‘Defective’ and ‘void': Mayor nixes contract for investigation of City Hall

ALLENTOWN, Pa. — Allentown Mayor Matt Tuerk will not honor the contract for a former FBI agent to investigate City Hall, he told council Monday.

Members voted 6-1 on June 5 to hire FLEO Investigations, run by former FBI special agent Scott Curtis, to lead the probe into allegations of workplace discrimination and racism.

Council Vice President Santo Napoli was the lone vote against Curtis’ hiring after raising concerns a committee of his colleagues used “a flawed process” to select Curtis.

Tuerk on Monday called the contract “defective for many reasons” and told members he considers the contract with Curtis “to be void.”

The mayor listed more than a dozen concerns Monday in a three-page memo to council.

Those concerns include council members hiring Curtis — who led the investigation into former Mayor Ed Pawlowski’s pay-to-play contracting practices — after he failed with a previous bid to land the job.

And a three-person committee of council members potentially violated Pennsylvania’s Sunshine Act and the city’s Ethics Code by talking to bidders outside public forums, the mayor’s memo says.

'Seriously flawed'

Curtis was hired to lead an investigation — approved by council in October — into claims discrimination and racism by and against city employees.

Employees in Allentown’s purchasing bureau worked with council to issue a request for proposals by mid-December, Tuerk said.

Four companies made bids over the next four months, but two — including Curtis’ FLEO Investigations — were “rejected” because they didn’t submit valid bids, according to the mayor.

The city’s finance department in mid-April asked for more time to interview the two “qualified” companies, but council shot down that extension request, causing the city’s RFP to expire April 21, he said.

The ordinance that council passed to authorize the investigation required members to continue working with the city’s purchasing bureau, but they instead ran a “Help Wanted” ad in a local newspaper, Tuerk said.

Council hired Curtis about six weeks later, despite concerns that its three-member selection committee — Ed Zucal, Ce-Ce Gerlach and Daryl Hendricks — shared no interview questions or transcripts.

Tuerk’s memo criticized the committee for using “unknown scoring criteria” during interviews.

“Because the procurement process that City Council implemented did not place bidders on equal footing as required by city and state law, I consider the resulting contract to be void,” the mayor wrote Monday to council.

“Even if the contract was validly approved, it is seriously flawed, and I cannot approve it.”

Potential pitfalls

An engagement letter outlining the contract for FLEO Investigations is riddled with potential legal issues, any of which could spell its doom, according to Tuerk’s memo.

The contract for the investigation into claims of discrimination does not include clauses against discrimination or sexual harassment that are included in all city contracts.

The mayor also questioned council’s “legally flawed and ambiguous” move to tie Curtis’ contract to an expired RFP.

Members in April allocated $300,000 for the investigation, but a one-word amendment — adding “initial” to the bill — means they could come back for more funds.

And hourly rates for FLEO investigators are redacted in a public copy of the engagement letter.

Curtis is set to serve as “project lead” for the investigation, while a second employee will assist him, according to the letter.

The lack of a spending cap and disclosure of rates “violate city and state law and make the contract invalid,” Tuerk wrote Monday.

The engagement letter gives FLEO “legal protection … if it negligently performs the services” and limits the company’s legal liabilities, measures Tuerk said are “counter to the public interest.”

And Allentown officials do not agree with the contract’s provisions for disputes to be resolved through arbitration in Philadelphia court, he said.

'Invalid, violates charter'

Even if those numerous concerns prove to be unfounded, simple bookkeeping errors could void the contract.

City Council President Cynthia Mota signed and agreed to the contract for the “City of Allentown,” though the contract identifies council as the client.

“Council President Mota is not authorized to sign a contract on behalf of the city," according to Tuerk's memo. "Only the mayor can execute contracts for the City of Allentown.

“Therefore, [the] City Council President’s signature on behalf of the City of Allentown is invalid and violates” the city’s home-rule charter.

It’s now unclear whether or when the investigation will start.