CC - Agendas - City Council - WORKSHOP - 10/28/2008

Home

Prescott City Council Combined Study Session/ Regular Voting Meeting — October 14, 2008 Page 15 and Legal is reviewing, a waiver of claims and if it is found to be in good order, they will have no future risks or exposure for this project. Councilwoman Suttles said that they have had three different contract overrides on the Iron Springs Road project; the City decided to pave a parking lot, traffic control changes and then the last one the City wanted additional paving. She asked if there was a reason why two out of the three were not part of the original bid when it went out. Mr. Nietupski said that the additional paving was required when they extended the sewer to the west, as required by the County. The sewer extension was determine necessary after the project was awarded, after inquiries of neighbors and an analysis of the system showed it was not working good. Councilwoman Suttles said that she knows it was a big project and it had to be bid a few times. She appreciated the presentation done a few weeks ago, but she still thinks it could have been done better. She understood that it was not Fann that did any more than what the City asked of him, but each time something like this comes forward, they need to do better. Councilman Luzius said that Mr. Nietupkski had provided him a copy of the agenda memo dated 10/3/06 when they approved the contract, and at that time a citizen got up and made the statement that sometimes contractors will bid low and depend on amendments to make their profit. He said that he was not saying that is what Fann did, but there were only two entities that bid on the project, and it went to Fann because of a $600,000 difference. Mr. Nietupski reminded the Council that they bid the project three different times. When the City receives a bid, it is at a unit price contract, and this had 255 different items. Each contract has the opportunity to provide what his costs will be to compare the bids. It does not provide the end amount; the end amount is the result when the work is accomplished. He said that to say that had the City awarded to the other bidder (which legally it could not do) and suggest that it would have been a lower contract in the end, is not a reasonable statement. Gary Hudder, representing Asphalt Paving & Supply (the other bidder), clarified that when they enter into projects the size of Iron Springs, there are many unforeseen things. There are substantial engineering issues and it is very frustrating for contractors as well as the City engineering staff and Council members. Specific to Councilman Luzius's comments, when change orders are submitted of this magnitude and there are unit cost items, he would not want there to be a concept that there are contractors pocketing funds. Work is additional and that costs them money. They are beholden to a certain profit/overhead and once they