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Commission accepts low bid for First Avenue East reconstruction despite higher costs and grant shortfall
Summary
The commission accepted Sellin Brothers' low bid of $3,506,778 for First Avenue East reconstruction despite bids coming in roughly 16–39% above earlier estimates and a likely cut to expected state water‑main grants.
The West Fargo City Commission accepted a low bid of $3,506,778 from Sellin Brothers for the First Avenue East reconstruction project, a corridor project that will replace aging water and street infrastructure and decommission a temporary sanitary lift station.
Dan Hansen, senior director of community and development, told commissioners the low bid exceeded the pre‑bid engineer estimate (about $3,050,000) and was roughly 39.5% higher than an earlier engineers report produced in September. Bids opened March 26 produced two offers: $3,506,778 and $3,878,325.
Hansen said the state DWR water‑main grant that staff had hoped would offset nearly $1 million of costs instead appears to have been cut, and the project is now likely to receive only $46,066 beyond earlier preliminary funds. That shortfall will increase the amount assessed within the improvement district. Hansen’s calculation showed that, under the current assessment share (30% assessed to property owners for a local reconstruction), a standard single‑family home’s assessment would increase by roughly $3,750 — about $192 per year over 25 years at the assumed interest rate used in the packet.
Commissioners discussed options presented by staff: (1) award tonight and proceed with contracting and preconstruction to preserve contractor schedules; (2) table the award for two weeks to see the state grant decision; or (3) reject bids and rebid in the fall with the risk of higher inflation and changed market conditions. Hansen said the contractor indicated possible post‑award change orders and schedule flexibility could reduce the cost by roughly $250,000, but that these were not guaranteed savings.
After discussion, commissioners voted to accept the low bid and award the contract to Sellin Brothers. Hansen said staff will continue to pursue any available grant funds and, if additional funding arrives, it will be applied to reduce project costs and assessments.
What happens next: with award accepted, staff will finalize contract documents, schedule a neighborhood meeting to discuss schedules and interim completion dates with affected residents and stakeholders, and proceed to preconstruction and material ordering.
