The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1994, Landmark Communications, Inc.

DATE: Thursday, December 15, 1994            TAG: 9412150455
SECTION: LOCAL                    PAGE: B11  EDITION: FINAL 
SOURCE: BY TONI WHITT, STAFF WRITER 
DATELINE: CHESAPEAKE                         LENGTH: Short :   40 lines

HOUSING BOARD MUST SELECT AN ATTORNEY AGAIN

After discovering it made mistakes in hiring its attorney, the board of the city's Redevelopment and Housing Authority voted Wednesday to invite nine law firms to resubmit bids for legal services.

The board learned, after contacting the U.S. Department of Housing and Urban Development, that it had not used the proper process in renewing its lawyer's contract in September.

Rather than follow federal regulations, which require that cost be considered, the board evaluated bids for legal services using state law, in which price is not a factor. The board must now ask the nine law firms to submit new bids that include the costs for services.

``We want to make sure we do everything right this time,'' Chairman Walter W. Berry said.

The board came under fire in the fall after council members discovered that it had awarded the contract to attorney John E. Zydron by secret ballot. The state attorney general later ruled that the vote violated the Virginia Freedom of Information Act.

Vice Mayor Arthur Dwyer told commissioners in a letter that he was angry over Zydron's appointment and that he wanted them to replace him. Dwyer said Zydron had been ``a central figure'' in a controversy that led the council to remove the previous board for inefficiency, neglect of duty and misconduct in office.

Zydron will have an opportunity to bid again, under the federal rules, for the legal services. Once the bids are resubmitted, Berry said, the board will pick the top two proposals and then negotiate with the firms. He said the directors hope to vote on the new contract next month.

KEYWORDS: CHESAPEAKE REDEVELOPMENT AND HOUSING AUTHORITY by CNB