The Town of Highlands high-speed broadband network will cost slightly less than previously expected thanks to an accounting error by subcontractor TRC2.
Highlands Information Technology Director Matt Shuler informed the board that the plans TRC2 submitted for the work the company would perform to build the network were correct, but there was an error that led to $432,216 worth of materials and labor being undelivered.
“To their credit TRC2 caught the error and has agreed to make it right without asking the town for additional funds,” Shuler said. “Essentially they have agreed to pay back the project management company, Wide Open Networks, via a change order and complete the work that was unaccounted for.”
Via a change order, TRC2 will provide $80,235 worth of fiber optic cable, $115,695 of anchors and guys, $69,311 worth of splicing work, and $166,974 worth of multiport-service terminals.
According to a document submitted to the town by TRC2, it states that the additional materials and labor will not delay the project, which is expected to be complete in the spring of 2021.
Commissioner Marc Hehn asked the board if submitting a claim towards TRC2’s errors and omissions insurance would be justified given the original error. Town attorney Jay Coward noted that since TRC2 was willing and able to make the correction, and pledged to do so immediately, there was no need to go through the claims process with their insurance provider.
“Given the nature of this error, I think we could get a settlement via (TRC2’s) insurance, but that can be a long and drawn out process,” Coward said. “I think the best remedy here is to allow the company to fix it’s mistake.”
Shuler added that by working with TRC2 on the front end, the town would essentially be receiving close to $400,000 worth of free materials and labor.
A motion to approve the change orders for TRC2 and subsequent budget amendments passed 4-1 with Hehn being the dissenter.
Following a public hearing, the board also voted 4-1 (Hehn) to refinance the loan for the construction of the network with BB&T and go from a tax-exempt loan to a taxable loan at the direction of BB&T representatives. Town manager Josh Ward noted that the refinancing to a taxable loan does not effect the term of the loan and the town still has the option to pay the loan off early any time after the 10-year mark. No members of the public spoke during the hearing.