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International Falls council awards Stenberg addition and Ninth Street reconstruction, shifts funds to cover overrun
Summary
City council unanimously approved awards for the Stenberg addition and library/city-hall parking lot and for Ninth Street reconstruction and associated lead-service-line work, and agreed to shift budgeted sales-tax dollars between projects to cover a higher-than-estimated Stenberg bid.
The International Falls City Council on Monday unanimously approved awarding two construction contracts and agreed to shift previously budgeted sales-tax dollars to cover a cost overrun on one project.
City Engineer Jason Fisher told the council the low bid for the Stenberg addition and the library and city-hall parking lot came in well above the engineer’s estimate: “We did, have a bid opening today for the, Stenberg addition and the library and city hall parking lot. We only had 1 bidder, and he was over the engineer's estimate. The the bid was for $11,340,098 and 75¢,” Fisher said. He recommended the council award the work and cover the shortfall using savings from another project.
The council discussed using savings from a separate public-works contract to offset the Stenberg overage. Fisher said the Ninth Street reconstruction — a project that includes road work, a bike trail and replacement of some lead service lines — came in significantly under budget, and the city can apply some of the sales-tax dollars budgeted for that job to the Stenberg project.
“The Ninth Street project ... the low bidder was 6,993,368.45,” Fisher said, adding that the city had received a $1,500,000 state grant for the bike-trail portion and that the Ninth Street bid was below the engineer’s introduced estimate of $8,926,380.
Councilor Buller moved to award the Stenberg contract; Councilor Holden seconded. The council voted unanimously to approve the award. Later, after discussion of Ninth Street and its bundled lead-service-line work, Councilor Buller moved to proceed with Ninth Street; Councilor Wagner seconded, and that motion also carried unanimously.
The council recorded no amendments to either award at the meeting. Fisher and council members described the financing as a reallocation of previously budgeted sales-tax dollars between capital projects rather than new borrowing; they said total spending across the two projects will be roughly in line with earlier city estimates after the shift.
The awards came during a special meeting the council opened at 5:31 p.m. The city did not take further action on related capital spending at this session.
Details: the Stenberg parking-lot and addition low bid was $11,340,098.75; the Ninth Street low bid was $6,993,368.45; Ninth Street included lead-service-line replacements and a $1,500,000 state grant for the bike-trail portion.
The council’s vote concluded the agenda items; staff said they will proceed with contract execution and scheduling for summer construction.
