It took the intervention of Carmelo Morales, a rank-and-file city engineer who either got a hero’s reception or a dressing down from his directors when he got back to the office earlier today: he charged city council members with “micromanaging” an $8.2 million contract, and risking leaving the city begging for contractors. But in the end, the council approved the contract and conceded Morales’s point without giving up its responsibility to oversee contracts and know when contractors are cashing in on overruns, at taxpayers’ expense.
The council had ample reasons to raise eyebrows and questions and lower thresholds.
The London Canal flood-control project in the L and B Sections, which includes the construction of a lake between London Drive and Leaver Drive, was estimated less than a year ago to cost $4 million. The Palm Coast City Council today approved an $8.2 million contract, not including an additional $1 million for engineering and contingency.
It awarded the contract to Custom Built Marine Construction, the company mired in long-delayed Belle Terre walkway and piping project near Buddy Taylor Middle School, which as of last May had doubled in cost and was nearly a year behind schedule.
Both the surging cost of the London Canal project and its winning bidder shocked some council members.
Council member Theresa Pontieri called it “gouging” and just stopped short of accusing the contractor of profiteering off a public contract–a claim, made in public, that took aback Morales, the lead city staffer on the project. She wondered if bidding contractors had not been tipped off that the city was spending some of its federal aid money on the project, the implication being that the bounty of money would encourage bidders to inflate their prices. And she raised questions about awarding a contract of that size to a contractor the city has been wrangling with on the Belle Terre project.
London Waterway expansion is a four-year-old project, part of the stormwater master plan the city identified as part of its necessary improvements to water flow and water quality in the city. It’s also called the Jefferson Waterway and the London Waterway. It collects water from the L and B Sections (everything north of Bird of Paradise), sending that water under London Drive and U.S. 1 on its way to the Intracoastal Waterway. This project will–in part–excavate land to create the lake. The excavated material will be trucked two miles away to the city’s new future public works facility, saving the city a significant sum in fill. In essence, the project will increase flood-protection to the L Section, improving water quality and creating a passive neighborhood park.
The city has $6.2 million in American Rescue Plan dollars (that’s the Biden Administration’s $1.9 trillion 2021 Covid relief package) . The Stormwater Fund–fed by that $22.27 a month stormwater fee on your utility bill, soon to be $28.34 a month in October–will contribute $2.1 million. The project was designed last year. It has a poor bidding history. The first request in October drew no bids. The second one in February drew one. It was $5 million over the preferred budget. A third issue in May drew two bids, with the low bidder at $8.24 million. That was Custom Built Marine Construction.
“So they’re behind on the Belle Terre project, and now we’re going to hand them another $8.2 million to do more work in our city, and it’s $4 million over the engineers’ estimate,” Pontieri said. “I just want to make it clear that I will be watching this contract and their work going forward.”
She added: “I think it just needs to be known that we’re not just going to rubber stamp contracts. And maybe that’s just needs to come from here because we get contractors that see city monies, we’re not exactly a broke city and can do this type of thing. And I’m not saying that they are, but it feels that way in this specific contract.” She asked that any contingency of over $50,000 come before the council, even though the council was set to approve the total contingency amount of $702,000 in contingency. That would be the lowered threshold: $50,000. It would also go against the contract language, which spells it how change orders, or unexpected spending, is handled.
Council member Nick Klufas had no issues with Pontieri in principle but worried about the ramifications of the council stepping in to that degree, and possibly sending the sort of message that would make future contractors apprehensive to work with the city. Mayor David Alfin sought to “to hold city managers toes to the fire,” while keeping council members aware of any scenarios Pontieri was concerned about. So the manager could simply report what sort of contingencies are requested, starting at the $50,000 threshold.
By that point, Morales, who sat at the staffers’ presenting table in front the council, could not hold back, and did something rarely seen at City Council meetings, at least from staffers other than the city manager: he directly and repeatedly challenged council members in blunt terms.
“I don’t really feel very comfortable about this. I think this is setting the wrong precedent,” Morales said. “If you guys are thinking that contractors are rolling over on us, you clearly haven’t been in the meeting where we discussed change orders with me. That’s not the case at all. I argued for the city and argued for every dollar that I can get and I don’t like this. This is a micromanagement, to be quite honest. This is the way I see it. If you’re going to start ruling out contractors because they’re delayed, we’re going to run out of contractors. I’m sorry, I got to speak my mind. That’s how I feel.” No one, he said, mentions Custom Built Marine Construction’s third contract with the city, which is under budget and ahead of schedule.
