Audit report is out

[hacktivist]

Amherst overpaid a consultant to the tune of $600,000.00, says Hevesi.

Article is here: http://www.buffalonews.com/editorial...08/1062644.asp

Amherst overpaid a consulting firm as much as $600,000 to manage the town's sewer plant and its program to make fertilizer pellets from sludge, state auditors said in a report released Thursday.

The report, by State Comptroller Alan G. Hevesi, also faulted Amherst officials for failing to protect the interests of the taxpayers in agreeing in 2000 to the performance contract with consulting firm Micro-Link.

Auditors also urged town officials to stop efforts to sell fertilizer pellets because of odor problems and potential fire hazards from spontaneous combustion that have dogged the program since its begining more than eight years ago.

"Given these concerns, town officials should discontinue the sale of pellets altogether," auditors said, adding:

"It is likely that the cost of one lawsuit would dwarf what the town receives in annual revenues from the sales of pellets."

Regarding the Micro-Link contract, the audit also said, "There can be little doubt that a reasonable person would have recognized that this contract would result in unnecessary costs to taxpayers."

It went on to recommend that town officials "pursue all available avenues to recover overpayments resulting from the operation of this contract."

The report mirrors many of the findings in a December 2004 report in The Buffalo News, which estimated that the town had invested up to $16 million on the pellet project but had failed to realize its promise.

That and later reports prompted town officials to ask Hevesi's office for the audit.

However, Micro-Link's owner, Thomas B. Watkins, rejected the state's findings and said the town still owes him money.

"I don't owe them money, they owe me," said Watkins, declining to elaborate.

Watkins also said he is continuing to seek arbitration to settle billings that his firm sent the town for the years 2002 to 2005.

He declined to estimate the amount he said Amherst owes him.

In his written response to the auditors, Amherst Supervisor Satish Mohan revealed that the Town Board set aside two other higher-ranked solutions to the problems of the pellet program and chose the third-ranked solution - Micro-Link - to operate the plant in early 2000.

Mohan called the decision "less than optimal," and noted that the town also did not issue a request for proposals from other consultants or seek other bids.

Mohan also noted that the town so far has paid Micro-Link $958,000, and he pledged to "initiate further action as necessary," based on the final audit reports. Also, the town recently hired a forensic accountant to study the Micro-Link payments.

However, Mohan stood by the pellet project, saying the town will net $168,000 per year if it continues to sell the pellets to a Baltimore company, Nutrients Plus.

Mohan said he will restudy the cost figures for the program in the next few months and the town will buy liability insurance before selling pellets to any vendor.

Town officials have argued that the pellet program is fiscally sound because it reduces the solid wastes that the town must landfill and also make it possible for Amherst to earn income from selling the fertilizer pellets.

However, auditors faulted former Town Engineer Paul M. Bowers, saying he failed to present evidence to back up the claim.

Something stinks here, and it sure ain't the pellets.

Now watch the Grelick Gestapo come running to put a liptstick on this little piggy.

[atotaltotalfan2001]

And the town board wants to keep Bowers on why exactly?????

[forreason]

It appears they are not keeping Mr. Bowers, but once again these type of mistakes can be traced to poor management (not under the control of the regular employees). These are the people the TB pays $80,000-100,000 to manage the town. When these kind of mistakes are made, they should be held accountable for their actions.

[atotaltotalfan2001]

It appears they are not keeping Mr. Bowers, but once again these type of mistakes can be traced to poor management (not under the control of the regular employees). These are the people the TB pays $80,000-100,000 to manage the town. When these kind of mistakes are made, they should be held accountable for their actions.

Why do you say the TB is not keeping Bowers on? I thought they supported keeping him on in some capacity.

[Underdog]

The audit report confirms what I have found in the extensive research I have done concerning this project, much of which I have shared with you on this message board. The public was badly misled concerning this project and it has cost us millions. The Plant Superintendent was the only person that sought to give us accurate information on what was going on with respect to this project and well, you know what happened to him so I won't belabor the point. In Amherst, I guess that is what happens to someone who actually tries to look out for the interest of the taxpayers.

And it is nice to see that Mohan is going to go after Watkins to get our money back. I can't wait for Watkins to be put on the stand in a court of law and testify under oath as to what he allegedly did to save the town money. The town's attorney will have a field day with him on cross-examination. As I've discussed a number of times on this message board, what actually happened is documented and there is no way that man will be able to justify any of the monies paid to him.

As for Bowers, it is my understanding that he is done. If you look at the Agenda for March 6, 2006, which now contains the disposition of the agenda items, you will see that a resolution to appoint an Assistant Municipal Engineer was withdrawn. This was the position that Bowers was to be slotted into. But the resolution was withdrawn and as far as I know, the matter is closed. Bowers' responsibility for the millions wasted on the pellet project alone, not including the other improprieties that Mohan found, justified his permanent departure.

