City awards $101,766 paving bid

Dave Marner

A city paving contract worth $101,766 was awarded Monday and the two lowest bids were separated by just $476.

The winning bid was actually $476 more than the lowest bid overall. However, it was the firm submitting the lowest base bid which was awarded the contract. 

Jeff Kuhne, the city’s public works director, told Owensville aldermen the city’s practice has been to award winning bids to the firm which submits the lowest base bid and mobilization fee.

West Contracting’s base bid was $75,610 with a $2,080 mobilization charge. The city also sought price quotes for two options.

West bid option A for $20,467 and option B for $3,609 for a total of $101,766.

Pierce Asphalt’s base bid of $82,650 was higher that one submitted by West Contracting. Pierce quoted a mobilization cost of $2,000. Pierce’s overall bid with two options was $476 less than the West quote. Pierce’s bid for the entire project was $101,290 with a base bid of $82,650. Pierce’s bid on option A was $14,570 and option B was quoted for $2,070.

Ward 2 Alderman Rob Borgmann made the motion to award the bid to West Contracting. The city had budgeted $100,000 for paving work this summer.

City Administrator Nathan Schauf noted the city’s street fund was projected to end the fiscal year next June 30 with a budget surplus of $8,000 — plenty to cover the $1,766 the bid came in over their budgeted spending for the work. Borgmann’s motion was approved 4-0 following a second from Cathy Lahmeyer of Ward 1.

Capital Paving and Construction was the highest bidder of the three firms seeking the city’s summer paving project. Capital bid the entire project for $117,205 which included a base bid of $87,000, a $5,275 mobilization fee, $21,850 for option A, and $3,080 for B.

Aldermen earlier in the meeting agreed the city would look into selling the old ambulance building on Second Street which has been used for the past 14 years by the Helping Hands Outreach Center. The HHOC is seeking cost estimates to add up to 1,000 square feet of space into the 2,500-square foot building. Andrew Michel spoke on behalf of HHOC.

HHOC leases the building for $1 a year and is in its third five-year lease cycle. Aldermen agreed to check with the city’s attorney about selling it to HHOC, possibly for $1. Aldermen told Michel they would have more firm details by Aug. 6.