Smart Homes files claim against Moses Lake

MOSES LAKE — Smart Homes, Inc., filed a claim against Moses Lake for damages June 1 due to multiple construction issues pausing home construction.

Operations Vice President Michael Bickler claims $1.75 million in sales was lost due to construction being halted while attempting to meet city standards and requests.

An official claim amount was not specified but could reach up to $5.5 million, he said.

Bickler came before council Tuesday to discuss the claim.

City Attorney Jim Whitaker advised council not to respond to the testimony or ask questions of any Smart Homes Inc., representative during the public comment period citing litigation concerns.

"They are now in control of the claim, not the city," he said.

Bickler said the claim was filed due to three reasons surrounding paint striping, installation of utilities and a storm water system.

The city allegedly advised Bickler the paint in the Montlake Park development parking lot had to be redone.

Smart Homes, Inc., preferred to fix the paint lines by using blackout paint. The city allegedly wanted it to be removed with a sandblaster, he said.

He displayed several samples of city streets where black paint was used rather than sandblasting.

"It appears the blackout paint is used in the city," he said.

Bickler claims sandblasting will damage the parking lot causing chipping. He showed photos of damaged sandblasted lots.

Smart Homes, Inc., executed a licensing agreement with the Burlington Northern-Santa Fe railroad company to install water and sewer mains under the tracks near Linden Avenue. The railroad company requires the agreement, which contains a clause stating the railroad can terminate the contract at any time without cause.

According to Bickler, the city will not sign the contract due to the clause.

Qwest, Northland Cable and the Grant County Public Utility District agreed to the contract, he noted.

Smart Homes, Inc., is working to create a contract without the termination clause and has agreed to compensate the city if the license is terminated.

While constructing the drywell storm water filtration system the crew encountered a problem, Bickler said.

The drywell can't work due to basalt rock and other soil types.

As an alternative, Smart Homes, Inc., proposed using detention ponds for the storm water.

According to Bickler, the city advised him to construct a pipe system to flow the water into Moses Lake. Bickler allegedly expected the plan to be approved to resume construction.

The city allegedly chose to require 240 feet of steel pipe, rather than PVC, extending from Beaumont Road to the lake, Bickler noted.

Council did not respond to the Bickler's comments.

Council and staff went into executive session for 52 minutes citing litigation and the sale of real-estate. After the session, council closed the meeting with no comments or decisions.