BCC Meeting. Immokalee Regional Airport Audit Report Fill Dirt. March 26, 2013 Dwight E. Brock

Transcription

1 BCC Meeting Immokalee Regional Airport Audit Report Fill Dirt March 26, 2013 Dwight E. Brock 1

2 Collier County Property Appraiser Aerial View for 2006 (prior to construction) Future Fill Dirt Area Future Lake Initial smaller detention pond 2

3 Collier County Property Appraiser Aerial View for 2009 (lake completed) Fill Dirt 4 Areas Lake Completed Initial smaller detention pond filled in 3

4 United States Department of Agriculture (USDA) Grant Award Letter The USDA awarded the Collier County Airport Authority a Rural Business Enterprise Grant for $450,000 for the construction of a retention pond. USDA Grant $450, OTTED Grant $454, CCAA Cash $205, Total $1,109,

5 Project Funding for the Phase I Lake Project, including Aircraft Apron Expansion Total Amount Expended: $1,596,

6 Quality Enterprise Contract Immokalee Airport Phase One Lake Collier County Airport Authority Scope of Work 2.01 The project for which the Work under the Contract Documents may be the whole or only a part is generally described as follows: Relocate canal, construct 11 acre lake, install control structure, culvert and mitered end section, fill existing lake (26 acres) [SIT 2.6 acres], install landscape buffer and irrigation and associated work. The Lake project contract did not include construction of an aircraft parking apron. Change Orders were outside the scope of work for the contract. USDA Grant Assurances require approval from the grantor for changes in the scope of work. It does not appear the USDA approved the addition services. 6

7 USDA Letter of Conditions USDA Letter of Conditions allows for the sale of the fill dirt, but requires written approval from the USDA. The Airport Authority did not obtain the USDA s written approval for the sale of the fill dirt. The Airport Authority did not bid the sale of fill dirt to ensure the highest possible return. It appears the Airport Authority did not comply with the grant assurances. Any changes in project cost, source of funds, scope of services, or any other significant changes in the project or applicant must be reported to and approved by Rural Development (RD) by written amendment to this letter. 7

8 United States Department of Agriculture (USDA) 2005 Grant Application Estimate of Total Project Cost Lake Construction Cost Estimate submitted to the USDA by Theresa Cook, prior Airport Executive Director The awarded contract was for $588, Initial Excavation Estimation: $950,000 / 235,000 cubic yards = $4.04 per c.y. TOTAL PROJECT COST $1,945,000 8

9 Contract Immokalee Airport Phase One Lake Collier County Airport Authority Quality Enterprises USA, Inc. entered into a contract with the Collier County Airport Authority for the construction of a Lake. Total Contract = $588, Work completed will be paid by price for each unit as task completed. Excavation for an estimated 250,000 cubic yards at $1.56 per cubic yard for a total of $390,000 9

10 Excavation Application USDA Grant Application (2005) proposed excavation 0f 235,000 cubic yards Excavation Application (9/19/05) proposed excavation of 210,680 cubic yards Quality Enterprises estimated and billed excavation (final 2008) of 250,000 cubic yards Clerk s Estimation Average for stock piles is 203,182 cubic yards Estimations used because actual records for excavation were not provided Based on this information the vendor may have overbilled excavation for as much as 46,818 cubic Proposed yards at excavation $1.56 per cubic size: yard ($73,036) Quantity: 210,680 C.Y. 9/19/

11 Contract Immokalee Airport Phase One Lake Collier County Airport Authority 5. Excavation of On-Site Material: Cubic yard, determined by Average End Area method from cross sections recorded in the excavation area before and after excavation. This item shall also include loading, hauling, placement, compaction and grading of the material excavated The unit price contract required all payments be made based on actual quantities. Payments were made based on certifications from the contractor, Airport Authority, and engineer. The County, Airport Authority, and engineers have been unable to provide copies of the contract required as-built plans for validation, which should include cross sections. Absent records documenting actual removal of fill dirt; Cross Sections are needed to determine the actual amount of fill material from the Lake. 11

12 Contract Immokalee Airport Phase One Lake Change Orders were outside the contract s scope of work and included the construction of an aircraft parking apron. As-built plans, as required by the contract, have been unable to be provided to validate actuals AS-BUILT SURVEY Contractor to provide preexcavation and as-built survey of all excavated and fill areas, drainage structures, by registered surveyors as required to determine quantities 12

13 AS-BUILTS submitted to the USDA As-builts were not signed and certified by a registered surveyor, as required by the contract As-builts were submitted by the URS, contractor s engineer, on behalf of Quality Enterprises As-builts were not completed by Hole Montes, design engineer 13

14 AS-BUILTS provided by URS not certified as required by the contract 14

15 AS-BUILTS Summary of Findings Hole Montes, design engineer, stated they had no involvement in the as-built information submitted and only created the proposed lake designs. As-built documents submitted were not certified, contained no calculations for required contract average end area method, are based on proposed designs, and have handwritten totals. It appears Quality Enterprises is in violation of the contract because non-compliant documents were submitted as final documentation. 15

