LOCAL ENGINEER REPRIMANDED FOR ETHICS VIOLATION - Issue Reportedly Connected To Calhoun Water Project

(02/24/2014)
By David Hedges, Publisher
The Times Record

A Spencer man has been reprimanded for ethical violations by a state board that oversees engineers.

James B. Hildreth of Boyles & Hildreth Consulting Engineers Inc. is named in a consent order issued by the W.Va. State Board of Registration for Professional Engineers.

The order came after the board filed a complaint against Hildreth for "conduct likely to deceive, defraud, or harm the public" and multiple ethics violations.

Hildreth disputed the allegations but agreed to accept the findings and pay costs of $1,000 to the board.

The complaint said Hildreth "failed to represent himself before the public in an objective and truthful manner" when he recommended his client, a public service district, award a contract to someone other than the lowest bidder without adequate justification.

The complaint appears to involve Hildreth's work for Mt. Zion Public Service District, although the PSD is not identified by name in the complaint.

The complaint also alleged Hildreth failed to disclose possible conflicts of interest, which may have resulted in financial or other consideration that amounted to ethical violations.

The complaint was filed in 2009, the year Hildreth was sued in Calhoun Circuit Court by a contractor who was low bidder on a $5 million water line extension undertaken by Mt. Zion PSD.

Ronald Lane Inc. of Arnoldsburg was awarded the job, before the PSD, at Hildreth's urging, reversed its action and awarded the contract to another firm. Bruce Allen Inc.

The consent order, agreed to by Hildreth, says he initiated meetings with each member of the PSD board, which the complaint says "violated the spirit of West Virginia law relating to open government proceedings in that (Hildreth) could and should have addressed matters relating to the bid award during PSD meetings."

The complaint also said Hildreth had an outstanding loan with a former partner who was often utilized by contractors recommended by Hildreth. This potential conflict of interest was not disclosed to the PSD in a timely manner, the order says.

The former partner was identified as Bowers Contracting Services in the complaint, which said the conflicts may have influenced Hildreth's professional judgement and resulted in some financial consideration in violation of the rules of professional responsibility.

The consent order, filed in September, 2013 said Hildreth denied the loan was a factor in any recommendations he made regarding the awarding of the contract, but he admitted it could appear to influence his judgment.

In the consent order, Hildreth said he faithfully served the interests of his client but acknowledged that circumstances may have created the perception in the minds of others that the rules of professional responsibility were violated.

In the consent order signed by Hildreth and board president Edward L. Robinson, Hildreth accepted the findings of the board and disciplinary action and agreed to pay a administrative costs of $1,000.

Any violations of the terms of the order shall be immediate cause for further disciplinary action by the board, the order states.

The same year the complaint was filed Hildreth was sued by Lane and another contractor, Welding, Inc. in Calhoun Circuit Court.

In addition to Lane's claims of bid interference by Hildreth, the lawsuit also said Welding Inc. was the low bidder on a storage tank that was part of the project but Hildreth cited a technicality in refusing to even open the bid.

Court files indicate the lawsuit went to mediation in May 2012.

In August of that year, Calhoun Circuit Judge David Nibert granted a request by attorneys to dismiss the suit indicating a settlement had been reached.