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Sac City Council tables contract amendment with Steele Inc. for debris clean-up

SAC CITY, IOWA – MAY 12, 2010

Mr. Steele came to Adam in the week previous to the city council meeting with concerns about the amounts that he had bid, using the estimates put out by FEMA. According to Adam Ledford, Sac City Administrator, the amount of work FEMA estimated are ‘Significantly off.”
(Referenced under 2.3 in the contract.)
Based on this concern, the city started to identify trees that were not identified by FEMA.

FEMA, with limitations, gave the go ahead to amend the contract to allow the city to up the amount that Steele Inc. could collect for the work. Adam Ledford reminded the council that in order to comply with the law, they had to be mindful of what the original bids from the other contracts were so as to avoid actually violating state code by paying Steele Inc. more than the next lowest bidder. One of the actions that will send up a red flag to the auditor is if the city pays out an amount to the contractor that does not match what the award amount was. According to Mr. Ledford, there are proper steps to take that will allow them to remain in compliance and it is doable.

According to Councilperson Gary Hansen who claims to have personally inspected tree damage, there was a lot of damage that occurred after the FEMA inspectors passed through due to ice and snow still hanging in the trees.

Councilperson Bill Brenny questioned whether the contractors took a tour of the city prior to accepting. According to Mr. Ledford, prior to bidding the contract, the city provided a copy of the contract, and a copy of the FEMA estimates plus an actual tour of the community that emphasized the areas that are considered public. The biding process was open in early to mid-March when all of the snow was gone. The contract was awarded on April 12, 2010.

Dean Lanning, who has been acting as the city’s inspector during this process said, “…Everything that was in addition to what was marked on the map, FEMA would take a GPS and locate it, each tree.” According to Mr. Lanning there are, in some cases, 7 or 8 trees in one block over the estimates. He seemed to suggest that FEMA’s initial estimates were not very accurate, using 5 trees at the catholic church that were missed as an example. Said Lanning of Steele Inc., “These guys have done a pretty good job and they’ve moved pretty quick.”


The original FEMA estimates were performed in mid February.

Councilperson nick Frohardt asked the contractor, who was present, if they looked at the trees. Mr. Steele said that he had, but that he looked at the size of the trees, since that is a better determiner of how long it takes to do a tree. According to Mr. Steele, if he had to do it all over, he would spend at least a week to looking around to determine exactly what needed to be done. Mr. Steele said he had to go off the numbers that were provided.

In response, Councilperson Frohardt said that he talked to some of the other bidders and claims that they told him that they knew there would be more work than what FEMA listed, and allowed for that in their bid. Mr. Frohardt continued, “With that in mind, have you got a dollar figure your looking at?”
Mr. Steele answered, “I still don’t know how many trees there are, I guess.” Mr Frohardt said, ;I feel kind of bad, after we approved the lowest bid. Which we had to take, and then come back and go, to say, now what about these other guys that did a more thorough job and knew it was gong to be more extensive?”

Mr. Steele asked if the councilperson thought any of those contractors could give him an accurate number, to which Mr. Frohardt seemed forced to admit that he did not know, but that those contractors bid more because they knew there was going to be more.

Mr. Frohardt again emphasized that the city had to take the low bid, and complained about the spot this put the city in.

Mr. Brenny broke in and read a portion of the contract that said the following: “The estimated amount of debris to be removed under this contract is not guaranteed.” He voiced his support for Mr. Frohardt’s position saying, “all of the other contractors… they perhaps took that into consideration… we don’t know that.”

Mr. Steele emphasized that estimating it would be a week long process and that you would have to have your monitor with you, because you couldn’t just assume what they were going to ask you to do.

At this point Gary Hansen reminded everyone present that he accompanied the contractor and saw first hand that there were whole blocks that were not represented In the FEMA estimate… that the maps were not correct.

Councilman Fr4ederick joined Frohardt and Brenny saying, “I would make my bid based on my estimates, not FEMA’s”

The contractor pointed out that the FEMA inspectors were not going to just let them drive by a tree with a 2 inch hanger in it, even if it wasn’t marked.

After a little more back and forth, Mayor Powell suggested that the council table the decision until the contractor could come back with more accurate information about how much extra work there would be. The contractor agreed to that suggestion.



The conversation ended on a hopeful note for the contractor with Adam Ledford putting out information that FEMA was having an identical problem in other communities.


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