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Fergus Falls council approves contracts for three downtown street projects
Summary
The council awarded construction contracts for Cavour (PI 5966), Cleveland (PI 5964) and Douglas (PI 5967) Avenue improvements after staff reported bids well under engineer estimates; the Douglas vote recorded one no. Notices and assessment hearings were scheduled for early May.
The Fergus Falls City Council on April 6 approved contracts to rebuild three downtown streets after staff reported low bids that came in well under engineer estimates.
City engineer staff presented results for three projects. Keekley Underground Inc. submitted the low bid for the Cavour Avenue and alleyways project (PI 5966) at about $2,426,471, well below the city engineer’s estimate of roughly $3.1 million; Keekley was also the low bidder on the Cleveland Avenue project (PI 5964) at about $1,910,542 against an estimate near $2.2 million. Ryan Contracting won the low bid on Douglas Avenue (PI 5967) at just over $1.4 million (engineer estimate about $1.6 million). City staff said favorable bids will reduce the preliminary special-assessment amounts property owners received in February and that formal assessment notices will go out before the hearing.
“Bids came in very well,” City project staff Kyle said while reviewing the alternate parking-lot and drain-tile work on Cavour. He said the drain tile is designed to intercept groundwater protecting business basements but may not eliminate every basement flooding issue.
Council discussion focused on construction sequencing and downtown access. Staff said the contractor will sequence work to keep streets open to traffic wherever possible, use alleyways for access, and restore traffic after each work area is completed; construction surfaces may be dirt or gravel before final paving. For Douglas Avenue, staff said sequencing is intended to avoid using Douglas as a construction route when Union Avenue is rebuilt.
A council member who opposed approving the Douglas contract said the city is taking on too much debt in a single year and urged a review of current debt service and taxpayer impacts before approving additional projects. The council approved the Douglas award with one recorded no vote.
Council acted to set public hearings on May 4, 2026 at 5:30 p.m. in the council chambers for assessments on the Cavour, Cleveland and Douglas projects; staff said letters and legal notices will give updated assessment totals based on the low bids.
The awards include standard contract provisions, including liquidated damages per day for late completion. The council approved the award resolutions by roll call and directed staff to proceed with final assessment hearing notices.
Funding and assessment details will be finalized at the May 4 assessment hearings.
