Alderperson Eichmann Interferes with City Bid Process for her Employer

 Franklin Community News

Alderperson Eichmann Interferes with City Bid Process for her Employer

Franklin Community News (FCN) was made aware that Franklin Alderperson Michelle Eichmann who represents the 2nd Aldermanic District, was interfering with a city quote process in an effort to have a bid for carpeting awarded to her employer. Eichmann's Linked In page identifies that she is a full-time Interior Designer and Outside Sales Consultant for Stu's Flooring since February of 2020.

Open records requested by FCN were:

• That the City of Franklin provided soliciting bids for flooring in city hall that was completed this year in addition to:

• The Request for Proposal requesting flooring bids

• All bids received by the city for the flooring project

• Any emails the city has pertaining to the bid request, responses, or any communication pertaining to replacing the flooring or awarding the bid

• If a document existed on how the bids were scored and any documentation on who the bid was awarded to

FCN made the open records request to the City of Franklin on December 20, 2023.

Access to all of the records received from the open records request can be accessed here.

A review of the records indicates that the City Health Department received a Community Development Block Grant in early 2023, specifically awarding funds to cover the cost of the carpeting project for the Health Wing at Franklin City Hall. Records also show that city staff reached out to the Greendale Health Department who recently were awarded a block grant to update the Greendale Health Department.

At the end of February staff requested quotes from Adiar Floors 'N' Mor ($4,772) and Stu's Flooring ($4988.98). On July 11, 2023 Lauren Gottleib, Director of Health and Human Services sent an email to Kelly Hersh, Director of Administration indicating two quotes were obtained. The open records request did not provide any responsive records indicating Hersh provided a written response. Gottleib indicated she has no preference in vendors and is recommending Adair which came in slightly lower in cost. On July 24, 2023 Adair updated their quote to ($5496) as they were specifically quoting on Mohawk Carpet Tile #989 based on request from staff. Stu's provided an updated quote of ($6017.75) on August 1, 2023 to now include a Patcraft color 910 Somersault or Mohawk Commercial Carpet.

On August 2, 2023 Gottleib indicates to Bob Tesch, Buildings Maintenance Superintendent to move forward with Adair based on their price. August 9, 2023 Gottleib sends an email to Karen Kastenson, Former City Clerk indicating that Council Action is needed at the next Council Meeting, August 9, 2023 (Item G4) to approve carpeting purchase since it is over the $5000 limit to purchase without council action.

On August 14, 2023 the day before the August 15, 2023 Common Council meeting, Tesch receives an unsolicited alternate quote from Stu's Flooring General Manager Justin Hurd for ($4937.33). Stu's quote now includes the exact same carpet specification that was quoted by Adiar's (Mohawk Breaking news color 989 total access). Stu's quoted the exact same carpet specifications as Adair's, but also underquoted Adair's revised bid of ($5496) by $558.67.

The morning of the August 15, 2023 Common Council meeting, Tesch sent the following email to Hersh:

"Kelly, I have some concern about item G3 carpeting in Health wing, which is on tonight’s Council agenda. When getting quotes for this work, each vendor was given the same parameters for scope of work, and desired level of quality for the materials used. I did this because all vendors do not use the same manufactures products, so I did not want exclude a vendor just because

they used a supplier that is different from their competitor. Yesterday our Health Director received a call from Alderwomen Eichmann about this project, so the Director asked me to join the discussion. (Important side note) One of the vendors that bid on the project was Stu’s Flooring, which happens to be the alderwomen’s employer, (which I was unaware of.) While the alderwomen is not directly associated with the carpeting division of Stu’s, so we do not have a direct conflict of interest, she is an employee."

 

"The alderwomen had the carpet rep at Stu’s produce an alternate bid, which I also have concern with, as it is very last minute and was not an option afforded to Adair Flooring. While that quote came in less than the vendor who the Health Director and I recommended in item G3, I do have concerns. When talking to the alderwomen, she of course was aware of details that other competing vendors would not be aware of, down to the carpet color and design quoted by another vendor/competitor. As the new quote from Stu’s now quotes the exact carpet down to the style number and name, clearly some info from a competitors quote was shared, again to me this is a concern."

 

"When talking to the Alderwomen yesterday, she was not 100% if she was going to bring this up in the discussions on this item, but I wanted to make you aware that I have some concerns how this is playing out. I of course will use whatever vendor I am instructed to use by you and the Council, but I am the person who will also have to call the vendor who we do not use, which may be difficult know that things had been happening behind the scenes. I know that I have used the word concerned in this e- mail many times, and I fell I did so for good reason. Thank you!"

The open records request did not provide any responsive records indicating Hersh provided a written response.

This item did appear on the August 15, 2023 Common Council agenda and Adair's Quote was voted upon and approved by the Council. Minutes of the meeting show all Alderperson's voting "Yes" and Alderperson Eichmann voting "Abstain".

Analysis/Opinion

1. Alderperson Eichmann overstepped her authority as an Alderperson by inserting herself into a City purchasing process.
2. Alderperson Eichmann has a conflict of interest with her employment at Stu's Flooring and the awarding of a contract with the City of Franklin.
3. Alderperson Eichmann had no authority asking Stu's to submit an alternate quote which was not afforded to Adair's and not her purview.
4. Alderperson Eichmann provided an unfair advantage to her employer by providing the exact carpet specification to Stu's that was not part of the quote process and that no one would have known.
5. Alderperson Eichmann provided an unfair advantage to her employer by providing the amount that was quoted by Adair's, allowing her employer to submit a quote undercutting Adair's.
6. It was appropriate that Alderperson Eichmann abstained from voting, however the damage was done.
7. It is unfortunate that the City Director of Administration either did not provide a written response to two of the emails indicated, or choose to provide an oral response.
   
   
   

A review of the City of Franklin Ethics Code indicates the following Ethics Violations may have been violated by Alderperson Eichmann:

• Section 3 - The Common Council, upon recommendation from individual Council Members, professional staff, and volunteer Boards/Commissions/Committees, authorizes various aspects of personnel management including policies, pay plans, benefit plans and other related items. On Council direction, the Mayor is charged with implementing these items while working with the executive team. This provides for a single manager to direct our staff.
• Section 3 - Council Members shall not engage in directing employees in their tasks and/or injecting themselves into tasks and projects.
• Section 3(C) - Unless otherwise provided in this Code, neither the Council, nor any of Commission/Board /Committee Members, shall attempt to supersede the administration's powers and duties. Neither the Council nor any Commission/Board/Committee Member thereof shall give orders to any of the Department Heads or their subordinates, either publicly or privately. Council/Commission/Board/Committee Members shall not attempt to unethically influence or coerce City staff concerning either their actions or recommendations to awarding contracts, selection of consultants, processing of development proposals, the granting of City licenses and permits, or any other similar City function.
• Section 9 -  Using their office to obtain financial gain, any type of employment including consulting or similar roles, or anything of substantial value for the private benefit of themselves, their immediate families, or organizations with which they are associated.