A $610,000 NO-BID contract was approved by the Signal Hill City Council for architectural design services for the new library project. On Aug. 16, only Councilmember Ed Wilson voted against the NO-BID proposal. He told his council colleagues and Ken Farfsing, city manager, that all contracts above a certain amount should go out to bid. But, council members Tina Hansen, Larry Forester and Ellen Ward (Michael Noll was absent) saw no problem with the city manager's idea.
The NO-BID decision is even more troublesome since it contradicts the city's own financial policy to use a competitive bidding process to keep costs down. And, in these days of Signal Hill budget deficits, going out to bid is good, responsible fiscal policy. But, it's clear that keeping costs down is not a priority.
The NO-BID contract will be paid out of a $8,000,000 bond issued by the city's redevelopment agency. Right now, redevelopment agencies are working in very murky waters. The state legislature wants to get rid of them, take uncommitted agency money, and pay whatever is legally required. The state Supreme Court is now involved. Agencies are trying to figure out what they can legally do.
Some, like Long Beach, have opted to be very careful. Why? The decisions made by redevelopment agencies are linked to the city-side of finances. It's important to be careful.
If the state wins in court and sees the $610,000 NO-BID contract, the state may reject it and Signal Hill may get stuck with a bill it can not afford.
That NO-BID decision approved by just three votes ignores the basic principles of strong fiscal responsibility and careful management.
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