At its Regular meeting of August 11, 2014, City Council approved payment not to exceed $404,122.13 to Safetech, for asbestos abatement required by a Montana Department of Environmental Quality (DEQ) violation letter, so that demolition could resume. Safetech performed the abatement work timely and was paid the amount authorized. However, that amount was based on Safetech's estimate of the quantity of material in demolition debris piles and in the basement that needed to be removed and also factored in a credit for salvaging all steel rebar. The actual quantity of debris removed and the labor required to safely remove it from the basement were higher than estimated. In addition, DEQ did not approve salvage of steel rebar until well into the abatement, with the result that tons of it were hauled to the landfill, and Safetech realized a smaller salvage credit than estimated. Inspections required by the DEQ letter also identified additional materials, including glue pucks, mastic, and transite, which Safetech abated to ensure compliance. The total additional amount owed Safetech for demolition-related asbestos abatement is $85,060.05.

After demolition was completed, Safetech was called back to the site to abate two sections of abandoned 6-inch gas pipe insulated with asbestos-containing material discovered during site preparation for the Library parking garden. The total cost of this work is $3,965.20. The total cost of all additional abatement work is $89,025.25.

Because Safetech satisfactorily performed the abatement work per direction of the City, to meet requirements of the DEQ, payment is owed.

Approval of payment to Safetech for the completed asbestos abatement work will result in expenditures from Library unobligated reserves not to exceed $89,025.25. Payment to Safetech for this work does not constitute acknowledgement by the City that all or any of these costs are the responsibility of the City and reimbursement will be pursued with responsible parties.

Staff recommends approving payment of $89,025.25 to Safetech for completed asbestos abatement for the Library demolition.