Arizona Attorney General Chris Mays is investigating a $30 million broadband project in Yuma County that Republican lawmakers say involved an illegal gift of public funds.
The attorney general's office sent a letter to the county Thursday, asking county officials to respond by Feb. 23 to the complaint from state House Republicans that sparked the Mays investigation.
The complaint was filed Monday by Rep. Lauryn Hendricks, R-Gilbert. Joseph Czaplik, Republican Scottsdale; Justin Heap, R-Mesa; Alexander Kolodin, Republican Scottsdale; David Marshall, Republican Snowflake; and Barbara Parker, R-Mesa.
“We cannot ignore Yuma County's clear disregard for Arizona law and the lack of oversight and accountability surrounding this important project,” the lawmakers said in a news release.
The complaint alleges that federal coronavirus relief funds were improperly provided to unlicensed out-of-state contractors.
At the Yuma County Board of Supervisors meeting on December 20, 2021, supervisors approved the county to enter into negotiations with Nebraska-based ALLO Communications. Prior to approval, supervisors questioned whether the county had properly followed the request for proposals process, according to meeting minutes.
A few weeks later, on January 26, 2022, Barry Olsen, an attorney representing Gila Electronics, stated that when considering approval of the master contract with ALLO, ALLO did not have an Arizona contractor license. The Board of Directors was notified.
ALLO President Brad Moline and ALLO Attorney Mike Pence told the board that they will comply with all state regulations and do not anticipate any problems obtaining a contractor license.
Yuma County Deputy Attorney Bill Kerekes advised regulators to make the master contract with ALLO conditional on proof of a contractor license, noting that it would be illegal and the contract would be void without a license. did.
“Unfortunately, we also learned of allegations that after the master contract was signed, ALLO changed work orders, increased prices, and significantly increased terms and conditions related to hourly rates and hours spent on design and permitting. This is a disservice to taxpayers,” the Republican lawmakers wrote in the complaint.
They also claimed that there were several bids by qualified vendors that were more advantageous to Yuma-Conti residents, but the board “inexplicably” rejected those proposals in favor of ineligible vendors.
The issue is the subject of a lawsuit in Yuma County Superior Court, but lawmakers sought Mays' intervention by filing an SB1487 complaint. It allows lawmakers to ask the attorney general's office to investigate local governments that have enacted policies they believe violate state law.
The complaint is named after SB 1487, signed by former Gov. Doug Ducey in 2016. Cities, towns, and counties found to be violating state law typically must rescind illegal policies or lose state-shared revenue.
Investigations into SB 1487 have slowed since Mays, a Democrat, took office in 2023. The charges have primarily been a tool used by Republican lawmakers to block local policies.
Last year, Rep. Quang Nguyen (R-Prescott Valley) and Rep. Selina Bliss (R-Prescott) filed a lawsuit against the city of Phoenix, accusing the city of illegally transferring about 600 unclaimed firearms to Ukraine. Mays has not sought any punitive action since then. The city repealed the ordinance and the firearms have already been shipped.
