Copeland disputes CJ denial of $31K

From our weekly issue dated December 10, 2008


In the face of dogged insistence that the city of Cave Junction owes Copeland Paving, Sand & Gravel more than $31,000 for a driveway at the new Siskiyou Community Health Center (SCHC), the city is referring the matter to City Attorney Patrick Kelly.

Mayor Tony Paulson read part of a letter from the Grants Pass company to the council Monday night, Dec. 8 in city hall. The letter, dated Nov. 3, was given to the mayor on Nov. 21 by Jerry Reedy of Copeland, with receipt acknowledgement signed by the mayor. The letter includes the statement:

“By the facts,” Reedy wrote, “payment responsibility belongs to the city as part of the contract and we expect to be paid in full for fulfilling our duties as the contractor. If you feel that the money should come from somewhere else, then you should pursue that party for payment.

“That responsibility belongs to you. We at Copeland cannot let this matter go unresolved.”



Copeland was the successful bidder for a $4.5 million ODOT expansion and improvement project on Hwy. 199 at the north end of the city. The city administered a $440,000 Oregon Community Development Block Grant in connection with extending water and sewer lines to the new SCHC.

With council permission during the Oct. 13 meeting, Paulson was authorized to send Copeland a letter denying payment of $31,311 in connection with realigning a driveway at the health center.

Paulson told the council Oct. 13 that the city should not pay, as ODOT ordered the change, and that it was approved without authorization by a former city employee, and that the driveway does not fall under “infrastructure.” On Dec. 8 those items again were noted, and the mayor further stated that there is no written authorization.

Mayor-elect Don Moore, himself a contractor, said that for any work with a value of $1,000 or more there must be a change order signed by both parties. Such does not exist, he and the mayor stressed. They said that “Gary,” formerly the head of city public works, OK’d the driveway change verbally without permission.

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In his letter, Reedy said that he has spent considerable time interviewing people and agencies involved with the project, including ODOT, and reviewing documents.

“If we were just looking at the facts,” he wrote, “the driveway in question is part of the infrastructure drawing. Copeland Sand & Gravel was directed by city of Cave Junction staff to build the driveway. (It) was included in the infrastructure project responsibilities according to the contract documents.”

The city disputes this contention about the drive being part of infrastructure. Said Paulson Monday night, “Hanby Lane and Cottage Park Drive are on the (ODOT design) document too, and we didn’t build them.”

Reedy also quotes Ray Kissler, the architect for the health center. He said, according to Reedy, “The driveway was never included in the drawings for the Siskiyou Community Health Center project.”

The mayor said that the health center wanted the driveway modified for the grand opening, and that the former city employee said to go ahead.

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