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Hastings outlines utility relocation plan, costs for Southeast (Highway 6) reconstruction; state to cover 80% of eligible work
Summary
City engineers briefed the Hastings Utilities Board on utility relocations tied to the Southeast (Highway 6) reconstruction. Utility work is staged to meet the state’s two‑phase construction schedule; the city estimates about $9.5 million in utility relocation costs, with 80% reimbursable under the state agreement.
City engineering staff updated the Hastings Utilities Board May 8 on utility relocations required by the Southeast (Highway 6) reconstruction project and the schedule for bidding and construction.
Lee (engineering) reviewed the project history and current scope: the state and city previously approved a five‑lane concept in 2016; in 2023 the project was revised to a three‑lane corridor with a roundabout approved by council; in February 2025 the council approved a supplemental agreement updating cost estimates to about $36 million for street work (excluding city utility relocations).
The state’s construction is planned in two phases: a 2026 phase covering J Street north along Elm Avenue and a roundabout at Elm and South Street (plus drainage work, including at Fifth Avenue), followed by a 2027 phase that will reconstruct South Street in its entirety, including the Showboat Boulevard intersection. To meet those schedules the city needs to finish the phase‑1 utility relocations by the end of 2025 and phase‑2 relocations by the end of 2026.
Lee said electric work has begun in the Park Street/Duncan Field area and that a contractor will perform duct installation for underground conversion of overhead lines on South Street; the city received bids for the first duct phase and expects contractor work this summer with city crews performing smaller bores to keep schedules moving. Gas relocations have started along J Street and Fifth Avenue, with a major 8‑inch gas line relocation planned. Water work will be bid in two phases; sewer work will be largely handled through the state street contract because of manhole and alignment changes. Lee said the utility relocation cost estimate the city submitted to the state is about $9.5 million; after contingencies the state would reimburse 80% (about $7.5 million) under its participation rules.
Board members asked about “betterment” charges where the city upgrades a pipe size beyond the state’s reimbursable size; Lee said the state will not pay for upsizing (for example, going from a 10‑inch to a 12‑inch water main) and the city includes those betterment costs in its budget where the upgrade is warranted.
Derek and other staff thanked operations and engineering staff for coordinating multiple departments and preparing for phased relocation work. No formal action was required of the board on the update; staff said they will seek reimbursements as work is invoiced and will coordinate easement acquisitions and contractor schedules.
