MONROE - Alderman Chuck Schuringa is concerned that money saved on city projects by going with the lowest bidder is too often being spent on fixing problems with the work done.
"We have a problem here," Schuringa said, as the Monroe Board of Public Works discussed revamping its bidding process Monday. The board directed Public Works Director Kelly Finkenbinder and supervisors of public works departments to recommend next month some changes to the process of accepting bids and awarding city contracts.
"The thing I'm concerned with is the money we're saving with a low bid was spent, $40 to $50,000, in fees to get this project finished," Schuringa, Ward 10, said.
With the city on the verge of opening bids on several large projects, including the downtown Square reconstruction and design, there's an urgency to any changes in the process.
Hans Anderson, of the Fehr-Graham & Associates engineering firm hired to over see the Square reconstruction, said the project is on a "tight timetable."
One of the changes discussed was having the city give potential bidders on public works projects a head-up if they are not qualified to do the job - saving them the time and money of creating bid packages.
As an example of his concern, Schuringa noted Iowa Grant Trucking of Livingston, which was contracted for a 16th Avenue reconstruction project last summer. During construction, a gas line was hit, requiring evacuation of residents in a two-block area by the Monroe Fire Department, the shutting off of all gas to homes, and the relighting of gas appliances by the gas company after repairs were made.
Iowa Grant Trucking was responsible for repairs to the gas line and for the gas lost, but Schuringa said the city spent more than $40,000 in fees, lawyer costs and DNR fees to resolve the problem.
On May 6, 2008, the City Council awarded Iowa Grant Trucking the contract for the 16th Avenue utilities replacement project during a three-block street reconstruction. Iowa Grant Trucking bid about $176,000, about $70,000 lower than other bids submitted. Other bids, from local contractors, were within about $1,000 of each other.
At that time, Schuringa said he was "still hesitant" and voted against hiring the firm, stating, "A low bid is not always a good way to go... Cheap isn't always the greatest."
Aldermen Charles Koch, Thurston Hanson and Dan Henke also had voted against the hiring.
Kelsey Excavating, Inc., Davis, Ill., contracted for 18th Avenue water and sanitary sewer main project, was docked more than $8,000 on its contract with the city to pay another contractor to finish final landscaping last fall.
"I just don't like seeing those expenses," Schuringa said. "By the time we get done, we're spending (an extra) $50-60,000 to get things done."
Anderson recommended the city "tighten up" the bidding procedure, by getting contractors' qualifications ahead of bids, "so the city can tell him before he spends money to create bids." The city's proof of responsibility form is not always project specific, he said.
City Attorney Rex Ewald agreed there should be an evaluation of the responsibility of bidders, and said he saw no legal problem with department heads or engineers calling a potential bidder and alerting them they may not qualify for a project. The city, however, cannot refuse a contractor to submit a bid.
The city could develop standardized procedures "that would require contractors to submit documents that allows staff to make good-faith decisions," Ewald said.
The state has a bidding statute and procedures the city cannot refuse to follow, he said.
"But you can evaluate bids on the table and reject low bids," he added. "The city has the right to reject bids, irresponsible bids."
Painfully aware of the city's slim margin in the budget for added costs, board members took Anderson up on his impromptu offer to "donate time to do this one" (procedural change) with the department heads.
Chided by members to make the same offer, Ewald smiled. "I don't see a lot of legal work here," he said.
"We have a problem here," Schuringa said, as the Monroe Board of Public Works discussed revamping its bidding process Monday. The board directed Public Works Director Kelly Finkenbinder and supervisors of public works departments to recommend next month some changes to the process of accepting bids and awarding city contracts.
"The thing I'm concerned with is the money we're saving with a low bid was spent, $40 to $50,000, in fees to get this project finished," Schuringa, Ward 10, said.
With the city on the verge of opening bids on several large projects, including the downtown Square reconstruction and design, there's an urgency to any changes in the process.
Hans Anderson, of the Fehr-Graham & Associates engineering firm hired to over see the Square reconstruction, said the project is on a "tight timetable."
One of the changes discussed was having the city give potential bidders on public works projects a head-up if they are not qualified to do the job - saving them the time and money of creating bid packages.
As an example of his concern, Schuringa noted Iowa Grant Trucking of Livingston, which was contracted for a 16th Avenue reconstruction project last summer. During construction, a gas line was hit, requiring evacuation of residents in a two-block area by the Monroe Fire Department, the shutting off of all gas to homes, and the relighting of gas appliances by the gas company after repairs were made.
Iowa Grant Trucking was responsible for repairs to the gas line and for the gas lost, but Schuringa said the city spent more than $40,000 in fees, lawyer costs and DNR fees to resolve the problem.
On May 6, 2008, the City Council awarded Iowa Grant Trucking the contract for the 16th Avenue utilities replacement project during a three-block street reconstruction. Iowa Grant Trucking bid about $176,000, about $70,000 lower than other bids submitted. Other bids, from local contractors, were within about $1,000 of each other.
At that time, Schuringa said he was "still hesitant" and voted against hiring the firm, stating, "A low bid is not always a good way to go... Cheap isn't always the greatest."
Aldermen Charles Koch, Thurston Hanson and Dan Henke also had voted against the hiring.
Kelsey Excavating, Inc., Davis, Ill., contracted for 18th Avenue water and sanitary sewer main project, was docked more than $8,000 on its contract with the city to pay another contractor to finish final landscaping last fall.
"I just don't like seeing those expenses," Schuringa said. "By the time we get done, we're spending (an extra) $50-60,000 to get things done."
Anderson recommended the city "tighten up" the bidding procedure, by getting contractors' qualifications ahead of bids, "so the city can tell him before he spends money to create bids." The city's proof of responsibility form is not always project specific, he said.
City Attorney Rex Ewald agreed there should be an evaluation of the responsibility of bidders, and said he saw no legal problem with department heads or engineers calling a potential bidder and alerting them they may not qualify for a project. The city, however, cannot refuse a contractor to submit a bid.
The city could develop standardized procedures "that would require contractors to submit documents that allows staff to make good-faith decisions," Ewald said.
The state has a bidding statute and procedures the city cannot refuse to follow, he said.
"But you can evaluate bids on the table and reject low bids," he added. "The city has the right to reject bids, irresponsible bids."
Painfully aware of the city's slim margin in the budget for added costs, board members took Anderson up on his impromptu offer to "donate time to do this one" (procedural change) with the department heads.
Chided by members to make the same offer, Ewald smiled. "I don't see a lot of legal work here," he said.