by Glenn Tschimpke
Staff Writer
Duval County property appraiser Ernie Mastroianni’s quest to replace his agency’s aging computer system has reached the courtroom.
In a three-way legal tangle between Mastroianni, the City and vendor Software Technologies, Inc., the battle over who will replace the property appraiser’s computer system and over $1 million in taxpayer money are at stake.
In May 2001, Mastroianni contracted with STI to replace the existing computer system in the property appraiser’s office. STI would provide all necessary hardware and software for the conversion. The system, which costs $1.16 million, would be paid in 16 installments of $72,000. As part of the agreement, the first four payments would be deferred, making the first payment due Oct. 15, 2001.
The City intervened, expressing concern with both the vendor and the way Mastroianni contracted them.
STI began work in June, but received no payments since details of the deal were being ironed out by City attorneys. Last December, STI sued Mastroianni for the unpaid balance, which, as of March 31, totaled $653,490. In January, Mastroianni in turn sued the City.
The problem lies in the property appraiser’s division of responsibility to both the City and the State and also what City officials indicate is a cavalier attitude on the part of Mastroianni. The property appraiser’s office is governed by the Florida Department of Revenue, which approves the agency’s budget. The City then funds the approved budget, but can also appeal if it deems the amount inappropriate. While Mastroianni went through a selection process before he chose STI, it was not within City guidelines. Even though STI is a Department of Revenue-approved vendor, they do not automatically pass the City’s criteria. The City also asked Mastroianni to issue a Request for Proposal — a City procedure — to select a vendor, which Mastroianni did not do. Through it all, Mastroianni insists he has done nothing wrong.
“We have been going back and forth and back and forth,” he said of his battle with the City. “The City has no right to dictate what kind of equipment we should buy. The Department of Revenue states we don’t have to do an RFP if the company is an approved vendor.”
City attorney Steve Rohan outlined some of the sticking points that are keeping the matter from being resolved. Among them are STI’s software and its compatibility with City software — the property appraiser’s computers must be able to communicate with the City’s computers without glitches. Rohan also expressed concern with STI and its product’s future viability.
“When you’re dealing with information technology, a lot of businesses tend to go out of business or their systems become obsolete,” he said. “That may be nice if [STI] is an approved contractor, but we don’t know if their stuff is appropriate for the City.”
The initial contract between Mastroianni and STI was also a concern. At about 20 pages in length, City attorneys were skeptical of the appropriate level of detail and were worried that too many holes in the contract could leave the City vulnerable if problems arose in the future.
Finally, jurisdictional issues arose. City officials feel very strongly about how constitutional officers spend City money. Mastroianni says he’s governed by the State. The City says not quite.
“He’s got some duties to the State that we can’t cast judgment on,” said Rohan. “But when it comes to the number of employees or the type of equipment he buys, the City has a say.”
STI has started some work, according to Mastroianni. So far, they have done some software conversion, but have installed no hardware.
Mastroianni, eager to put the matter in the past, insists “We have done what [the City] has told us to do.”
From here, the matter could be handled a number of ways. The City could ask Mastroianni to start from scratch and issue a new RFP seeking a vendor to replace his computer system. Or a City-approved contract could be written, which would allow STI to complete the job.
“The next course of action is to try to work this out amicably,” said Rohan. “We’re hopeful it will all be worked out.”