Crack msd agenda

The auditors said some of the moves can be justified, but their review found several areas of concern. Repeatedly extended the contracts of companies under master service agreements, rather than giving others a chance to bid for the work. The Enquirer found that some of those companies ended up doing millions of dollars of additional work that often was unrelated to their original contracts.

Allowed consultants to recommend the hiring of other contractors and to do performance reviews of full-time MSD staff.

The auditors said the agency relied too heavily on consultants, creating conflicts of interest and unnecessary spending. Failed to closely follow federal rules for acquiring property related to a sewer reconstruction project in South Fairmount, where MSD purchased dozens of homes to clear the way for the project.

The auditors said those mistakes could "jeopardize future eligibility for state and federal funding. Malone, who is not a lawyer, did not do legal work and should not have been hired under such a contract, auditors said. Used money from ratepayers to start and maintain a private foundation that benefited MSD's student intern academy, a summer program that brought in hundreds of high school students for job training and to teach life skills, such as balancing a check book.

The Enquirer found hundreds of thousands of dollars were diverted to the foundation. The private foundation, known as the Project Rebuild Foundation, was especially troublesome, the auditors said. All three of the foundation's trustees, Parrott, Biju George and Margie Anderson, worked at MSD as administrators, an arrangement the auditors say should be stopped immediately because of possible conflicts of interest.

They also noted that some contractors helped the foundation with its fundraising efforts, either by sponsoring student interns or hosting events.

They found draft letters from Parrott to contractors thanking them for their contributions, and they cited a "partnership appreciation hour" hosted by Kokosing Construction Co. The auditors questioned whether it was appropriate for a city employee to solicit contributions and recommended that the city refer the matter to the Ohio Ethics Commission.

They also said the ethics commission should determine whether some of the interns who got summer jobs had ties to city employees. Overall, the auditors said, the student intern academy offered uncertain benefits at a high cost to ratepayers. It also was a distraction to MSD staff at a time when they were struggling to meet the demands of the court-ordered sewer overhaul.

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