16 Quality Enterprises Final Payment Application (Lake Project and Aircraft Parking Apron Expansion) The estimated contract quantities and the actual quantities are the exact same with no variance. 16

17 Quality Enterprises Final Excavation Application #6 for Lake Project The contract estimated excavation of 250,000 cubic yards of fill dirt. The payments appear to be made based on certifications for estimates of fill dirt cubic yards rather than actual units. It is statistically improbable the excavation estimate exactly matches the final excavation. Excavation Quantity 250,000 cubic yards at $1.56 per cubic yard. Total Paid = $390,000 It appears the engineer, URS Corporation, reviewed and authorized the final excavation pay application #6 for lake excavation based on the estimated units. 17

18 Original fill areas shaded and with elevations as used for calculations. Area where fill dirt was removed. December 2012 Area 1 = 113,042 sq. ft. The area where fill dirt was removed was the highest point of areas at 33 ft. Area 3 = 130,395 sq. ft Note: Area 4 includes filling in the 2.6 acre initial smaller detention pond Area 4 = 129,297 sq. ft. 18

19 Fill Dirt from Lake Project Estimations Calculations of all fill dirt areas were completed using both high and low elevations and then averaged. Totals reflect estimated Fill Dirt originally in piles and removed. Estimates were completed because removal records were not provided and could not be validated. Label Square Feet Average Average Height Low Height High Average Cubic Yards Area 1 113, ,922 Area 2 12, ,451 Area 3 130, ,686 Area 4 129, ,550 95, ,574 Lake Berm Formula = (Square Feet * Height) / 27 = Cubic Yards Estimated original fill stockpiles: 203,182 The vendor may have been paid for cubic yards that were not removed from the lake Removed project. The vendor was paid $1.56 per cubic yard for excavation of 250,000 cubic yards Area based on 27, and engineers certification 31,085 ($390,000) the Airport Authority, vendor, for work completed. 19

20 Contract Immokalee Airport Phase One Lake Collier County Airport Authority Change Order 1 Change Order 1 = 17% increase Change Order 1 was outside the original scope of services. 1. General Conditions 2. Survey/Layout/Asbuilt 3. Installation of Concrete Walkway 4. Installation of Additional Rebar and Anchor Bolts for Shelters 5. Furnish 2 Pavilions, 2 Benches, and 2 Trash Receptacles 6. Purchase of Equipment 7. Purchase of ATV The initial contract total was $588, Change Order 1 was $100,000 New Contract Total = $688,

21 Contract Immokalee Airport Phase One Lake Collier County Airport Authority - Change Order 1 Work Completed Pavilion and Bench Overgrown Concrete Walkway Wasps nests under the roof Bench is warped and boards rotting Change Order #1 elements completed do not appear to have been needed because the walkway, pavilion, and bench was not maintained. If change order 1 was approved by the USDA, it would have been required to be maintained so long as the Airport owns the property. 21

22 Development Excavation Permit Quality Enterprise Contract Addendum #1 Quality Enterprises removed fill dirt from the stock piles at the project site. The contractor appears to have knowingly created a contract (Resolution 08-08) with the CCAA for an illegal act (removal of fill dirt), prohibited by the permit that was part of the contract. 2. No excavated material shall be removed from the project site. 22

23 Zero Dollar Change Notification by Letter Credit for Removing 120,000 cubic yards at $2.00 per cubic yard of Fill Material from the site = $240,000 The Airport Authority BARTERED $240,000 worth of additional services for the construction of the Aircraft Parking Apron in exchange for fill dirt. 23

24 Development Excavation (Lake Project) Period 02/01/08 02/29/08 Contractor s Payment Application No. 6 Quality Enterprises submitted payment applications for February 2008 for completion of excavation. Excavation This Period $19,500 24

25 Development Excavation (Lake Project) Renewal and Inspection Fees The renewal and inspection fees to cover the period from January 8, 2008 to January 8, 2009 for the above referenced excavation The Development Excavation Permit expired on January 7, Quality Enterprises submitted a payment application for the period 2/1/08-2/29/08 which is after the expiration of the permit, for completing excavation. It appears the vendor completed excavation without a valid permit. The Engineering Services Department sent the Airport a letter for renewal of the development excavation permit. The development excavation permit was renewed on December 12, 2008, 11 months after the permit expired. 25

26 Ordinance Land Development Code During the approval process the vendor did not state the intent to remove material from the development site. The amount of fill dirt removed exceeds 20,000 cubic yards. A Commercial Excavation Permit was required for removal of fill dirt from the Immokalee Regional Airport. The vendor does not appear to have obtained a commercial excavation permit (3) Development excavation If approved by the board during the rezone and/or preliminary process, excavated material in an amount up to ten percent (to a maximum of 20,000 cubic yards) of the total volume excavated may be removed from the development. Intentions to remove material must be clearly stated during the development s review and approval process (2) Issuance of commercial excavation permits When a request is made to remove surplus fill material from a previously approved development excavation, the requirement for review by the environmental advisory council shall be waived, but dependent on haul route and amount of fill to be hauled, staff may require approval by the Collier County Planning Commission. 26

