SAC CITY, IOWA – MAY 24, 2010
1. Original estimates for number of trees contractor would have to cut: 292
- 268 more were discovered, not counting cemetery.
2. FEMA will cover $28 per tree if the city certifies that the work needed to be done.
3. The council will be in violation of state law if the bid goes above next highest bidder.
- Jim Johnston seems to feel that next bidder would have been in asking for more money as well.
- Adam Ledford adds that FEMA would not offer to pay for further trees if they were only off by a few trees.
4. Bill Brenny tells story about the night the bids were opened and recalls that the contractors who showed up to watch the bids opened were of the opinion that the two low bidders would lose their shirts if they attempted to do it for the price that they were claiming they could do it for.
- Bill Brenny doesn’t seem to think that it would be fair to the people that bid a correct amount.
5. Steele Inc. contractor points out that according to the contract, the city has the right to refuse any and all bids.
6. Nick Frohardt points out that if the council opens up and allows more money to be spent, then they will be susceptible to other contractors who wish to bid low to get the contract, then change the asking amount at a later date.
7. Adam Ledford wanted to make sure that everyone knew that no matter what the city decides to pay the contractor, the city will have to pay 15% of it.
8. Mayor Powell asks if the contractor would be willing to be paid under the next bid up.
- Bill Brenny suggests that they would then be setting a precedent for how future contractors will deal with the city.
- Nick Frohardt points out that it will open them up to the same for existing contracts.
9. Steele Inc. Contractor points out that of the 15% the city has to pay, the contractor is charging less per tree than the FEMA reimbursement, so the city will make it’s 15% back plus.
- Adam answers this by saying that because of the projects status, FEMA will reimburse for 85% of the actual cost, and there is not a per tree method for the city to make money off the project.
10. Jim Johnston suggests that the contractor bears part of the blame and asks if the contractor is willing to take half of the blame.
11. back and forth between Nick Frohardt and Jim Johnston.
12. Jim Frederick asks if the Steele Inc. contractor would give back money if FEMA would have underestimated.
13. Stele Inc. contractor claims that a FEMA rep said that Sac City was the most inaccurately estimated town they had ever seen.
14. The council asked that the Steele Inc. contractor to come back in 2 weeks with a dollar amount request.
15. Steele Inc. contractor gives an emotional appeal to the council.
16. Mayor Powell decides it’s not appropriate to read comments from the contractor aloud.
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