Opinion ID: 3049934
Heading Depth: 2
Heading Rank: 1

Heading: Swann Helps Contractor-Defendants

Text: JCESD Director Jack Swann reported directly to Commissioner McNair. It was Swann’s responsibility to implement the EPA consent decree, which included recommending engineering firms to McNair and negotiating the scope and price of 22 For example, in the Swann trial, the government presented evidence about how RAST bought Barber a piece of land. This evidence is outlined later in this opinion under the Barber trial evidence. Defendant Barber pled guilty to this charge. 29 no-bid engineering contracts, such as with FWDE. Swann supervised the sewer work and made recommendations to McNair for payment approvals and change orders. Swann also was able to grant time extensions and field directives that greatly benefitted RAST and PUGH. For example, in May 1998, the JCESD awarded the Vestavia Trunk Sewer Replacement project to PUGH. PUGH’s failure to meet the project’s May 17, 2000 completion date would trigger a liquidated damages clause, obligating PUGH to pay $1,000 per day. In March 2000, PUGH was running far behind schedule on this project and requested a 120-day extension to the May 17 completion date. Swann initially denied PUGH’s request. On June 13, 2000, PUGH renewed its request, this time for a 180-day extension. On July 10 — five days after PUGH’s Yessick hired Guthrie Landscaping (“Guthrie”) to landscape Swann’s property — Swann granted PUGH’s request for a 180-day extension to the May 17 completion date. Swann’s extension saved PUGH $180,000 in potential liquidated damages. In July 2000, the JCESD awarded the Valley Creek Trunk Relief Tunnel project (designed by FWDE) to RAST and its joint venture partner W.L. Hailey. In December 2001, during the first phase of the project, RAST’s tunnel-boring machine became stuck in the ground. An independent engineer concluded the 30 machine became stuck because RAST may have discounted certain information in a geotechnical survey. And the JCESD’s supervising engineer faulted RAST for using “the wrong machine.” Nevertheless, Swann authorized RAST to remove the machine at a cost of $2.6 million to Jefferson County. Further, Swann declined to invoke the performance bond against RAST, which would have guaranteed the project’s completion at the original contract price of $27.8 million. Instead, RAST won a re-bid for an additional contract worth $23.8 million. Consequently, the County effectively paid RAST over $50 million for work RAST was obligated to perform under the original $27.8 million contract. Swann also approved a lucrative field directive that benefitted PUGH ($827,417) and three that benefitted RAST ($2,020,367). Although in the County’s internal accounting system Swann recorded the County’s payments to the RAST-Hailey joint venture for each of these field directives as payments for the Valley Creek Tunnel Relief project, none of the field directives involved work on that project. Swann also exercised great influence over the selection of engineers, like FWDE.