San Luis council approves $2.35 million budget transfer to close Cesar Chavez Boulevard bid shortfall

Council approved a budget transfer of $2,354,531.80 to cover a shortfall on the long-running Cesar Chavez Boulevard widening project, enabling staff to present the award to the Arizona Department of Transportation board and start contractor mobilization in the first quarter of 2026.

Acting City Manager Jenny Torres told the council the overall program cost is $61,200,000, with design funding previously secured from state and federal sources and a required local match. The lowest construction bid came in at about $57,000,000; when additional allocated costs such as post-design work and contingency were included, the city faced a near $2.3 million gap. Torres said the city located the needed match in impact fees and requested the transfer so ADOT could proceed with award.

"We were able to get an allocation of $4,000,000 from the state and the federal government to be able to design the project... The total amount program, as I mentioned, is 61,200,000.0," Torres said during the presentation. She told council that if ADOT awards the contract this Friday, construction will take roughly two years and staff will coordinate communications and construction meetings to keep the public informed.

Council members voiced concern about traffic impacts during construction and thanked staff for locating the funds to prevent a delay. One member noted the city has already invested nearly $10 million in the project over the past 12 years and emphasized the need for careful public notice as construction begins.

After debate about timing and communication, Councilmember (motion) moved and the council approved the transfer by voice vote. The transfer will be presented to the ADOT board for final contract award.