MacK v. Augusta-Richmond County, Ga.

365 F. Supp. 2d 1362, 2005 U.S. Dist. LEXIS 6561, 2005 WL 883971
CourtDistrict Court, S.D. Georgia
DecidedApril 18, 2005
DocketCivil Action CV 103-178
StatusPublished
Cited by4 cases

This text of 365 F. Supp. 2d 1362 (MacK v. Augusta-Richmond County, Ga.) is published on Counsel Stack Legal Research, covering District Court, S.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MacK v. Augusta-Richmond County, Ga., 365 F. Supp. 2d 1362, 2005 U.S. Dist. LEXIS 6561, 2005 WL 883971 (S.D. Ga. 2005).

Opinion

ORDER

BOWEN, District Judge.

Before the Court in the captioned case is Defendants’ motion for summary judgment on all of Plaintiffs claims. . Oral argument on the motion was heard on March 10, 2005. Based upon the briefs and argument of counsel, the record evidence, and the relevant law, Defendants’ motion for summary judgment is GRANTED.

I. FACTUAL BACKGROUND

Plaintiff has sued Defendants for terminating him in violation of his First Amendment rights, pursuant to 42 U.S.C. § 1983, and in violation of the federal whistle blower statute, 31 U.S.C. § 3730. Plaintiff also asserts a breach of contract claim involving Defendants’ alleged promise to credit prior service years toward Plaintiffs retirement benefits.

*1366 Plaintiff began his employment with Augusta, Georgia, in January of 1992 and was appointed as the Director of Housing and Neighborhood Development (hereinafter “the Department”) for the consolidated government of Augusta-Richmond County in November of 1996. 1 (Defs.’ St. of Undisputed Mat. Facts, ¶ 1.) As the head of the Department, Plaintiffs job responsibilities included overseeing Augusta’s disbursement of grant money from the United States Department of Housing and Urban Development (“HUD”) through the Community Development Block Grant program (“CDBG”). Plaintiff was responsible for efficiently managing the Department and ensuring that project funding complied with the applicable regulations. (Id. ¶ 2.)

After the time of Plaintiffs hire, the Inspector General’s Office for HUD performed an audit of the Department. (Dep. of Richard Persig, at 5-6.) The audit primarily covered years prior to consolidation, from 1992 through 1996. Pursuant to the audit, the Inspector General’s Office issued a highly critical report of Augusta’s oversight of HUD funding in December of 1998. (Id. at 11-13, Ex. 36.) The report particularly noted several problems with conflicts of interest and other procurement violations in HUD funding. The report specifically found that Augusta improperly used CDBG funds for projects that did not meet national objectives of the CDBG program and recommended that Augusta be required to reimburse the CDBG program for the ineligible costs. (Id.)

Plaintiff claims that he worked closely with HUD to avoid the penalties and to protect against future penalties. In so doing, Plaintiff claims he gained the antipathy of Commissioner Lee Beard because Plaintiff refused to provide funds on certain projects without going through the necessary paperwork and bidding procedures, contrary to Beard’s insistent requests. 2 (See generally Dep. of Keven Mack, at 32-34; Aff. of Keven Mack, ¶¶ 6-8.)

Sometime in 2000, Augusta named the East Augusta Community Development Corporation (“East Augusta”), a Georgia non-profit corporation, as a Community Development Housing Organization (“CDHO”). CDHOs are development partners eligible for HUD funds through the CDBG program. (Mack Dep. at 40-41; Dep. of John Kemp, at 19; Dep. of George Kolb, at 41, 45.) In January of 2001, East Augusta attended an annual meeting of CDHOs to learn about the HUD procurement requirements. (Mack Aff. ¶ 11.)

On or about May 4, 2001, Augusta executed a contract with East Augusta to oversee the rehabilitation of the Lincoln Square Apartments in Augusta. 3 Pursuant to this agreement, East Augusta would act as a sub-recipient of CDBG funds provided to Augusta by HUD. Through the sub-recipient contract, Augusta was to provide East Augusta $500,000 of CDBG funds as partial funding for the Lincoln Square project. (Defs.’ St. of Undisputed Mat. Facts, ¶ 3.)

*1367 East Augusta’s use of CDBG funds was subject to the requirements of the Housing and Community Development Act of 1974, 88 Stat. 633, as amended, 42 U.S.C. §§ 5301 et seq., and all other regulations concerning the CDBG program, see generally 24 C.F.R. Part 570 et seq. 4 That is, any contract bidding for the Lincoln Square project had to be done in compliance with HUD guidelines. (Id. ¶ 4; Kemp Dep. at 22; Mack Dep. at 39-42.) In the event of any non-compliance with HUD guidelines for bidding procedures, Augusta could be required to repay all funds disbursed under the CDBG. (Mack Dep. at 42.) East Augusta actually pulled in a procurement partner on the project, Capital Development Corporation, which was supposed to help East Augusta stay in compliance with HUD funding requirements. (Kemp Dep. at 25-26.)

After the sub-recipient contract was executed in May 2001, Norman Michael and John Kemp, employees in Plaintiffs Department, scheduled a meeting with East Augusta to discuss the bidding procedures needed to be employed to comply with HUD regulations. At this meeting, Michael and Kemp learned that East Augusta had already entered into a contract with Gold Mech, Inc. for the Lincoln Square rehabilitation project without soliciting competitive bids as required by the HUD regulations. (Defs.’ St. of Undisputed Mat. Facts, ¶ 5.)

John Kemp informed Plaintiff of the contract award when he returned to the Department office that day. (Kemp Dep. at 16.) The Department then asked East Augusta and its partner, Capital Development Corporation, to explain its bidding process. Capital Development Corporation sent a letter explaining that it had decided that only two contractors in Augusta were suitable for the project, and it unilaterally selected one of the two. (Id. at 16, 30.) Upon receiving this letter, Kemp notified a senior financial analyst with HUD, Tony R. Simmons, and asked his opinion about the procurement. 5 (Id. at 23-24.) Simmons issued a memorandum dated May 17, 2001, in which he opined that Capital Development Corporation violated HUD regulations by not publishing notice of the bid and not using an open and competitive bidding process. (Aff. of Tony Simmons, Sept. 9, 2004, Ex. 3.) On May 22, 2001, Kemp wrote a memorandum to Norman Michael, with a copy to Plaintiff, suggesting that the project be placed on hold until the situation was resolved. (Kolb Dep. at 53-54, Ex. 4.)

In the months to follow, it appears that East Augusta and the Capital Development Corporation were either uncooperative or unresponsive to requests for additional information from the Department. (Kemp Dep. át 16, 55-56; Mack Dep. at 38, 46.) At some point, several Augusta commissioners and Augusta’s attorney became involved with the problem. Augusta continuously worked with HUD to resolve the matter. (Kolb Dep. at 44; Mack Dep. at 49; Aff. of Stella Taylor, Aug. 3, 2004, ¶ 6.)

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Bluebook (online)
365 F. Supp. 2d 1362, 2005 U.S. Dist. LEXIS 6561, 2005 WL 883971, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mack-v-augusta-richmond-county-ga-gasd-2005.