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Home My WebLink About1970-08-12 Council Minutes - Special MeetingAGENDA SPECIAL KENAI COUNCIL MEETING 7:30 P.M. 12 AUGUST, 1970 1. Roll Call 2. Reconsideration of bid award, Water Transmission Line, Beaver Creek Valley Project. 3. Bid award - Hauling Water Pipe �M i MINUTES OF KENAI CITY SPECIAL COUNCIL MEETING 12 AUGUST, 1970 Meeting was called to order at 7:30 p.m. by Vice Mayor Robert Bielefeld. i• (toll call: Members present - Charles A. bailie, Robert Bielefeld, James Doyle, James Hornaday, Mrs. Florin McCollum and Hugh Malone; Members absent - Mayor Eugene H. Morin, who is Outside on Holiday. 2. The Vice Mayor explained the purpose of the meeting was to reconsider action on the award of contract to Bullock's Trucking & Excavating for the last seven items on the Water Transmission Line, Beaver Creek Valley Project's specifica- tions. Council awarded this contract to Bullock at its meeting of 8/5/70, on the consideration of the type of equipment to be used and the fact that Bullock Excavating is a taxpayer within the City of Kenai. Bailie said he moved for reconsideration as Jess Robinson, of Cook In- let Construction,was not present at the last meeting, and the facts of the situa- tion were not adequately presented. j Doyle seconded the reconsideration motion saying he had since found out Robinson is also a taxpayer within the City and it behooved the Council to award the bid to the low bidder, all other qualifications being equal. Robinson said he had been told it was not necessary for him to be present at the bid award. He met all qualifications, and did not understand why Council had decided the way they did. If there are other requirements he should meet, a he asked what they were. Bruce Massey, W&S Supt.,said he had recommended the low bidders be approved as all other conditions were equal and the City was obligated to the taxpayers to accept the low bid. Robinson said he will use a dump truck on the gravel hauls, but will use ;! an 8' wide, new rubber-tired,-�self-loading scraper on'the- balance of the work. This scraper compares favorably with trucks, and there will be only one machine on the job at a time, so there will be no congestion of traffic. i City Manager Robbins agreed with Massey's recommendation,, saying their decision was pure4y pragmatic and did not consider intangibles. There was considerable discussion as to whether or not bidding should be limited to those living within the City. Much better bids are received when it is open to all comers. The Code provides for open bidding.=c MacCollum said she was not going to change her vote as this might estab- lish a precedent. Council hat this prerogative, plus the obligation to choose the best for the City. The City is casting no aspersions or reflections on Bullock's firm, but is concerned with pure reasoning as to the best interests of the City. Bullock raised the question of preserving the utility lines - but these are staked and have to be moved anyway. Hornaday arrived at this time, and Vice Mayor Bielefeld reviewed the discussion for him. Sullock asked what about his expenses for Performance Bonds and insurance in the event Council reverses its decision. He received a Notice to Proceed and had acted accordingly. Council said he should be reimbursed for whatever be -had spent toward the job. Hornaday hoped the City would not be worse off than if they had gone ahead with Bullock's contract. _ Roll call vote on the motion to reconsider: Affirmative - Bailie, Biele- feld, Doyle, Hornaday; Negative - McCollum and Malone. Bailie moved Doyle seconded to accept the low bid of Cook Inlet Construc+ tier. ' Discussion centered around questions set forth above. Robinson said he had talked with a lawyer who told him he had a firm legal position, but he did not know whether to make anything of it or not. He submitted a responsive bid, and was surprised at the decision. i Kenai Council Minutes (special Meeting) 8/12/70 Page two 2. Cont'd. Roll call vote on the motion to award the bid to low bidder Cook Inlet Construction: Affirmative - Bailie, Bielefeld. Doyle, Hornaday, Malone; Nega- tive - McCollum. The City will reiraburse Bullock for expenses toward insurance and bonding. and letters will be sent to whatever agencies are involved that this decision is no reflection on Bullock's firm and no stigma should be attached. Council said this in no way obligates them to always accept the low bid on Projects. Many factors Are often involved with a decision to award a con • tact. The Code says the,City "shall favor a person, firm, or corporation in he City when this can be done without additional cost to the City', but that the City "may repeatedly reject all bids" and that the City shall "purchase from the bidder whose bid is most advantageous to the City, considering price, quality, date of delivery. etc.". 