Meta tables contract approval for maintenance shed after issues with OSHA 10 training

By Neal A. Johnson, UD Editor
Posted 8/21/19

Meta aldermen at last Wednesday’s monthly meeting tabled a measure to finalize the contract with Loethen Construction Inc. for the construction of a 40x60 metal shed due to questions about the …

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Meta tables contract approval for maintenance shed after issues with OSHA 10 training

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Meta aldermen at last Wednesday’s monthly meeting tabled a measure to finalize the contract with Loethen Construction Inc. for the construction of a 40x60 metal shed due to questions about the bid raised by contractor Tony Loethen.

“The trouble is the OSHA 10 training,” said Loethen, noting the requirement to have the training through the Occupational Safety and Health Administration was not included in the original bid specs and would have changed the way he approached the bid. “If that had come out, you probably wouldn’t have gotten any bids on it because the bigger companies don’t mess with $100,000 bids. That’s why you only had two bids.”

It’s been several years since Loethen Construction has handled a public project, and said he was unaware of the OSHA training requirement.

“I gave you a very competitive bid because I grew up here, and I really wanted to do it, but the cost of (training) wasn’t included in my bid,” said Loethen, noting it will cost $3,000 between the training and the hourly pay for his employees. “I’m willing to stand by my bid, but I’m going to need an extra $3,000 to cover that because it wasn’t in my contract.”

City Clerk Deidra Buechter explained that it was unknown the city would be required to include OSHA training in the bid specs. Prevailing wage for projects exceeding $75,000 was known, and required as part of the bid process.

“We didn’t know any of this,” Alderman Lawrence Hoffman said by way of agreement.

“I didn’t know it either,” said Loethen, who was sent the information by the city after Buechter learned of the requirement.

“When you’re a government entity like we are, and you bid something out, there’s all kinds of government rules,” said Alderman Steve Sherrell.

This is the largest project the city of Meta has undertaken, which by its nature elevates the amount of oversight. OSHA 10 training has been required since 2009.

“This puts us in a predicament, because obviously, we have to follow the rules,” said Alderman Ivie Helton. “We wanted a competitive bid and we got one, so on the one hand it makes sense for us to allow the additional $3,000 to your company to come into compliance, versus us going forward and running the risk of getting in trouble for not having the training.”

Rebidding the project may be the only legitimate option, but it may not go over well.

Loethen said not only would it be difficult to get a more competitive bid than what he offered, he believes no one else would even consider bidding.

“We’re not looking at any other companies to do this,” said Helton. “But it’s important we do the right thing. This is a learning process for us, and this is our biggest project. We are a smaller city, so we don’t encounter these kinds of things all the time.”

Loethen said he doesn’t bid many public projects as his company is busy enough, and that means he likely won’t need the OSHA 10 training or anything other than to build the shed for Meta.

“You only need it for public jobs,” Loethen added.

Alderman Otto Wankum asked what the city’s obligations would be as a government agency, and whether the city had the option to forego bidding the project again.

“Do we have the option to increase it by $3,000 without going back out for bid?” Wankum asked.

The general consensus was that it was likely not allowable, but aldermen agreed it was a question that city attorney David Bandre should address.

Loethen also asked about the basement in the old school, and whether it would be a problem when he gets to the point - pending contract approval - that he needs to dig footings for the shed.

Mayor Harold Libbert said he knows where the basement is located, and would help Loethen identify it when the time comes.

As for timing allowed to complete the project, that will come down to what Bandre has to say about the training. Instead of requiring the project be completed within a certain number of days, Loethen requested a hard date be used.

He anticipates it will take a couple months to complete once the project begins, but he has to order the building, which will take a while to be manufactured.

At this time, Loethen doesn’t know exactly when he will be able to get started, which means he’s hard-pressed to say when it will be completed.

Aldermen agreed to require the project be done by next spring, but that will be confirmed after speaking with the city attorney.

Finally, Loethen asked if half the payment could be provided once the concrete is in and the building is in place. He said at that time, only labor would remain to finish the project.

Treasurer Mary Plassmeyer said the contract can be changed before it’s presented for approval, pending confirmation by Bandre.

In other business, aldermen agreed to hold a Purple Heart ceremony at 6 p.m. Friday, Aug. 23, at the park, ahead of the Schroeder volleyball tournament, which is slated to begin at 6:30.

Two of the three signs denoting Meta as a Purple Heart City will be erected prior to the ceremony, with one to be used during Friday’s gathering. The Purple Heart signs will be placed at the entrances to town.

Mayor Libbert will read a proclamation at the ceremony.

* Following a tax-rate hearing prior to last week’s regular meeting, aldermen voted to set the levy for fiscal year 2019 at $.4538 per $100 assessed valuation, which is the same rate the city had last year.

Remaining news from this meeting will be presented next week.