News Photo by Reagan Voetberg Andy Shaw, owner of Andy Shaw Development and Construction, is seen speaking during public comment at the Alcona County Commission on Aging (ACCOA) meeting on Tuesday.

LINCOLN — A special board meeting of the Alcona County Commission on Aging (ACCOA) became combative on Tuesday during public comment, after claims were made that some contractors who were hired to build the new Sunrise Center have yet to be paid.

During a brief recess, someone called the police because of the heated exchanges and two Alcona County Sheriff’s Office deputies arrived just before the meeting reached its conclusion.

The meeting was held at the Alcona County Sunrise Center, which was built thanks to a nearly $13 million grant ACCOA received and was opened in July after there were several setbacks and controversy around the project.

The grant also funded eight bungalow-style homes for senior living at the location.

Two contractors that worked on the ACCOA’s $13 million Sunrise Center, which has become a community hub, made public comments at the meeting addressing the fact that eight contractors have not been paid for their work on the project. Attorney Michael Lamble, who represents Brad Smith, owner of Smith Electric, also made public comments at the meeting.

The board handed out agendas to the public that had “regular meeting” listed on them, along with business typically undertaken during regular meetings.

Board President Ryan Mendyka told the public that those agendas were in error and that the meeting would begin with new business with public comment to follow.

Former ACCOA board member Pam McKinnon was the first to speak during public comment.

“When I was on the board, we let (Ty Damon) talk to the credit union and other financial people about a line of credit and we were turned down to pay the extra million dollars that it cost for this building,” she said. “You got turned down, and instead of paying these tradespeople that are sitting here waiting for money…that I suggested when I left the board. That they needed to be paid, and promptly. There’s no reason why they can’t be paid. They’re looking at losing their businesses. They did the work. They deserve to be paid.”

Andy Shaw, owner of Andy Shaw Development and Construction, also addressed the board. He told The News on Tuesday that ACCOA owes him $500,000 and added that the total could be much higher if he hadn’t done some work pro bono or cut costs in other ways. He added that now the board wants to lower the amount they agreed to pay after the contracts were signed. Shaw said he currently has not placed a lien on the facility, like at least one other contractor, but said that he is considering it.

A lien is a legal claim against one’s property or assets that is used as collateral to satisfy a debt. Courts often issue liens when a debtor fails to pay a loan or other debt agreement.

“We’ve got trades that just happened to be at the end of the project. So we have say, 70 different companies that were fully paid who just happened to be at the beginning of the project. And so to go to these people that happen to be at the end of the project, eight of them, and then ask them to then take a 50% reduction on what is remaining owed to them, some people said 20 grand owed to them, another guy has $250,000. So I don’t think this is an appropriate action by whoever let this occur. This Herstein, going to trades negotiating them down, it’s just not right.”

Attorney Matt Herstein represents ACCOA in legal matters according to statements made by Mendyka at the meeting.

Herstein in a phone conversation confirmed that he represents ACCOA in legal matters, but there is no active litigation. He stated that there are “potential issues” coming up but declined to expand on that.

Lamble, who represents Smith, one of the contractors, also addressed the board.

“At your Sept. 20 meeting…your motion by Damon, seconded by Turek, to seek legal counsel from an attorney specializing in construction law,” Lamble said. “For purposes not limited to crafting a proposed payment plan for building projects tradesmen and vendors. I have gone through one year of your minutes, there is nothing in any of those minutes authorizing by this board the hiring of any attorney. So I don’t know who this Herstein guy is and I don’t really care. Now, we have a lien that has been filed and recorded …”

At that point, Lamble’s comment was interrupted by a board member.

“I respectfully ask that you have communications, which is your ethical responsibility, through our attorney,” the board member said.

“No, I don’t acknowledge that you have an attorney,” Lamble said. “It doesn’t exist. Your attorney, if there is one, has an obligation to go to court to file objections to the lien that has been properly placed. You need to pay your bill.”

Mendyka interrupted to end Lamble’s comment, and Smith, who was timing the comment, said that it had not been two minutes yet. Members of the public are allowed two minutes to speak during public comment at ACCOA board meetings.

“You wanna play games, alright. We’re going to adjourn this meeting for 20 minutes,” Mendyka said, correcting himself a moment later calling it a 20 minute recess.

“Board members, come with me please,” he said.

All board members filed out of the room leaving the public there until they returned. It is not known whether the board all went to one room to discuss matters in private. Such a maneuver could be a violation of the Open Meetings Act.

Smith told The News that he believes the police were called during the break, but it is uncertain who made the call to law enforcement.

When the board came back, Mendyka said that they had talked to their lawyers who had issued a statement.

“Upon further examination with our lawyers in the last couple minutes talking to them, we have a prepared statement. This is a public comment section. You are available for two minutes for that public comment. If you are a–”

Mendyka was cut off by an interjection from Lamble, but Mendyka continued.

“Since you’re an attorney, I’ll read you this version,” Mendyka said. “The Alcona County Commission on Aging is represented by counsel Matt Herstein with Deneweth, Vittiglio, and Sassak, P.C…This is our understanding that the…A hired attorney that is aware that the opposing party is represented by counsel can communicate only with the appropriate counsel. The ACCOA is not agreeable to speaking with any opposing attorney about this matter.”

“You have no attorney,” Lamble reiterated. “Because it takes a board resolution voted on by the board to hire an attorney. That was never done.”

Smith went up for public comment which Mendyka appeared to try and shut down.

Mendyka asked Smith if he was a vendor of the ACCOA, to which Smith replied in the affirmative. Mendyka attempted to read the statement from ACCOA’s lawyers again but Smith talked over him.

“The new generator you guys want is 200 some thousand dollars and you can’t afford to pay your other bills first. Maybe you should pay–maybe you should finish paying people before you add more to your list.”

Smith noted that ACCOA owes him over $260,000.

If Smith had not been allowed to make his public comment, that could have led to a violation of the Open Meetings Act.

Lamble said in a comment after the meeting that he has had multiple contractors for the project contact him about legal matters, although he only represents Smith at this time.

Mendyka declined a request to comment about claims made at the meeting.