Macomb Construction Firm Sues Detroit Water Dept. Over Bidding Ban

a Macomb Township construction company, has filed suit against the Detroit Water and Sewerage Department in an effort to be taken off a list that bans the company from bidding on contracts for the department, according to the Detroit Free Press.

The Free Press story states that: “L. D'Agostini & Sons was one of 13 companies barred for three years from bidding on work for the department in December after officials declared them ‘non-responsible bidders’ because of the references in the indictments” against former Mayor Kwame Kilpatrick. The D'Agostini & Sons lawsuit alleges that the indictment doesn’t implicate the company in any wrongdoing, according the Free Press story.

In July, against Kilpatrick and others for damages in alleged overcharges paid in the 2004-05 repair of the 15 Mile Road sewer interceptor in Sterling Heights.

The lawsuit claims Kilpatrick, businessman Bobby Ferguson, former Detroit Water and Sewerage Department Director Victor Mercado, Kilpatrick aide Derrick Miller, along with contractors and subcontractors, conspired to charge Macomb County false and inflated claims for interceptor repairs.

Among the contractor defendants are L. D'Agostini and Sons and Inland Waters Pollution Control, Inc. of Detroit. The lawsuit cites the RICO (Racketeer Influenced and Corrupt Organizations Act) as well as other federal acts.

Marrocco alleged in the county’s lawsuit that the total cost of the project ballooned to $54.5 million when it should have cost a total of $29 million. The interceptor owned by the Detroit Water and Sewerage Department collapsed in August 2004 due to the inflow of bedding soils into the pipe and the loss of ground support near a site west of Hayes Road, according to a statement by Marrocco.