Letter regarding property claims security, Sep 2002

NYC 9/11 Public Portal Document

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P. 1 Sep 6 2002 14:54 Location . Mode Start Time Page Result Note 96375024 NORMAL 9/6.14:54 I’CS"" 2 r 0 K

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September 6, 2002

WJoww1t4-7/»'‘ Hon. Jane Kenny Regional Administrator United States Environmental Protection Agency, Region II '•■^•.7* • < » ' * • ‘'4 • 290 Broadway New York, New York 10007

Re; United States Environmental Protection Agency (USEPA? / City of New York (City) / New- York Cit y Depaimenr of Environmental Protection (DEP) / USEPA World Trade « Center Indoor Dust Cleaning Program (Program) ■’ -i

7*7?-;7 ■ yt Dear Jane: ' S ' f ■

f...' As we discussed yesterday, in order to expedite moving ahead with 77-7*7 'J the Program, we are asking the selected contractors to provide additional security to protect the interests of USEPA and the City against claims stemming from alleged theft, damage or destruction of personal property by contractor personnel: In addition to maintaining an insurance policy against employee dishonesty, the contractors will be requited to authorize ,’'7777 DEP to deduct and retain additional reiainage (above and beyond the ‘ ‘4. standard 10% contract retainage) as security for the contractors’ obligation to pay and satisfy all such claims. In the case of air monitoring ''7 fl - contractors, the additional reiainage will total 575,000 per contractor; in -7,'- the case of cleaning contractors, it will total S 100,000 per contractor. We have been advised by Brad Gair of the Federal Emergency Management Agency (FEMA) that he concurs in this approach.

’ Y?**? ‘s’ ''77'’7‘' 7“* A' In order to implement these measures, we agree that all claims for theft, damage or destruction of personal property asserted by building owners/apartment owners with respect to work under the Program should be directed to Ute contractor with a copy to DEP (Attention: Virginia Smyth), and we agree that USEPA’s project completion form to be executed by individual building owners/apartment owners upon comoletion of work should instruct the owner to forward any such claims NYC-WTC_000154079