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Council hears concerns about procurement, change orders and consultant performance on Hidden Heroes housing project
Summary
Council and public commenters raised procurement irregularities and contractor performance concerns tied to the Hidden Heroes workforce-housing project, warning improper procurement could jeopardize access to $2 million in federal funds and generate large change orders.
During discussion of PEDC contracts and the Hidden Heroes workforce housing project, councilmembers and public commenters described procurement problems and construction issues linked to a contractor identified in the agenda.
One councilmember criticized the procurement and bidding process, saying a competing bidder lacked a bid bond and that a consultant allegedly brought untested fill to a foundation that could not support concrete. The speaker said the consultant sought a change order for "300 or $400,000" to address the problem and argued those costs should be borne by the contractor, not the city. Assistant City Manager Nicole Ferrehan clarified the Climate Consultants contract is with the EDC and that "the scope of work in that contract has in fact run out," and staff have not seen formal procurement records for phase 1 activity. Council members expressed concern that procurement irregularities could jeopardize the city's ability to use a $2,000,000 federal award for the project.
