Fines for delay at water plant may go to court

More than $250,000 in fines against a Poplar Bluff contractor building Cape Girardeau's new water plant likely will be negotiated and may go to court.

Cape Girardeau city manager Michael Miller said it is too early to tell whether Huffman Inc. will have to pay the entire amount of the fine -- $1,000 per calendar day since the Feb. 18 deadline. The issue may end up in litigation or a deal may be struck once the $17.5 million in water treatment plant improvements are completed.

As it stands now, the city will apply the fines as stated in the contract, Miller said. It will be up to Huffman to prove, at a later date, that the project could not have been completed sooner.

"I assume along the way, they'll try to do that," Miller said. At that point, it's likely that lawyers representing the two sides will begin communicating, he said.

When work is finished, Cape Girardeau will pull its water supply from 10 wells on the banks of the Mississippi River instead of from the river itself. The water will be softer, leaving fewer spots on dishes and giving water heaters longer lives. The plant's capacity will be well over demand, meaning dips into water reserves should become rare even on the hottest summer days.

Going to court

City attorney Eric Cunningham said he could not comment on a possible course of action that could be taken by Huffman over the fines. He wouldn't say whether an attorney representing Huffman has contacted the city.

"Whenever there is any attorney-client consultation or when there is even discussion of litigation possibilities, it's not appropriate for me to discuss it," Cunningham said.

Mike Huffman, the owner of the contracting company, did not return several voicemail messages left for him at his office.

The Huffman Inc. project manager, George Revelle, said last week he thought the renovation of the old structures at the Cape Rock water treatment plant could be finished within 100 days. That would push the penalty above $300,000.

The city council will ultimately have the final say on whether the fines will be assessed in total, city engineer Mark Lester said, but the staff will make a recommendation.

Those involved with the project say the work has picked up considerably in the last few weeks, but slowed to almost a halt over the summer when Huffman Inc. and the project engineers, Burns & McDonnell Engineering, quarreled over the specifications of a lime feeder. The feeder deposits lime into the water in the softening process.

The renovation portion of the water treatment improvements is the second phase. The old equipment is being upgraded so it will coincide with the new equipment that was installed in the first phase.

Miller, appointed city manager in 1995, said it is unusual for the city to apply fines at all. He said he vaguely remembered one project where a penalty was applied during his tenure. Days where weather prohibits contractors from working aren't counted toward fines.

All contracts include finishing dates, Miller said, and those targets usually allow plenty of time for unforeseen circumstances.

Contractors periodically bill the city for work that has already been completed on a certain project. Once the city reviews the work, it pays the contractor for the amount of work that was finished minus 8 percent.

The 8 percent is held back to ensure the contractor completes the work. The contract was for $15.9 million, Miller said. So far, Huffman Inc. has been paid $13.6 million for $14.4 million worth of work.

Miller said work has been moving much more quickly in the last few weeks.

"They're really working hard on it now," he said. "They've got a bigger crew on it now and we hope it gets done soon."

The improvements to the water plant are supposed to increase the water capacity from 4.5 million to 7.6 million gallons per day.

The plant work is being paid for with a bond issue passed by voters in 1996. The bonds are being paid off with a quarter-cent sales-tax increase implemented in 1997.

bmiller@semissourian.com

335-6611, extension 127