A Neosho city council member is saying that the city should have gone out for bids before entering a lease-purchase agreement to replace nearly $59,000 in office furniture damaged by water and mold at city hall.
Meanwhile, a city official said he was authorized by the city council to buy the furniture under an emergency clause as part of the mold remediation work at city hall.
Council member Heather Bowers said the city should have sought bids before signing a lease-purchase agreement with Steelcase Financial Services Inc. to replace desks, chairs and other furnishings at Neosho City Hall.
Bowers told the Daily News that City Manager Jan Blase signed the lease purchase agreement in late June, with Steelcase issuing a master lease agreement on June 30, a full week before a measure authorizing the city of Neosho to enter into the agreement was presented to the city council on July 7.
But Blase told the Daily News that he was given authorization to replace the furniture by the city council under an emergency measure, but added he could not remember the date that authorization was given.
“I was given permission by a full council to proceed under emergency procedures,” Blase said. “I could either proceed along with my best judgment or I could do diligence and do the best I could.”
Blase said he went with Howsmon’s, a Joplin office supplies store, as the city has purchased items from them and company President John Howsmon in the past “and they have always done right by us. He said Steelcase offered the best furniture for the price, a 50/50 mix of new and used furniture, and he was able to obtain the furniture at the state bid price, which saved the city money. The agreement is for up to $58,842.90, to be paid over a five-year period with the city owning the furniture at the end of the agreement.
“I could have gone out and bought particle board [furniture], but it’s not sturdy and it’s not ergonomic,” Blase said. “I want to emphasize that I was given approval by five council members — all five of the council voted for that — and if she [Bowers] has a problem with that, then too bad.”
The issue may again come before the council on Tuesday for second and final readings.
“There is a high possibility that it will pass, but there is still time to do some more discussing,” said Neosho Mayor Jeff Werneke.
Werneke said City Attorney Steve Hays has been trying to contact attorneys for Steelcase to fine-tune the lease purchase agreement. However, the company’s attorney has been out for the past week, Werneke said, and it may be August before the issue goes back to the council.
“It may or may not be ready on the 21st,” Werneke said. “These changes, for example, include the requirement to carry $1 million worth of liability insurance and another one is the sales tax, as it doesn’t apply.”
The furniture is related to the mold remediation project going on at city hall, Werneke said. At a September 2008 city council meeting, Blase was authorized to enter into a contract with General Design and Restoration Inc. for renovations to the interior and exterior of Neosho City Hall for mold abatement. Carpeting, floor and ceiling tiles, wallboard and wallpaper have been removed from city hall because of mold issues.
Blase also said office furnishings and desks were damaged by moisture and mold. As some of these articles are of particle board construction, they could not survive being moved and reassembled, making the purchase of new and used furnishings necessary to alleviate mold issues.
In a recent interview with the Daily News, Blase said the mold issue was a health concern for employees, as many were complaining of headaches and some had suffered nosebleeds. The situation improved once items containing mold were removed from the building and air purifiers and filters installed in offices and the lobby.
The mold remediation project is covered by the city’s insurance carrier, Blase said.
Neosho, Mo. —
