Clermont Council to Reverse Decision

(posted 6.14.09)

The Clermont Town Council will nullify its June 11 decision that called for using the change order method to add $14,000 to last month's paving contract award.

Council President Bob Hinshaw and Town Attorney Robert Lutz notified the Navigator on June 12 that change orders are limited to a 20% increase from the original contract amount. The council's increase was closer to 50%. The Speedway Navigator expressed a concern about the change order process when the council voted to add additional work on to the original $28,013 bid awarded to Harco.

The issue arose when Town Engineer Dick Mosier told the council there was additional money in the budget. The surplus was due to the engineer's estimate of $45,000, which was calculated when asphalt prices were much higher than the current market.

Mosier urged the council to use the change order process. He said he was not an attorney, but he was doubtful that rebidding the project would change the award. His comments were based on analyzing the bidders' cost per unit to do the job. He said Harco Paving had the lowest cost per unit to mill and repave the roads. Lutz recommended the council issue a new request for proposal. The council voted to accept Mosier's recommendation because the scope of the work was not changing.

Hinshaw explained the additional paving projects will now go through the bidding process.

Lutz told the council they will soon be receiving their public safety local option income tax money. Clerk Treasurer Kathy Arauco reported earlier this year that the town was no longer receiving its public safety LOIT, which amounts to about $40,000 per year. Lutz reported at the May council meeting that the city no longer recognized Clermont's eligibility to receive public safety LOIT, despite the town having a police department. Indianapolis Corporate Counsel has since determined Clermont is a legitimate town.