Shore Drive Phase 3 bids come in far above estimates; council discusses funding and timing

Project staff told the City Council on Jan. 14 that bids for Shore Drive Phase 3 returned significantly above the engineer’s estimate, leaving a funding shortfall of roughly $26 million for the public-works and utilities portions of the project.

Why it matters: Shore Drive Phase 3 is a long-standing safety and roadway-improvement project intended to reduce crash risk, raise roadway grade in flood-prone areas and add pedestrian and bicycle facilities along a one-mile-plus corridor. Significant cost increases or delay affect safety, flood-protection sequencing and long-running CIP priorities.

Public-works staff said the engineer’s estimate for the total package (public works, utilities and HRSD components) was $48.2 million. Two bids were received: a low bid of $68.7 million and a second bid of $93.4 million. Staff attributed the delta to market changes (rising prices for piping and ductile iron), landscaping and high costs for signals and lighting (staff said the electrical subcontractor was not local and price premiums for night work and maintaining traffic drove a large portion of the difference). Staff also said the site’s high traffic volumes and limited detour options require more costly maintenance-of-traffic plans; the contractor priced extensive night work and associated logistics.

Staff presented four alternatives: (1) cancel the project and reallocate funds; (2) defer until market conditions or funding change; (3) modify scope and rebid to reduce cost; or (4) fund the deficit now from other approved but later roadway projects. Staff identified candidate donor projects with local funds that are not expected to go to construction before 2027 and could be reallocated: Indian River Road 7A (about $36.8M available), Centerville Turnpike Phase 3 (~$41.9M), Rosemont Road Phase 5 (~$14.3M) and Cleveland Street Phase 4 (~$13.4M). Staff noted the bid prices were guaranteed only through Feb. 10 and that a funding ordinance would be needed quickly if council chose to accept the bid.

Council members stressed the project’s safety urgency and the long history of requests for Shore Drive improvements. Several members argued rebidding or redesign risked losing bidders and further delay; others asked whether donor projects could be partially reallocated without jeopardizing critical needs elsewhere. The mayor and several council members recommended using Centerville Turnpike Phase 3 funds as a donor source to close the $26 million gap so Shore Drive Phase 3 could proceed; staff said they would prepare an ordinance and noted remaining funding on donor projects would likely need attention in the CIP process.

Staff will return with any ordinance language and will work with council on prioritization in the CIP process; if council decides to fund the shortfall, an ordinance would need to be adopted promptly because the lowest bid price and the 90-day bid guarantee expire in early February.