Council reviews low bids for police station, directs staff to prepare 30-year bond plan with cash offsets

The New Prague City Council on Thursday reviewed results from a competitive bid process for a planned police station, discussed an updated $10.8 million project budget and contingency changes, and gave staff direction to prepare a pre-sale report that reflects a 30-year bond paired with roughly $380,000–$390,000 in cash offsets. No construction contract was awarded at the special meeting.

John McNamera, introduced to the council as the project representative from W, said the city received 11 bids and that the low bid was just under $8 million while the high bid exceeded $9.6 million. "We did get 11 bids on there and the bid tabulation has them in order of low to high," McNamera said, noting the bids were tightly clustered and that the team included an optional alternate for updated automated controls at the fire station.

Why it matters: council members said the lower-than-expected low bid changes how the project may be funded and whether optional items should be awarded now or later. McNamera recommended a revised total project budget of about $10.8 million, which assumes awarding the controls alternate and carries a roughly $600,000 construction contingency and an adjusted soft-cost and furniture allowance.

During discussion a council member relayed a concern from a master electrician who reviewed the plans and called the proposed electrical panel "overkill," saying a simpler approach might save a substantial portion of electrical costs. The council member quoted the electrician: "Why do they have to have a lighting panel? It's so much more expensive than just using switches." McNamera responded that he could not verify that electrician's cost estimate because that person was not the low-bid electrical subcontractor and that staff would follow up.

On contingencies and budget allocations, McNamera explained contingencies had been adjusted across design iterations and that the larger construction contingency reflected a conservative posture to avoid later surprise requests to council. He also explained that an alternate to replace the fire station mechanical controls would allow integration with the police building automation but is optional and could be awarded later; the council asked staff to check whether the rural fire district would share some of that cost.

Becky, who led the financing discussion, presented four bond-term scenarios (two 25-year and two 30-year options) and cost assumptions including the 105% statutory debt-service coverage and a first interest payment expected in February 2026. She also reviewed potential cash sources: about $240,000 of EDA "clawback" funds staff expects to be eligible for (pending written state confirmation) and roughly $201,000 in an audited ambulance fund (staff suggested using about $150,000 of that). "We are 95% sure that 240 in that clawback would be available cash as well," Becky said.

Council members debated the trade-offs: 25-year debt shortens the repayment and reduces total interest but raises earlier annual levies, while 30-year debt spreads payments and may better match future taxpayers who benefit from the facility. Staff noted the per-household difference was modest — about $20 a year on a $250,000 house under the scenarios shown.

After discussion the council coalesced around taking the low bidder when the council moves to award the contract and directed staff to prepare a pre-sale report reflecting the 30-year option (referred to in materials as "option four") with approximately $380,000 of cash applied to project costs and an additional roughly $390,000 of identified cash used to reduce the bond amount. Becky will return with updated numbers in the pre-sale report so the council can consider formal action at the next regular meeting. The council did not vote to award the contract tonight.

The meeting ended with routine motions to adjourn.