County OKs $551,021 Mud Lake shop contract, authorizes commissioner to sign when bonds and insurance are provided

Jefferson County commissioners approved awarding the Mud Lake shop construction contract to the apparent low bidder and authorized a commissioner to sign the contract once required performance and payment bonds and insurance certificates are provided.

Staff said the contractor requested a reduction in the requested performance bond from 100% of the contract amount to 85%. County staff and the contractor agreed that state rules allow such a bond practice and the county would retain a 10% retainage in the contract. Adding the anticipated bond cost raised the contract amount to $551,021.66. Staff recommended approving the award with delegated signing authority so the contract could be executed promptly once documentation arrives.

Commissioners discussed site visits, engineering for electrical work and the difficulty of building costs in current market conditions. Staff said some bids previously received for the building were as high as $800,000; the approved contract is significantly below those earlier high bids. The building described in the bid package is approximately 120 feet long by 80 feet wide with concrete apron and finished concrete floor; bathrooms and water were noted as future work not included in the current contract.

The board moved, seconded and approved the motion and delegated signing authority to Commissioner Hancock to execute the contract when the contractor provides bonding and insurance documentation.

Why it matters: the contract funds construction of a county shop facility at Mud Lake (Circular Butte). Delegating signing authority allows staff and the contractor to finalize the agreement without waiting for another meeting once required documentation is submitted.