The Federal Highway Administration (FHWA) and Arizona Department of Transportation (ADOT) are concerned with Pima County’s oversight and management of road construction projects, according to a recent memo from Priscilla S Cornelio, Director of Transportation, to County Administrator, Chuck Huckelberry.
The taxpayers of District 1 and Supervisor Ally Miller have expressed concerns for quite some time with little response, so it is with interest that we read the memo dated October 13, 2014 that explains why the County is going to be audited and why they might have to reimburse the almost $30 million in federal grants.
Of particular concern to everyone, FHWA, ADOT and taxpayers alike, are the La Canada road project; from River Road to Ina Road (in District 1) and Magee road project; from La Canada to Oracle (District 1) and Homer Davis; Bike / Ped enhancement the three lane widening (in District 2). The residents who live in the Northwest have known for some time that these projects were in trouble. The County website doesn’t encourage either, continually posting “Spring 2014” for completion, as if we don’t know we are well past Spring and they are far from being complete.
It’s important to point out the Districts where these projects are found, as those of us who live in District 1 are always mindful that long projects may be more retribution from the supervisors, as happened not so long ago, when with one vengeance vote they wiped away the entire 2014 road repair budget from District 1.
The Homer Davis project in District 2 is almost complete, with final punch list items lingering since August 6, 2014, according to the memo. The La Canada project is about four - five months behind (in real time), not 3 months as Priscilla tries to tell her boss in the the memo, and the Magee project is about 25% complete with 75% of the contract time elapsed.
All three projects are funded with a combination of local, regional and federal funds (mostly federal funds) and the following table highlights the federal sources, amounts expended and approximate level of completion achieved.
Federal AmountAllocated | Federal AmountRequested to date | Federal AmountReceived to date | PercentComplete | |
Homer Davis | $1,333,271.00 | 1,125,459.49 | $752,122.83 | 99% |
Federal AmountAllocated (STP) | Federal AmountRequested to date | Federal AmountReceived to date | PercentComplete | |
La Canada | $17,172,000.00 | $13,649,323.30 | $13,273,188.91 | 90% |
Federal AmountAllocated (STP) | Federal AmountRequested to date | Federal AmountReceived to date | PercentComplete | |
Magee | $10,246,000.00 | $1,795,798.73 | $1,739,663.07 | 25% |
FHWA has now notified Pima County that they would be conducting an audit to verify County payments to contractor and subcontractors. Select, the contractor has had subcontractors complaints filed stating Select failed to comply with contract requirements. FHWA wants to see all cashed checks from the subcontractors, and Select was given until Oct 20 to respond.
As part of the audit, Pima County is being asked to verify their oversight and management of these projects, especially as it relates to the pre-qualifications of contractors. Pima County did not seem to understand until September 4, 2014, when ADOT confirmed by letter, that the County not only has clear authority but is required to prequalify contractors as a condition of the grant. FHWA wants to review the County’s "self-certification" and from the sounds of the memo, they don't have any.
According to the memo, 'the FHWA is considering suspending all of the federal funds on these projects immediately.' In addition, they may require Pima County to reimburse all federal funds that were paid to Select for the period of time in which Select did not comply with requirements. The specific dollar amount, yet to be determined, as part of the audit.
ADOT also expressed concerns with the quality of the workmanship and materials used on these projects. As a result, these elements will also be reviewed as part of the audit on Pima County.
Although it is difficult to believe the County did not know they should "pre-qualify" contractors. It's like saying the County was surprised to find out that they might have accountability for accepting $30 million. Maybe it has never happened before. The memo ends without solution, other than plans 'to meet with Procurement and the County Attorney's office to discuss termination options'. Finishing the road projects in District 1 doesn't even come up and appears to be far from any thought. They've been summoned to justify Pima County's self-certification, project management and oversight, pretty much the same things taxpayers of District 1 and Supervisor Ally Miller have been asking of them for some time.
To read the full memo for yourself click here: Pima County Fed Highway