Engineering Corruption in Ludington, pt. 1

[XLFD]

Last May, the City Council approved at their meeting the hiring of a firm for the engineering services on the future project of the rehabilitation of the Washington Street Bridge.  This was recorded by the City Clerk...

 

... in the 5-23-2011 City Council Minutes.  A Department of Transportation manager from Cadillac took part in this process, as was part of the protocol for such a pricy project, previously critically discussed in the Torch as to its necessity and its costs.   MDOT's Liptak commended the the City for its participation in the selection process, which took bids from 8 different engineering companies.

 

Let's fast-forward to less than six months afterwards.  The City Council "rubber stamps" another big engineering contract as noted by the city clerk ...

 

 

... in the 11-14-2011 City Council minutes.  Note that the City of Ludington (i.e. it's taxpayers) is responsible for the engineering costs that total $131,481 which is slightly more than half of the prior contract which was for a $2.5 million project.  The Dowland street repairs is a $450,000 project. 

Whereas the engineering cost was less than one-tenth of the bridge project, bidded fairly among 8 engineering firms-- the engineering costs for Dowland Street repairs is nearly three tenths of the full project which was granted to the engineer firm, Prein & Newhof after an undescribed bidding process.

 

Amazingly, since before 2008, City Hall, led by the City Manager John Shay in his executive capacity and Kaye Holman in her capacity as the Finance Committee Chairman, have granted engineering contracts to Prein & Newhof exclusively except for the Washington Bridge-- which was oversaw by the MDOT manager who was part of the selection committee, and was the only one mentioned in the public record available as having gone through the bidding process. 

 

As previously noted, the City Code has specific rules for entering into contracts as we see in Section 2.4 on Purchases and Contracts.  "Sealed bids shall be asked for in all transactions involving the expenditure of $10,000.00 or more and the transaction evidenced by written contract submitted to and approved by the city council."  We have seen this totally ignored by these City leaders in their contracting with a certain sign company, a certain sidewalk-installing company, a certain electric company, a certain water tower painting company, etc.   

 

Prein & Newhof, and Prein & Newhof only, were the engineering services contractors mentioned in the public record for these following projects that were approved by the City Council and the Municipal Marina Board at the following meetings.:

2011 2-14 p3 Waste water improvements $60,000 

2010 9-13 p. 2 Staffon Street Impr. $124,153

2010 6-17 p.2 Transient Docks $107,000

2009 7-13 p.8 William St  $13,748 (as noted in 2009 10-26 p.9)

2008 8-25 p.2 Ferry Odor Project $30,595

2008 4-28 p.2 Leachate Station Impr. $10,835

2008 3-24 p.2 Four separate projects

  a.  South Madison street/pipes:  $57,000

  b.  Franklin street/pipes:  $36,929

  c.  Tinkham/Fitch sewer:  $27,625

  d.  Loomis Walkway (p3):  $167,100

 

Does Prein & Newhof have special privileges and connections with Ludington City Manager so that they have a monopoly on Ludington projects that require engineering services?  It sure looked that way to Dick Boes of the Municipal Marina Board as this exchange on April 22, 2010 between him and CM John Shay took place, according to the minutes of the 2010 4-22 Marina Board meeting:

 

"D. Boes questioned using Prein and Newhof as the only engineering firm for City projects. J. Shay explained that the City has done business in the past with other firms and that the City has been very happy with their services. It is not practical to change firms on a project by project basis. The engineering fees represent approximately fifteen percent of the total project cost. If the City were to decide to use a new engineer, interviews would be conducted at such time."

 

"Not practical" to engage in the City Code's mandated bidding process for projects over $10,000?  Speaking for the City, Shay says interviews will be done only if he decides to.  Nobody beside Boes has ever publicly blinked at this glaring example of the unlawful, unnecessary waste of taxpayer dollars.

 

If the engineering services cost us 10% of the project like in the project given to Fishman, et. al. Engineering in the competitive bidding process used for the bridge, we would save $86,000 just on engineering costs on the Dowland Street project alone!  Prein & Newhof have no competition and can set a comfortable price for them-- unless of course they have some State agency as part of the selection process. 

 

Now for the anti-climatic finale, the Ludington Torch made a FOIA request recently for:  "The competitive bids sent out and received by the City for the construction engineer services on the Dowland Street Project scheduled to take place in 2012."

 

Here is the reply:  2012 1-17 P&N Dowland Bids.pdf.  No records exist for any competitive bids.

 

If you remember, the City Manager invited me into the City Hall, that he banned me from nearly a year ago with an unconstitutional law he helped create, to have a chat with the Prein & Newhof representative just this last week.  I think I had a little more here than they could answer.  I estimate roughly that there is over $200,000 that the City has lost just by not seeking competitive bids for engineering services.  This is just pure laziness and irresponsibility by our City Manager, John Shay.  Or is it more than that?

[Heaven Therzke]

parting shot.  why does anyone have any confidense in a city manger who wont' even go by the rules.  lotsa money getting lost.  look deeper.

[XLFD]

I've asked myself that same question often, Heaven.  The problem goes a bit deeper than the City Manager; he has a lot of enablers in that place where this one cannot go anymore because of their dislike of my FOIA requests, and that policy by a unanimous vote gave the City Manager unchecked power to ban anyone from public facilities without any process other than him talking with the LPD and having them deliver a Letter of Trespass for him.

[AQUAMAN]

I just wish we could entice and encourage more "deep throats", referring to the Nixon era of a squealer on the inside. Then we would definitely be able to cut thru alot of the hoops and other wastes of time for FOIA's and other trapnets that Shyster Shay/Wilson are setting X up for all the time. Btw, the correct legal term for some that would enable and exceed legal authority to exist and succeed, in keeping with secrets and concealing vital contracts and other public records, is called "conspirators". When someone, anyone, even a Heaven like this says "keep digging", you know you're on the right track, and need to continue.

[XLFD]

I haven't been without contact from folks that say they are or were in the loop who have intimated certain things or made some hard to verify assertions.  I have got the germ of an article or two from them, but I do respect anonymity and the confidentiality of my sources. 

I encourage those who wish to whistleblow on the internet to either bring it up as an anonymous member, or to pass it along to me or someone else they may trust here.  Better yet, try to get it acted upon by state or federal officials if its a city or county agency you have problems with. 

[Colleen Plummer]

I think he would enjoy sharing his experience. He's quite bright for his age and a wealth of information. he just lost the love of his life, my mother This past Christmas day, so I know he would be up for something like this in the future... Thanks

[AQUAMAN]

Sincerest sympathies for your family and your dad Colleen. I can tell already he is a bright and informed man. I too just lost my last favorite uncle on Xmas Day, sad way to end the year indeed.