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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 ~age 2 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: