Wednesday, January 4, 2006
GRANDVIEW - The Grandview City Council voted to award the city's well rehabilitation project contract to the lone bidding contractor, Schneider Equipment, Inc., Tuesday night.
The modified bid, which was 24 percent higher than the original bid the city received from the company, will cost the city just over $610,000.
But along with the bid award, the council approved the renegotiation of the bid amount, something the city is allowed to do when only one company bids on a project, Public Works Director Cus Arteaga told the council.
Along with Arteaga, the council heard from Jeff Louman of Huibregtse Louman Associates, Inc., the city's engineering firm.
Louman told the council that with several revisions to the bid, which he said he's confident the city will be able to make, Grandview can save more than $111,000 on the project.
Louman said that city workers can do a lot of the work themselves, and the city can purchase necessary equipment at a cheaper cost than the contractor.
The well rehabilitation project includes building improvements, pump and electrical equipment for well No. 3 on Velma Street, well redevelopment and pump testing on well No. 2 at the intersection of Balcom and Moe, and drilling of a new well, casing and testing at well No. 12 on Butternut Street.
Parts of the bid, however, Louman told the council, were good and should not be renegotiated.
"I think the electrical bid we got was very comperable," Louman said.
He warned the council that if they rebid the work, they could lose that competitive bid for the electrical work.
"I don't think you'll see an appreciable cost difference," Louman said if the council were to rebid the work.
Mayor Norm Childress admitted he wasn't sure how the process worked when the city received only one bid for a project.
"I'm not familiar with the single bidder negotiation process," Childress said prior to the council's approving the contract.
Louman presented a letter to the council which showed that the city will have to pay a total of just under $500,000 for the total project cost.
The bulk of the cost comes with the new well, but a $235,000 drought relief grant the city received last year will be used to pay for well No. 12. That amount will cover all but about $25,000 of the cost of drilling a new well.
The council must use that money before June, Arteaga told the council.