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HomeMy WebLinkAboutOrdinance 29-2002 Ordinance No. No. 29-02 AN ORDINANCE REPEALING ORDINANCE NO. 25-98 AND PERTAINING TO DISPOSITION OF CONTRACTS DECLARED VOID PURSUANT TO SDCL 5-18-19 IN THE CITY OF BROOKINGS, SOUTH DAKOTA Be It Ordained And Enacted By The Council Of The City Of Brookings, State Of South Dakota, As Follows: I. Brookings Ordinance 25-98, which pertains to the disposition of contracts declared void pursuant to SDCL 5-18-19, has been declared unconstitutional by the South Dakota Supreme Court. Accordingly, Brookings Ordinance 25-98 is, in all respects, hereby repealed. II. Any or all ordinances in conflict herewith are hereby repealed. FIRST READING: December 10, 2002 SECOND READING: December 17, 2002 PUBLISHED: January 2, 2003 CITY OF BROOKINGS -40:1* • N,,,,, Virgil . erriott, ayor ',,ckk .15"1 Shari Thornes, City Clerk 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. 9-�Qe j w 14-k, FIRST READING: November 17, 1998 CD - �� -v� SECOND READING: November 24, 1998 PUBLISHED: December 1, 1998 CITY OF BROOKINGS Mayor ATTEST: Finance Officer