May 23, 2011

Hodges Farm & Bullard Road Contract

I want to update you on the Hodges Farm Road and Bullard Road contract with Key Paving.  Here are a few facts:

Background:

• An invitation to bid was advertised in the local paper on 8/12/10
  Invitation to bid
• The bids were to be opened on 9/16/10 at 10:00AM by the Public Works director and possibly others
• The commissioners met on October 7, 2010 and accepted the bids for Hodges Farm Rd., Bullard Rd. and Feldspar Rd. based on the Public Works director’s recommendation
  Oct. 7, 2010 meeting minutes

On 4/26/11, I requested a copy of the Hodges Farm Rd. contract after finding out we did not have a contract on Feldspar Rd.  I made several more requests for this contract, and still did not have it by the meeting Monday night (5/16/11).  

Responses by Greg Wood, County Manager, via emails:
            1.  Will Brown was busy and did not have time to get a copy of the contract
            2.  Lakeysha Wright’s father had died and she was out of the office so she could not get a copy
            3.  Betty Moon must have lost it so they had to get a copy from Key Paving

This is the county's copy and "all we have in the file."  This was supposedly obtained from Key Paving per email from County Manager, Greg Wood.

Hodges Farm & Bullard Road Contract

In my opinion, several issues call the legality of the Contract into question:

CONTRACT:

1. The contract has NO scope of work.  It does not describe what will be done, when, or how
2. There are no appendices or detail specifications of the contract
3. The contract says that for the sum of $192151.05 contractor will provide all materials, etc. while the in fact the county is providing the materials.
4. The contract does not address the warranty provided to the County by the contractor.
5. The county attorney did not sign the contract.
6. The contract is only 2 pages long with page 2 being the signature page.
7. It appears the signature lines have been whited out and the County Manager and Chairman have signed on the whited out areas.  The same is true for the signature of Key Paving official.
8. The type is completely different where the Chair’s name and title have been typed.  The same is true where Ricky Adams has signed for Key.  Is he the Corp Sec or President or Vice President?  All type is different.

PERFORMANCE BOND:

9. There is a performance bond that does not list what work the bond is for-no scope of work.
10. There is no surety listed, and there is no letter from the surety nor is there a bond number given.  The surety did not sign the performance bond.  (It is therefore worthless.)
11. There is no power of attorney attached to validate the person that is signing for the surety company.
12. No date is entered for the contract date.
13. Bond is not issued by a Surety Company
    

LABOR AND MATERIAL PAYMENT BOND:

14. Cecil Key Paving, Inc. is listed as the Surety!

15. Cecil Key Paving, Inc. is listed in the space for the amount of the bond.

16. No where on the bond does it list or refer to the surety company issuing the bond and is not signed by the surety company.
17. There is no letter from the surety nor is there a bond number given.  The surety did not sign the performance bond.  (It is therefore worthless.)
18. Bond is not issued by a Surety Company.
    

OTHER IRREGULARITIES:

1. The contract was purportedly signed September 21, 2010 by the County Manager, Greg Wood, and the BOC Chair, Charles Hill, as well as the contractor.
2. Greg Wood signed as County Clerk, when in fact he was not County Clerk until 2011. 
3. All bonds are also dated September 21, 2010.
4. The Board of Commissioners did not get the bids or approve them until October 7, 2010.
5. The type is different throughout the contract where things have been changed.

OTHER QUESTIONS THAT NEED ANSWERS:

·        Why did Key Paving get the “go ahead” to do work on Jackson Lake Rd. and Harvey Lane Rd. without a bid?  (Over $300,000 of work)

·        Why were no bids obtained and only quotes gotten and who was responsible for this?

·        Why wasn’t STATE procurement law (OCGA 36-91-20, 21, 22) followed?  And why wasn’t the attorney allowed to answer this question before a vote was taken?

·        Is Key Paving being allowed to make up losses on Hodges Farm Rd. and Bullard Rd. by being allowed to do $300,000 of work on other roads without bids?  Is this the only way we can get Key Paving to come back and finish the work since there is actually no contract and no bond?

·        Why do the County Manager, Greg Wood, and Public Works Director, Will Brown, continue to tell the BOC there are contracts when in fact there are not and never have been?

·        Why has Will Brown repeatedly come to the BOC for more money for this contractor, even though the work is not done and the part that was done was not done correctly?

·        When was the “contract” with Key Paving actually signed and why would it be signed without any protections for the county and no scope of work listed?

·        Who originally signed this contract because it appears the  signatures had to be whited out and re-signed?

In my opinion the handling of this contract by county staff constitutes gross negligence and very possibly fraud.

POSSIBLE SOLUTIONS:
 

1.     There must be more checks and balances, including allowing the full board and the county attorney to sign any contract over $50,000.

2.     Any other contract must be signed by at least two board members and the county attorney.

3.     The County Manager and the Public Works Director shall have NO authority to sign any contract, nor should any other employee of the county.  (Add to County Personnel Policy by resolution)

4.     ALL work over $50,000 performed for Jasper County should require properly executed Payment and Performance Bonds in favor of Jasper County.

5.     All contracts must be accompanied by a complete, specific “scope of work” detailing exactly what is to be done and the cost of the work.

6.     Any commissioner signing a contract without formal board approval shall be reprimanded by the Board and pay a fine of $500.

7.     Any employee signing a contract (prohibited in #3) or entering into any agreement with a vendor without formal board approval shall be terminated.  (Add to County Personnel Policy by resolution)

SUGGESTED REPRIMANDS:

 
The County Manager and the Public Works director shall both be reprimanded for:

1.      making false statements to the Board by telling them there was a contract on these roads as well as Feldspar Rd.

2.      putting the county in a costly and risky financial situation by not having performance and payment bonds

 
The County Manager shall also be reprimanded for:

3.      covering up the fact that there was not a contract by signing an invalid contract

4.      instead of disciplining  the Public Works director for negligence the County Manager has made excuses for him