The company was not the lowest bidder on the project.
PTI Inc. submitted a bid of $1,005,000. The contract with Wyatt General Contracting is for $1,070,000.
City attorney Ken Guin recently submitted two letters to Mayor Drew Gilbert detailing the results of his investigation into the companies.
“We had heard rumors that one particular bidder had had some legal issues, so that precipitated me looking into it from a standpoint of any suits that have been brought out in the past for workmanship issues and things like that,” Guin said.
Guin said the letters outlined the various claims that he had uncovered in which the bidders had been involved.
He advised the council to go into an executive session if they had any further questions because the discussion would involve the good name and character of individuals.
After several minutes of silent reading, council members passed a resolution awarding the contract to Wyatt General Contracting.
The city received a disaster-related Community Development Block Grant in December 2012 for the project.
Site preparation began last week.