Agenda - Council - 10/28/1997 - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I I I CASE NO. ~ BRUSH CHIPPING CONTRACT/BID ISSUES By: William K. Goodrich, city Attorney Background: At the October 14, 1997 Council meeting, Staff advised you of concerns relating to the obtaining of quotes for the brush chipping contract. Because of those concerns Council directed Staff to obtain formal bids. After the October 14 meeting, Staff became aware that Southern Minnesota Construction Co., Inc. ("SMC") had on October 14, 1997 commenced brush chipping at the A1 Pearson farm. This action by SMC was based on an October 3, 1997 letter proposal from SMC, which letter the city's Finance Officer signed on behalf of the City, confirming and accepting the proposal and contract. The Finance office signed the letter on October 9, 1997. A copy of the October 3, 1997 letter is attached. The letter was signed by the Finance Officer in good faith based on two quotes received and the suggestion by FEMA staff that the brush chipping was considered an emergency and needed to get started as soon as possible. On October 10, 1997, because of the above referenced "quote issues" the Finance Officer verbally advised an SMC manager not to proceed, however, this information apparently was not communicated to the right person, as SMC did commence chipping brush on October 14, 1997. The fact that SMC commenced work was unknown to Staff at the time of the Council meeting on October 14. The only City Council action on this issue p~ior to October 14 was a resolution adopted August 12, 1997 identifying the funding source for future brush chipping. A copy of this resolution is attached. The Council to date has not authorized a contract with SMC. However, it is my opinion that SMC has a good legal argument to the effect that, notwithstanding no city Council authorization, it relied on the Finance officer's apparent authority accepting its October 3, 1997 letter proposal and a legally binding contract between the city and SMC does exist. As might be expected, SMC has taken the position that it has a contract with the city and wants to proceed. In the meantime, the City is advertising for formal bids for the brush chipping work. These bids are to be received on October 31, 1997 Recommendation: My recommendation is: (1) (2) To formally award the brush chipping contract to SMC based on their October 3, 1997 quote and letter proposal. At a subsequent meeting, reject all bids to be received as a result of the brush chipping bid solicitation.