ALPENA — The Thunder Bay Transportation Authority voted unanimously Thursday to seek a $1,000 a day penalty fee from Oak City Contracting LLC for delays in the new Hamilton Road facility construction project.

The motion was adopted during a TBTA meeting after discussion of construction delays by the company, which originally had estimated the building would be completed in June.

According to company schedules there is a substantial building completion date of Sept. 11.

Acting TBTA Executive Director Onalee Pallas said that according to the building contract TBTA officials could levy $1,000 per day after an independent architectural company verifies the building is not competed.

Trustee Daryl Peterson said that should be started Aug. 1. He said due to unforseen circumstances with foundation drawings the building schedule already had been extended.

“We have already given them a month and a half,” he said. “I am getting serious here, we were supposed to be in that building by now.”

President Tony Suszek said that from what he understood TBTA would have to set a date for the penalty payment but could not go retroactively to seek funding.

Peterson motioned to start calculating the $1,000 a day beginning Tuesday, and was seconded by Trustee Sheila Phillips.

Suszek also pointed out that TBTA would not directly get the funding, but it would go back to the Michigan Department of Transportation grant used to pay for the building.

“(Oak City) had a completion date. They knew the weather in Alpena very well and they have their excuse that they got behind and they did not want to pay overtime,” Suszek said.

Suszek said there was another company that bid out the job, which was slightly higher than Oak City, which disputed the company could get the job done in time and at the estimated cost.

“If they are the low bidder and they get behind there should be repercussions if you don’t finish it on time,” Suszek said.

He said there are issues now concerning having to wait to get into the building. One is paying rent to Prell’s Service for the building south of Alpena. Another is the creation of bus routes for the bus service TBTA contracts with area educational establishments.

“We’re going to do our routes and we’re going to have to change them a month after school starts,” Suszek said. “There were a lot of repercussions. They are lucky we do not go back further in my opinion.”

After discussion there was a vote to accept the motion to begin charging for the construction delays.

Jason Ogden can be reached via email at jogden@thealpenanews.com or by phone at 358-5693. Follow Jason on Twitter @jo_alpenanews.