Tuesday, June 19, 2012
Augusta, GA
By Lori Davis
The Forensic Audit Sub Committee chaired
by Commissioner Bill Lockett met today for the second time, to discuss the scope of work necessary for
launching a Forensic Audit concerning the Tee Center Parking Deck. As previously discussed in this committee, the first RFP (Request for Proposals), was
released for bid with a scope of work that
was far too broad. Firms who showed an interest in bidding on the audit
were asking for more clarification and direction.
It seems that forensic audits can become
quite pricey when looking for criminal wrong doing. As I left this meeting
today, I knew I had to tell what took place. The only media present were two
regular writers for the Augusta Chronicle; Susan McCord and Sylvia Cooper. As I rode down the elevator with Mrs. Cooper,
we exchanged pleasantries and talked about what had taken place in the
meeting. I said to her," I have got
to get an article out for City Stink on this…
You do know that we named our blog in your honor." She acknowledged that she knew that, and said
to me,"Your job will be easy." I said, "I know it will, because
I will be able to write exactly what happened in that room." We left it at that. Here is what happened:
Commissioner Lockett called the meeting to order and began
to lay out his reasoning, a second time, for the need of a forensic audit. As he began
his remarks, he talked about the fact that
a good portion of the scope of the work
in question had already been done by a group called, Augusta Today, and through a blog called, CityStink.net. He went on to say that this
citizen's group had given of their own time, and spent their own money to ask
for documents in open records requests, to uncover the truth associated with
the Tee Center parking deck. He revealed that the articles published by City
Stink were all well researched and had supporting documents to accompany them.
He presented to the group four such articles in the form of,"links,"
for review. The CityStink.net articles he referenced were the following:
- TEE Center and Parking Deck: A Grand Deception?
- Liening on a Stacked Deck
- Exclusive: Fred Wrestles, Augusta Gets Decked
- Exclusive: Augusta's $714,357 "Incidental" Cost
Committee members agreed to look at the
articles researched and written by the," citizen's group", without
discussion…. The first shocking moment of the meeting!! I expected there to be
some objection from General Counsel…. "Can't believe those
citizens"….. Maybe just the
name,"City Stink," was beginning to get some respect. I began to
listen closer.
Commissioner Lockett brought back up the
fact that they had been told that all of the land under the parking deck would
be donated. He questioned the way in
which property was acquired under the parking deck, with some being purchased
by the city and other parcels remaining with Augusta Riverfront LLC. Seems that
a parcel owned by State Senator Bill Jackson (The old gas station at 9th and
Reynolds) had been traded for property at 13th and Reynolds adjoining
Mr. Jackson's tile business. Why was it important to make this deal, but not
with any of the rest of the parcels?
Another good question that brought Commissioner Guilfoyle, a new
committee member, out of hibernation. He couldn't understand why we all just
didn't believe Senator Jackson's son, as he explained on the Austin Rhode's
Show, exactly what the truth was concerning this property trade, when it was
uncovered by members of Augusta Today.
Commissioner Lockett was quick to
respond that all associated property could have been condemned and taken for
city use. Commissioner Guilfoyle responded,"I believe this would have been
a tough process." Touche….. In any
event, the land under the tax payer funded parking deck still has a 6 million
dollar lien on it. There is no disputing that fact. Also, the plan on the table
is to turn the land under the deck, over to the land bank, let Augusta
Riverfront LLC (Billy Morris and Paul Simon) own the bottom floor parking spaces
and the tax payers get the air rights. General Counsel Andrew MacKenzie
responded with a blank stare. Not one comment from committee members either. I
believe Jim Plunkett, outside Counsel
for the city called this,"Complicated."
Finally, After much discussion,
Commissioner Lockett revealed the following items that he believed would be a
narrow enough scope to put in an RFP to get to the bottom of all of this . They are as follows:
Parking
Decks
*Obtain
and review the CORE and management agreements for the Reynolds Street Parking
Deck RSPD and the Tee Center Parking decks. Identify controls deficiencies, if
any, that might arise by having different agreements with potential
cost-shifting exposures.
*Obtain
and review lien documents filed against ARLLC or 933 Broad LLC properties situate under the RSPD and ascertain that the parcels can be transferred free
of said liens to the City.
*Evaluate
and determine whether City management and contracted legal counsel acted
properly in allowing the RSPD to be constructed without executed agreements
between the parties.
*Obtain
and evaluate parking deck management Requests for Quotation covering subject
parking decks, if any exist, to determine whether ARLLC or 933 Broad LLC
ownership of underlying properties and subsequent ownership of ground floor
parking spaces were disclosed to bidders
and whether bids were properly solicited, received, and evaluated.
*If
there were alternative bids taken, determine whether the combined RSPD and Tee
Center deck agreements allow costs materially in excess of those bids.
*Evaluate
whether contracting out the operation of the RSPD to an operator not related to
ARLLC or 933 Broad LLC would have been practical or will be be practical in the
future given the relationships between the parties.
*Obtain
CORE and management agreements to evaluate whether there are adequate controls
in place to protect the City's interests and finances from waste, abuse, fraud,
or mismanagement by the Manager, including extensive rights of audit allowing
continuous capabilities to audit these agreements.
As
committee members began to cast their votes in approval of the new scope,
Commissioner Guilfoyle took exception with the way the consolidated
government has operated, revisiting the Grand Jury investigation of 1996 into city government. Recommendations were made
to the Commissioners of what needed to
be done to rectify the problems that were uncovered.
Guilfoyle commented that
nothing ever happened. Commissioner Lockett countered,"Someone has put us
in this predicament right now that we are in, and it is up to us to make the
necessary changes when we know what is required. This is what our citizens expect, and this is
what we will have to do."
We at Augusta Today and City Stink will continue to
pay attention to all that goes on with this forensic audit and all that will go
uncovered by the local media. We are getting somewhere, and it feels good!***
LD
