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Thursday's Internet Edition, December 04, 2008.
County to revamp fuel bids,
discuss courthouse project
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COUNTY CLERK DUTIES - Hamilton High School seniors visited the Hamilton County Courthouse in observance of National County Government Week. They attended Commissioners’ Court and then divided into groups to visit the different offices to learn about their duties and what is done in each office. County Clerk, Debbie Rudolph is shown here explaining her duties and the function of her office. The tour was coordinated by Texas AgriLife Extension Service.
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In their regular meeting that stretched past noon on Monday, Hamilton County Commissioners heard a lengthy explanation regarding a fuel bid from representatives of Bailey’s Fuel. They also reviewed with the architect for the project options for the scope of work to be done during the first phase of the Hamilton County Courthouse restoration.
Commissioners Jim Boatwright, Mike Lewis, Jon Bonner and Dickie Clary were present for the meeting presided over by Hamilton County Judge Randy Mills.
The Hamilton High School senior class was present to observe the meeting and the court welcomed them in opening remarks.
Mills addressed the group, noting that they will be the final class for several years to be able to use the courthouse as a location for the prom grand march. He said that due to the courthouse restoration project, it will be impossible to hold the annual ceremony there until it is complete. He told the group that the county has been pleased to provide the location for the senior class and the community in years past.
Benny Hromadka spoke to the court on behalf of Bailey’s Fuel. Steve Fouts, owner of Bailey’s Fuel was also at the meeting.
Hromadka introduced himself as the representative who was in charge of soliciting business from entities in the area.
He said, “Our integrity has been harmed and I’d like to solve that.”
Hromadka had copies of numerous documents that were involved in doing business with Hamilton County and he supplied each member of the court, the county auditor and the county attorney with copies of each of them as he spoke.
He said that information provided to him stated, “Bid will be awarded on margin per gallon only.” He also read a line from one of the bid documents that said, “Successful bidder is obligated to obtain petroleum at the best price available.”
Hromadka explained that two or three years ago, fuel could be purchased “just about anywhere and the cost didn’t change very much.”
He said that due to the volatility of the current fuel market, it is impossible to call a fuel supplier today and find out what the price of fuel will be tomorrow.
He went on to explain that when they receive an inquiry about fuel prices, they give the price they paid for the fuel currently in their tanks
Hromadka said that Bailey Fuel was awarded the bid and began delivering fuel to Hamilton County in October. He said he was surprised to get a letter from county auditor Marliessa Clark in March regarding the bid. He said that she requested invoices from specific dates.
He said that he understood that there was a commissioner’s court meeting on Monday, March 24. “Wednesday morning, March 26 we found ourselves in the paper (Hamilton Herald-News).”
He read from the Herald-News March 27 edition.
County Auditor Marliessa Clark told the court that, after looking carefully at the fuel bid from Bailey’s Fuel in Hico, she realized that the bid was not submitted as requested. “They submitted only their cost without a margin,” she said.
“That’s exactly what we were requested to do,” Hromadka said.
The Herald-News story, which Hromadka also distributed to commissioners, went on to say: “We assumed that we were given what we requested. If a bidder does not put the right numbers in the bid, we make the wrong decision.”
“We would not have made the decision we made if the bid was submitted correctly,” Clark concluded.
County Attorney Andy McMullen recommended that Clark demand Bailey’s Fuel to furnish the fuel without a margin as the bid indicated.
Clark said that if they did so, Bailey would not make any money from the transaction.
McMullen said that if Bailey’s Fuel does not want to meet the specifications of the bid they submitted, they can withdraw and Clark can publish to have the fuel re-bid.
McMullen said he would audit the fuel bid with Clark and draft a letter to be sent to the company.
Hromadka said that he received a letter from McMullen that same week that stated, “I must conclude that bid acceptance was based upon incorrect information furnished.”
Hromadka said that following some discussion between McMullen and Fouts, McMullen requested that Fouts relinquish the contract and Fouts agreed.
“Mr. Fouts is not a hard man to do business with,” Hromadka said.
Hromadka pointed out that Bailey’s Fuel provided several services to Hamilton County that were not indicated on the bid specifications, such as changing filters, furnishing delivery tanks and delivering to four locations.
“We supplied you the cost each month and invoices each month to Mrs. Eoff,” Hromadka said.
Mills asked McMullen for his recommendation.
“They have acknowledged they have terminated the contract,” McMullen said. “If they are still taking the position today that they are terminating the contract, the county needs to determine what they need to do for fuel.”
McMullen said that he and Clark will work together to prepare bid documents.
“Let’s try to improve on our bid process and go on,” Bonner said. “We have received good service from our supplier.”
Clary agreed, “A big part of our problem is with the bid documents. We have received excellent service, probably over and beyond what the document specifies.”
Bonner made the motion seconded by Boatwright to accept the termination of the contract with Bailey’s Fuel and re-bid the petroleum contract.
Before leaving the meeting, Hromadka asked, “Can we be paid for March?”
Clark said she has released the check for payment.
Architect Gordon Marchant from Komatsu Architecture was on hand to discuss the scope of work that will be encompassed during phase one of the courthouse renovation.
He said that he has included everything outside of the courthouse in the planned work, including work in the yard, geo-thermal work, mechanical enclosure on the northeast side of the courthouse and elevators. He said those items and other outside projects would take approximately $2.1 million of the $2.5 million grant from the Texas Historical Commission.
Marchant explained that the county would not be penalized in the next round of funding if they don’t use the entire grant amount, however unused grant money cannot be earmarked for Hamilton County’s next phase of work. It is simply returned to the THC for distribution.
Marchant presented several spreadsheets to the commissioners. One of the possibilities was to include partial renovation of the third floor in phase one.
“I want to spend every dollar they give us,” Mills said. “It might make it easier on us (if work is started on the third floor) when we get to the next phase.”
Lewis calculated that if the proposed renovations to the third floor were included in phase one of the renovations, the total project would be $2,894,281. The state’s contribution would be $2,250,000 and the county’s minimum local contribution would be $644,281, which is $85,170 more than the county would have matched if the third floor renovation was not included.
Lewis made the motion seconded by Boatwright to include partial third floor renovation in phase one of the restoration. The motion passed unanimously. The court also granted the necessary easement to THC, passed a resolution supporting the restoration and approved the funding agreement for the restoration.
Commissioners took no action on a request from Tom Tyler to use the courthouse property in efforts to obtain signatures for a “Unit System” petition for election.
County Clerk Debbie Rudolph said she had received the request from Tyler, but wanted the court to make the decision. She said she had contacted the Texas Association of Counties and was advised that county funds should not be used to fund such efforts.
McMullen said, “I think it sets a precedent. I think it would be better not to have the courthouse used for political issues. I recommend that we not grant permission for the reason that this is a political endeavor.
Speaking during public comments, Richard Layne said, “Groups or organizations normally use volunteers to gather signatures. It is not the responsibility of the tax payers or the county commissioners to provide a place to gather the signatures. I think taking no action will allow the commissioners to remain neutral.”
Commissioners recognized Erma Mayben as a Hill Country Community Action Association representative and thanked her for her years of service, which included regular trips to Lampasas.
The court approved payment of bills in the amount of $291,409.56 and approved a service agreement with Bertrand Technology Solutions for web site hosting and technology services.
They also approved bond renewals for several county employees, ratified use of credit card services with Hamer Enterprizes and approved the Hamilton County Watershed Maintenance Plan as it relates to pre-existing operation and maintenance agreement for structural measures. The court gave permission for the Lions Club to use the courthouse property for a hamburger luncheon on May 7.
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