Jury report vindicates city

Investigation clears officials in selection of contractor

Web posted September 1, 2000

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By Sylvia Cooper
Staff writer

Augusta's contract with a company to operate the city's sewage treatment plants came out smelling like a rose in a Richmond County special grand jury interim report returned Thursday.

Grand jury time line Sept. 17, 1999: A Richmond County grand jury issues a scathing report about the practices of city government, calling for a ``citizens' alert.'' The jury reports on what it perceives as wasteful spending by government officials, and states that some officials' actions invite corruption. Nov. 12, 1999: A second grand jury issues another report questioning the city government's actions and practices. Frustrated by the two-month time limit imposed on its activities, the panel calls for the creation of a special grand jury to investigate the city government. The new jury would not face a time limit. Nov. 17, 1999: Richmond County Superior Court Chief Judge William M. Fleming Jr. orders a special grand jury, facing no time limit, to be empaneled to investigate the city government. Nov. 29, 1999: A special grand jury, made up of 23 residents, is empaneled. The jury consists of 13 men and 10 women. Fourteen jurors are white; nine are black. The jurors range in age from 23 to 78. During the next eight months, numerous city officials are called to testify and hundreds of government documents are requested for examination. Aug. 31: The special grand jury issues its first interim report, finding no evidence of wrongdoing in the selection of Operations Management International as contractor to operate and manage the city's sewage treatment plants. It criticizes Commissioner Lee Beard's family's business, WRDW-AM radio station, for entering a contract with OMI four days before the contract selection process began.

After eighth months of investigating city government, the grand jury found no evidence of wrongdoing in the selection of Operations Management International as contractor to operate the city's two treatment plants.

In its interim report, the grand jury stated that although OMI was the only company allowed to present a bid after a review of qualifications from seven companies, its selection was the result of its ``proven performance in managing other treatment plants in the state along with their aggressive lobbying efforts.''

Before the contract was awarded, officials of OMI and its parent company, Denver-based CH2MHILL, played host at a dinner for some Augusta commissioners in Atlanta, after which one person remarked ``the lobsters were so big they needed to be on leashes.''

But the grand jury could find ``no evidence of any quid pro quo arrangements,'' the report states. ``However, in the future, it is the recommendation of this Grand Jury that more than one bid be obtained so that a competitive price can be assured.''

Grand jurors did criticize Commissioner Lee Beard's family's business, WRDW-AM radio station, for entering a contract with OMI four days before the contract selection process began. The radio station ran OMI ads during that time.

Mr. Beard was not a member of the city's engineering subcommittee or wastewater selection subcommittee, but he did take part in the full commission's vote to approve OMI as the wastewater operator, the report stated.

``While this is not technically a breach of the ethics rules in place at the time, county officials and employees should be reminded that contracts between themselves and companies doing business, or seeking to do business with the county need to be closely examined to avoid a conflict of interest,'' the report states.

The city's ethics ordinance was tightened in January in an effort to prohibit such conflicts.

Interviewed at the Municipal Building late Thursday, Mr. Beard declined to comment on the report. He said he had just returned from Atlanta and had not read it.

Mayor Bob Young, however, called the report ``wonderful.'' He said the report's constructive recommendations were what he asked for when he encouraged Augusta Judicial Circuit Chief Superior Court Judge William M. Fleming to appoint the special grand jury last fall.

``This is so totally different from the reports we got last year from the individual grand juries, in that those just raised questions and suspicions,'' Mr. Young said. ``This gives us firm, concrete information. It's good information, and it validates decisions that we have made here with respect to OMI and the operation of the treatment plant.''

The grand jury stated it plans to release other interim presentments as it completes its work. The grand jury was empaneled Nov. 30 after two previous regular grand juries issued scathing reports on city government operations and called for further investigation. The special grand jury began its investigation in January.

Paul Tickerhoof, OMI's Augusta project manager, said the grand jury's positive review of his company's operations in Augusta is both welcome and reassuring.

``I would say it's certainly a favorable report,'' he said. ``But I can't say we're surprised. We didn't think we were doing anything wrong that would bring back any other conclusions. But it's definitely positive to have the support of the grand jury.''

Since taking over operations of Augusta's wastewater system in August 1999, the company has saved $367,000 in operations and maintenance costs, based on what it cost the city to operate the plant the previous year.

OMI also has aggressively cracked down on industries that discharge toxic or regulated materials into the city sewerage system. Mr. Tickerhoof said OMI and the city have levied fines totaling $242,000 on industries that violate permitted levels of regulated substances.

Prior to OMI's involvement, Augusta rarely fined industries that violated the discharge rules and limits. The city's refusal to crack down on those industries has drawn criticism for many years from the Georgia Environmental Protection Division.

In addition to concluding that OMI is doing a good job, grand jurors also recommended that local industries bear a large portion of the costs of major improvements needed in the wastewater system.

``A majority of the costs of these improvements should be passed on to the industrial users since they are the source of most of the waste problem at the treatment plant,'' the grand jurors wrote.

Augusta Commissioner Bill Kuhlke said he had only scanned the report.

``It appears to me they received some significant improvement,'' he said. ``We've still got a lot to do (to improve things).''

Mr. Kuhlke said he just hopes everything else the grand jury comes back with is just as favorable as Thursday's report.

Commissioner Stephen Shepard said he, too, had only scanned the report but the general tone seemed favorable.

The report states that OMI appears to be on a steep learning curve the first year of their contract and is using many of the resources available to them to solve problems and improve operations.

The grand jury concluded that OMI is operating the plant in an improved manner when compared with past city-county operation.

Staff Writers Heidi Coryell, Brandon Haddock and Justin Martin contributed to this article.

Reach Sylvia Cooper at (706) 823-3228.