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Cairo council approves Watkins & Associates as construction manager for rural workforce housing; council told to front $500K–$750K until state reimbursements
Summary
Council approved a 7% construction management contract with Watkins & Associates for the rural workforce housing initiative and was told the city must front construction payments of roughly $500,000–$750,000 while state reimbursements are processed quarterly.
The Cairo City Council voted to authorize the city manager to execute a construction management contract with Watkins and Associates LLC for the city60s rural workforce housing initiative, the council was told at the meeting.
The interim city manager said Watkins and Associates was the only qualified respondent to the April 18 request for proposals and recommended awarding the contract at a fee of 7% of estimated construction costs of $2,500,000, producing a management fee of $175,000. "As the only qualified respondent and given their familiarity with DCA programs, I recommend the city council authorize the city manager to execute a contract with Watkins and Associates LLC for construction management services at a fee of 7% of the estimated $2,500,000 construction costs," the interim city manager said.
City staff also briefed the council on next steps required by the Department of Community Affairs (DCA). Before signing the award the city must complete a pre-site walk-through with a DCA representative; a pre-construction meeting with the developer, utilities director, and the construction management firm will follow once the DCA visit is scheduled.
Because the DCA grant reimburses expenses quarterly, the interim city manager told the council the city must establish an internal account to front construction payments during the reimbursement lag. The manager proposed temporarily using existing MCT funds and recommended an internal funding level "in the amount of $500,000 to $750,000 to front the construction payments" until quarterly reimbursements begin.
Council members voted in favor of the contract award; the motion carried. The council did not record a roll-call vote in the minutes provided.
The interim city manager said the award documents have been received but the DCA pre-site visit must occur before the city signs the award. Staff committed to schedule the DCA visit in June and return to council with any final documents required for contract execution.
Background: Watkins and Associates was described in the meeting packet as a licensed engineering firm with prior experience managing state-funded projects, including DCA-funded programs and other federal/state funding streams. The city estimated construction costs at $2.5 million and the recommended management fee at 7% of that figure.
