The Mankato City Council voted Oct. 27 to award bids for the Kern Bridge relocation and rehabilitation project (CIP 10884) after staff reported the low construction bid and an increase in the estimated total project cost.

Interim Public Works Director Carl Kiel told the council the low construction bid, submitted by Redstone Construction Company, was $8,381,848. Staff estimate the full project cost—including construction, engineering and contingencies—has risen to approximately $10.5 million, up from about $9.4 million when the council authorized bids in July and from roughly $8.2 million in the June 2024 feasibility report.

Kiel said the largest drivers of the increase are additional foundation work revealed by soil borings for work in the Blue Earth River, design changes raising the bridge elevation after regional flooding concerns, and broad construction-cost escalation since the start of the project. He told councilors the three bids were relatively close and showed no obvious bidder omissions.

City staff reported that the Minnesota Department of Transportation identified additional federal funds to cover about 80% of the construction amount because of the bridge’s historic significance and regional role. The remaining local share will rely on a previously awarded state Department of Natural Resources trail grant of about $1.2 million and a combination of local funds, including sales-tax-eligible revenues and Parks Capital reserves. Parker, a city finance staff member, advised that the city would reprogram $580,000 that had earlier been assigned for a splash pad and that the resolution allowing the award would permit staff to unrestrict specified funds as needed. Staff noted a remaining local allocation of approximately $28,142 tied to the project as described in the resolution.

Council members pressed staff on the jump from early estimates, and Kiel said the June 2024 feasibility estimate was the first formal cost estimate; subsequent design work and bidding revealed additional costs. Kiel said staff plan post-award discussions with the low bidder to explore value-engineering opportunities and will return to council if scope changes are proposed.

Councilor McLaughlin moved to approve the resolution awarding the bids; the motion passed on roll call with all voting members present voting yes.

If fully executed as described, the financing package relies heavily on the federal funds identified by MnDOT; staff said sales-tax revenues are an eligible funding source under state law and that Parks Capital would retain a multi-year reserve above its stated target after the reallocation.