Alna selectmen decided not to pursue getting $10,000 back from a local contractor whose work on the town’s sand and salt shed foundation caused them to issue a stop work order and find another contractor to complete the job last summer.
Edward Dardis, an attorney representing Damariscotta contractor Ron Hopkins of R. Hopkins Concrete Inc., sent a letter in response to the Alna board’s request to return the money the town gave Hopkins for what they called, “poor workmanship.”
Selectmen accepted the bid Hopkins submitted to the board last summer for work on the town’s sand and salt shed, a Quonset hut structure needing a concrete foundation. The job was supposed to have cost the town $20,087. Selectmen paid Hopkins $10,000 in advance of completion. He completed just the west wall foundation before residents and other local contractors aired complaints to the town.
As the board had previously reported, three out of five concrete core samples taken from the project failed strength standard testing conducted last September by Terracon Consultants of Scarborough. According to former selectmen chair Billie Willard, the testing cost the town $1500.
In his March 29 letter to the board, Dardis claims the town breached their contract with Hopkins by preventing him from finishing the work. Hopkins completed approximately $13,500 of the $20,000 contract price, Dardis said. He added Hopkins is not interested in pursuing his claim for the remaining $3500 and is willing to drop the matter.
As stipulated on page 19 of the 2010 annual report, the total cost for the project, start to finish came to $37,675. In addition to the amount paid to Hopkins, the town gave Joey Hopkins $500 to paint the shed’s exterior. Barry Miete of Barry Concrete was paid $25,675 to complete the foundation work. There is $210.73 remaining in the Sand and Salt Building Maintenance account.
According to newly appointed selectman David Abbott, the board decided to not pursue the matter, as they did not believe they would be able to get the town’s money back from Hopkins. Selectman Tom Smith concurred.
“We basically felt that what it would cost to attempt to recover the amount would be significant, with the chance we’d get nothing,” Smith said.
Towns are not required by law to open bidding on municipal projects, but Smith said the Maine Municipal Association highly recommends it. The bidding process for contract work is beneficial to towns for governance reasons and prevents possible conflicts of interests.
When selectmen put work out to bid, Smith said they have to conduct evaluations of bidders in an open and disciplined manner. They do not have to take the lowest bid, he said, but selectmen need to give a reasonable explanation as to why they did not choose the lowest bid.
As it was with the sand and salt shed contract work, Hopkins was the lowest bidder. Smith said the board found no “red flags” and they had no inkling Hopkins’ work would turn out the way it did.
“That’s the frustration inherent in this problem,” he said. “You have to go with what you know.”
The only other project coming up in the near future will be the painting of the Meeting House. Smith said the town’s Historical Committee would make a recommendation to the board as to who could do the painting work.
In similar municipal projects, selectmen have limited means to filter potential contractors. Smith said the board could consider performance bonds, which would act as insurance against future town projects like the work on the sand and salt shed.
Typically, a performance bond is for large municipal projects costing in the hundreds of thousands of dollars. If a project were not completed satisfactorily under bond specifications, a town would be able to recuperate expenses paid.
Smith said the board could consider lowering the threshold on a performance bond for other, future municipal projects. They would have to also consider the cost of the bond itself.