“Mr. Morales, with all due respect, we’re the ones that are on the firing line when these are taxpayer dollars,” Pontieri told him, while thanking him for speaking up. “This is an expensive contract. It’s not just ARPA funds, it’s $2 million of taxpayer dollars.” Actually, the entire $9.2 million is taxpayer dollars.
She said she did not want to micromanage, but could not dismiss the reality of the Belle Terre contract. Staying on top of the contract, she said, was not micromanaging. “I appreciate my staff and my council members kind of pulling me back and saying no, we don’t need to approve every little thing but let’s go ahead and keep an eye on it,” she said.
“I don’t think we’re micromanaging, because we’re just asking to be informed,” Council member Ed Danko said. “It’s not like I don’t tell my better half not to go out and buy things. But like if it’s over a certain amount I want to at least be informed, and I know you’re listening here, sorry.”
“Is it a $50,000 threshold for you too?” Klufas, who loves to needle the easily needleable Danko, asked him. But Danko was quick to respond top the council’s Tesla owner and apostle: “If there’s a new Tesla in the driveway, I should have been told about it.”
That done, Alfin took a Solomonic approach: oversight and additional information are not micromanagement, he said, while City Manager Denise Bevan reminded the council that updates on such contracts has been “a priority in the past,” made so by previous councils. “We know the public is eager to know what’s happening in their backyard. We have a wonderful Map Viewer that’s available to the public that actually gives a status to every capital project that we have underway. It provides a percent complete, what we’ve gotten accomplished, pictures, all these things. So we know it’s important to update the public on what we’re doing from our capital improvement program. Absolutely.”
So any “dipping” into the contingency for $50,000 or more will be an information item to the council. It won’t be part of the contract. Construction will start in October, by which time the Belle Terre project is expected to be completed.
Morales was complimented by the mayor, Klufas and Pontieri for speaking up, though it is unlikely his homage to Spartacus from the well of the council’s chamber will see a repeat soon. The council approved the contract on a 5-0 vote.
City Tim says
You have got to be kidding me , they gave them another contract, That beige / canal on Belle Terre takes Any-longer it’s should have its masters by now. This new project is bigger than that one. I guess we should get ready to pay double.
celia pugliese says
Carmelo Morales should be fired for coercing our city councilwoman Pointieri into approving this gouging contract along with council by using the micromanaging bully accusation. The engineering department is always approving these overpriced contracts and to the same failing contractor that is working forever never ending in the Belle Terre bridge by the school.
Morales (desverguenza y desrespeto por la concejal Pointieri) should never be allowed. Him and Chief Carl Cote in that department are the root of all wrong being approve around the residents and asking for the wrong grants! All they ask is for areas were developesr need for new projects meanwhile Florida Park Drive calming traffic islands were voted down after spending months in meetings and labor hours and big taxpayers money on engineering design and Old Kings Road widening is only to go to face 2 and delayed widening for over 15 years. Now if these administrators are going to cry micromanaging when our elected ones ask questions we need new administrators. Also we do not need residents like Mr. Dowd that loath us because our 3 minutes request and always grand stand for staff to the extreme to criticize mayor for cutting short city lawyer. Well city lawyer not perfect either and Mr. Dowd should know better that city lawyer is to serve only the council not the residents. We sure appreciate that Mrs. Pointieri and Mayor told manager to contact county commission regarding doing an airport FAA/OCC noise study needed as with the ever increase of worldwide pilot student schools at this airport situation will worsen over time with noise and safety and things falling from aircraft or aircraft, over us. We need a city airport oversight committee to register all residents complaints and airport activities as our city surrounds the whole airport. Airport profits and residents endure. Also better watch that zoning near the airport because with more housing approved next to it, complaints will increase. Good work councilwoman Pointieri but you and council should not have approve this overprice London Dr. water way contract, much less to the same contractor that is failing his time term in other projects. No matter what Carmelo Morales accused you off. The more council will look into these administrators finances the more false accusation you will have to endure.
