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South Bend Commission <br />Regular Mee Jedevelopment <br />ing - February 20, 1981 <br />6. NEW BUSINESS <br />c. continued... <br />Mr. Butler: Bob, let me interrupt just for a moment <br />so that we know where the ground rules are. Basically, <br />as I understand the process, these matters are sub- <br />mit ed to the Redevelopment Commission for review and <br />approval, not under any statutory requirement or even <br />at this point under requirement of ordinance with re- <br />spect to the loans. My point being that basically <br />what the tommission and the staff of the Redevelop- <br />meni Department can do is make suggestions to the <br />Bur au of Housing. <br />Mr. McMahon: It formally has to go through a body <br />that has contracting power, and two choices in the <br />Cit would be the Board of Public Works and the Re- <br />dev lopment Commission. If I am not mistaken, HUD <br />doe require it to go through a body such as that, <br />it can't be done internally at the Bureau and re- <br />ferred down to HUD. I understand why when it is a <br />loar the homeowner goes through the process them - <br />sel es and calls thomever he may wish. Now we will <br />haVE it set up so that he can also receive a call from <br />other contractors. What I don't understand is that <br />if I was a homeowner with one of those loans and I <br />got three or four quotes, but I personally just don't <br />want to deal with the low man, since it is my loan <br />and I am paying it back, shouldn't I have the option <br />to o with the second man if I would sign something <br />and send it back to you and say in writing, "I don't <br />wani to go with that low man but want to pay the <br />price of having the second man in my house. <br />Mrs Baumgartner: That provision is being written <br />int our contracts by the Legal,Department now. <br />Up until this time that provision has not been avail - <br />abl and the specific incident Mr. Brown is talking <br />abo t was a bid job. <br />Mr.lMcMahon: It was a grant and not a loan. <br />Mrs Baumgartner: It was a loan, but the loan had <br />been formally bid and so this particular contractor <br />was then the lowest and best bidder, and there were <br />no provisions in the contract that had anything to <br />do with homeowner preference. In essence, what the <br />homeowner did by allowing himself to be a part of <br />the bid process was they waived their particular <br />preference in favor of the actual bid process, and <br />it went to the lowest and best bidder. <br />20 <br />