City Council Takes Out Of Town Bid Despite 96 Dollar Difference

The O'Neill City Council met at a special meeting on Wednesday, Nov. 13 to discuss the purchase and bidding process for a new pickup for the O'Neill Water Department. Andrew and Fred Krotter of Wm Krotter Company were present to discuss the council's decision to purchase the Ford pickup from Courtesy Ford of Norfolk.

Tom Chvala, representing Wm Krotter Co., presented problems to the council they felt needed to be clarified. First was the meeting process concerning moving the bid and opening up the roster, and second was the audio from the meeting minutes, which did not match the audio recording of the meeting regarding the number of bids. The minutes stated that four bids were opened when only three bids were confirmed on the audio of the meeting when the Water Superintendent, Jason Baker, returned from looking at the bids and said that Mr. Baker had four bids with him. 

Before recommending going with the Ford bid, which was 96 dollars under the WM Krotter Co. bid, Baker discussed the problems with the RAM Tradesmen the department purchased by the city several years ago. Baker also informed the council that Courtesy Ford could do mobile servicing provided by the dealer.

Baker stated that the RAM Tradesman previously purchased had fuel pump problems and a transmission issue. Andrew Krotter told the council that those issues were primarily covered under warranty and had little cost to the city. With the ongoing problem with fuel pumps, after going through the third one, a sample of the gas used by the city was sent to be tested. It was found to have more than 10% ethanol, which by manufacture standards is advised against for the probability of fuel pump problems. "We as a company covered the problem and did not have to, despite the city employees putting the wrong fuel in the vehicle.”

Mr. Chvala also mentioned problems with the specs in the bid and the Ford pickup that was delivered. The Ford pickup was delivered with a 5.5-foot bed, while the specifications were set at 6.5 feet. Andrew Krotter spoke to the matter, saying that a size difference in bed length can affect the bid by $500 to $800. It was also alleged that Baker told Courtesy Ford he was buying a Ford, and that specification was not let out in the bidding process as well. 

In discussing the potential mobile servicing done by Courtesy Ford that was brought up, Andrew Krotter told the council that most servicing and warranty work by industry standards has to be done at a brick-and-mortar location of a dealer and can rarely, if ever, be done off-site by the manufacturer's statutes.

Chvala also reminded the council that WM. Krotter, the dealer in O'Neill, has been doing business in O'Neill since 1947 and has paid $103,463.34 in sales tax over the last two years. The business, its owners and its employees all pay real estate and city sales tax, supporting the city. It was very disappointing to be overlooked over $96.

"We would like to see you not approve the previous meeting minutes as is because of the deficiencies. We want the council to rescind the bid award to Courtesy Ford and reopen the bidding process to the bidder who meets the qualifications of the bid. Furthermore, a retraction in the Holt County Independent stating the bidding process's problems. We want a fair bidding process from the council," said Chvala.

The council then asked Andrew and Fred Krotter questions. Councilwoman Kayla Burdick expressed her concern over how the bidding process was handled.

Bickering back and forth over the specs being correct, and if not, the process should be redone so both parties are on an equal footing. Mr. Chvala reiterated that they are only looking for a fair chance. In response to questions about the bid, the council discussed looking at the bids themselves and having a separate meeting to go over them, as they do for large water and sewer projects.

Paul Asche's councilmen stated that they tried to give the RAM a chance, but because of the motor problems, maybe that's why he is more partial to a Ford. Andrew Krotter replied that if they didn't put the wrong fuel in, it wouldn't have been a problem. Councilwoman Susie Kramer stated that a problem with all the repairs is inconvenient to the department, as the department needs a vehicle. In response, Fred Krotter noted that they had given the city a courtesy vehicle to use every time at no expense.

Some members of the council tried to negate the purchase, bringing up minor repair items and problems with the city's RAM trucks. Andrew spoke to the council and stated that, in response to the Ram Tradesman bought by the city several years ago, the city has made repairs in the amount of $1,575.51 to that pickup, which is very reasonable for a vehicle of that age.

The council took no action on the matter keeping the Ford pickup from Courtesy Ford.

The city council taking a bid with an out of town business over a local dealer is a bad decision by all accounts. This decision shows a disconnect of the governing body from those that keep the city running. Not shopping local is a crime most of us have committed. But when a business gets tossed aside over $96 by a governing body it pays city sales taxes to and its employees pay taxes to, it is a poor reflection of leadership and dedication to the city they were elected to govern and look out for. Not only has the council let us down on this issue but in the last few months they have decided to not support the O'Neill Chamber of Commerce by not becoming a member; they have also dropped the support of the fireworks display for the next year with the O'Neill Men's Club having to make up $2,500.

The City Council does do a good job being responsible in keeping taxes reasonable but looking out for the economic engine of local businesses and supporting them should also be a priority in keeping the lights on and the doors open.

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