Court Termination Ramifications Weighed

As the ink dries on City Manager Beverly Cameron's contractual signature with the opponents of the project say they will make next year's at-large City Council elections a referendum on the courthouse project.

Their stated goal, considered a nuclear option by proponents of the courthouse project, will be to terminate the contract with First Choice Public Private Partners. Such a move would place the in a nebulous jeopardy, the effects of which currently boggle the mind of courthouse proponents.

Citing the upcoming election year, opponents of the courthouse project, chiefly Ward 3 Councilor Fred Howe and former city councilor-cum-declared 2012 at-large council candidate Matt Kelly, note that if their camp can gain a single council seat, they would have enough votes to terminate the contract to develop the proposed court facility.

So far in the nearly year-long procurement process, major procedural votes to advance the proposed courthouse facility have been met with 4-3 decisions split along familiar lines. Mayor Thomas Tomzak, Vice-Mayor Mary Katherine Greenlaw, At-Large Councilor Kerry Devine and Ward 2 Councilor George Solley unfailingly provided the votes necessary for the courthouse project to move forward. Opposing the project at almost every step of the way were Howe, along with Ward 1 Councilor Brad Ellis and Ward 4 Councilor Bea Paolucci.

Opponent Grievances

Howe

Howe levels another complaint, arguing that the bid process was weighted in favor of the First Choice team, which includes Moseley Architects, the same company which produced the eponymous Moseley Report outlining design and security deficiencies present at the current Renwick Circuit Court facility on Princess Anne Street.

"What ended up being the winning bidder was allowed to scope the work and was ultimately allowed to win the work," said Howe. "I don't think that was fair to the competitors."

Proponents of the new court facility have consistently argued that until a contract was signed to protect the bargaining position of the city.

Arcadis Praised

The possibility of terminating the contract horrifies Fredericksburg's elected officials who voted in favor of the new court facility.

They dismiss criticisms about the transparency of the procurement process, saying that a certain amount of

They also praise the work of the consultant group

"I felt that they did a good job of leading us through, as objectively as possible, the process," said Greenlaw. "They made every attempt to be fair and objective in setting up the evaluations."

Termination

The includes a termination clause which could be enacted at any time during the development of the courthouse. According to the contract, the City Council can opt out of the contract if it gives the design/build team two weeks notice in writing. In turn, the city will still have to pay for any work already performed and any expenses incurred to cease work.

In terms of termination, the contractual terms are stacked favorably in favor of the city. Most prominently, the city is not responsible to pay the design/build team for lost profits resulting from an opt-out.

Howe said that he hopes that whoever runs for the at-large seats will make termination of the contract a campaign goal. When asked if he would support such a move, Howe answered quickly.

"Without question," replied Howe.

Ramifications

City Council members in favor of the courthouse project say that an abrupt termination of the project would negatively affect the city's financial and business reputation.

Councilor George Solley said that such talk was irresponsible.

"If you really, really want to put the city in a position where no one will do business with you, then that's a great way to start," said Solley. "Companies and businesses will be reluctant to do business with the city."

"At a time when we are trying to encourage business in the city, to insert the possibility that the city would reneg on its agreements is counterproductive to say the least," continued Solley.

Greenlaw echoed those sentiments.

"We can make conjecture on the next election, but we would certainly be remiss if we started making decisions based on the next election," said Greenlaw. "I hope we are not politicians. I hope we are elected to do what's responsible for the citizens of Fredericksburg."

Assistant City Manager Mark Whitley said it was hard to predict precisely how a termination would affect the city in the future.

For starters, there's the fact that the city sold $38 million in bonds last week, $32 million of which will be used to fund the court project. If a future City Council terminates the contract, there is no existing plan for that money.

"We've issued the debt," said Whitley. "There's a question about what do you do with that, how do you escrow it. This is not a quick question to answer."

The possibility of a contract termination winning popular support in an election year puts city staff in an akward position.

"That puts us in a pretty tight spot as in what we say as staff," said Whitley. "We are here to serve. Right now we have a council that has given us direction and we are following that direction."