Minutes-09/04/1968

Upon completion of the reading, there was a question from one of the bidders as to whether or not the certified check being held by the town might at this time be replaced by a bid bond in order to release the funds. Mr. Reed answered that any request submitted to us would be carefully considered, and the company requesting it would be notified at the decision at the earliest possible time. The bids will be checked by the engineers, and the bidders will be notified as to their status. At that time, most of those present left the meeting, with three engineers from Powers-Willis remaining, along with Mr. Koch and Mr. Tometich of the F.H.A., DeWaine Slade, Mr. Neuzil, the council, mayor, and clerks. Mr. Reed analyzed the total project cost on the basis of bids received and obtained a total of $145,752.00. He said this compares with our recent total project cost estimate of $132,000. The differences are principally in the treatment and the water tower. Mr. Koch of F.H.A. voiced his agreement with Mr. Reed's figures, except that F.H.A. cannot legally loan or grant for initial operating maintenance, and Well #1 which is in the ground should not be included in the estimate. This would bring the estimate based on bid to $143,682.00. Mr. Koch suggested that a new survey of potential users might bring out some added income, but the council was unable to add more than three units to the survey at this time. Mr. Koch suggested also that first of all the town should talk to these contractors about extension of time pretty quickly, because there are enough complications in this thing that 90 days will not be enough. Part of the conditions of bidding is that the contractors agree that they will hold these bids firm for no longer than 90 days. Prices can go up; labor goes up; they get jobs someplace else, etc. Sometimes contractors agree to hold more than 90 days. It will take us about 90 days if everything falls into place. Mr. Koch continued - You may be aware of the fact that this was one of the first projects that F.H.A. funded in the State of Iowa--obligated money for. All the complications that have developed since have been in the form of delays of one kind or another. I am concerned now about getting from here to the place where we can get this thing accepted. The additional money that will be involved here is going to cost more than the last time. We will stick with the original commitment; the new money will cost you no less than 5%. Initially, we expected your rate to be $4.75 as I recall, and this is $4.75 as based on the minimum usage of probably 3,000 gallons per month. This is the one we generally use. It goes up after that. I am guessing at this point that this is going to be around $6.00 or $6.25 if we go with this new rate of money. Your operating rates will remain about the same, but your debt structure will be higher. The question the council needs to resolve at this point is a statement which must be in the minutes which will be a resolution as to whether or not in the face of these facts you want to proceed to get this accomplished or whether you want to abandon the project at this point; in other words, whether you want to go ahead or you do not want to go ahead. The increased rate of $6.50 per month isn't exactly high priced, according to Mr. Koch. He talked with a man in a town about twice the size of Tiffin whose quarterly water and sewage bill totalled $59.50.