Councilmen Orozco and White Continue the Question the Validity of Contract and Company.
By: Libi Uremovic | Original Article at patch.com
Orozco: On the original contract it lists particular CFDs that you’ll be working on.
Steiner: Not CFDs, Improvement Areas. The Bond Issues. It lists the Bond Issues.
Orozco: In the contract?
Steiner: As part of the contract, yes. I think it’s one of the exhibits in the contract or the engagement letter that I provided.
Orozco: Have you worked on any areas that are not listed on the contract?
Steiner: Areas? You mean Improvement Areas?
Orozco: Improvement Areas, yea.
Orozco: To focus on where I’m going here; we’re paying you through CFDs for assessments, right? We’re using CFD funds, Improvement Area funds. That portion for administration and accountability, or are these funds coming out of the General Fund?
245:00 Kapanicas: These are CFD funds. CFDs uprights itself along small business, so yea. And it’s coming out of Administration Fees.
246:00 Orozco: For example: Meeting with Kyle, engineering updates, AECON project review. This is one particular one: Discussion with Kishen and updates on UV Validation Status. I had asked Kyle, maybe it was Deepak [Moorjani] because I saw him here last week. That’s through Title 22 funding? What does that have to do with CFDs?
Steiner: That was engineering oversight. Our job card that Deepak was working on.
Orozco: What does that have to do with CFDs? Accounting for CFDs? The UV Validation Status? That has to do with the lights at the water treatment plant.
247:00 Kapanicas: I’m not sure on this one, but it could be it has to do with; CFDs have done their ‘fair share’ of the sewer plant. Sewer facilities are CFD acceptable facility. I do know the increase on the original solar plan, which is AECON. Some of that would have been paid with CFD funds to actually lower the operations cost, but be their upgrade cost on … CFDs can build facilities 5 years or longer. Sewer facilities have been funded with CFD funds.
Orozco: So she was basically working for a future project that’s going to be done. But that’s not accounting, that’s formation or planning.
Kapanicas: Correct. And I think the 2nd job card is for future CFD facilities to make sure they meet that requirement.
White: While you’re going there Mr. Kapanicas; “Phone calls to Andy, Kyle, an Karl on recycled water in Morongo? That applies here?
248:00 Kapanicas: My understanding it’s one of the requirements for some of the improvements up in the Fairway Canyon area could be reclaimed water could be paid with the CFD funds. Their credits either as a fee or ..
White: But I thought that she was auditing funds to determine where the money has gone and whether or not the projects have been completed that they’re supposed to complete.
Kapanicas: The 2nd job card you have goes to future projects.
White: This is on task order #1?
249:00 Orozco: I called and had discussions with Kieran [McKiernan] about grave engineering issues on various projects. I asked: “Do you work with Steiner Group?”.
“I never receive a phone call from Steiner Group. I don’t work with Steiner Group. I never received calls in regards to this.”
Orozco: Structural Review on Tesle Design. That’s a future project, isn’t it?
Kapanicas: I have no clue. You’re ahead of me on that.
250:00 Steiner: I have an answer for that. This was in particular to see if a design was in conformance similar to Marshall Creek and Noble Creek projects. Moorjani was performing the work. This is in regards to the recycled water.
Orozco: So he was doing that work for that under your contract, not under Urban Logic?
Steiner: In that point in time he was doing the work for us.
Orozco: That’s my next thing. What I’ve been hearing is that ULC was charging for that same work and Steiner Group, now you’re telling me. I see this as two different job cards.
Steiner: We do have two different job cards.
Orozco: So you’re working on this and he’s working on this?
Steiner: I can not answer for what ULC was doing for them.
254:00 Steiner: You also have to understand that part of; there’s certain projects that I was involved in that were not part of the task order, per se. Part of it is continuing disclosure that we prepared. This was a very complicated process and we spent quite a bit of time doing it.
256:20 Orozco: Is that why we see work was done that was not included. She just mentioned that she was asked to do work that was not on the job card.
Kapanicas: Yes. It would have been what I considered part of the job card, but it was a continuation of the work we needed for the continuing disclosure. The requirement that each one of these sheets be uniform through all 28. That’s the sheets that you’re looking at. Semantics aside; it was what it would have been. In essence we could have pulled this off the final report and create them and said that we had to create this first.
257:00 White: Why not contract directly with Land Metrics? It appears that all Ms. Steiner has done is graphic art work. We haven’t paid her as a Principal at any point, so why do we need Ms. Steiner?
Steiner: You have paid me as an Associate. $65 per hour.
White: Yes, but not as a Principal, as an Associate. What I’m saying is why wouldn’t we go to Land Metrics? Why would we need to go through the Steiner Group to pay Land Metrics?
Kapanicas: That I’ll have to turn back over to Steiner. The work she was to do with anyone she wants to consult with. She has been doing the financial engineering on whether to bring you back in uniform report where all the funds were spent to get you the grand total. That’s what the Council in August requested. And part of that is to figure out how the money was spent in the future and I think it was
White: And who referred you to Land Metrics? Where under the impression that design compliance fell under your services that Steiner Group offers?
Steiner: Design compliance?
White: Yes, you said that Deepak Moorjani had done some design compliance.
Steiner: He was just doing oversight on some of the CFD related facilities.
White: Why is your original address was in Glendale?
Steiner: I used to live in Glendale.
White: How long ago did you live in Glendale?
259:00 Steiner: We moved back to Orange County in December or January.
White: Because that was a mailbox store in Glendale, right?
Steiner: I’m a small company. All I’m charging the City is $65/hr is because I don’t really have that much overhead. I’m trying to keep a small business.
White: Mr. Orozco and I may have different directions, but my major concerns is that it doesn’t make sense why we’re doing it this way. Mr. Wysocki: Do you believe the contract has been followed as designed and agreed to including where the contractor or position as a partner to the contract; did they follow the contract even when we’re talking about telling us who’s doing the work?
260:00 Wysocki: I’m looking at the contract right now and 4.05 on the compensation does require that the invoices that the contractor submits includes the identity of individuals performing the services.
White: The one reason I ask to bring it back was to give you time to look that part over and would you say they have followed that part of the contract?
Wysocki: No it hasn’t been. Technically they’re supposed to list the identity of the individuals working on the project, on the invoices that they submit to the City.
White: Are you comfortable with us continuing to do work with Steiner Group?
261:00 Wysocki: If she is performing qualitative substantive work. The fact that she didn’t dot all the i’s and cross all the t’s doesn’t overly concern me.
White: So you are comfortable moving forward with the Steiner Group?
Wysocki: I can’t evaluate the quality of the work product. That has to come from others on the Staff.
Orozco: If the majority of Council feels that we are uncomfortable or no longer, according to the contract. We have means to cancel the contract, right?
261:30 Wysocki: You don’t have to have a reason. You have the right; three or more of you have the right to terminate the contract on 20 days’ written notice.
White: I move that we terminate the contract.
Orozco: I’ll second that.