HomeMy WebLinkAboutOrdinance 25-1998 � , _
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ORDINANCE NO. 25-98
AN ORDINANCE PROVIDING FOR DISPOSITION OF CONTRACTS DECLARED
VOID PURSUANT TO SDCL 5-18-19
WHEREAS, the City of Brookings is presently governed by the provisions of SDCL
Chapter 5-18 pertaining to Public Contracts awarded on competitive bids, and
WHEREAS, said law fails to provide for appropriate disposition of contracts which are
declared void pursuant to the provisions of SDCL 5-18-19, after work has been commenced or
completed, and
WHEREAS,the failure to prescribe appropriate measures for dealing with contracts
declared void may create uncertainty and financial hardship on the part of bidders and
contractors and is not in the local public interest, and
WHEREAS, it is in the best interests of the City to provide on a local basis for these
contingencies,now therefore,
BE IT ORDAINED BY THE GOVERNING BODY OF THE CITY OF BROOKINGS:
A. That in the event a contract, or any part thereof, is declared void pursuant to the
provisions of SDCL 5-18-19 in a court of competent jurisdiction and there is no finding of fraud,
corruption, collusion, or graft on the part of the contracting parties, then payment under said
contract shall be made in the following manner, to-wit:
1. If the terms of the contract were otherwise complied with,then the amount
originally agreed to be paid shall be paid so long as it is deemed to be
reasonable under the circumstances, and the City has received fair value for
the services rendered.
2. In the event the conditions described in paragraph 1 above are not established,
then the amount paid shall be derived on the equitable basis of quantum
meruit.
3. In the event there is found to be fraud, collusion, corruption or graft on the
part of the contracting parties, in addition to any other civil or criminal
penalties,no payments shall be made to the contractor and any payments
previously made shall be recouped from the contractor.
B. The remedies set forth herein shall not be applicable if an action for preliminary
and permanent injunction is initiated in a Court of competent jurisdiction, seeking to
enjoin performance of the alleged unlawful contract within ten(10) days following
publication of the City's approval of said contract.
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FIRST READING: November 17, 1998
SECOND READING: November 24, 1998
PUBLISHED: December 1, 1998
CITY OF BROOKINGS
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