COLDWATER, MI — After being tabled on June 8 due to two tie votes, the Coldwater City Council unanimously awarded the bid on Monday, June 22, to fully reconstruct East and West Pearl streets and a block of South Hudson.
Hunter Prowl of Battle Creek won the $2,890,350 bid in a unanimous 7-0 vote.
The council was divided on whether to accept the lowest bid or give preference to local contractor Parrish Construction, whose bid was 2.2% higher, about $67,000.
Board Chairman Brad Parrish encouraged the city to favor local bidders to support local jobs and keep money in the community.
Issues raised on June 8
Past practice: City Manager Keith Baker noted the city has previously chosen local contractors over low bids when the difference was within 5%, following an informal local-preference guideline. “But it’s not written into the purchasing policy,” he said.
Concerns raised: While 5% may seem minor on small projects, $67,000 is significant on a $2.9 million contract, Baker said.
Local capacity: Several council members emphasized that supporting local contractors helps sustain the local workforce and prevent the loss of local businesses, as seen during past declines in the home-building industry.
Future bidding: Mayor Tom Kramer noted that consistently choosing only local firms could discourage outside companies from bidding on future contracts.
At Monday’s meeting, two Hunter Prowl representatives attended, while Parrish brought a dozen local employees to show their support.
What changed the vote:
Councilman John Petzko was absent on June 8.
Petzko expressed his preference for local bidders but emphasized his responsibility to taxpayers, especially since there is no formal local-preference policy.
Kramer and Councilman Jeff Budd, who voted for Parrish on June 8, were absent.
Councilmen Jim Knaack and Randall Hazelbaker changed their votes after learning that Hunter Prowl would hire local subcontractor Excell Paving for the project.
Council members at both meetings suggested that the city adopt a written policy favoring local bids.
City attorney Amanda O’Boyle will take council members’ suggestions, along with some of her own, and draft a policy for consideration.
Contact Don Reid: dReid@USATodayCo.Com
This article originally appeared on Coldwater Daily Reporter: Coldwater Council awards $2.9M Pearl Street project after tie vote
Reporting by Don Reid, Coldwater Daily Reporter / Coldwater Daily Reporter
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By Don Reid, Coldwater Daily Reporter | USA TODAY Network
