LV firm gets $7 million contract to build garage

Greg Harman

Wednesday, Sept. 20, 2000 | 11:15 a.m.

A Las Vegas construction company was awarded a $7 million parking garage contract Tuesday by the Henderson City Council, despite allegations of flaws in the company's bid and objections by the Southern California-Nevada Regional Council of Carpenters over the choice of subcontractor.

Union representatives meeting with city staff members earlier in the day failed to sway the council from its unanimous approval of Korte-Bellew & Associates Construction Co. for the 184,0000-square- foot, five-story parking garage intended to service an expanding City Hall.

City Attorney Shauna Hughes said the city didn't have a choice.

"We do take these things seriously, but there are certain matters that are beyond our control," Hughes said. "We don't believe we have any options but to award the contract to the qualified low bidder."

The city attorney's office recommended awarding the contract to Korte-Bellew to avoid possible lawsuits.

Jim Sala, director of organizing for the regional carpenters union, urged the council to consider flaws in Korte-Bellew's bid package, the naming of an unlicensed subcontractor for concrete work and costly labor disputes on many of the company's other major contracts in the region before making their decision.

Korte-Bellew originally named a Salt Lake City company not licensed to practice in Nevada as its subcontractor for concrete work, instead of one of three companies recommended by the city.

When advised of the problem, the company again avoided the city's recommendation, instead hiring Precision Concrete as its subcontractor.

That's when the carpenter's union, which filled a pocket of the council chambers Tuesday night with blue union shirts, got involved.

According to documents submitted to the council by Lori Ashton, a carpenters union representative, Precision Concrete has been cited for more than 35 violation of federal OSHA safety laws since 1989, 15 of which were classified as serious.

The company was forced to reinstate eight workers found to be wrongfully terminated in 1997 by the National Labor Relations Board and fined $24,000.

In 1998 Precision employees filed another round of complaints alleging the company threatened, intimidated or unfairly fired more than 80 workers. An administrative law judge found the company guilty of the charges in 1999 and the case has been appealed.

"We have serious concerns with this project," Sala told the council.

One alleged flaw of Korte-Bellew's bid package cited by Sala involves fire protection for the garage. Korte-Bellew allocated only $13,500 for the item while the two other lowest bidders calculated $135,000 for the service.

Steve Bellew, chairman of Korte-Bellew's board of directors, expressed confidence in his company, citing his more than 20 years of experience.

"I know my job. I know my business. We're very comfortable we can do the job," he said as he left the chambers.

Ashton said her union did not have a vested interest in which company received the contract. She pointed out that the second in line for the multimillion-dollar job, Clark & Sullivan Construction, did not use a unionized subcontractor.

Councilman Jack Clark said he was deeply concerned about the numerous charges against the company and said that "serious questions" exist about the company's willingness to operate in a conscientious manner.

Councilman Andy Hafen said he was comfortable with the city's ability to monitor its projects before the vote.

City Councilwoman Amanda Cyphers was absent.