Thursday, June 21, 2012
Augusta, GA
By Al Gray
*Orange text links to sources and documents referenced in this article*
In
the waning weeks of Winter 2012, CityStink.net and Augusta Today
contributor Lori Davis submitted an exploratory, wide ranging Georgia
Open Records Act Request
for
the City of Augusta's payments under major contracts. The documents
response was massive. Deep in the supporting subcontractor billings
to the R.W. Allen, LLC contract for the Tee Center was a most
intriguing invoice from Norvell
Fixture and Equipment Company showing that $199,656.00 of kitchen
equipment as work completed and an additional $76,289.25 worth was
stored, for a total billed and paid of $275,845.32! (less 10%
retainage). The contract total for kitchen equipment is a surprising $1,329,418.00.
Why
was this invoice noteworthy? There was no detailed partnership
agreement executed between the City and its Tee Center Partner and
Manager, Augusta Riverfront LLC going into the contracts for
construction, leaving the last word on the partnership being the
unsigned, undated August 2007 Term
Sheet. Repeated
references to kitchen equipment are pretty clear that such equipment
are the responsibility of the LLC, including this: “Augusta's
Capital Funds shall specifically not be used for items related to
Kitchen
Equipment,
Laundry Equipment, and any Convention Center or Hotel capital cost.
” Similar
language making the LLC responsible for Kitchen Equipment remain
within the executed 1999
Core Agreement of record in the Offices of the Clerk of Augusta
Richmond County Superior Court.
No
Augusta Funds are to be used to procure kitchen equipment, when $1.3
million of it is under contract?
During
negotiations that have not yet produced a signed partnership
agreement there was certainly a commitment for Augusta to construct
new kitchen space within the Tee Center and relocate the combined
kitchen from the existing Convention Center. That had no impact upon
equipment ownership. Real property improvements and tangible personal
property, such as equipment, are different.
In
order to advance the investigation, Augusta Today member Dean
Klopotic submitted a follow-up GORA request seeking the most
recent R.W. Allen LLC billings under the Tee Center Contract. The
City responded with Progress
Billing Number 24, covering costs through March 24, 2012,
including Kitchen Equipment
Invoice
Number 6, through March 20, 2012.
The
details show $792,984.52 equipment work completed, materials stored
of $162,544.34 and a total billed of $955,528.86, less 10% retainage.
The R.W. Allen monthly invoice shows no additional kitchen equipment
stored. Both Construction Manager and Subcontractor show most of the
kitchen equipment as work completed.
At
11:00 AM on
Thursday, June 7,
Barry White of the Convention and Visitors Bureau conducted a TEE
Center tour, which was attended by Ms. Davis and this writer. Project
Manager Jacques Ware of Program Management firm Heery International would not permit the use of a video camera,
suggesting that we come back for the Media Tour to be held Thursday
June 14.
When
the entourage reached the second floor of the TEE Center, the empty
space was pointed out where the kitchen is to be located. At that
juncture, an inquiry was made about the kitchen equipment invoiced
back in December. Mr. Ware said that he didn't authorize payment for
a kitchen equipment invoice, asking what kind of equipment was on it.
This writer responded “ a number of tilting kettles and ranges,”
then pondering out loud if they might be stored. Mr. Ware said the
only kitchen equipment there would have to have been “for the
Marriott.” (The Marriott is owned and operated by Augusta Riverfront LLC.)
An
email request to Mr. Barry White to be included in the Media Tour on
the 14th
received no response. Other attempts were made to get a separate tour
along with one or a group of commissioners to investigate the matter.
Commissioner Joe Jackson had just returned from vacation and could
not schedule a tour in the next week. Commissioner Bill Lockett
managed to get the Heery project liason to get permission to join
another June 14 tour, only to see it canceled after several hours.
Commissioner
Wayne Guilfoyle was provided with a copy of Kitchen Equipment Invoice
on the morning of June 20, whereupon he sought explanation of where
the kitchen equipment is from Program Manager Heery International,
receiving assurance that the materials were “either stored or
installed.”
It
is fairly common practice to bill stored materials. There is clear
language on billing documents that they are “Materials Stored on
Job Site (Invoices if Required).”
Where
does the situation stand? What are the issues?
Issues
and Questions
- Where is the Equipment that Augusta paid for?
- Has Augusta Riverfront LLC been relieved of its responsibility for the purchase of kitchen equipment? If so, where? If not, is Augusta being reimbursed for the $1.3 million cost?
- If the Kitchen Equipment was delivered and used in Conference Center operations and events ($955,528.86 having been delivered, installed or stored prior to the Masters upswing in events) where is the accounting for the revenues?
- Without an Effective Date having been established for the successor catering agreement, where does accountability lie, especially since Augusta Riverfront LLC's Paul Simon having declared the Tee and Conference Center merged months ago?
- Why do both the R.W. Allen and Norvell Fixture and Equipment Company invoicing show the equipment as “Work Completed” if the equipment is “Stored?”
- Should Augusta have paid for nearly a $million of equipment months before it is installed in the new kitchen?
- Why does the invoicing include future charges for repairing Augusta Riverfront LLC equipment? Whose equipment will it be after Augusta repairs it?
-----------
Commissioners
Joe Bowles, Joe Jackson, Wayne Guilfoyle, and Bill Lockett have
provided Augusta Today and CityStink.net with substantial cooperation in
this investigation and report. The public can feel confident that
these gentlemen will pursue this matter to a conclusion.
Several
of them need to participate in a tour and inspection of the paid-for
kitchen equipment. Perhaps the city's internal auditor can vouch for
the accountability of the equipment, including verification of
delivery documents to a storage facility before the dates that the
invoicing was submitted.
It
is hoped that all will aggressively protect the interests of the
citizens of Augusta and seek wise counsel as they deal with the
aftermath of the total mess that the TEE Center currently represents.*** Stay tuned, more to come.
A.G.
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