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6/11/2008
Trust but verify. Always.
$11 million bucks. Or $16 million. What’s a few million here and there? Both are included in the new consultant’s study that finally brings the “brutal” news of the tab so far to fix what should be a still almost-brand-new $55 million Appleton Water Plant. The Post-Crescent’s Steve Wideman cites the stark figures – and the consultant’s report can be printed off here (pp. 44 – 52 of the .pdf; it's a large file...)
It’s a good time to look at how we got to the point of $11 million worth of “brutal news.” The point here is not to point fingers, but rather for elected officials (especially those who don’t have the organizational memory – or the files –from the early 90’s), the community and the press, to learn to continuously, wisely and judiciously, ask questions. Was it Reagan or the Russians (of course, it was a favorite of Reagan’s) who always said “Trust, but verify…”?
1994 and 1995: An “Optimization & Capacity Audit” indicated the need for more water filtration capacity than the city was currently able to produce down in the flats. The study also indicated the need for what was then to be newly required “crypto” filtering. You may recall illness in Milwaukee in the early 90’s that was traced back to cryptosporidium in the city’s water. The incident led to expansive new DNR filtration reg’s that all water plants would eventually need to meet. I have the engineering studies for anyone who would like to review them. It’s very apparent the 1916-era water plant needed replacing, and the City Council responsibly voted to move forward with plans for a new water plant.
1995 through 1997: A series of engineering studies were undertaken to determine whether a new, larger capacity water plant should be built in one stage or two.
1998: McMahon, via engineering and financial studies, clearly recommended building the new water plant in one stage. Again, I have those studies, if anyone is interested in reviewing them.
Ok. All agree the community needs a new water plant. It would take a decade, but eventually all finally agreed, as well, that we absolutely didn’t get what we wanted – and what we paid for.
So… here’s where the trouble began.
1998, 1999: Only one bidder (Koch) was allowed to bid for the water plant’s membrane system – a very significant piece of the construction. I repeatedly demonstrated this to be highly unusual. I brought forward ample evidence that indicated the sole qualifying vendor was blatantly inexperienced in the contracted technology. I warned repeatedly of problems. One vendor even sued the city to be allowed to bid – and was denied the opportunity by the City Attorney.
1999: The sole bid for the Koch membranes came in at $6,169,000, the exact budgeted amount for the contract. Highly unusual. Questioned and fought by me, but not by a majority of the Utilities Committee.
2000: Required water capacity (24 million gallons/day (MGD) warm weather, 18 MGD, cold weather) repeatedly could not be achieved. Very high “fouling” of membranes continued.
2002: I specifically and repeatedly questioned membrane capacity and integrity, as performance did not match contract specifications. I specifically warned against signing off on the Koch contract.
2003: McMahon clearly (but erringly) writes that the Koch Membrane system “met the specified production capacity of 24 mgd at 20 deg C….” (It’s a lot of detailed descriptions; the recommendation that Koch has met the specified production capacity is at the bottom of page 6.)
Ok. Enough stuff and enough links to look at. Here’s the absolutely critical message: Public money is not meant to be thrown around lightly; sole source bids are very rarely the path to take. And another absolutely critical message: Good managers are hard to find. After much questioning and discussion, I trust our current Director of Utilities. He is well qualified to make the critical – and very expensive recommendations – needed in this ongoing process of fixing the phenomenally costly, alleged mistakes of the last Director and original project engineers. Question, question, question. Trust yes, but verify. And never ever stop fighting for what is right.
Jo Egelhoff, FoxPolitics.net
COMMENTS
Wow
dave allen (Wed Jun 11 18:37:20 2008)
Dave, I couldn't have said it better.
But I did go to the council meeting last night and absorbed what I could on the issue. I suggest that all of us try to do the same.
Without vigilance, every time one of these issues is ignored by concerned citizens, those meetings get packed with mom, the kids and the family dog of the backers and factotums of the bad plans.
Lon Ponschock (Wed Jun 11 23:30:10 2008)
so true
dave allen (Thu Jun 12 15:09:06 2008)
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