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Council approves $20.63 million award for new Public Works facility, staff outlines $2.1M funding gap
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Summary
The Aberdeen City Council approved a base bid with alternates to Quest Construction for a new Public Works facility totaling $20,634,500. Staff said bond proceeds leave an approximate $2.1 million shortfall that will be covered by reserves and other internal funds.
The Aberdeen City Council voted to award the construction contract for a new Public Works facility to Quest Construction (Aberdeen) for a base bid plus alternates 1, 2, 4 and 6 totaling $20,634,500.
Stu, Public Works, told the council the city received seven bids and "we're recommending approving the base bid with alternatives 1, 2, 4, and 6 from Quest Construction based here in Aberdeen for the amount of $20,634,500." He said the design and selected alternates will provide adequate space for equipment, personnel and parking that the department currently lacks.
City Manager Dave and Jordan reviewed project financing. Jordan said the city issued roughly $20 million in bonds and, after issuance costs and early project expenses, "that left right around $19,200,000 available in the bond proceeds," creating an approximate funding gap of "roughly $2,100,000." Council discussed using available bond proceeds together with reserve funds (including the Moccasin Creek project fund and CARES reserves) and projected interest earnings to close the gap without delaying other city commitments. Dave emphasized the decision would allow the public works teams to operate under one roof and avoid higher future costs by building the needed space now.
A motion to approve the recommendation passed on a roll call vote. Council members expressed support during discussion; no opposition was recorded.
The council also acknowledged that acquiring an existing MFG building had been explored but was not feasible within budget, reinforcing the rationale for new construction.
Next steps: staff will proceed with contract finalization and project scheduling. Council members and staff said they will continue to provide updates as financing details are finalized.
