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Council approves South Summit Street outfall drainage repair with contingency and transfer
Summary
The council awarded a $299,883.40 contract for the South Summit Street outfall drainage repair, approved a 20% contingency and authorized a transfer from the general fund for the capital project.
Fairhope City Council voted to award a contract for the South Summit Street Outfall Drainage Repair and Improvement Project and approved a contingency and fund transfer to cover project costs.
The resolution awarded the bid to a local asphalt contractor with a bid proposal of $299,883.40, and the council approved a 20% contingency of $59,009.76. The mayor read the total not-to-exceed cost and the treasurer was authorized to transfer $318,210.08 from the general fund to the capital projects fund to cover the project.
During the discussion a council member said large contingencies create concern because they are often used; other members responded that a contingency is preferable to returning for a change order. The motion and associated budget transfer were approved on a voice vote with no roll-call tally recorded.
The action instructs staff to execute the contract with the awarded company and to manage the contingency and fund transfer as authorized.
