YOUNGSTOWN City says supply company repaid overbilled amount

The company says it can explain the overcharges but was told not to.
By ROGER G. SMITH
CITY HALL REPORTER
YOUNGSTOWN -- An Alliance cleaning supply company repaid the city $25,042 during February and March for overbillings over four years.
Damon Industries Inc. repaid $20,844 on Feb. 28 and $4,198 on March 20, according to records the city released this morning.
The state auditor is conducting a special audit at the city's request to explore whether the overbillings were intentional and if there are other discrepancies.
The March check characterizes the payment as an "overcharge balance."
Robert Brumbaugh, Damon's corporate vice president, said this morning he can explain the overcharges but has been advised not to. He referred questions to his lawyer, Mike Ogline, whose office said he wasn't available until Tuesday.
State Auditor Betty Montgomery said the vendor paid promptly once the overbilling was discovered.
Damon has provided cleaning supplies to the city for about 15 years, the state auditor has said.
Contracts
During the four years in question, the city bid out two cleaning contracts and awarded Damon both of them. Each contract is valued at about $90,000.
One contract was from Sept. 1, 1999, through Aug. 31, 2001. That contract had a one-year option, which both sides agreed to exercise.
The second contract runs from Sept. 1, 2002, to Aug. 31, 2004.
The contracts are for 33 types of janitorial and maintenance supplies, from scouring powder and garbage bags to soap and floor cleaner. The contract also includes three types of grass or bug killer and nine types of paper products, such as towels and toilet tissue.
Finance Director David Bozanich reviewed the contracts and discovered discrepancies. The city is questioning whether the overbillings were merely the result of clerical errors.
Mayor George M. McKelvey has said it will pursue legal action against the vendor if the audit determines the overbillings were attempts at fraud. The audit is expected to take several months.
Montgomery said last week her office will review the five most recent years' worth of documents related to Damon. That review will determine whether further investigation is warranted.
Checks and balances
Montgomery said the special audit also will check to see if the city has the appropriate checks and balances in place to find other problems with vendor contracts, and make suggestions for improvements.
Law Director John McNally IV said each city department orders its own supplies.
The city is disputing a description in The Vindicator last week that the state auditor's office directed the city to release the records.
The city declined to immediately release the documents May 15 when the special audit was announced.
Montgomery told The Vindicator that state law prohibits the auditor's office from disclosing the name of the vendor in a situation such as this. But a special audit doesn't preclude the city from releasing records related to the vendor, though a decision on that is in the hands of the city law director, she said.
State audit officials relayed that information to the city.
rgsmith@vindy.com