MWH in Los Osos – Unanswered Questions

■ September 1999. The original project management contract between the LOCSD and MWH, discovered in December 2005, was signed by future (but not then) GM Bruce Buel. It wasn’t signed by Interim GM Paavo Ogren or by the Board President. The backdated contract, authorized by Buel, who was not employed by the LOCSD at the time the contract was implemented, was amended several times for millions of dollars.

■ 1999-2005. Two original contracts between the LOCSD and MWH were both amended several times each, with millions of dollars in unscoped work added to the original project costs. All additional work was sole-sourced to MWH.

■ 2001 Project Report and Final EIR. MWH Project Report determines that an out-of-town project is cheaper, and FEIR finds it environmentally preferred. MWH's conclusions about “cheaper-out-of-town" were not disclosed in the FEIR, dividing the town over the project and location. MWH's design disposal rate information for the Broderson site caused numerous professional, legal and permit challenges based on dubious engineering decisions and accounting practices that proved very costly for citizens.

■ Spring 2005. Project bids for three separate elements of the construction of the wastewater project came in 40%-57% above MWH professional Engineers Estimates.

■ Spring 2005. The largest amendment made to the MWH design contract was for Construction Management Services. The amount was for $7.48 million -- more than $10,000 a day (for a staff of only five), and it was based on a percentage of the higher bids that came in. There was no competition. This was a sole-sourced contract (on a 3-2 LOCSD vote), and the decision was primarily based on advice received from MWH who stood to directly benefit from their own recommendations to the LOCSD board.

■ Summer 2005. Aiming to save their lucrative contract with the LOCSD, MWH makes $10,000 donation to “Save the Dream,” a political campaign group organized to fight against the recall of three LOCSD board directors.

■ Fall 2005. In November 19, 2005, there was a "break-in" and robbery of the MWH offices at Sunnyside School in Los Osos. This occurred shortly after the successful recall of three member majority of the old board. Reported stolen: computers and files from the Los Osos Wastewater Project.

■ Fall 2005. LOCSD passes several resolutions and requests for a formal investigation of MWH contracts and false claims.

■ Winter 2005. Letter to DA and False Claims complaint filed against MWH detail all irregularities with the first and subsequent contracts and amendments. DA acknowledges illegality of contract between MWH and LOCSD but doesn’t prosecute. Complaint goes to AG. Results pending due to bankruptcy.

■ Winter 2005. Formal complaint filed against MWH with Construction Management Association of the Americas, describing allegations, contract irregularities and conflict of interest. Investigation still active and pending due to MWH lawsuits against LOCSD in bankruptcy.

■ Spring 2006. MWH sues LOCSD. Still active due to bankruptcy.

■ Spring 2006. Court audit reveals that MWH was improperly paid out of SRF funds in the fall of 2005. These funds had been mandated to reimburse the district for borrowed project monies, not to pay consultants.

■ Fall 2006. County Public Works Director Paavo Ogren requests that LOCSD Board release MWH so that County can hire them. LOCSD refuses due to lawsuits and false claims in bankruptcy and offers to provide all MWH design work to the County. Ogren tells LOCSD that he "hired them anyhow.”

■ Winter 2006. Carollo’s Scope of Work with County for wastewater project lists MWH as subconsultants.

■ Spring 2009. County BOS announces that MWH collection design will be incorporated into the design build process in order to save time.

■ Spring 2009. MWH selected for County short list for both collection system and treatment facility, listed as first choice. SLO County also chooses previous MWH collection design and incorporates this work into the design process.

■ Spring 2009. Design/build code appears to disqualify MWH from short list due to use of their design products and their assistance to the County and Carollo. Explained County Project Engineer John Waddell: “MWH was not retained by the county to assist in the development of project specific documents related to the design-build process and is eligible to submit a design-build proposal under Section 20133.”

■ Spring 2009. Formal complaint is filed with County regarding MWH, submitted by Lisa Schicker, LOCSD President and Board Member 2004-2008.

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