City staff recommends awarding wastewater pretreatment contract to second-low bidder

City administration and the public utilities committee recommended the Le Mars City Council award the Wastewater Industrial Pretreatment Facility project to the second-low bidder, Hogan Door Construction, following review of bids, contractor qualifications and legal counsel guidance under Iowa Code 26.9.

Staff told the council that while Hogan Door Construction was not the low bidder, the administration and the public utilities committee believe that awarding to the second-low bidder is in the city's best interest based on contractor qualifications and background verification. Staff reported the second-low bid is about 1.1% ($331,167) higher than the low bid and said the project would be funded through sewer revenue bonds. An estimate for the project was provided as $34,760,000.

Staff cited Iowa Code 26.9 to explain that public utility bids may be awarded in the city's best interest rather than strictly to the low bid. The council heard the recommendation and discussion of the bidders and verification process; a final award decision was not recorded in the provided transcript excerpt.

Quote: "While Hogan Door Construction is not the low bidder, administration and the public utilities committee believes they are the contractor in the best interest of the city," staff said.

Next steps in the record: staff review of bidders' qualifications and consultation with legal were completed and staff placed the recommendation before council for action.