The borough assembly on Tuesday is set to decide whether to cut ties with Lutak Dock contractor Turnagain Marine.
Turnagain was hired in 2022 to design and rebuild the dock, but construction has not gone forward as planned – the cause of which is the subject of a dispute between the borough and the contractor. A clause in the dock contract allows the borough to “terminate for convenience.” That means the borough can end the contract without cause or penalty, provided the borough pays for already-completed work and demobilization.
Borough manager Alekka Fullerton said Friday that she believes the borough would not owe anything beyond the $310,000 already paid to Turnagain for initial phase-one work and permitting.
In the event the assembly does vote to cut ties, the project could take bids from other contractors interested in completing the project. It is not yet decided whether a new contractor would be designing and building the dock, or just building an existing Turnagain design. Fullerton this month said she would leave that decision to the assembly. Existing designs are owned by Turnagain, but a clause in the contract gives the borough ownership in the event of termination for convenience.
Meanwhile, the borough remains in a legal dispute with Turnagain. The contractor alleges that the borough has been responsible for project delays and owes payments totalling roughly $3 million, Fullerton said.
Mediation for the dispute, and any eventual litigation, will continue regardless of what direction the assembly goes. The borough’s attorney has requested the mediation, which has been paused since the spring, restart in either November or early January.
The borough’s mediation team is currently made up of Fullerton, assembly member Gabe Thomas, and assembly member Richard Clement. Clement, however, lost his assembly seat in this past week’s municipal election. He will be replaced on the dais by Eben Sargent, but it is not yet clear if he will also be replaced on the mediation team.
Fullerton wrote in her manager’s report for the upcoming assembly meeting that “assuming Mr. Clement, who was appointed to the mediation team, is no longer a desired member of the mediation team, either Assembly Member Thomas and I attend the mediation alone, or a third member of the mediation team is chosen.”
Also in front of the assembly is the option to cut ties with engineering firm R&M. The borough has retained R&M as an “owner advisor” — meant to help the borough manage and oversee the dock project. Fullerton’s report describes R&M’s contract as “associated with” the Turnagain contract. She said that with R&M as well, she does not anticipate the borough will incur any further costs by terminating the contract.