Lawrence school district being sued

Subcontractor files for nonpayment of $1.9M

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Deer Park-based Essential Electric, a subcontractor that performed repair work at Lawrence High School after Hurricane Sandy, has filed suit against the school district for nonpayment of $1.9 million.

The district is withholding payment of $4.3 million to the project’s contractor, Renu Restoration & Contracting Inc., based in Copiague, pending an investigation by the Nassau County district attorney’s office into Sandy-related contracts. Renu — and the subcontractors it hired — undertook restoration and repair work at Lawrence High after the school building and its campus were damaged in the storm.

Robert Modica, the attorney representing Renu, said that Essential Electric’s suit was filed last week. Lawrence Superintendent Gary Schall declined to comment. Essential had not returned calls seeking comment at press time on Tuesday.

Renu was one of the businesses that were issued subpoenas by District Attorney Kathleen Rice’s office, according to Modica. “We complied with the Nassau County D.A.’s office and provided them with the information they requested,” Modica said, adding that he did not believe Renu was the target of a specific investigation. The subpoenas focused on prevailing wage or contractual complaints.

The D.A.’s office declined to comment on the ongoing investigation, but it did offer words of caution to anyone looking to employ contractors. “When hiring a contractor, do your homework by asking for references and checking with the Department of Consumer Affairs for any past issues,” said the office’s spokesman, Chris Munzing. “Anyone who thinks they have been victimized by a contractor should contact the district attorney’s office’s Complaints Bureau.”

The Lawrence Board of Education withheld payment to Renu when the company’s name surfaced in the D.A.’s investigation, according to Al D’Agostino, the Valley Stream attorney who represents the school district. “The board is exercising its fiduciary duty by reviewing documentation to make sure that payments were made to employees under the labor law,” D’Agostino said.

Michael VanDenburg, a Renu vice president, and Modica confirmed that the company had not been paid for work that was completed in the past five months. “I am trying to get payment for my client and the subcontractors,” Modica said. “There shouldn’t have been a question they performed this work. The school district has not paid one penny.”

Modica said that he has not set a deadline to receive payment, but legal action could be an option. “We haven’t filed any litigation,” he said, “but if Renu doesn’t get paid soon we will.”

D’Agostino said that the district is trying to ensure that it follows the correct procedures in light of the investigation. “What we are trying to do is arrive at a positive outcome as expeditiously as possible,” he said, adding that Renu was “extremely cooperative” and that both the company and its subcontractors “were very responsive” when the district said it wanted to review the relevant paperwork.

Flooding from Sandy damaged the high school’s auditorium and created two sinkholes that had to be repaired. The school reopened two weeks after the storm, but subsequent corrosion of the electrical system compelled the district to close it again on Jan. 15. Students and staff were moved to the middle school, and seventh- and eighth-grade students were relocated to two district elementary schools. All students and staff returned to their respective school buildings on April 3.

Rebidding more work

After receiving a bid to repair two boilers, pumps and related equipment at the high school, the district administration planned to ask the Board of Education at Tuesday’s meeting for permission to rebid, “So that we can change our specs for greater cost efficiency,” said Superintendent Gary Schall. The work, which will cost an estimated $1.3 million, could begin immediately after the bid is accepted.

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