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Spencer council rejects low bid for CDBG waterline project, chooses force account with WCUD
Summary
City officials rejected all bids for the 2023 CDBG waterline project after a low bid of $685,150; council voted to use force account and have WCUD and Spencer Utility employees complete the work so available funds would go further.
During the Jan. 30 meeting Zeda Hillis, representing James C. Hailey, told the council that four bids were received on Jan. 9, 2025 and that the low bid from LK Grant Company, LLC was $685,150. After discussion with WCUD, Hillis reported that JCH recommended rejecting the lowest bid to allow WCUD and Spencer Utility employees to perform the work and extend available grant funds.
The council voted first to reject any and all bids and then voted to proceed using force account with WCUD to complete the waterline work, authorizing Mayor Farmer to execute the necessary documents. Both motions passed on unanimous roll-call votes.
Anthony Pelham of WCUD was listed as present and the transcript records that the decision to use force account followed consultation with WCUD. The council did not provide an estimated revised project cost in the meeting record; the only contract figure in the transcript was the low bid of $685,150. The action replaces pursuing the low bid and instead uses in-house/agency labor to carry out the project under the CDBG award terms.
Next steps: the mayor was authorized to execute documents so WCUD can proceed under the force-account approach; the council did not set specific completion dates or a revised cost estimate at the Jan. 30 meeting.
