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Tuesday, October 29, 2013

CONFLICT OF INTEREST - LACK OF COMMON SENSE & ETHICS - The Latest Example - The Gate House Fix

NOTE:  The Wedgefield Examiner has transcribed a tape of the October WPA Board Meeting to the best of our ability.  It is advised that you go to The Wedgefield Times and review this portion of the Grounds' Report, given by Al DeMarchi.  The article presented below will relate what occurred, and at times include direct quotes.  Quotes will be presented in quotation marks, in blue type, and underlined ( Please remember that the board's conversation is often interrupted, disjointed, etc.). Comments will be provided in red type and inserted as necessary.   Events, flow of information (non quotes, non comments) will be in black type.

DeMarchi begins the report stating that he has a couple of things to talk about under grounds. The first item will be the gate house.  He states, "We went out and solicited bids for the repair of the gate house out here. It was basically a two stage process.  What we did, we asked them to do the repair - replace windows and the door jams, take a look at the removal of the dry wall, because of extensive mold in there and do other repairs and putting the gutter up.  So they were given a scope of work that included gutters, door jams, doors, windows, etc., and they got three bids, OK."  Cline, "Wow, we're as close to getting....."  DeMarchi, "We have a bid of $1,298.98 from WALTON CONSTRUCTION.  We have from (sounds like Recorder - name of company.  We'll refer to it as the "R" company.)) a bid of $1,303 but he has a subject to here.  He needs to inspect the dry wall & look behind it an - and will only provide a cost estimate on that portion of the work after he has done an inspection.  The last one here is Brinnson Enterprises.  He has a price of $3,415 on the gate house.  The other item was to replace four pane down in the marina house and that one bid is $250, the other bid was for $125, and this one here - $63.58.  There are three bids.  This does not include doing all of the inside of the gate house.  We don't... know what the condition is....(something about dry wall and two by fours)...save that place but it does include windows, DOORS, GUTTER....."  Someone on the board asks a question that isn't clear on the tape.  Garrison asks how many windows and DeMarchi answers.  President Walton, " says doors were not included - just windows"  DeMarchi mumbles something as it appears he is reading specs.  DeMarchi continues saying, "In some cases, he's replacing the doors.  In this case that probably why price is so astronomical.  This one is going to replace & repair door jams, etc."  McBride says, "THESE ARE NOT IDENTICAL SPECS AND BIDS AT ALL."  DeMarchi, "They were.  The scopes of work went out the same.  The contractor, likely what they do, if he doesn't want to fool with replacing the jams, he's electing to replace the entire door, which is his prerogative."  President Walton, "It's spelled out in here."  DeMarchi, "Yes he did spell it out."  Cline, "Should the doors be replaced?"  DeMarchi, "They are steel doors and going to last longer than you and I."  Garrison, "Now we're talking about....Not interior work , right?"  DeMarchi, "Right, this does not include interior work.  We don't know.  We don't know what condition is, other than in the specifications it does call for the replacement of trim around the windows and stuff provided the dry wall - the structure is sound and worth repairing."  Garrison, "So what we are likely to find is that replacing windows......door on spending $1,300  or there about and basically .....and gutters.  Basically have the outer shell straightened out."  DeMarchi, " Yes, repair outside, electrical plug.  My recommendation would be to get a timer & set up a dehumidifier in there to run like four hours a day because the mold will just come back.  It is shameful to allow it to deteriorate to this point, OK.

COMMENTS: We pause here.   The quotes above bring the first indications of conflict of interest and the related benefits of being a contractor bidder, who happens to be a board member.  Before we get into the direct benefits of President Walton knowing intimately the property involved, think about the ethics.  Board members, let alone board members of a non profit, let alone the fact that it is the president, should act and govern in such a manner that there is no possible hint of conflict of interest or self gain - employment and direct compensation.  That is just an ethical basic in the realm of non profit governance.

Remember, Walton has intimate knowledge of any of the buildings, drainage, etc., because of his role of board member and president.

Look at the bid responses.  One bidder wants the opportunity to look at the dry wall.  One bidder is going to replace the doors.  DeMarchi, in his initial statements, includes the doors and mentions dry wall.  Later, Walton tells us it doesn't include the doors.   What kind of expert writes this mess, this so called solicitation?  Who determined the entities that would get the solicitation?  Was there a mailing list of prospective bidders?  Did ANYONE on this board make phone calls and discuss this project with any of those who bid?  Who on the board determined that they would ask Walton to bid?  What discussions took place amongst board members before they included Walton in the bidding process?  Who on the board were privy to discussions?  It wasn't the full board.  You'll note later that McBride is surprised, he asks for clarification as to whether our president is the Walton who is bidding.

As far as the grand specs of this mess, they believe there is damage under the dry wall.  I certainly am not a builder.  I have had door jams replaced and there is face trim on the interior and exterior.  The same thing with the windows.  Why would you attempt to lay new wood on what they seem to believe is damaged, possibly mold ridden dry wall and you'll see later they aren't sure of the two by fours under it.?  Why wouldn't reliable contractors want to look at the conditions, prior to bidding.  We know one bidder, our president has that advantage.

I don't trust their bidding process.  Your board members have let it slide on one another's word.  I personally went to the office and reviewed the bids for DeMarchi's first drainage project in HIS home grounds - the Enclave.  He wanted Walton to bid  then.  There was no spec package.  There were two bids.  Great Lawns was one of the bidders and lost the bid to a second bidder by $20.  The second bid had crossed out figures on it that lowered the bid to the degree that there was only a $20 difference in their favor..

