RM 07-18-75 - Laserfiche WebLink

Home Browse Search

6. NEWIBUSINESS (Cont'd part to ask us before you did the work." Commission Legal Counsel, Mr. Kevin J. Butler, arrived in the meeting in the portion of the above conversation and President Nimtz briefed Legal Counsel, and Mr. Nimtz stated that he asked Mr. Butler, privately, -a question, and "I will ask him publicly so each Commissioner will understand what the legal status is on this thing. Mr. Butler, we were discussing a request for a change order for $236.00 for some work that was done by Madison Builders here, without prior Commission approval, and Mr. Wiggins has raised the question that if we are audited by HUD and this is run across and they disallow this payment, who's responsible for the $236.00 ?" Mr. Butler advised, "Audited by HUD, or by the State Board of Accounts - -in either event - -if it's determined that a claim was paid, which could not have been paid properly under the contract documents -- proper procedures - -the individuals who sign that claim form are responsible. Of course, all of you are bonded and the Bonding Company would, of course, have to make good on that, and then the Bonding Company has an action against the claim." President Nimtz [also an attorney] added, "That's right." Commissioner Wiggins said, "I'm sorry. You just bought the roof, but I am not going to." Mr. Madison said, "I s till can't understand--I don't see where you're sticking your neck out. I don't know what the legal ramifications are." Commissioner Wiggins responded, "You just heard it from our attorney." President Nimtz added, "I'm sorry, Mr. Madison. There is a call for the question here - -the situation is that any Commissioner who signs this claim, and if it is disallowed in the audit- - either by the State Board of Accounts or by HUD - -the Commissioners who sign the claim are responsible for that amount of money. The question has-been called for, and the motion is that this claim for $236.00 be disallowed." The motion was made by Mr. Wiggins, seconded by Mr. Chenney. Four (4) "ayes" were cast in favor of the rejection of the change order, with Mr. Donaldson casting a "naye" vote. The motion was carried by four Commissioners to reject Change Order No. 2 to Rehabilitation Contract No. 5, with Madison Builders,. Inc., for specification change request at 610 East Ohio Street, for an increase in contract amount of $236.00. Mr. Madison asked, "Can I question the decision in that? Is it okay if I re -open the matter, or leave the matter open for my attorney to get involved in it ?" President Nimtz said, "You have a right to consult your attorney and have him consult Mr. Butler. Surely." Mr. Butler said this can be raised at a later time. "In other words, the matter can be brought up again." - 12 -