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Spokane Valley awards Pines Road BNSF grade-separation contract to Active Construction
Summary
The Spokane Valley City Council voted 6-1 to award the Pines Road BNSF grade-separation construction contract to Active Construction Inc.; project largely funded by a federal RAISE grant and the Move Ahead Washington state grant.
Deputy Mayor Tim Hatenberg and the Spokane Valley City Council voted Tuesday to award the Pines Road BNSF grade-separation construction contract to Active Construction Inc., approving a city-manager‑authorized contract for the project in the amount announced at the meeting.
The project team said the rebid closed Aug. 8 with seven bidders; two submissions were judged nonresponsive because they omitted required unit bid prices. Engineering staff told the council the low responsive bid from Active Construction came in about 26% below the city’s engineer’s estimate and approximately $1.2 million lower than the June bid opening.
Public Works Director Robert Blagan and Engineering Manager Erica Amston briefed the council on the award. Amston said the work in this contract covers the roadway improvements left from phase 1, including a roundabout, storm drainage, lighting, ITS, trailhead facilities, roadwork and striping. Blagan said the contract is a unit‑price contract and “the contractor has to build the project for what they bid the project,” noting change orders or equitable adjustments could be requested only for changed conditions or other contract‑defined reasons.
City Manager John Homan urged the council to view the low bids as a positive outcome for the community, saying the result reflects an aggressive bidding environment rather than an error in the city’s estimating process.
Councilmember Elizabeth Merkel said she remains concerned that the city’s engineer estimates are often higher than final awards and asked whether escalation clauses could increase costs; staff said unit prices hold bidders to their submitted prices but do not foreclose claims via change order processes when conditions change.
Several members of the public asked about contractor past performance and how unused budgeted funds will be handled. Amston said the city is required to accept the lowest responsive bidder under state law; she said Active Construction was responsive, properly licensed and not barred from contracting. Staff said the project will be primarily funded by a Federal RAISE grant with Move Ahead Washington funds used as match, and that unused federal funds would be deobligated and returned to the grantor agencies if not spent on the project.
The motion to award the contract carried 6 to 1, with Merkel voting against the award.
Project funding, contract administration and final execution of the construction agreement will proceed under the direction of the city manager and public works staff. Staff also said they will return with more detailed funding-source breakdowns to answer councilmember questions about project budget surpluses and deobligation procedures.
