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0425. 97 09:2E UST CLERNUP FUND � 912094640138 140.45o 991 A 40 Pp81-YN Fax Note _ 7671 oam "�g�es�3 Ca:'0..pr. pC�oy� PlaiMa � - _ i� a rcW FS�wn tin p 4 April 24, 1997 rex _© Fqx 0 k �. State Water Resources -- _— ContrdBwrd Mr, George Teranishi George's Service Divistoa or 1600 West Durham Ferry Road Ctean Water Tracy, CA 95376 Programs Meiling Adder. P.O.Bax 944212 Dear Mr. Teranlshi: secm woe CA 94244.2120 2014TStP4 PRE-APPROVAL OF CORRECTIVE ACTION COSTS,Claim No. 8475, suiu 130 1.600 West Durham Ferry Road,Tracy, CA 91MOM40.CA 95914 (916)2274519 I received a letter from Geological Technics, Inc. (GT), dated April 11, 1997,requesting FAx016)227.4530 clarification of my February 27, 1997 pre-approval letter to you. I will assume, for the Wald Wyk W br sake of a timelyresponse, that this letter was written with your consent. Consultants and ��J � contractors are not claimants to the Fund, and may not request pre-approval of costs. In the futuro, as I indicated in my February 27, 1997 letter, you will need to request pre- approval of corrective action costs. I will follow CrT's format from their April 11, 1997 letter in my response. 1. E1Qiect preparation: As you can see there is a small difference between the amount pre- approved and the amount orignally estimated by G'f. GT cannot gaurantee the eventual cast of the work, and I do not expect the eventual cost of the work to be exactly the amormt I pre-approved. The actual costs may be lower or higher than the amount pre- approved;based on my experience I would predict that the eventual cost of the work will be somewhat.higher. I think it is human nature to be optimistic before beginning any project, and UST investigations have their share of unforeseen contingencies. All of the work stipulated under project preparation should be done;I think the amount I pre-approved is a reasonable amount for that scope of work. You should not interpret that to mean, though, that the amount I pre-approved is the maximum amount eligible for that task. I never pre-approve what I believe to be too liberal a budget because these projects are overbudget more often than they are underbudget. It is better to start with a reatistic, or slightly low budget, and go overbudget than it is to start with too high a budget and go overbudget. 2. Riak -vahtaWm: The one task where there was a significant difference between the original cost estimate and my pre-approval letter was the"risk evaluation." J pre- approved $5,000 of the$10,445 requested for pre-approval. I reviewed again the Work ZIM January 29, 1996, the W k flan ddendum, January 20, 1997 and the tasks cited in 12ecyc1ed.Poper Jur mfision is to yiasernv and enhance tAa g.nllry ofcakfarma's water re.rou. ,,,acrd 7rG��.�YY o-naure OoeJr ptaper alfocakon and et/lclent uae for the benefff OfD�+ent and fu[uw ganeralicuu.