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Council awards Hot Springs Road repair contract to Great Basin Engineering despite $50,000 overrun
Summary
Council awarded the Hot Springs Road repair project (EL2025-5373) to Great Basin Engineering for $399,602.89, about $50,000 over the budget; staff cited high costs for asphalt, demolition, traffic control and Union Pacific railroad flagging as drivers of the overage.
Elko City Council voted to award the Hot Springs Road repair project (EL2025-5373) to Great Basin Engineering for the low responsive bid of $399,602.89, a figure approximately $50,000 over the project budget.
Paul (staff engineer) told the council that the engineer's estimate did not capture some known costs and that the finance department believes the capital construction fund can absorb the overage. Council and staff highlighted four high-cost line items that drive the award price: asphalt (about $110,000), demolition (about $52,000), traffic control (about $57,000), and Union Pacific Railroad flagging (about $76,000). Councilmember comments emphasized that most of those items were unlikely to come down on rebid.
A council motion to award the bid to Great Basin Engineering passed by voice vote. Council members said they preferred awarding the contract now rather than delaying a needed repair given the cost drivers and the engineer's recommendation.
Staff noted that the bid was the lowest responsive of two received and that one bidder was local while the other was from out of the region; differences in mobilization and travel costs contributed to the disparity.
The council's action authorizes staff to finalize contract documents for the project; the city will track the budget impact and any required change orders during construction.
