School board rejects disaster recovery choice

Published 12:00 am Saturday, December 8, 2012

By Richard Meek
Contributing Writer

RESERVE – Concerns surrounding the evaluation process resulted in the St. John the Baptist Parish School Board delaying a vote on the awarding of the district’s Disaster Recovery Management contract during a meeting Thursday night.

Initially it appeared CSRS of Baton Rouge, which has had two previous contracts with the school district post-Hurricane Katrina and is currently working on what amounts to an interim contract in the post-Hurricane Isaac recovery, would be awarded the contract. Damages to the structures in the district have been estimated by CSRS to be $44.5 million, at least 75 percent of which school officials are hoping to get FEMA reimbursement.

But questions raised by a representative of a minority-owned business domiciled in Lutcher as well as objections by some board members during a long and at times acrimonious discussion created enough of a doubt in board members’ minds to not only delay the vote but to restart the entire process.

“I think the selection process was flawed,” said board member Russ Wise. “I’m going to say we need to broaden our scope. The short version is to start all over again.”

Interim Superintendent Herbert Smith and Executive Director of Business and Finance Felix Boughton initially formed a selection committee of four members to evaluate the bids received. Seven of the 14 companies that originally requested information submitted bids.

Boughton said the committee included himself, Peter Montz, director of purchasing/facilities for the school district, Jerry Means, a project manager at NALCO, and Henry Friloux, who was recommended by the River Region Chamber of Commerce.

Boughton said a point system was developed for evaluation, and he asked an auditing firm to tally the scores, which showed CSRS with the highest point total.

Boughton added two members of the parish finance committee voted to recommend CSRS to the board, and two voted against the firm, which has come under some heat because of construction issues at West St. John Elementary School and LaPlace Elementary. CSRS oversaw construction of both of those schools.

Three of the four selection committee members gave CSRS the highest score of 100.

“That shows you how strong a candidate CSRS is,” Boughton said, adding that FEMA insists an objective process is established for evaluation. Otherwise, the district could run the risk of receiving no FEMA funding.

But several people spoke on behalf of the Lutcher firm of HGI Environmental Services, which is a minority owned business. HGI Chairman Larry Oney said the company is the most qualified, pointing out the State of Louisiana has entrusted the firm to manage $750 million of FEMA funds.

Oney objected to Wise’s motion and asked the board to hire HGI on Thursday night.

“This board has the ability to do justice, and we are asking for that,” said Oney. “We are qualified. We are local. If someone has the courage to do it, maybe someone on the board will make a motion (to hire HGI).”

Eliza Eugene, program manager for the Ambassador Program for St. John Parish, said the parish has lost at least 15 businesses since Hurricane Isaac. She also heavily criticized CSRS for its hiring practices and use of contractors in the previous construction projects.

“Can someone give me some stats on what local participation did they have?” Eugene said. “I am literally offended and embarrassed.

“At the end of the day there is some bleeding going on in this parish. Our businesses are in need of help.”

Supporting local businesses was also a recurring theme among board members, the most vocal being Rodney Nicholas.

“This is a unique opportunity to award a contract to a local and minority business,” he said.  “Now we have a chance to award the contract to one of our own.”

In the Request for Qualifications contract there is a clause saying participation by “minority and women-owned business” is encouraged.

But Wise said neither the race nor the gender of the owner of the company will ultimately influence his decision.

“My job here is (to assure) we get the best bang for the buck than it is to decide if a company is local or not,” he said. “On my scale of importance it is way down, below qualifications, cost and whether or not they have the background or experience we need for a project.”

Board member Albert Burl III suggested each board member nominate a representative from his or her district to sit on what will be a newly formed committee. That committee will review the bids, although it is unclear if the contract will be advertised again or if the current bids will be reviewed.

That committee will then make a recommendation to the board as to what firm is best qualified to oversee the projects.

Wise’s motion passed 7-3, with Board President Patrick Sanders, Burl and Russell Jack dissenting.

The district could be eligible to receive up to 75 percent of the estimated $44.5 million in damages from estimated. The district’s share would be 25 percent, or close to $11 million, which could be paid with funds from an $11.6 million bond, the board authorized Thursday night.

Oney refused comment during a break in the meeting.

CSRS representative Frank LaCourse said he was not surprised by the board’s actions.

“We are going to back through the process again,” he said later. “I’m optimistic we are the most qualified firm in the state and in most of the country.”

He said his company is managing $3.5 billion of FEMA funds resulting from Katrina, with $2 billion for flooded schools. CSRS is managing funds for the Orleans and Recovery school districts.