Council authorizes $450,763 additional local funds to award Public Avenue safety project bid

City engineering staff presented bid results for the Public Avenue corridor safety improvements, including new curb, gutter, sidewalks, bike lanes, a storm system and intersection realignment; the council authorized an additional $450,763 in local funding and supported accepting the low bid.

Scott Bontrager explained the project history and the current bid results. The corridor is roughly 1,100 feet and lacked pedestrian facilities; the design now calls for a full urban roadway section with curb and gutter, sidewalks, bike lanes, a new storm system and a concrete splitter island at the Falcon/Public intersection. The grant application dates to 2019; the engineer’s estimate for construction was $1,361,174.71 but bids received in February ranged from $1,814,999.99 to $2,455,697.51. The low responsive bidder was Knife River at $1,814,999.99.

Bontrager said the city’s portion of the project is now roughly 36% (about $862,000) with federal funds covering 64% (about $1.5 million); the design and rising scope (notably a full road reconstruction and storm system) over several years contributed to cost growth. He said the city had previously provided a deposit and match and that LHTAC (Local Highway Technical Assistance Council) had added funds during the process.

Staff recommended sending a letter of support to LHTAC for acceptance of Knife River’s bid and authorizing the additional local contribution of $450,763 to make up the shortfall; the council voted to authorize the additional funding and send the letter. The roll-call vote was recorded as: Julia Aye; Bryce Aye; Sandra Aye; Drew Aye; Hailey Aye; Gina Aye.

City administrative staff clarified fiscal exposure if the city withdrew: the city would need to reimburse LHTAC for design expenses spent to date (a figure staff said is a little over $200,000) and would forfeit approximately $1.5 million of federal matching funds. Staff said they had options to absorb the additional cost without delaying other projects by using existing fund balances.

Councilors emphasized safety benefits for a heavily traveled, walkable corridor that serves school and neighborhood pedestrian traffic. The council approved the motion to support bid acceptance and to authorize $450,763 in additional local contribution; the award will go to ITD’s board next week for final action.