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Project may be re-bid

Friday, November 6, 2009

Do you think a public bid process should be used when taxpayer money is funding a project?

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Re-bidding of at least part of the Emporia school district’s $6.8 million energy project has not been ruled out, according to Koby Kampschroeder of Custom Energy Solutions, one of 10 energy service companies (ESCOs) authorized by the state of Kansas to handle energy-conservation programs and projects for governmental units and school districts.

Kampschroeder represented Custom Energy during the district’s energy audit, subsequent bid-lettings and arranging for contractors, and final approval from the school board.

Since the board approved the project on Sept. 23 and accepted the financing through PiperJaffray financial services, an Andover sports company official has said that if the company had been allowed to bid, it would have saved the local school district between $200,000 and $400,000 of the $1.67 million bid accepted from McConnell and Associates to install the new artificial turf football-soccer field, a track around the field, and associated accessories, such as fencing, bleachers, and sidewalks. McConnell plans to use FieldTurf artificial turf.

Kampschroeder has talked with Paul Driver, president of ATG Sports Industries of Andover, the company that wants to be allowed to bid.

Kampschroeder noted that ATG’s estimate was not based on written specifications.

“They’ve said that without knowing what the scope of work is, so we’re starting to share some of that scope of work with them as well. We’re trying to see if that’s valid or not,” Kampschroeder said.

The list of proposed contract team members, and their accompanying bids that made up Custom Energy’s project cost totals, may not be the companies that will be used on the project, although the school board voted to accept Custom Energy’s final plan.

“There’s been no formal selection yet,” Kampschroeder said.

Speaking specifically about the athletic portion of the project, Kampschroeder explained how the bidding had been handled.

State law allows governmental entities to assign responsibility for bidding and following through with projects in certain circumstances involving energy-saving projects.

“We did what we call a select-bid process,” Kampschroeder said, “so basically we pre-qualify bidders and we had four bidders that were pre-qualified and then three ended up actually providing the bids.”

Kampschroeder said that checking references of the companies is part of the qualification process, and that would need to be done for ATG, which would use Ram Turf artificial turf in its installation.

ATG’s request to bid could prompt additional bidding.

“That’s something that we’re talking to the district about, and we’re trying to figure out how to deal with that,” Kampschroeder said during the interview last week. “We have talked about the possibility of throwing everything out and re-bidding it. .. I think there’s been no decision made on that at this point.”

Kampschroeder said he was concerned that if the amounts of bids were published and discarded, and new bids requested, companies will know the amounts of the bids submitted in the previous round of bidding.

School district Superintendent John Heim shares that concern, because of its potential effect on future projects.

He said that earlier in the project development, he had called four or five school districts who had similar projects to see how the pricing compared, and was satisfied that the cost for the local project was “right about in the middle.”

“Once you go through the process, you accept bids, it’s really not fair to the people that have already bid and showed their cards, so to speak, and then be subject to someone who didn’t go through that process being able to lowball,” Heim said. “... The concern is always that when you do another project, will you be able to get bidders because if they think the first go-around is just to see how the bids come out and you’re going to re-bid it ... then you’re not going to get bids. Contractors won’t mess with you.”

Heim said, however, that he was interested in following through on the information from ATG, and that Kampschroeder has completed a comparison survey for both companies. Results will be presented to the school board at an upcoming meeting.

Kampschroeder’s background checks of references and other information are the same for each company, so each company was measured by the same criteria to qualify. Among those items that were checked are timeliness of completion, guarantees, product quality, whether there have been issues arising after installations, maintaining a good job site and other criteria.

“Just so it’s done in exactly the same way,” Heim said.

“I want to see the information before I make a decision,” Heim said. “I want to try to be fair. I want to try to get the best price. But I also want to have a quality product. Every company thinks they’re the best and the cheapest and everybody’s got a little different angle on what they’re selling. ...

“What we’re losing sight of is that overall this project’s going to save the district a lot of money, and $7 million, $350,000 a year, that’s money that we can spend on classroom budgets, instruction, that we would have been paying the utility companies. That was the whole intent of this project.”

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Posted by admireed (anonymous) on November 6, 2009 at 2:57 p.m. (Suggest removal)

By golly, the $350,000 per year in savings could be used to reduce taxes

Posted by methusla (anonymous) on November 6, 2009 at 3:10 p.m. (Suggest removal)

I know nothing about getting Federal Stimulus or Grant monies, but why is stimulus or grant money being handled by
PiperJaffray financial services, and why is it being called financing ? Just sounds a bit shadey to me !
Why couldn't the stimulus or grant monies be handled by a local bank or financial instution ?

Posted by methusla (anonymous) on November 6, 2009 at 3:11 p.m. (Suggest removal)

Admireed
What a dreamer you are, LOL .

