Local News
NIAGARA FALLS: Gross’ municipal contracts reviewed
Mayor wants assurances bidding was proper, work was completed
From 2005 until last Friday, the City of Niagara Falls entered into 20 different contracts, valued at almost $158,000, with David Gross Contracting.
The company, a successor to Gross Plumbing and Heating Company, is controlled by John Gross and is now at the center of a federal public corruption investigation.
Information on the contracts was obtained after Mayor Paul Dyster ordered a review of any and all city work performed by Gross or his companies. Dyster also directed purchasing officials to look into any city contracts with companies that federal law enforcement agents have indicated may have functioned as dummy companies for Gross.
All but two of the contracts have been completed. The two open contracts involve renovations to a waterfront comfort station in LaSalle and repairs to a sewer line at the Royal Avenue fire hall.
In a memo to Dyster, Purchasing Agent Dean Spring reported, “The City began doing business with David Gross Contracting in 1998, shortly after Gross Plumbing & Heating Co. went out of business. Prior to 2005 the majority (although not all) of the business conducted with this company was for rental of equipment.”
“I don’t think there’s anything shocking or surprising here,” Dyster said. “We’re sending this (information) out in the interest of transparency.”
Spring also checked for any city contracts with a host of companies that federal agents contend Gross used as dummies to submit bids on projects that required multiple bidders.
“We’ve been focused on making sure (Gross) didn’t have phony bidders on our contracts,” Dyster said.
Spring said he looked for contracts between the city and Dee Vee Contracting, Chad Robertson Contracting, Ace Mechanical Services and D.V. Brown & Assoc.
“I found nothing for Dee Vee Contracting and Ace Mechanical Services,” Spring wrote. “I did find two times we rented equipment from Chad Robertson Contracting in 2003 (total $2,497.00) and one emergency demolition in 2001 ($902.50). In 2002 a contract was awarded to D.V. Brown & Associates for an egress project at City Hall. The cost of this contract was $28,906.28.”
It’s not clear whether Robertson Contracting is a legitimate company or a front for John Gross.
Spring indicated the Brown contract appears to be legitimate.
Dyster also said he has asked a group of officials to meet on Monday to review work already performed by Gross contracting at the LaSalle comfort station and the Royal Avenue fire hall.
“We’re looking at discretionary actions from people referred to in the (FBI) affidavit, to see of they properly performer their duties,” Dyster said.
Contact reporter Rick Pfeiffer
at 282-2311, ext. 2252.
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