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Council reduces ARPA grant award for Prairie View water main after lower bids; obligated grant set at $1.57 million
Summary
Council approved an amended ARPA grant agreement that reduces the city's obligated ARPA award for the Prairie View and Tower Road water main project to $1,571,149 after the lowest construction bid came in about $4.4 million versus an earlier estimate of about $6.1 million; state funding reduction around $286,000 was noted.
Interim Finance Officer Renee Baker told council the Prairie View Water Main and Tower Road Water Main Project originally was estimated at about $6.1 million; the final construction bid came in at $4.4 million. As a result, the state reduced the city's ARPA allocation by approximately $286,000. Baker said the city will likely draw a smaller loan amount and reassess the related surcharge if applicable.
Councilmember Bixell moved to approve the amended grant agreement with the South Dakota Conservancy District acting through the South Dakota Board of Water and Natural Resources to reduce the obligated awarded amount to $1,571,149 for grant number 2022G-ARPDash114; the motion was seconded and passed on roll call.
Baker noted the revised grant figure and directed staff to coordinate any loan or surcharge reassessment as the project moves forward.
