The Village continues to work through legal matters relating to tendering and construction of the LSSDS.
You will recall that the Village contracted with AECOM (2015 to 2018) as our engineer to complete the Environmental Assessment, the design and to supervise the building of the new wastewater system. Part of AECOM’s responsibilities to the Village was to calculate the amount of sand required for the project. At the outset, the AECOM engineer calculated that 77,000 tonnes of sand was required, however this amount of sand ended up being incorrect and the Village was required to purchase a significant amount more to finish the project.
The RFP bidding process employed an “all in”, one price for the complete project. It required, in part, that the contractor receive, move and place the sand that would be purchased and supplied by the Village to build up the LSSDS. Selectra was one of 4 contractors who submitted bids and was eventually awarded the contract to build the LSSDS. Selectra and its subcontractor maintain that they should be entitled to rely on AECOM’s weight calculation of 77,000 tonnes and charge more than their fixed, all in price.
As was previously reported, the final amount of sand needed for the project was 134,900 tonnes. Despite two years of working through the outstanding legal issues, we find that we are still in complicated corporate lawsuits. Selectra has a lawsuit against the Village and AECOM, the Village has a lawsuit against AECOM, while other players involved are suing each other.
We have hoped for constructive resolution discussions to bring the lawsuits to an end, however at this point we are preparing to go to trial in June. Our lawyers and Staff have been spending many hours preparing our case and feel confident that the Village is the victim in this matter and will be successful.
I will keep you advised if there is a settlement prior to June or how things progress at trial, however our legal council has advised us not to make additional comments at this time.