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1988-03-21 Special Meeting ~ 95 MINUTES OF SPECIAL MEETING, MARCH 21, 1988 ASSEMBLY The New Hanover County Board of Commissioners met in a Special Joint Session with the New Hanover Memorial Hospital Board of Trustees on Monday, March 21, 1988, at 7:00 o'clock P.M. in the Assembly Room of the New Hanover County Administration Building, 320 Chestnut Street, Wilmington, North Carolina. I Chairman Dolan called the Special Session to order stating the purpose of the meeting was to discuss the final Hospital Report concerning the bidding violation by the hospital when renovating the Cardiac Surgery Facility. DISCUSSION OF FINAL REPORT SUBMITTED BY THE REVIEW COMMITTEE OF THE BOARD OF TRUSTEES OF NEW HANOVER MEMORIAL HOSPITAL - RENOVATION WORK - CARDIAC SURGERY FACILITY Mr. James M. Parker, Chairman of the New Hanover Memorial Hospital Board of Trustees, expressed appreciation to the County Commissioners for an opportunity to discuss the final report and findings of the Review Committee with reference to the bidding violation which occurred during Cardiac Surgery Renovation work at the hospital. He introduced the following members of the Review Committee including himself: Mr. H. J. "Jay" Quinn Dr. James B. Sloan Mr. J. W. Summey, III Mr. Peter R. Davis Mr. Michael G. Haas I Mr. Parker commented on the final Hospital Report submitted by the Review Committee stating the circumstances surrounding the bidding violation have been thoroughly investigated and the Committee is satisfied with the conclusion. He apologized for the unintentional error stating a new Public Bidding and Accountability Policy has been adopted for future hospital construction work to ensure this type of situation does not reoccur. Mr. Parker stated the Hospital Administration is primarily responsible for failing to comply with the State bidding law; however, the Hospital Board of Trustees must also share responsibility for administrative omissions. Commissioner Barfield asked if action has been taken against persons involved in the bidding violation. Mr. Parker stated appropriate personnel action has been taken; however, due to this being a personnel matter, discussion should be held in Executive Session. Commissioner Barfield expressed concern for convening to Executive Session stating this issue must be addressed and answered in a satisfactory manner to properly inform the ci tizens of the County, which is his opinion, is not in Executive Session. I After further discussion of properly investigating violation, Commissioner Retchin recommended forwarding report to the Attorney General for an opinion determination of action, if any, to be taken. the the and Vice-Chairman O'Neal stated as a representative of the County Commissioners serving on the Hospital Board of Trustees, he was impressed with the time and study given by the Review Committee and Trustees in preparing the report, and the manner in which the Commissioners and news media were informed upon discovery of the problem. He also commented on the initial report which was forwarded to the Attorney General's office with the response that the matter should be handled locally with advice and counsel of the County ~ '96 MINUTES OF SPECIAL MEETING, MARCH 21, 1988 (CONTINUED) Attorney and Hospital Attorney stating he did not feel it was necessary to forward the report a second time. Chairman Dolan stated when the initial report was forwarded to the Attorney General's office, they were not aware that New Hanover Memorial Hospital was a public hospital; therefore, no opinion was rendered. He commented on the report stating unfortunately major issues were not addressed, particularly with reference to answering questions as to why the state bidding law was broken, which hospital employees were involved in the violation, and was the act intentional? He commented on the moral II responsibility of the County Commissioners to thoroughly investigate this bidding violation through review by the proper authority stating the citizens of the County deserve an answer and assurance that violations of this type cannot reoccur. He recommended turning the report over the District Attorney and Attorney General. After further discussion of the report, Commissioner Retchin stated the facts surrounding the incident are well spelled out in the Hospital Report urging that the document be forwarded to the Attorney General's Office stating the Attorney General can determine if further action should be taken. Commissioner Corbett reminded the Commissioners that this Special Meeting was scheduled for the purpose of discussing the bidding violation with the Hospital Trustees, and that he, for one, would like to discuss the issue in Open or Executive Session before forwarding the report to an investigative authority. Commissioner Corbett requested an explanation on advice gi ven by the Hospital Attorney, and if this advice was followed by the Hospital Administration? Mr. Parker stated II Mr. Dumay Gorham, the Hospital Attorney, was approached by three members of the Hospital Staff to discuss the issue of bidding the project separately and within the state bidding law. During this conversation, there was a misunderstanding between the words, "projects" and "contracts", with the Attorney stating the job could be separated into four separate projects if supported by the architect and engineers. Members of the Hospital Staff misinterpreted the wording and approached the engineer with dividing the project into four separate contracts, instead of projects, in the amount of $50,000 each which is in violation of the bidding law requiring contracts not to exceed $30,000. Commissioner Corbett questioned