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Hays council approves $138,174.69 contract for Country Lane well; performance bond discussion settled
Summary
Council voted to award a $138,174.69 contract to Bee Cave Drilling to plug the old Country Lane well and drill a new well; the contract includes a 50% upfront payment and council agreed to require a performance-bond option (estimated 3—5%) to protect the city.
The City of Hays approved a contract with Bee Cave Drilling to drill a new Country Lane well and plug the existing well, awarding the bid at $138,174.69 and authorizing Mayor Harvey Davis to execute the agreement with the city engineer's concurrence.
Staff said the contract is a turnkey bid covering plugging the existing, drilling and completing the new well; items not included in the contract are running power to the new site, moving the fence, and the short tie-in of a four-inch line to the distribution system. The mayor and staff said the city will pay 50% of the contract up front and that the bid rose from roughly $134,000 to $138,174.69 because of the addition of a camera survey and site requirements.
Council members debated requiring a performance bond to protect the city's upfront payment. Staff said a performance bond is uncommon on smaller drilling contracts but can be added at a cost of roughly 3—5% of the contract price; the council moved to require the bond or have cost not exceed 5% as part of the delivered contract. The council approved the bid and authorized the mayor to sign the contract, with staff noting the drilling work could start around Nov. 11 and the drilling portion should take about two weeks.
