SS9901-CS040712 lasTec
July 12, 2004
To: Clay Phillips
Re: CISD fiber cut on Village Parkway
Clay,
MasTec admits to cutting the fiber line feeding the elementary school on Village
Parkway. This incident occurred on 7/2/04. We did call in for utility locates and verified
each located facility via hydro excavation. CISD did have a locator mark the fiber line
running from the pole on the south side of Village Parkway due north under the street and
eventually to the school building. We excavated to 10.5 feet deep and exposed 2 fibers
directly under the locate marks. The locates appeared to be accurate and the exposed lines
were assumed to be the fiber to the school. When drilling at 15.5 feet deep, we found
fiber cable wrapped around our reamer. It was then discovered that the riser to the school
had been pulled from the wall. We then excavated to the fibers we had previously located
and they were still intact and unharmed. The actual fiber we hit was 5.5 foot deeper
directly under the exposed fiber. This was, in our opinion, an unavoidable line cut since
we did expose a fiber on the locate marks that were provided.
Shortly after calling CISD to notify them of the cut, I was contacted by Chad Branum of
CISD. I offered to make the necessary repairs to the cut line and Chad appeared to be
open to this. On Monday July 6, Chad informed me that, contracturally Capco would
have to make the repairs. I asked him to get a quote fi.om Capco and to forward to me for
approval to accept charges.
On 7/8/04, I received a quote via fax for the repairs from Capco. I was astonished to see
the repair cost to be at $43,102.10. We estimated the costs to be around $25,000 which
included cost and profit for Capco. I then notified Chad that we felt the charges to be too
high and needed a breakdown from Capco to see if we missed anything. Capco refused to
supply a breakdown giving the reason that he didn't want to share pricing because we are
competitors on certain projects. I still refused to accept charges based on our experience
in fiber construction and the fact that we feel the costs are out of line. I talked to Kyle
Capps to discuss costs. He agreed to send Randy( Capco Superintendent) to the site and
discuss the charges with me. He met with Chad and myself mainly to discuss the 315 feet
of proposed boring whereas only 75 feet is necessary. We then discussed the possibility
of MasTec doing the work for Capco. Randy would check on this possibility with Kyle.
A conference call was held with Clay Phillips, Chad Branum, Kyle Capps, and myself to
discuss charges. After a lengthy argument, that included Kyle stating that he didn't
charge like MasTec, Clay advised Capco and MasTec to meet Monday and reach a
resolution. We were to talk about the possibility of MasTec doing the bore therefore
reducing the overall charges. Kyle and myself agreed to meet at 10 am at my office in
Dallas.
Western Region - Dallas Division
4747 Irving Blvd., Suite 221 * Dallas, Texas 75247 * (214) 571-2500
Building the e-World
asTec
On Monday at 10 am Kyle arrived at my office to discuss the situation. I informed Kyle
that we are at an impass and he stated that we were not. I told him we needed to discuss
the pricing and he informed me that he would leave if this was the topic of discussion. He
only wanted to talk about MasTec completing the bore. I told him that we needed to
discuss pricing as well as boring and he said he would leave if we were going to discuss
pricing. He stated that he made himself clear on Friday and the price wasn't changing. I
informed him that the proposed prices are far fi.om fair market value and he stated he
knew that and his business model was different than MasTec's. I told him that he
couldn't obtain work at these rates and he said he didn't get a lot of work but the work he
did get was very high on profit. I then told him that I wouldn't accept his taking
advantage of us and would not agree to the costs. I then asked if he wanted us to install
the bore and he said if I didn't agree to his pricing then he didn't want me doing the
bores. At 10:03 he said bye and left.
Our cost figures to do the necessary scope to complete the repairs is around $12,000. I
cannot agree to the charges proposed to make the repairs because they are far from fair
market value. MasTec will make the necessary repairs itself or negotiate the fair market
value costs to complete the work but cannot accept the costs as proposed.
Let me know if we can assist in getting this resolved so we can achieve our goal of
getting the fiber to the school up and running again.
Sincerely,
Robbie Dupree
Operations Manager
214 543-4933
Western Region - Dallas Division
4747 Irving Blvd., Suite 221 * Dallas, Texas 75247 * (214) 571-2500
Building the e-World
. asTec
7/9/04
Quote for Repair of CISD Fiber
~Qty Description Unit price
4500 R
Extended pric~
$5532.50
Delash old and relash new fiber $1.25
(24 count unarmored) cable on
existing poles.
315 fl Bore 2" and install 1.25"innerduct $12.00 $3780.00
from pole to building.
5500 fi 24 count unarmored fiber optic $0.35 $1925.00
cable.
1 each Pole riser with u-guard $125.00 $125.00
I each Building entrance $75.00 $75.00
48 each Fiber splice $35.00 $1680.00
Total $13,117.50
Price is lump sum and MasTec will supply all materials.
Existing u-guard and building riser material will be re-used as it was not damaged.
Robbie Dupree
Operations Manager
MasTec North America, Inc.
214 543-4933
Western Region - Dallas Division
4747 Irving Blvd., Suite 221 * Dallas, Texas 75247 * (214) 571-2500
Building the e-World