Performance impacts city CIP bid award

The Navasota City Council held a Special Meeting Tuesday, July 5, and awarded the 2020 Capital Improvements Project-Downtown (CIP) to second lowest bidder, D&S Contractor. The project consists of replacing the water main on W. Washington Avenue at N. LaSalle Street. According to City Manager Jason Weeks, the Special Meeting was called due to time constraints and upcoming vacations. Councilman Josh Fultz was absent.

Weeks stated that the item, Phase I of the $10 million CIP, is in the design stage and consists of installing an 8-inch water line by bore, around 800 linear feet, in the 100 and 200 blocks of W. Washington Avenue and a 6-inch water line, around 400 linear feet, in the 100 block of N. LaSalle St. The project will include service leads to existing meters and replacing existing fire hydrants. This particular part of the project was scheduled first to coordinate with TxDOT work scheduled for downtown.

Past project concerns

According to Weeks, the lowest base bid was submitted by Palasota Contracting, LLC in the amount of $278,490 followed by D&S Contracting, Inc. whose base bid was $480,490.

Weeks referred to a 7-year old project which involved boring under SH 6 for relocation of a 10-inch water line. Documents provided council included a Liquidated Damages Letter and Change Order No. 2. Weeks noted a delay of more than a year to complete the project.

He said, “All that was done by Palasota Contracting. Also, the work of lowest bidders as seen by the City and Bleyl Engineering on previous projects, although sometimes accepted, has not always met the quality that was paid for, desired, specified in the project plans. In fact, there were errors that required engineering to correct the work resulting in significant delays to the projects. The difference you’re looking at between the lowest bid and the second lowest bid is over $200,000.”

Comparing the bids provided by Bleyl Engineering, Palasota’s bids were significantly lower than D&S for each item in the specifications, for instance a $47,000 differ ence to furnishing and install the 8-inch line.

Weeks said, “Staff’s recommendation after discussions with Bleyl is to award the second bidder which is D&S Contracting for $480,490.”

Budget concerns

Discussion moved to the impact of this phase of the project to the budget.

Mayor Bert Miller said, “I’m concerned about what will happen with the whole project if we’re going with the extra $200,000 based on these quotes.”

Weeks responded saying, “You might end up spending a lot more to come back and fix something someone has underbid in the project.”

He said that Palasota’s recourse for not being selected as lowest bidder is Liquidated Damages for the profit that they would have received. Noting the $200,000 difference, Weeks said there would not be much profit. The third next lowest bidder, Texcon General Contractors, was in line with D&S Contractors and said Palasota “is not even a choice.”

According to Bleyl Regional Manager Tim Wolff, P.E., a supplier said to expect around $400,000, and he concurred. Wolff also noted TxDOT’s concerns about Palasota’s low quote for traffic control.

He said, “It doesn’t look like there’s a lot of thought put into it. I don’t know that - it just appears that way.”

Weeks pointed out with rising interest rates, the City is earning money which will make a difference and staff will look for savings in other projects to help offset the $200,000 difference. He added that given the intersection is a major location downtown, the boring needs to be “done right” since TxDOT will be working on top of the project.

Impact to business

Utilities Director Jennifer Reyna said the water main replacement will begin at the Spring Factory to the Washington-LaSalle intersection, then west from Off the Map to Railroad Street under the westbound lane and will take about one month. She acknowledged parking will be a problem with only a few spots available for approximately two weeks, but work will be completed by September and won’t impact downtown events.

View city council meetings in their entirety at www.navasotatx.gov/city-council/pages/ meeting-videos.