No bids for street projects

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Uncertain oil pricing is hampering Bismarck's efforts to patch and repair streets with asphalt, the city commission found at its Tuesday meeting.

The annual call for bids to furnish paving materials for 2008 went unanswered, leaving service operations director Jeff Heintz pondering what to do. He told commissioners that, despite having extended the bid deadline, vendors were unwilling to bid beyond 30 days.

"We're hearing the thing is asphalt material," Heintz said. "We're finding that because the oil market is as volatile as it is, a yearlong bid is not economic for vendors or the city."

Should prices continue to escalate, the vendors would be forced to cover the high costs. If prices stagnate or fall, the city could end up paying more than it should, Heintz said. He said Burleigh County also failed to secure a bid for materials.

Working with the staff, Heintz said he recommended the city ask vendors for faxed quotes every two weeks and purchase materials as needed.

"It will reduce the risk to the city. Vendors don't want to bid beyond 30 days because it is a difficult market," Heintz said. "We don't have big jobs this year, just patching and street repair."

Commissioner Sandi Tabor said she questioned how the city will keep track of budget issues and determine when it's gone beyond what was established in the 2008 budget.

Heintz said he proposed a report similar to what was set up for buying diesel fuel and gas for city vehicles. Tabor said that the city's financial director has to be kept in the loop.

"I understand the problem, and I support giving public works some leeway," Tabor said. "I'm glad to hear there are no large projects, but 20 small projects have the same monetary issues."

By the next meeting, the commission wants a report on how the material purchasing will be monitored.

"That way, someone can come to the commission and say, 'We can't do any more, we've exceeded what's budgeted,'" Tabor said, in moving to implement the two-week quoting process. "Talk with fiscal and Bill (Wocken, city administrator), and come back with how we'll have checks and balances."

Commissioner Steve Schwab said that the city couldn't stop patching.

"You have to patch the holes. You have to deal with it, and you just can't stop," Schwab said.

The commission unanimously approved Tabor's motion.

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

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