By Kathy Onorato
Alna Selectmen (from left) Jon Villeneuve, David Abbott, and David Reingardt study proposed changes in the snowplowing contract with Hagar Enterprises Sept. 10. (Kathy Onorato photo)
Seth Hagar, vice president of Hagar Enterprises Inc., told the Alna Board of Selectman Sept. 10, his company is still interested in entering into a snowplowing contract, but some proposed changes in the contract has delayed the signing of the contract.
Currently on the table is a three-year contract, with years two and three dependent on approval at Alna’s annual town meeting in March. The price agreed upon for the first year is $191,371, $197,171 for year two and $202,971 for the final year of the contract.
Hagar is suggesting including language in the contract which would give his company a couple of different options of securing the full three-year deal if the town does not approve years two and three of the contract at the March 2015 town meeting.
“I feel we were awarded a three-year contract,” Hagar said.
One option Hagar suggested is to allow a provision which would allow Hagar Enterprises the opportunity to agree to perform the service at whatever amount voters approve for the snowplowing contract. It also suggests if that option is not taken, the town should go out to bid and give Hagar Enterprises Inc. the right to match the lowest bidder.
Because selectman said they weren’t sure they could obligate a board to go out to bid, they will consult with Maine Municipal Association for advice.
Hagar also suggested changing the payment schedule from Nov. 1 through April 1 to Jan. 1 through June 1, which will allow the town to hold onto their money longer, he said.
“So we’re actually performing without getting paid for several months,” Hagar told selectmen.
With deferring payments, Hagar also suggested the town reconsider its requirement for a bond, which would save the town $2,100.
“It’s understood that some security is in place by means of the bond, however the amount that is required (40 percent of the annual contract) will not cover the cost to perform and thus really is false protection. The savings would be better off realized in the overall contract amount being reduced and deferring the payments …,” Hagar writes in his letter to the board of selectmen.
Hagar told the board his company is very secure in the ability to perform the requirements of the contract.
Hagar said his company could also stack and mix sand for an estimated savings of $2,154 over last year’s cost. He also indicated if his company could get a better price for salt than what Alna paid its vendor, they would offer that price to the town.
If the town of Alna fulfills all three years of the contract with no interruptions, Hagar Enterprises is proposing a reduction of $2,900 during year three of the contract.
The board will meet again with Hagar on Sept. 17 at 7 p.m.