Minutes - Council Work Session - 10/23/2012

Home

Development Manager Lazan stated he held discussion with City Attorney Goodrich about needing two quotes, but believed there was some "gray area" in the League's interpretation about whether this was an add -on project or a new project. He explained the difficulty with bringing another contractor into the first contractor's bid area under which the permits were issued. Development Manager Lazan pointed out this is a public improvement project and continuation of the two stubs so he found it was a continuation, not a new project. He stated he can't imagine that a second quote to mobilize would be less expensive than this quote. City Attorney Goodrich advised that Bond Counsel Tom Bray had stated it is not a "gray area" and if the project cost $100,000, it is mandatory to obtain two quotes. He explained that change orders with special assessment projects are in a different category and can be up to 25 %. This is a different contract so two quotes are required. Councilmember Strommen agreed this is a separate project, it was originated separately, and she supports getting a second quote. Councilmember McGlone agreed with the need for a second quote, noting it will probably be higher but is required by the law. Councilmember Wise questioned whether a contractor will be willing to put the work into preparing a quote knowing it is probably a waste of time. City Attorney Goodrich advised if the City cannot obtain a second quote, it will have to bid the project. Development Manager Lazan noted it is possible to approve a change order subject to the second quote being at or lower than this amount. City Attorney Goodrich stated he can craft motion language to address contingent approval, if desired. Councilmember Stromi-nen expressed concern with that option and stated it is a question of how the City does business and it should not participate in "gray areas" around the law. Councilmember Backous noted the price of this quote has already been stated into the record. Mayor Ramsey stated he values the legal opinion and agrees with the need for a second quote. Councilmember Elvig suggested repackaging the project so it can be competitively bid since the amount of the current quote is known. Development Manager Lazan stated it can be bid for spring work or these items can be included with Lot 5 to do the work. Councilmember McGlone stated he does not advocate rebidding the project but to follow the City Attorney's recommendation and seek a second quote in the market. City Council Work Session / October 23, 2012 Page 9 of 11