The Saint Charles City Council voted to reject bids for the Eastern Trunk Main Phase 2B after staff reported the lowest adjusted bid totaled about $11,500,000—well above the $7,000,000 budget—and the city lacks the funds to proceed.

Public works staff told council the trunk main is full and that the sewer line’s capacity is questionable going forward. "The trunk main is full," the presenter said, adding that construction bids reflected elevated risk: the sanitary sewer runs about 30 feet deep and crosses two major roadways and two railroads, increasing contractors’ risk calculations and prices.

Staff said three bids were received on April 11. Public works and the design engineer worked with the apparent low bidder to reduce the cost to about $11.5 million, but the city still faced a funding gap. Council discussed options previously considered, including an interfund loan from the electric fund and using reserve monies, but staff and some council members said those approaches were stopgap measures and not sustainable for a project that could require permanent revenue adjustments.

After discussion, the council approved a motion to reject the bids. The motion was made by Steve and seconded by Brian; the roll call vote was recorded as yes on the motion to reject. Staff said the recommended next step is to complete the city’s utility rate study and incorporate the trunk main needs into that work so the council can evaluate long‑term financing options, such as bonding, rate adjustments, or a comprehensive funding package.

Why it matters: staff and several council members said the trunk main’s capacity affects the East Side’s ability to permit and support planned or potential development, including Fox Haven Square and Charlestown Mall redevelopment. Staff highlighted that if the trunk main is not expanded or funded, it could limit issuance of permits or occupancy for new developments until capacity is addressed.

Council and staff discussed timing: completion of the rate study was expected in the coming months, and staff recommended integrating the trunk main project into that study to determine appropriate debt coverage and potential rate adjustments before pursuing bond financing. Staff estimated that finishing the rate study could delay action on the trunk main approximately one year but would provide a comprehensive financing plan.

The council’s rejection allows staff to return with financing options informed by the rate study rather than proceed with a partial scope or a short‑term interfund loan.