Fran says
These people are a rare kind of stupid. They have no idea what they are doing and it shows. We’d have better outcomes if they got rid of this whole lot and hired people with actual brains. I could make better decisions than these people, heck, my 5 year old could. Probably bribing going on or some other kind of quid pro quo happening in this city.
K says
They were also granted another project as well. It was mentioned last week in city council meeting.
There is a pattern of projects costing DOUBLE the initial projections and never getting completed in a timely manner.
A forensic audit seems like a worthy investment at this point as well as an investigation to who is awarded each of these developmental projects
me says
Why do we have City of PC Officials that continue to spend these large amounts of money on outside firms? This is a waste of taxpayers monies and we are getting tired of seeing this. Is someone getting kick backs, this needs to be investigated.
M.Neil Stevens says
If any of the projects being mentioned are that much over previous contracted figures, ya dang right they need to be micro-managed along with the personal that believe it is wrong for our elected officials to question such outlandish spending of the taxpayers dollars, Any and all Government money comes from us taxpayers, even though the present administration seems not to agree nowadays. We pay for everything, they “Government” do not have a job without the taxpayers. Thank you.
Dennis C Rathsam says
Once again we watch our council members sitting there with egg on thier faces! Lets reward the company that screwed you, give them more money, more jobs. Are you folks taking drugs? Are your brains that emptey, to keep doing the same things year after years? We have a lot more talented people liveing here in P/C. I wish they would run for council. Because the one we have now is SHIT FOR THE BIRDS!
danm says
I was in the construction industry for twenty years and worked for Company’s like McKinney Drilling, Williams Erectors and others. I go by this job site daily and have observed a very messy, unsafe work area for citizens and workers. Sorry looking equipment and an unskilled crew, along with scattered employees shirtless and no hard hats milling around. Some times the weather is good but nobody seems to be there. Time is of the essence on a million dollar project, how about it. Stop giving jobs to low bidders who in the long run turn out like this outfit.
Christopher says
Why can’t there be something in the contract that says if the project in NOT completed on time then there will be fines given to the company? Take some from their profits instead of giving them more money for going over the time given to finish!
vance hoffman says
If your afraid of oversight then it requires more of my attention. It’s trust but verify and has always been my way of running projects. If your projected dates and dollars are not met you should require a written plan of corrective action.
Mark says
“… was estimated less than a year ago to cost $4 million. The Palm Coast City Council today approved an $8.2 million contract, not including an additional $1 million for engineering and contingency.” Does make one scratch their head. It would be quite a bit lower cost for the city to buy a barge, machine and city crew to work on the canals full-time instead of kicking the can repeatedly down the road then being surprised by the cost. Something that should have been implemented 40 years ago.
David Schaefer says
Stupid is as stupid does…..
jeffery c. seib says
This is the same Mr. Morales who, at the last city council meeting, gave a wishy wash update on the completion of the Belle Terre bridge/walkway, saying essentially, he doesn’t know when it will be finished, “a couple of months”. The other engineer Mr. Cote, in charge of a dredging project in the area north of Hwy 100 some time ago, gave poor answers as to the outrageous delays in the process of completing that project. If this is the way they want it then the city council should take a vote on a motion to have the city manager oversee these projects and report to the council on a monthly basis. The council sets the policy. The city manager carries it out. If that’s not being done, someone is not doing his or her job. But we residents, who pay the bills, want to know what is going on, and want our council informed and active.
oldtimer says
Good luck with this, as I’ve said in other posts and calls, e-mails to the city, This company has been taking so long to repair 2 weirs that the canal were I live is turning into a dead zone. Wildlife is down weeds and rotting vegetation are up. They’re not building the hoover dam, just 2 small flood control gates. Most days it’s hard to find more than 2 or 3 guys working. WTF? Our taxes at work ,right?
#whatdidhesay....... says
The entire City Staff needs an enema. Some of them should just be dismissed.
Micromanage is clearly needed because of their disregard for the taxpayers.
Wake up, get a City Manager that can lead. Get rid of the head staff members and demand that staff answer the questions asked by your bosses.
Oh by the way the next time a staff member wants to speak up without being disciplined just start firing them so they can wake up.
Gus says
I don’t live in t l or b maybe it’s time for those residents to “pony up” the cost to fix the problem. I really don’t want my taxes to pay for that.