The Joplin Globe, Jan. 21, 2012
By Kelsey Ryan
The tight timeline Joplin school officials have laid out to rebuild the high school following the May 22 tornado could be jeopardized by contractors clashing over pay and salvage rights to the millions of dollars worth of metal and other material in tornado-damaged schools. Some contractors are threatening lawsuits. Some are being accused of threatening each other.
Joplin police were called in earlier this month following an alleged death threat that prompted the general contractor to consider pulling out of the project altogether. At one point Urban Metropolitan Development, which is responsible for the demolition of three Joplin schools, claims it pulled its workers off the job site at Irving Elementary, citing fears about “gun spray crossfire” from a disgruntled subcontractor.
Mike Johnson, the Joplin school official overseeing demolition, acknowledged that “accusations are flying” between contractors.
So far, the quarreling and allegations have not delayed construction plans, but might if trouble continues, said Joplin Superintendent C.J. Huff. He wants to see students move into the new high school in August of 2014, and that means breaking ground by May. Huff also wants the old high school cleaned up before breaking ground on the new building.
“We’re strapped for time as is,” Huff said recently, “and mediating disputes between subcontractors and contractors, causing a slowdown in day-to-day operations, is the most frustrating thing we’ve had to deal with.”
Urban Metro
In October, Urban Metro, based in Atlanta, was awarded a contract for $155,322 to demolish the high school and a contract for $134,230 to demolish South Middle School by the Joplin Board of Education. In November, it was awarded a contract for $139,260 to demolish Irving.
Under the terms of the contract with the school district, Urban Metro was awarded salvage rights to bricks, metal and anything else of value, according to Johnson, district director of buildings, grounds and transportation. That helped the district keep its costs down. Johnson estimates that the high school alone could have as much as $2 million worth of salvageable copper, steel and other metal.
Urban Metro was given 60 days to take down all three buildings, and the clock started ticking Nov. 29, but provisions for weather delays and holidays could extend that time frame. The company demolished Irving in December, but on Jan. 12, Joplin school board members held a meeting and debated whether to revoke Urban Metro’s contract following delays and disputes.
In the end, the board voted to stay with Urban Metro for two reasons, said Huff: Going with the next lowest bidder would cost the district $500,000 and could bring on further delays, and the Irving work was completed with no environmental violations despite concerns by the district over asbestos in the old school. Those concerns forced the contractor to shut down work briefly on two occasions for asbestos precautions.
As of Thursday, no demolition work has begun at either South or the high school, which are larger projects than Irving.
This is the first time Urban Metro has worked with the district. Huff said last week the district’s hands have been tied with federal procurement guidelines requiring school officials to choose the lowest qualified bidder without regard to whether that bidder is a local contractor. He also said the district did its due diligence in checking Urban Metro’s references provided by the company.
“(We checked) the most recent projects and qualifications, but at the end of the day, it comes to lowest qualified bidder and we have no choice,” Huff said. “We have to go that route or we’re at risk of losing federal dollars.”
Irving salvage
JMC Construction, based in Wheaton, was initially chosen by Urban Metro as the primary subcontractor. JMC also was responsible for hiring other subcontractors to do such work as overseeing environmental compliance and hauling away debris, company officials said. In return, according to its contract with Urban Metro, JMC was entitled to salvage materials as well.
But now JMC officials, along with several other subcontractors, are alleging they have not been compensated by Urban Metro. Some companies are contemplating legal action.
JMC Construction’s owners, Matt Vicory and Josh Brown, say they were interested in working on the demolition because they knew there was a hefty amount of money in the scrap metal as well as other salvageable material, including microscopes, desks, books and electronic items. They also wanted to try to save memorabilia and historic items for the district.
Originally, the plan was to start with demolition of the high school and then to demolish South and Irving so that money raised by selling scrap from the high school would cover JMC’s costs at the smaller schools. That changed when Urban Metro and the district decided to start with the smallest project, Irving, before continuing.
Johnson said this change came about partially because of concerns about asbestos in the buildings and the need for the district to recover more items from the high school, such as irreplaceable sheet music. In order not to be behind schedule, Johnson said Urban pitched the idea of starting with the smallest project first.
The change of plans was disastrous for JMC, Vicory said. It was at that point, he said, that he became concerned Urban Metro was allegedly trying to force them out so it could get all the scrap material for itself.
“Somebody needs to look at the small guys here because we’re getting raked over the coals,” he added.
Vicory also claims that Urban Metro, by directing the demolition, destroyed items that he thought could have been salvaged.
Vicory says he was notified by Urban Metro that their contract was terminated in December, even though he didn’t get the material he was hoping to salvage from that site to cover his costs.
Although Vicory says he is still owed money by Urban Metro, Troy Langley, owner of Urban Metro, in a phone interview would only say that JMC’s “contract has been filled,” but refused to answer any additional questions about the matter.
Other Subcontractors
JMC is not the only company saying it is owed money.
Barry Isaac owns Barry Isaac Trucking, based in Fort Scott, Kan. He alleges Urban Metro won’t pay him, either, saying he was told by Urban officials that they didn’t have to honor his agreement because he was hired by JMC.
Isaac said he has worked on several projects in Joplin since July, including debris removal from Dillons, Fletcher Toyota and St. Mary’s Catholic Church. Isaac said he did not have a written contract with JMC, although he has copies of landfill receipts and an invoice for the $8,600 he believes he’s owed.
