Detroit Free Press from Detroit, Michigan • Page 2

2- A Thur March 13. DETROIT FltBB PRESS 7771 71 IT IS 9 Coii Sys tern rac Bidding mismanage 3 fP9 fix yx7 1 IWM" -v i ezng' Arrow Wrecking and Weissman Contracting who entered a joint bid, represent the only bidder for the city contract, qualified to bid for a state contract worth more than $950,000. MARK K. Herley, assistant housing director, and John V. Wickey, director of the Housing Commission's technical division, explained the city's system for evaluating demolition bids.

The winning bid Is compared with an estimate made by the commission's staff, The estimate is based on maps prepared by land appraisers when the property was first purchased. Although buildings already may be torn down or burned down, they are included in the city's estimate. Instead of using a house-by-house survey by an experienced wrecking appraiser, the ity relies on an estimate of 45-cents per square foot for tearing down the buildings, both frame and brick, both Zebowski's revised low bid of $999,989 was six percent higher than the city's estimated cost of the demolition. City official said they do not consider throwing out all bids unless the low bid is at least 10 percent higher than the estimate. The Detroit Housing Commission and federal urban renewal officials recommended approval of Zebrowski's bid.

Councilman Mel Ravitz held up approval of the contract, demanding that city housing officials answer several questions. After questioning the officials Wednesday, the council decided to vote on the contract this Thursday or Friday. THE COUNCIL action fol. lowed testimony from Alfred Berarducci, city engineer, who said that it is not necessary to investigate potential bidders, because the city requires the winning bidier meet performance and financial standards. Berarducci said Ravitz was mistaken In his belief that the residential and commercial.

There is no survey to see how much material might be sold for salvage. ALL FIVE bidders estimated the salvage value of the 15 square blocks of buildings at "Zero." "They almost always bid zero," Herley explained. they allow for salvage when they estimate their demolition costs. We only ask for the salvage estimate to satisfy the federal Tom Madden, federal urban renewal co-ordinator in Chicago, said his office approved the "zero" estimates because It has been told "there is little or no market for salvageable material In Detroit." Herley emphasized that the city does not pay $5,000 to clear a vacant lot. Before a contractor can demolish a house, Herley said a Housing Commission staff member must certify that the house is vacant.

"If there is no house, a proceed order will never be given," Herley said, "and the Bids to clear vacant lot: From $50 to $4,070 state prequalifies demolition later that the state does, In and Associates, is qualified by firms before accepting bids. fact, require such prequalifica- the Michigan High.fav Depart-However, a spokesman for tion for all bidders on demoli- the prequalification committee tion contracts. to bld on 8tate of the Michigan Highway De- tract worth $500,000 or less, partment told the Free Press The low bidder, Zebrowski according to state officials. Continued from Page 1A 9 pays two-thirds the cost of the contracts.) The Free Press investigation disclosed that the City of Detroit has few checks into the reliability or the logic of bids for contracts for clearing urban renewal land. Five bids on a contract for clearing 15 square blocks of houses, hospitals, stores and churches in Medical Center Rehabilitation Project in were opened in the offices of the Housing Commission Jan.

28. The land to be cleared Is a two-to-three block strip west of the Chrysler Freeway between Frederick and Canfield. Zebrowski Associates a Farmington firm that has won two previous urban renewal demolition contracts, was the apparent low bidder with a bid of $1,022,349. When the Housing Commission staff added up Zebrow-ski's estimates on the more than 300 individual parcels, this total dropped to $999,989. EV SECOND place was Nor- West Demolition Inc.

of Farm ington, whose 12 straight Jos' ling bids for city contracts in the past four years ranged as high as 132 percent mora than the winning bid. Nor-West's $1,038,639 bid was four percent over Zebrowski's revised total. Certain peculiarities in Nor' 1 West's bid were "not highly unusual," city officials said. For example, they were not npset because Nor-West's est! mator apparently crossed out a $137,750 estimate for tearing down Children's Hospital, and wrote In $300,000. This estimate, higher than that of any other bidder, was enough to throw the contract to Zebrowski, who estimated that it would cost $154,848 to tear down Children's Hospital.

