Ephrata accepts bid for water, road project

EPHRATA — The Ephrata City Council awarded the second phase of their water and road project to a Kennewick, Wash., company for $2.26 million.

Watts Construction won the bid, coming in about $20,000 below the next lowest of the 17 bidders.

The company will replace roads and pipes in the southeast section of the city this year, including the area between Division Street and Second Avenue Southeast and streets south of Nat Washington Way.

The northeast section of the city was finished last year.

“All of these areas will see, essentially, waterway and roads,” City Administrator Wes Crago said. “There are a couple small areas that won’t have anything. They’ll have a little bit of road work done where the water lines are OK.”

The goal of the project is to replace aging pipes and roads. Many of these pipes are more than 60 years old and only designed to last 10 to 15 years. Prior to the start of the project, the city lost about 24 percent of their water through leaks.

The city received a $6.6 million Public Works Trust Fund loan from the state to correct the problems, Crago said. The city also contributed about $1 million.

The four phase project is expected to be finished in 2011, Crago said. The city spent about $3 million on the first phase of the project. Engineers estimated the second phase would cost about $2.8 million.

“Only one contractor was above the engineer’s estimate,” he said.

Councilmember Kathleen Allstot asked how the contractor could come in about $600,000 lower than the engineer’s estimate.

Public Works Director Bill Sangster said he felt the engineering firm did a good estimate based on last year’s prices, but the prices were lower this year.

“A lot of things came in a lot cheaper this year,” he said. “What you really got to look at is how close the bids are. We got three bids that were right there, two of the same amount … You have to worry if you have one guy that’s $300,000 under everybody.”

City staff conducted interviews with six contractors or suppliers, five city officials and two private citizens who were having work done by Watts Construction in their neighborhood, Crago said. They also searched public records to see if the company was on any no bid lists.

“Everything is very favorable. They’re in compliance with all state (regulations). They’re not on any no bid lists. Labor and Industries is happy with them. Everything is acceptable,” he said.

One irregularity showed up during the search. Staff found the company was involved in a legal proceeding to lower a dust control fine by the Benton County Clean Air Authority. The contractor didn’t mention the lawsuit on their bid.

“They didn’t regard this as applicable because it was between the contractor and a regulating authority. It would not have ended up in the court system had (Watts) not tried to mitigate it,” he said.

The city’s staff did not feel it was an important error, but did ask the council to waive it as “not material,” Crago said.

The council voted unanimously to waive it and approve the bid. Mayor Chris Jacobson, whose company bid on the project, excused himself from the discussion and the vote.