07-13-94 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL JULY 13, 1994 have been received as a result of the Ashbach bid, and such a position would provide a comfort level for the property owners. The Administrator recommended that the property owners be informed of the Council~s decisions on this matter in writing. Morelan stated that he was hesitant to guarantee the maximum assessment rate unless the City was sure that rebidding would bring more favorable prices. Morelan stated that even though he feels better bids would be obtained, he did not think it was right to give property owners a price break. Hanson pointed out that some of the materials prices in the bids were much higher than what the City has seen in the recent past. Even if the projects are rebid, the City has the right to reject all bids. The Administrator did not feel the City was takinq a great risk in rebidding and guaranteeing a maximum assessment rate. The Administrator felt rebidding was reasonably safe, and the City would see lower bids next year. Morelan did not believe the City should make that guarantee. Hanson reported that Mr. Frison contacted him and supported the rejection of the bids. However, Mr. Frison would still like the Council to reconsider the scope of the project. Morelan was concerned that after guaranteeing a maximum assessment amount, change-orders would occur increasing the cost of the project. Morelan hoped that rebidding would result in lower prices, therefore, not making the assessment rate an issue. However, Morelan did not feel the City should guarantee a maximum assessment rate. The City Administrator stated that his recommendation is to guarantee that the assessment rate will not be higher as a result of rebidding. Any change orders that might result from the projects, would likely be City expenses. The Administrator did not feel there were many risks involved, and felt such a guarantee would provide property owners a certain comfort level. 11