And as for Jim Johnson, he is still around but I understand he has been banned from the wastewater treatment plant – a fact that when conveyed by Mohan to the plant staff produced a hearty round of applause. No surprise there, that man has produced nothing but a trail of wreckage ever since he's been here.

The comptroller's audit states:

"Town officials did not follow sound business practices and failed to protect the interest of the taxpayers when they entered into an agreement with Micro-link to operate the WWTP. The contract is severely weighted in favor of Micro-link and there can be little doubt that a reasonable person should have recognized that this contract would result in unnecessary costs to taxpayers."

Pretty much sums it up. Since they have been supporting Watkins, somebody ought to ask current board members Mike McGuire, Shelly Schratz and Bill O'Loughlin to explain this one.

[Gandalf]

Pat yourself on the back, Tony!

[Dvoakley]

I have not read the audit report and I won't really comment on it until I do read it. I can't go by what the Snooze says. Dolan has told me before that he only prints sensationalism. I have also read his stories about the TB meetings. They bear little resemblence to the meeting I attended. Bottom line is, I reserve judgement.

[atotaltotalfan2001]

I have not read the audit report and I won't really comment on it until I do read it. I can't go by what the Snooze says. Dolan has told me before that he only prints sensationalism. I have also read his stories about the TB meetings. They bear little resemblence to the meeting I attended. Bottom line is, I reserve judgement.

Right. Whatever you say.

[White Owl]

Still think the plant should be privatized? Or are you finally beginning to see where the true problems at the plant came from?

Before you get on another rant against Tony, Sharon and the plant workers in general, Dr. Mohan stated last week at the plant that he has no intention of privatizing the plant.

[atotaltotalfan2001]

For anyone interested in reading the audit, use the link below and look under New Releases (or something like that)....

http://www.osc.state.ny.us/localgov/audits/index.htm

[SharpeShooter]

Underdog:

Your observations have been interesting and very informative but are definitely slanted to the Canna point of view.

There are ALWAYS two sides to a story. I do not disagree with the Comptroller's report that the contract with MicroLink was not in the best interest of the taxpayers (I do have skin in this game). However, what led up to the hiring of an outside consultant to correct issues with a process and a plant that had been ongoing for years cannot be disregarded. Something had to be done.

Unfortunately, in retrospect, neither Bowers, nor Grelick, nor Thielman (especially Thielman), nor Johnson, nor the Town Board in 2000 had a clue as to what the answer was. Canna was not the answer and his removal was warranted. Watkins was not the answer and the disposition of his issues remains in question.

Let's go way back when there was a political dispute over who should be in control of Plant 16 after both the Town Engineer and the Plant Superintendent left (for different reasons). The political stage for failure was set during the Ward administration and has spun out of control since.

Some conclusions are easy:

1. dry sludge is cheaper to dispose of than wet sludge
2. sludge can be turned into saleable fertilizer (Milwaukee's Malorganite)
3. even if "pellets" can't be sold, they can be given away (or even used by the Town that generates them...say at a golf course) and it's cheaper than land-filling.

Some conclusions are a bit more difficult:

1. is dewatering cheaper than land-filling wet sludge?
2. once a plant superintendent takes a stand against a process, can (should) he ever do a 180 and embrace it when he has the undying political support of a very influential Board member?
3. what influence, if any, was exerted by the party that had the most to lose (the landfill - by the way, the owner of whiich served jail time for exerting influence on another public official)

Unfortunately, we will never have answers, only bills....

[Pulley]

didnt the plant superintendant get fired and only get put back on payroll becuase of a stupid loophole? which is costing the town millions?

i think i would take johnson over canna any day

[WNYresident]

So this is where they are sending it too?

[White Owl]

The town board fired Bowers. Johnson has been bared from the plant site - at the request or the new town engineer and the new plant manager. They were responsible for the problems at the plant, not Canna, not the staff. Who made up the charges against Canna? Bowers & Johnson - they needed a scapegoat when the project went south. Who did they convince the town board to pick to help with the project- Microlink. The lowest ranked alternative that was studied. And don't think for a minute that Bowers and JJ didn't know what they were getting when they hired that con man Watkins. It has taken a long time, but the truth is coming out.

[Gandalf]

Sharpeshooter,
You are right on man!

Sharon,
Yes, I think that the plant should be privatized, now more than ever. It should have been done years ago. A much preferred route than Microlink. Mohan doesn't have a clue about anything involving the plant.

Pulley,
well said.