Posted by methusla (anonymous) on November 6, 2009 at 3:30 p.m. (Suggest removal)

Here is some info I have managed to come across on PiperJaffery,

Piper Jaffray & Co. (NYSE: PJC), often shortened to just Piper Jaffray or PiperJaffray, is a U.S. middle-market investment banking firm based in Minneapolis, Minnesota, and sells financial advice, investment products, and transaction execution within targeted sectors of the financial services marketplace. Through its principal subsidiary, Piper Jaffray & Co., the Company targets corporations, government, non-profit entities, institutional investors, and the financial advisory needs of private individuals.

In 2002, Piper Jaffray was fined $25 million by state and federal regulators to settle charges that it provided biased stock ratings. Other firms, such as JP Morgan and Goldman Sachs were also fined for similar reasons. The firm agreed to make structural changes relating to its research and investment banking program in order to restore confidence in its business

Piper Jaffray Agrees to Settle Charges on Ratings of Stocks
Published: Tuesday, December 31, 2002
The investment firm U.S. Bancorp Piper Jaffray, said today that it had agreed to pay $25 million and to change the way it does business to settle charges that it provided biased stock ratings.

Piper Jaffray said it had agreed in principle with federal and state regulators to resolve its part of an industrywide investigation into accusations that 12 firms misled investors by inflating stock ratings to help them investment banking business.

Don' t know whether I would really be doing business with these guys !

Posted by methusla (anonymous) on November 6, 2009 at 3:37 p.m. (Suggest removal)

Want to find out more about PiperJaffray go to this site,
http://findarticles.com/p/articles/mi_m0...

Posted by Tell (anonymous) on November 6, 2009 at 3:47 p.m. (Suggest removal)

ATG needs to market themselves better and quit crying because they didn't get to bid {get over it}. You don't win them all. Any contractor in America could say they could have bid cheaper after the bids are turned in.

Posted by methusla (anonymous) on November 6, 2009 at 4:04 p.m. (Suggest removal)

How many companies were contacted to make bids, 1,3,8,20,30, 50 ?
You can' t say get over it, if only 1, 2, or 3 companies were contacted to bid and was the company selection made on the amount of the bids or was there some sort of outside influence involved, who knows for sure, I certainly don' t !

Posted by Joe (anonymous) on November 6, 2009 at 5:53 p.m. (Suggest removal)

Tell- you said

"ATG needs to market themselves better and quit crying because they didn't get to bid {get over it"

They were never even let in on a bidding process. If they can save our school district just $5000 dollars I would give it to them. They are Kansas based company. The original contractors for the highscool turf were from Canada. I don't know about you, but I would rather help keep Kansans with jobs! This is the same company that put in the ESU Baseball field. They beat out all other bids and did an outstanding job. If they say they can save us money, they will.

The school board and district has done a very poor job concerning this matter.

Posted by Tell (anonymous) on November 6, 2009 at 8:33 p.m. (Suggest removal)

I will save the school district one million pay me 50,000 per year for the next 12 years and I'll mow the current field savings 1 mil
by then the turf would need replaced any way.

Posted by lifer (anonymous) on November 6, 2009 at 9:22 p.m. (Suggest removal)

All the contracts should be put out for public bid.

The SCHOOL BOARD needs to wake up and turn on their brain and do what taxpayers elected them to do. Quit being brain washed by the Superintendent.

Even though school board can hire a company manage the project the board still needs to ask questions and make sure tax money is being spent wisely.

Posted by history (anonymous) on November 6, 2009 at 9:26 p.m. (Suggest removal)

We need more board members like Mike Helbert. He is the only one with a brain to question the superintendent and also vote NO on the the energy plan. Mike please give your fellow board members lessons on how to have a spine.

Posted by racefan (anonymous) on November 6, 2009 at 9:34 p.m. (Suggest removal)

I don't buy the superintendent excuses and the school board shouldn't either. The time and when people bid shouldn't matter. The only thing that matters is how the taxpayers can get the best products for the cheapest prices. We shouldn't be in a rush to try and keep up with the Joneses.

Posted by biscuitboy (anonymous) on November 7, 2009 at 5:06 a.m. (Suggest removal)

Like I said earlier....School boards have a tendency to spend way to much time in the architects office and not near enough time in the classroom.

Posted by lifer (anonymous) on November 7, 2009 at 5:59 a.m. (Suggest removal)

The first sentenence says

Re-bidding of at least part of the Emporia school district’s $6.8 million energy project has not been ruled out

Attention school board members pay attention. If they are going to rebid part of it why not have them rebid all of it under a public bid process.

That is the only way to ensure to tax payers that there is no corruption by Custom Energy giving jobs to their friends!!!!!!!!!

Corruption happens every day and it can happen in our community. So school board members pay attention.

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