HomeMy WebLinkAboutWashington State Department of Transportation - Reciprocating Agreement for Overhead Charges OH 00162 ild,(4i /- J'
Washington State Transportation Building
Department of Transportation 310 Maple Park Avenue S.E.
Paula J. Hammond, P.E. P.O. Box 47300
Secretary of Transportation Olympia, WA 98504 - 7300
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TTY: 0 1 800 -6388
March 29, 2011 www.wsdot.wa.gov
Al n APB X41 2011
Mr. Doug Mayo
City Engineer EPoueEaERING
City of Yakima
2301 Fruitvale Boulevard
Yakima, Washington 98902
Re: Reciprocating Agreement for Overhead Charges No. OH 00162
Dear Mr. Mayo:
I am writing to you with an important message concerning a long- standing agreement
between City of Yakima and Washington State Department of Transportation. The
agreement is Overhead Reciprocating Agreement No. OH 00162, which was originally
effective on January 5, 1996.
The original purpose of this agreement was for our two parties to agree to waive the
application of any indirect or overhead charges for labor in the event that either of us
does work for the other in the context of a transportation project that involves both of us.
This basic understanding has come to be interpreted much too broadly and we feel the
original intent is no longer being followed. We have consequently concluded that it is
not appropriate for us to continue maintaining these agreements and we will no longer
hold them to be in effect beyond July 1, 2011. We therefore will hold this agreement to
be null and void as of that date.
If you have any questions concerning this matter, please don't hesitate to call your
Regional Local Programs Engineer.
Sincerely,
Kathleen B. Davis
Director
Highways & Local Programs Division
KBD:sas
cc: Bob Covington, Director of Accounting and Financial Services, WSDOT
Kyle McKeon, Technical Services and Business Manager, WSDOT
Roger Arms, South Central Region Local Programs Engineer