Officials want to cut off water firm
Hill is under fire for 'breach of contract'
By Johnny Edwards | Staff Writer
Tuesday, June 30, 2009

If some commissioners have their way, CH2M Hill Inc., the city's water consulting firm, could be shown the door at the end of this year.

The same might go for its subsidiary, Operations Management International, the company that got Augusta's wastewater treatment plant out of hot water with the state Environmental Protection Division.

Both companies have contracts ending Dec. 31. Both came up at Monday's Engineering Services Committee meeting, and both came under fire from Commissioner J.R. Hatney, who made reference to the "breach of contract" issue that came up earlier this year involving fired CH2M Hill liaison Tony Johnson.

Utilities Interim Director Drew Goins was asking for $1.5 million to keep CH2M Hill on until additions to the J.B. Messerly Wastewater Treatment Plant system are finished, scheduled for September 2010. That sum would cover work involving Fort Gordon also, he said.

Mr. Goins also asked for $73,850 to hire consulting firm McKim & Creed to determine whether Utilities is ready to run the wastewater plant off Doug Barnard Parkway, or whether operations should remain outsourced. It was a second shot at a proposal nixed by the commission in April, when Commissioner Jerry Brigham pulled it off the consent agenda, saying he was concerned that a company handpicked by Utilities would skew its findings toward the department.

Both of Mr. Goins' requests were turned down Monday.

Mr. Hatney said that when OMI was hired in 1999 part of its job was to train city workers to take over the plant. He expressed outrage that the city should have to pay nearly $74,000 now to find out if its employees are capable.

"You done already spent 10 years of city money," he said. "If you train a child to ride a bicycle, at some point that child ought to be able to ride himself."

Before the company was brought in, the city was routinely fined by EPD. In 1999, the city had to pay $160,000 for a series of environmental violations and spills, including a line collapse that backed 1 million gallons of raw sewage into the Savannah River. Before that the city had been issued at least 10 consent and administrative orders for deficiencies dating to 1982 and had paid fines totaling $203,690.

Rather than hiring McKim & Creed, Commissioner Don Grantham proposed that Messerly operations be bid out, and the Utilities Department can submit a bid, too. The motion passed unanimously, meaning it will go on the next meeting's consent agenda.

On CH2M Hill, Mr. Hatney said he couldn't go along with extending its work because of the breach of contract issue, even though both Mr. Goins and Mr. Grantham pointed out that bringing another company in to finish the plant renovations could be costly. Mr. Grantham estimated it could cost up to $2 million.

During a March closed legal meeting, the commission considered suing CH2M Hill because it had fired Mr. Johnson, who is specifically named in the contract. The company had fired him before in 2007, but the commission got him reinstated.

The company would not tell The Augusta Chronicle why Mr. Johnson was let go again this year, but according to several commissioners it was over excessive expenses, including a dinner at The Capital Grille in Buckhead, Atlanta, during the Georgia Municipal Association's Mayors Day Conference in January. The dinner was attended by Augusta commissioners and officials from at least three other cities.

One of the attendees, Commissioner Calvin Holland, said he and others feel the company made a "scapegoat" of Mr. Johnson, that he didn't do anything liaisons for other city contractors don't normally do. He also donated money for scholarships for Josey and Laney high school students, he said.

"He was an integral part of the community," Mr. Holland said. "We just feel this was some sort of a revenge tactic against him."

Both Mr. Holland and Mayor Pro Tem Alvin Mason said the Johnson issue is just one of many problems they have with CH2M Hill and OMI. Mr. Mason said he's also upset that OMI hasn't been training Utilities to take over.

"How many times are we gonna let you get away with not doing what you're contractually obligated to do?" he said.

Reach Johnny Edwards at (706) 823-3225 or johnny.edwards@augustachronicle.com.

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