New priorities may cut cost
As a way of paring down costs, and still keeping Project AWAYSIS on a manageable timetable, the Storm Lake City Council Monday night rejected a lone bid for its earlier Phase I estimate for Project AWAYSIS and approved revised specs for the beginning phase of the project.
The city had a pre-bid estimate of $1,040,000 for Phase I but received only one bid from Godbersen-Smith Const. Co. Inc. of Ida Grove for $1,643,313.80. Rising fuel costs and the city's substantial penalties for late completion were blamed for the high bid.
Project AWAYSIS Project Manager Mike Wilson said the fact that the original Phase I bid was opened nine days after Hurricane Katrina may have had a strong impact on petroleum prices. Concerns over the hurricane's impact may have also been reflected in a fear over higher prices for PVC pipe, Wilson said.
Yet another reason for the Godbersen-Smith bid being higher than expected may have been the different aspects of the project that were covered in one bid. "We put a lot of different things in that package," Wilson said.
Wilson said the revised bid called for a unit price for fill soil. As for the amount of fill that will be required, said Wilson, "We're pretty confident with the amount that has to be moved into there." The major work to be done this fall is the fill under the proposed lodge. Wilson said that reprioritization has "converted from 'nice to do' to 'have to do'."
After the Council rejected the Godbersen-Smith bid Monday night, it approved a resolution for revised Phase I plans to now deal primarily with placement and grading of fill, grading for the relocated Sunrise Road and parking, tree removal, removal of Sunrise Road, and removal of gravel parking.
Two different completion dates have been established - Dec. 30 for all work west of the relocated Sunrise Road and May 15, 2006 for grading the new road surface and parking. The revised Phase I cost estimate is $677,503, with a $500 penalty for late completion of construction.
Wilson said delaying the deadline for completing the remainder of Phase I until next May 15 will not delay lodge construction. "It opens it up for more people to bid," Wilson said. He said two earthwork contractors said they would bid, compared to one on the original Phase I bid. "We hope that expanded timeframe will make them more comfortable to bid," Wilson said. He said the golf course parking lot could be completed this fall at the earliest or at the latest the end of next June.
The revised Phase I bids will be opened Friday with the award scheduled for Sept. 26.
Another public hearing on plans and specs for relocation of the golf cart storage building will be held Sept. 26 with bids due Sept. 30. Wilson said all three portions of Phase I should be somewhere between the original estimate of $1,040,000 and the Godbersen-Smith estimate of $1,643,000.
In other business, the Council:
*Observed Mayor Jon Kruse sign a proclamation recognizing the week of Sept. 19, 2005 at Project AWAYSIS Pledge Week.
*Held a public hearing and approved a resolution approving the voluntary annexation of the Bill and Janice Patton Property at 837 1/2 610th St. north of West Lake Estates.
*Approved a resolution approving the 2004-05 fiscal year street finance report.
*Held a public hearing and approved a resolution approving specs for the pool demolition project. The bid opening will be Thursday.
*Approved a resolution accepting the 2005 hot mix asphalt street improvement project.
*Approved second reading of an ordinance raising sewer rates by a total of $7.30 over three years.
*Approved an ordinance making no parking zones on the west side of College Street from West Third south to the off-street diagonal parking on the east side of College Street and from the south side of West Third Street from College Street east to the alley that runs north and south between College and Otsego. Traffic congestion was the reason some area residents had requested the area for no parking.
*Mayor Jon Kruse noted a ribbon cutting at 10:30 a.m. Wednesday for the east spoil site. The Lake Preservation Association will hold a picnic at Casino Beach 11 a.m. to 3 p.m. Sunday.