OGDENSBURG City Council members eager to part ways with housing administrator C. W. Augustine of DeKalb Junction believe they have caught the company attempting to violate federal procurement regulations.
At a June committee of the whole meeting, James A. ONeill, president of C. W. Augustine, offered to write applications for the the citys 2012-13 housing rehabilitation grants for $4,500 if his firm were guaranteed the right to administer the program. Mr. ONeill said otherwise he would charge the city more.
We will write it at cost if we dont, he said. If we write the grant and are not the administrator, chances are you will not get funded.
That statement appeared to violate state law, said Deputy Mayor Michael D. Morley.
If you dont get administration, you cant have a double standard with your rates, he said. Regulations dont allow consultants to propose to prepare grants and offer reduced costs to administer programs. You cant do it.
The guidelines for the state Community Development Block Grant program prohibit loss-leader arrangements, whereby a business offers goods or services below cost if the purchaser promises to buy something else at or above cost. Loss-leader arrangements also violate U.S. Department of Housing and Urban Development procurement regulations, which require maximum open and free competition.
The block grant funds originate with HUD.
Councilman William D. Hosmer said he expects the council to discuss the matter.
This is something that is going to come up very shortly, he said. It clearly states that you cannot charge different rates for whether or not youre an administrator. Mr. ONeill is supposed to make sure the program follows these guidelines.
Mr. ONeill did not return calls for comment.
Ogdensburg received no housing rehabilitation funding for this year, despite having the second-highest-scored grant application in the region. Mr. ONeill has blamed lack of support from the city and political disarray on the council for the states reluctance to fund the program.
Council members Wayne L. Ashley and Jennifer Stevenson said there is more discussion to be had before the city goes forward with housing rehabilitation for 2012-13. Ms. Stevenson noted that the city agreed to allow Mr. ONeill to write and administer a grant for the 2012 funding awards.
I think theres further discussion that will be had, but we did authorize him to go ahead with the grant, she said. I dont think that decision has changed.
A majority of council members say they are ready to change the direction of the citys housing rehabilitation. This housing program is a joke, Mr. Morley said.
Later this year, Ogdensburg will issue a request for proposals to administer the program.