Company official is grilled over parts
POTSDAM — Trustees on Tuesday grilled Richard Kuiper, CEO of Canadian Turbines Inc., about why his company is more than a year late in delivering essential parts for the village's $3.5 million hydroelectric project.
The Burlington, Ontario, executive was late for the meeting.
Once he arrived, board members demanded to know why they should trust Mr. Kuiper to make good on his latest promise to have the west dam ready to go by Dec. 18.
"I'll be frank. We've been given a variety of delivery dates, all of which have slipped. The question before us is, 'Why should we expect your current expected delivery date to be accurate?'" Trustee Steven W. Yurgartis asked Mr. Kuiper.
Even though he had just presented the board with a new schedule of delivery, Mr. Kuiper warned he might not be able to keep to it if the municipality does not sign a letter of credit, which would allow him to get a loan to make final payments on the parts.
"Are you saying that you cannot meet the schedule unless the village provides some sort of financial guarantee to your bank?" Mr. Yurgartis asked.
"I'm certainly not trying to hold this up for ransom. If we were trying to pull a fast one on you guys, we would have done it a long time ago and I'd be in Tijuana by now," Mr. Kuiper said.
Mr. Kuiper said the parts are with suppliers and because of cash flow problems, he needs to come up with $370,000 to get them delivered. Later on, he said that having $2 million in cash would make a big difference in the coming month.
"People have asked, 'Are they there? Are they real?' Yeah, they are. If you want to come for a ride, I'll show you sometime," he said.
He presented trustees with pictures and diagrams of parts and a new schedule. Canadian Turbines now hopes to deliver two vital turbine parts by the end of this week or by Monday at the latest. Then crews from James E. Sheehan Contracting Corp. would be able to put the roof on the powerhouse building.
Mr. Kuiper said the rest of the parts could be brought through the building's door, and the dam would be "up and running" by Dec. 18.
"It would be a nice Christmas present for the village to have us generating power by then," Mr. Yurgartis said.
"Listen, I've been promised a pony once for Christmas, and I didn't get it. I'll be happy when I see the thing whirling around making power," Deputy Mayor Ruth F. Garner replied. "To hell with the schedule — I want the parts."
At one point, Mr. Kuiper suggested he was late in delivering parts because he was worried that they might "sit around in the dirt" on the village's site and not get used. He also said that there were problems with working out a permit issue with National Grid.
Mr. Kuiper also mentioned wanting the village's "second to last" payment on their contract. Mr. Yurgartis pointed out that payment, of $138,743.20, is contingent upon delivery. The village has already paid Canadian Turbines $1.1 million of its $1,387,432 contract.
When asked if the big parts for the village project have been paid for, Mr. Kuiper said that most of his subcontractors have been paid 65 percent to 75 percent of what they are owed.
Later, when Mrs. Garner asked if Canadian Turbines is "under-capitalized," Mr. Kuiper said he hopes to soon sign $7 million worth of contracts with other customers, which should bring in some cash.
"My personal net worth $6 to $7 million, but it's all tied up in power stations," Mr. Kuiper said.
Mr. Yurgartis said he was "not sure" that all of the parts really have been built, and asked for a list of the names and addresses of subcontractors so the village could confirm where, exactly, the pieces are.
Mr. Kuiper refused.
He said he has had problems in the past with subcontractors negotiating behind his back with customers. He said he'd be happy to provide a letter from his attorney stating why the company will not give out that information.
Mayor Reinhold J. Tischler asked him to pass that along.
Trustee George F. Regan said he plans to hold Mr. Kuiper to his word — and that he hopes the matter doesn't end up in court. The village is seeking legal advice about whether it should sign the letter of credit for Canadian Turbines.
Administrator Michael D. Weil said that he might take Mr. Kuiper up on his offer to take a drive to see where all of the parts are. The village is still waiting to receive the turbine shafts and blades, the gear box and other important parts. It has the generators for the project.
The town of Bancroft, Ontario, also had numerous delays in delivery of parts from Canadian Turbines for its hydroelectric project several years ago. That municipality ended up taking Mr. Kuiper to court, turning what was supposed to be a $1 million project into a five-year ordeal that ended up costing almost three times that much.
