Roofing Contractor Threatens Ford City for Non-Payment

Schultheis Roofing said penalties and interest will be applied because of non-payment of invoices to the Ford City Maintenance Building.

by David Croyle

Ford City Borough Councilman Ron Dillard charged fellow council members with unethical business practices amid controversy of non-payment to a roofing contractor.

The problem began early last year when the Borough’s insurance carrier refused continuing coverage on the Borough’s maintenance garage because of deterioration. The Borough appointed Senate Engineering to create bid specifications. Schultheis Roofing was awarded the contract on June 1 in the amount of $24,400. Another $2,000 was added in July when the contractor requested a change order because the roof trusses did not extend far enough out on the edges of the building for the new roof to cover it sufficiently.

Schultheis completed the work in September, creating invoices on two separate occasions; however the Borough has failed to make payment.

Councilman Rob Mohney said he understood that there was damage to the roof and the Borough was waiting for it to be resolved.

“We had a problem with the roof but there was no reason to hold his money,” Councilman Ron Dillard said. “I talked to Mark (Schultheis) twice. I told him that the holes in the roof was not reason to hold (payment) up.  He has work to do, but we have been negligent as a borough to not pay him what is required.”

“I was under the impression that we were waiting on an answer from you,” Finance Chairman Paul Harmon told Dillard.

“We have had snow. They are minor things that can be repaired,” Dillard responded. “He should have been paid. There is only minor damage, not something that we should hold his money.”

Owner Mark Schultheis appeared before Council at another point of the meeting to discuss payment.

“I received letter from Ron (Dillard) on Jan 6. The same day, we sent people up there to see what was leaking. No one knew anything about it… The snow storm came and we couldn’t do a lot of things. We never got anything from (street supervisor).”

Schultheis said he sent a registered letter on Feb 17. “There is a physical contract. The contract was signed by Council President John Lux and the Borough Secretary.  We were to receive payment 30 days after it was finished. You will be charged interest and penalty. You are holding $12K of my money for a roof leak and no one will tell me the reason.”

Schultheis continued. “What is more disturbing… I went into the Borough minutes from Jan 11. (Dillard) asked if Schultheis was paid and the Secretary said yes.”

“We have had a complete change of leadership,” Dillard said in exasperation. “It is up to the Finance Committee to check on it.  As soon as whoever is in charge with that department, and get in touch with Schultheis, he will take care of (the repairs).”

Dillard continued in frustration. “I explained those holes are minor and you should have been paid. I was supposedly the reason you did not get paid because I did not release it. I told you I would try to get you paid last December.”

“We were told the roof was damaged and we did not know,” Mohney said.

“Senate told me you were in direct violation,” Schultheis responded. “You can’t say there is a leak without informing us.”

Mohney assured Schultheis of immediate action. “We will get it paid,” he said.

Audits Completed at Ford City Sewage Authority

Nearly four years of accounting records have been accounted for following an extensive audit at the Ford City Borough Municipal Sewage Disposal Authority.

“We had problems with our old auditor,” Authority President Terry Tokarek said. “We got the records from his office, and got another auditor, and our audits are done through 2008.  2009 is being done now.” 

Authority Vice-President and Ford City Council member Lou Vergari said that the delay of auditing the books was an internal problem with their former auditor and not the Authority.

“When he first started out, it was fine,” Vergari explained. “Then they kept changing our account to another person to handle. It kept getting delayed and more delayed. Finally, we just called them and said we were coming to pick up our records and to have them ready.”

The Authority then hired Merge & Hill, P.C. Certified Public Accountants from Tarentum to audit records from 2005 through 2008. CPA Richard Hill said that he was in the process of working on the 2009 audit, but declined to give a date it would be completed.