Forensic Audit Report-WPCA Phase IV, Part B. Contract ... - Trumbull

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FORENSIC CONSULTING SERVICES REPORT Town of Trumbull, Connecticut Water Pollution Control Authority WPCA Sanitary Sewer Project (Phase IV, Part B, Contract No. 3) I. Assignment The Town of Trumbull (the “Town”) engaged CCR LLP (“CCR”) to perform the following services: • Perform forensic accounting procedures as necessary to identify and quantify any and all abnormal contractual or financial activity, past or present, relating to the execution of the Water Pollution Control Authority (WPCA) Sanitary Sewer Project (Phase IV, Part B, Contract No. 3) which took place from May 2007 through December 2009. • Following the completion of the audit, CCR shall issue a written report communicating all discovered abnormal activity, past or present, its quantification, cause and consequence. The report will be in sufficient detail to enable the Town to collect any potentially recoverable losses. In addition to the written report, CCR will orally report its findings to the First Selectman and WPCA and advise and recommend to the WPCA appropriate actions to prevent future abnormal activities relating to forthcoming contracts of similar nature. CCR LLP has subcontracted the Beta Group, Inc. (“Beta”) for the technical engineering and construction expertise required for this engagement. References made in this report to CCR/Beta are referring to the collaborative work done in this assignment by both CCR and Beta. The scope of the engagement was expanded to include one day of time to perform site inspections on the work being performed on the current sewer construction contract (Contract 4) to better understand the procedures that might have been employed during the construction of Contract 3 and to assist in making recommendations regarding future sewer construction contracts. II. Background Sewer Program Overview In 1964, an engineering and architectural firm, was hired by the newly established Sewer Commission to design a complete sewer system for the Town of Trumbull. The design study was necessary, as sanitary sewers did not exist within the town at that time. All sewage was disposed by individual means such as septic tanks and leaching fields. Due to growing population densities in some areas and poor soil conditions in areas the town was experiencing many difficulties with failing individual sewage systems.
Forensic Consulting Services Report Town of Trumbull, Connecticut Page 2 It was also decided that Trumbull would discharge their sewage to Bridgeport because Trumbull does not have a sewage treatment plant. Bridgeport had an extensive sewage system with available capacity to accept sewage from Trumbull. This “regional” hook-up between Trumbull and Bridgeport was thought to be advantageous to both communities. Trumbull’s first sewer construction was completed in 1973 and provided sanitary sewer service to neighborhoods in the Main Street, Church Hill Road/White Plains Road sections with extensions that enabled sewers to service all of the commercial and industrial zones. Topography is a prime consideration with the system’s design. It is to the advantage of the Town to have gravity flow within the system wherever possible. Gravity flow is much less costly and troublesome. However, complete gravity flow is not possible or economically feasible. For this reason 12 pump stations are used in Town. The name of the Sewer Commission was officially changed to the Water Pollution Control Authority (WPCA). The Authority is self-funded and employs an Assistant WPCA Administrator and maintenance personnel. In 1992, the town set out to develop a long term plan for the design and construction of sanitary sewers in the un-sewered sections of the Town. Public Information sessions were held to discuss the issues concerning the cost to design sanitary sewers for the balance of the town. The design cost was approximated at nearly $2 million. The construction costs were estimated to be approximately $40 million. In developing this plan, the following factors were considered at that time: • Cost of construction • Cost of bonding • Cost of the engineering work • Demographics • Environmental quality • Cost of septic repair • Availability of Bridgeport’s treatment plant • Ability of the taxpayers to pay • Federal grants • Alternatives The Town of Trumbull’s Board of Finance and Town Council approved bond appropriations in the 1990’s, funding the design of sanitary sewers expansion in five contract areas. More detail on this to follow in this report. This sewer expansion project has been labeled Phase IV-Part B. It was considered a near certainty that sanitary sewers would be installed in all five areas, as public investment and demand was high. The Town of Trumbull’s Water Pollution Control Authority approved an agenda with each project scheduled for construction in a specific order. Contract 1, also known as the “Canoe Brook Lake Project,” was completed in 2005 and provided sewer service for 375 residents. Construction of
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Forensic Audit Report-WPCA Phase IV, Part B. Contract ... - Trumbull

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