At the Carbon County Saratoga Joint Power Impact Board (Water and Sewer) meeting May 13, Scott Reiman with Reiman Construction told the board members he was “kind of shocked” at the email he read earlier in the day that the town of Saratoga was holding back the retainage fee for the water meter project in 2009. He said he had not seen the email until May 13, and was not aware that it had reached the point to involve attorneys.
The discussion intensified as the board members explained the expenses they had and why they believed they should not pay the retainage fee.
Reiman argued that since the work was substantially completed, he felt the retainage fee should be paid.
Reiman told the board there was poor oversight and communication throughout the process, and that 120 days was not a long enough time to have completed the project properly.
Board member Tim Lamprecht asked Reiman if he felt that way then why did his company put in a bid for the project.
Don Price, chairman of the water and sewer board, expressed his concern about the improper installation of the flares. “The proof is in the bucket,” Price said, as the failing flares were put into a bucket. Many of the flares were failing within the first year of installation.
Reiman claimed he never was told about some of the leaks that were repaired by the town employees during the warranty period.
“If we go to court, we are not going to overlook $178,000,” Reiman said.
He referred to the project as mass chaos, stating that nothing in the bid specifications required a certified plumber.
Lamprecht asked Reiman if the company was proud of the job they had done. Reiman admitted that he was not.
Lamprecht also pointed out there were several unhappy customers because of the billing process and how it was not accurate.
Reiman said the subcontractor went bankrupt while working on the job, and that Reiman Corp. had to finance the job to finish it. “We should not have bid that job,” Reiman said.
“We’ve taken over a $250,000 hit, we are not going to take anymore,” Reiman said, but added he did not want to get lawyers involved.
Price told Reiman the board had made a decision concerning the water project and the repetitive failure, and they can’t budge on the $150,000 in repairs that were done by the town of Saratoga.
Price said he had hoped things would go smoothly in trying to resolve the situation, but that hasn’t worked. “No one is happy about this project.”
Lamprecht said the town has lost over 110 million gallons of water because of faulty equipment.
Raymer said his concern is that since the installation of the water project, there has never been a complete functioning system until recently.
Board member Richard Raymer said part of the reason for the failing of the system is several of the fittings were over-tightened, which caused them to crack.
Reiman said that they changed more than 950 pits in 120 days, which was a very fast time limit. Reiman said they learned a very big lesson on this job with the subcontractor they used, and they regretted bidding for the job.
The town attorney and PMPC could not agree if the town should pay the retainage fee. Price said the attorney has advised against paying the retainage fee, while PMPC, the overseeing engineering company, states there is “no contractual reason” to hold the retainage fee.
Price asked Reiman, “What would you do if you were in our position?”
All agreed it was a good idea to avoid attorney fees if possible. Reiman said although he was not able to make a decision that evening, he would be able to come back with a decision later. The board agreed there was some wiggle room to work with and would like to see what Reiman can offer.
Lamprecht said it is the board’s responsibility to protect the citizens in this matter.
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