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JAMES FOSTER, VICE PRESIDENT OF HYDROSTORAGE, INC., CAME BEFORE <br />THE BOARD TO DISCUSS THE LIQUIDATED DAMAGE ASSESSMENT MADE AGAINST HIS <br />COMPANY RE THE ELEVATED WATER STORAGE TANK FOR THE GIFFORD WATER SYSTEM. <br />HE INFORMED THE BOARD -THAT THIS COMPANY IS A RELATIVELY NEW SUBSIDIARY <br />OF PITTSBURGH STEEL, FORMED FOR THE SPECIFIC PURPOSE OF BECOMING MORE <br />COMPETITIVE IN THE ELEVATED TANK FIELD THAN THE PARENT COMPANY, WHICH <br />IS INVOLVED IN MANY OTHER PROJECTS. HE FELT THEIR BID, WHICH WAS SOME <br />$80,000 BENEATH THE NEXT BIDDER ON THE PROJECT, WAS INDICATIVE OF THEIR <br />EFFORTS. MR'. FOSTER CONTINUED THAT JAMES PANDOLPH OF THEIR TAMPA OFFICE <br />HAD A COMMITMENT FROM THE PARENT COMPANY WHO DOES ALL THE FABRICATION <br />SO THEY COULD ACHIEVE THE FABRICATION IN THE TIME THAT WAS SPECIFIED IN <br />THE ENGINEER S DOCUMENTS. PART OF THIS PROJECT WAS FINANCED BY EDA <br />FUNDS WHERE THEY WERE REQUIRED TO HAVE 10% MINORITY: PARTICIPATION. MR. <br />FOSTER STATED THAT THEY, THEREFORE, BID WITH AN OUTFIT CALLED MACK ADAMS, <br />A COMPANY FORMED BY WEBB CONSTRUCTION COMPANY WITH A BLACK MAN AS <br />PRESIDENT, BUT IT WAS RULED BY EDA THAT THIS COMPANY WAS, IN EFFECT, A <br />NON -LEGAL PARTICIPANT AN-DWAS SET UP AS A CIRCUMVENTING EFFORT TO <br />PARTICIPATE IN THE MINORITY BUSINESSTYPE ENTERPRISES. HE CONTINUED THAT <br />THEY THEN WERE FORCED TO,WITHDRAW THAT PORTION OF THE CONTRACT WHICH THEY <br />HAD ASSIGNED TO MACK ADAMS AND HAVE WEBB HIMSELF BUILD THE FOUNDATION, <br />AND HAD TO SEEK MINORITY PARTICIPATION ELSEWHERE. THE ONLY PLACE THEY <br />COULD GET RELIEF ON THIS WAS BY ORDERING THE STEEL FROM A COMPANY WITH <br />A SPANISH NAME LOCATED IN LOS ANGELES, WHICH REALLY DEFEATS THE PURPOSE. <br />MR. FOSTER NOTED THAT HE WANTED TO POINT OUT SOME OF THE DIFFICULTIES <br />IN GETTING STARTED ON THIS JOB BECAUSE OF THE MINORITY PARTICIPATION. <br />MR, FOSTER CONTINUED THAT BECAUSE OF THE SPECIAL WIND LOADING,- <br />-THIS TANK REQUIRED A SPECIAL DESIGN, AND THE FABRICATION BRANCH WHICH <br />HAD PROMISED DELIVERY, AFTER REVIEWING THE SPECIFICATIONS, SAID IT WOULD <br />REQUIRE A TOTALLY NEW DESIGN AND IF IT COULD BE OBTAINED ALREADY FAB- <br />RICATED, THEY WOULD BE MUCH BETTER OFF BECAUSE THEY WOULD BE SPENDING <br />12-14 WEEKS EXTRA IN DESIGN, ORDERING STEEL, -ETC.- MR. FOSTER STATED <br />THAT THEY WERE ABLE TO LOCATE A 500,000 GALLON TANK IN.STOCK, WHICH WAS <br />MUCH HEAVIER THAN SPECIFIED, AND TO MAKE IT INTO A 400,000 GALLON TANK, <br />35 <br />0 wa323 <br />MAY 231979 <br />