Canceled Cave Junction contract causes contractor consternation
From our weekly issue dated June 02, 2010
Earlier this year, the city of Cave Junction decided to cancel its contract with Grants Pass Water Laboratory for water backflow prevention assembly inspections.
But that firm“s technical director, Eric Schaafsma, is crying foul and claiming that the move ultimately will cost city residents more money.
Cave Junction“s backflow program had been under contract with a different water company, but was put out to bid in 2005. Schaafsma“s firm won the contract and assumed responsibility for testing, billing and submitting reports. The city retained responsibility for notification and inspections.
“The city wrote it as an open-ended contract,“ Schaafsma said.
He said that in April, he sent test notifications to Cave Junction residents, but later found out that the city had pre-empted him by mailing its own notices. Clients had called and told Schaafsma about what happened, he said.
The policy shift had been discussed with him on a preliminary basis, Schaafsma said, but he wasn“t expecting the city to act so quickly.
“It was never presented to me that it changed from a thought process to an action plan,“ he said. “I had no idea. They never communicated with me.“
Mayor Don Moore said that outsourcing the program for the more than 300 backflow devices in the city used to be cheaper than handling it in-house. He said that software was “prohibitively expensive,“ along with parts for repairs and test equipment.
“Before you knew it, it was $10,000, almost,“ Moore said. “It was a lot of money upfront.“
But the cost for all those items fell, Moore said, making it more feasible for the city to provide the service.
He added that the state is requiring all backflow devices in the city to be tested before June 1, the start of the irrigation season. By handling the testing in-house, Moore said, the city can ensure that it meets that mandate.
“If we send it out to somebody else, they do it on their terms, not our terms,“ Moore said.
City Attorney Patrick Kelly said that the city terminated its contract with Schaafsma“s company on a “reasonable basis,“ and that it had every right to do so.
“There is no such thing as an open-ended contract,“ Kelly said. “He is not the city“s water guy for life.“
Kelly said that if Schaafsma were to go out of business, he would be unable to hold up his end of the contract, but the city would not sue him for the breach.
“Any party can terminate the contract,“ Kelly said. “I couldn“t sue him if he quit. It works both ways.“
Schaafsma maintains that the cost for the city to assume control of the backflow program will be at least “six figures.“
“The cost to the city to do this is very high,“ he said. “Where is the savings“ There is no savings.“
Moore said that the city can better ensure the program“s quality by providing the backflow services.
“We have to guarantee that what our people do is correct, and we have that responsibility for the integrity of our water system,“ he said. “We wanted to bring that under the umbrella of the city again so we could control the quality.“
Schaafsma said that the issue is another instance of government squeezing small business out of the picture. If that keeps happening, Schaafsma said, there will be “nothing to build on.“
Kelly stated that he has had a contract with the city to be its attorney since 1982.
“I can be disposed of tomorrow,“ Kelly explained. “I don“t see how this would be any different than it is for me.“
We want to hear from you!
Add your thoughts with the link below.
Comments returning soon!
Advertisement:
