The Bismarck City Commission finally gave in on awarding the $1.26 million north Fourth Street storm sewer project, but it will possibly lead to policy changes on what companies get city projects in the future.

Current city policy allows awarding of design and construction projects to companies that have developed project master plans through the request for proposal process. The theory is that it will save time and money on projects as the master plan is developed.

But commissioners have been at odds over the concept, with Steve Schwab and Sandi Tabor questioning its validity. Schwab said he wants to see each project of a master plan open to a bidding process rather than negotiating with the same company over and over again.

In February, utilities director Keith Demke brought the north Fourth Street storm water project to the commission, recommending design and construction be awarded to Ulteig Engineers, which developed the master plan update for the project. The ensuing debate, with Mayor John Warford and commissioner Connie Sprynczynatyk favoring the present policy versus Schwab's and Tabor's discontent with the process, ended in a draw (Commissioner Dave Jensen was not present) and the project was not awarded.

At Tuesday's meeting of the city commission, Demke returned with the project, along with developers anxious to proceed with projects of their own which are dependent on construction of the storm sewer project.

Demke's recommendation to proceed with negotiations with Ulteig remained the same, based on the original selection process. He requested commission guidance on the matter.

Tabor said that since the last discussion on the matter there had been some discussion with staff. The departments have been requested to identify any projects that fall under a similar type of issue. In conjunction, the audit committee, which has been working on policy concerning change orders, also will be the vehicle to develop criteria in awarding projects and/or use of the request for proposal process.

"I propose we tap into department head expertise in evaluating how we go ahead with design or use of the RFP,"Tabor said. "But first we need to take care of existing projects and then look at how we deal with them in the future."

It will be determined from the beginning whether projects will be continued or if each part will be RFP, Warford said.

Schwab also said that the commission wasn't getting the information they need to make decisions on complex projects early enough.

"We're getting stuff at the last minute and trying to make decisions," Schwab said. Warford suggested the commission send a message to the departments that when a complex project is to be considered, the information goes out to commissioners two weeks prior to the meeting. This will allow enough time for consideration.

Schwab said he also had some concerns on how the project was going to be paid for, along with accompanying road projects. Tabor said the projects are going to be special assessed to the property owners and there was no attempt being made to use city sales tax dollars.

Jensen, in attendance via conference call, said that contract language with Ulteig for the master plan stipulated the city retained the right to award the project as it sees fit.

Jack Kavaney, representing the property owners interested in developing property adjacent to north Fourth, said the commission's reluctance to negotiate with Ulteig on the storm water project is holding back a massive development project that is already two years behind.

While Tabor said she was concerned with awarding design and construction to Ulteig, she said the process was in place to revamp city policy and she could support the project award in order to get the project constructed. A motion was approved to negotiate with Ulteig, passing 4 to 1, with Jensen casting the only no vote.

(Reach reporter Gordon Weixel at 250-8255 or gordon.weixel@;bismarcktribune.com.)