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Council awards $2.43 million utility and alley improvement contract to low bidder
Summary
After receiving and tabulating bids, the council awarded the 2026 Utility Street & Alley Improvement Project to the low bidder GM Contracting for $2,427,101.02; city counsel reminded the council that state law requires awarding to the lowest responsible bidder unless disqualifying factors are found.
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The City Council voted to award the 2026 Utility Street and Alley Improvement Project to GM Contracting after staff presented bid results and recommended the low, responsive bid.
Staff said bids opened March 18 and reported three bids: GM Contracting at $2,427,101.02 (low), MR Paving and Excavating at $2,447,514.03, and Crow River Construction at $3,898,739.65. City staff noted unit pricing—particularly on underground utility work—was lower than the engineer’s estimate and recommended awarding to the low, responsive bidder. Staff also reported an estimated $1.2 million bonding need in 2026 and a total gross bonding need of $2.2 million for remaining projects in the 2026 CIP.
A councilor asked whether state statute requires awarding to the lowest bidder. City legal counsel said the city must award to the lowest responsible bidder unless the council finds the low bid materially nonconforming to specifications or the bidder not responsible based on the bid documents; staff had not identified such concerns.
A motion to award the contract to GM Contracting for the tabulated low bid was seconded and approved by voice vote.

