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Perry awards $1.372 million contract for water treatment improvements
Summary
The council approved a $1,372,000 low bid from Downey Contracting LLC for CDBG-funded water treatment plant upgrades. Staff said bids ran higher than earlier estimates because of market pressures, but current funding (CDBG plus local funds) keeps the project viable; a follow-up resolution will appear at the next meeting.
The Perry City Council voted to award the CDBG 25 water treatment plant improvements contract to Downey Contracting LLC for $1,372,000. Engineers and staff told council that while the bids were higher than the originally budgeted amount, available grant funds (including an additional CDBG allocation) and local bond funds allow the city to proceed without adding immediate general-fund spending.
Staff briefed council on reasons bids came in higher than anticipated, citing global market pressures that affect diesel and pipe pricing and typical supply‑chain lead times for pumps and VFDs (variable-frequency drives). The engineer estimated component lead times could add 90–120 days to procurement after submittal, with construction roughly 90–120 days once materials arrive. The project addresses an operational compliance issue (the sledge-box project tied to a notice) and is a high-priority infrastructure action for the city’s water system.
Council approved the award and staff said the item will return on the next agenda with a resolution authorizing the manager to execute the contract and formalize pledges of local funding. Staff also noted the contract is scalable with alternates should budget circumstances change.
Next steps: finalize bonds, insurance and contract documents; confirm procurement lead times and a construction schedule; and return with the formal resolution for the project.
