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Council awards 20 Fifth Street water/sewer contract to Lone Hickory after bids exceed estimate; funding conditional
Summary
The council awarded the 20 Fifth Street water and sewer project to Lone Hickory Cattle Company for an adjusted low bid of $930,200 after a time‑adjustment factor; council noted bids were higher than estimates and authorized the award subject to funding confirmation (REAP grant, private donor increase, or scope reduction).
Council opened bids for the 20 Fifth Street water and sewer improvements and reviewed multiple proposals. The apparent low bid was adjusted using a time‑to‑completion factor; Lone Hickory Cattle Company became the low adjusted bidder at $930,200.
Staff explained the project scope had grown during coordination with the project developer, which increased cost estimates relative to earlier projections. The council noted the project is partially funded by a $150,000 REAP grant; staff also said a private donor had indicated willingness to increase support if needed. If additional funds are not available, staff said the city could reduce the project scope (shorten the waterline run) and still meet the developer’s immediate needs.
Council approved awarding the contract to Lone Hickory contingent on receipt of required bonds, power of attorney and funding confirmation. Staff said the contractor has a fast timeframe and previous local experience, and that the project is scheduled to begin as soon as procurement and funding conditions are finalized with a goal to complete the REAP‑funded elements by the grant deadline in the fall.
No bond documents were recorded at the meeting; council authorized the mayor to execute the public construction contract once the city attorney and staff confirm the paperwork.