27 December 21, 2011 Fill Dirt Area 1 Removal of Fill Dirt December 21, 2012 Fill Dirt Area 1 Removal of Fill Dirt = Halted 27

28 December 21, 2011 Fill Dirt Area 1 Removal of Fill Dirt 28

29 Collier County Property Appraiser Aerial View for 2010 (Fill Dirt Removal) Fill Dirt Stockpile removal 29

30 Collier County Property Appraiser Aerial View for 2011 (Fill Dirt Removal) Fill Dirt Stockpile removal 30

31 Collier County Property Appraiser Aerial View for 2012 (Fill Dirt Removal) Removal halted in January 2012 No gate, fence, or barrier for security Fill Dirt Stockpile removal 31

32 Audit Observations - Zero Dollar Change Order The Airport Authority BARTERED $240,000 worth of additional services for the construction of the Aircraft Parking Apron in exchange for fill dirt (120,000 cubic yards at $2.00 per cubic yard). Increasing the scope of work without obtaining the grantor s written approval violated grant assurances. The scope of work (Aircraft Apron) was outside the scope of the Lake contract. The fill dirt bartered was not put out for bid and may not have received the highest possible price for the sale. Finance requirements appear to have been circumvented. Purchasing Policy appears to have been circumvented. A commercial excavation permit does not appear to have been obtained for the removal of fill dirt. 32

33 2008 Florida Statute Public Property and Publicly Owned Buildings Change Order 3 (1) A county...seeking to construct or improve a public building, structure, or public construction works must competitively award each project estimated to have total construction costs of more than $200, The expansion of the apron will cost over $1,000,000 Theresa Cook, Past Airport Executive Director Change Order 2 (barter) was for $240,000 in services. This exceeded F.S $200,000 estimated construction cost. The Aircraft Parking Apron should have been competitively bid in accordance with F.S Change Order 3 estimated $1,000,000 as the total cost for the Aircraft Parking Apron. Actual Total Aircraft Apron Expansion Project Cost $476,

34 Records provided by Airport Staff Fill Dirt Removal According to the Contractor s lawsuit, filed on December 4, 2012, approximately 30,000 cubic yards of fill dirt were removed. Total cubic yards removed = 21,672 based on the Airport s records There is a large discrepancy in the records. The log maintained by Airport Staff does not contain enough information to be validated. Truck load tickets were not obtained by the department for fill dirt removal. It appears the log has been maintained based on the honor system. The vendors removing dirt will report what has been removed. The fill dirt has not been properly tracked and there is a lack of an audit trail. The potential for theft exists and it is possible theft has occurred. One entry for 36 cubic yards is not included in the total. Airport Executive Director 34

35 Fill Dirt Unauthorized Removal Bluewater Underground removed 2 truck loads (36 cubic yards) according to the truck ticket provided. The fill dirt was removed in January 2012 based on observation. The truck ticket does not include the date. There is no contract or authorization for a vendor, other than Quality Enterprises to remove fill dirt from the site. An unauthorized vendor removed fill dirt from the site. The potential for theft is present, as a result of not properly safeguarding the fill dirt. 35

36 Records provided by Airport Staff Fill Dirt Removal Signed logs maintained and provided by Airport Staff do not contain enough information to be validated. Signed logs do not always contain the name of the company removing fill material, do not always contain a name or truck # for the removal, and do not contain signatures for each listing. No signature No company name Total loads not listed Each Entry is for 1 day 36

37 Fill Dirt Removal Estimate Calculations of all fill dirt areas using both high and low elevations and then averaged. Totals reflect Fill Dirt originally in piles and removed. Label Square Feet Average Average Height Low Height High Average Cubic Yards Formula = (Square Feet * Height) / 27 = Cubic Yards Estimated original fill stockpiles: Removed Area 27, ,182 31,085 Area where fill dirt was removed. The average estimation for removal of fill dirt is 31,085 cubic yards. 37

38 Contract and Indebtedness Lawsuit Filed on December 4, 2012 Case 2012-CA-4345 Airport Records show estimated 21,676 cubic yards have been removed between 1/21/09 1/20/ However, on or about December 28, 2011, after Plaintiff had removed approximately 30,000 cubic yards of the 120,000 agreed upon cubic yards of fill material 38

39 Summary of Audit Observations The Purchasing Policy and Finance Requirements appear to have been circumvented by the department issuing a zero dollar change notification by letter for BARTERING of $240,000 worth of additional services. Change Orders appear to be outside of the original bid/contract scope and avoided the bid process. The vendor worked on an expired Development Excavation Permit for 11 months, prior to renewal. It does not appear that a permit for Commercial Excavation was obtained and/or maintained. It appears the department did not comply with grant assurances / conditions. As-builts do not appear to meet the terms of the contract. The potential for theft exists. Lack of an Audit Trail The vendor filed a lawsuit against the Airport on December 4, 2012 to obtain payment for services rendered. 39

40 Thank you 40