The city is again being threatened with a lawsuit from a private company unhappy with Hamilton 's process of choosing a winning bidder. Lawyers for Herhof Canada Technik Inc. have written to the city alleging that their company should have won the bid to build a centralized composting facility.

A $29 million contract was awarded earlier this summer to Maple Reinders Constructors Ltd., the lowest bidder, but Herhof's lawyers say the city changed the rules after the bids were submitted. They contend that the city requirements for the composting facility included the ability to handle sanitary products including disposable diapers and feminine sanitary products, but that Maple Reinders successful bid specifically excluded these materials.

The lawyers say "the Herhof proposal would have been considerably less expensive if there was no mandatory requirement to accept sanitary products and diapers." They are asking the city to reopen the bidding process and say if this doesn't happen they expect "to commence proceedings against the City". The letter is dated August 18 and asks for a reply by August 26. It will be considered at Monday's meeting of the city public works committee.

The price of the composting facility substantially exceeded the expectations of the city. They had anticipated that both a composting and a recycling facility could be built for $30 million. Instead the bids came in at over $50 million. As a result, city council decided to only proceed with the composting aspect and postpone a $21.2 million materials recycling facility.

The letter from Herhof's lawyers can be viewed at
http://www.city.hamilton.on.ca/Clerk/
agendas-minutes-reports/public-works/
2004/Sept20/Item%209.1.pdf.