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Board approves $640,000 bid for Dakens Lake cabin despite higher‑than‑expected cost; conservation board to use reserve and trust funds
Summary
After a lengthy discussion about the low bid of $640,000 versus an engineer estimate of $468,000, the Board approved resolution 2690 to award the Dakens Lake cabin contract, using $178,000 from the Water and Land Legacy bond and the balance from the conservation reserve and trust funds; the conservation board recommended approval and supervisors noted long payoff and reserve drawdown concerns.
Conservation staff and the conservation board recommended—and the Story County Board of Supervisors approved—awarding the Dakens Lake cabin project to the low responsive bidder (HPC) at $640,000, a figure substantially higher than the engineer’s cost opinion of $468,000.
Mike and Park Superintendent Ryan Weimo explained the price gap at a May 12 meeting. Staff said required infrastructure—most importantly a by‑code fire sprinkler system that drove utility and civil work, wastewater and electrical upgrades—added significant cost to the contract and that the bid was sized to include utility infrastructure to support two additional cabins if future boards choose to build them. "The low responsive, responsible bidder was HPC with a bid of 640,000," Mike said, and noted the engineer’s estimate had been $468,000.
Funding proposed for the award included $178,000 from the Story County Water and Land Legacy bond, trust‑fund donations designated for conservation, and a draw from the conservation reserve (generated by campground revenues). Staff said the reserve typically regenerates about $200,000 annually and the conservation board voted unanimously to recommend approval and fund the difference from the reserve. The conservation board also emphasized that ongoing maintenance and operations for the cabin will be paid from the enterprise‑style reserve rather than the general fund.
Several supervisors expressed reservations about using a large portion of the reserve for a single cabin, noting the project’s long return‑on‑investment horizon—staff estimated about 22 years—and competing future needs (Army Corps land stewardship, other bond work). After discussion, Supervisor Edens moved adoption of Resolution 2690; the motion carried with supervisors voting in the affirmative.
The board’s approval authorizes awarding the contract and moving forward with construction; staff said the bid is valid through May 21 and the conservation board will monitor reserve balances and future capital planning.
