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Council awards South 11th and South 12th Street improvement contract after bids come in below estimate

City of Philomath City Council · March 10, 2026
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Summary

The council awarded the South 11th and South 12th Street improvement contract (combined bid cited at ~$630,848) after staff and the city engineer confirmed the low bid and discussed options to split expenditures across fiscal years; contract award passed by motion on March 9.

Council awarded the South 11th and South 12th Street improvement contract at the March 9 meeting after staff reported bids below the engineer’s estimate and the city’s engineer confirmed the apparent low bidder’s commitment.

Staff said the engineer’s estimate had been higher than anticipated and the Public Works Committee recommended splitting the project into two options to provide flexibility. The combined bid figure discussed on the dais was $630,848 for the two pieces; the city engineer (Kevin) said PacificX and other contractors indicated willingness to honor their bids and that the low price was legitimate.

Council discussed funding and whether a budget amendment would be needed to spend the full amount in the current fiscal year. Staff advised funds exist in street SDC/revenue lines but that a budget amendment may be required to reflect the larger expenditure this year; splitting work across fiscal years was presented as an alternative to reduce current‑year pressure.

A motion to award the improvement contract as recommended by staff passed on voice vote. Staff said the contractor must coordinate construction to maintain local business access and that preconstruction meetings will reiterate access plans.

Next steps: staff will execute the contract, schedule preconstruction coordination, and bring any necessary budget amendment to council for approval if work is to be completed this fiscal year.