HomeMy WebLinkAboutAug 14, 1985OFFICIAL PROCEEDINGS
COLUMBIA HEIGHTS CITY COUNCIL
COINUED COUNCIL MEETING
AUnT 14, 1985
The continued Council meeting was reconvened by Mayor Nawrocki at 6:30 P.M..
The Council meeting of August 12th had been recessed to August 13th which was recessed
to August 14th.
1. Roll Call
Hovland, Petkoff, Carlson, Peterson, Nawrocki - present
2. Secretary Pro-Tem
It was noted that Fred Salsbury, Public Works Director/City Engineer had been appointed
Secretary Pro-tem at the meeting of August 13th and will serve in this capacity at this
reconvened meeting.
3. Award of Contract
The business of this reconvened meeting is 'to consider the award of bid for the removal
of insulating materials from the Library and from John P. Murzyn Hall.
At the previous meeting the City Attorney had been requested to contact other municipalities
regarding their practice in requiring performance bonds of contractors and to seek an
interpretation of the statute regarding performance bonds from the League of Minnesota
Cities. He checked with the cities of Crystal and Brooklyn Center and noted that their
practice for requiring performance bonds is similar to ours in that they use the figure
of~lm~proximately $5,000 for a project before a bond is required. In cases where the
prWct is completed when the payment is made a bond is not required. The City Attorney
stated that some projects did not warrant a bond simply by their size but acknowledged
that enforcement could be a consideration where there is no bond, He had reviewed the
statute and it states that labor and materials are covered.
Councilmember Peterson inquired if this project definitely requires a performance bond
and was advised by the City Attorney that it does. The City Engineer had advised the
low bidder of this requirement and understood that he was unable to acquire such a
bond. Councilmember Peterson suggested that the contract be broken down into $2,000
increments so that the low bidder could always be covered by the bond required by the
City license. Councilmember Petkoff had offered this suggestion at an earlier meeting
and was advised that the low bidder had not as yet applied for a City license, It was
understood that the City license would not ]meet the requirement for a performance bond,
Councilmember Petkoff suggested that the project could be done in two phases, with the
Library being done first. If the low bidder were compensated for this phase of the
project there would be no need for the prepayment stated in his quote. Mayor Nawrocki
inquired if a prepayment were allowable and the City Attorney advised that it w~s.
Councilmember Petkoff inquired how the award o~'bid could be made to ~h~ sec0n~ iowest
bidder since the performance bond requirement was not stated in the specifications. She
was advised that contractors are expected to be knowledgeable of the laws regulating
municipal contractural requirements. The City Manager stated that the lowest bidder had
been advised of this requirement orally and was given the opportunity to acquire such
a bond.
Mayor Nawrocki stated he had contacted the League of Minnesota Cities' legal counsel
on the matter of municipal requirements for performance bonds. The legal counsel had
stated he was of the opinion that the City's practice was general practice of other
cils but he placed the dollar value of a project requiring a bond closer to $1,000.
Th~'City Manager checked the requirements for a contractor to carry Workmen's Comp-
ensation Insurance and understood it was not necessary for the employment of family
members. The low bidder does not carry this type of insurance as he also understood
he was exempt and he employs family members.
The Mayor and members of the Council stated they would prefer to grant the award to
',ont'i nued- Counci 1 Meeting
~ugust 14, 1985
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the~m~west bidder because of the savings of costs and because it would afford a small
>usinessman an opportunity but the performance bond requirement was a primary consid-
)ration. It was also noted that if the project were done in two phases, that the low
~idder had the highest bid on the Library phase.
)iscussion followed regarding the MPCA regulations on notification prior to work begin-
~ing and removal of the insulation materials. The City Engineer stated the approximate
hourly costs involved with these regulations and the required testing procedures.
The City Manager, City Attorney and the City Engineer/Public Works Director recm~nend
the bid be awarded to the second lowest bidder.
Motion by Hovland, second by Carlson to award the bid for removal of insulating materials
from the Library to the Reuben E. Johnson Company in the amount of $2,405 based on low,
responsive bid received. Roll call: All ayes
Motion by Hovland, second by Carlson to award the bid for removal of insulating materials
from John P. Murzyn Hall to the Reuben E. Johnson Company in the amount of $14,475
lased on low, responsive bid. Roll call: All ayes
~djournment
Motion by Petkoff, second by Peterson to adjourn the meeting at 7:15 P.
All ayes
Fredri~l~ V~. 'Sal~s'6ury j SeCr~et'~']~~ Pro-l~em ~
., Roll call: