Wednesday, March 18, 2009

In Colorado, Cost Overruns Delay Asbestos Abatement

In Fort Morgan, asbestos abatement at the abandoned Jack's Bean Co. warehouse, located on prime industrial property, is awaiting resolution of a number of concerns expressed by City Council members, not the least of which is a cost overrun dispute.

An asbestos abatement contract with Denver Environmental Company, or DEC (formerly L&L Environmental, Inc.) was entered into by former city manager Michael Nagy without the mandatory bidding process.

DEC subcontracted the asbestos work to two other abatement firms; Western Cleanup Co. and Aspen Industries. Aspen was to handle asbestos removal and abatement procedures, and Western was charged with asbestos disposal and building demolition. DEC remained the agent-in-charge of environmental oversight and monitoring, as required by Colorado law.

Now DEC is billing the city for $22,000 in additional costs for work already performed, and $110,000 for additional asbestos located within the building after the original contract was agreed upon.

In fact, L&L may not have been state-certified for asbestos abatement, though DEC clearly is, and city attorney Jeffrey Wells is researching the "somewhat murky" transition.

Moreover, Wells is charging DEC - which refuses to continue abatement without an upfront payment of $22,000 and an assurance the overrun will also be covered - with breach of contract. The contract clearly states that DEC must get advance approval for additional expenditures, which they did not do.

"That was their job, to determine how much asbestos was in that building," noted Councilwoman Terri Schafer.

Both Aspen and Western have declared themselves willing to move forward without additional payment, making DEC's stance on the matter even more troubling. In the meantime, the turn-of-the-century Jack's Bean Co. building stands open to the elements, the remaining asbestos spreading into Fort Morgan via shattered windows and gaping holes where the building has crumbled.

Undisturbed, asbestos can remain in situ for years without causing problems, but once abatement procedures are begun the loose asbestos is picked up by air circulation and by being handled, and is spread into the surrounding environment.

Asbestos fibers, inhaled, can cause illnesses, including lung cancer, cancer of the pharynx, cancer of the esophagus, stomach cancer, colon cancer, cancer of the rectum, asbestosis and pleural mesothelioma. Mesothelioma, a particularly lethal form of lung cancer, can lie dormant for decades, but when it finally manifests the patient commonly dies with a year or two.

The Jack's Bean building now stands open to the winds of a Colorado winter. In 30 to 50 years, children walking or playing in the vicinity may discover themselves the victims of an incurable form of lung cancer, all because of the inability of an asbestos abatement firm to perform an accurate abatement assessment, and the reluctance of a city council to spend hard-won dollars.

If you are a member of a governing body (a city council, a homeowner's association or co-op apartment board, or the board of a hospital or school), and the entity you serve is facing asbestos abatement on an older building, please verify with state officials that your asbestos abatement firm is fully licensed to undertake the project, has experience working with asbestos removal and disposal, and has not been litigated for failure to perform according to established laws.

Asbestos abatement, once begun, needs to be completed in a timely manner. Anything else is a death sentence for those living or working in or near the building. Asbestos does not degrade over time, and neither OSHA, the CDC, nor the American Cancer Society has ever established minimum, safe levels of exposure.

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