3. Massey presented his recommendations to Council, in written form, regarding the hauling of pipe for the eater Project. because of the extremely high cost of hauling, he recommended the City hire a truck and operator and do the haul- ing itself. However, since making this recommendation he has learned the City would be obliged to pay according to ICC Regulations at the minimum of $5.00 a ton. Bielefeld asked why the City could not accept the low bid of Arctic mo or Freight, n and let the company worry about meeting ICC rules. Jack & Mukluk Freight Lines. said 1t was the consignee who would ha a to pay the balance, not the Freight Co. All of which was hard for Council to understand or accept, since noone present knew the legal ramifications of ICC rulings. There was also discussion as to the late bid of Mukluk Freight Lines. The City has never considered bids received after the date and time advertised. This raised the question of whether or not a "quote" was a "bid". An hourly rate for hauling cannot be applied on an inter -state shipment. The goods would cease to be termed inter -state if it sat in the dockyard for over 30 days. Massey said the pipe would be delivered Saturday and the City hoped to start hauling Monday. i After considerable discussion, Malone moved, Doyle seconded, the City T, Mggr. should ge the pipe moved at not to exceed $5.00 a ton through local nego- tiations. Hornaday moved to amend by adding"and the Administration be authorized to award the contract to the lowest legal bidder". Bailie seconded the amend - Mont. Massey said.he had asked for quotes because Tachick Freight asked about the hauling. The Code requires quotes, bids or proposals for any expenditure over $500.00. Council's approval is called for only on amounts exceeding $29500.000 but this had been submitted to them only as a courtesy. Other- wise the Administration is empowered to award the contract. Roll call vote passed the-amendment.unanimously. _.__.. The main motion passed unanimously by roll call vote. The meeting adjourned at b:30 on Hornaday's question as to who is the loci bid- der in this case, and what is a quote,and what is a bid? Respectfully submitted, A , �AoOo 0 yla� Frances Torkilsen City Clerk r y i 014. ^ CITY OF KENAI „ail (?aja l °j 4"„ P. O. sOX NO KHIAI, ALASXA "611 August 12 , • 1970 101 Mr. 0.0. Robbins, City Manager FMn Blues A. Massey, water 6 Sower Supt. Q=B ANALYSIS - PIPB DBLIVBRT 1. The following quotes were received for pipe and appurtenance delivery from Nikiski Dock to the Beaver Creek Valley Trunk Line Mt. FIRM Quantity Pr_ic: Total Weaves Rres. Inc. 301~ 1*ad $7.20/ton 3ta,00pN idea 9.40/ton 925.tons it $7.20 a $1620.00 225 tons'! $9.40 a $2115.00 Amic Motor Freight Inc. 22$ tons $4,90/ton $1060.00 Taahiek Freisbt Lines 225 tons $1.00/tan $1125.00 It. Analzois Adtic Motor eseight Inc, submitted the low gootol however, all bids appear to be too high, probably because of the Alaska Tariff Regulations. it is therefore recommended that the City hire a truck and drives br the bout (24.80 per hour), from Mukluk, and haul their own materials. Calculations and es- timated cost of the -city hauling their own pipe is as tollowsl a. IS loads averaging no more than 2 hours per load. h. Total hours equal 30 hours or less c. Estimated cost a $744.00 max. The latter method of transportation will also allow the city (rare freedcm in site selection, Which will facilitate stringing the materials along the easement. Respectfully yours, Bruce A. Massey Water and Sewes Supt. MAIfif1 ME LINE SMVBR i•YIRIlR VALLEY BID ANAL1(SI$ TOTS B,AKDOWN � Udder Rseeb coast. t W9000.00 $31,625.00 r 9 OYl tool[ � s 1 r•' � •' J '• �' ' M.R.• - . `d il,400.00 Chuuberlsin Rxc. • �L 19,330. iN.R. Cook Inlet Const. M.R. ll,t7p.00 Oeyte's IiftC. 501250.00 -.. 37,9W.00 Hansen i CO. '' `, ;' ' "" M.R. 34,050.0n Inlet co. Inc. 20,S20.00 N.R. Lathrop i Petes$on Co. 34 3SS.00 N.R. R i J Rental Service '� 36,775.00 N.R. j j B i B Landscaping i Tsucking and Millians Bscavating %, - 21,723.00 20,700.00 As the above totals indicoti, Cook Inlet Construction an(, Ch"berisin Bxcsystinq are the tow bidders on the Beaver CrpeM Valley 'hunk Line. Both tiffs$ have perforsed quite acceptably for the city on past PSOjecte,and it is therefore recommended that the low bids be aCCepted, pending asti$fection of both insurance and bonding regntresents. fl Respectfully yours, Bruce A. Massey Water and Sewer Supt. No R'espo4�+te, r' 1 �. ��•q`7A &-Olt .................._..................... -M;, .- /� t.-.•..•......... nn ,..n n...................... ............................................., G �' ✓r�' /�o �2�.u•a'� 5. a err-+�. 1AA''4. QA