Columbia Falls approves $9.41 million Gateway-to-Glacier safety and mobility contract despite $947,658 budget gap
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Summary
The council authorized the city manager to sign a $9,411,191 construction contract with Nelcon for the Gateway-to-Glacier safety and mobility project; staff said the bid exceeds current project funds by $947,658 and proposed using TIF funds and FY27 budget actions to cover the shortfall while extending completion to Sept. 30, 2027.
The Columbia Falls City Council voted unanimously to authorize the city manager to sign a $9,411,191 construction contract with Nelcon for the Gateway-to-Glacier safety and mobility project.
City staff and project engineers recommended awarding the contract to Nelcon after receiving four bids. The city manager told the council the low bid exceeds the current federal obligated grant and city budget by $552,099 and would consume a $395,560 bidding contingency, producing a near-term funding deficit of $947,658. Staff said those shortfalls would not require a budget amendment tonight but would be addressed in the fiscal year 2027 budget process, with a plan to use TIF district funds that staff said align with project priorities.
To reduce scheduling pressure on contractors and avoid construction impacts during the school year, staff recommended extending substantial completion from March 2027 to Sept. 30, 2027. The manager also noted specific contract language prohibiting construction in front of Gateway Elementary and the high school during the school year.
A councilor moved and a second was recorded to authorize the city manager to sign all contracts and associated documents for the Nelcon award. During roll call the council recorded unanimous approval: Councilor Price, Councilor Robinson, Councilor Syma, Councilor Stahl, Councilor King, Councilor Piper and Mayor Barnhart all voted "Aye." The motion carried.
Staff also said the contractor and project engineers had coordinated bid concerns with the Federal Highway Administration. The city will hold a community open house for properties affected by the project; staff said notices including mailers and door hangers would be distributed and an open house was scheduled for Feb. 18 with contractor and engineers available to answer questions.
Next steps: staff will execute contracts, notify affected property owners, and present funding options for the FY27 budget to cover the $947,658 shortfall.