Village approves $496,426 Callahan paving contract and allocates fund balance to cover shortfall

The Village of Rhinebeck Board of Trustees voted to accept a state bid from Callahan Industries to mill and repave eight village streets at a contract price of $496,426.25 and to use village fund balance to cover the local share.

The work in the approved contract covers Garden Street, North Parsonage, Platt Avenue, Chestnut, Mulberry Street, Beach Street, West Chestnut, Somers and Crowell Avenue. The scope includes necessary keyway cutting for smooth transitions, milling and removal of approximately 2 inches of existing asphalt, and installation of a roughly 2-inch Type 6 top course, per the bid presented to the board.

The board heard detailed funding figures from Treasurer Karen, who gave what she described as a “rough, conservative” close-out estimate of the village general fund. Karen said the village’s estimated unassigned fund balance stood at about $1,148,731 and that the village currently holds roughly $260,000 in village-controlled funds (separate from routine repair budgets). She told trustees that, after accounting for existing commitments, the paving contract would require drawing roughly $235,000 from fund balance to complete the project as proposed.

Mayor (presiding) put the Callahan contract on the floor, and Kyle (highway staff) summarized the work and confirmed the streets included. Kyle and other trustees discussed the village’s 10-year road schedule and whether this large single contract would “catch us up” on backlog. Kyle and other board members described mobilization cost savings from completing multiple streets in a single contract and said doing a larger chunk at once reduced unit mobilization costs.

Trustees debated alternatives before the vote: options included downsizing the list of streets to fit a smaller allotment of fund balance, shifting to a multi‑year “big bang” strategy for future years to reduce mobilization costs, and preserving a conservative fund balance to meet the village policy target of 15–25 percent of the next year’s budget. Several trustees asked for a short 10‑year forecast of street work and a clearer capital transfer plan for the coming year.

After discussion, a trustee moved to approve the state bid from Callahan Industries for $496,426.25 and to allocate the necessary amount from fund balance (as presented by staff) to complete the contract. The motion carried on the voice vote recorded at the meeting.

Trustees said they expect Callahan to schedule the work around fall events, and Kyle confirmed the contractor can adjust timing to avoid conflicts. Trustees also directed staff to return with more detailed multi‑year street‑planning information and clarified that any narrowing of streets or similar redesign would require additional work and cost beyond the current bid.

The board’s approval instructs staff to finalize the contract with Callahan and to transfer the agreed fund-balance amount into the paving line for year-end closing.