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08-15-2000 CCMMINUTES SPECIAL CITY COUNCIL MEETING TUESDAY, AUGUST 15, 2000 The Mayor called the special meeting to order at 7:00 a.m. The following were present: Mayor Marlin Torgerson, Council Members Jim Haugen, John Mlinar, Kay Peterson and Duane Hoversten. Also present: City Administrator Gary D. Plotz, City Attorney Marc A. Sebora, Administrative Secretary Marilyn J. Swanson, and Engineer Scott Young of Earth Tech. Engineer Scott Young presented a letter of recommendation for awarding the bid on the composting facility- buildings and concrete work. He reported there was a legal interpretation regarding the bids. Two of the five bidders were $3,000 apart in their bid price. However, the apparent low bidder, Spectra Building Group, LLC, did not acknowledge Addendum No. 2 as part of their submittal which was a requirement of the bidding documents. On August 14, 2000, Earth Tech received a letter from Spectra in which they acknowledged receipt of Addendum No. 2. Young noted this information must be acknowledged at the time of the bid submittal. Young informed the Council that the City might waive any irregularity not involving price, time or changes in the work. However, Addendum No. 2 involved changes in the work, which would affect the price. Therefore, he recommended that the bid be rejected as non - responsive. Earth Tech did not recommend that Spectra's bid bond be forfeited, as is allowed for a breach of bidding procedures. It was the recommendation of Earth Tech to award the bid with alternates to Raske Building Systems, second lowest bidder. Young noted there were two bid alternates for translucent panels and the office. The total cost for the alternates was $88,212, including $41,627 for the translucent panels and $46,585 for the office. This would bring the total cost to $1,687,144 for Raske Building Systems and $1,731,000 for Spectra Building Group. Hoversten inquired why the office and lights were being added at this time. Young responded that these two items were previously removed from the project because of budget costs. Plotz reported there were some flexibilities inasmuch as money had been set aside for several years from the refuse account to cover the City's share of the project costs. The funding would be available if the City Council would like to add the two alternates. Young stated the alternates could be added as a change order in the future. However, he could not guarantee the price would remain the same. The cost would have to be negotiated, with the contractor once the City had determined how many panels it desired. Peterson asked if the operation could proceed without the alternate items. Young responded that it could, but they might be needed for the project. CITY COUNCIL MINUTES — AUGUST 15, 2000 PAGE 2 Director Randy DeVries stated the office was a high cost, but it was more important than the panels for natural light. There would be a scale and counters located in the office area where people could make payment for items purchased. He thought that perhaps someone else, i.e. City employees, could do the remaining work as time allowed. However, he was concerned that the project might not be completed if postponed at this time. Hoversten suggested leaving the two alternates off for review at the next City Council meeting. Greg Mooney of Spectra Building Group stated the company disagreed with Earth Tech's recommendation and had met with their attorney. He thought Addendum No. 2 was a clarification letter, and it did not affect their cost for the project. The company believed its bid was responsive and valid. However, he pointed out that Raske's bid was not responsive for the following reasons: (1) It did not contain a bid for alternate No. 3; (2) Raske qualified its bid with Exhibits A, B and C, but only Exhibit C was present, with no bidder's qualification statement; (3) The bid was not notarized. All of these items were required in the bid specifications. Mooney commented that he understood this project was over budget. Therefore, he questioned why the City was considering alternates 1 and 2. Mooney noted the alternate bids were not read at the bid opening. In closing, the presenter reiterated that Addendum No. 2 had no bearing on the company's price. He forewarned the City Council that if the bid were awarded to Raske Building Systems, the City would receive a letter from Spectra's lawyer, Attorney Curtis D. Smith of the law firm Moss & Barnett. Sebora responded that the City staff, City Attorney Richard Schieffer, and Earth Tech had reviewed the bids. Although certain irregularities could be waived by the City Council; this one could not be waived. Therefore, it would be within the City's right to award the bid to the second lowest bidder. Motion by Peterson, second by Mlinar to award the bid to the second lowest bidder, Raske Building Systems, and not include the two alternates. Motion carried with Council Member Haugen abstaining. The City Council special meeting for awarding the bid on the composting facility/buildings and concrete work ended at 7:20 a.m. The special meeting reconvened in the City Center Main Conference Room for a taped hearing to consider revocation of three liquor licenses. The Hutchinson Police Department and legal counsel conducted the hearing.