Prineville council approves intent to award Madras Highway sewer and water extension to McKernan Enterprises

The Prineville City Council on Sept. 17 approved an intent-to-award for the 2024 Madras Highway Sewer and Water Extension project to McKernan Enterprises for $277,252.

City public works staff member Casey Keiser told council the project is the first of four financed by a $2,000,000 grant secured to support multifamily housing. Keiser said the extension will run water and sewer lines along Madras Highway to serve a currently approved multifamily development and other future projects in the area. "This is an exciting project for us," Keiser said.

Keiser said the city received six responsive bids and that McKernan Enterprises submitted the apparent low bid. Council members asked about the contractor's prior work for the city; Keiser said McKernan has completed other city projects and typically bids aggressively on work that fits their crews. Councilor Uphman and other members expressed no objections.

An unidentified council member moved to approve the intent-to-award; the motion was seconded and the council voted unanimously in favor, with recorded ayes from Councilor Uphman, Shane, Scott, Janet, Marv and the presiding official.

The project manager said staff will move forward with standard bidding and award processes for future related projects and that the initial work will help unlock service for a roughly 320-unit apartment complex that the pipes would pass by. Keiser said the $2 million grant will be stretched across four projects to support multifamily housing buildout in the corridor.

Next steps include executing the intent-to-award paperwork, finalizing contract documents with McKernan Enterprises and coordinating construction timing with other nearby utility projects. Council did not specify a construction start date at the meeting.