Intermodal Authority Holds Long Intense Discussion on Current Inability to Pay Bills

The Southeast Intermodal Authority met on August 15, 2012 in Monticello.  There were four of the twelve members present and two more attended by written proxy.

The meeting was contentious from the onset as the board immediately went into a discussion of cash flow issues and the fact that numerous bills are past due including one from T&T Construction in the amount of $278,000.00.  Mr. Tracy Rawls, owner of T&T was present and indicated he had pulled off the job pending being paid.  He indicated he had borrowed a substantial amount of money to cover his costs while waiting upon payment from the Authority.  Mr. Rawls stated that he wanted to be exempt from liability for the work he has completed should there be substantial rain before he can complete more work.  There is a danger that repairs could be costly.

Board members Freddie Mobley and Roger George both strongly voiced their opinion that Mr. Rawls and all others owed should be paid, and that the whole process had not been properly and timely handled.  Discussion went back and forth for a lengthy period of time between board members, board chairman John Lipton, the board's engineer and numerous others present including Mr. Rawls and the Mayors of Warren and Monticello and the County Judges for Bradley and Drew County.


The Intermodal Board has in the past authorized the borrowing of a $1 million revolving line of credit from local area banks to pay bills pending receipt of several grants and local funding.  For some reason the loan is not yet approved and the time frame is unknown although it is hoped it will be completed very soon.  The discussion involved whether or not there will be sufficient local funding to pay the contracts and future interest payments.

At one point in the meeting Chairman Lipton stated, "The authority may have bit off more than we can chew."

A motion was approved to pay T&T Construction $150,000.00 and assume responsibility for part of the interest incurred on the loan taken out by the company to help them get by.  The board continued to discuss problems being experience and the need for the executive committee to meet to approve payments so grant dollars could be requested faster.

Authority members continued to voice their unhappiness with the current state of events and stated over and over that financial management had to be better provided, and the board must not rubber stamp contracts without knowing precisely how each would be paid.

Following the meeting was difficult at times, and it was obvious that a number of people present felt the situation was "embarrassing".  It appeared most were trying to comprehend the problems and what needed to be done.

Judge Keith Neely of Bradley County told the Chairman that he had repeatedly told the Authority he had no more local money to contribute.  The Judge sternly told the board that one private contractor has already been mistreated and he did not plan to see others receive similar treatment.

Judge Lampkin of Drew County likewise voiced his concern and said Drew County's next payment of some $44,000 was the last amount budgeted for 2012.

The engineer told T&T Construction that the company had a responsibility to protect the work already completed and he urged the board not to assume liability if rain sets in.  Judge Neely vigorously disagreed and told the engineer that T&T Construction had done their job and the Authority was at fault.

Near the end of the meeting Kenny Gober, executive director of Yellow Bend Port, gave a report on the status of traffic at the port.  He stated the Mississippi River was so low that barges are having to be loaded lighter.  He told the board Yellow Bend continues to desire to work closely with the Intermodal Authority.

Other comments were made about progress that has been made and the hope that the Intermodal can help spur economic growth in South Arkansas.  The board took a strong position and told the engineer not to proceede with plans to build a water tank until all finances were properly in order and funding was clearly appropriated.