Meridian council agrees to proceed with Toll Brothers trunk-line P3 after bids exceed engineer estimate
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Summary
Council accepted Toll Brothers’ bid results for a trunk-line public–private partnership despite bids above the engineer's estimate; staff said Toll Brothers will construct the line and the city will reimburse half the construction cost, with a 5% change-order cap placed on city liability.
The Meridian City Council on Feb. 10 accepted the bid results for a public–private partnership with Toll Brothers to construct a planned trunk line and indicated it will proceed with the agreement despite bids coming in above the city's engineer estimate.
Director MacFay told the council that Tolll Brothers "will construct it, and then we will reimburse them for half of those costs when the costs were planned in our CFP." Staff reported four bids were received; one was deemed non-complete and the bids ranged from $7,300,000 to $15,600,000. The city's engineer estimate had been $6,600,000.
MacFay said the contract includes a 5% cap on change orders and some project management and soft costs that add a couple hundred thousand dollars to the total. "Anything over that 5% cap is the sole responsibility of the contractor, so Toll Brothers," MacFay said, explaining the city's exposure is limited by the agreement's change-order cap.
Council members asked about residual costs and protections if costs escalate. Councilman Schrader said he was philosophically uncomfortable with developers leading infrastructure investment but said he would support the motion as a matter of collective council action. Councilman Taylor said council had vetted the approach during the budget process and supported proceeding.
Councilwoman Little Roberts made the motion to approve the Toll Brothers bid results and proceed with the partnership agreement (dated 12/02/2025); the motion passed by voice vote.
The council did not adopt a separate budget amendment at the meeting; staff said reimbursement authority is consistent with the previously executed agreement and that any amendment or request for additional funds would return to council if Toll Brothers sought compensation beyond contract limits.