Monday, April 21, 2008

A MODEL FOR FIGHTING THE SCAM WITH YOUR SCHOOL BOARD, CITY COUNCIL AND FACILITIES PERSONNEL:

Here is the Power Point Presentation done by the School Board Member in Ellwood City, PA's Riverside School District so successfully (A Model to be reused for others - particularly those fighting Garland, Hickman and other companies who would use the same marketing tactics to corner the market!):

Riverside School District
Roofing Contract Concerns

Clever Marketing Tactics
We were presented the Avonworth School District’s roofing project as the most similar to our own. However Avonworth installed a build-up roof not the EPDM rubber membrane system we are looking into.
(Their price was still better $13.24 vs. $13.62 sf.)

Built-up vs. Rubber Roofs
Built-up Roof consists of:
Foam insulation
Cover Board
Multiple layers of an asphalt based waterproof material, the layers are bonded by heat or an adhesive

EPDM Rubber Roof consists of:
Foam insulation
A single layer of 60mm rubber membrane, it is attached to the insulation by an adhesive

Lack of Asbestos Testing
It was common for asbestos to be used in roofing materials during the time that the school was
constructed (late 1950’s)
This allowed roofing material manufacturers to assign a fire resistant rating to their products.
This may also explain why our existing EPDM rubber roof was installed over the original roof.
If asbestos is found after we have refinanced our bond, we would be forced to take out an additional bond to pay for the abatement.
That would result in a tax hike.

AEPA Process vs. Bidding
We were never presented actual bid prices for EPDM rubber roofs.
The bid prices presented to us
(New Brighton) were for built-up roofs.

Comparison of Rubber Roofing Prices
All of the following prices are for EPDM rubber roof systems.
Each installation bid includes removal of an existing roof and a 15 or 20 year warranty.
Anywhere the bid varies will be noted.

All of this data is public record and was obtained through the Pittsburgh Builders Exchange (www.pbe.org)

Comparison of Rubber Roofing Prices
Riverside Quote
AEPA Pricing (WTI / Tremco)
145,900 sf.
$13.62 sf.
Date of Quote (3/2008)

Comparison of Rubber Roofing Prices
East Allegheny High School
Competitive bidding process
165,000 sf.
$8.23 sf.
Date of Bid (5/2007)

40% lower than our price

Comparison of Rubber Roofing Prices
Renovo Elementary School
Competitive bidding process
45,129 sf.
$7.57 sf.
Date of Bid (8/2007)

44.5% lower than our price

Comparison of Rubber Roofing Prices
Chartiers – Houston High School
Competitive bidding process
85,000 sf.
$11.75 sf.
Date of Bid (1/2008)
14% lower than our price

Price also includes 30,000 sf. of replacement decking
It should be noted Chartiers chose to go with a built-up roof, not the EPDM rubber bid referenced above.
That price was $13.25 sf. (still 3% lower than our price)

Comparison of Rubber Roofing Prices
North Clarion County High School
Competitive bidding process
78,000 sf.
$8.69 sf.
Date of Bid (2/2008)
36.2% lower than our price

This quote also includes removal of two roofing systems (existing rubber roof system and original built-up roof) and also includes proper handling of a material known to contain asbestos included in the cost

Comparison of Rubber Roofing Prices
Average Bid pricing ($9.06 sf.)
This average price does not break out the additional services and materials included in those bids.
(AEPA Quote) $13.62 sf. X 145,900 = $1,987,158
(Average Bid) $9.06 sf. X 145,900 = $1,321,854
A difference of $665,304

Additionally our AEPA quoted price does not include any decking replacement or any potential asbestos abatement costs. The total cost of this roof could quickly grow, yet we haven’t completed any testing.

Business Reputation
Although certain information was presented to a few
people that concerned litigation against Tremco.

That information was never presented to the entire
board and would definitely have influenced discussion
if not the vote to approve.


Business Reputation
The following is a quote from the National Roofing Contractors Association (www.nrca.net)
“ Tremco Roofing Company is being investigated by the attorney generals in several states citing allegations of price gouging, illegal bidding practices, and possibly other illegal and unethical activities regarding public sector construction practices.” (http://www.nrca.net/rp/technical/search/librarydetails.aspx?IDNumber=146277)

Tremco is a member of this organization.

Business Reputation
There are a large number of lawsuits both pending
and settled concerning business practices of Tremco.

Conclusion
We need to vote immediately to suspend signing
this contract until the proper research and investigation
has been completed.

We owe it to the taxpayers in our district to be prudent
with our decisions on how we spend their tax money.