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Council told to award K1 hatch contract; change order sought for Stacks Gully stabilization

3289412 · May 13, 2025
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Summary

Public works staff reported five qualifying bids for the K1 hatch project and recommended awarding a contract despite being over budget; staff also sought council approval of a change order for a mechanically stabilized earth wall at Stacks Gully that increases total project cost above the city's $100,000 cap.

Public Works staff told the Fairhope City Council work session that five qualifying bidders submitted prices for the K1 hatch project, with bids ranging from about $6.0 million to $7.7 million, and recommended awarding the contract even though the low bid exceeded the budgeted amount.

Project staff said most of the capital for the K1 hatch project will not be spent until the next fiscal year and that the city has $3.5 million in federal Economic Development Administration (EDA) grant support for the project. Director Richard (last name not provided) said, if awarded, the contract package will be executed and sent to the federal EDA for approval and that the city must be under contract with a contractor by July 6, 2025, to comply with the grant timeline.

Separately, staff discussed an MSC (mechanically stabilized earth) wall project at Stacks Gully on the North Bank where the city entered a partnership with Mason JC Condominium Association to extend an existing wall to the terminus at South Mobile Street. The original council memorandum capped the city's participation at $100,000; bids opened at approximately $189,000 and after added quantities brought the project estimate to roughly $230,000. Staff said Mason JC will bear most of the overrun and that the city must approve a change order to proceed and close out the project.

Staff asked for council consideration to award the K1 contract and to approve the Stacks Gully change order; no final award or change-order vote was recorded during the work session transcript and staff said final contract execution requires EDA review and other administrative steps.