BOARD MEETING was called to order at 5:36 p.m. by Acting Board Chairman Eric Paull. Other Board members present were Bob Thurston, and Daniel Hanson. Jim Osman attended via Zoom. Employees present were Colleen Johnson, Tanner Weisgram and Beate Pryor.

INDIVIDUALS TO ADDRESS THE BOARD:

• Brian Werst – Witherspoon, Brajcich, McPhee, PLLC
• David Watkins – J-U-B Engineers
• Mike Camin – J-U-B Engineers
• Brett Converse – J-U-B Engineers

Special Meeting to review and approve District Waste-Water Treatment Plant Improvements Procurement Contract

Summary:

The Kootenai-Ponderay Sewer District’s special meeting on August 28, 2025, reviewed the procurement contract for Wastewater Treatment Plant Improvements, confirming compliance with Idaho Statutes for special goods and services, which permits selecting the highest-scoring bidder based on criteria beyond cost. The contract documents, based on EJCDC standards (P-400, P-520, P-700), include bid forms, agreements, conditions, specifications, and exhibits, with Board feedback required by September 8, 2025, to finalize for advertisement by September 15, 2025. Discussions clarified that bid submissions must be hand-delivered or sent via courier to the District office, with documents accessible via Quest CDN and a physical copy available for review. The Board addressed Davis-Bacon wage compliance and site control, noting that the seller provides installation and startup guidance, while a general contractor performs the physical work, requiring clear responsibility delineation. Decisions on contract assignment and off-ramp provisions were deferred to the design phase, with action items assigned to Brian for agreement revisions, Brett for document handling, and David Watkins for finalizing documents and confirming insurance requirements.

Discussion:

The Board made several procedural decisions to advance the Wastewater Treatment Plant procurement process. They agreed to prioritize hand delivery or reliable courier services (e.g., FedEx) for bid submissions to ensure timely receipt and avoid postal delays, with the District’s office designated as the delivery location. The decision was made to use Quest CDN as the online portal for distributing contract documents, with a physical copy available at the District office for review, but bidders would need to download and print documents themselves. The Board opted against a pre-proposal conference, favoring one-on-one phone calls for bidder inquiries to streamline communication. No formal resolutions were passed during the meeting, but the Board set a target to finalize and seal the procurement documents by September 8, 2025, to meet the advertising deadline of September 15, 2025.

The Board agreed on the need for a clear and streamlined bidding process, particularly on the hand delivery preference to avoid postal delays, as discussed by David Watkins and supported by Board members. Consensus was reached on using Quest CDN and avoiding a pre-proposal conference, with no significant objections noted. Bidders from outside the region can use FedEx. No explicit disagreements arose, but the Board acknowledged the complexity of future decisions, such as whether to assign the procurement contract to a general contractor or retain it, which were deferred to the design phase. Concern raised by Brian Werst on the “confidentiality” clause and how it relates to the Public Records Act. Brian will provide modified worried for that section. Discussion over Class “A” wastewater permit versus Class “C”. There was also discussion over insurance verifications and payment methods and timelines needed for procuring payments from DEQ regarding the loans and grants for the project.

Procurement Contract Overview: David Watkins presented the contract documents, which include bid forms, agreements, general and supplementary conditions, procurement specifications, and exhibits. The goal was to gather Board feedback to finalize the documents for advertisement by September 15, 2025. The contract documents are based on EJCDC standards (e.g., P-400 for bid forms, P-520 for agreements, P-700 for general conditions). Watkins stressed the importance of timely feedback to meet the September 15 advertisement deadline, with DEQ reviewing the engineer sealed documents concurrently.

Contracting Scenarios: The Board discussed whether to use a single construction contract for the building, site improvements, and package treatment plant installation or multiple contracts. David Watkins recommended a single contract to reduce complexity but noted that separate bids might be considered if local contractors struggle to handle the package plant installation. The discussion highlighted the regional availability of contractors from Spokane capable of handling both building construction and package plant installation. Watkins cautioned against fragmenting contracts beyond two, as it could complicate coordination and increase costs.

Bid Delivery and Document Access: The Board addressed bid submission logistics, favoring hand delivery or courier services over mail to ensure timely receipt. They confirmed Quest CDN as the platform for document distribution, with a physical copy available at the District office. The use of Quest CDN was seen as standard practice, with no fee proposed for downloading documents unless large plan sets are involved. The Board addressed concerns about postal delays, particularly for bidders from outside the region, and confirmed that FedEx deliveries would provide a reliable timestamp. David Watkins is checking on the procedures if security is received as a check versus a BID bond.

Bid Evaluation and Scoring: David Watkins outlined the bid evaluation criteria, which includes cost (50% weighting), operational and maintenance (O&M) costs, unique product features, and warranty terms. The Board was encouraged to adjust scoring weights based on priorities, such as emphasizing O&M costs over initial capital costs. Award potentially a Resolution of the Board. Reviewing by a committee and then committee would present to the full Board.

Warranties and Redundancy: The contract includes a one-year standard warranty and a proposed five-year minimum extended warranty for membranes, with bidders required to specify their warranty terms. The Board discussed ensuring equipment reliability and redundancy, particularly for pumps and membranes. The Board discussed ensuring high-quality equipment (e.g., pumps) by referencing reputable manufacturers in the specifications. The extended warranty for membranes allows negotiation during the design phase if the proposed terms are inadequate. 

Owner and Staff Training: David Watkins highlighted the need for clear training requirements, such as hands-on training duration and documentation format, and invited the Board to provide input on preferences, such as extending training periods or specifying delivery methods (e.g., USB drives). The Board considered seasonal training needs, suggesting additional trips during the warranty period to cover different operational conditions. Watkins noted that training requirements could be adjusted based on Board preferences.

Future Decisions and Milestones: Key decisions, such as whether to take an off-ramp during design or assign the contract to a general contractor, were deferred. David Watkins emphasized the need to define these in the construction contract to avoid costly change orders later. The off-ramp provision allows the District to cancel the project during the design phase, paying only for design phase services. The decision on contract assignment will affect how the construction contract is written, with implications for risk allocation and site control.

Brian Werst agreed to receive the agreement in Word format for markup and red-line revisions. He was tasked with submitting these revisions following the discussion.

Brett Converse is responsible for bringing a hard copy of the contract documents to the District office for review and potentially handling the scanning of bid submissions after the bid opening.

David Watkins will finalize and seal the procurement documents by the September 8^th  Board meeting. He will incorporate Board feedback and coordinate with DEQ for review during advertisement. He will also look into the handling of bid securities (bonds or checks) and confirm insurance requirements.

The District will provide confirmation by September 8, 2025, that the document review is complete or submit additional comments to finalize the documents. The Board will also need to form a selection committee to evaluate bids and score them based on the provided criteria.

The meeting concluded at 7:24 PM. Bob moved to adjourn the meeting and Daniel seconded. All in favor. Meeting was adjourned.

Signed: Beate Pryor, District Clerk