Drilling a new well for the Oxford Village water system ended up costing more than double the original bid price, leaving council members seeking a legal opinion as to how much, if any, to pay.
‘It’s not our mistake, it was their mistake,? said village President George Del Vigna. ‘I don’t think we should go beyond what our original contract called for.?
In September 2005, the village approved a $57,885 contract with the Indiana-based company Peerless Midwest to drill a 16-inch production well for the village system.
This new well would have an estimated capacity of about 2,000 gallons per minute, more than both of the village’s other two active wells.
Approximately $200,000 was budgeted this year to install a pump and well house to put the new well into production, according to Manager Joe Young.
Unforeseen weather conditions and adverse ground conditions resulted in Peerless Midwest working an additional four-plus weeks. The company had to bring in different drilling equipment and take extra steps to save the new well by preventing it from caving in.
This resulted in a cost overrun of more than $58,000 which was made known to the village a month afterwards. The company requested the village pay the overrun amount.
‘We are not seeking to make a profit here, we are only hoping to get out of this mess with our shirt on,? wrote Michael J. Williams, of Peerless Midwest, in a June 29 letter to the village.
The lack of communication when problems arose during the project troubled some council members.
‘They did have opportunity to call and make us aware of it and they didn’t,? said Councilperson Teri Stiles. ‘To me, the biggest infraction was they did not consult with us.?
‘When they started running into problems, they didn’t contact the village office,? said Councilman Tom Benner. ‘They didn’t contact the DPW. They didn’t talk to anybody. It was not brought before council at any point.?
Del Vigna was adamant about sticking to the original deal.
‘He made a bid and it was an accepted bid by both parties and I expect him to abide by his original bid,? he said.
Young said the village attorney Bob Bunting advised council to seriously consider paying a dollar amount to settle the matter and avoid any legal issues. An amount of $10,000 or $15,000 was recommended.
‘We did receive the benefit of some additional services because of the situation,? Young noted.
Officials were concerned that however they handle this situation could affect future bids from Peerless Midwest and other companies, especially if things turn negative.
‘If we behave toward this company in a way which they will interpret as abuse then they might for example return a no bid on a subsequent occasion,? said Councilman Dave Bailey.
‘All companies talk and if we need to do any future updating of our water system, we could get a ferocious bid whether it be from Peerless or someone else,? Benner noted.
For that reason, Benner was ‘willing to consider giving them something, but not $15,000, not $10,000,?
‘I would consider maybe $5,000,? he said.
Del Vigna didn’t like the idea of paying even $10,000 or $15,000.
‘I hate the thought of trying to buy somebody off that we might have to use in the future,? he said. ‘That’s not good business.?
Del Vigna wasn’t worried about future bids from Peerless Midwest or other companies because he felt the new well’s abundant capacity meant the village wouldn’t require such services again.
‘How much more water do we need? How many more wells do we need?? he said.
‘Just because you don’t need more wells drilled doesn’t mean you thumb your nose at the guy,? retorted Councilman Chris Bishop.
Bishop noted that despite everything that happened, Peerless Midwest got the job done and drilled the village a new well.
‘They could have walked away from this well and still charged us the $58,000,? he said. ‘We wouldn’t have had the well and we would have spent the original contracted price and we would have been pretty upset.?
Feeling the need for more information and guidance council set the issue aside until opinions are received from the village attorney and engineer.