Neither Carl J. Thorpe, president of Nor-West, nor Richard W. Zebrowski, president of Zebrowski and Associates, could be reached for comment Wednesday. ARROW Wrecking Inc. and Weissman Contracting Corp.

Submitted a joint bid of which was 19 percent above the winning bid. Lou Sarko, president of Arrow, said this week that his bid was based on an anticipated gross profit of 25 percent, with an anticipated ai-ter-tax profit of seven to eight percent. "I never colluded. I never got any money," said Sarko. f'l never got any special favors for side-stepping a job." In fourth place was Federal Wrecking Co.

Inc. of Detroit with a 41,498,849 bid. Mednis Wrecking Inc. of Detroit was the highest bidder, at $1,761,930. Not for Nixon LB Era Out The Window WASHINGTON (UPD A trick window put in the White House presidential bedroom for Lyndon B.

Johnson has been removed under orders of President Nixon. The window, a gift of FBI Director J. Edgar Hoover, could be operated from the bed. By pushing one button, the window would go up and by pushing another it would go down. "I had that taken out," Mr.

Nixon said at a congressional reception Tuesday night. "I was afraid if I pushed the button I would blow the world up." Firm Must List Weapon Permits The Wayne County concealed weapons licensing board has warned that private guard and detective agencies must submit by Saturday a list of all employes with concealed weapons permits. The rule, adopted last November, says the agencies must send the list by registered mail. Detroit tfmVtw On Guard for Over Century AN INDEPENDENT NEWSPAPER Jubllehed every week day mornlno and lundev mornlnq at Detroit, Michigan. 'Second Class Postage Paid at Detroit, Michigan." SUBSCRIPTION RATES BY CARRIER OR MOTOR ROUTE Dally Sunday Dally lundev Par Week .30 MAIL (exeent foreign or airmail) 1 Dally J.

Dally Sunday Sunday Only Only fist Year $46 80 931.36 S15.M Six Monthj 23.40 15.60 7.80 inree wonina 11.70 7.80 3.90 una womn tt.w y.w On Week 1.30 .30 TO SERVICEMEN uauy i cany Sunday Sunday $34.00 12.00 .00 Only Only One Year Six Month! Thre Month $16.00 $8.00 6.00 4.00 i.00 2.00 Full iddres (including house number, afreet or road) and remittance must accompany all mall order. Addrese The Detroit Free Press, Clrc. (Mail) Dept Detroit, Michigan 48231). MEMBER OF THE ASSOCIATED PRESS The Press It exclusively entitled to the use for reproduction of II news dispatches credited to or not otherwise credited In this paper and Blso to the losal news published herein. All rights of reproduction of special dispatches herein are also reserved.

'ADVERTISING REPRESENTATIVE Iranham Moloney, New York, Chlcaao. Atlanta. Charlotte, Kansas Citv, St, Louis. Los Anpeles, San Francisco, Minneapolis, Miami, Boston, Dallas, Detroit, New Orleans. Represented In Great Britain and Europe ey Associated American Newsaaoers, 12A St.

Hanover LSftdon W. Id England. 1 contractor will not be paid his estimated price for that (non-existent) building," THE CITY'S bid form lists', buildings at 685 Farnsworth, 691-693 Farnsworth, 604 Han-: cock, 690-692 Hancock, 543-Warren and 689 Garfield. The buildings are not there, the; Free Press found. Some of the lots appear to' have been vacant for Another lot, at 643 St.

Josa-fats Court, is listed as containing a frame house and a shed. The lot now contains only half a shed. In their 22 pages of lot-by lot estimates, the bidders generally followed the pattern, established by their final toU als. Zebrowski generally made the lowest estimate with Nor-West second lowest on each lot, and the others trailing in order. But on nine different where Nor-West apparency raised its estimates at the last minute, its bid soared above the third place and in some cases the fifth place bid.

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