The Indianola Board of Aldermen may have payer’s remorse after agreeing to cut a check back in December to compensate a contractor who did not have a binding agreement with the city.
Against twice given advice from City Attorney Kimberly Merchant, the board voted 3-2 last month to pay Spencer Construction $38,900 for a home rehabilitation project that was bid through MS Home Corps., the Department of Housing & Urban Development and South Delta Planning & Development.
Aldermen Ruben Woods, Marvin Elder and Sam Brock voted yes. Aldermen Gary Fratesi and Darrell Simpson voted no.
Merchant told the board multiple times last month that because Spencer, which is owned by Frederick Spencer, was not under contract with the city, the board was not authorized to pay the bill.
Some members of the board reasoned that the city would be reimbursed once the funds are disbursed from HUD to MS Home Corps. But that may not happen after all.
“For whatever reason, HUD just hasn’t renewed it,” Merchant told the board this past Monday night, referring to a process where the agency would award and waiver for the project and agree to release the funds.
Merchant read a portion of a letter she received from MS Home Corps explaining the latest on the situation.
“However, HUD denies the request,” the letter apparently stated. “MS Home Corps. must deem the project to be ineligible for funding, and all funds that have been paid out must be repaid to MS Home Corps. and returned to HUD.”
“Meaning, we won’t get any money,” Merchant said.
On top of that, Merchant said the city may be on the hook for an additional $16,000 in monies that had been previously drawn down. She said that was in the letter from MS Home Corps, but she had not gotten to the bottom of what that money is by the time of the meeting.
There also were communication issues between MS Home Corps, Merchant and City Clerk Angela Goodwin, who said that her contact at the agency said the city had the authority to pay the contractor.
“She cannot speak to our contract with South Delta,” Merchant said. “She can’t tell the city it’s okay to pay something…I disagree with her wholeheartedly.”
The city is now crossing its fingers that HUD will grant the waiver and reimburse the funds to the city.