the dismissal of Mr. Anthony C. Aretakis, the original architect. Mr. Parker stated he felt Mr. Aretakis was not dismissed and requested Dr. James B. Sloan to discuss this matter. Dr. Sloan commented on the project beginning at $30,000 and growing to $280,000 including renovation to other areas contiguous to the Operating Room. He stated Mr. Aretakis agreed to perform architectural design consulting services for renovation of Operating Room #6 only and as the project grew, the scope of services and responsibilities increased. Discussion was held with Mr. Aretakis on the new scope of services with Mr. Aretakis recommending that all renovation work required be consolidated and bid as a complete package in accordance with the State bidding law. Dr. Sloan stated after a decision by the Hospital Administration to "fast track" the project instead of preparing a bid package, he asked Mr. Aretakis, if this was the main reason for his resignation with Mr. Aretakis stating he was more concerned that a contract had not been prepared to include the new scope of services. r ~/ Mr. Jay Parker referenced the letter of June 30, 1987, written by Mr. Aretakis expressing concern for seven issues I ~ MINUTES OF SPECIAL MEETING, MARCH 21, 1988 (CONTINUED) 97 ~ requesting a response from the Hospital stating he felt his leaving the project agreement between the Planning Committee and Staff. Administration was a mutual Administrative I Commissioner Barfield asked proceed with the proj ect without Parker stated after the meeting Attorney, Planning Committee, and Staff, it was the consensus of procedure was within the bidding law Staff issuing authority to proceed. who gave authority to letting for bids. Mr. held with the Hospital Hospital Administrative all present that the with the Administrative Commissioner Retchin expressed concern for issuance of Work Orders in large sums of money without the signing of contracts, asking Mr. Parker if this was normal procedure by the Hospital Administration. Mr. Parker stated issuance of Work Orders without executed contracts is not a normal procedure of the Hospital and requested Mr. James Summey to address the question. Mr. Summey stated considerable discussion was held on proper bidding procedures and the contract with the difficulty being that no designed scope of service was available for preparing fixed fees. He stated no one conceived how the project would grow and the entire process was one of learning. I Vice-Chairman O'Neal stated the Hospital Board of Trustees and Administrative Staff have acknowledged their error and have corrected the situation by writing new guidelines and procedures governing hospital construction work to prevent any repetition of this nature and have also taken appropriate personnel action concerning employees involved. He asked what more can the Trustees do to rectify the situation? Mr. Peter Davis, a Hospital Trustee, commented on the report stating no criminal actions intentionally occurred emphasizing the growth of the project and scope of work. He urged all persons present to put this issue aside and continue to provide a high quality medical facility for the citizens of the County. After a lengthy discussion on the bidding violation and actions taken, Chairman Dolan stated, for the record, he is very proud of the hospital facility and medical staff; however, when a law is broken, it must be properly addressed by the proper agency. Discussion was held on calling an Executive Session. Commissioner Corbett MOVED to convene to Executive Session to discuss the personnel action taken by the Hospital Trustees. The floor was opened for discussion. After discussion of not being able to inform the public of personnel action taken by the Hospital Board, Commissioner Corbett WITHDREW HIS MOTION. I After further discussion, Commissioner Retchin MOVED, SECONDED by Commissioner Barfield to forward the report to the Attorney General's Office for an opinion on what action is necessary or whatever procedure they deem necessary. Chairman Dolan MADE A SUBSTITUTE MOTION, SECONDED by Commissioner Corbett to forward the report to the Attorney General's office and to the District Attorney for investigation and review. Commissioner Retchin stated the Attorney General's office would involve the District Attorney if he deemed this action was necessary. .... 98 MINUTES OF SPECIAL MEETING, MARCH 21, 1988 (CONTINUED) Vice-Chairman O'Neal requested an amendment to Commissioner Retchin' s MOTION to include acceptance of the document. Commissioner Retchin AMENDED his MOTION, SECONDED by Commissioner Barfield to accept the Hospital Report as presented and forward the document to the Attorney General's office with this office determining if the report should be forwarded to the District Attorney's office. The County Attorney is to write an accompanying letter addressing concerns of the Commissioners. Chairman Dolan called for a vote on the MOTION to forward the report to the Attorney office and District Attorney's office. Upon MOTION DID NOT CARRY AS FOLLOWS: SUBSTITUTE General's vote, the o Voting Aye: Chairman Dolan voting Noe: Commissioner Barfield Commissioner Corbett Commissioner Retchin Vice-Chairman O'Neal Chairman Dolan called for a vote on the AMENDED MOTION by Commissioner Retchin. Upon vote, the MOTION CARRIED AS FOLLOWS: Voting Aye: Commissioner Barfield Commissioner Corbett Commissioner Retchin Vice-Chairman O'Neal Voting Noe: Chairman Dolan ADJOURNMENT Commissioner Barfield MOVED, SECONDED by Commissioner 0' Neal to adj ourn. Upon vote, the MOTION CARRIED UNANIMOUSLY. o Chairman Dolan adjourned the meeting at 8: 25 0' clock P.M. Respectfully submitted, ~d;~ Lucie F. Harrell Clerk to the Board [ ~