North Little Rock aldermen approved a maximum loan amount of $144,600 Monday to construct concrete pads for recreational vehicle parking and to add pavement at the city-owned Downtown Riverside RV Park east of the Interstate 30 bridge.
The loan amount matches a low bid submitted by a Sherwood company, but the bid is being reviewed because it was 33 percent, or $67,840, lower than the next lowest of five other bids submitted July 7, city officials said.
Cinergi submitted the bid of $144,600. The next lowest bid was $202,560 and the highest was $339,684 to add concrete pads at all 63 RV parking sites at the park, 50 Riverfront Drive.
Chief City Engineer Chris Wilbourn said prior to Monday's City Council meeting that there were "concerns" about the discrepancy in the bids received and that the bids are "under review." No contract had been awarded for the project.
The legislation approved 7-0 by the City Council was for the amount of the loan only. Alderman Beth White was absent.
"Even if we rebid the project, that will be the amount of the loan," Wilbourn said.
City Attorney Jason Carter said after the meeting that the city routinely will question a low bid if it is at least 20 percent less than the next lowest bid received.
"If a bid is very low, it's incumbent upon the project owner to ask them to verify that they didn't make a mistake," Carter said. "As a project owner, you can't take advantage of someone who may have made a mistake."
The North Little Rock Advertising and Promotion Commission recommended the loan amount based on the low bid received. The commission will be responsible for the repayment of the loan, Mayor Joe Smith said. The city will arrange for the loan through Centennial Bank, according to the legislation.
The RV park had 1,725 reservations from April through June for 3,808 camping nights, an average of more than two nights per RV stay, according to North Little Rock Convention and Bureau statistics.
"This type of improvement will draw more vehicles," City Alderman Bruce Foutch said in support of the loan for the project. "Those people will spend money in town."
Metro on 07/26/2016