Niles City Council rejects higher bid for home improvement loan

Published 1:55 pm Tuesday, October 10, 2006

By By MICHAEL C. GUILMETTE JR. / Niles Daily Star
NILES – Showing division not often seen, the Niles City Council rejected a bid for a home improvement loan, instead voting to compel the original lowest bidder to go forward with the project.
The loan request, which called for a $24,802 home loan for a home at 66 S. 3rd St. in Niles, was tabled by the council on Sept. 25 when council members questioned why the lowest bidder, Starbuck Construction, had been allowed to withdraw their bid of $18,430 after the bidding period closed.
These same questions arose again from the council Monday evening when council member Dan VandenHeede asked why a higher bid was being considered.
Tim Batton, executive director of the Greater Niles Community Development Corporation, told the council that after speaking with Jim Starbuck of Starbuck Construction, he said Starbuck was "uncomfortable" with the amount of foundation work needed for the job and their bid was too low. Because of this, Starbuck Construction wanted to withdraw their bid.
Council member Bruce Williams pointed out that bids may not be withdrawn during the bidding period, saying Starbuck Construction had the legal obligation to fulfill the contract. He asked if the council could compel Starbuck Construction to do so, and Mayor Mike McCauslin said they would if that were the position of the council.
Council member Pat Gallagher moved to approve the higher bid made by Jim Payne Construction, but the council vote went 4-3 against the proposal. Afterward, the motion to approve the Starbuck Construction bid, which passed the council unanimously.
Gallagher expressed concern that the work would be completed properly, but she was assured the work would be completed to code, even if they needed to hire another company to do the job.
Also at the meeting, the council:
Approved a request to hold the annual Downtown Safe Trick or Treat and the annual Halloween Costume Contest on Saturday, Oct. 28;
Approved the purchase of three single phase voltage regulators for the Brandywine substation from Siemens Power Transmission &Distribution Company of Jackson, Miss., at a cost of $24,675;
Accepted a bid of $174,000 from Virginia Transformer Corporation of Roanoke, Va., for the purchase of a 7.5 MVA station power transformer;
Adopted a resolution to enter into a National Pollutant Discharge Elimination System inter-agency agreement with Niles Community Schools in order to include them in the Wastewater General Discharge permit;
Adopted a resolution supporting the Housing Resource Network of Southwest Michigan in their 10-year plan to end homelessness in Berrien County;
Accepted a proposal from Fishbeck, Thompson, Carr &Huber of Grand Rapids to provide services to assist with National Pollutant Discharge Elimination System Phase II;
Approved revisions to the City of Niles Personnel Manual, and;
Approved contracts for lawn care for city hall, street department properties and grounds maintenance work at Silverbrook cemetery.