State Auditor Questions Planning for | Edward B. Hatchett, Jr. |
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(Frankfort - July 1, 2003)
State Auditor Ed Hatchett has questioned the State's plans for building, outfitting, and managing food service facilities in the new Transportation Cabinet Office Building. According to documents provided by the Finance and Administration Cabinet, approximately 9000 square feet, costing an estimated $2.4 million, has been set aside for kitchen, servery, and dining areas in the 420,000 square foot building. At least $1.2 million of that cost consists of a subsidy for equipment being offered to an out-of-state vendor that was the only respondent to a request for proposal.
Hatchett says the Finance Cabinet did not adequately promote its Request For Proposal (RFP) for food services for the new building. The RFP was only posted on the Cabinet's web site; no attempt was made to solicit the Kentucky Restaurant Association membership or local restauranteurs. No proposals were submitted in response to the Cabinet's first RFP, even though the Commonwealth had offered respondents rent-and utility-free space. Subsequent RFPs offered reimbursement for all equipment up to a minimum of $1.13 million. "This project improperly subsidizes meals for patrons," said Hatchett. "It does so by awarding an out-of-state vendor the cost-free opportunity to compete against downtown restaurants in Frankfort." "If food services are essential to the new building, the Commonwealth should be selling a business opportunity to a vendor rather than exchanging free rent, free utilities, and free equipment for a proposal." The planned restaurant itself is elaborate, with a high-end espresso bar and French baked goods. It has 18-foot dining room ceilings, indoor and outdoor seating for over 350, and proposed catering services. "Given the Commonwealth's current budget crisis, is such a restaurant necessary? Does it not fly in the face of assertions that the building's location will be a boon for downtown businesses?" asked Hatchett. |
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