Many of you have followed the sorry tale of the WPA Board's recent $29,000 road repair debacle. The Wedgefield Times website, has provided transcription of motions, discussion, documents, etc, but there is one document left to review, You'll decide whether there was any judgement used, let alone good business judgement.
Briefly, if you've followed the trail, the Board approved $20,000 in April for patching, under the direction of Huggins. It was stipulated in the minutes that there would be a contract. There wasn't a contract, as admitted by Huggins months later, after the contractor had been advanced 25% of the contract ($5,000) to start, arguments ensued as to how much he had been over paid, and the contractor did not return to finish the verbal contract.
During the July Board Meeting, McBride stated that he felt the work could be done for much less. Huggins wanted another $9,000 even though the contractor hadn't completed the work on the $20,000, and hadn't shown up for months. The Board agreed that McBride would seek new bids, receive a priority list of work to be completed (Huggins hadn't had one with his $20,000 verbal contract.), and there would be a written contract (ignored by Huggins on the $20,000).
During the August Meeting, McBride had information to share that indicated the Association could have had 2-3 times the work done, for the same amount of money. Some on the Board said McBride didn't have bids, winter was coming, and they all voted against McBride, and awarded $9,000 to the vendor who still hadn't returned as of the August Meeting. What was the hurry and why award more to this vendor? We'll probably never know.
THE CONTRACT:
The contract is a one page document, written on Wedgefield Plantation Association letterhead. I've typed it exactly as it is written. I have a copy in my files. If you would like one, write the Board and ask to review the Road File. Here it is:
CONTRACT
This contract for services is between Myrtle Paving/Danny Lee, and Wedgefield Plantation Association.
The following terms will apply:
A. The cost to perform these paving repairs will be $3.50 per square foot.
B. The same quality and materials will be used as during previous work.
C. A deposit of $4,000 will be paid prior to commencement of service.
D. A completion date of August 31, 2011 will be in effect. An allowance for adverse
weather will be a condition. If this date is not met, the full amount of deposit will be
returned immediately.
E. The areas to be repaired will be prioritized by the roads chairperson.
Any other work outside the scope of this agreement will be negotiated and agreed upon prior to work performed.
Signatures and Dates: The contract is signed on 8/19/11, by Danny Lee - Myrtle Paving, Johnny Huggins/Roads Chair, Ralph McMillin, Witness, and a second witness - not legible.
THE CHECK:
Check # 6683, dated 8/19/2011, to Danny Lee DBA Mrytle Paving, in the amount of $4,000, signed by Johhny Huggins & Ralph McMillin is issued.
REVIEW OF DOCUMENTS:
You'll note that there is no total contract amount, the vendor is given a $4,000 advance payment issued the date the contract is signed, and the Board Members involved are Johnny Huggins- Board Secretary, Legal Chair, and Roads Chair, and Larry McMillin - Treasurer.
The check is signed by the same two Board Members - Huggins and McMillin who hold the Board Officer positions noted above.
COMMENTS:
First, a question for you? When did you ever sign a contract, whether in your business or professional life, where there wasn't a total contract amount figure? Why would the contract amount be left off? We know in total the Board approved $29,000. Huggins acknowledged the first $20,000 was a verbal contract. Simple addition and subtraction says there was $9,000 left. Minutes reflect that it would be a $9,000 contract. Mistake? You'll be the judge, but I don't think so. How could two BOARD OFFICERS forget the total amount?
Could it be that the total amount of the contract was left off in hopes that no one would analyze why they were advancing $4,000, on a $9,000 contract? Think about it, the vendor requested a 25% advance (in writing) on the $20,000 verbal contract (copy on file - review Roads File). Why exceed that on a second contract with the same vendor? The same vendor who hadn't shown up for months, hadn't at that point earned all of the $20,000? The same vendor who the Board had argued, at the Board table in previous months, about how much he had been over paid? Why was this particular poorly performing contractor, so important that two of our BOARD OFFICERS gave him an advance that was larger than the first?
It shoud be noted that when I reviewed the Road File, that there wasn't a priority list attached to it. You should know that when a resident did a spread sheet as to where the funds were spent (which roads, areas were repaired, at what cost), Francis Parker had $17,000, of the $29,000. Weren't some of the Board Members on record as being concerned about the roads leading to the condos? It was mentioned during Board Meetings. Weren't the condo owners a priority, after all?
We may never know why this contract was developed the way it was. You'll have to decide whether your Board used good, sound business judgement, or any sound judgement, as they contracted (???) to patch our roads.
