Milford Wastewater Bids Above Expectations
July 28, 2016 at 4:25 p.m.
MILFORD - Bids for Milford's wastewater treatment plant came in higher than the engineering firm of Jones & Henry expected.
Monday, Brian Houghton, of Jones & Henry, said there were five contractors who bid. The lowest bidder was Thieneman Construction at $2,012,000. The engineer's estimate for the project was $1.75 million.
During the past three weeks since the bid opening, Houghton said, he's been talking to the contractors, subcontractors and suppliers to find out why all the bids were more than the engineer's estimate.
The reasons, he said, were because there were four projects for the contractors to bid on at the same time and Milford's was the last and smallest. A couple of possible bidders didn't bid. At the last minute, there was some confusion about the project. And most of the equipment for the project was not competitively bidded on. The project contractors were able to get one price from one supplier.
As such, Houghton said, the town has three alternatives. They can accept the bid. They can reject all bids and rebid the project. Or the town can proceed with the lowest bidder and try to make revisions and try to negotiate on some aspects of the project to lower the cost.
Houghton said he is pursuing the last alternative.
If the town were to reject all bids and then rebid, Houghton said, it would push the project back three to four months, and there are no assurances the bids won't come in at the same numbers or higher. There also are Indiana Department of Environmental Management deadlines the town has to meet.
Town attorney Jay Rigdon said the financial aspects of the project aren't all taken care of yet. In February, the bond council for the project plans to go ahead with the approval of the loan and rate increases. But the finances can't be finalized until they know how much will be needed.
Councilman Robert Cockburn said the longer the town waits, the interest rates may go up and the town will end up paying more.
Rigdon said there's little chance of any gain for the town as far as interest rates go by putting the project off.
Councilman Douglas Ruch made a motion to allow Houghton to tentatively allow the bid from Thieneman for $2,012,000 and for Houghton to do what he could to reduce the cost of the project.
In a related matter, the town council also approved an agreement with Jones & Henry for them to observe and inspect the construction of the wastewater treatment plant for $600 per day for 60 days.
In other business, the town council:
• Approved to advertise for the new position of a water/wastewater treatment plant operator. Utilities Superintendent Dallas Winchester said he hopes to hire someone with a minimum of a class one or two license. The person will be paid approximately $14 per hour and will work at least eight hours a day, five days a week, but not necessarily Monday through Friday.
• Approved the interlocal cooperative agreement with Van Buren township and with the fire department for fire protection. The town will pay the fire department four installments of $4,264 for 2004, for a total of $17,056.
• Approved the cooperative agreement with the EMS for 2004 for emergency services for $20,000. Ruch was approved to represent the town on the EMS board of directors.
• Approved a special meeting for Jan. 26 at 6 p.m. in the town hall.
• Heard the fire department received a $8,350 matching grant from the K21 Foundation for a compressor unit. The fire department also was able to raise the matching money it needed to raise for the grant.
• Approved the Milford police department to accept a grant from the Department of Defense for more than $17,000 for imaging equipment and for an officer to go to school for the equipment.
• Heard water usage in the town for 2003 is 49,737,000 gallons, down 4.8 percent from 2002.
• Approved a Milford police officer to attend the Kosciusko County Reserve Academy.
• Heard the park advisory board has three vacancies to fill.
• Elected Ruch as council president and Gary Hurd as vice president.
• Approved transfers, as requested by clerk-treasurer Charlotte Siegfried, of $53.85, $130.85 and $801.50.
Members of the Milford Town Council are Douglas Ruch, Robert Cockburn and Gary Hurt. The town council meets at 7 p.m. in the Milford Town Hall on the second Monday of every month. [[In-content Ad]]
MILFORD - Bids for Milford's wastewater treatment plant came in higher than the engineering firm of Jones & Henry expected.
Monday, Brian Houghton, of Jones & Henry, said there were five contractors who bid. The lowest bidder was Thieneman Construction at $2,012,000. The engineer's estimate for the project was $1.75 million.
During the past three weeks since the bid opening, Houghton said, he's been talking to the contractors, subcontractors and suppliers to find out why all the bids were more than the engineer's estimate.
The reasons, he said, were because there were four projects for the contractors to bid on at the same time and Milford's was the last and smallest. A couple of possible bidders didn't bid. At the last minute, there was some confusion about the project. And most of the equipment for the project was not competitively bidded on. The project contractors were able to get one price from one supplier.
As such, Houghton said, the town has three alternatives. They can accept the bid. They can reject all bids and rebid the project. Or the town can proceed with the lowest bidder and try to make revisions and try to negotiate on some aspects of the project to lower the cost.
Houghton said he is pursuing the last alternative.
If the town were to reject all bids and then rebid, Houghton said, it would push the project back three to four months, and there are no assurances the bids won't come in at the same numbers or higher. There also are Indiana Department of Environmental Management deadlines the town has to meet.
Town attorney Jay Rigdon said the financial aspects of the project aren't all taken care of yet. In February, the bond council for the project plans to go ahead with the approval of the loan and rate increases. But the finances can't be finalized until they know how much will be needed.
Councilman Robert Cockburn said the longer the town waits, the interest rates may go up and the town will end up paying more.
Rigdon said there's little chance of any gain for the town as far as interest rates go by putting the project off.
Councilman Douglas Ruch made a motion to allow Houghton to tentatively allow the bid from Thieneman for $2,012,000 and for Houghton to do what he could to reduce the cost of the project.
In a related matter, the town council also approved an agreement with Jones & Henry for them to observe and inspect the construction of the wastewater treatment plant for $600 per day for 60 days.
In other business, the town council:
• Approved to advertise for the new position of a water/wastewater treatment plant operator. Utilities Superintendent Dallas Winchester said he hopes to hire someone with a minimum of a class one or two license. The person will be paid approximately $14 per hour and will work at least eight hours a day, five days a week, but not necessarily Monday through Friday.
• Approved the interlocal cooperative agreement with Van Buren township and with the fire department for fire protection. The town will pay the fire department four installments of $4,264 for 2004, for a total of $17,056.
• Approved the cooperative agreement with the EMS for 2004 for emergency services for $20,000. Ruch was approved to represent the town on the EMS board of directors.
• Approved a special meeting for Jan. 26 at 6 p.m. in the town hall.
• Heard the fire department received a $8,350 matching grant from the K21 Foundation for a compressor unit. The fire department also was able to raise the matching money it needed to raise for the grant.
• Approved the Milford police department to accept a grant from the Department of Defense for more than $17,000 for imaging equipment and for an officer to go to school for the equipment.
• Heard water usage in the town for 2003 is 49,737,000 gallons, down 4.8 percent from 2002.
• Approved a Milford police officer to attend the Kosciusko County Reserve Academy.
• Heard the park advisory board has three vacancies to fill.
• Elected Ruch as council president and Gary Hurd as vice president.
• Approved transfers, as requested by clerk-treasurer Charlotte Siegfried, of $53.85, $130.85 and $801.50.
Members of the Milford Town Council are Douglas Ruch, Robert Cockburn and Gary Hurt. The town council meets at 7 p.m. in the Milford Town Hall on the second Monday of every month. [[In-content Ad]]