LONG BEACH (KNX) — A new audit revealed the city of Long Beach overpaid repairs for its iconic Queen Mary ship five years ago.
In 2016, the city reportedly shelled out $23 million for repairs to the ship’s previous operator Urban Commons Queensway, LLC. Those projects were not finished, the audit found.
Laura Doud, Long Beach city auditor, reported there was still $23 million in repairs that were needed for the ship.
The audit also disclosed that Urban Commons didn’t clear up how much work some of the projects actually needed nor did it give payment information for work performed by subcontractors. The operator also reportedly didn’t properly inspect its subcontractors.
Doud said the city “paid more than necessary” when it came to some of the projects.
“We do know that only seven of the 27 repair projects were completed and that a lack of sufficient management oversight contributed to these problems,” she said in a statement.
“The City’s funds were at risk, because the City used its own cash as well as City issued bonds for the $23 million in upfront funds and ultimately ended up making the bond payment for $2.4 million when it came due last year since revenues expected to fund this payment were not realized.”
Urban Commons filed for Chapter 11 bankruptcy in January, leaving the ship in the hands of the city. Since then, the city of Long Beach has debated about the ship’s future with some council members saying the ship should be dismantled and others asking to keep it as is.
Some residents are weighing in with some saying enough is enough.
“We already spent $23 million. So, why spend more?” Carlissa Gonzalez, a Long Beach resident, told KCBS-TV.
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