02/20/89 Board of Public Works Minutes

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REGULAR MEETING FEBRUARy 20, L989 The regular meeting of the Board of Public Works was convened at 9:35 a.m. on Monday, February 20, 1989, by Board President John E. Leszczynski, with Mr. Leszczynski and Mrs. Patricia E. DeClercq present. Board member Ms. Katherine Humphreys was not in attendance. Also present was Assistant City Attorney Marva Leonard -Dent. APPROVE MINUTES OF PREVIOUS MEETING Upon a motion made by Mrs. DeClercq, seconded by Mr. Leszczynski and carried, the minutes of the February 13, 1989, regular meeting of the Board were approved. ADOPT RESOLUTION NO. 6-1989 - INDICATING SUPPORT OF CONTRACT AWARD - WASTEWATER TREATMENT PLANT IMPROVEMENTS PROJECT City Attorney Richard A. Nussbaum, II was present to review for the Board the status of the bid awards for the Wastewater Treatment Plant Improvements Project. Mr. Nussbaum began his presentation by explaining that on December 12, 1988 the Board of Public Works opened bids for the Wastewater Treatment Plant Improvements Project. The low bid was received from Hagerman Construction Company of Fort Wayne, Indiana and was in an amount slightly over $16 million dollars for the three (3) Contracts. The day following the bid opening, the Board received a letter from Hagerman Construction stating their desire to withdraw their bid because of errors that were made in the computation of the bid. At that time, the City asked for further clarification from Hagerman Construction as to what those errors were and representatives from the City and Hagerman Construction did meet to discuss the matter. It was determined that the bid was missing over one half million dollars in costs for concrete pilings which were required as part of the project. At that time Hagerman Construction renewed their request to withdraw their bid. In consultation with the Indiana Department of Environmental Management, it was determined that the City should accept the bid of Hagerman Construction and award the contract. Therefore, on January 23, 1989 the bid was awarded to Hagerman Construction. Mr. Nussbaum stated that it was expected that Hagerman Construction would turn down the Notice of Award at which time the City would take further action against them and then proceed to award to the next lowest bidder. Prior to the ten (10) day period allowed for the return of the executed Notice of Award, Hagerman Construction filed suit in the Allen Superior Court against the City requesting that a Judge enter a decision that they had a legal right to withdraw their bid. An expedited Hearing was held on February 8, 1989 and a decision was received by the City on February 10, 1989. In that decision the court found that under Indiana law Hagerman Construction was entitled to withdraw their bid due to the fact that it was submitted in good faith but did contain errors. This decision put the City in the position to look at the next lowest bidder and make a recommendation to the Indiana Department of Environmental Management regarding an award to the next lowest bidder. Mr. Nussbaum further stated that his review of the Court decision leads him to believe the decision was correct and was the legal basis for the bid to be withdrawn. He advised that it is important to note that the City did not let the bid be voluntarily withdrawn but it was ordered by the Court. He stated that this was necessary due to the fact that if at a future time there is an audit of the grant involved in the project there will be an explanation of why the lowest bidder was not accepted and an explanation as to why Hagerman. Construction was entitled to withdraw their bid.