Fwd: Your question on the mixer reports

<jeeproject@yahoo.com>

From Bill Rowles. While it is true that there was a separation between Lafayette and LSJ work. This did not give Lafayette a license to ignore maintenance of the trucks. If maintenance needed to be done, they should have dealt with it as and when needed and we would have determined how best to deal with it as and when the need arose. This is simply passing the buck. Moreover, the idea that we should have realized from John's proposed budgets (and you will recall that there were many ridiculous budgets that John proposed)that specific items on the trucks needed to be corrected is ludicrous, especially in light of the clean bill of health that was indicated on the initial note from Bill Rowles. This is silly.

Darren K. Indyke
Attorney-At-Law
457 Madison Avenue
4th Floor
New York, New York 10022
Tel: 212-750-1176
Fax: 212-750-0381
e-mail: dkiesq@aol.com

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From:	William Rowles <w_rowles@yahoo.com>
Subject:	Your question on the mixer reports
Date:	Thu, 17 Apr 2008 17:07:36 GMT
To:	Darren Indyke <dkiesq@aol.com>
Cc:	Emad Hanna <ehanna@nysgmail.com>, John Amerling <john_amerling@earthlink.net>

The main difference is twofold. (1) The equipment has been sitting here in the salt air for eight months without any significant repairs being done, and (2) Arran is looking at it from a different perspective.

There is nothing on Arran's list that we didn't already know, or that we view as a major issue. We prepared an initial repair budget for this equipment that was presented in August of 2007 (which was not approved) that covered most of these items. We are trying to revive this for reconsideration. We are going to get rust and corrosion. We can deal with this with an on-going, regular maintenance program. Please remember that we bought this stuff for pennies on the dollar, and that it was used equipment not new. (Rinker's maintenance records show that the equipment was kept within 80% of new condition for operating purposes.) New equipment would have cost us around $350,000. We paid $32,000. This equipment is for limited use and the condition of it (with appropriate maintenance) appears satisfactory for what we are doing. But, both mixers could turn to crap tomorrow. It's the chance you take with used equipment. Older versions of these mixers were purchased to produce 14,000 cyds from the Krum Bay plant to the airport by O'Brien Construction. This was much more than our proposed build out program. Those mixers were sold this year for more than what we paid for ours. The purchase of this equipment, included in a study dated 18 May 2007 of buying used vs. new equipment, was presented through channels to NY, and ultimately approved by JEE. Arran was not included as part of this process.

Initially, we were not to mix Lafayette operations with island operations. We were to prepare a separate maintenance program for these mixers, which addressed most of Arran's concerns. This was also presented and not approved. The maintenance was never done. The maintenance function was being transferred to the island. This has not occurred and the mixers have been run without proper fit up and maintenance. I'm sure Arran is looking at this old equipment as being a strain on his program. I would be somewhat overwhelmed too if they were dumped on me. Bottom line is yes, they will require a lot of maintenance, but we went into this with our eyes open. All of the equipment on the island requires a lot of maintenance in my mind. But, it should be regular, comprehensive maintenance, and shouldn't be just when the equipment breaks down.

This has absolutely nothing to do with Boscoe's ability to inspect equipment.

William Rowles

Lafayette Contractors, LLC
6100 Red Hook Quarter A2-7
St. Thomas, VI 00802

(Ph) 340-779-8054
(Fax) 340-779-8055
(Cell) 340-244-8565
E-mail: w_rowles@yahoo.com