat claims they bid the project incorrectly because engineering design work was incomplete and/or erroneous," Gasso said. "That's the gist of the lawsuit." Gasso said he does not believe the city should be held liable for the contractor's additional claims. Advertisement "From a layperson's perspective, the city is simply the beneficiary of the project," said Gasso. "We did not design it and we had no say in the construction of the project — as long as it was done on budget." John Holmes, owner of Johnny Cat, hung up the phone when contacted by a Mail Tribune reporter for comment. Gasso said the contractor should be addressing his complaints to the project engineer, Lee-Pace Engineering. "The city hired an engineer who has $2 million worth of errors and omissions insurance," said Gasso. "Unfortunately, the lawsuit was not filed alleging an error or omission, it was filed alleging breach of contract. So our insurance did not kick in. We will probably end up suing the engineer because we relied completely upon them for the design and for construction management." Ed Hodges, project manager for Lee-Pace Engineering, did not immediately return calls for comment Monday. In March, Hodges said Johnny Cat had struggled with the in-river portion of the project. And there were some significant issues with how the contractor built and maintained its coffer dams, he said. The city's water-intake project took about a year to build and was plagued with setbacks. On March 24, the Department of Environmental Quality levied a $29,500 fine against Johnny Cat for forcing the temporary closure of the city's drinking water intake and causing pollution to state waters. The violations occurred while Johnny Cat was attempting to create a dry building platform in the river for construction. Gasso is relieved the city was spared DEQ fines. "The city has no means to control the means and methods used to construct the project in accordance with design specifications or permit requirements," Gasso said. Johnny Cat is appealing the environmental fine, according to Les Carlough, senior policy adviser for the DEQ's office of compliance and enforcement. Attorneys for the company have stated in their written response to the notice of violation that Johnny Cat crews were acting under permit, did not violate turbidity regulations and were following directives from the Department of State Lands. DSL shut the intake project down for several days in July 2005 after Johnny Cat crew members punctured temporary construction dams, sending murky water spilling into the Rogue River. In September 2005, the DEQ received further complaints of muddy plumes from anglers and officials from Valley of the Rogue State Park and the city of Grants Pass. Bob Lobdell, natural resources coordinator for the DSL, said in October 2005 that his agency had previously informed Johnny Cat the coffer dams were constructed of illegal, unauthorized material. The agency ordered Johnny Cat to pull 3,000 cubic yards of rock out of the river at the construction site on Sept. 28, 2005. The job was shut down for two and a half months after December 2005 floods while construction crews repaired damage and engineers redesigned parts of the plan so the facility could withstand repeated floods. The project was completed in May. Reach reporter Sanne Specht at 776-4497 or e-mail [email protected] . Would you like to respond to this story? If so Click Here to visit our forums. Advertisement Copyright © 1997-2006 Mail Tribune, Inc. All rights reserved. Privacy Policy | Terms & Conditions | Website Feedback online casinos news Home Security Systems Online Casino Reviews Men's Clothing GMAT Prep Fundraisers UK Homeowner Loans Discount Hotel Reservations Send Flowers Casinos Canada Texas Electric Choice Compare Electric rates in Texas Windermere Van Vleet Trunks, Footlocker Online poker at AbsolutePoker.com