City administrator defends mill‑and‑overlay approach after public questions on cost; recent contractor bids came well under estimates, staff says

City Administrator Dustin Scott presented an updated financial analysis of the 2025 mill‑and‑overlay Improvement District (2290) on May 4 and addressed public and commissioner questions about whether city forces or private contractors are the more economical choice.

Scott said the memorandum and financial packet are not intended as a direct comparison with private‑sector bids because contractors’ estimating includes profit margins and different cost structures. He said the special assessments associated with the 2290 project were about $1,500 per parcel in the base estimate and that adding curb ramp replacement would raise that figure to about $2,000 per parcel, according to a staff estimate shared in the packet.

Scott told commissioners Northern Improvement’s recent contractor bids came in roughly 30–40% under engineers’ estimates on other districts, which commissioners cited as evidence that the market is volatile and that using city staff strategically can lower assessments. Commissioners commended the effort to limit assessments while noting the difficulty of comparing different accounting methodologies.

Public commenter David Withy had earlier urged a re‑examination of in‑house work, arguing that the city’s memo showed costs higher than prior estimates and criticizing the use of sales tax for what he described as operating expenses. Scott and other staff responded in the meeting by reiterating the memo’s intended purpose and discussing differences in accounting and market timing.

Next steps: staff will continue work on current contractor‑performed projects and provide further detail in subsequent budget discussions and project closeouts.