The Redmond City Council authorized a guaranteed maximum price (GMP) amendment June 24 with Knife River Corporation to construct phase 2 of the East Side Arterial project — a roundabout on OR‑126 linking Ninth Street to a new Airport Way extension — in an amount not to exceed $4,878,520.63.

Jake Sherman, a principal engineer with the city, presented the project background and scope. He summarized work completed on phase 1 (Airport Way/Calamity Way extension), reported utility installation progress (about 45% of water and 60% of sewer for the extension) and said much of the roundabout construction will be done off‑site with a planned 48‑hour highway closure in mid‑September for tie‑ins.

Sherman said the phase 2 scope includes the single‑lane roundabout on OR‑126, multi‑use paths and sidewalks, bike lanes and storm ponds. He described a construction schedule that targets completion of the roundabout and Airport Way extension later in the year, ahead of the paving window, with remaining design and later phases (Veterans Way roundabout, Ninth Street modernization) to follow in 2025‑26.

Councilor (unnamed) moved to authorize the GMP amendment and the motion passed by voice vote; council recorded an aye vote and the city manager was authorized to sign the amendment. The project budget shown to council totals $38.3 million for the multi‑phase project as packaged; the GMP 2 contract amount with Knife River is included within that total.

Councilors asked about right‑of‑way and ODOT coordination; city staff said the ODOT right‑of‑way will be used and that a separate intergovernmental agreement (IGA) addressing standards and maintenance is in process. Staff noted the Federal Aviation Administration had reviewed parts of the project but that FAA review was focused on future phases tied to the airport.