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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

State Settles Dispute Over Leaky Pipe System Companies Involved In Prison Project Agree To Pay $2.7 Million

Four companies have agreed to pay back $2.7 million to the state for replacing leaky underground water lines at Airway Heights Corrections Center.

The companies are: C&R Plumbing of Coeur d’Alene; the now-defunct Westwood Corp., formerly of Greenacres; Kitchell Contractors of Phoenix; and ZGF Architects of Seattle.

The firms were involved in designing and installing nearly 5,000 feet of pipes that provided heating and cooling to the medium-security prison.

In 1994, months after the $123 million prison opened, the underground lines began leaking, forcing numerous repairs and system shutdowns.

State officials decided to replace the water system two years ago at a cost of $3.4 million.

They determined that the lines - which use compressed air to feed water to buildings - failed because they were buried in trenches that filled with ground water. That caused pipe seals to crack and break.

State attorneys claimed the design and construction were faulty.

Asked to replace the system, company officials at first said the leaks weren’t their fault.

After the state filed a lawsuit against the companies, they agreed to mediate the dispute.

That mediator, San Francisco attorney Randall Wulff, ruled recently that the firms owe the state $2.7 million.

“This is not an acknowledgment of wrongdoing on their part,” said Assistant Attorney General Mary Ellen Combo. “It reflects a common desire to resolve this issue without going through further court action.”

Representatives of C&R, ZGF and Kitchell refused to comment Wednesday.

“How those companies divide up that amount hasn’t yet been decided,” Combo said Wednesday.

“The important thing as far as we’re concerned is that the state gets repaid, not how those companies decide to do it,” said Bill Phillips, a Corrections administrator.

ZGF drew up the initial construction plans. Kitchell was the project’s general contractor, and C&R installed the water lines. Westwood, which went out of business three years ago, excavated the trenches.

State officials accepted the settlement because there was no guarantee that they would recover the $3.4 million at trial, Combo said.

In its lawsuit, the state claims ZGF ignored or failed to identify the problem of underground water below the site as it drew up construction plans.

State officials also accused Kitchell, C&R and Westwood of failing to build the pipes in compliance with design standards.

, DataTimes