SYLMAR CONTRACTOR PREVAILS TUTOR-SALIBA CLEARED FOR BAY BRIDGE PROJECT.

Byline: Beth Barrett Staff Writer

Tutor-Saliba Corp. on Friday was awarded a previously contested $177.8 million contract to work on the Bay Bridge in Northern California after a Caltrans hearing officer determined the Sylmar-based construction giant was trustworthy.

In a recommendation signed May 28, retired Superior Court Judge Coleman F. Fannin said the California Department of Transportation should find Tutor-Saliba to be a responsible bidder following an evidentiary hearing ordered to protect the public's interests.

Ron Tutor, the company's president and CEO, could not be reached Friday for comment.

In February, Tutor denied any wrongdoing by his company.

Tutor-Saliba submitted the low bid on the bridge project but was challenged by the only other bidder, C.C. Myers/Balfour Beatty. The rival company cited a jury's August 2001 finding that Tutor-Saliba filed false claims and used bogus minority subcontractors in building Los Angeles' subway for the Metropolitan Transportation Authority.

Tutor-Saliba denied any impropriety and has appealed.

C.C. Myers attorney David B. Casselman, also the MTA's outside counsel in its lawsuit against Tutor-Saliba, called the hearing officer's determination ``remarkable.''

Casselman said C.C. Myers is reviewing its legal options, and ``undoubtedly will pursue the issue further.''

Casselman also complained that C.C. Myers was not allowed to participate in the evidentiary hearing.

``Caltrans gave him a solo audience,'' he said.

Caltrans officials said Friday they were adopting the judge's recommendation and granting the contract to Tutor-Saliba.

``Based on the hearing officer's recommendation that we find Tutor-Saliba trustworthy and therefore a responsible bidder, we determined such and therefore awarded the west approach contract to Tutor-Saliba today,'' said Caltrans spokesman Dennis Trujillo.

Construction on the connector between the highway and bridge is set to begin July 1. The work was originally estimated to cost $196 million, but the bid came in much lower.

Caltrans officials declined to comment on Casselman's allegations that due process was not followed.

The case was being closely watched by government entities with whom Tutor has contracted for decades.

Casselman said he doubted the determination would affect Tutor's MTA appeal. Tutor has said he expects to be vindicated.

Tutor-Saliba initially sued the MTA, claiming it had been underpaid for its subway work, but the agency countersued. Superior Court Judge Joseph R. Kalin terminated the trial after concluding the company intentionally concealed, withheld and destroyed relevant documents. The jury award of nearly $30 million in damages grew to $63 million with attorney fees and other costs.

Beth Barrett, [phone]

beth.barrett(at)dailynews.com