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Council awards $2.0 million roundabout construction contract; city share about $336,700
Summary
The council authorized awarding a construction contract for the Fir Avenue/Cash 1/Freiburg Avenue roundabout project (PI 5362) to Joe Riley Construction, approved cost participation, and identified funding sources including an LRIP grant.
The Fergus Falls City Council approved a resolution consenting to the city's cost participation and awarding the construction contract for PI 5362 — the Fir Avenue/Cash 1/Freiburg Avenue roundabout improvement project — to Joe Riley Construction, the apparent low bidder.
City engineer Brian Navarro told the council that Otter Tail County opened six bids and identified Joe Riley Construction as the low responsive bidder with a bid just over $2,000,000, above the engineer’s estimate of $1,780,000. The project received a Local Road Improvement Program (LRIP) award of $790,000; the LRIP funds apply to eligible construction costs only. Navarro presented a funding breakdown that applied LRIP dollars to eligible city and county costs and described planned city funding sources for utility replacement costs tied to the project.
Navarro said the estimated total project cost with the LRIP award is approximately $1,923,682 and reported an estimated city share around $336,700, funded from city street/state aid accounts and enterprise funds (water and sanitary sewer) for utility replacement. He explained that the sewer and water mains beneath the roundabout are vintage systems and replacement was timely coincident with the construction.
Council asked for clarification of the city’s net taxpayer cost and Navarro confirmed the $336,700 estimate including engineering and construction costs allocated to the city. The council then voted by roll call to approve the resolution authorizing the city’s cost participation and awarding the contract to Joe Riley Construction.
Ending: Staff said construction could begin in spring and be substantially complete by fall if the contract proceeds; the city will charge eligible costs to LRIP‑eligible line items and use enterprise funds for utility work.
