By Kasia Kopec, The Times Leader, Wilkes-Barre, Pa. Knight Ridder/Tribune Business News
Aug. 20--KINGSTON, Pa.--Members of the Independent Fire Company charge the municipality is circumventing the bidding process in selecting a construction manager for the $3 million central fire station project.
Mayor Jim Haggerty charges Independent officials, who have been invited to be a partner in the project but who have so far declined, of making unfounded accusations out of frustration, not concern for the community.
The argument stems from the selection of Sordoni Construction Services Inc. to oversee construction of the station on Wyoming Avenue without seeking bids.
Mike Dogal, a trustee of Independent, said he and others in the company are worried that could lead to legal challenges down the road. Municipalities are re...uired to seek bids for any work costing $10,000 or more.
Haggerty said bids are not re...uired in this case, because the Columbian Volunteer Fire department, not the municipality, is doing the project.
'The Columbian owns the land, the Columbian hired the architect and the Columbian hired the construction manager,' said Haggerty. 'And as a private, nonprofit organization, the Columbian is not re...uired to seek bids.'
Dogal said that is splitting hairs, since the municipality, not the Columbian, will own the fire station when it is completed at the end of 2004.
'They're circumventing the bidding process by having the Columbian make all the arrangements,' said Dogal, who worries the process leaves the municipality, and its partners in the fire station project, vulnerable to lawsuits from residents and potential contractors who weren't given a chance to bid on the work.
The lack of a bidding process also means there is no guarantee the fire station planners are getting the best deal for taxpayers, who will ultimately pay for the station, he added.
Dogal said the Independent's attorney, Michael Kostelansky, researched the matter and found case law supporting the company's concerns.
'Our lawyer has told us there are other municipalities that have been sued because they took this route and someone challenged it,' said Dogal.
Haggerty, who is also an attorney, said the argument is without merit. Moreover, he thinks the process undertaken by the Columbian will actually end up saving taxpayers money.
'I'd like them, or anyone, to prove to me how a bidding process guarantees the lowest price,' he said. 'I think hiring a construction manager with an agreement for a maximum price is the only way to guarantee that.'
Rick Ryman, president of the Columbian, said financial considerations had a lot to do with the department's decision to go with Sordoni.
In addition to serving as construction manager for the fire station project, Ryman said Sordoni has agreed to build the station with no payment re...uired until construction is complete.
'This way, we can get started right away and we can work on the financing as we move along,' Ryman said.
Though Ryman said the agreement with Sordoni re...uires no draw schedule, Haggerty said his understanding is that the Columbian is paying for the work in full.
'These volunteer fire companies have a lot of money,' he said.
Allan Kluger, an attorney representing the Columbian, said the Columbian will borrow approximately $2.2 million to cover the balance of construction costs.
'Sordoni is financing it, or they're seeing to the financing,' said Kluger, who added the rate is still being negotiated.
Dogal said his understanding of the agreement is that Sordoni is assuming all costs until construction is complete, at which point the building will be conveyed to the municipality.
Haggerty said there is an agreement being drawn up under which the municipality will take out a bond to cover costs of purchasing the station and new fire e...uipment, but he said the agreement in no way restricts the Columbian's choice of contractors.
Dean Fernsler, a local government policy specialist with the Governor's Center for Local Government, said in his opinion Haggerty is right.
'I don't see any impropriety there,' he said. 'The fact that there is an agreement in place saying that if there is a station built the municipality will buy it, doesn't mean the fire department building the station is bound by the same laws the municipality is.'
But Joseph Krumsky, another local government policy specialist with the Governor's Center, said the process, at the very least, appears improper. Though he deferred to Fernsler, who works regularly with fire companies and municipalities, Krumsky said the scenario seems unusual.
'I'm no lawyer, but I don't think you can do that,' he said.
Haggerty said Harry Mattern, the municipality's solicitor, Kluger, and Eugene Roth, who represents Sordoni, have reviewed the proposals and found no problems.
The Independent's worries stem from self interest, Haggerty said.
'The real issue here isn't their concern for the health and safety of the residents of Kingston,' said Haggerty. 'The real issue, the thing they're really angry about, is that we're taking away, what is essentially their clubhouse over there on Sprague Avenue.'
Dogal disputed the accusation saying the Independent only wants to see the job done right.
'Even if what they're doing isn't illegal, it's certainly not ethical,' said Dogal. 'That's our worry.'
To see more of The Times Leader, or to subscribe to the newspaper, go to http://www.timesleader.com
(c) 2003, The Times Leader, Wilkes-Barre, Pa. Distributed by Knight Ridder/Tribune Business News.
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