“I did it by handshake,” he said.
JMC said it is Urban Metro’s responsibility to pay Isaac; Langley, of Urban Metro, said JMC owes the subcontractors the money.
Another contractor waiting to be paid is Norman Miller, of United Services, based in Pittsburg, Kan. He said he, too, hauled Irving’s debris to a landfill.
Miller said JMC introduced him to Urban Metro’s project manager, Wayne Jones, but that his agreement was with Urban directly, not with JMC. But now, when he calls Urban Metro, he claims officials act as if they don’t know who he is. He believes he’s out between $8,000 to $10,000 for hauling between 500 tons to 600 tons of debris from Irving.
Miller wasn’t optimistic about getting paid and also has given the district his invoice.
“Two years later, you might get their money,” he said.
Also awaiting payment is Family Environmental, of Kansas City, an environmental compliance company that monitors the work to make sure hazards are not released into the air and waste is properly handled for disposal. The company says that if the dispute over pay isn’t resolved in 30 days, it may seek litigation.
“Family Environmental has not been paid and we’re told that is because JMC’s contract has been terminated … they have been told to demobilize and leave the project,” said Family Environmental’s attorney, James Freeman of Swanson Midgley, a law firm in Kansas City.
Family Environmental was hired by JMC but has billed Urban Metro directly. The company has multiple contracts for the demolition work, including contracts on all three of the schools. Freeman said he would not release the amount for the contracts at this time and is giving Urban Metro’s bonding company, American Safety Casualty Insurance Co., also out of Atlanta, a chance to respond.
American Safety referred calls to its general counsel, who said no claims have been filed for Urban Metro’s demolition project in Joplin. He then said he had no further comment.
Although these companies are fighting with Urban Metro over pay, Jim Beachner of JRB Industries, which operates out of the Cherokee Regional Landfill in Galena, Kan., said he has an agreement with Urban Metro and has received four checks from the company so far for his work hauling debris.
“As long as they keep paying, I’ll keep working … Urban has done everything they promised,” he said. “They paid me and have been upfront and we’ve done everything honest.”
The contracts Urban Metro signed with the Joplin School District specify that Urban Metro is responsible for claims made by third parties for payment.
Asked about paying subcontractors, Langley, of Urban Metro, said, “We’re responsible for people who have legitimate claims. We’re not responsible for JMC and their claims if they didn’t pay their (subcontractors) …”
Langley said he was not privy to whether subcontractors have been paid. He repeatedly refused to answer when asked if any other Urban Metro officials would know if the subcontractors had been paid or if his company could provide proof of payment.
He referred that question to the Joplin School District, referenced a “lien waiver,” but when asked why Joplin school officials would have proof of payment to subcontractors, Langley hung up the phone.
Johnson said the district has no records of subs being paid, nor would it.
“The relationship between our general contractor and their subs is not something we get involved in unless it’s disruptive and they’re taking legal action against each other,” Johnson said. He also explained that a “lien waiver” protects the district from having to pay third parties, but it wouldn’t prevent Urban Metro from paying.
“If he doesn’t pay his people, they can’t come to us,” Johnson said. “If he doesn’t pay, it protects us from paying his unpaid bills … He’s responsible for all legitimate third-party claims and if it goes to court, the court determines if it’s price gouging or legitimate.”
Huff said district officials have contacted Urban Metro about the allegations that subs have not been paid.
“It’s certainly one of our concerns and we’re still having conversations with them regarding that particular issue,” Huff said after a recent closed session school board meeting. “But we feel comfortable moving forward with them with what we know at this point … I know there’s been some issues with the subs, but that’s really a problem with the relationship between the subcontractors and the company.”
Johnson said the district also is still waiting to hear who the new primary subcontractor will be that will replace JMC.
‘BULLETS DON’T HAVE NAMES’
Tensions reached such a level that Urban Metro officials at one point claimed they felt compelled to pull out of Joplin for their own safety.
Jennifer Taylor, a project manager from Urban Metro, sent the district an email in January alleging there have been “multiple instances of discrimination and retaliation” by JMC Construction and initially she asked the district to release Urban from its project. However, the company rescinded its request the next day.
The email states that Urban Metro filed reports with the Joplin Police Department and with the Federal Bureau of Investigation over threats.
The email claims that Urban Metro was forced to take Wayne Jones off as its project manager after a death threat was allegedly made outside his hotel by two JMC employees.
“The two came up to Wayne, made a gun motion and said, ‘Pow! You’re dead. Watch your back.’”
Additionally the letter claims the company can no longer insure the safety of its employees and that the employees are in fear of losing their lives: “We can’t guarantee anyone’s safety, bullets don’t have names,” according to the email.
According to the Joplin police report, dated Jan. 6, Jones told the officers that Josh Brown made the threat but that Vicory also was present.
Brown and Vicory have denied the allegations.
FBI agent Stacy Moore, when contacted last week, said she could neither confirm or deny any contact by Urban Metro.
Langley said his focus was on protecting the workers and that the company had to hire other project managers because some were too afraid to return to Joplin.
“We’re going to protect our workers and hire people from Joplin. If we’re going to have to do that with the FBI, then that’s what’s going to be done … (we have) our constitutional right to work.”