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City of Centerville <br />City Council Meeting <br />Apri122, 2009 <br />City Administrator Larson stated that the City would have to initiate a sale of City bonds <br />to finance the project. It would then have to roll the PFA funded portion into the bond <br />issue. <br />Motion by Council Member Lee, seconded by Council Member Paar, to approve <br />Change Order #1, in the amount of $8,000, for the American Recovery and <br />Reinvestment Act (ARRA) requirements. All in favor. Motion carried <br />unanimously. <br />2. Res. #09-009 -Award 2009 Street & Utility Improvement Project (2009.02 <br />City Engineer Statz stated that bids were taken last week. He added that, attached to the <br />letter in the handout, was the bid tab. <br />City Attorney Glaser stated that normally the City would award the contract to the lowest <br />bidder, and there is usually no problem with that. He stated that, in this case, the City <br />Council has the right to accept the low bid from Rum River Contracting, but he <br />recommends that they not accept the Rum River Contracting bid. He stated that Rum <br />River Contracting did not conform to the bid specifications by not submitting an alternate <br />bid, as required. In addition, Rum River Contracting did not include with their bid, the <br />documents required to support the alternate bid. The City Council has a right to reject <br />their low bid because they did not follow the procedure. Forest Lake Contracting <br />followed all the rules, and they could sue the City if it accepts Rum River Contracting's <br />bid. City Attorney Glaser stated that he recommends rejecting the Rum River <br />Contracting bid and accepting the Forest lake Contracting bid. <br />Councilmember Lee stated that it pains him to pass on the low bid, but he would not want <br />to take a chance of litigation. <br />Councilmember Fehrenbacher inquired whether Rum River Contracting could sue the <br />City if the City rejected their bid. <br />City Attorney Glaser stated that Rum River would not have a chance in court, because <br />they did not follow procedures. <br />Councilmember Paar stated that he agreed with Councilmember Lee. He stated that it is <br />hard to take a higher bid; however, if they did not, litigation could cost the City more. <br />Councilmember Paar stated that he would rather stay with Forest Lake Contracting. <br />Mayor Capra stated that the City is still saving the taxpayers a lot of money. <br />Motion by Council Member Paar, seconded by Council Member Lee, to adopt <br />Resolution Number 09-009, awarding a contract to Forest Lake Contracting, with <br />the base amount of $1,337,737.25 and the alternate bid of $14,000, for the 2009 <br />Street and Utility Improvement Proiect (2009.02). All in favor. Motion carried <br />unanimously. <br />Page 5 of 11 <br />