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Mounds View City Council February 26, 2007 <br />Regular Meeting Page 8 <br /> <br /> 1 <br />Mr. Jay indicated it was a plea agreement to one of the counts. 2 <br /> 3 <br />William Werner said that the south side of County 10 there was a segment of sidewalk going to 4 <br />the library and out and asked whether that is still included in the project. 5 <br /> 6 <br />Council indicated it is not. 7 <br /> 8 <br />MOTION/SECOND: Stigney/Mueller. To Waive the Reading and Approve Resolution 7020 9 <br />With Statement of 1A with Jay Brothers and Item 3B Bid Alternate One Removal of Board Walk 10 <br />Bump out. 11 <br /> 12 <br />Acting Mayor Stigney said that regardless of money involvement with something else this is a 13 <br />construction project with a trailway and they have performed satisfactorily with other projects 14 <br />and their bid is $47,000 lower and there are bonds to cover the City should they not perform as 15 <br />required. 16 <br /> 17 <br />Council Member Mueller asked what year the situation took place in. 18 <br /> 19 <br />Mr. Jay indicated that it was in 2001. 20 <br /> 21 <br />Council Member Mueller indicated that a lot of time has transpired and a lot of good work has 22 <br />been done by them for the City and other cities are happy with the work. She then said that if 23 <br />there was an issue with having the bid come in the City should have informed Mr. Jay that he 24 <br />was not eligible for bidding. 25 <br /> 26 <br />City Attorney Riggs said that this is a debarment with an issue relating to something other than 27 <br />performance issues and there is a performance history with this contractor. He then said that the 28 <br />recommendation of Staff is that it is appropriate for the City to accept this bid, as the issue was 29 <br />something completely different than for performance. 30 <br /> 31 <br />City Attorney Riggs indicated that they are not on the State Debarment list they are on the 32 <br />Department of Administration’s list. 33 <br /> 34 <br />Council Member Flaherty said that he feels it is incumbent on this Council to work with 35 <br />companies that have ethics and integrity and he would like a synopsis of the situation. 36 <br /> 37 <br />Mr. Jay said that in 2001 they had 90 employees in seven states and were involved in 38 <br />communication construction building communication systems. He then said that 911 happened 39 <br />and all of the work under contract was cancelled and they had all the equipment to support those 40 <br />employees and kept them employed for as long as they could and then started laying them off and 41 <br />attempted to sell equipment. He then said that they got behind in obligations and one was to the 42 <br />pension fund. He further said that in the spring of 2002 the federal government came into see 43 <br />why they were behind and had lost $1 million in 2001 and he was told to file bankruptcy but said 44 <br />he wanted to work through it. 45