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Monday deadline looming for LIPA contractor

BEVERLEA WALZ PHOTO | Bortech workers under contract by LIPA running pipe into a tunnel dug below the harbor between Crescent Beach and Southold in August. Major work has been put on hold for a month because of project malfunctions.

With the clock ticking toward Monday, September 30 on the deadline the Long Island Power Authority gave its contractor to fix the hitches that shut down the pipeline project, the question is what action the utility will take if the effort fails.

So far, no one’s talking.

“We certainly share the frustration with those residents that are affected by the project and while we understand the project does have its challenges, at some point we have to move forward and I think that’s what the deadline represents,” said LIPA spokesman Mark Gross.

He referred questions about a performance contract the power authority has with its contractor, Bortech, to National Grid, the utilities’ corporate partner.

But National Grid spokeswoman Wendy Ladd said no details can be released on the terms of the performance contract or exactly what might trigger action under that contract. All she would say is the contract is designed to protect the investment in what was initially a $9 million project to provide electrical backup to Shelter Island via a transformer in Southold.

Bortech, and it’s president, Robert Titanic, have not returned several phone calls asking for comment.

Constantine Poindexter of Surety One, a Raleigh, North Carolina based-company that issues performance bonds world wide, said typically these bonds are a third-party guarantee that construction will be completed within an agreed-upon time frame, with a stipulated budget and that the work will meet project specifications.

Clearly, Bortech’s work on the project hasn’t been completed on time and deadlines have been moved forward on a constant basis.

Without specifics relating to the bond National Grid has with Bortech, it’s impossible to know just how late the project is now since starting in April, or what costs may have incurred above the original $9 million price tag.

A source familiar with performance bonds pointed out that if National Grid is forced to trigger the performance bond on the LIPA project, it would be that much more difficult and expensive to get a performance bond on subsequent projects.

While Shelter Island Public Works Commissioner Jay Card Jr. has been in regular communication with LIPA and the utility has made reports to Supervisor Jim Dougherty about the progress — or lack of it — on the project, there’s been a tendency by town officials not to upset what has been a generally good working relationship with LIPA over the years. Plus, the project will provide much needed back up power to the Island.

But cross the harbor and it’s a different story. Residents on the Southold side have voiced frustration and anger at noise and dirt they say ruined their summer.

For now, it’s wait and see what Monday brings.

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