Chief Financial Officer Alex Sink has stopped payments on more than $250,000 in art work and called Tuesday for the Florida Supreme Court and governor’s inspector general to further investigate failings revealed in a sweeping audit of Tallahassee’s First District Court of Appeal building.
Sink said a “perfect storm” of wrongdoing helped run the project – which she dubbed the Taj Mahal – to $48.8 million, about $17 million more than initial estimates.
The courthouse, which she said includes 20 miles worth of imported African mahogany, granite countertops and other luxury fixtures, has become a “travesty” because of a lack of oversight by the state Department of Management Services and bullying by appeals court judges – particularly chief Judge Paul Hawkes, Sink said.
The 47-page audit by Sink’s office included 17 findings of actions that she said are inconsistent with state rules and internal controls. While she said no potential criminal wrongdoing was revealed, a possible state ethics violation could be involved stemming from a $12,800 chartered flight to Michigan for Hawkes, Judge Brad Thomas, Judge James Wolf and other courthouse employees, which was apparently paid by the courthouse’s contractor and likely included in the project’s price.
“What stands out to me is the appalling lack of leadership by the responsible parties and the fact that no one was standing up to say `what about the taxpayers?'” Sink said.
The report also concludes that Hawkes, a former legislator and advisor in Gov. Jeb Bush’s office, and Thomas, also an advisor to Bush, lobbied the Legislature hard for funding the project, which was approved and financed over a five-year span.
Sink’s office began the audit Aug. 30, prompted by a St. Petersburg Times story that raised questions about the cost and steps taken by lawmakers and judges leading to construction of the 110,000 square foot building. She released the findings Tuesday – three weeks before voters go to the polls in the Florida governor’s race in which Sink, a Democrat, faces Republican Rick Scott.
A DMS spokeswoman said the agency was still reviewing the audit’s findings and was cooperating with Sink’s office. Hawkes did not return phone calls from the News Service of Florida, but the First DCA issued a statement defending the now almost completed project.
“We have not had an opportunity to fully review the audit report,” the court said. “However, the design and construction of the new courthouse are the result of a five-year process, involving hundreds of planning decisions and numerous studies by independent consultants.”
The First DCA statement also insisted it “did not and could not legally assert control of the project, but was appropriately consulted by (DMS) throughout the process.” The court also said it expects to return close to $1 million to the state treasury when the project is finished in coming weeks.
In releasing the audit, Sink said she was limited in taking action against those involved in the courthouse construction. Nothing in the audit revealed illegal payments or a direct violation of state spending authority, she said.
Sink was, however, stopping payments on more than $250,000 in art work planned for the courthouse – spending that topped a $100,000 limit set by state law. Sink said contractors sought to sidestep the limit by labeling the art “wall coverings.”
“I wish I had the chance to reject payments for even more,” Sink said. “But this clearly is an illegal payment. I can’t help but wonder in these tough economic times, how many people are actually setting up wallpaper in their houses when painted dry wall might work. It’s pretty disgusting.”
DMS also skirted state law by failing to seek competitive bidding on the project, instead directing contractor Peter R. Brown Construction, Inc., to begin work three months before setting a guaranteed maximum price, Sink said. Auditors also found the agency had okayed $6.6 million for construction by then and approved spending requests before contract terms were in writing.
Such actions, “greatly diminished the state’s ability to effectively negotiate a price most favorable to the state,” auditors said.
Sink said the audit also revealed that Hawkes, the First DCA chief judge, effectively became the contract manager for the project.
“In addition, documentation such as DMS payment vouchers submitted to auditing listed Judge Hawkes of the First DCA as the agency contact person if there were questions or concerns regarding the contract,” auditors wrote.
With the court directing construction and larding on costly improvements, the per-square-foot cost of the courthouse soared to $425, compared with $250-per-square-foot at the neighboring Departement of Revenue building in Tallahassee’s Southwood complex, auditors said.
Taxpayers also were left on the hook, auditors found, when DMS authorized a state-approved sales-tax exemption for material used in the project. But instead of reducing the overall price tag of the courthouse, auditors found that contractors used the $589,000 tax-break to cover other project costs.
By John Kennedy
The News Service of Florida
