Environmental Management Corp. contracts with the New Albany sewer and stormwater boards are valid, Floyd County Circuit Judge J. Terrence Cody has ruled for a second time.
Former board members had been named in a lawsuit brought by the City Council, which claimed the contracts with EMC were not for professional services and should have been competitively bid.
Cody didn’t see it that way.
Ruling in favor of the boards in March, council attorney’s filed a motion requesting Cody change errors in the first decision. But Cody upheld the ruling, stating the contracts were for professional services and did not require bidding.
But the case might still be rejuvenated.
Council Attorney Jerry Ulrich said the motion to correct errors was the “optional first step in the appellate process.” Legal counsel can go directly to the Court of Appeals if they file a motion within 30 days.
Ulrich expects a decision from the council well before the 30 days elapses, but he’s unsure if an appeal is imminent.
“I’m disappointed (in the ruling) but that’s neither her nor there,” Ulrich said. “The council has been provided with a copy of the order and my observations on some of it. What they’ll do at this point I don’t know.”
Cody did rule more action may be needed regarding specific details of the storm water contract, which Ulrich said could nullify the agreement.
More hearings may be needed to rule on the lack of former Mayor James Garner’s signature on the storm water contract and if the appropriated amount for the storm water board exceeded the amount of the agreement.
A motion asking for clarification of Cody’s call for additional proceedings has been filed by storm water lawyers. Councilman Kevin Zurschmiede, who was on the sewer board when the contract with EMC was approved, wants Cody’s latest ruling to cap the case.
“I hope that this will put an end to it and stop unneeded attorney’s fees,” Zurschmiede said. Councilman Jack Messer and Zurschmiede voted against pursuing the lawsuit in February.
“I’m obviously glad that the judge ruled in favor of the sewer and stormwater boards, just because it was a decision I was part of and felt like I had good information,” Zurschmiede said.
Floyd County
Cody: Sewer ruling stands
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