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Watertown council awards $2.87M 5th Avenue reconstruction contract after local bidder protests
Summary
Council approved a $2,870,000 contract to Site Works Inc for the 5th Avenue North Reconstruction despite a J and J Earthworks protest that it was excluded from the plan holders list and lost the project by about $40,000; the city attorney said statutory procurement requirements were met.
The Watertown City Council on Feb. 17 approved a $2,870,000 contract award to Site Works Inc for the 5th Avenue North Reconstruction (Project No. 2503), voting to accept the lowest responsible bid after a local bidder, J and J Earthworks, protested the process.
Kyle Paulson of J and J Earthworks told the council he was the second-low bidder and said the company was not added to the plan holders list despite requesting to be. Paulson said that omission prevented the firm from obtaining a concrete subcontractor quote that would have reduced his bid by $156,000 and made his company the low bidder by roughly $40,000. "We would have been the low bid had the procedure been followed," Paulson said.
Council members asked staff to explain the plan holders list and whether the city or its consultant was responsible for updates. City Engineer Justin Peterson said the plan holders list is an optional service and that contractors typically contact the consultant to be added. Jeff Cooley of Civil Design Inc, the consultant on the project, told the council an addendum and new plan holders list were issued about 24 hours before bid opening, and said updating website content at the last minute can be difficult.
City Attorney Lisa Carico advised the council that the project complied with state procurement law: the plans and specifications were publicly available and the project was advertised as required. "This project complies with state law," Carico said, and she added that the plan holders list is discretionary and not a statutory requirement. She also noted the city has authority to reject bids if they are unsatisfactory, but found no evidence of collusion or technical irregularity in this case.
City Manager Al Sager told the council staff and the consultant had investigated the bid process and advised that there was no procedural error that would require rejecting the bids. Sager said the city did not find a technical irregularity in the tabulation and that rejecting the bids now could disenfranchise the low bidder.
The item drew extended council discussion about local-business impacts and procurement transparency. After weighing the legal advice and staff findings, the council voted to approve the award to Site Works Inc. The acting mayor called the roll and the motion passed.
Project background provided by staff said the design was completed in 2024, reconstruction would occur in 2026 across multiple blocks, and the original project budget was about $3.5 million. Staff recommended Site Works Inc because its $2,870,000 bid was below both the budget and the engineer’s estimate.
Next steps: staff will proceed with contract award and project scheduling for 2026.
