New Haven Independent

During a meeting when approximately 20 contracts, ranging from legal fees to janitorial supplies, were reviewed, approved, or tabled for further discussion, the Brookside contract shed light on the Housing Authority of New Haven (HANH)’s processes, which monthly ride herd over dozens of contracts worth hundreds of thousands of dollars.

Derrico asserted that the company that received the contract, DaVinci Development LLC, “is neither qualified to purchase the materials or to install it.” He furthermore asserted to the commissioners that DaVinci’s owner, Todd Howell, had been operating under a number of other company names, had at least a dozen lawsuits pending against him from suppliers who had been stiffed, and Howell, in addition, owed state and federal taxes. Moreover, Derrico charged, that in a previous incarnation, as the Winter Ridge Company, the HANH had had considerable problems in working with them.

Why therefore, Derrico wanted to know, did HANH award DaVinci the contract for its bid of $114,000, whereas Derrico’s Total Fence Company, which came in at $131,000 has a sterling record, is 51 percent minority owned, treats its employees well with paid for health care and 40l(k)? Don’t these matters count? Derrico wanted to know. Don’t they add up to a bidder being if not the lowest at least the most responsible? Moreover, won’t the HANH be at risk in dealing with DaVinci, and was due diligence done?

Here’s the interchange among Board of Commissioners Chairman Robert Solomon, HANH Executive Director Jimmy Miller (pictured), HANH staff and legal counsel Rolan Young as they thrashed the issue out:

Solomon: We’ve just heard some serious public comment about the low bidder. Has staff had a chance to address these issues?
Young: Yes, during diligence we discovered DaVinci owes federal and state taxes, and we requested proof of payment arrangements. DaVinci’s CPA wrote that a letter has been requested from the IRS but will take time to arrive.
Miller: We considered whether the tax liability could potentially interfere with the contracted work, and decided it would not.
Solomon: Some of the charges, the representations we heard, were pretty broad, that DaVinci is a kind of shell company set up to protect assets.
Young: We looked at a number of these issues to be sure the IRS wouldn’t come and swoop in and take money we might award to DaVinci. We feel the necessary letters of assurance will be forthcoming. Regarding shell companies, I don’t have any information that this is the case, and I don’t know the nature of the lawsuits against DaVinci that were referred to.
Miller: We’ve requested a performance bond. And we deliberated about this considerably. My opinion would be different, that is, I would not have considered awarding DaVinci the contract, if the work would be of long duration. But the whole project is to take 30 days. If it were a contract that would take months, and we’d have to make payments over a longer period, that might impede and expose us. I think the risk is his, not ours … We realize DaVinci is in debt. We will set conditions to protect us.
Solomon: Do you feel there’s anything new in the public comments we’ve heard?
Miller: Yes, some of what was said is new.
Solomon: Is the project an emergency?
Miller: Many windows in the Brookside buildings are broken, yes. And it’s near the Ribicoff Cottages. So I would say the work is compelling, but, no, not an emergency.
Solomon: In that case, here’s what I think: All bidders have a right to be considered seriously and the process needs to be transparent. Especially in the light of the trouble we’ve had with Winter Ridge in the past, I suggest we table this proposal for two weeks, and set up a meeting devoted specifically to review this proposal. In the interim, staff is directed to address any unaddressed issues.

The motion passed. Was Derrico satisfied?

“I think Mr. Miller ought to be more concerned with the integrity of the people who are hired do the work,” Derrico said. “The other commissioners get it.”

Reverend Boise Kimber, who also addressed the commissioners in the public comment section of the meeting, said he is also concerned about whether the bidding process is accessible to all.

Kimber asked if the commissioners ever considered having their meetings, such as this one, out in the community, at one of the HANH sites. Bob Solomon assured him that this had been done.

“Please consider how the HANH operates in the publication of work and the receipt of bids. There has to be a better way,” Kimber suggested to the board, including its newest member, Ilona Leffingwell (on the left, with Commissioner Louise Pearsall), “so that the same project does not have to be bid out two or three times.”

“Point taken,” said Solomon. “I know it is of interest to you to include minority and local businesses.”

“Yes,” said Kimber, “but I’m not speaking only for myself. I think I speak for those disenfranchised who can’t speak because they don’t understand or have access to the HANH bidding process.”