So far this project appears in conflict of interest, poorly developed specs, poor management, and lacks common sense, and once again you'll see some of these members take liberties in verbally abusing a questioning board member.  You've let them get away with it before so you've added wind beneath their wings in doing it again.  Perhaps this is why no one would run for board this year, except these same players.

More discussion follows about maintaining the outside of the gate house because it is a historical monument for Wedgefield.  They talk about DeMarchi's humidifier, not maintaining the inside of the gate house, etc.  Interestingly enough you hear a lot of discussion at the board table that doesn't come through clearly on the tape.  Many board members are speaking.  The gavel never hits the table, except once. We'll go back to transcription as DeMarchi prepares to ask the board for the funding for this project.

DeMarchi, "At this time I'd like to have the money approved."  There is a question from someone on the board that can't be heard on the tape that sounds like someone is asking about the two lowest bids.  DeMarchi says, "....quotes "R" company and Walton's bids."  McBride, 'IS THAT JACKY WALTON?"  Watch DeMarchi try taking the question around the pole instead of answering it directly.   Really, his answer looks like an insult to the intelligence of any person witnessing, or listening to this meeting. DeMarchi, "Walton Construction Company, 2610 South Island Road."  McBride, " I would think  Jacky, this is a conflict of interest for you."  President Walton, "Well I want to just say that - let me explain something.  Al, had given these contractors a scope of work. Are you going to set me aside just because I'm a board member trying to help out the plantation?"  McBride, "All I'm saying is - covenants and by-laws - this would be a conflict of interest for you."  DeMarchi, "I don't see that."  McBride,  "Explain."  President Walton, "I would like to know why....if it comes to me being a contractor, how could it be a conflict of interest.  I sent in a sealed bid like everybody else."  DeMarchi, "Let me clarify something here.  I - since I just opened these bids, OK.  Walton Construction, Jacky Walton is the only one of the three, I'm sorry, Walton responded to item 3 which is the gate house proposal.  As far as the dry wall and doing all the replacement work there and Brinnson's price was $5,610 and Walton's price was $1,609.  Now John these were sealed bids.  They all received the same scope of work.  Mr. Walton, OUR PRESIDENT, did not receive any preferential treatment.  He's done work in the plantation here for years, and I think your remarks rather discriminatory."  McBride, "I don't agree."  DeMarchi, "You have no basis for it."  McBride, "It's a conflict of interest.  You get any attorney and suggest you do this.  They'll say that having someone on the board work for the plantation is a conflict of interest because first, he's our president.  This is good enough?  This is the way it is going to be?"  Yelling begins at the board table and the gavel is pounded.  President Walton, "...like every contractor, I submitted a sealed bid.  I don't know who came in first or whatever, because I have not talked to...So where is the conflict, is what I don't understand."

Please listen to this portion of the tape at the Wedgefield Times.  I've transcribed more but it is long and ugly.  McBride continues to make the point that he feels this is conflict of interest.  Walton says he'll withdraw his bid.  DeMarchi says he won't allow it.  Garrison jumps in and just keeps it going, in Garrison fashion.  McBride, ASKS TWO, IF NOT THREE TIMES, FOR GARRISON TO GET A LEGAL OPINION ON THIS.  McBride fights for his point speaking to Wedgefield's long history of mishandled contracting.  Garrison quibbles.  Cline interjects and laughs at points.  DeMarchi adds more argument.  He begins to name all the people in the contracting business he knows.  Garrison tells McBride his exceptions are MORONIC.  Cline begins to talk about discussing it as a human being and Walton has done work here and there aren't complaints and we know where he lives.  Anderson looks up conflict of interest and reads a definition.  In the end DeMarchi wants to put forth a motion to do stage I and stage II (inside of the gate house).  Garrison just wants stage I done.  DeMarchi puts forth a motion to do stage I and the window of the marina house.  Your board votes 5 - 1 to approve.  McBride has voted no.  Walton abstains.

COMMENTS:  As I listened and transcribed the tape over a few days, there came times when I had to shut it off and walk away.  I won't call myself an expert, as so many on this board easily and frequently do.  I have been on boards, worked for non profit boards -  large and small, over 25 years.  I have never seen the ugly behavior of this board, the disregard for other elected or appointed to the board, the disregard for "above board" management, disregard for common sense and ethics, and the plain disregard for the audience they were to serve, in this case - you. 

As you listen to the tape you'll note that Walton jumps in to defend himself several times - his right to bid.  If his business is doing so well, why would he ever put himself, or our association in this position?  If his goal is for the good of Wedgefield and he feels his contract work is so valuable to all of us, he has options.  He can resign from the board and remove himself from the ballot, and bid like anyone else.  If your legal chair is so confident that his opinion is correct, why wouldn't he go to the attorney for an opinion?  Walton, Garrison, and DeMarchi labor at this too long in their attacks and they protest far too much.  EVERY BOARD MEMBER SHOULD HAVE DEMANDED A WRITTEN OPINION ON THIS SUBJECT IN ORDER TO MAKE A LEGAL, ETHICAL DECISION ON THIS MATTER.

 As I worked to listen and transcribe, I also read the most recent Wedgefield Wragg.  Garrison is so pleased that the board had not had to defend themselves against law suit in 2013.  Our governance is so tangled in Wedgefield that most members probably nodded yes - good.  You are as responsible as this dysfunctional board if you don't attend meetings and don't follow what is happening in the very place you live.  If you were responsible enough to keep abreast of the facts, take exception to what this board is doing, you would have been insulted enough to take action.  Garrison played a huge role in the history of the last lawsuit, he even helped fund it.  This abrasive board may have caused you to fear taking action, fear questioning, because they have wore you out with their antics.