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OMAHA — Jim Vokal told the Omaha City Council Tuesday that he hadn’t spoken before the body since he was an elected member back in 2009.
“So for an issue to bring me out of retirement, it must be significant,” said Vokal, now CEO of the Omaha-based Platte Institute, a public policy organization that advocates for Nebraska taxpayers.
Vokal stepped up to oppose a $411 million agreement that Mayor John Ewing Jr.’s administration wants with Missouri-based McCarthy Building Companies. The proposal represents the bulk of a roughly half-billion-dollar project to further expand and improve the Papillion Creek Water Resource Recovery Facility.
Described by an Omaha Public Works official as “massive” and one of the city’s biggest-ever infrastructure investments, the initiative is needed to meet the growing metro area’s wastewater needs through 2050.
Vokal took issue with a provision in the McCarthy agreement that he and others said appeared to eliminate an earlier requirement for competitive bidding on portions of the job. He also noted that another well-known general contractor had offered an alternative, though unsolicited and unofficial, bid to carry out the work, subcontractors included, for about $78 million less.
“‘How is not abiding by the contract to bid out work deemed reasonable and legal?” asked Vokal. “This is bad policy, not only because it’s costly to Omaha taxpayers, but it’s not transparent.”
Is Omaha getting ‘snookered’ in roughly half-billion-dollar infrastructure project?
His testimony set the stage for a sometimes-tense discussion during which council members questioned a deputy city attorney and Public Works official about the proposed pact with McCarthy, which had a representative at the meeting.
Council members Pete Festersen, Aimee Melton and Brinker Harding said they were disturbed that the proposal before them appeared to delete original language calling for parts of the job to be competitively bid by subcontractors.
“We’re retroactively trying to change the process,” said Harding. “That’s what I have the problem with.”
Festersen said there was “no doubt” language was modified to allow McCarthy to “self-perform” more of the work. Opponents said that opened the door to more profit for McCarthy but also limited local subcontractor participation.
Assistant Public Works Director Jim Theiler tried to assure the council that subcontractors will participate. He said the city’s legal department and an independent third party reviewed and approved the proposal.
Jeran Murphy, a McCarthy executive, told the council about a handful of similar complex wastewater treatment projects his company had completed in neighboring states. He talked about the firm’s record and history in Nebraska.
“For the past 25 years, we’ve worked really hard to be a community builder and not just a contractor,” he said.
Chris Hawkins, CEO of Omaha-based Hawkins Construction, spoke in opposition. He said his company had hoped to bid on concrete and other segments of the overall project but was not invited. Having done similar wastewater treatment construction work, Hawkins called that “at best a head-scratcher.”
Hawkins raised other concerns about the McCarthy proposal and urged the council to reject it and start anew with a competitive bidding process.
Melton, an attorney, queried a deputy city attorney about the language change. She didn’t get clear answers, leading her to say: “I’m done.”
At an earlier point, Melton told city officials she was not doubting anyone’s integrity. She said, “It’s too much for me to … defend.”
The City Council did not take action on the proposal. A vote on whether to approve the McCarthy agreement is set for next Tuesday.
Theiler, asked about options if the agreement was not approved as is, said he would talk to his boss.
Earlier, Theiler said that not approving the proposal would likely result in “significant delays, additional costs and a lack of transparency that is included in the contract with McCarthy.”
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