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Board reviews bids for 26 downtown utility project after staff flags roughly $120,000 shortfall
Summary
The Board of Public Works opened five bids for the 26 downtown utility project and staff reported the lowest bid appears to be about $120,000 over budget; members asked for a cost breakdown by storm, water, sewer and street and agreed to bring the item back for further review.
The Board of Public Works opened bids for the 26 downtown utility project and heard that the lowest offer may leave about a $120,000 gap against the budget.
Chair introduced the item and read five bids: Hassan's at $1,624,389.94; Switlik at $1,745,989; Pembro at $1,968,352; Merrill Sand and Gravel at $2,564,644; and A1 Excavating at $3,333,333. A staff member said, "We're looking at about a 120,000 over budget," and asked whether the board wanted staff to review the figures and return with more detail.
Another staff member urged separating costs by system — storm, water, sewer and street — noting the project is funded through a tax increment district (TID). The staff recommendation was to vet the bids by component and then report back to the board.
Why it matters: the size of the gap could affect the scope of work paid from the TID and whether portions of the project must be scaled back or reallocated among stormwater, water, sewer and street accounts.
What’s next: board members agreed to have staff break out the bid components and return with recommendations and a revised funding plan. No award or contract was approved at the meeting.
